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November 7th, 2011 by Steve

Do budget conventions throttle PR change and success?

Do you want PR to deliver greater commercial value to your business? Have you been tapping into new media to develop more effective ways to develop brand influence? Do you sometimes look at the PR options available and wonder whether it’s all even really PR any more?

If you answered yes to any of these, you’re not alone. In fact, there was probably a unanimous yes to all three.

So does the way your marketing budget get allocated – the money you have to do this stuff – reflect this modernisation, or has it not really changed in many years? A lot of organisations, if they’re honest, probably say no to that one.

What’s my point? Well it’s that despite PR going through enormous growing pains as it both modernises services hurriedly and capitalises on modern media, the way budgets are planned and apportioned is too often a drawback. It stifles change, at a time when it should be enabling it.

I’ve been having conversations with lots of prospects recently, as tends to happen at this time of year, about budgets for the next calendar year. Of course requirements vary widely, but the common threads are that:

- There is a marketing budget, and within that there is a line item for PR which is largely intended to cover media relations and monitoring. This convention has not changed for a long, long time. This does little if anything to help the person signing the cheques to understand what the money goes on

- As PR changes and its potential expands, money ends up being ‘borrowed’ from other pots in the marketing budget. This has always happened, but now it’s rampant. Research, events, integrated projects, you name it – there are lots of line items being pillaged to support PR’s march beyond media relations (which, I’d argue, is bang on the money as PR comes full circle and is all about building successful relations with publics again). This is making a mockery of the way in which PR services have been bought for the past few decades, and highlights why a change is needed in how budgets are drawn up

- Everyone wants to do more sophisticated kinds of PR. Most want more integrated planning. All want more scientific ways of measuring the spend, where feasible. Yet ask how they can fund it and they’re tied to what amounts to a media relations line item in a budget

- Digital is both forcing this and making this worse, as some marketing budgets have digital line items that are shared across several areas of marketing but risk being rudderless, while others have digital fiefdoms that are equally unhelpful. Before long, it will all be pretty much digital so slapping it as separate line items onto an outdated budget model is folly (a wonderful word, that)

All too often, the parameters of the budget spreadsheet inhibit the development of a more successful PR programme . By that I mean more sophisticated one, where a more integrated approach to influence can be taken with a better-targeted audience and improved measurement. And it’s all because the old line item can’t cover the scope of the new approach. Sometimes because there’s not enough money to cover it, sometimes because it will cause political problems elsewhere. Tim Dyson had some good insight on how to work out what to spend on PR, but the problem is that the way in which the budget is drawn up can sandbag the intentions of the PR team.

In recent times, smart marketers have begun to realise this and are changing how they do things. Those unable to make changes that quickly are pressing on with new kinds of PR regardless, and retrofitting their budget models to it.

But it’s a pain in the arse we can all do without. It may seem like minor bureaucracy in the scheme of things, but a new broom would clear out the obstacles that exist, and show the people paying for PR that it’s not just all about getting stuff in the (conventional) media any more.

I’ll be covering this in a future blog post or two, with some ideas on how PR budgeting should be changed, and how to go about it. Do let me have any ideas or share experiences.

October 20th, 2010 by Steve

The fudge cuts PR needs to make

And so the real age of austerity dawns. Swingeing Government cutbacks, practically half a million jobs to go and the majority of Britons having to focus on tightening their belts.

Much has already been written and said about the impact of the cuts on PR. Public sector PR spending is clearly in the line of fire, but there may be broader impact beyond.

This is all pretty obvious. Moreover, this is not the first time that money spent on PR and the value that the investment delivers has been under the microscope. For a service that is constantly under pressure to prove its worth clinically and commercially, the spending review adds to the existing challenge, whereas for many sectors it creates entirely new ones.

So should PR agencies groan, tut and sit back waiting for the impact of the spending review on them to become apparent? A better way to spend a bit of time would be to look at one thing that they can cut back that will help them deal with the tough few years ahead – overservicing.

Yadda yadda, yawn yawn, heard it all before. Yes overservicing has been a factor in PR practically since the first agency invoice was sent. Yet it remains one of our worst traits, and one that has to be tackled better if we’re going to make this whole industry more professional, commercially mature and able to put pound signs into measurement models convincingly.

