Posts Tagged ‘communication vehicles’

Why Vitrue’s Facebook Fan Value is Poppycock

Wednesday, April 14th, 2010

Vitrue, a social media marketing firm founded in 2006, snagged an AdWeek article this week when it announced that it had caculated the value of Facebook fans. It’s $3.60 per fan.  What’s behind the valuation? A rash of assumptions, according to a piece on the company’s Web site.

Why do I think this is wrong? Let me count the ways:

  1. Their data is proprietary. The company says it manages 45 million fans and drew the data from a sampling across industries, but they don’t specify the amount of the sample, the specific firms involved or any other information that might provide clarity as to the methodology. No one can cross-check the data.
  2. They make several assumptions: They say they looked at the ratio between wall posts and number of fans — asking how many fans have the potential to see a post. This is similar to using circulation in a print pub. Fine. But unlike circulation (audited) or even Nielsen Ratings, we’re assuming that all fans have an equal opportunity to see, and we’re assuming that a wall post is equivalent to an ad. Then, they say that multiple posts have equivalent impressions — two per day totals 60 million impressions on a one million fan page.
  3. They then say that these impressions are free, “similar to earned media.” But we know earned media is not free — someone had to do some work to make it happen. This is one of the insidious problems with ad value equivalency — there certainly are costs associated with generating earned media, and they must be accounted for.
  4. Next assumption, cost per thousand impressions. They settle on $5 CPM, based on nothing — wouldn’t this number depend on the specific outlet?  How about some science instead of conjecture? Multiply it out using their figures and it totals $300,000 in monthly value for the two post-a-day million fan page.  They show it like this:

1M impressions x 2 posts x 30 days = 60M impressions >>> 60M impressions / 1000 x $5 CPM = $300,000

But what I believe is most egregious is the idea that engagement on Facebook is really just a game of increasing advertising impressions. This is totally contrary to how social media is designed to work. It’s push-focused instead of relationship-focused. It’s shouting from the rooftops instead of talking to your neighbors.

Look, everyone has to make a living — advertisers are pretty comfortable in their “metrics every marketer is familiar with,” as Vitrue’s article says.  But marketers need to wake up — measure something meaningful!  I don’t know, but perhaps the fans are actually doing something that increases their intent to purchase? That improves their understanding of the product? That makes them have a more favorable attitude toward the company? That they bought something?

Surely any of those is a better metric than one based on made-up numbers, bad methodology, weak assumptions and false equivalencies.

Harrumph.

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Survey: Internal Comm Effectiveness ‘Important Concern,’ But…

Thursday, April 1st, 2010

Researchers Dr. Juan Meng of the University of Dayton (Ohio) and Dr. Bruce K. Berger of the University of Alabama cut to the chase in their research presentation at the Institute for PR International PR Research Conference. Their first finding? “Though communication effectiveness has been an important concern for organizational leaders, the assessment of communication effectiveness has not been widely applied by using business outcome metrics in organizations.” Sigh.

Meng and Berger used both the results from the 2007-2008 IABC Research Foundation/Watson Wyatt international survey of senior communicators, and a series of in-depth interviews with 13 IABC Gold Quill winners to look for process links between internal communication effectiveness and organizational financial performance.

For me, this represents a sort of Holy Grail: we internal comms experts know that our work is impactful, but have lacked the hard evidence of causality that we perceive the C-suite respects and demands. I was disappointed, yet again, though that first finding is by no means the only one.  In brief, the other five are:

  • Measuring internal comm effectiveness should be standard operating practice.
  • There’s lots of measurement going on, evaluating awareness/understanding; engagement; job performance; employee behavior, and improvement in overall business performance.
  • Everyone has good reasons why measurement isn’t as robust as it should be, and they’re the usual culprits — lack of time/money/staff and the pain of finding actual cause-and-effect toward business results.
  • The measurement approaches used are employee surveys, employee participation in communication activities and manager surveys.
  • Four valuable purposes for internal communication: Explaining/Promoting programs and policies; educating about culture and values; providing information about performance and financial objectives, and helping employees understand the business.

At Goodyear, we made great progress toward true outcome measurement for internal communications, but didn’t quite get there. We did establish a strong link between employee knowledge/comprehension, intranet use and managerial behavior, but never got the chance to take everything to the organizational performance level.

