Eddie Cochran was wrong. There is a cure for the summertime blues. In the case of senior PR executives it's landing bigger budgets that can serve as launching pads for the fall
and early '05. In order to do that, however, PR pros have to know where the balls are bouncing in terms of the economy, the international scene and which industries are hot (and
not). But in a universe as fluid as ours is these days, that's not easy. So, PR NEWS asked three veteran PR executives (from both the corporate and agency sides) to provide some
insight on what lies ahead for the industry.
Ken Makovsky
President - Makovsky & Co.
212.508.9601; [email protected]
As we look to 2005, it is hard not to be reminded of something fundamental about public relations. More than any other marketing discipline, our practice must understand and
respond to larger political, social and economic trends that define our culture. This is especially relevant today, during a time of dramatic and even historic upheaval. It is
short sighted to think that our field will not be challenged and changed accordingly. The question, of course, is how?
The trends are clear to anyone with merely a passing acquaintance with our culture. As I write this, the Citicorp building across the street from our mid-town Manhattan
offices is barricaded and protected by armed police. Our city is preparing to welcome the Republican convention, which will plunge the nation into the final phases of one of the
most contentious presidential elections in recent memory. The election will highlight recurring tensions in our history: the growth of new global economic powers, the evolving
nature of our own economy and the implications of scandal and corruption in the business sphere.
What are the implications for our practice? I am extremely optimistic. History shows us that PR thrives in times of change and ferment. The reason is clear. Transitions are
always noisy and uncertain; clear communication is both more prized and more difficult. It is a climate where PR becomes an important tool for individuals and organizations to
find and define their voice. This is particularly true today, when the techniques of PR are so ubiquitous, as apt to be deployed by Greenpeace as it is by the GOP, Act-Up,
AT&T, Merck and Michael Moore.
The world we see emerging will demand a lot from the practice: cultural literacy, multi-national perspectives, breadth of intellect, critical thinking and mental agility. The
world will increase the need for greater diversity in the field. It will continue to erase harmful stereotypes of the field. And, in the end, it will make public relations even
more strategic - and exciting.
Pam Talbot
President-COO - Edelman
312.240.3000; [email protected]
Despite mixed domestic and international economic news, there are several reasons to be optimistic about the future.
Industries and practices that have been particularly tight during the last few years, including technology, IR and employee communications, are coming back. At the same time,
work in health, consumer, corporate and issues management is growing steadily; clients are increasingly turning to PR for fresh thinking and creative campaigns.
There is a growing sense that spending more than 90% of a total marketing budget on advertising is no longer the obvious--or smartest--choice for a brand. In fact, the Wall
Street Journal recently reported that American Express reduced its TV advertising expenditures to 35% of its annual marketing budget ($500 million), down from a high of 80% ten
years ago. And according to a study conducted by Deutsche Bank (published recently in Advertising Age), the rising cost of TV advertising and declining TV viewership make that
medium a bad choice for mature packaged-goods brands. It's really up to us to seize the opportunity to soak up budget from advertising's leaking bucket.
Companies are breaking down traditional barriers between communications disciplines to drive their brands forward. To grab a larger portion of the pie, PR firms must be able
to provide 360-degree thinking and lead integrated teams, rather than focus on one component of the program.
Our near and long-term growth is dependant on expanding the footprint of what we do, and how we are perceived. Our growth is being driven in part by issues that transcend
geography, industries and practices, such as obesity, intellectual property rights, fair trade and branded and digital entertainment. The emergence of such multifaceted worldwide
issues requires a combination of specialized local and global thinking.
Trust among the media, the public and industry is declining significantly. To restore credibility at various levels, PR is now helping shape communications strategy at the
highest levels of business, media and government--not simply developing and executing the communications plan.
There is going to be continued emphasis on research and demonstrating measurable ROI. We must measure more than reach, recall and frequency by quantifying the depth of
impressions we produce and the strength--and influence--of the relationships we create.
Reid Walker
VP/Communications- Honeywell
973.455.5204; [email protected]
The global nature of our business is increasing at a rapid rate. Just as no large or small business in America is immune to effects of globalization -- either directly or
indirectly -- PR professionals are increasingly faced with the fact that few issues or campaigns are "just a local story." Information crosses borders with no delay through the
Internet. It is no longer considered uncommon for PR professionals to hear from media from other countries who saw information online, and nearly in real time.
These changes demand that PR professionals broaden their view and understanding of the world and, in particular, how the media operates in different parts of the world.
How does the emergence of China as a potent economic power or the increasing stature of a politically and economically unified Europe influence the action of companies or
institutions and their PR efforts? How will news in one country play in another? How do "foreign" media operate, and what are their interests and demands compared to American
media?
Take, for example, an American company moving an operation in China to better serve end-customers in Europe. How does one position this development when such a move is seen as
positive in China, but potentially negatively in both America and Europe? Which vertical trade media are the leaders in France or Shanghai?
Clearly, we must increasingly understand which publications will have the most impact in a give region. This is not an easy task. There are now more than 1,000 accredited
journalists in Brussels, the capital of the EU -- more than in Washington, DC. In this new media marketplace, the European Voice -- not the Sunday Times, Der Spiegel or Le Monde -
- has emerged as the leading sources of news for parliament.
While the task of building understanding and competency on a global scale is daunting, the Internet and the ability to access media outlets throughout the world gives us
ample opportunity to see how stories play overseas as well as understand the government and regulatory hierarchies that influence business.