Measuring PR

Effective public relations practitioners are able to demonstrate their achievements in a language their clients understand. There are several methods of measuring effectiveness. Similar to a trip to your favourite restaurant, the ‘menu of measurement’ is vast, and public relations practitioners must select the method of measurement most relevant to their clients’ communication objectives.

First up on the menu is Advertising Value Equivalent (AVE). This technique measures PR by the amount of media space generated. The physical size of the news piece multiplies the advertising rate card while reflecting the credibility of the particular news source. The resulting dollar value is the AVE.

While clients can appreciate the taste of AVE, it is falling out of favour. In fact, PRINZ’s Paul Dryden has said “AVE [is] flawed and damaging to public relations’ drive to professionalism and probably even unethical because it is so misleading in presenting an indicator of success to the organisation or client.”

The next choice uses goals or SMART objectives that are specific, measurable, achievable, realistic and timely. In order to measure the success of a campaign, all one needs to do is evaluate the results against the campaign’s initial goals such as the quantity and quality of the media coverage.

While SMART objectives appear simple and practical solutions, the reality is, they too fall short. The media is made of a complex range of stories. A story must be weighted depending on characteristics such as tone, key messages, accuracy, comprehension; action generated and source credibility to really measure its success.

For example, often the objective of public relations is to not generate media coverage, so if an unreliable source published the story, would it be seen as objective failure? Also, could the coverage still be counted as meeting the measured objective if it was written in a negative tone?

Next up is the chef’s special: PRINZ has developed six golden rules for media and PR measurement. These recognise that unlike AVE, the quality of information is much more valuable than its quantity. PRINZ suggest PR is to be measured by its outputs, out-takes and outcomes. In other words, menu option three is the combination of AVE, a measure of target reach or audience awareness and the actual behavioural, attitude and perceptive changes resulting from the campaign.

On top of this, PRINZ’s Catherine Arrow states that this process has become a lot more complex with the growth of social media and online tracking, opening up a whole new world for publishing and collecting PR information.

In a perfect world effective PR measurement would evaluate results by comparing pre-campaign and post-campaign research results. Realistically however many organisations simply don’t have the budget for this research and post analysis and would rather invest in more PR activity.

Overall, while PR influences many people, it takes effort and time to measure its results. Simply appearing in the news media is no longer the only way to convey an organisation’s messages to its publics. Further research is needed to measure not just the initial coverage but also the behavioural changes, relationships built and audience perception and attention.

If that is what you wish to order.

Investor Relations - Changing Landscape, Changing Expectations

New technology, consumer expectation and a changing reporting environment are changing the world of investor relations.

Recently, the obligation of a company to communicate with its shareholders was mainly seen in annual and interim reports.

With the 2007 ‘opt out’ amendments to 1993’s Financial Reporting Act, companies no longer have to send stakeholders financial reports unless they are requested.

While some companies have embraced the chance to better manage print costs, others have started to completely rewrite the manner of company-stakeholder communication.
A new trend is seeing many choosing to go above and beyond compliance to build and strengthen relationships with their investors.

In addition to financial reports, online presence opens up a whole new range of instant communication techniques that have never been used before.

Recent changes to financial reporting standards have made financial statement disclosures more complex. Many organisations are responding to this increased complexity by publishing concise annual reports containing easily understood information and a minimum of financials. This short form report is supplemented by the more detailed, traditional annual report, available on request.

Stakeholders have unlimited access to current data, downloadable financials, reports and presentations as well as a 24/7 personalised access for a range of purposes such as online voting and giving feedback.

Due to the ‘I want it now’ nature of modern society, many news reporters and investors are increasingly expecting companies to supply up to the minute, clear and timely information. Several companies now combat this by encouraging subscriptions to weekly email reports and direct RSS feeds.

A compliance-plus attitude to investor relations not only makes the company attractive to potential investors, but also reinforces relationships with existing debt and equity investors. This has caused a major divide between the companies who address old demand and the ones who run the extra mile.

Success is now found in the interlinking of necessary information with its most effective medium so that different stakeholders have easy access to any information they require.

