The Clients Are Now in Charge...for real

And some of the big ones are real monsters…

If fighting for every client dollar amongst our own industry wasn’t enough, now we are fighting the clients themselves for theirs… as well as ours. A couple of stories this last week really brought this fact home. The Wall Street Journal "Thrift Darkens Industry Hopes" once again reported that this recession is causing big companies like American Express and Shell to cut back on the fees they pay their advertising agencies and thus, asking for equal or more service for the same or less. And "Advertising Age" reported this week that the biggest of all companies, Walmart, is actually asking many of the consumer companies marketing through this behemoth to divert some of individual marketing budgets back into Walmart’s budget…or else! (Walmart of course, doesn’t state it so overtly. They simply hide the threat with a wink under the guise of a “simultaneous push to clear their shelves of underperforming brands.”

So why should this concern me, a CEO of not an ad agency, but a PR firm that specializes in clients much smaller than any of the above? Because in this business of marketing and influence, what happens at the top eventually filters down…and in this current recession and 24/7 trade news cycles, that eventually is shortened to ‘very quickly.’ The big clients are now firmly in charge.

Yes, I know, we have all played to the cliché, “the client is always right” or some such platitude. But that usually only went so far as to acknowledge a client’s right as the “spending partner” to have final say in friendly, professional disagreements…sometimes financial, sometimes creative. This is a different animal entirely, and worst of all it appears to be a trend. Companies that only recently spoke of and often treated their ad and PR agencies, not as vendors, but as marketing partners, now in this buyer’s market have shifted completely into the “you’re a vendor” gear and are driving hard compensation deals where only they are the winners.

What’s an agency to do that wishes to work with the big boys and girls of the Fortune 500? Not much, unfortunately. You could always just keep quiet and go along believing it’s only temporary and once the economy has righted itself the compensation and partnership equilibrium will be restored. Do I hear snickers out there? You could of course, speak out and up at the injustice of it all…using what’s left of the media, trade or otherwise, to state your case. The end result unfortunately isn’t likely to be any more satisfying and, even more damaging to your bottom line.

Or, you can concentrate like many of us in this business have on the smaller entrepreneurial companies as clients. But you better know how to work smart… and for less here as well. Yes, we’re seeing even ‘more for less’ client demands among the smaller companies as well; but since we’ve never really dealt with monster budgets, incrementally it doesn’t seem as bad. And smaller companies don’t have the bureaucratic layers of internal marketing, advertising and PR managers professing to have the knowledge and wherewithal beyond that of their vendor agencies. Our clients, (well ok, most) actually act like they really respect and need what we bring to the partnership.

At least for now.

Incubators are Growing New PR Opportunities

They’re there if you know where to look …and it isn’t just Silicon Valley

I couldn’t agree more with a recent NY Times story, "In Tech Industry, Some Signs of a Comeback" that stated, “even in a downtrodden economy, hope springs eternal, and technology companies are among those starting to feel more hopeful.” This was really brought home for me this last week as I attended meetings on both coasts with the young internet entrepreneurs that are refusing to be intimidated by the doom and gloom pundits, long hours and even in many cases, little to no funding.

My first visit was with Dreamit Ventures in Philadelphia, a dynamite gathering of embryonic companies run by a new generation of “garage entrepreneurs” that are as bright and ambitious as they are impressive in their goals…and, in their desire to learn from others that have gone before. I was fortunate to have been asked to join a long list of previous speakers from corporate attorneys and marketing gurus to venture capitalists. They listened intently, asked great questions, took tons of notes, and were genuinely interested in understanding how to best communicate to their present and future market audiences. Truthfully, I’m not sure who learned the most…myself, or these young entrepreneurs. Their creativity and enthusiasm was infectious. But it was their optimism against arguably some of the toughest financial times ever, that left the greatest impression. I suspect more than a few will beat the odds and grow into successful long-term businesses.

A day later I was in Southern California…Orange County to be exact, where twenty-five years ago I opened Burson-Marsteller’s first ever technology focused office. That office is long since gone, but technology start-ups are still flourishing along the Interstate 405/5 corridor. My company, INK inc., has been fortunate over the years to have developed strong working relationships with many of these young companies, but on this trip I was here to meet with a young exec with Google (aren’t they all) that was kind enough to be introducing me to several new start-ups as well as the VC’s supporting them. Once again, I couldn’t help but marvel over the simple fact that to these young companies and the fresh minds that create and drive them, there are few negatives in their day. They cannot afford the time to feel empathy or sympathy for others struggling with the economy. After all, they are in survival mode all day, every day…have been from their inception.

Yes, some, if not many of these start-ups won’t survive. So as a PR agency, is it worthwhile to waste valuable time on such risky endeavors? It is, absolutely, if the agency can work within the constraints of time and budgets that dominate this entrepreneurial world. However, those PR firms that can’t leave their fat retainers, hourly fees, and big egos at the door, will miss and should miss this golden opportunity. For those select start-ups that do grow and thrive against the odds represent fantastic opportunities to forge a long-term client bond based on not only being there in the beginning, but in contributing to their success.

