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Image & Reputation in the
Age of Digital Communication
         Bob Pickard - July 22nd 2010
Sweet Smell of Success (1957)




  A publicist pitching a journalist
Pre-modern analogue public relations
•   Based on relationships with face-to-face key
•   There was attention span & focused thinking
•   Analogue methods were used to propagate information
•   Primitive technology
•   Deliberate and slow
•   Text was King
•   Ample time for stories
•   We measured media
Sigmund Freud had
an American nephew
Bernays
has been called the
‘Father of Modern PR’
Bernays defined a PR professional as a

is like that of the industrial engineer, the
management engineer, or the investment
counselor
He said that to assist clients, public relations
counselors use and apply their understanding of
behavioral sciences such as anthropology,
history, social psychology, and sociology.
Modern digital public relations
•   PR becoming more a science
•   E-relationships
•   Digital methods
•   No attention span;
    distraction is a constant
•   People continuously online
•   Technology massively
    propagates pictures, videos
    and ephemera
•
•   Scant time for stories
•   We measure impact
Image building demands storytelling

•   The story is the most important things a company needs
    to tell its target audiences...
so that
• Those people will do and think...
• ...what we want them to do or think
    – know of the company
    – feel favourable towards its brand
    – recommend its products to others
    – invest in the stock
    – make positive comments online
    – want to work there
THE NEW PUBLIC MIND
Communication is all in the mind
Stories tap into the unconscious mind
                    It is unconscious thoughts,
                    feelings, and desires that drive
                    purchasing decisions we make
                    each and every day of our lives

                    People tend to remember
                    products when they are woven
                    into the narrative of media
                    content

                    They tend not to remember
                    brands that         play an
                    integral role in the story
                    because people can see them as
PR pros know about storytelling
•   PR people spend their careers trying to convince
    executives that they should invest more in
    editorial media coverage of their brands in news stories

•   Because people can readily identify ads when they see
    them and we tend to think that ads are supposed to be
    present during times and places we expect them to be
    they attach less credibility to their claims.
•   But if they see a product featured in a news narrative,
    people are less likely to be suspicious and more likely to
                                       visibly purchased.
The news is a story product
•   The news is a product which media companies sell, and
    people have attached a value to it with paid
    subscriptions a tangible measure.
•   News product has been produced by standards-based
    journalism that is supposed to be:
    – motivated by the pursuit of truth
    – resourceful in the use of research
    – informed by facts
    – governed by standards and edited with balance
•   News content is still big, but journalism getting smaller.
Decline of news story quality
•   The economic basis of the traditional news media
    business is crumbling, and so the quality of editorial
    product is declining fast.
•   As a result of lower quality, people trust media stories
    less than they did before:
    – there are fewer good reporters around, and not as
      many exacting editors
    – battles about editorial ethics versus just going with
      what a company hands you for content are less
      frequent
    – money is the only thing that seems to matter
    – now more than ever, speed trumps accuracy
Reduction of news story quantity
• Media companies have tried to make the news
  more entertaining and opinionated (rise of
  spectacle and sensation), and the result of this


• Therefore, there are fewer eyeballs reading a
  shrinking number of trusted news media stories.
• Less signal, more noise: the supply of journalism-
  grade news is shrinking; aggregated raw content
  keeps expanding.
Where PR storytelling is shrinking
•                                    a story is still
  the best way for a product to get noticed...
• ...then what do PR people do if there are fewer
  trusted news sources producing a reduced
  number of stories that will be credible enough to
  have commercial impact
  coverage successfully?
• Where can PR communicate narratives if the
  storytelling zone is shrinking?
Where PR storytelling is growing

  Entertainment media, through
  embedding brand narratives into the

  Social media, through creating brand-
  centric networks and creating
The new reality

  Reduced trust in institutions
    Governments seen as out of touch and able to exercise less control
                           - newspaper readership


  More demanding citizens and consumers
    Want to make up their own minds
                                       organisations
    Believe they have a voice, and more likely to use it


  Wider range of influencers
    NGOs, analysts, bloggers, etc
    Spreading a wider range of news and views
Transparency
Accountability
Dialogue
Trust for those with no conflict of interest
Most trust in word-of-mouth in Asia
Source:
Millward Brown ACSR,
May 2009
THE NEW ART & SCIENCE
OF PERSUASION
Persuasion 1.0
                                  Going back to Dale Carnegie in 1936,
                                  we know that making people feel
                                  important is the precursor to
                                  persuasion

