Insights for Leaders Navigating
Visibility, Credibility, and Growth.
From media strategy to reputation management, we explore the trends shaping public perception and share the approaches that drive measurable results for growing brands.
The Associated Press (AP) announced on Monday, April 6 that it would crack down on Web sites and search engines that use the work of the news organization without first obtaining permission from them and agreeing to share profits. In an effort to “exercise some control” over the practice of reposting articles and gaining profit from selling packaged news feeds, the AP plans to take legal action against these sites.
According to a New York Times article, AP executives said they were “concerned about a variety of news forums around the Web, including major search engines like Google and Yahoo and aggregators like the Drudge Report that link to news articles, smaller sites that sometimes reproduce articles whole, and companies that sell packaged news feeds.”
While this new policy applies to organizations whose work is distributed by the AP, it will focus on developing a system to help revive the ailing newspaper industry and implement a system for shared revenue between newspapers and sources that are repurposing news articles. Up until now, news aggregators and search engine companies safely repurposed headlines and portions of news articles under the legal doctrine of fair use.
The AP continues to work out the logistics of the new policy, including how to limit use of articles and how to share revenue, AP Senior Vice President Sue A. Cross said the goal of this new policy isn’t to work against aggregators – it’s to “tackle bigger economic issues at stake.”
As the economy and changing media landscape continue to impact the newspaper industry, the prospect of gaining revenue from search engines such as Yahoo! and Google is tempting for many news organizations. Yet some executives at these organizations argue that this policy is “misguided” and state that much of their own Web traffic is generated through links on search pages. Others argue that although they appreciate the Web traffic generated through search engines, they believe they should receive some of the profits from these sites such as Google News, which rakes in profit from the reposted content by selling ads on the site.
I expect this debate will continue as news organizations search for ways to stay afloat. Eric E. Schmidt, Google’s chief executive, predicts the newspaper industry will eventually resemble television, “where some content was free, some was purchased by subscription and some was paid for every time it was viewed.”
Do you think Web sites and search engines should share revenue with news organizations when they repost the headlines and pieces of articles? We would love to hear your thoughts! E-mail us at [email protected].
Twitter can be an invaluable resource. From chatting with friends to connecting with new people, this social network provides a way to instantaneously share information. But the sheer volume of conversations and links can be overwhelming, and many people find it difficult to navigate.
So we were pleased to learn about a Twitter feature designed to address this problem. Twitter users can use hashtags to group topics, events, communities, industries, locations or any number of other categories, thus creating organized, uninterrupted conversation chains that are easy to follow and find. For example, by searching for “#publicrelations” in Twitter Search, you can find all tweets that people sent with that hashtag. To insert your comments into the conversation, simply end your tweet with the appropriate hashtag: “Peter Shankman’s HARO is a great PR tool #publicrelations”.
Hashtags can also be used for industry conferences, such as #sxsw for South by Southwest in March, an annual music festival in Texas.
In her blog post on Twitter hashtags, Heidi Sullivan notes that while anyone can create a hashtag, as a best practice they should do some research to make sure a hashtag doesn’t already exist for their community or topic. Heidi recommends searching the Twitter Fan Wiki/Hashtags page for an up-to-date list.
Have you found Twitter hashtags helpful? We would love to hear your experiences or tips to get the most from Twitter.
The uncertain economic climate continues to affect marketing and public relations budgets. However, a recent study from Text 100, a global boutique PR consulting firm, illustrates the positive impact public relations can have on a company’s brand value.
The study, outlined in a recent PRWeek article, found companies that produce more complicated products benefit more from PR than those companies in sectors like personal care and apparel. In fact, 27 percent of a brand’s value is tied to how often the brand name appears in the press.
Products that are more complex such as computers and cars are more affected by media coverage. For example, if a consumer conducts research on a product before making a purchase, media impressions (public relations efforts) have a larger impact.