Not Charging By The Hour Doesn’t Make Time Worthless

PR recessionary lesson No. 1…save the baby!

You know, as long as we’re stuck in this nasty quagmire of a recession there are a number of lessons to be learned while we all wait (and hopefully work) for the promised turn-around. The first of which is how we keep from devaluing time when we have more of it on our hands. This seems to be a particular trait of larger enterprises where being busy or at least the appearance of being busy was prized and rewarded with ever increasing promotions and escalating salaries. But as the economy has soured and marketing or PR salaries have gone south or disappeared altogether, we have a new phenomenon emerging….doing more for less on the inside of an enterprise…and doing more for nothing on the outside. The attitude seems to be that “if I have to work harder for less, than you, Mr. PR vendor, must work for even less and perhaps nothing until you have proved your value. Since you’re not charging me by the hour, then your time must be free…” Really? I don’t think so.

Granted, this recession is driving many of the bad compensation practices and PR-types cultivated during the boom into the waste basket they deserve…however isn’t there an old saying about babies and bath water that should apply here?

Sure, budgets have disappeared or tightened, and the competition to hold existing business and to secure new accounts is far more competitive than ever. And, traditional PR agencies are even (God forbid) ever so slightly experimenting with performance-based compensation to keep those elevators rising. But does shifting away from exorbitant hourly fees or being more creatively competitive in proposals mean that the time still expended has lost all value? Even if such value is translated only in respect for the time spent. Exactly when did dollars charged equate to respect given? Where is it written or taught that when one does not charge incrementally for something, than the cumulative effort has no value…particularly if it is as a result of a plea for assistance?

We’ll continue to utilize all our experience and put forth our most creative, and therefore most competitive thinking to both sign and launch our clients toward success. If these tough times didn’t call for it, then our respect for our own professionalism as well as our client’s business would require it. What we ask in return is not an hourly stipend but that the prospects and clients respond in a timely manner and participate in the process. Respect our time as they ask us to respect theirs.

We all know that a long-standing truism in this business is that when a prospect or client wants something, it’s always with a yesterday deadline. And, when the agency needs something in return, yesterday deadlines become a few days. Ok, understood. It’s part of the game and we’ve all played it. But, hey…a little respect for our time here…even if we’re not charging you by the hour.

Reflections on the First Blog

“When in the Course of human events it becomes necessary for one people to dissolve the political bands which have connected them with another and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.


We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness…”


Thomas Jefferson, et. al. – July 4, 1776


Enough said.

Age of Irrelevance

From left to right: Dick Grove,+++, Katy Leakey+, Philip Leakey ++
Relevant contributors on a global scale inspiring change

Where the media gets it wrong…

As many of us know, growing older is a double-sided coin. And those of us in PR, still laboring and not yet retired out of desire or necessity, know that this coin spins and lands heads up or down daily as a reminder of our vulnerabilities and strengths… as well as our irrelevance to many. This blog post will probably not resonate with those readers that don’t remember a world without MTV or for that matter, Michael Jackson…a time long ago when all great music on TV came from either American Bandstand or Soul Train. However, if you’re willing to indulge an inhabitant of what must seem like “the old days,” you might learn something.

That double-sided coin landed on both sides this week. My company, INK inc. PR, was in the final stages of being mentioned in a story being written for Entrepreneur Magazine when it was discovered in the fact-checking stage that the founding CEO’s age was sixty-four. Not a big deal and certainly never hidden since it was never thought to be relevant. Aha and alas! It may not be a big deal, but it is important…at least to the editors of Entrepreneur. It seems under the old regime that no CEO was profiled over the ancient age of 50 to 52. We await (with our pacemakers carefully monitored) to see if the new editors are more enlightened and understand that maybe, just maybe a great business idea might possibly be generated by someone older than the founder of Twitter.

The entire incident reminds me of the great song from the musical hit, Chicago, “Mr. Cellophane”…the ultimate paean of reaching a certain point in your life where you become irrelevantly transparent to the world you still very much inhabit. That is exactly how much of the media and pop culture treats us. We no longer fit the advertising demographics of greed. We’ve hit the “plus or and above” point. You know, that upper level in demographic metrics no longer worthy of a number…just a + or ‘and above’ notation. All of us are lumped as “seniors” or even worse, not lumped at all.

Then just when I’m about to take out my hearing aids and slink off to find a good nap, that fickle coin flips back to heads up. Invited to address an off-site client’s sales force that is facing a crisis of potential media negativity, my age is revered under the guise of “vast experience, knowledge, and gravitas.” I receive a standing ovation as much for the gray in my hair as the words I have spoken. It seems that when a crisis strikes, as they inevitably do, a little “been there, done that” (or a lot, as this case may be) can be more valuable than a whole legion of Twitter followers.

