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Public Engagement: The Evolution of Public Relations
Richard Edelman Grunig Lecture
University of Maryland October 30, 2008
2
A Play in Four Acts
Act I A Time Like No Other
Act II Tectonic Plates Shifting
Act III Introducing Public Engagement
Act IV How Public Engagement Works Thesis: The world has changed in a fundamental way,
requiring reassessment of communications strategy and programming
3
Act I – A Time Like No Other
“It's all about confidence, stupid. Every financial system depends on trust. People have to believe that the institutions they deal with will perform as expected. We are in a full-blown crisis because investors and financial managers have lost that trust.”
Robert J. Samuelson, Newsweek
4
The Current Crisis: Failure of Policy and Communications
Shocking ineptitude in business management
Lack of government regulation
Complete breakdown of communications Private sector over-promises, under-delivers Government uses old model of media relations
How the “Bailout” package was lost…
Then found
6
Act II - Tectonic Plates Shifting
Huge global rise in government intervention
Staggering losses in personal wealth
Rich / Poor divide growing – Perception of unfairness
Culture shift to ‘what we need,’ from ‘what we want ‘
Decline in trust in established institutions and spokespeople US: only 23% and 21% of people trust information from a CEO or
government official respectively (Edelman Trust Barometer ‘08)
7
Dispersion of Authority: The New Influencer Elite position based on expertise, passion, frequency of
communication Influencers can’t be bought, and start off neutral – which is why
their potential is so great Influencers are not equal – they can be assessed, ranked and
prioritized “Someone like me” is the most trusted source (60% in US)
Samuel Wurzelbacher, aka, “Joe the Plumber”
Diabetes Blog TechCrunch
8
GE Global Research Blog
Edelman 2008 Trust Barometer
Survey
Employees are the New Credible Source Twice as Believable as CEO’s
9
World of Expression: Four Forces Driving Media
“News-Tainment” authority + entertainment in bite-sized pieces
Merging traditional with on-line operations
Vox Populi: Citizen journalists,
Social networks and SMS
New media amplification effect – YouTube
10
Mainstream and New Media Morphing
US daily newspaper circulation down 30% in last 30 years (Pew) Number of nightly news viewers in US down from 60 million to 20 million in last
decade Blogs attract 77.7 million visitors in the US (comScore) Google aggregates over 4,500 English-language news sources 13 hours of video are uploaded to YouTube every minute YouTube surpassed Yahoo and is now the second in terms of search, after Google. Power of Cellular Platform – 30% of People Magazine readers access People.com
on mobile device
Unique Visitors May '08 in M
Change May '06 - '08
CNN.com 33.1 54%
NYTimes.com 58 73%
Google News 11.4 12%
Fox.com 10.1 36%
wsj.com 24 400%
11
Social Networks Going Global
Facebook reaches 130 million global users… Overtakes MySpace
Chinese premiere Wen Jiabao ranks among Top 10 politicians on Facebook
Hugely popular photo album called "Wenchuan Earthquake,“ where he is shown with families of victims
Citizen Journalism also global: OhMyNews in Korea – 50,000 contributors
12
The Asian Communications Revolution: The Truly Mass Medium May Be SMS
China 235 million Chinese Internet Users: 75% are urban, educated; 80+% are 15
– 35 years old 60+ million active blogs; 80+ million active Bulletin Boarders
600 million mobile subscribers Q1 CY 2008, nearly 175 billion text messages 5 – 10 million new subscribers a month
Korea CyWorld, the social network, has 47.8% of Koreans as subscribers 45% of Koreans are bloggers India More than 300 million people with mobile phones vs 120 million with TV
and 200 million read newspapers
13
mybarackobama.com
“Crowd Surfing”, by David Brain
Campaign makes citizens its partners and advocates
Obama campaign has over 5 million email addresses in database - $150 million raised on line from 3 million donors
2.2 million people on Facebook and 800,000 people on MySpace
Mobilizing donations and volunteers through wikis, twitter, blogs, website and mobile applications
Politics: The Latest in “Crowd – Surfing”
14
“Every Company is a Media Company”, Andrew Heyward, CBS News
Companies Create Their Own Content & Applications
Design your own Coke bottle Over 90,000 global
submissions Tie-in with international
celebrities
Parenting portal owned by Johnson & Johnson
Webby award for “Best Parenting” website in 2006
15
The Changing Role of Corporations
Provide leadership on big societal problems:
Lee Scott, CEO Wal-Mart
“When I travel to Washington or London or Mexico City, and I meet with government leaders, the conversations have changed. They want to know about our leadership on sustainability and health care – or what we see in the economy, and how that is affecting our customers. And when they have suggestions for us, we are listening.”
