Archive for April, 2010

More cheque-book journalism on its way

By Francis Moran

The news last week that major international news agencies, including Reuters and Agence France-Presse, were going to boycott the news conference launching this year’s Cannes film festival in a dispute over restricted access to the festival’s fabled red carpet is an uncomfortable but not wholly unexpected consequence of both the blurring lines between the editorial and commercial departments of large media conglomerates and of the recognition that there is still a lot of money to be made from news content — at least, from certain kinds of news content.

Here’s the back story. The fabled film festival, which is the world’s largest and this year runs from May 12 to 23, signed a sponsorship deal with French broadcaster Canal Plus and with European pay-TV company Orange, a subsidiary of France Telecom. The deal, part of a growing trend by media properties to extract more than just exposure from their sponsorship of events, gives the two sponsors a level of exclusivity over video footage from the red carpet, where the world’s stars and starlets preen for the attention of paparazzi as they arrive for screenings, and from news conferences, where the stars and directors of the movies meet the world’s journalists covering the festival. The festival has said that other news organizations would have restricted access to these venues for video-shooting purposes. The world’s largest wire services, which are well paid to serve up this video to their clients around the globe, have cried foul.

I’m not sure they should be.

I realise that media outlets, especially reputable media outlets, have always maintained opaque Chinese walls between their editorial and advertising departments but many of them in this modern era have been tearing down those walls themselves. The trend is most advanced in broadcast, where, for example, hundreds of millions of dollars are paid every two years for exclusive broadcast rights to the Olympics. An unchallenged outcome of this is that while non-sponsoring broadcasting companies can certainly cover the games, they accept that they will face restrictions on camera placement and access to athletes, and quite severe limits on how much they can actually broadcast.

Not all that much different from what the Cannes festival has imposed.

I suspect the news agencies are crying foul less out of wounded journalistic ethic and more out of a hit to their bottom lines. You see, event organizers like the Olympics and, now, Cannes have figured out that the pictures media companies acquire at such events are worth a lot of money. And they want a piece of this action. I believe we will increasingly see event organizers charge the media for access to this valuable content.

In a way, this has long been established practice on election campaigns, where journalists who want to travel on the leader’s plane or bus must cough up substantial amounts of money to cover the costs. While nobody would ever suggest this is any sort of cheque-book journalism, it does lock out the less-wealthy media organisations and, thereby, make more valuable the stories and pictures that those with access publish and broadcast.

As I said, I’m not sure I object to this trend. While the purist in me is concerned about a world where media have to pay for access to events and the implications that holds for media freedom and other vaunted values, the realist (cynic?) in me is obliged to concede that most media today are indistinguishable from any other commercial enterprise, producing and packaging the product they know will sell while leaving aside the stuff they know won’t.

Why shouldn’t they have to pay for the raw material?

[tags] Cannes, Olympics, journalism, cheque-book journalism, media ethics [\tags]

The real thing

By Linda Forrest

Last night, I happened upon a special on CNBC about Coca-Cola called The Real Story Behind the Real Thing. It was a fascinating look at the soft-drink company whose grasp and usage of marketing is legendary. Legendary also is the grave misstep it made in the 1980s when it launched New Coke.

Pepsi came on the scene and was holding blind taste tests called the Pepsi Challenge. When asked, the majority of participants noted that they liked the taste of Pepsi better than Coke. This caused Coca-Cola to conduct its own tests, the results of which mirrored the Pepsi Challenge. Despite the fact that the recipe for Coke hadn’t changed considerably in the previous hundred years (the initial recipe contained cocaine, but just for the first few years on the market), the powers that be at the company panicked and ordered the recipe to change so that the flavour more closely mirrored that of Pepsi. Big mistake.

New Coke failed spectacularly and within months, the original Coke was brought back to market, branded as Coca-Cola Classic. Funnily enough, Coke gained significant market share when all was said and done, though the company’s mistake had the potential to sink the entire operation.

When one executive was asked whether it was all a stunt, whether Coke had planned it, he said that they weren’t that smart, and they weren’t that dumb.

While it all worked out in the company’s favour in the end, it could have easily gone the other way. Many lessons can be learned from this and I’m sure many an MBA student has written their thesis on the New Coke experiment.

Here, I’ll try to distill a few lessons that we as marketers can take from it:

1. Don’t panic. What Coke did was react hastily to competition that was offering a similar product at a lower price and that was using an innovative marketing message. Rather than assess its own branding and marketing issues, it immediately destroyed whatever brand loyalty existed for its products. Consumer products such as soft drinks have a more personal meaning than what the companies often give them credit for. Know your product, know your market, know your customers and act based on what’s best for those three, rather than solely based on what your competitors are doing.

2.  Be willing to admit mistakes and correct course. The fact that Coke recognized the error of its ways and quickly corrected itself saved the company and the brand. If you make a misstep, it just proves that a) you’re human and b) you’ve got work to do.

3. Competition can drive innovation. Cola is cola, when it comes down to it. Pepsi and Coke don’t actually compete so much on taste or price as they do on marketing. The curvy Coca-Cola bottle is so iconic and distinct that in 1993, when the company changed its plastic bottles to mirror the shape of its glass bottles, sales were boosted by more than 40%.

