Presidential Celebrity Appeal

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President Obama and George Clooney

President Barack Obama discusses the situation in Sudan with actor George Clooney during a meeting outside the Oval Office, Oct. 12, 2010. (Photo credit: wikipedia.com)

Yesterday, President Barack Obama flew to Los Angeles to attend a fundraising dinner hosted by actor George Clooney.  The $40,000-a-plate soiree is expected to bring in $15 million for the president’s reelection campaign.
 
While that’s a nice chunk of change, it really is a drop in the bucket to anyone either running for president or trying to get reelected.  The media buzz, however, can be worth a lot more–or not.
 
The Oval Office has had a long love affair with Hollywood, starting back before the famed 1938 meeting between First Lady Eleanor Roosevelt and 10-year-old actress Shirley Temple.  Celebrities and presidents always got along nicely, as long as they shared the same
politics.
 
Americans love movies and the star actors that shine in them. A litany of entertainment-based TV shows and magazines demonstrate a huge market opportunity for the celebrity segment, which means lots of potential voters like to watch or read news about their favorite actors.
 
No doubt there is a risk-reward factor by aligning with a celebrity, especially if
you’re the president.  Fortunately for Mr. Obama, George Clooney scores high in the DBI Index, a ranking that measures the ability to influence brand affinity and consumer purchase intent.  Basically this means Clooney is an admired, trusted source.
 
The reality is that an alliance with Clooney probably won’t get President Obama more votes this November.  The American public hopefully will vote on a presidential candidate’s political platform, rather than solely by the company he or she keeps, although George Clooney seems to be a pretty cool guy nonetheless.
 
What Thursday’s fundraiser will do, however, is give the president more cache and a broader reach to voters who may not necessarily tune in every Sunday morning to get the latest scoop in Washington, DC.
 
Just like in the corporate world during proxy season, in politics, votes are the highest currency, too.

 

— George Medici, gmedici@pondel.com
 
 

Video Killed the Radio Star

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How much is a YouTube view really worth if the view comes from hiring a marketing firm?  Earlier this month, the L.A. Times reported that Los Angeles City Atty. Carmen Trutanich paid for YouTube views for his campaign videos promoting his run for district attorney.
 
His videos boasted 725,000 views, with the most popular clip surpassing any campaign video from GOP presidential candidate Mitt Romney, Newt Gingrich or Rick Santorum, according to the Times.
 
Sounds like payola to me.  But I wonder if some videos need “primer” views to promote organic views. Consider the psychological effects of viewing a clip with tens of thousands of views versus a couple dozen.   The more people that view a clip the more likely other people will view the same clip.  Before you know it, the video goes “viral” and begins to prompt some sort of social movement.  And then, perhaps, a politician is elected, a brand gets sticky, or a warlord is overthrown.
 
By now, many of us have heard about the Invisible Children video that net almost 80 million views in about a week.  Are all of these views organic?  Beats me, but the video’s content is very compelling and probably could have drummed up at least a million views without any help from fluffers.

Video Views

YouTube Video Views

 
The bottom line is that the digital world values transparency, and if you are going to hire a marketing firm to bolster views, perhaps disclosing this fact in the first few seconds of the video would actually enhance the credibility of your message.  After all, it’s a lot easier to disclose upfront that you are artificially inflating video views, as opposed to suffering the consequences of someone else, i.e. the media, disclosing this fact.
 
Even better yet, how about producing video content that is actually worthy of bona fide viewership?

 

— Evan Pondel, epondel@pondel.com
 
 

Enslaved to Technology

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Is technology an addiction? Well, spend a few hours around my 17-year-old who treats her iPhone like it’s her first born and you’ll have your answer.
 
On a typical weeknight, I come home after a day connected to my computer and “Smart” phone to find the family in the following positions:
 
Wife: On computer with headset or Skype-ing with someone on the other side of the globe.
 
Son: Sitting on couch watching TV, playing games on iTouch with laptop nearby.

Photo Credit: wikipedia.com

 
Daughter: Holed up in bedroom video chatting on her MacBook Air while Tweeting at speed that crushes the sound barrier.
 
These are the reasons I could enthusiastically relate to Bill Davidow’s recent article in The Atlantic, “Technology Addiction Will Lead to Our Evolution or Enslavement.”
 
After reading Davidow’s piece, I’m not so sure that machines enslaving the human race someday is so far-fetched. I’m certain Newt “Fly Me to The Moon” Gingrich might agree.
 
Anyway, one of the most captivating points Davidow makes is that “for the past 150,000 generations, evolution has designed our minds, brains, and body to live in only one world at a time. When we attempt to live in two simultaneously – the physical and the virtual – the consequences can be very serious.”
 