Sales of fluorescent bulbs to date keeps 3 power plants off the grid
Wal-Mart’s $4 prescription program saved $1.1b in 20 months
Wal-Mart Blog
16
Consumer Empowerment
Brand Democracy/ Brand Personalization
Company’s New Social Role and Relevance
Corporation in Trust Flux
Brand Corporate Reputation
Rise of Mutual Social Responsibility
Mutual Social
Responsibility
Cause-Related
Marketing
Corporate Social
Responsibility
17 Source: Advertising Age
Strategy
Advertising ($11.6B in US)
PR ($3.2B in
US)
Digital ($3.4B in US) Research
($5B in US)
Management Consulting
(Est. $20B in US)
Communications
Marketplace of Today
18
Advertising PR
PR sits uniquely between Communications & Strategy Incorporates Digital, Research & Consulting
Strategy Communications
Marketplace of the Future
Advertising PR
Digital
Research
Management Consulting
19
Our Challenge/Opportunity
Challenge to Free Market Ethos
Era of Citizenship Business now accountable
for more than making money
New Technologies Democratization of media
Client Budgets
Historically went to advertising, are being invested elsewhere
End of Reagan/Thatcher era
20
Act III – Introducing Public Engagement
From Public Relations To Public Engagement
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Media online and offline Consumers
Influencers
Retailers Academics
Government
Employees
Investors
Sphere of Cross - Influence 2000-2007
Pyramid of Influence
1950 to 2000
Models of Influence
Elites
Company
Mass Audiences
Advertising
22
Public Engagement Model Sphere of Cross - Influence in World of Expression
Media online
and offline
Government
Influencers
Retailers Academics
Consumers
Employees
Investors
Bottom-Up
Top-Down
Conversation
Talk
23
Key Tenets of Public Engagement
Democratic and Decentralized
Inform the Conversation
Engage with Influencers of All Stripes
Policy and Communication
24
3 4
6
Consulting
Powerful ideas
that cross channels
5 Across: Media, Digital, Direct,
3rd Parties
Listen, continuous dialogue, Measure results
Public Engagement Process
Consulting on
Values, Strategy,
Policy
Business objectives Scope of Problem
1 2
Environment, audiences and
stakeholders DEFINE
RESEARCH
STRATEGY
IDEATE
EXECUTE
EVALUATE
25
Open Communication
Open Collaboration
Controlled Communication
Controlled Collaboration
How Public Engagement Works- Implement in All Four Spaces
Viral Video Micro-blogs Employee/CEO blog MSM interviews Influencer
Roundtable
Communication Collaboration
Open
Controlled
Podcasts Search mktg Widgets CEO Speeches
Video contests Social nets Sponsored content
with third parties Town Halls
Ideastorms Wikipedia Issue
Aggregator Pilot Programs Coalition Development
Key Judgment: Complexity of Stakeholder Environment
26
Act IV – How Public
Engagement Works
“What you’re doing speaks so loud, I can’t hear what
you’re saying”
Ralph Waldo Emerson
27
Unilever’s “Dirt is Good”: Engaging Influencers
A global campaign “Every Child Has The Right To Play” that goes beyond consumer need – taking a laundry brand into the social sphere – 96% positive media - Market share increased
Lesson: Grounded in thought leadership research, expert/academic endorsement and regional CSR activities
28
Filter for Good: Policy and Communication
Reduce bottled water waste by switching to a reusable bottle with filtered water
People to pledge their commitment to using a refillable bottle with filtered tap water endorsed by NGO‘s
Double digit sales increase during the first year saving nearly 90 million bottles from landfills in one year
Lesson: Viral Campaign
that enabled consumers to act and recruit
BRITA’S
29
Starbucks Democratic + Decentralized
Lesson: An energized customer base can get excited about products and services
30
Johnson & Johnson Family Health Initiative Reaching New Influencers
Changing stakeholders’ perception towards J&J from a mother-baby company to a healthcare company
Creating new programs to address unmet needs in China’s healthcare system
J&J is now widely recognized as a healthcare company that stands for caring (according to survey by China Brand Institute)
Lesson - Address Unmet Needs in China’s Healthcare System
JJFHI reaches millions of Chinese consumers and patients, and tens of thousands healthcare professional through its programs, as well as media and online communications
31
Launch of Masdar Inform the Conversation
Public-private partnership to make Abu Dhabi the international hub for alternative energy
Launching World Future Energy Summit in 2009
Groundbreaking of Masdar City, the world’s first carbon neutral, zero-waste, car-free city
On-line resource on alternative energy
900 Million Media Impressions
Lesson: Work with influencers, then global media, to prove validity of concept
32
Rationale for Public Engagement
“In a connected world, countries, governments and companies have character— how they do what they do, how they keep promises, how they make decisions, how things really happen inside, how they connect and collaborate, how they engender trust, how they relate to their customers, to the environment and to the communities in which they operate…we need to get back to collaborating the old-fashioned way. That is… thinking about how – not just how much.”
“Why How Matters” Thomas Friedman, New York Times October 14, 2008
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Now is Our Time – PR to Lead Business, Government need to regain trust – Can’t
buy it
Demands New Form of Expression to work in multiple stakeholder world
Inform the Conversation – Different Media Strategy
Policy and Communication
PR Public Engagement