Overall, traditional methods of investor relations have been taken over by new ideas and methods. New technological opportunities along with the instantaneous expectations of modern society are causing many developments that are strengthening relationships and frequenting company-shareholder communication.

To keep above competitors, companies must now strive to communicate with their investors in new and creative ways.
Now, to experience the full potential of investor relations!

PR and Sponsorship – finding the right fit

The practice of corporate sponsorship is becoming more like a Cinderella story than ever before.

Companies are today’s Prince Charming; increasingly struggling to find the Cinderella who perfectly fits their glass slipper.

In the past, companies would simply invest in a club, team, charity, cause or event and in return receive awareness, corporate social responsibility kudos, target audience engagement and newsworthiness.

Everything was very simple and easily defined.

Since the days of ‘old school’ communications, sponsorship is a field that has developed dramatically. Now, the consumer and technological world is more complicated and returns on investment invariably impact sponsorship decisions.

Not only is it more difficult for a brand to find its perfect fit, but also a major issue is ensuring the sponsorship is not overshadowed or surpassed by other brands and initiatives.

Looking at the FIFA World Cup, adidas reigned as partner and key sponsor of the international soccer competition investing tens of millions of dollars in sponsorship for over 30 years. However this year its competitor, Nike, incorporated successful guerrilla marketing techniques and social media initiatives gaining the attention and market share of sports fans and consumers for a fraction of the sponsorship spend by adidas.

Similarly, major competition has already arisen around sponsorship for the London 2012 Olympics.

Companies must also ensure a sponsorship is strategically focused at every level. That means it must be integrated into advertising and marketing, staff engagement and sales promotion strategies, to have any chance of gaining the return that used to be so easily given.

Leverage has also become a main factor in modern sponsorships. Some would argue leverage is even more important than the sponsorship itself, some companies spending up to 3 times the investment on letting their target publics know about the sponsorship.

Companies must also work hard to bring their sponsorships to life rather than merely funding and reaping the benefits.

More often than not, this entails telling a story that links the values and cultures of the company to the sponsored organisation. If there is no ‘story’ that lets audiences understand the link and association, often a sponsorship will not return the value invested.

Sponsorship should be a part of every communication toolkit but for it to work effectively companies need to think more carefully about how, why and who they are aligning themselves and their money with.

As they say, if the slipper fits then wear it!

JML to Support 2010-2011 Velux 5 Oceans Race

Building on its sporting PR credentials, JML Communications has been appointed as NZ PR support for the eighth edition of the Velux 5 Oceans yacht race.

The race, established in 1982, sees solo sailors circumnavigate the planet in five stages, beginning on October 17. The French city of La Rochelle, will host the start and finish, and sailors will travel to:

1. Cape Town (7,500 nautical miles)
2. Wellington (7,000 nautical miles)
3. Salvador, Brazil ( 7,400 nautical miles)
4. Charleston, USA (4,000 nautical miles)
5. La Rochelle (3,600 nautical miles)

JML will provide support for the Wellington stop over, the first time New Zealand’s capital city has hosted the race, and the third time the race has returned to New Zealand.

In early 2009, JML provided PR advice and support for America’s Cup holders Alinghi when it competed in the Louis Vuitton Pacific Cup series, and also supported Chicago’s bid for the 2016 summer Olympics when bid cities visited New Zealand.

View Admedia's Fastline Article

Journalism VS Public Relations: A war or a marriage of convenience?

There may be a war going on every day when you eat your toast and morning coffee.

As you open the pages of your newspaper and watch or listen to the news, you probably have no idea how the forces of public relations and journalism have collaborated and sometimes fought to bring you what is happening in the world.

Behind the news, who wins? Who loses? Who works hardest? You see the results every morning without noticing it.

So where does it all begin?

As early as 1926, the New York Times, found that on average, about 60% of all articles were from news releases.

A more recent example and closer to home, on May 10 the first three pages of the New Zealand Herald contained five PR generated stories out of eight.

From then, changes such as the development of technology and the internet have continued to increase the demand for the immediacy of news. With online newspapers, journalists have to work harder and faster to publish news as soon as it happens. Deadline pressure, dwindling newsrooms and round the clock bulletins make up an ever-growing news hole. Not surprisingly, PR becomes the conduit and ‘quick fix’ for journalists looking for prime sources and company spokespeople. They help the media better understand the issues that a company or individuals are trying to communicate in a short amount of time.