We’re always under pressure to prove our value, and budgets will be tighter than ever. So we need to ensure that in proving the value of every bit of money spent on PR, we can run profitable, sustainable and responsible businesses that charge fairly for what they deliver.

If we consistently give clients 50 per cent more than they’re paying for, we may be loved by them for it but in doing so we’ll devalue our value. I don’t have all the answers yet (and if I did you wouldn’t be reading about them first here) but if we’re going to crack the value/measurement challenge then we need to confine widespread overservicing to history at the same time.

If we’re going to be utterly confident about tying pounds invested directly to pounds gained, we can’t then have overservice fudging our future.

April 14th, 2010 by Steve

PR department of the future part three: are agencies even worth hiring?

I suppose the answer to this had better be yes they are worth hiring, or I’m out of a job.

My point here though is that there is a growing danger that in-house marketing teams don’t really know what they’re buying when they’re considering taking on external PR support. And the main reason for that is that PR has changed, and will continue to change, so dramatically.

That’s all because of the digitisation of media.

Yes PR is changing, but everyone is banging on about that so let’s be pragmatic and make a stand on it
As I covered in the last of these posts before I ventured south for sunburn and saddle antics, the media looks very different now to how it looked when I first joined the Beano Fan Club. It even looks very different to how it was five years ago. By the end of this year, it will have changed further.

It can be dizzying. The advent of television changed the nature of media in this country: newspapers had to compete with its relative immediacy and ability to communicate news visually compared to radio, plus its entertainment appeal and reach. The expansion of the trade and lifestyle media in the 80s and 90s drove further change as the desire for more specific (and often banal) information grew. Then along came the internet, creating scope for what would be a two-way dimension to media and content taken onto all manner of platforms.

Meaning that while conventional media is getting the body blows at the moment because of this new ‘competition’, the lust for information and sharing content has never been greater. And for organisations wanting to gain value of some kind through PR, the choices are both extensive and ever-changing.

I’m not going to delve into that further here. What I will say is that, generally speaking, the PR industry is currently far too hung up on new types of media and trying to make itself look on the ball, without having the balls to truly change itself in preparation for what the media will look like in the future.

Of course, I don’t know exactly what it will look like in the future either. But it will all just be media – conventional, social. Print, audio, visual, text, delivered wherever and whenever. Animal, vegetable, mineral. PR needs to stop glamourising digital media while it stands back on its heels worrying about media change.

Could PR (and other marketing) agencies have predicted this change better when the internet first began to gain a foothold in the mid 1990s? Possibly. We could have seen the two-way thing coming better, but couldn’t have quite foreseen the meteoric rise of YouTube back then. Not the print media’s burying of heads in the sand over payment for content.

So here we are. A right mixed bag of an industry. I think, and Speed thinks, that it will all just be media and that the PR agency of the future will need its whole team to be equally adept at all types of media. In the meantime, let’s look at the choices facing PR buyers in 2010.

A la carte, but at the risk of indigestion
This is doubtless incomplete, but here are the types of sustained external PR support on offer in the UK today:
- Classic PR agency: knows conventional media, niche expertise in one or multiple sectors, has started a digital division probably, and talks about PR and digital PR as if they are two separate disciplines
- A step up from that: as above, but talks about the domino effect of content from social to conventional to social media etc, and gets that it’s all just content, you just needed to be cleverer in deploying it
- A dithering dinosaur: classic agency with no willingness (probably at the top) to understand digital PR and would rather leave it to someone else. Ancestors probably blindly wedded to the Penny Farthing when Henry Ford was busy plotting. On borrowed time
- Pure digital agency: may talk about doing digital PR, may not even use the letters P and R, but is working with clients to create/deliver/inspire influential content across social media. So is doing PR whether it says so or not. Typically smart entrepreneurial people, shorter-term commercial ambitions, marvellous hair and look down on classic PRs (and in some cases, like the dinosaurs, that’s fair enough). However, not investing in understanding and being able to deliver across conventional media. Perfectly capable of delivering a social media campaign that makes it into The Sun, but does not really understand The Sun and so assured outcomes from the investment can be questionable
- Ad firms or other marketing agencies: have started muscling in on former PR turf. All’s fair in that respect, but generally ignorant of how to handle and measure the influence of the editorial world effectively. Could make a claim for the PR ground of the future, if only the shareholders or powers that be didn’t see it as a modernising advertising business rather than a marketing business. Saying your stuff is great and getting others to say your stuff is great will always require different approaches
- Mish-mash job: may have done social media consultancy for a car brand, also does trade print PR for niche clients, also does some international campaign management, big on digital PR obviously (because people need to say that these days) and also now has a blog. Potentially extremely painful

