PondelWilkinson Takes Home Three Awards

Awards

 

 

 

 

 

 

 

 

PondelWilkinson received three awards last week at the Public Relations Society of America, Los Angeles Chapter’s PRISM awards.  The awards recognize outstanding programs and materials created by public relations professionals.

The firm won three awards for the following categories:  Media Relations; Editorials and Op-Ed Columns; and Annual Reports. Pictured above is George Medici and Evan Pondel.

Trump’s Effect on IR

There has been a heap of stories written about President-elect Donald J. Trump’s effect on trade relations and health care, but nary a peep about how his presidency is going to affect our world, meaning investor relations.

Granted, it would be unusual for media to report on how our country’s new chief executive officer will influence investor relations because, um, IR isn’t necessarily something bandied about in the Oval Office.

But consider this: The American people are like investors, and how you treat them in good times and bad will affect the valuation of the country. And depending on how Trump executes his policies, many publicly traded companies and their investors will have to adapt to changing market conditions.

Following is a prognosticator of sorts on how Trump will affect the world of investor relations from an industry perspective. The analysis is based on discussions with the Street and analyst notes.

  • Consumer – Investor relations executives in this sector may experience an increase in inbound calls based on exposure to manufacturing overseas, particularly in China. Trade issues may thwart valuations and likely raise a lot of questions if a company has manufacturing exposure in foreign countries.
  • Construction – Generally, investors should have optimism regarding this sector’s near-term future.  At the same time, more dollars flowing to infrastructure could prompt greater scrutiny of infrastructure companies that aren’t performing.
  • Renewables – This sector has received bipartisan support in recent years, and there is no reason to expect otherwise during the next presidential term. The biggest conundrum for IROs in this space is selling the value proposition of renewable technologies and how soon they can be realized under the incoming administration.
  • Healthcare – With a lot of questions surrounding the future of the Affordable Care Act, many investors and investor relations professionals are likely unsure of where certain business models will stand under the new administration.
  • Technology/media – Hard to say what challenges may surface in this sector. Social media companies may come under fire for alleged fake news practices, as well as influencing the presidential outcome, which could certainly keep IR pros on their toes.
  • Banking – Investors are expecting interest rates to rise, which could bode well for the bottom line in this sector. Loosening up on regulations could also help move more financial services stocks into the black. IR executives will likely have to speak to how banks will enhance their net interest margins once the new administration is in full swing.
  • Aerospace/Defense – With a lot of suppliers in foreign countries, there could be a backlash with respect to manufacturing costs. Even though a Republican administration generally bodes well for this sector, optimism may soon fade if trade relations continue to slide.

– Evan Pondel, epondel@pondel.com

Will the Real News Story Please Stand Up?

There has been a lot written today about Google’s new policy that prohibits fake news sites to use its ad software to promote stories. Facebook soon followed suit and said it would not “integrate or display ads in apps or sites containing content that is illegal, misleading or deceptive, which includes fake news.”

Fake news has been popular for some time. The Onion, for example, claims it is “the world’s leading news publication, offering highly acclaimed, universally revered coverage of breaking national, international, and local news events.  Rising from its humble beginnings as a print newspaper in 1765, The Onion now enjoys a daily readership of 4.3 trillion and has grown into the single most powerful and influential organization in human history.”  Obviously satirical.

The New Yorker’s Borowitz Report is described as “The news, reshuffled.”  With recent headlines such as “Queen Offers to Restore British Rule Over United States” and “Trump Confirms That He Just Googled Obamacare,” it’s fairly easy to determine that Borowitz is using humor to talk about current issues.

Internet site, Sports Pickle, asserts that “Now more than ever, America needs some honesty in #journalism.”  Clever article titles including “If Tim Tebow can heal the sick, why is he selfishly spending his time playing sports?” and “Derrick Rose sent to neurologist after saying Knicks are Super Bowl favorites” are meant to make people laugh.

But I digress. The recent decisions from Google and Facebook have nothing to do with shutting down satire, but everything to do with shutting down deception. Reuters noted that the measures were taken to prevent “purveyors of phony content” to make money through clicks and advertising.   While this is a good start, fake news is still appearing in search results and news feeds.  NBC News reported that according to the Pew Research Center, 62% of Americans get some news from social media.

An embellished story on Twitter about a man trying to buy a McDonald’s milkshake at 1 a.m. turned into international news according to The Guardian, which believes that the “phenomenon is largely a product of the increasing pressure in newsrooms that have had their resources slashed, then been recalibrated to care more about traffic figures.”   Given the power of social media and the ability to share news, real or fake, with millions of people in a nanosecond, how can we be sure what we’re reading is valid, allowing us to form our own opinions versus being fed them?  I’m not sure there’s a good answer, but a start is to consider the source and the content.  Snopes also does a decent job of debunking fake news.

For those of us who communicate for a living, the idea of fake news (and again not the satirical kind) is distasteful, especially given how it can move markets, destroy a company’s reputation or cause divisiveness among friends, family and colleagues.  In one such instance, a client of ours saw its stock price lose 10 percent on a fake news tweet about the company’s headquarters being raided by the FBI.

I commend Google and Facebook for taking a stand, but let’s hope that this is just the beginning.

– Laurie Berman, lberman@pondel.com

Keeping Clients Happy

We’re in a competitive business. Not only do corporate communications and investor relations professionals have to overcome the challenges associated with building awareness for our clients, whether it’s on Main Street or Wall Street, but it’s also about keeping clients happy.

It’s never about drinking the proverbial Kool Aid. That’s just bad, and advisors should never be “yes” people; and saying no to clients at times is good, but only if tangible options are presented.

Happy-face-clip-art-smiley-face-clipart-3-clipartcowWith IPOs at historic lows, and today’s dynamics in corporate spending, sustaining or adding new business becomes an even greater challenge.

At the end of the day, it’s all about adding value. Consider these simple hints:

Know thy client. It’s essential to learn everything, from the product or service they offer, to their internal structure and competitive landscape.

Stay ahead of the game. Finding the “next big thing” or even something smaller that will impact a client’s organization before they do helps position outside agencies as insiders, a mainstay for maintaining long-standing relationships.

It’s OK to say no. Clients pay for strategic counsel. It would be a disservice if, as advisors, we only followed blindly without asking the question, “What if?” Make sure the counter argument is sound and solution-based.

Think outside the box. Although cliché and maybe risky, reaching key audiences, including customers, investors, employees and others in today’s cluttered media landscape takes bold new ideas that generate traction and results.

Demonstrate value. This has been one of the most fundamental challenges for PR and IR firms. We don’t “make” anything per se, but we do offer products and services designed to build awareness and loyalty among a client’s key audiences. Educating clients on message impact beyond earned media or stock price is paramount.

We’re in a tough and difficult business. Consider the fact that being a public relations executive is one of the top stressful jobs of 2016, according to Careercast.com.

Be that as it may, we continue to do the work which at times can seem to be a thankless vocation. The new and ever-changing paradigm shift in corporate communications and investor relations only adds to the list of client challenges. Nevertheless, staying informed and thinking like an insider will ultimately help generate real results and keep clients happy.

– George Medici, gmedici@pondel.com