PUBLIC RELATIONS – A 2ND GENERATION PERSPECTIVE

Michael Cherenson, APRChair-Elect Public Relations Society of America

Michael Cherenson, APRChair-Elect Public Relations Society of America

First chair to be a second generation PR counselor and have a life-long association with the profession.

First chair to be a second generation PR counselor and have a life-long association with the profession.

New York TimesAugust 9, 1929

1929

1947Where is the Party?1st Public Relations Program

1947Where is the Party?1st Public Relations Program

Almost at the same time….

Nat'l Association of Publicity Directors (East Coast) and American Council of Public Relations (West Coast) met on August 7, 1947 to discuss a merger; corporate charter was granted in the state of New York for the Public Relations Society of America in 1948.

Almost at the same time….

Nat'l Association of Publicity Directors (East Coast) and American Council of Public Relations (West Coast) met on August 7, 1947 to discuss a merger; corporate charter was granted in the state of New York for the Public Relations Society of America in 1948.

1947

1st US Law School – 1780’s American Bar -- 18781st US Law School – 1780’s American Bar -- 1878

“I don’t know anything about public relations.”

“Nonsense. You’ve got a freshly pressed suit and I presume you bathe daily.

That’s all you need!”

“I don’t know anything about public relations.”

“Nonsense. You’ve got a freshly pressed suit and I presume you bathe daily.

That’s all you need!”

1956

April 4, 1968 – First PRSSA Chapters

1st PRSSA chapters.

9 schools.

2 PR courses (minimum).

196 PRSSA members.

1st PRSSA chapters.

9 schools.

2 PR courses (minimum).

196 PRSSA members.University of Florida University of Houston University of Maryland Ohio State University San Jose State College University of Southern California University of Texas at Austin Utica College West

Virginia University.

1968

At first, it was:

“Here’s the message, go deliver it.”

Then it became:

“What should the message be?”

Today, more and more, it’s:

“What should we do?

At first, it was:

“Here’s the message, go deliver it.”

Then it became:

“What should the message be?”

Today, more and more, it’s:

“What should we do?

PUBLIC RELATIONS EVOLUTION

Harold Burson

Professionalism•Code of ethics, accreditation, certificationCode of ethics, accreditation, certification

Public Relations BusinessUS Public Relations market = $4 billion (Veronis Suhler & Stevenson) US Public Relations market = $4 billion (Veronis Suhler & Stevenson)

“Value” of public relations

Leaders now recognize the importance of PRLeaders now recognize the importance of PR

Globalization of PRGlobal public relations market = $6.5 billion, up 9% from 2005 (VS&S) Global public relations market = $6.5 billion, up 9% from 2005 (VS&S)

Public Relations Education270 US Colleges offer PR curriculum; more than 285 PRSSA Chapters270 US Colleges offer PR curriculum; more than 285 PRSSA Chapters

Professionalism•Code of ethics, accreditation, certificationCode of ethics, accreditation, certification

Public Relations BusinessUS Public Relations market = $4 billion (Veronis Suhler & Stevenson) US Public Relations market = $4 billion (Veronis Suhler & Stevenson)

“Value” of public relations

Leaders now recognize the importance of PRLeaders now recognize the importance of PR

Globalization of PRGlobal public relations market = $6.5 billion, up 9% from 2005 (VS&S) Global public relations market = $6.5 billion, up 9% from 2005 (VS&S)

Public Relations Education270 US Colleges offer PR curriculum; more than 285 PRSSA Chapters270 US Colleges offer PR curriculum; more than 285 PRSSA Chapters

PUBLIC RELATIONS EVOLUTION

John Paluszek, APR, Fellow PRSAJohn Paluszek, APR, Fellow PRSA

FROM “NICE TO HAVE” TO “MUST HAVE”…

The Council of PR FirmsAnother year of strong revenue growth.Another year of strong revenue growth.44thth consecutive of double-digit revenue growth consecutive of double-digit revenue growth Average growth among firms was 12.3%. Average growth among firms was 12.3%. 2008 -- 84% of firms projecting top line growth with avg. rate of 10%. 2008 -- 84% of firms projecting top line growth with avg. rate of 10%. 80% of firms are hiring 80% of firms are hiring 57% of firms added staff in ‘07 57% of firms added staff in ‘07 Expect biggest gains in consumer marketing & online media Expect biggest gains in consumer marketing & online media In Q1 2008, firms averaged 7.5% increaseIn Q1 2008, firms averaged 7.5% increase

68% of those firms expect revenues to increase.68% of those firms expect revenues to increase.