Davidow highlights how technology can be a marvel (laptops in the operating room) and a menace (driving while under the influence of texting), and ponders whether or not Orwellian control over our technology use might actually be a good idea.
 
Frankly, if I had more time, I’d consider it, but I’m too busy answering my daughter’s text, while simultaneously on hold with customer service about my Android phone, Tweeting about last night’s dinner and drafting my blog item on my iPad.

 

— Ron Neal, rneal@pondel.com
 
 

In Defense of ‘Flaks’

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Mark Cuban

Mark Cuban (Photo credit: wikipedia.com)

Here’s what it said: “Never hire a PR firm.” You can certainly understand my bemusement when reading these words.Entrepreneur Magazine recently published “Mark Cuban’s 12 Rules for Startups.”  Many of the rules provide a common sense approach to starting a new business.  But the eleventh rule made me woozy.
 
Cuban qualified this rule by saying that PR folks are calling and emailing reporters and editors when, in fact, the founders of companies should be calling and emailing the same reporters and editors “who will welcome hearing from (them) instead of some PR flak.”  Gosh, that’s harsh.  I mean, calling PR folks “flaks” is the equivalent of calling a fresh piece of rye bread a “crouton.”
 
Indeed, Cuban is talking about startups and not established companies, and hiring a PR firm isn’t always a top priority when eating and keeping the lights on are hard enough.  But if you cannot afford to hire a PR firm, you should probably ask a flak friend for some pro bono advice before banishing their firms altogether.
 
Here are my top six reasons why:
 

  1. First impressions matter.  If you send a lackluster pitch or sloppily written email to any self-respecting reporter or editor, it’s going to be tough getting their attention.
     
  2. It takes a lot of time and energy to cultivate media sources, so determine whether you have extra time to contact editors and reporters with punchy and seductive things to say.
     
  3. Crafting your own messaging (basically how a company describes itself to the public) is about as simple as staring at yourself in the mirror and describing what you see.
     
  4. It’s not easy communicating a calm and cohesive message to employees, investors, customers and others who rely on your services when you find yourself in the midst of a crisis.  That’s when PR pros really come in handy.
     
  5. The number of professional reporters and editors is shrinking due to consolidation in the media industry.  That means startups and established companies alike are responsible for generating their own buzz, and at the very least, communicating with important constituencies.   That’s what PR firms do.
     
  6. And finally, always question someone who criticizes the value of a PR firm when they themselves are billionaires, not to mention shameless self-promoters.  From the Washington Post:  “He (Cuban) is on television or the radio marveling at his charmed existence … ‘When I die, I want to come back as me,’ he likes to say…”  Unfortunately, we’re not all Mark Cuban.

 

— Evan Pondel, epondel@pondel.com
 
 

The Real Deal on Public Relations

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New York Times advertising columnist Stuart Elliott may finally have given the public
relations industry some needed street cred. His November 20th bylined article, “Redefining Public Relations in the Age of Social Media,” discussed why the Public Relations Society of America has embarked on its own campaign to change the definition of “public relations.”

This blogger over the years has had several conversations with Stuart about the importance of public relations (PR) long before this recent column, prompting the need for more coverage on the industry since it has become more integral to the marketing efforts of brands and organizations.

The existing definition, “public relations helps an organization and its publics adapt mutually to each other,” has been around for nearly 30 years.  You’d be surprised at a few of the suggested changes being floated around, some worse than others.

Quite frankly, nothing has changed.  Public relations still helps organizations “talk” to their constituencies.  The only real change is the way these organizations communicate with key audiences since the rise of the Internet.  Social media is just a new vehicle or another medium, whether it’s a brand interacting with consumers, a business-to-business organization talking with customers or even a publicly traded company communicating with investors.

All this chatter about a definition change ironically is good publicity for public relations, which has gotten a bad rap now and then.  The word “spin” has a negative connation and often is incorrectly used to help explain PR, which is only a small component of the broader discipline, although there may be no denying some truth to the negative sentiment.

Explaining public relations to those that don’t really understand it always has been a challenge, whether educating a family member or even a new business prospect. It’s very complicated to say the least and probably more art than science, not to mention nerve-racking. Coincidentally, public relations continually ranks high in surveys about the most stressful careers.

One crude yet effective way to explain public relations is to compare it to advertising.  Advertising is an organization talking about itself and public relations is someone else talking about that organization.  A client once said that people will remember an article in print or online but very rarely recall the ad next to it.

Selling PR to prospective clients may be a little easier as more people engage in the discussion about a definition change. The reality however is that people are talking about PR and for the public relations industry that’s a job well done.

