Playing In The Road: State Needs PR Help

Sometimes elected officials are only as good as their advisors. One wonders what Nevada Gov. Jim Gibbons’ advisors were thinking recently, allowing the governor to address the crisis surrounding the Endoscopy Center of Southern Nevada, almost a full month late, without the most basic facts, and without any sense of empathy for those affected.

Instead, he came out against the media, criticizing them for their “buffoonery” in covering the health crisis caused by the Endoscopy Center and downplaying the roll of majority owner Dr. Dipak Desai, despite mounting public testimony that Desai and other doctors directed nurses to employ unsafe practices.

John L. Smith, columnist for the Las Vegas Review-Journal, lists dozens of mistakes made by the governor today. Smith likens him to a clown, with a rubber nose and oversized bow tie. David McGrath Schwartz of the Las Vegas Sun called it a crisis response dance.

Papers across the state have published similar reviews, likening the stunt to playing in traffic. It hardly matters that the governor regretted his words the next day.

“My intention was to be sure that people were not fearful of seeking medical care because of the intense media coverage, it was a poor choice of words and I regret it,' Gibbons had said, referring to “buffoonery.”

He might regret them even more. After several members of the Nevada State Board of Medical Examiners revealed ties to the Endoscopy Center of Southern Nevada and recused themselves from any investigation, Gibbons called for their resignations as well as that of the board’s executive director. Some publicly stated today that they have no intention of stepping down. Maybe they sense the obvious.

But this post isn’t about the governor. It’s about communication.

If the intent of the communication was to instill confidence in a health care system under fire, the better message needed to be about 180 degrees different. What could it have been? Here is a five-minute solution, painfully better than the one delivered over the weekend.

• There is a health care crisis; empathy for those affected
• That any Nevadans (regardless how few) are affected is not acceptable or tolerable
• There are many excellent doctors doing their best to help statewide
• There is a cross-agency investigation being undertaken by the state
• A task force is making recommendations to ensure it does not happen again
• Board members with conflicts of interest might ask themselves if they can meet their obligations to the state
• But above all, if you or a loved one is affected, it is important for you and your family to be tested. It’s the right and responsible thing to do.

In addition, the state could have recognized several medical facilities that are offering educational seminars to help people who need to be tested. And, it could have urged Nevadans to give blood. Donations at United Blood Services’ five fixed sites have dropped 25 percent since the crisis began in early March.

That is the message the state needed. Instead, the wrong message had the opposite impact. It has further shaken the citizens’ confidence in the center, in the health care system, and in the state.

It didn’t have to be that way. Crisis communication 101 suggests that you never adopt someone else’s crisis as your own. Or, in other words, no brand is so invincible that it belongs playing in the road against oncoming traffic while cursing at delivery boys when they drive by. You know, they don't ride bicycles anymore. Someone might get hurt.

Proving A Recession: Bear Stearns?

There are two kinds of people who have a higher propensity to get into car accidents. Those who never think they will and those who always think they will.

Bear Stearns was driving too fast for its own good, lending over 30 times the value of its $11 billion in equity. There was bound to be an accident. The question being asked now is how many other firms were driving just as fast as this global investment banking, securities trading, and brokerage firm, founded in 1923.

For those financial experts and media outlets that have been predicting a recession for more than two years, they say everybody. Maybe they are right. Some say it’s the accident that singles the market has already bottomed out.

Regardless, the severity of the Bear Stearns sell off cannot be underestimated. Had it not been for JPMorgan Chase and the Federal Reserve Bank of New York stepping in late Friday with a financial rescue package followed by an announcement that JP Morgan would acquire Bear Stearns, some say it would have shaken the foundation of global financial markets.

It also provides a hint at just how much of the economy is based on perception.
JPMorgan is paying about $2 a share for a company with a book value of $84 a share, despite trading for as little as $30 per share at the close on March 14. Bear Stearns shares fell $26.32, or 87.7 percent, to $3.68 today.

Last month, after a Reuters reporter asked Bernard Connolly, global strategist at Banque AIG in London, to hypothesize what the U.S. could do to stave off a “depression” as great as 1930s. Some people speculated that he was predicting another Great Depression because that’s how the story read. I didn’t see it that way.

However, I did start to wonder. How much influence does media and social media have in creating a self-fulfilling prophecy, eg. if you yell fire in a room, people tend to react as if there is a fire, even when there is not a fire.

So I asked the question online and off: To what degree is media/new media/communication influencing consumer confidence and possibly contributing to a recession?

Most answers point in same direction. While the importance of consumer confidence varies from modest to extreme, it seems mainstream media may have less, not more, influence on the public. Perhaps that’s why two opposite answers both ring true at first blush.

“The influence of the self-fulfilling prophecy is all-powerful, and is one of the most insidious dangers that we face as a media-driven society,” offered Richard Telofski, president of The Kahuna Content Company, Inc., who recently wrote about the importance of consumer trust during a recession.

“A recession is a fundamentally economic event, fueled by a number of factors each with a different weight,” offered Nevada State Senator Bob Beers. “Communications rapidity is one, but not a major one. Or, in other words, a recession happens regardless of the amount of attention it gets.”