Veronis Suhler Stephenson (VSS). 11.8% growth in 2007, 9.9 % in 2008, with a compound growth of 10.3% through 2011. 11.8% growth in 2007, 9.9 % in 2008, with a compound growth of 10.3% through 2011.

The Council of PR FirmsAnother year of strong revenue growth.Another year of strong revenue growth.44thth consecutive of double-digit revenue growth consecutive of double-digit revenue growth Average growth among firms was 12.3%. Average growth among firms was 12.3%. 2008 -- 84% of firms projecting top line growth with avg. rate of 10%. 2008 -- 84% of firms projecting top line growth with avg. rate of 10%. 80% of firms are hiring 80% of firms are hiring 57% of firms added staff in ‘07 57% of firms added staff in ‘07 Expect biggest gains in consumer marketing & online media Expect biggest gains in consumer marketing & online media In Q1 2008, firms averaged 7.5% increaseIn Q1 2008, firms averaged 7.5% increase

68% of those firms expect revenues to increase.68% of those firms expect revenues to increase.

Veronis Suhler Stephenson (VSS). 11.8% growth in 2007, 9.9 % in 2008, with a compound growth of 10.3% through 2011. 11.8% growth in 2007, 9.9 % in 2008, with a compound growth of 10.3% through 2011.

While the majority of respondents were unsure how the year would ultimately unfold, these data suggests that the PR industry's overall view on the business environment is optimistic.

While the majority of respondents were unsure how the year would ultimately unfold, these data suggests that the PR industry's overall view on the business environment is optimistic.

Based on conversations you have had with clients, what is your feeling about the business environment in the second half of '08? Based on conversations you have had with clients, what is your feeling about the business environment in the second half of '08?

PR Firms Weigh in on Business Prospects for Second Half of ‘08

Council of Public Relations Firms Council of Public Relations Firms

Aug. 5, 2008 Aug. 5, 2008 CAGR is Compound Annual Growth Rate CAGR is Compound Annual Growth Rate

Public relations is on the rise. 2007 was strong year, and business continues to thrive despite a slowing global economy.

“Communications” is growing in strategic importance for all types of organizations.

Messaging about an organization can no longer be controlled exclusively from within.

Public relations is proving an effective tool and therefore taking share away from other marketing and communications disciplines.

“Communications” is growing in strategic importance for all types of organizations.

Messaging about an organization can no longer be controlled exclusively from within.

Public relations is proving an effective tool and therefore taking share away from other marketing and communications disciplines.

Recession Resistant?Greater stability, normalization, and modest growth

Profession is stronger than ever before, and perhaps more recession resistant (though not recession proof)

In 2007, budgets increased on average by 7% in all segments.

Average budget in the health care and manufacturing reported substantial increases -- but technology respondents reported a significant drop.

Not-for-profit organizations and government agencies do not expect budget increases in 2008.

Greater stability, normalization, and modest growth

Profession is stronger than ever before, and perhaps more recession resistant (though not recession proof)

In 2007, budgets increased on average by 7% in all segments.

Average budget in the health care and manufacturing reported substantial increases -- but technology respondents reported a significant drop.

Not-for-profit organizations and government agencies do not expect budget increases in 2008.

Value of PR – The C-Suite64% report to C-Suite with 23% reporting to marketing and the remainder reporting to human resources, legal, finance and strategic planning.

Among the largest public companies, 63% report to the C-Suite, but only 37% of respondents from private companies that size do.

Health Care, Manufacturing and Technology: A significant majority of all three categories report now to the C-Suite: health care (78%); manufacturing (64%); technology (57%).

A clear majority of respondents from not-for-profit organizations report to the C-Suite, as do 70% of government agency respondents.

64% report to C-Suite with 23% reporting to marketing and the remainder reporting to human resources, legal, finance and strategic planning.

Among the largest public companies, 63% report to the C-Suite, but only 37% of respondents from private companies that size do.

Health Care, Manufacturing and Technology: A significant majority of all three categories report now to the C-Suite: health care (78%); manufacturing (64%); technology (57%).

A clear majority of respondents from not-for-profit organizations report to the C-Suite, as do 70% of government agency respondents.