— George Medici, gmedici@pondel.com

Wilkinson Scholarship Winner

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Anna Gaidenko, a first year graduate student at the University of Southern California’s Annenberg School for Communication & Journalism, has been awarded the 2011-2012 annual Wilkinson Scholarship Award.

 
Gadeinko is working toward a master’s degree in strategic public relations, focusing on the global market.  She intends to bridge her interest and experience in both the international arena and communication field post-graduation.  Born in Kiev, Ukraine, Gaidenko lived in Cleveland before moving to Miami and completing a Bachelor of Arts degree in international studies and criminology at the University of Miami. Prior to applying to USC, she taught English in the Czech Republic, travelling the surrounding regions and doing freelance writing, which led her to discover public relations as a profession.
 
The Wilkinson scholarship is awarded annually in memory of Cecilia A. Wilkinson, an active USC alum and a principal of PondelWilkinson, who passed away in 2007.
 
The video above is Gaidenko’s take on how social media can enhance public relations.
 
 

Don’t Get Preoccupied

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Occupy Wall Street

Occupy Wall Street on November 2, 2011 (Photo Credit: Mario Tama, Getty Images)

The Occupy Wall Street movement is less than two months old, and yet it feels like the story has been around for decades.  I’m not convinced it’s a result of the Occupiers’ public relations prowess.  It’s probably more of a function of the archetypal roots of the story – media have been covering protests ever since the dawn of newsprint.  And think about the ingredients that comprise this protest story.  There’s emotion, civil disobedience, and plenty of cause, especially with a staggering unemployment rate and an allegedly clear and present culprit: Wall Street.
 
But the future of the Occupy movement is unknown, and even though big banks are the targets du jour, who’s next in line and what are the Occupiers’ long-term goals?  It appears the movement is in the midst of a public relations crisis, and unless the collective consciousness can think of something quickly, the cold snap of winter is going to shut this protest down.
 
War, civil rights and genocide all present perfectly valid theses for inciting protest.  There is a means to an end, and even if the end is not near, the path to salvation is clear.  But the Occupy movement has no such endpoint.  All of the ingredients are present, with the exception of a well-articulated goal.  Hey, hey, the protesters might say, the movement is evolving organically because that’s what the people want.  But when was the last time you tried to accomplish something without knowing what exactly you were trying to accomplish?
 
So here’s some public relations advice to keep the protest alive and media engaged:
 

  • Set some realistic goals that Occupiers and non-Occupiers can understand and rally around to stay motivated;
     
  • Assemble a dream team in Washington, i.e. lobbyists, politicians, union leaders, financial executives, etc … and create an action plan that everyone running in the 2012 election will have to address and promise to review if elected;
     
  • Keep the messaging consistent across the country.  Yes, there are a lot of things people are angry about, but staying focused on specific topics will ensure a more cohesive and powerful message;
     
  • Know your allies and do whatever is possible and practical to support them;
     
  • Do not generalize or stereotype when attacking a target.  Be specific.  Not everyone on Wall Street or who works for a big bank is an enemy.  The movement has already alienated itself from powerful people who can help accomplish the very change the Occupiers are (perhaps) seeking.

 

— Evan Pondel, epondel@pondel.com
 
 

Fed Eyes Social Media

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Social Media Map

Navigating Social Media (Photo Credit: Flickr, Mark Smiciklas)

The Federal Reserve Bank of New York, largest of the 12 regional Reserve Banks, has issued 44 news releases so far this year.
 
The subjects have ranged from economic updates and special studies, to the appointment of new officers and board members, to a little publicized announcement last March of a blog launch, Liberty Street Economics–serving as a platform for the Fed’s Research and Statistics Group to share personal insight on current issues, as well as engage in direct dialog with a “broad online audience.”
 
In addition to pushing information out, however, the New York Fed–also in a scantly publicized notice–now wants to know what is being said about it on social media, and they are seeking bids from monitoring companies to help them.
 
Fed officials, as recently reported by Walter Hamilton in the Los Angeles Times, want to “get a better sense of the relevant concerns and discussions that are taking place in the public domain in order to enhance and improve…the role it plays in supporting the U.S. economy.”
 
We advise our clients, almost daily, that it is critical to know what their constituents are thinking and what they are saying, if for no other reason, to react appropriately and address concerns.
 
For the Fed, certainly much of the findings will undoubtedly be negative because of the state of the economy.  But oddly, word of the Fed’s move has exploded in the political blogosphere, firestorm style, with fears of how the information will be used and talk of Big Brother.
 
My goodness! Calm down, fellow bloggers, this is no big deal. It’s just old fashioned market research being applied to a new medium.
 