At National City Corporation (the regional bank), our focus from the first day I arrived was on external measurement, for a variety of reasons. But the internal side wasn’t ignored — we were a Gallup Q12 company, and despite the wretched economic conditions and horrific, calamitous financial performance of the company, we still topped 94% participation in the Q12.  Right until the last moment, we were using Q12 results in our planning process, as well as beginning to use editorial content more strategically. But, again, we weren’t reaching the business outcomes level of measurement.

Here’s a quote from one of Meng & Berger’s in-depth interviews:

I think the biggest challenge in measurement continues to be convincing clients to spend, not so much the money, but to spend the time. As the industry develops, I don’t have a hard time in convincing them about the validity of measurement, but they are reluctant to actually take the time away from business to actually administer surveys or focus groups or some other measurement tools.

Looks like we have to continue making those tools easier to use and more valuable, even as we continue to scale the mountain tops for the Holy Grail.

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Hooked on PR Research

Monday, March 22nd, 2010

One of the great professional pleasures of my life involves an academic conference filled to the brim with fascinating public relations research. It’s the International PR Research Conference put on by the Institute for Public Relations, and I’ve attended four of the past five years. That it’s held early in March in Miami, Fla., has NOTHING to do with it!

OK, well, it has a little bit to do with it.  The tropical breezes feel especially fine in the icy wake of February in Cleveland, and there is terrific food, shopping, pleasant walks and an excellent pool. But, other than that, it’s all business for three days.

I’ve had the good fortune to present at IPRRC twice; the first time, 2008, I presented a paper with my research pal Dr. Julie O’Neil of Texas Christian University that covered one large company’s internal communication program, focusing especially on the measurement of the work. It won an award, of which I am very proud indeed – the Jackson-Sharpe Award for research by an academic and a practitioner (I’m not the academic, or wasn’t…).

This year, I presented a work in progress, an exploratory study of corporate blogs and Twitter activities, with an eye on whether they’re demonstrating James Grunig’s Excellence Theory – are they conversations? – or other PR theories.

The idea is to see what actually IS in this space for 18 companies – the work is ongoing (frantically; the final paper is due May 1), and I was able to share a few key findings.

  1. There’s a lot of using social media as a broadcasting tool – no two-way, no evidence of symmetry (mutual change) – and persuasion, therefore, still rules.
  2. There are a couple of firms that are doing yeoman’s work and engaging in conversations – there are also seven or eight companies who’ve abandoned their blogs since December 2009.
  3. One industrial giant, interestingly, has subject matter experts blog and then engage engineers and customers in a discussion about improving the product – this is a rarity.
  4. Twitter as link-bait is quite in evidence.
  5. The Cluetrain may have left the station, but it’s creeping along a siding, not hurtling on a MagLev track.

This is hardly conclusive or particularly scientific – that’s why we call the paper exploratory. Dr. O’Neil and I have more work to do this coming month, but this paper is intended to be the first of three. Next step is a qualitative discussion with some of the people behind social media at our subject companies, followed (we hope) by a quantitative survey of users of corporate blogs and their associated Twitterverse (we’ll see; that’s going to take some cash…).

In the meanwhile, stay tuned over the next few days as I recount some of the work that impressed me the most at IPRRC this year.  Once our paper is done, we’ll share.

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A Manager Who Can’t Communicate Can’t Lead

Tuesday, December 15th, 2009

“As soon as you move one step up from the bottom, your effectiveness depends on your ability to reach others through the spoken and written word.” It’s been years since Peter Drucker offered that bon mot, but it certainly seems to be truth. The New York Times’ Corner Office feature, which runs Sundays on page two of the Business section, talks to business leaders of all stripe, and each of them has something to say about the importance of communication to their business style.

Dec. 6, Joseph J. Plumeri, Chairman and CEO of Willis Group Holdings (the insurance broker whose name now graces the former Sears Tower in Chicago), was Corner Office’s subject. He said:

I spend 25 percent to 30 percent of my time calling my associates — whether they had a family problem or pulled off a great deal and brought in a new client, or saved a client. Two-minute phone call, or handwritten note. I can’t begin to tell you how important that stuff is. E-mails are easy, but sometimes they get in the way of really feeling how somebody feels about your effort.

Is it time consuming? Yes. But that’s what you’ve got to do…

Plumeri goes on to say that helping people understand and believe in the choices the company makes is essential to realizing business vision.

On Dec. 13, Nancy McKinstry, CEO of Wolters Kluwer, a Netherlands-based information services company, says “Every culture is very different in how people make decisions” as she relates how her leadership style changed over time according to the communication styles of her team.

