Saturday, September 20, 2008

Paid Placement is Called Advertising...Not PR

Public relations is a very important part of the marketing mix. A successful PR campaign provides third-party endorsement of products or services which is something no other marketing element can deliver. Many people think that once a company starts advertising, editors beat a path to your door. In some cases, that actually does happen, but it's not the norm.

Public relations is very different from advertising. One main differrence is that you can't buy media placement. The story is either newsworthy, or it's not. Paid placement is called advertising.

Both marketing elements are important, but public relations can sometimes be a slow build. Results don't happen in a few weeks or in a month, especially with the three month lead time needed for magazines print deadlines. When dealing with television, newspapers or radio, the three month lead time is not an issue, but competition is an issue.

There have been situations where we've had an instant success story. We created a museum event in Philadelphia at a small children's museum that was an incredible media success story. Every newspaper, ethnic publication and television station showed up for this event. Over the years, we've also had a number of press conferences with tons of media coverage the next day. This is expecially true if the news is sensational or the product is very popular at retail.

In one case, we generated thousands of stories for a client, but we were trying to generate an article in a major business paper. Nothing worked. The editor was interested, but he didn't understand the point we were using as the "hook" for the story. When we finally drove home the point of differrence between mass market retailers and specialty retailers, he wrote the story and it was fantastic. Our story ended up on the front page of the business section minus one column, but it took months and months of work.

Many clients don't understand the PR process. For example, when I was handling the marketing for a major children's line of licensed apparel, the client had signed the advertising contract, but not the public relations contract. He just didn't understand the entire subject and finally asked for a meeting to discuss things. Shortly into the meeting, this charming, grandfatherly gentleman looked at me with a straight face and said, "Why do I have to pay for this, doesn't it just happen?"

At first, I thought he was kidding, but then I could see that he simply didn't understand the process, or the discipline. After a rather lengthy discussion, he signed the contract. The campaign was a big success and so was the clothing line.

Some clients don't have the budget for the entire marketing mix of trade advertising, consumer advertising, sales promotion, web site development and PR. Many will start with PR and trade advertising and then increase their marketing budget over time.

How To Choose An Agency

When you are ready to consider an agency, what should you look for in a PR team? For starters, the chemistry has to be there. You also need experience and media connections. Don't hesitate to ask for client references. Once you have them, pick up the phone and make some calls.

Don't assume that the new business people will service your account. If there is one account person that you feel has the expertise you need, consider requesting that this individual be the point person on your account. The agency should be willing to agree to this request in your written contract. Beware of bait and switch, where you are courted by the new business people who will never be seen again after the contract is signed.

What You Can Expect

Some points to remember:

• Nothing kills a bad product faster than excellent PR and advertising. Customers may purchase the product once and then, that's it.

• When products are photographed, the samples must be in perfect condition. The camera picks up and magnifies very tiny flaws. Retouching is expensive, so be careful when you select product samples for photography.

• PR is not a tool used to force retail distribution. If you try it, the move will come back to haunt you. When an editor asks for information about the retail distribution of a product and/or service, the PR agency had better have answers or the ability to obtain the answers quickly. Reporters and editors always manage to call for this information when they are on deadline so everything is a rush. A response such as we're planning to open outlets soon in your area is not the correct answer.

Put yourself in the editor's place. He/she is interested in writing about your product and the readers expect to be able to find the item in local stores, on respected web sites, or in catalogs. If they can't do any of the above, the editor will not write about the product.

I have had consumers track me down because they wanted a specific product and could not find it at the retail store mentioned in the article because the item had sold out. One Christmas, I was practically running a mail order operation out of the agency because frantic consumers were calling for one specific product that did not have wide retail distribution.

• Trade books usually publish one month in advance. Consumer books publish three, yes three months in advance. If you're hoping for a December magazine story, you'd better start planning in July or August.

• If your agency is creative, it will come up with innovative "hooks" for your products or services.

• The web is very different because a good story can generate almost instant results.

PR is a wonderful marketing tool, but you must understand the basics to understand how it can work for your company.

4 comments:

Anonymous said...