Nils Mork-Ulnes, vice president of Context Analytics, opines “Where there is more risk involved for the buyer is where the link between real brand value and media prominence is the strongest.” Although public relations efforts still benefit companies in industries such as personal care and apparel, I agree with Mork-Ulnes’ statement.
Text 100 and Context Analytics examined Interbrand’s annual rankings of the Top 100 Global Brands to find how the brand’s ranking related to media hits. The study found that 48 percent of the computing industry’s brand value was explained by media prominence, 16 times that of the personal care industry.
About a year ago, when I was shopping for a new laptop I researched the latest news from Apple, Dell and other leading computer makers. I poured over articles and reviews about each brand and model. Ultimately, I selected my notebook computer largely due to the positive reviews from other customers and technology experts.
I’ve also found social networking has a large impact on purchasing decisions. Just recently, I saw a poll on a friend’s Facebook page inquiring about the differences between an iPhone and Blackberry. The majority of people were in favor of the iPhone because of the “cool” applications. I’m not sure if he decided to go with the iPhone, but the comments clearly identified Apple’s brand value and illustrate how consumers are using social networking sites to gain information about products and services.
Have you based your latest tech gadget purchase on media hits and blog buzz? If so, we’d love to hear about it! Send an e-mail to [email protected] or leave a comment.
April is National Autism Awareness Month; and given the staggering numbers of children diagnosed with autism, it’s probably safe to assume you know someone impacted by this condition. Autism is a brain development disorder characterized by impaired social interaction and communication, and by restricted and repetitive behavior.
According to the Center for Disease Control and Prevention, one in 150 children is affected by autism. It is the fastest-growing developmental disability with a new case of autism being diagnosed almost every 20 minutes.
Today doctors and parents are better equipped to help treat autism; however, there is still a lot of work to be done. To better explain what is known and unknown about autism, CNN published an article yesterday, April 2, examining the war against autism. The article focuses on vaccines and environmental factors, information about the growing rates of autism and how families can find solutions to pay for treatment and therapies.
We worked closely with CNN on behalf of Seattle Children’s Hospital to place this article. By building a solid relationship with Miriam Falco, health and medicine managing editor with CNN, we were able to present story ideas to her and provide her with resources the article. This meant not only offering Miriam the perspective of Dr. Bryan King, director of child psychiatry at Children’s and a recognized national autism expert, but also connecting her with a family touched by autism to share their perspective and bring the story to life.
As we have blogged about in the past, personal stories can bring powerful emotion to a story and highlight an experience that either directly or indirectly impacts many people. To read more about leveraging personal stories with media read our past blogs about the power of a personal story and the Obama Administration.
By incorporating a variety of expert sources and offering readers the family’s perspective, Miriam does an excellent job of showing readers what autism means to different people rather than telling. From a PR perspective, showing audiences the narrative story versus telling is an important rule to crafting a compelling story.
Click here to read Miriam’s article titled, “Progress is slow in the war against autism.”
Today Apple officially launched its new three-tiered pricing system for its iTunes digital music store and eliminated the “one price fits all” model. Back in January, the company announced it would implement a new variable pricing structure in which songs would be offered at one of three pricing tiers: 69 cents, 99 cents and $1.29.
News of the new pricing structure has caused some to re-examine the digital music download market and pricing strategies. The instant popularity of iTunes has no doubt changed the way consumers and the music industry look at purchasing and selling digital media. However, according to Nielsen Co.’s SoundScan service, growth in paid downloads slowed significantly in 2008, rising 27 percent, compared with a 45 percent increase a year earlier.
While it’s unclear whether or not consumers will embrace the new pricing structure, the question ultimately becomes, what will be the impact of this new variable pricing structure? Is this the answer to the long-fought battle between music labels and download service providers (DSPs)?
One of our newest clients, Digonex, a provider of real-time, demand-driven automated pricing solution believes a variable pricing model provides a win-win solution for consumers, retailers, music labels and artists; and iTunes’ move to a variable model validates the company’s stance that not all music is worth the same amount.