In truth, most discrepancies between media perception and economic reality are tied to definitions. Newspapers tend to define a recession as a decline in the Gross Domestic Product (GDP) for two or more consecutive quarters; whereas the National Bureau of Economic Research tends to define it as the time when business activity has peaked and begins to fall until it bottoms out.

The difference is enormous, which is why it always appears as if the media calls for a recession long before most economists, and most economists seem to call it after the fact. But does it even matter?

Yes and no. This time around, it seems obvious that the housing/mortgage market was a major catalyst for an economic slowdown, especially in cities where the new housing market plays a significant economic role. However, media coverage in some markets may have deepened the troubled.

For example, as a resident of one of the worst housing markets in the country, with prices falling about 15 percent over the last 13 months, it’s easy enough to see some correlation. The reporting may have contributed to the speed that investment homes were quickly put up for sale, adding even more inventory to already overly-saturated market with a high disposition for non-performing subprime mortgages and overbuilt new home market. It was clearly not the cause, but added fuel to the fire, much like the sell off of Bear Stearns stock.

Equally interesting from the answers I received was the suggestion that media has a predisposition for negative news whereas social media would be more inclined to report a truthful personal impact. Even if that were true, one wonders how much opinion can be trusted and by whom. Ask different people and you’ll always get different answers.

According to the results of a Harris Interactive poll, consumer confidence seemed resistant to media predictions despite the crisis, depending on age, region, and household income.

• People in the South are more optimistic (35%) while those in the East are least optimistic (24%).
• People with a household income of more than $75k are more optimistic (46%) than those earning than $35k (34%).
• People ages 18-43 (46-50%) are more optimistic than those 44+ (38%).

These numbers do not overwhelming point to optimism on any level, but it’s interesting how different demographics respond to the same question. In addition, it seems more likely people will be able to find what they are looking for: there are ample experts who advise on opposite ends of the spectrum.

For most companies, however, it makes little sense to launch preemptive scaling, wait it out, or hedge guesses against the growth. Those actions can create self-fulfilling prophecies when the fundamentally economic events occur, not unlike an accident.

Proving Practically: 20 PR Students See The Light

Sometimes practical experience is the best teacher. So for 15 minutes last night, practical experience served as the guide in my last class this session.

Students in my Writing for Public Relations class were asked to walk 15 minutes in the shoes of a starting journalist. It only took two before their feet were sore and some eyes glazed over.

They were given seven real news releases and asked to convert them into three 1-paragraph news briefs. (Ideally, I like to provide 10 releases and ask them to write four briefs in 20 minutes, but I wanted to shave some time.)

Within a few seconds, the room filled with the sounds of a newsroom, fingers pounding keyboards. And then ten minutes in I tossed in an interruption.

”Ring, ring. Hi, I’m a PR guy. Do you want to hear about my news?”

No answer.

“Nobody wants to talk to me? How rude. I have some real good news.”

“I will if your news is better than some of these releases,” one student laughed.

“Oh, okay,” I said. “I’m having a press conference tomorrow.”

“What’s it about?”

“We’re going to pop a balloon,” I said, a reference to Bruce Spotleson, group publisher for Greespun Media, who used balloon popping as an example of what press conferences are starting to become — sales events about nothing.

“I’d hang up,” someone else offered.

“Why? Do you have something against balloons? I thought journalists loved pitches. What am I going to tell my client?”

“We’re on a deadline,” another offered.

“Wow, you sound just like those grumpy journalists,” I mused. “Okay, you have three minutes to wrap up.”

No one could believe how quickly the time whizzed by. And no one was really finished or satisfied with the releases. Their assessment of news releases suddenly wasn’t far off from my own: it would be nice if the releases contained news, had hard facts in the first paragraph, adhered to Associated Press Style rules, minimized typos (including company names), didn’t make them feel like they had to call to fact check everything, and didn’t come over in 6-point type (as one did) in order to conform to some silly “one page” rule.

None of them wanted to do to someone else what I did to them — make their job harder under the pressure of a deadline. Sure, it’s not exactly like real life, but it is close enough to make a memorable point. Newspaper staff is shrinking and well-written releases with news sometimes help fill the gaps. Well, hopefully not that much.

”Hmmm… I wonder if social media releases will make it easier?"

While some have high hopes that IABC can create real “standards," I had mixed feelings when I read the announcement from IABC that said they will take the lead (even though I am an active member).

On one hand, it may help speed along the adoption rate — now, two years and counting — of a worthwhile communication tool. On the other, one wonders if it is really appropriate to step in after two years and proclaim a leadership role. I also hope, no matter what they do, they’ll put it to the end-user test like I did with news releases in class — ensuring journalists and others have the option to follow up, but don’t always have to follow up.

Even more importantly, I wonder if most SMRs will really help journalists, bloggers, and stakeholders? Or will they become cool looking marketing sales sheets, written by the same folks who still haven't mastered the news release?

I also wonder what needs to be done. Did they see this, which Geoff Livingston pointed to last year (it's good, despite some marketing heavy copy)? Or this, which I pointed to a few months before that? I hope so. It might dramatically shorten the development cycle.