So why then are the PR practitioners the ‘bad guys’, ‘spin doctors’ or ‘flacks’?

Helen Sissons, who wrote the book Practical Journalism: How to write News (2006), summed up this attitude when she said “Public relations companies generate news releases as propaganda, not to help the poor overworked hacks.”

Ok, but is this true? Can’t the relationship be more of a marriage than a war?

It is really more akin to a symbiotic relationship where journalists and PR practitioners work together in close harmony and depend on each other. With the development of new technology and demand for more news, journalists and PR practitioners have a massive opportunity to collaborate to get the news to audiences and make a positive difference by giving people the news content they need. So rather than a war, why not use each other’s strengths and create, like a marriage, a partnership based on working together as a team and not opposing forces.

Then everyone, and especially the public reading their news with breakfast, wins.

When saying sorry is not enough

One of the first rules of good PR is “front up” – state the facts when things go wrong and apologise, instead of hiding unfavourable information that will eventually come out (and it always comes out!). We’ve seen this principle being heeded a lot recently, with several high profile figures saying sorry to an audience of national and international media scrums, some even shedding a few tears. But are these apologies genuine, or just strategies, excellently worded by the well paid PR staff standing in the background? And even if what is said is coming from the heart, is it enough or are actions needed to validate the words? We can find these answers in evaluating recent apologies.

The Telecom dramas continue as the communications giant battles ongoing XT network and other problems. Telecom has issued several apologies backed by compensation payouts, but there is still a call for greater visibility - we've seen Paul Reynolds but when is the board going to front up? So far Telecom has borne the blame, but recent media attention on Alcatel-Lucent’s involvement provides an opportunity for Telecom to share the load. Whether Telecom's reputation will survive the crisis is something that only time will tell.

Another ongoing case is Tiger Woods’ scandalous love life. The long-awaited sorry finally came and seemed genuine (although no questions please) in a exclusive press conference set to end the spotlight on the darker side of golf’s golden boy – until he finishes sex addiction rehab anyway. But no, there was more to come. An apology and sex addiction admission was appropriate, given the circumstances, and a stint in rehab demonstrated sincerity. However when one week later Tiger admitted to drug addiction allegations, the episode no longer seemed sincere. Maybe Tiger just likes rehab, but this latest confession has us wondering what's next in the pipeline for Mr Woods.

The tearful apology is always a good way to show sincerity, as displayed by two key figures lately. Firstly, Mr Toyoda of Toyota Motor Corp, who cried in front of international media, although the tears were more in gratitude for the loyalty of his staff than for the lives allegedly taken by Toyota's faults. Still, the apology that followed was heartfelt and most importantly, was supported by plans for change. Like Telecom, this is an apology to be judged by the ongoing actions of the organisation.

The second set of tears was in relation to the tragic death of Georgian Olympian Nodar Kumaritashvili. International Luge Federation Secretary General Svein Romstad’s speech was touching and about as appropriate as an internationally mediated statement responding to an unexpected and unnecessary death can be. But the issue lies more in the release of the accident footage. Fronting up is always a good thing, but can it be taken too far? Maybe the Olympic broadcasting service felt a responsibility to show the moment when the fastest ever luge track went horribly wrong, but the international outcry at the screening of the death proved that respect for the individual comes before public viewing rights in such a case. The video was pulled from CTV and most international broadcasters and copyright laws ensured its immediate removal from You Tube.

While an apology is never judged to be perfect, it is clear that when it comes to PR, honesty is definitely the best policy. What’s done to put things right in the aftermath of the crisis is what really counts.

How to Communicate Climate Change

After all the hype surrounding the Copenhagen climate convention and John Key's last-minute attendance, little has happened to affect the public or show any definite signs of change. So what then was the point of this meeting and what has it achieved? The convention resulted in the Copenhagen Accord (http://unfccc.int/resource/docs/2009/cop15/eng/l07.pdf).