Touché’, Entrepreneur!

As a matter of full disclosure, I readily admit to being an avid if older Michael Jackson fan with no reservations, as well as a proud owner of the Thriller rock video. Of course I did purchase it in 1984 as a VHS tape...

Father Knows Less

Passing the torch to a new generation…

In reading Garrison Keillor's Fathers Day column today my mind wandered to my own feelings about fatherhood and getting older.

One of the really great things about getting older (and there are not nearly as many as popular songs and aging pundits would like you to believe…) is coming to realizations that your kids might just have something in how they’ve chosen to approach their lives… that maybe, just maybe, your way has some flaws or at least is passé, and may not be appropriate for others just because they carry your DNA. And when your kids are no longer kids, chronologically at least, but adults pursuing their own version of life, liberty and happiness, this realization can be even more apparent. But alas, when your offspring choose by design or circumstance to follow into your profession then the admission that it might just be time to pass the torch to a new generation is all the more personal.

Sharing a profession with a new generation is a touchy thing. Sharing a profession with a new generation that shares your name has its own sensitivities… and rewards. Family gatherings and telephone conversations often wander to business discussions and comparisons of technology, strategy, and even pitching techniques… and always the media. However over time one fact becomes undeniable, things have changed and usually for the better. Technology is driving this evolution across the board…it’s forever altered the media landscape, it’s revolutionized the how and the speed in which we communicate, and it’s heightened expectations from all quarters.

Sure, even us aging PR types can adapt…heck, didn’t we move easily from typewriters to computers… from dial phones to cell phones…from daily newspapers to hourly online updates? Of course, but is there a point where we still want to as badly as before? A point where we look back with pride of our accomplishments and forward with equal pride over what is yet to be from our namesakes. It doesn’t take long to realize that the new generation might just be more inclined if not necessarily better equipped to take on these challenges. They are our best and brightest… time to let them risk it all as we did…fail as some of us did…and succeed as some of us did.

There is one thing that has not changed with technology. Public Relations is still not rocket science in its complexity nor curing cancer in its human importance. There are those in this profession that would love to have you believe otherwise because of their own internalized need for self-importance. These same people that strive to find euphemisms for publicist are the ones that insist that without initials and acronyms attached to their names, they will be considered less than “professional” …hogwash (a nice, very old fashioned word.)

So one bit of sage advice I’d like to pass on as a father, to both mine and others that follow in PR… do so with integrity, but with a sense of perspective and humor.

When Did Integrity Become a Four-Letter Word?

All the news that’s not fit to print

A few days ago a well-respected citizen in the small town I reside in, was unfortunately killed in a bicycle accident. An experienced cyclist wearing a helmet as always, he simply hit a pothole in the dimming light of dusk, and was thrown headfirst over the handlebars. One of those horrible reminders that life and fate are fickle and never to be taken for granted. In the days following however, I have witnessed an absolute outpouring of testimonials to one quality above all others of this gentleman…integrity…his insistence throughout his life of truthfulness and fairness in dealing with others, even to the point of sacrificing his career on occasion.

With a certain article in the New York Times still fresh in my mind. I couldn’t help but wonder what many of our contemporary “blog journalists” will be remembered for when it’s their time. “Integrity” “Truthfulness”… not a chance in hell.

When Michael Arrington openly and proudly boasts that what he reports in his highly popular TechCrunch blog is not always true, but that he “doesn’t want to lose the rawness of blogging.” The article points out that Arrington, with a law degree and no journalism training, sees less importance in credibility and fact checking than in an involved readership. “Getting it right is expensive,” he says. “Getting it first is cheap.” Now there’s a philosophy to live by and be remembered by.

None of this, and certainly not Arrington, his super arrogance, and his less-than credible blog posts, would be of much importance if it wasn’t, unfortunately, indicative of what passes for journalism in these days of blogs, tweets, and YouTube “gotchas.” Just when did reporting backed by solid investigative research become the exception and not the rule? Sure, we all want and demand our news fix quickly and conveniently in this fast paced world. But at the expense of truthfulness? Just when, exactly, did integrity become a four-letter word?

We in the PR profession often get blamed for playing slipshod with facts in defense of our clients. And undoubtedly some of us have. But we look like paragons of virtue compared to those interviewed for this Times article.

It was only a few brief months ago that Arrington wrote his famous blog about his life being threatened and therefore he was going to cease writing and go into hiding after someone deliberately walked up to him and spat in his face.

Arrington stated at the time it was “the right thing to do…and spend time getting a better perspective on what I’m spending my life doing.” Perhaps Arrington should have spent a bit more time on this reflection…or better yet, report in his next TechCrunch blog that he was heretofore going to only print real news…Wink. Wink.