                                  Once PR-driven interactions make

                                                     then stories are sold
                                  as conversations

                                  Much of this is designed with the
                                  objective of getting people to commit
                                  themselves in writing to a brand
                                  online (i.e. publicly, in front of others)
“Make the other person feel
important and do it sincerely.”
Persuasion 2.0   According to Robert          research,
                 we know that when people commit
                 themselves in public to something, they

                 themselves
                                            -edge person
                                               which
                 they will advocate to others within their
                 personal networks of trust Trojan
                 Horse-like as a credible peer
                 People will do and say whatever is
                 necessary to conform with their new
                 public image
                 PR-devised story), and to evidence


                 This is what Cialdini
Less signal, more noise
  News content is still big, but journalism is getting
  smaller
  Journalism as spectacle and entertainment further
  debases media credibility
  Paying bloggers is not credible
  Opportunity for organisations to become media owners
  and communicate direct with their customers &
  stakeholders
  Co-creation is key
Modern means to build an image

#1   Listen & learn
#2   Be authentic & transparent
#3   Go peer-to-peer
#4   Focus on the 1%
#5   Be human
#6   Build relationships
#7   Commit for the long-term
#8   Use storytelling
Listen & learn
Go peer-to-peer
Focus on the 1%
Be human
Build relationships
Use digital storytelling
Every company a media company?
                                   IF a declining media business can
                                   no longer generate an ample
                                   supply of compelling story
                                   content...
                                   IF, owing to its resource
                                   constraints, media is becoming
                                   an automated and uncritical B2C
                                   conveyor of pre-packaged
                                   marketing information passed to
                                   them by PR people...




 and communicate stories directly to the public.?
MINIMISING RISK &
MANAGING REPUTATION
Everything that famously goes wrong

  the BP oil spill
  the Toyota recall
  the Tiger Woods spectacle
Not-so-new             New, and growing

   Food safety            Customer service

   Product safety         Advertising claims
                          Greenwashing
   Lay-offs/closures
                          Marketing conduct
   Environment
                          Smart mobs
   Human rights

   Nationalism

   Terrorism

   Pandemics
Professionalism of NGOs & activists
Speed
A crisis starts when it hits the front page?
PRotecting reputation

#1   Corporate rhetoric must meet reality
#2   Expect the unexpected
#3   Prepare assiduously and rehearse disaster
#4   Move fast first mover advantage
#5   Be responsive and look to listen
#6   Admit mistakes and accept responsibility
#7
#8                 -handed or arrogant
Be prepared to apologize sincerely!
Thank you!

 Bob Pickard                     Talk to B-M online:
 President & CEO, Asia-Pacific
 Tel: +65 8126-2767
 bob.pickard@bm.com
 http://twitter.com/bobpickard   http://www.burson-marsteller.asia

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Image & Reputation in the Age of Digital Communication