In the Netherlands, where our company is based, people really want to be heard early in the process. So if you just go to someone and say, “I want you to go take this product and enter this new market,” most likely the first response they’ll say is, “No, and let me tell you how that won’t work.” What they really want to say is, “I’m not going to commit yet to that objective until we have a chance to really sit down and explore how we’re going to do that, what your expectations are, and how we measure success.”

Then, when I work with my Italian colleagues and the Spaniard colleagues, what you find is they can’t always tell you how they’re going to get something accomplished, but they manage to get it done.

Shocking news, really, that one’s leadership team expects to have a clear strategy in place before acting, and wants the freedom to choose how to accomplish the goals they’re responsible for.

What concerns me is how few middle managers (or even executive managers) have undertaken the sort of self-examination that both McKinstry and Plumeri evidently have. In 20 years, I’ve met only a handful who embrace the power of participative communication. By the way, they’re the leaders who typically win in the marketplace.

Why don’t more organizations evaluate the communication strength of their leaders?  One reason is the perception that you can’t hold people accountable for “soft” skills. Yet, we know that there are very strong correlations between effective communication behavior and employee understanding and comprehension. So, if we want an informed, educated workforce which understands the business and their role in it, their managers will need to be the ones providing context and leadership.

Therefore, let’s evaluate communication skills among managers and come up with ways of helping those managers improve and thrive. It’s not too difficult a concept.

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Objectives most critical element in measurement

Tuesday, December 1st, 2009

One smart PR pro told me years ago that even the best road map is useless without a destination. Because so many communicators are struggling to understand the role of strategy in a world of fascinating tactics, it can seem like the universe is throwing map after map to us, shouting “you need this right now!”

When I step back from “being strategic” (quite a trick for someone once called, with some derision, “strategy boy”) it is no exaggeration to say, echoing the travel metaphor, that the best strategy is useless without an objective.

Strategic objectives need three things: 1) a benchmark. You need to look back to see where you’ve been. 2) A target. You need to look ahead and see where you’re going. 3) A time period. You need to articulate how long it’s going to take to get from where you were/are to where you want to be.  If you’re missing any of those things, chances are good that you don’t have a strategic objective.

The trick is, too often, we set objectives with no clear understanding of where we are, let alone where we were. That’s where research comes in. It’s right out of PR 101 — start with research before you launch a campaign — and we find lots of reason not to do the research. Sometimes it’s related to cost, sometimes to our own skillsets. We like to think of ourselves as creative geniuses, unencumbered by such trivialities. This attitude is especially prevalent in media relations, where our relationships and seat-of-the-pants skills can mean so much in a crisis; when things go right in our activities, that can reinforce the perception that PR is art, rather than science.

Of course, our “gut” is merely the application of our accumulation of experience, both in terms of time and in terms of education. We think we know what our employees, or our customers, for example, know/think/feel about our organization, when we could remove any uncertainty with some simple research.

But, I digress — the objective-setting process is even more important when considering social media.  Too many organizations are jumping in without a clear idea of what they want to accomplish.  More on this topic to follow.

What about your communication planning process? Does it start with objectives?

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Still stuck on AVEs

Monday, November 23rd, 2009

The continuing debate over advertising value equivalency reached the pages of the New York Times 22 Nov., with a “Soapbox” piece saying Hollywood studios are cutting ad budgets and using public relations as an alternative. One anecdote:

Disney recently went so far as to develop a computer program to help it determine how much monetary value was coming from such publicity efforts. It can quickly plug in data — “Access Hollywood” had a 30-second interview with a star of “The Middle,” a new ABC comedy — and the program spits out what that same 30 seconds would cost to buy.

AVEs are a sore spot in PR circles these days.  KD Paine, measurement maven extraordinaire, has campaigned against them for years as bogus figures that don’t quantify the value of media hits. The Institute for PR Measurement Commission (of which I am a member) officially condemned the practice in October, and PRSA has formed a blue-ribbon panel to address measurement generally — looking to a world without AVEs.

I believe there are certain circumstances where AVEs are useful — product publicity, for one, where features and benefits are the subject. But AVEs need to be net of cost, be based on actual charges, not simply “book rate,” and the publication has to be targeted to the specific business need. My example is Goodyear, the tire company. If they get a product review in Road and Track, it’s going to be relevant to their audience, include features and benefits, and in nearly all cases quite similar to an advertisement. What’s unaccounted for is the reader’s perception of value — AVEs are limited by an inability to include the weight of third party independence.