For consumers – Variable pricing enables download service providers (DSPs), labels and retailers to offer music to consumers at a price they perceive to align with the value of the music. It also gives consumers a way to participate in the price setting of music. If consumers believe prices are too high, they will not purchase the music.
For retailers – variable pricing finds the sweet spot (optimal price) for all products based on different levels of consumer demand.
For music labels – much like the “Long Tail” concept, variable pricing enables music labels that sell small volumes of hard-to-find items to experience a significant profit. Variable pricing models optimize pricing for an entire catalog to maximize returns.
For artists – variable pricing models provide an incentive for consumers to purchase an entire album as opposed to a single track. This in turn, benefits an artist as more consumers experience the full body of work, not just a portion of it.
Dynamic Pricing Models
While a variable pricing model is a step in the right direction, Digonex believes the optimal model for the marketplace is fully dynamic pricing. Unlike variable pricing models, dynamic pricing models allow pricing to adjust up or down based upon consumer demand. This enables music labels and retailers to offer prices that are market-driven, and consumer and seller friendly. Dynamic pricing models ultimately help reduce the cost of albums thereby increasing the value for consumers, and empower those listeners to explore albums and discover tracks they might not have otherwise.
As a longtime fan of iTunes and a self-proclaimed download junkie, I welcome the new pricing structure and would furthermore support a dynamic pricing model. When Kelly Clarkson’s new album came out I would have paid any price (say up to 18 or 19 dollars) to get the full album because I’m such a fan. But more often than not, I find myself browsing for music based on my moods. A dynamic pricing model would certainly give me more incentive to do so – and after all, wasn’t music discovery the original purpose of iTunes?
What do you think about iTunes new pricing structure? Will you still continue to download music from Apple? Will you be more inclined to purchase albums? Tell us your thoughts or send us an e-mail at [email protected].
For more information on this topic, please see the article which Reuters published about Digonex.
Another CTIA has come and gone, and despite the low attendance (presumably due to the economy), below is some interesting news that we believe came out of the show. The tone of the show was set by keynote addresses from executives at T-Mobile, Clearwire and RIM who all stressed the importance of continued growth through innovation.
Some of the hot topics at this year’s show included:
1. Application development – Mobile applications and app stores were a major theme of the show. For example, AT&T announced the launch of AT&T Apps Beta, which gives developers the chance to test applications with customers and receive feedback before making their applications broadly available. Other companies such as Verizon and RIM also announced plans to develop app stores to customers.
In a Wireless Week article, Jeffery Kagan, a telecom analyst said these announcements from AT&T, Verizon and RIM illustrate one of the key themes of the show which is growth. “This points to the fact that the wireless industry is expanding and letting users choose from a large and growing variety of wireless programs for home and work.”
2. Green initiatives – Several mobile companies unveiled products and strategies to help consumers reduce carbon footprints. Motorola announced a new recyclable mobile phone called the Motorola Renew which features a carbon-neutral device with a body made from recycled water bottles. Additionally, Nokia Siemens Networks showcased its eco-conscious base station, the Flexi.
Former Vice President Al Gore spoke to attendees saying that wireless technology will be “one of the key tools that we use to solve the climate crisis.”
3. Wireless Growth is Driving Business – Perhaps one of the most interesting things to come out of CTIA 2009 demonstrates tangible growth in the industry. The results of a recent study conducted by market research firm, Harris Interactive, illustrates how American businesses are factoring wireless into their overall business strategies.
According to the study results, almost half, 45 percent, of business decision makers state that wireless applications are important or absolutely essential to remaining competitive in today’s highly competitive marketplace. In addition, “When asked how much improvement businesses expect to see in the next 12 months, in terms of increased productivity or cost reduction as a result of deploying wireless applications, the companies surveyed indicated they expect a 15 percent improvement in their bottom-line.”
For more information on CTIA 2009 click on the following links to watch video highlights of the keynotes, listen to podcasts or take a tour through the camera phone photo gallery.
Did you attend CTIA this year? Tell us what you thought of the show by commenting on our blog or e-mail us at [email protected].