  • 1. Image & Reputation in the Age of Digital Communication Bob Pickard - July 22nd 2010
  • 2. Sweet Smell of Success (1957) A publicist pitching a journalist
  • 3. Pre-modern analogue public relations • Based on relationships with face-to-face key • There was attention span & focused thinking • Analogue methods were used to propagate information • Primitive technology • Deliberate and slow • Text was King • Ample time for stories • We measured media
  • 4. Sigmund Freud had an American nephew
  • 5. Bernays has been called the ‘Father of Modern PR’
  • 6. Bernays defined a PR professional as a is like that of the industrial engineer, the management engineer, or the investment counselor He said that to assist clients, public relations counselors use and apply their understanding of behavioral sciences such as anthropology, history, social psychology, and sociology.
  • 7. Modern digital public relations • PR becoming more a science • E-relationships • Digital methods • No attention span; distraction is a constant • People continuously online • Technology massively propagates pictures, videos and ephemera • • Scant time for stories • We measure impact
  • 8. Image building demands storytelling • The story is the most important things a company needs to tell its target audiences... so that • Those people will do and think... • ...what we want them to do or think – know of the company – feel favourable towards its brand – recommend its products to others – invest in the stock – make positive comments online – want to work there
  • 10. Communication is all in the mind
  • 11. Stories tap into the unconscious mind It is unconscious thoughts, feelings, and desires that drive purchasing decisions we make each and every day of our lives People tend to remember products when they are woven into the narrative of media content They tend not to remember brands that play an integral role in the story because people can see them as
  • 12. PR pros know about storytelling • PR people spend their careers trying to convince executives that they should invest more in editorial media coverage of their brands in news stories • Because people can readily identify ads when they see them and we tend to think that ads are supposed to be present during times and places we expect them to be they attach less credibility to their claims. • But if they see a product featured in a news narrative, people are less likely to be suspicious and more likely to visibly purchased.
  • 13. The news is a story product • The news is a product which media companies sell, and people have attached a value to it with paid subscriptions a tangible measure. • News product has been produced by standards-based journalism that is supposed to be: – motivated by the pursuit of truth – resourceful in the use of research – informed by facts – governed by standards and edited with balance • News content is still big, but journalism getting smaller.
  • 14. Decline of news story quality • The economic basis of the traditional news media business is crumbling, and so the quality of editorial product is declining fast. • As a result of lower quality, people trust media stories less than they did before: – there are fewer good reporters around, and not as many exacting editors – battles about editorial ethics versus just going with what a company hands you for content are less frequent – money is the only thing that seems to matter – now more than ever, speed trumps accuracy
  • 15. Reduction of news story quantity • Media companies have tried to make the news more entertaining and opinionated (rise of spectacle and sensation), and the result of this • Therefore, there are fewer eyeballs reading a shrinking number of trusted news media stories. • Less signal, more noise: the supply of journalism- grade news is shrinking; aggregated raw content keeps expanding.
  • 16. Where PR storytelling is shrinking • a story is still the best way for a product to get noticed... • ...then what do PR people do if there are fewer trusted news sources producing a reduced number of stories that will be credible enough to have commercial impact coverage successfully? • Where can PR communicate narratives if the storytelling zone is shrinking?
  • 17. Where PR storytelling is growing Entertainment media, through embedding brand narratives into the Social media, through creating brand- centric networks and creating
  • 18. The new reality Reduced trust in institutions Governments seen as out of touch and able to exercise less control - newspaper readership More demanding citizens and consumers Want to make up their own minds organisations Believe they have a voice, and more likely to use it Wider range of influencers NGOs, analysts, bloggers, etc Spreading a wider range of news and views
  • 22. Trust for those with no conflict of interest
  • 23. Most trust in word-of-mouth in Asia
  • 25. THE NEW ART & SCIENCE OF PERSUASION
  • 26. Persuasion 1.0 Going back to Dale Carnegie in 1936, we know that making people feel important is the precursor to persuasion Once PR-driven interactions make then stories are sold as conversations Much of this is designed with the objective of getting people to commit themselves in writing to a brand online (i.e. publicly, in front of others) “Make the other person feel important and do it sincerely.”
  • 27. Persuasion 2.0 According to Robert research, we know that when people commit themselves in public to something, they themselves -edge person which they will advocate to others within their personal networks of trust Trojan Horse-like as a credible peer People will do and say whatever is necessary to conform with their new public image PR-devised story), and to evidence This is what Cialdini
  • 28. Less signal, more noise News content is still big, but journalism is getting smaller Journalism as spectacle and entertainment further debases media credibility Paying bloggers is not credible Opportunity for organisations to become media owners and communicate direct with their customers & stakeholders Co-creation is key
  • 29. Modern means to build an image #1 Listen & learn #2 Be authentic & transparent #3 Go peer-to-peer #4 Focus on the 1% #5 Be human #6 Build relationships #7 Commit for the long-term #8 Use storytelling
  • 36. Every company a media company? IF a declining media business can no longer generate an ample supply of compelling story content... IF, owing to its resource constraints, media is becoming an automated and uncritical B2C conveyor of pre-packaged marketing information passed to them by PR people... and communicate stories directly to the public.?
  • 38. Everything that famously goes wrong the BP oil spill the Toyota recall the Tiger Woods spectacle
  • 39. Not-so-new New, and growing Food safety Customer service Product safety Advertising claims Greenwashing Lay-offs/closures Marketing conduct Environment Smart mobs Human rights Nationalism Terrorism Pandemics
  • 40. Professionalism of NGOs & activists
  • 41. Speed
  • 42. A crisis starts when it hits the front page?
  • 43. PRotecting reputation #1 Corporate rhetoric must meet reality #2 Expect the unexpected #3 Prepare assiduously and rehearse disaster #4 Move fast first mover advantage #5 Be responsive and look to listen #6 Admit mistakes and accept responsibility #7 #8 -handed or arrogant
  • 44. Be prepared to apologize sincerely!
  • 45. Thank you! Bob Pickard Talk to B-M online: President & CEO, Asia-Pacific Tel: +65 8126-2767 bob.pickard@bm.com http://twitter.com/bobpickard http://www.burson-marsteller.asia