4. Be authentic. When Coke tried to be something it wasn’t, as is so often the case, it didn’t work. Know who your company is, what your brand is and stick to your knitting. Especially in challenging economic times, companies tend to deviate from their branding. So often it seems as though diversification is the solution and so often the offering becomes too watered down or too off message and fails. If you don’t know who you are and what you have to offer the market, neither will your customers or prospects.

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Return on investment served two ways

By Linda Forrest

I had a long and interesting chat with the publisher of a specialized trade publication this morning, the results of which turned my thoughts to the importance of getting a return on investment in PR. I mean this in two ways: first, getting the most value for your dollars spent with a PR practitioner or agency and second, getting the most eyeballs on your coverage.

With regards to the first, this was the particular scenario that I was discussing with the aforementioned publisher. Having pitched a series of contributed articles by email, I was calling to follow up and discuss the level of interest in my proposition. The publisher, a 30-plus-year veteran of the Canadian publishing world, talked about shrinking editorial space and how he’s unable to commit to publishing an article, however appropriate for his readership. With shrinking ad budgets, increasing competition from exclusively online publications and other factors, it’s not feasible for him to accept and commit, based on an abstract, to publishing something that would take up precious room on his pages. Rather, he’s suggested that we develop an article purely on spec, and that once submitted, he’ll review it and if he’s got the room and inclination, he’ll publish it.

This is an eminently reasonable proposition and he’s not alone in this position. However, look at it from my standpoint as a content developer for hire, and that of my client. It’s no easy feat writing a 1,000-plus-word article and the creation of said article would cost not inconsiderable time and money. Is this the best use of my limited time, given that each hour spent on the account has a dollar figure attached? Would my time be better spent creating content that I am certain will be published? This is calculus that has to be figured out on each and every opportunity that comes along: Is this the best use of my time and my client’s dollars?

Then there is the other half of the equation: the potential value of the coverage in terms of prospective customers, partners, channels and others who will see the article and pick up the phone. Trade publications can be highly focused propositions; they come as niche as you like. So, if you’re trying to reach a small specialized group and this opportunity, if it comes to fruition, will get your message out to them effectively, perhaps it’s worth your time and effort to develop a piece on spec.

Just a few weeks ago, another of my clients flat out turned down the opportunity to submit an article for an exclusively online publication. Having reviewed the circulation numbers for the print edition and the number of site visitors, it just didn’t make sense to them for me to spend my time writing an article that would be seen by limited readers, especially in an industry where hard copies get read far more frequently than virtual ones. For this client, it simply didn’t provide the return on investment that they were looking for, and that’s just fine. There are plenty of other opportunities to pursue on their behalf where the ROI is higher.

Each opportunity needs to be assessed and then harsh decisions made. There’s no right or wrong answer here; each circumstance requires each client and each PR practitioner to weigh the pros and cons of the situation and make an informed decision about how best to invest time and effort for the most return.

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Think like the fish

By Francis Moran

I can’t remember when or from whom I first heard the line, “Marketers should think like the fish, not like the fisher.” But I have always enjoyed it as a pithy summary of our marketing credo that says you must put yourself in your customers’ shoes when plotting your marketing strategy. It doesn’t matter how fancy your new spinning rod might be, or how pretty the fly is that you just put on the end of your fly rod, if the fish aren’t hungry for what you’re offering, they’re not going to bite. You need to know what the fish are looking for and then craft your marketing message accordingly.

img 01561 300x225 Think like the fishDriving along the other day, I saw the truck in this picture and I drove around a couple of city blocks so I could come back and take the picture. I tweeted this the other day but I thought I’d also share it here because it is such a simple-yet-brilliant example of this precept. Enjoy.

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The foolingest day of the year

By Linda Forrest

I’ll admit it. I fell for a couple of doozies this morning when reading my morning email.

The first one really had me. I subscribe to HARO, Help a Reporter Out, which is a free service where PR professionals are sent pitching opportunities from reporters. I scan these email reports several times daily to see if there’s anything suitable for my clients. This one caught my eye and infuriated me no end:

Summary: Why don’t PR people listen?

Name: April Phules (Business Magazine)

Category: General

Email: query-7cc@helpareporter.com

Media Outlet: Business Magazine

Deadline: 07:00 PM EST – 1 April

Query: I’m doing a story about PR people, and why they have a much lower ability to listen or follow directions than regular people. Is this something they’re born with, or something they learn once getting into PR? All answers welcome.

Okay, so the reporter’s name should have tipped me off, but I haven’t had my coffee yet so I’m a little slow.

Still fuming from reading that outrageous query, I clicked over to another newsletter from parenting site Babble, which suggested 10 ways to raise a genius. Putting little stock in such things, but curious nonetheless, I clicked through. Needless to say by the time I got to #4 I knew that something was up.

PRNewser tipped its hat to some of the best corporate April Fool’s jokes here.

Happy April Fool’s Day!

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