Greatest Business RisksSource: Economist Intelligence Unit, “Reputation Risk of Risks,” 2005

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10

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40

50

60

Reputation RiskRegulatory RiskHuman Capital RisksIT Networks RiskMarket RiskCredit RisksCountry RisksFinancing RiskTerrorismForeign Exhange RiskNatural Hazard RiskPoltical RiskCrime

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10

20

30

40

50

60

Reputation RiskRegulatory RiskHuman Capital RisksIT Networks RiskMarket RiskCredit RisksCountry RisksFinancing RiskTerrorismForeign Exhange RiskNatural Hazard RiskPoltical RiskCrime

Senior Executives

A Growing Community

PRSA

16,000

18,000

20,000

22,000

24,000

2003 2004 2005 2006 2007

PRSSA

5,000

6,000

7,000

8,000

9,000

10,000

2003 2004 2005 2006 2007

PRSA GROWTH

We’ve Come A Long Way ~ But Still Room

84% of Business Executives & Congressional Staffers and 71% of general consumers say public relations professionals raise the awareness about important issues.

84% of Business Executives & Congressional Staffers and 71% of general consumers say public relations professionals raise the awareness about important issues. 85% of consumers and 67% of

business leaders say public relations professionals sometimes take advantage of the media to present misleading information

85% of consumers and 67% of business leaders say public relations professionals sometimes take advantage of the media to present misleading information

Show me a PR person who is "accurate" and "truthful," and I'll show you a PR person who is unemployed.

Show me a PR person who is "accurate" and "truthful," and I'll show you a PR person who is unemployed.

PRSA CEO & Chair Jeffrey Julin Issues Video Response to CBS Legal Analyst

Andrew Cohen

PRSA CEO & Chair Jeffrey Julin Issues Video Response to CBS Legal Analyst

Andrew Cohen

“To be persuasive, we must be believable; to be believable we must be

credible; to be credible, we must be truthful.”

-- Edward R. Murrow

ETHICS ARE ESSENTIALETHICS ARE ESSENTIAL

Today

Growth in the technology, healthcare and corporate reputation sectors was particularly robust

The biggest opportunity for future growth is in the digital communications sector, although PR agency principals also see increased opportunities in corporate reputation management

Paul Holmes

New research from Clash-Media shows that over 50 percent of an average marketer's budget is now spent online.

New research from Clash-Media shows that over 50 percent of an average marketer's budget is now spent online.

NEW MEDIA MODEL(Relationships- Active)

TRADITIONAL MEDIA MODEL(Message Control - Passive)

Of about 112.5 million blogs on the Web, almost 5,000 are corporate, according to Technorati.

start conversations be a part of a virtual community talk directly to customers give a personal touch to a big business

start conversations be a part of a virtual community talk directly to customers give a personal touch to a big business

“Infodemic”A complex phenomenon caused by the interaction of mainstream media,

specialist media and internet sites; and “informal” media, which is to say wireless phones, text messaging, pagers, faxes and e-mail, all transmitting some

combination of fact, rumor, interpretation and propaganda.

~ David RothkopfChairman and CEO of The Rothkopf Group

A complex phenomenon caused by the interaction of mainstream media, specialist media and internet sites; and “informal” media, which is to say

wireless phones, text messaging, pagers, faxes and e-mail, all transmitting some combination of fact, rumor, interpretation and propaganda.

~ David RothkopfChairman and CEO of The Rothkopf Group

“The newest computer can merely compound, at speed, the oldest problem in

the relations between human beings, and in the end the communicator will be confronted

with the old problem, of what to say and how to say it.”

~ Edward R. Murrow

“The newest computer can merely compound, at speed, the oldest problem in

the relations between human beings, and in the end the communicator will be confronted

with the old problem, of what to say and how to say it.”

~ Edward R. Murrow

Our Future

Industrial Age.

Information Age.

Storytelling (Sharing words, images and sounds in a compelling way.)

Industrial Age.

Information Age.

Storytelling (Sharing words, images and sounds in a compelling way.)

PUBLIC RELATIONS WILL ALWAYS BE…

Antenna.

Conscience.

Voice.

Antenna.

Conscience.

Voice.

“What they know, you can learn. What you know, they can never learn.”

------

“People listen through their stomachs.”

“What they know, you can learn. What you know, they can never learn.”

------

“People listen through their stomachs.”

Your roleLead people into the future (Looking long-term).The Keeper of the DNA (authenticity).Trust Builder (and it’s twin Ethics).Foster collaboration.Share knowledge.Broker of idea.Spark action.Say no.Re-tool

Lead people into the future (Looking long-term).The Keeper of the DNA (authenticity).Trust Builder (and it’s twin Ethics).Foster collaboration.Share knowledge.Broker of idea.Spark action.Say no.Re-tool

Enter to Learn.

Knowledge is Power.

Go Forth and Serve.

BE A LEADER.BE A LEADER.

Michael Cherenson, APRChair-Elect, Public Relations Society of AmericaExecutive Vice President, Success Communications Group, Parsippany, NJ

973-597-5104mcherenson@successcomgroup.com