No one of these agencies is likely to provide a full range of effective PR services for any sizeable brand today. You could say that has long been the case, that brands have long worked with several agencies, and that’s true. But as media keeps digitising and diversifying, the danger is that any sizeable brand might need a dozen PR agencies, and an army of internal PR people to manage them. The freedom of a la carte, but too many courses and inevitable indigestion. And a bigger bill to pay.

How can PR buyers make sense of this?
Increasingly, I get calls or briefs from prospective clients not really sure what they’re looking for. That’s completely understandable, because the way the industry markets itself to them is in a real mess. The need for rapid modernisation and threats from new kinds of agencies has caused some wild claims, some strange diversions and some changes in fortunes. Couple that with the recession and media change, and the landscape looks very complex.

In many ways, the advice here to clients is unchanged. Figure out what you want to do commercially, define your brand strategy, then comes the talk about how and what PR can deliver for you. Then you can assess who you want to reach and understand what media is best, and what content you’ll need. Inevitably, not all in-house PR departments will have the ability to determine all that for themselves, or even dedicated PR experts who have that knowledge. The problem is that at the moment too many client teams are approaching different kinds of agencies and getting all kinds of different stories about what it is they actually need from PR.

In the words of my brilliant colleague at Seymourpowell, Richard Seymour, “they’re probably digging in the wrong place”.

What should PR buyers do?
It’d be presumptuous, arrogant and possibly foolish of me to tell people what they need to do. But I’m paid to consult, so let me stick my neck out and see if I can avoid mortal wounding. Here’s what I think PR buyers need to do in working out what external PR support they need at the moment:
1. Do you really know which media will be most effective for you and how you can best/most accurately measure the impact of what exposure you’ll generate across it?
2. Does/how much does your audience care about you, and why?
3. How will your PR operation (and content delivery) work overall: are you sufficiently agile to get the job done right?
4. Which types of agency should you rule out of the running because they don’t provide enough of the services you need?
5. If it can’t all be done under one roof, is the best split of responsibility by media type or audience type (and shouldn’t an agency working to reach a specific audience be able to handle all the media required to do that?!)?
6. Hand on heart, do you really have a clear view of where the media landscape is heading and, in particular, how to work with social media?
7. Equally, do you really understand how the conventional press has changed in the past few years and what its modernisation plans are?
8. If the prospective agency claims to understand how to deliver content across conventional media and now understands the digital world too, do its web site and blogs live up to that, and are its senior management all engaged with it too?
9. Once you’ve figured most of these things out, have a serious conversation, ideally with your board or senior local management, about how what PR can deliver for the business is changing and how the way the business uses PR services will need to evolve too
10. Once you’ve got the budget signed off, think hard about how you need to measure the value of PR and do not just take one agency’s word for it. This is a hot topic of debate at the moment, although some corners of the industry seem to be staying suspiciously silent on it

This honestly isn’t supposed to be a plug for Speed, but incidentally our approach in all of this is to invest in becoming the agency that cracks it all: that can work equally well across all forms of media to deliver assured and measurable value for clients. It is not just media digitisation that is forcing that evolution, it’s us being bold and not tolerating any lily-livered half-bakedness. If the PR person of the future can’t handle what the media of the future will be, they should start looking for another job.

So (phew..) agencies are worth hiring. But the right agencies and for the right reasons, and in my opinion PR buyers both need to tread carefully and take an honest look at how they’re set up to do modern PR.

Next post: a three-year plan for upgrading your PR department to meet this challenge.