Fifty-five countries, making up 80% of the world's greenhouse gas emissions, have pledged goals for their efforts in the matter.
The Accord outlines goals as part of the aim to stabilise greenhouse gas concentration in the atmosphere - a seemingly worthwhile cause given this has been identified as one of the obvious outcomes of pollution and causes for Climate Change. But is this cause for celebration?

Maybe not, as the Accord is not a legally binding document - rather it is "politically-binding". The strength, or weakness, of this term was summed up by noted PR practitioner, blogger and climate change expert, Kevin Grandia: "With all the long hours I've been putting into to covering these climate talks, I'm sure my wife is wishing our marriage was a politically binding agreement, as opposed to a legal one". Nevertheless some world leaders are speaking out in support of the Accord. On February 1, 2010, the NZ Minister of Climate Change Nick Smith called the Accord a "constructive step forward" which closely echoed a similarly supportive statement from Gordon Brown at 10 Downing Street.

So it seems for the moment that Copenhagen stands only as a symbol of a political agreement with little influence or action to motivate those that really matter - the mass of world public opinion. What then can PR do to communicate more clearly the reasons for understanding or supporting the convention?

This is difficult because Climate Change is inextricably based on scientific reasoning and like all good science there are reports on both sides of the debate. This debate hasn't been helped by a recent article suggesting that ExxonMobil has been funding anti-climate change think-tanks - http://www.nzherald.co.nz/world/news/article.cfm?c_id=2&objectid=10624726. In addition the public has also been scared by the prospect raised by critics, of the cost to consumers if governments enact climate change legisation such as the NZ Government's Emission Trading Scheme (ETS).

No wonder climate change remains controversial and the general doubt or disinterest will remain as long as there is a plethora of divided opinion. This is where the UN, in conjunction with world governments and the private sector, needs to take a much more definitive and concerted role in consistently communicating the positive effects of tackling climate change in ways that do not confuse or shock the public, but rather inform and encourage. PR plays a vital role in issuing the call to action on a global, national, regional and individual level.

It will not be science alone that will convince the public to support the Accord and initiatives such as the ETS - it is the job of professional communicators to inspire change through making scientific data more accessible and showing how many companies and people are already making practical changes, from using sustainable energy such as biofuels, to recyclable packaging, to public transport.

PR practitioners need not to convince their audience just of the strength of the Accord or even the validity of climate change; rather they only need to communicate the desire for change through real examples.

Crisis Communications

Gone are the days when companies could respond to a crisis situation in time for television or newspaper deadlines. The rise of social media has seen several new channels added to stakeholder communications and they have already been tested by major NZ companies this year. One example is Vector’s response to customer’s affected by Transpower’s system fault which led to a blackout in much of Auckland. Vector’s website received thousands of hits in the first few hours of the outage, proving the popularity of online channels for fast information. But the event that stands out as 2010’s first catastrophic crisis, and most media-covered response, is without a doubt Telecom’s XT network crash which left thousands unable to use their mobile phones, even to call emergency services. Issues like these call for fast and effective communication to respond to the questions and demands of customers, shareholders, journalists and bloggers.

Given the speed of the internet in broadcasting news, and the immediate spread of this news across social networking sites like Twitter and Facebook, companies need to communicate instantaneously across several mediums. Traditional channels are still vital to provide further information but it is online media that is key for breaking news. While it is important for companies to communicate using TV and radio it is equally as important to “tweet” the information for the online audience, post online real-time updates on the corporate website and speak to online fan and consumer groups. This platform has increased the pressure and demand for a quick company response but is also incredibly valuable for agency or in-house practitioners dealing with a crisis. The capabilities of Twitter were displayed in Telecom’s use of the channel throughout its XT crisis, responding immediately to the initial crash as well as posting updates and apologies from the CEO. Online media allow organisations to target specific audiences and broadcasts facts during the time when rumours are only starting to emerge – dealing with the original crisis immediately as opposed to its amplified version on the six o’clock news.

The ability of the online audience to gain huge amounts of information at the click of a button means companies need to supply insightful information instead of a statement which skilfully avoids the facts using colourful jargon. Organisations are no longer able to use a “one size fits all” crisis management strategy, instead responding with a unique approach to each issue. Considering all this, practitioners need to be able to offer insight into the customer’s field as well as an understanding of both traditional and new media to respond effectively in crisis. The way a company responds to a crisis either credits or further damages its reputation – the loss of which could cost more than any compensation payout.