Ironically, it’s amusing to note that in Hamilton’s coverage, he quoted an executive at New York-based software company ConvergeEx Group, which recently issued a press release about a new product, Spectrum, offering the “power of dark liquidity,” and “the benefits of executing in a diverse array of dark venues” and enabling users to trade cash neutral in the dark.”
 
Even the best of monitoring companies won’t likely penetrate that.

 

— Roger Pondel, rpondel@pondel.com
 
 

Ripe for Review

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Cantaloupe

Ripe for Review (Photo Credit: Flickr, )

A few weeks ago, a cantaloupe farm from Southern Colorado became the center of attention, but not the kind of attention a small organization would opt for. A listeria outbreak linked to the farm caused 72 illnesses and 13 deaths, according to the Centers for Disease Control and Prevention. This outbreak has been deemed the deadliest in the United States in more than a decade.
 
Disasters such as these serve as important reminders to make sure crisis communications plans are ready to go. Following are some ideas to keep top of mind when starting or reviewing that plan:
 

  • Create a messaging platform – A number of important points should be put together to combat any questions brought on by the media and any customers, such as addressing the issue at hand, explaining what the company is doing to settle the issue and move forward in a positive direction, etc.
     
  • Provide constant updates on new information – As more information is gathered and received, every bit should be readily available and shared with the public.  
     
  • If needed, gather third party support – If there are holes in the information for the crisis, hire additional support, such as investigators. Do everything you can to find out all of the little details so there are no missing pieces to the puzzle.
     
  • Gather support from the industry – If this is an issue comparable to the cantaloupe saga, it will affect other players in the industry. Communicate with other companies in similar spaces who can help communicate information about the issue as well.
     
  • Hire a communications firm with experience in crises – There are many firms that focus extensively on crisis management and can help companies mitigate the damaging effects of a crisis.

 

— PondelWilkinson, investor@pondel.com
 
 

Dow Sentiment

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NYSE

NYSE (Photo credit: wikipedia.com)

This past week has been quite the roller coaster for investors and public companies alike. The Dow fell 513 points on Thursday, August 4, the biggest drop since 2008.
 
Following are some quotes from a few publications to sum up this week’s sentiment among the investment community:
 

  • “The very fact that we have been engrossed in dealing with our debt ceiling issues has taken our focus away from the task at hand–growing our economy and job creation,” said Bill Nuti, chairman and CEO of NCR Corp, a maker of automated-teller machines and other products.”If the U.S. credit rating is downgraded, he warned, “our economy will transition from a slow-growth scenario to a no-growth scenario, and we could likely find ourselves in a double-dip recession.” —www.wsj.com
     

  • “You’ve got a weak economy, the aversion of a debt crisis but not a solution, and you’ve got the rest of the globe starting to implode in a lot of areas, especially Europe,” said Barry James, president and chief executive of the James Advantage Funds. “It’s natural that people would react with fear.” —www.wsj.com
     

  • “The markets were very similar from a macroeconomic standpoint as they were on May 6 of last year, and obviously things performed much better,” said Joseph Cangemi, managing director of electronic trading for Convergex Inc. “We could have had a situation at any one time where capitulation could have happened, but the market structure itself did not allow it to breach any critical levels.” —www.wsj.com
     

  • “Investors are anxious about the U.S. and global economic outlook, and the current market volatility reflects their distress,” said Larry Leibowitz, chief operating officer of NYSE Euronext. “While high volume has accompanied this volatility, we have not seen a real panic,” he added, asserting that exchanges’ performance has been “high” through a “difficult time.” —www.wsj.com
     

  • “People are worried about liquidity and where the economy is going, and don’t see any sort of life preserver as yet,” said Doug Roberts, chief investment strategist at Channel Capital Research. —www.marketwatch.com
     

  • “The ECB needs to continue to be aggressive in its efforts to solve the euro-zone debt crisis, but this will not happen overnight and as a result, will affect the U.S. economy in a negative way,” said Kevin Giddis, a fixed-income analyst at Morgan Keegan. —www.marketwatch.com
     

  • “The most important thing for people to do right now is to take a deep breath, whether you’re reacting to the latest, pretty good job numbers or you’re still in shell shock from everything else we’ve learned in the last week,” said Jerry Webman, chief economist at Oppenheimer Funds in New York. —www.yahoofinance.com
     

  • “The burden of debt has become much more onerous because the outlook for growth is sliding back. That is very concerning for the markets,” said Don Smith, economist at ICAP, the largest inter-dealer broker in the world. “The fear is ultimately about defaults and business failures.” —www.yahoofinance.com

 

— PondelWilkinson, investor@pondel.com