Look, notwithstanding this last paragraph, AVE is a bad metric 90 percent of the time, and there are other ways of evaluating media coverage that are better.

So, why does it appear that so many firms are stuck on this difficult metric? Well, AVEs are simple to understand. Here’s what it would have cost us to buy this time or this space — that’s a lot easier to grasp for a lot of people. There also is the pressure on PR agencies levered by their clients — “I understand you don’t like AVE, but I have to have a dollar figure to tell my CEO, so if you don’t give it to me, I’ll find someone who will.”

Still, I wish that more companies would stop using AVE. Oh, and that more people would understand that PR isn’t limited to publicity and press agentry. Perhaps the best reason not to use AVE is that it doesn’t measure the reputation work that represents most of what PR work is in business these days. For every stunt PR trick, there are months of quiet conversations with centers of influence, months of work on helping employees better understand their industries and organizations, and programs designed to help people grasp the significance of a company’s role in the community. There is more to our profession than being a low-cost replacement for marketing.

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Discussions you should read

Tuesday, November 17th, 2009

Several good ones:

Rich Becker — great discussion in the comments on social media concepts…

Brian Solis — Do we need to redefine “influencers?”

Chuck Hemann — What impact on social media use/adoption does organizational culture have ?

Paul Seaman — The Excellence theory says PR is about fostering relationships. Paul disagrees.

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Ethics in PR: The Social Media Question

Tuesday, November 10th, 2009

In the political firestorm that engulfs the United States, one side claims the other has no principles, whilst the other claims their opponents show a slavish devotion to ossified beliefs that make no sense in modern America.  Moral relativism, one side’s rhetoric goes, has brought our society to the brink of destruction. Outmoded thinking, the other side’s speaking points read, has made our country a cruel, Darwinist dystopia, where “survival of the fittest” is played out in policy.  For some reason, the ongoing debate of tea parties and new Fascism makes me think about public relations.

The collapse of centralization of news and the growth of social media is fueling a similar decamping in our profession.  On one side, those who believe that social media is an incarnation of evil, bent on destroying the concept of objectivity and authoritative sources, not to mention the homicide of the public relations industry. On another side (there are more than two), those who see social media as the democratization of information and the dissolution of concentrated media power, elevating ordinary people and adding to the diversity of voices in the media mix.

The ethical questions percolating for me these days relate to our role as PR people in participating in social media.  In the sense of the “Excellence Theory,” social media should represent the triumph of two-way, symmetrical communication; active engagement of organizations and their stakeholders, seeking mutual benefit.  But it seems to me that organizational participation in social media is still largely an asymmetrical game of persuasion, of message sending rather than dialogue. Marketers dominate the conversation online, devaluing PR objectives regarding reputation in favor of metrics focusing on revenue generation.  Organizations continue to struggle to find applications for social media inside the enterprise (speaking broadly here; fully aware there are exceptions), as despite efforts to embrace openness and multi-directional communication, command and control is difficult to release.

The dilemma for practitioners is especially acute for agencies and suppliers, and the ad value equivalency debate is an example. AVE has been discredited for years, but is still in common use because many clients demand it. They understand it, and AVE provides a shorthand description that they find useful.  The Institute for PR Measurement Commission recently condemned the practice, with one member writing that just because something is popular doesn’t mean it’s right.  When a client pays an agency and asks for AVE, we should say “no,” goes that argument. But the fear is that, “If I don’t give them AVE, they’ll go find someone who will.”

On the social media side, should all organizations use social media?  What is our ethical responsibility here? I’d be hard pressed to say that everyone should embrace social media.  I cannot make that claim, that is, if I care about giving good advice to my client. It’s not much different than telling a client reflexively that they need an intranet, or a newsletter, or a video. I need to understand the client’s objectives before I jump to tactics.

That doesn’t even address the more serious ethical challenges represented by social media.

Look at the Astroturfing issues, from fake blogs to agency staff commenting on client products.  Is the free market of ideas and caveat emptor sufficient to rein in those who have no compunction about engaging in such tactics?

I have always been an idealist with respect to media, seeing the years between Edward R. Murrow and Watergate as the pinnacle of journalism, heroic reporters, courageous editors and committed publishers digging for The Truth, all with peerless ethical grounding. The disappearance of even the pretext of objectivity in journalism (reaching its zenith — or nadir — with MSNBC/Fox News/The Washington Post/New York Times) has disgusted me, even as I admit that objectivity was a goal, not a reality according to my own journalism professors. We could aspire to objectivity and embrace fairness, something few media outlets now even attempt, at least by my crude measure.