Leading journalist and writer joins Auckland PR firm

AWARD WINNING JOURNALIST GERALDINE JOHNS JOINS JML COMMUNICATIONS

JML Communications is delighted to announce the appointment of Geraldine Johns as a senior consultant.

Geraldine has a wealth of journalism experience. For 10 years Geraldine worked at the New Zealand Herald as a medical and political reporter, and as chief reporter. Included in this period was a stint as a Fulbright fellow with the Baltimore Sun.

Geraldine’s appointment will add additional strengths to the team and expand the range of PR services offered to include the food and beverage sector. Geraldine has superb knowledge of New Zealand cuisine and wine as both a food editor and restaurant reviewer. Geraldine was the foundation restaurant reviewer for the New Zealand Herald’s Viva magazine. Over the years Geraldine has also looked after the food and restaurant review columns for Metro Magazine, the Sunday Star Times and Sunday Magazine, and more recently been a contributor to Bon Appetit and Cuisine Magazine, and feature writer for Heritage, Next and NZ Home magazines.

Geraldine will also provide senior communications counsel, having been a senior staff writer with the Sunday Star Times. There she covered both news and feature stories, as well as profiles, with her specialty areas being crime, politics and health. In addition, Geraldine has vast media knowledge and contacts from being a television reviewer for Nine to Noon and researcher for BBC World, Greenstone Pictures, Third Party Productions and Screentime Television. JML is delighted that Geraldine has joined us and she will be a welcome addition to the JML team and its clients.

Digital Now New Zealand (www.digitalnownz.co.nz.)

The event was an overwhelming success with 270 attendees from leading companies, such as Air New Zealand, and a range of speakers who highlighted the important ways that marketers can use digital and social networking tools in the rapidly changing media landscape.

The quality of the speakers at DNNZ was superb including Justin Baird, Google’s Innovationist, who illustrated the importance of the Engagement Framework so that people are moving from a transformational framework of creating to actually nurturing ideas.

The convergence of brand and reputation is having a big impact on trust, as consumers now have the power themselves to create, distribute, and moderate all types of content in what is now an uncontrollable marketing environment. Not surprisingly, online retailers through to hotels now let their customers review their products and services.

As an example of how quickly things have changed, in the course of a few years we have now seen the rise of blogs not only as means to communicate, but also as trusted places where people get their news and base their opinions. Social networking sites such as facebook and twitter have become the new accepted ‘norm’ for connecting with friends, as well as a way to reach audiences in a personal way.

Nearly 80% of NetGeners under 28 regularly visit blogs, the most popular way to create and share content.

Corporate blogs are increasingly a tool that is being used and can humanise and help organisations address issues and consumer questions head on (i.e. by-passing the media) – these are more interesting than corporate websites, which won’t necessarily have a human voice.

Blogs are decentralising influence as the Net Generation speaks out – sources of power are being altered and the balance of power is being shifted away from more traditional sources. Not surprisingly, friends are more important than movie reviewers.

If you would like to know how to control your brand online please contact Julien Leys at JML Communications.

Messages for marketers using digital media
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DNNZ 09 Forum

The Digital Now New Zealand (DNNZ) ‘09 forum [www.digitalnownz.co.nz] at Sky City on Tuesday September 22 will look at how the online space is being transformed by digital technology, interactive media and collaboration. The essence of building brands is now about learning to let go rather than tightly controlling marketing messages. DNNZ will examine the tools and strategies at the heart of the collaborative digital arena. Today’s marketers and PR professionals need to harness the value of well-placed connections and maximise the value from ‘stakeholder webs’ and other online communities as commerce shifts from marketplace to marketspace.

Put together by Google, JML Communications (an affiliate of Hill & Knowlton), Y&R, G2, TNS and Research International DNNZ ’09 will help marketers and anyone involved in the digital space get the latest understanding and thoughts on the rapid change occurring in the digital landscape.

Please see www.digitalnownz.co.nz for more information.