Hi Diane,
I agree with you on most of your points, and very much I appreciate that you're helping people get back to basics in understanding the nature and value of PR in the marketing mix. I think it's a timely conversation to start, as there seems to be a great divide between old-school and new-school in terms of goals, tactics, and attitudes. As many marketers who didn't come from traditional PR now find themselves in PR roles, the waters are getting muddier.

However, I respectfully disagree with you on one point: paid placement. The very phrase is unfortunately misunderstood, as it represents a broad spectrum of tactics in both PR and advertising/search marketing. (I wish I had a replacement phrase for you so that you'd have a means of starting fresh.)

The nature of PR is that it's the science of influencing public opinion, right? Why has that somehow come to mean that only editorial coverage and endorsement matters in the final outcome, in influencing the public? Aren't you ultimately trying to reach readers and consumers? And given that we can now reach those people directly on the Web much more easily (there's not the constraint of limited print pages, there are more opportunities for user-generated feedback, etc.), why would you reject paid placement entirely just because it "feels like advertising"?

I would posit to you that channels are channels - they're neither good nor bad - and that the Internet gives PR a wide list of new channels to try. What's unique to PR is the nature of the message, the all important story-telling aspect that can't be replicated or replaced by advertising. If you can use paid placement channels to tell a story to more people, or in a more compelling way, then why cut off opportunities arbitrarily?

Over and over, we see Internet users interact with all kinds of information, including commercial information, and processing that information through their personal filters just like they do offline media channels. Isn't it time we started thinking thinking outside the "journalist chain" and started exploring more creative ways of direct interaction with consumers of all types, in a fashion that supports the ideals and unique messaging capabilities of PR?

Sorry for the counter-rant, but I've been working in the Internet for a really long time and I am frustrated that PR cuts themselves off from so much opportunity by limiting their experimentation with new media. Sure, they're going to make mistakes (and sometimes it's embarrassing), but how do you think their advertising counterparts got to where they are today in terms of maturity? They made lots of mistakes, many costly, but ultimately figured out how to harness the channel. Same with retail and numerous other industries. Get back on the horse, stay true to your ideals in terms of transparency and messaging, and keep experimenting!

PR is due for a major overhaul in thinking, since so many of our "best practices" today are actually derivative of and tied to old media. And since old media is evolving rapidly, shouldn't we?

Best,
Dana Todd
CMO, Newsforce

Anonymous said...

Hi Diane,

Great blog. Like Dana, I do agree with your views on most aspects of PR. The problem is, I have a feeling paid media placements may start becoming more the norm than the exception. Why?

The media has already begun what many predicted to be an inevitable change: downsizing. Large layoffs at major networks and publiciations nationwide have been happening for quite some time now, and will only continue at a steady pace. The reason for this is due to the decline in advertising. As a promotional channel, advertising has narrowed dramatically, thanks to TiVo, DVR, satellite radio, public intollerance of advertising and the most dominant factor: the Internet.

This has led many stations to begin charging PR firms for placements. We have run into it numerous times already and in due time, will no doubt run into it more consistently. It doesn't mean we should turn and run, lambasting paid placements; instead, use them as an opportunity to control the content of the placement. When you pay for a placement, you typically have more production control, which means you can count on plenty of product shots and uninterruped promotion by your spokesperson. If it's done well, it will still look like a news piece, without the feel of an Infomercial.

PR as an industry is changing and we must learn to work with these changes in order to continue providing our clients with favorable reuputation and brand building. Isn't that what PR is really about?

David Ross
Kocina Marketing Companies
www.publicity.com

CrestonMedia said...

Dear Dana:

Hi, and how are you? So amusing that I just read your post after our conversation the other day.

There is a divide between the old-school and the new-school. Point well taken about my comment.

You have a great product by the way, and I thank you for sharing your knowledge!

Best regards,
Diane

CrestonMedia said...

Dear David:

Thank you, and thanks for your input.

Since the PR playing field is changing, as you've stated, I guess we should view the change as an opportunity to control the content of the placement.

Happy Holidays!

Best regards,
Diane