image and reputation in the age of digital communication

Image & Reputation in the Age of Digital Communication

Bob Pickard - July 22nd 2010

Sweet Smell of Success (1957)

A publicist pitching a journalist

Pre-modern analogue public relations

• Based on relationships with face-to-face key• There was attention span & focused thinking • Analogue methods were used to propagate

information• Primitive technology• Deliberate and slow• Text was King• Ample time for stories• We measured media

Sigmund Freud had an American nephew

Bernays has been called the ‘Father of Modern PR’

Public relations has ‘scientific’ roots• Bernays defined a PR professional as a

“practicing social scientist” whose “competence is like that of the industrial engineer, the management engineer, or the investment counselor in their respective fields.”

• He said that to assist clients, public relations counselors use and apply their understanding of behavioral sciences such as anthropology, history, social psychology, and sociology.

Modern digital public relations• PR becoming more a science• E-relationships • Digital methods • No attention span;

distraction is a constant• People continuously online• Technology massively

propagates pictures, videos and ephemera

• ‘Content’ is King• Scant time for stories• We measure impact

Image building demands storytelling

• The story is the most important things a company needs to tell its target audiences...

so that• Those people will do and think...• ...what we want them to do or think

– know of the company– feel favourable towards its brand– recommend its products to others– invest in the stock– make positive comments online– want to work there

THE NEW PUBLIC MIND

Communication is all in the mind

• It is unconscious thoughts, feelings, and desires that drive purchasing decisions we make each and every day of our lives

• People tend to remember products when they are woven into the narrative of media content

• They tend not to remember brands that don’t play an integral role in the story because people can see them as being ‘just ads’

Stories tap into the unconscious mind

PR pros know about storytelling• PR people spend their careers trying to convince

executives that they should invest more in ‘earning’ editorial media coverage of their brands in news stories rather than ‘buying’ paid coverage through advertising.

• Because people can readily identify ads when they see them – and we tend to think that ads are supposed to be present during times and places we expect them to be – they attach less credibility to their claims.

• But if they see a product featured in a news narrative, people are less likely to be suspicious and more likely to trust brand messaging that isn’t visibly purchased.

The news is a story product• The news is a product which media companies

sell, and people have attached a value to it with paid subscriptions a tangible measure.

• News product has been produced by standards-based journalism that is supposed to be: – motivated by the pursuit of truth– resourceful in the use of research– informed by facts– governed by standards and edited with balance

• News content is still big, but journalism getting smaller.

Decline of news story quality

• The economic basis of the traditional news media business is crumbling, and so the quality of editorial product is declining fast.

• As a result of lower quality, people trust media stories less than they did before:– there are fewer good reporters around,

and not as many exacting editors– battles about editorial ethics versus just

going with what a company hands you for content are less frequent

– money is the only thing that seems to matter– now more than ever, speed trumps accuracy

Reduction of news story quantity

• Media companies have tried to make the news more entertaining and opinionated (rise of spectacle and sensation), and the result of this debasing of ‘journalism’ is a further reduction of news’ credibility.

• Therefore, there are fewer eyeballs reading a shrinking number of trusted news media stories.

• Less signal, more noise: the supply of journalism-grade news is shrinking; aggregated raw content keeps expanding.

Where PR storytelling is shrinking

• OK, so if a brand’s involvement in a story is still the best way for a product to get noticed...

• ...then what do PR people do if there are fewer trusted news sources producing a reduced number of stories that will be credible enough to have commercial impact even if we ‘earn’ coverage successfully?

• Where can PR communicate narratives if the storytelling zone is shrinking?

Where PR storytelling is growing

• Entertainment media, through embedding brand narratives into the ‘plot’

• Social media, through creating brand-centric networks and creating ‘conversations’

The new reality

• Reduced trust in institutions– Governments seen as out of touch and able to exercise less control– Decline of ‘fourth estate’ - newspaper readership

• More demanding citizens and consumers– Want to make up their own minds– Expect to have a ‘relationship’ with organisations– Believe they have a voice, and more likely to use it

• Wider range of influencers – NGOs, analysts, bloggers, etc– Spreading a wider range of news and views

Transparency

Accountability

Dialogue

Trust for those with no conflict of interest

Most trust in word-of-mouth in Asia

Chinese also trust others they DON’T know?

Source: Millward Brown ACSR,May 2009

THE NEW ART & SCIENCE OF PERSUASION

• Going back to Dale Carnegie in 1936, we know that making people feel important is the precursor to persuasion

• Once PR-driven interactions make people feel important (‘someone is listening to me’), then stories are sold as conversations

• Much of this is designed with the objective of getting people to commit themselves in writing to a brand online (i.e. publicly, in front of others)“Make the other person feel

important and do it sincerely.”

Persuasion 1.0

Persuasion 2.0 • According to Robert Cialdini’s research, we know that when people commit themselves in public to something, they have created a new ‘image template’ of themselves

• e.g. ‘as the kind of cutting-edge person who uses this cool product’ – which they will advocate to others within their personal networks of trust – Trojan Horse-like – as a credible peer

• People will do and say whatever is necessary to conform with their new public image (including aping a brand’s PR-devised story), and to evidence complete consistency with what they’ve said in ‘conversations’ online

• This is what Cialdini calls “the principle of consistency”

Less signal, more noise• News content is still big, but journalism is getting

smaller• Journalism as spectacle and entertainment

further debases media credibility• Paying bloggers is not credible – you can’t buy

trust• Opportunity for organisations to become media

owners and communicate direct with their customers & stakeholders

• Co-creation is key

Modern means to build an image

#1 – Listen & learn#2 – Be authentic & transparent#3 – Go peer-to-peer#4 – Focus on the 1%#5 – Be human#6 – Build relationships#7 – Commit for the long-term #8 – Use storytelling

Listen & learn

Go peer-to-peer

Focus on the 1%

Be human

Build relationships

Use digital storytelling

Every company a media company?

• THEN why can’t corporations fill the void themselves and communicate stories directly to the public.?

IF a declining media business can no longer generate an ample supply of compelling story content...IF, owing to its resource constraints, media is becoming an automated and uncritical B2C conveyor of pre-packaged marketing information passed to them by PR people...

MINIMISING RISK & MANAGING REPUTATION

Everything that famously goes wrong is now called a ‘PR disaster’• the BP oil spill• the Toyota recall• the Tiger Woods spectacle

Corporate Achilles’ Heels

Not-so-new

• Food safety

• Product safety

• Lay-offs/closures

• Environment

• Human rights

• Nationalism

• Terrorism

• Pandemics

New, and growing

• Customer service

• Advertising claims

• Greenwashing

• Marketing conduct

• Smart mobs

Professionalism of NGOs & activists

Speed

A crisis starts when it hits the front page?

PRotecting reputation

#1 – Corporate rhetoric must meet reality#2 – Expect the unexpected#3 – Prepare assiduously and rehearse disaster#4 – Move fast – first mover advantage#5 – Be responsive and look to listen#6 – Admit mistakes and accept responsibility#7 – Don’t get into fights where critics tend to win#8 – Don’t be heavy-handed or arrogant

Be prepared to apologize – sincerely!

Thank you!

Bob PickardPresident & CEO, Asia-PacificTel: +65 8126-2767bob.pickard@bm.comwww.bobpickard.com

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http://www.burson-marsteller.asia