Certainly the outright failure of the trust equation (media, government, business all suffer), should be laid bare here. One must evaluate the media’s biases and objectives, and caveat emptor reigns there, as well.

People determined to do wrong will find a way if their personal ethical compass permits. Maybe that’s the scariest part of all of this. We’re relying on individuals to manage their own ethics in a time when ethics are subjective, not objective, and right and wrong are relative concepts.

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NYT ‘Corner Office’ shows power of leadership communication

Monday, November 2nd, 2009

It’s usually on page two of the Sunday New York Times business section. A short Q & A with some notable business leader that covers the usual ground –  “How do you hire? What are the most important leadership lessons you’ve learned?” This week, Harvard’s president, Drew Gilpin Faust, is on the hot seat, and she joins a long list of her peers in crediting effective communication for much of her organizational effectiveness.

There isn’t anything particularly earth-shattering in the interview, and truth to tell, there usually isn’t. But I continue to be heartened by the focus on communication as a business process that I see in this feature almost every week. Faust says:

“I spend a huge amount of time reaching out to people, either literally or digitally, and with alumni networks all over the worl, so that I can connect. Leadership by walking around — that a digital space now, it’s virtual space.  An enormous amount of my job is listening to people, to understand where they are, how they see the world so that I can understand how to mobilize their understanding of themselves in service of the institutional priorities.”

The interviewer says, “But you can’t make everybody happy.”  Her reply:

“No, you don’t make everybody happy, but if people feel they were listened to, they’re going to be much more likely to go along with a decision.”

If that short conversation doesn’t motivate communicators to see themselves as something other than a media publicity machine, I don’t know what will.  We, alone in the organization, are well-equipped to counsel leaders on communication effectiveness.  Yet, we too often cede this skill to Human Resources (“Well, it’s really about training people, and that’s HR!”).

We are the experts at communication. We understand why dialogue and discussion among our employee base is important. We know what a good presentation is and how to help improve the level of communication in our organization.  If not us, whom? And yet, most of us would rather work with a reporter on a media story than do the hard work of remaking our organizational culture from hierarchy to high performance.  We rationalize that choice by claiming that the media story has more impact on revenue. But the jury is still out on that, except for marketing communication and product PR. I submit that we’d positively affect reputation in a measurable way if we focused more on making our leaders and their teams communicate better.

I’ve been reading the Corner Office in the Times for years. I haven’t yet seen an executive say that media relations is a core leadership function.

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As Ad Spending Declines, What of Media?

Thursday, October 29th, 2009

“The Wall Street Journal” closes its Boston bureau“Forbes” lays off a couple dozen this week, with rumors flying of more to come. “The New York Times” is looking for 100 buyout exits. Conde Nast shutters “Gourmet” magazine, and “Cookie,” “Elegant Bride” and “Modern Bride.” It’s a lousy time to be a journalist, eh?  But what about being the PR people who pitch these pubs?

With advertising spending falling (or at least reclassifying from print to broadcast and Web), “getting media attention” in the right segments continues to be a critical element of PR activity. But the burgeoning social media market is threatening to change that calculus, if you believe the doyennes of blogs, Twitter and similar platforms.  And why wouldn’t it? If we were pitching Modern Bride before, why can’t we pitch Classic Bride, Becoming Mrs. Jones, or The Broke-Ass Bride?

Does a company that makes bride dresses, or wedding catering, or domestic partnership photography have the time necessary to build relationships in social media? Or do they just need a quick ad with a special phone number that offers 20 percent off, a mention in a popular blog?

How many of us will the new behemoth integrated agencies need to help facilitate these processes? Who’s going to pay us to tell them to talk to a bride blogger in Madison, Wisc.?

This is only part of the puzzle — I have written before about the lack of independent and authoritative content in new media. Unless many of us suddenly become willing to pay a subscription fee for such content, it’s going to go away.  Perhaps crowds really are wise, and not mobs. Perhaps over time, Wikipedia is more accurate than the Encyclopedia Brittanica, notwithstanding being horrifically inaccurate at the moment we need factual information, or openly manipulated.

Any of us who care about this topic will need to develop our own ability to engage in social media, build our reputation for accuracy and probity, and somehow compete with the fakers, liars, and spammers. That’s not an easy task.

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