Rest assured though, one day I’ll probably pass out 10 social media releases to a class and ask them to walk in the shoes of someone else. Something tells me they will still get sore feet, regardless.

Making Everyone Famous: YouTube On TiVo

Innovation doesn’t wait. It happens.

As major networks consider how they are going to bridge the content gap between broadcast and the Internet, the Internet is coming to some televisions.

TiVo Inc., largely responsible for the creation and popularization of digital video recorders (DVRs), will be adding direct access to YouTube videos via TiVo later this year. TiVo users will be able to search, browse, and watch videos on their television sets through their broadband connected TiVo DVRs.

“TiVo’s strategy is to bridge the gap between Web video and television and make as much content available as possible for our subscribers,” Tara Maitra, vice president and general manager for content services for TiVo, told The New York Times.

While this only represents single step toward convergence, there are some significant long-term outcomes.

• Marketers who are already establishing a YouTube presence can direct prospects to clips on TiVo television, increasing the pressure on networks to retain engaged fans.
• Amateur content creators will be able to expand their reach into a distribution platform that was once reserved for cable and broadcast channels. Well-produced content could find product placement and sponsors.
• A major overhaul of the rating system needs to keep up with changes as YouTube content creators could feasibly demonstrate better analytics against Nielsen reliance.
• Producers of network-cancelled shows may have an opportunity to consider going it alone if they believe strongly enough in their fan bases.

The move completely bypasses the concept of embedded advertising needed by networks. The move is bold, but there will be a need to step up consumer accessibility. There are 4 million TiVo owners nationwide; only 800,000 have the necessary broadband connection.

From TiVo’s perspective, it’s a smart move to stay viable as more cable distributors are offering DVR boxes as part of their services. TiVo’s other competitor in this space is Apple TV. However, there is more than one way to access television shows and movies from Apple iTunes and place it on the big screen. This cable will do it too.

There isn’t much room to argue the direction of television. If YouTube can find its way onto television screens, then why not Hulu.com? Why not? That small step — and the ability to download Hulu content to other devices along with a better full screen picture quality — is all that is missing. Hmmm. Looks like convergence isn’t happening. It’s happened. All that’s left are the details.

It will happen. That’s how innovation works.

Exploring Rank: EntreCard’s Impact On Alexa

My wife owns a fake Rolex. She bought it for $20 in Mexico. It’s good enough that it even has a screw-backed case and automatic second hand. Yep, just like the real thing.

Some people are impressed that she owns a Rolex, never knowing it isn’t real until she laughs and tells them. Last time it needed a battery, the jeweler even had to take a second look. He said most people would never know; it was the best “Folex” he had seen.

Alexa ranking is a little like that. People use it for all sorts of algorithms and bragging rights. But the thing is, Alexa rank, which they say measures popularity and traffic on the Internet, is becoming much more like a “Folex” than the real thing. For me, it took an EntreCard experiment to see what others have said for years.

EntreCard Reveals Some Alexa Weaknesses

A few weeks ago, I placed an EntreCard ad banner, which is basically a blogger ad sharing network, on our Back Lot blog. The Back Lot blog is an experimental storefront blog that mostly helps non-profit organizations.

The reason was simple enough. From time to time, I add widgets and other online tools to the Back Lot blog in order to gain a better understanding about how they work, especially to see if they might work for some some social media clients. Sometimes I add these widgets here too. Sometimes I do not.

What struck me after a few weeks was not only the impact of EntreCard on the blog, but impact of EntreCard on Alexa. With EntreCard, the Back Lot blog eclipsed Copywrite, Ink. blog in terms of Alexa ranking. Specifically, it looks like the Back Lot blog receives almost three times the amount of traffic.

However, I also know from multiple analytic programs that this is not the case. This blog averages about 300-500 visitors every day as opposed to Back Lot, which averages about 30-40 visitors every day. So what’s the difference?

• There is high percentage of Alexa tool bar users on EntreCard.
• Many Alexa tool bar users who read this blog subscribe to the feed.

The net result is that this blog looks like it is losing traffic despite gaining traffic whereas the other blog is maintaining but looks like it is increasing. So yesterday, I thought I would add EntreCard to this blog and see what happens. I'll report on it in a few weeks.

Of course, all this is not to say Alexa is bad; it has its place in the world and some people are really good about putting it to work for them. There plenty of people who have even written up twenty or so tips.

Some of those tips work. Some of them aren’t really related to Alexa at all, but they might help gin up traffic anyway — that is, if you are looking for traffic. Not everyone places traffic high on the priority list. Some folks, like me, measure other outcomes.

Sometimes Alexa Comparisons Work, Sometimes They Don’t

What really strikes me about all this is that I could make a lightly visited blog appear to have more traffic than a respectfully visited blog with 10-20 times more readers. Even more amazing to me is that some people know this, but still count Alexa as a measure of their success in between transparency posts, including comparisons to show how their blogs are gaining ground on other people.

Please don’t get me wrong. Alexa can be useful for some measures, just not in the way some people use it, including multi-rank measures. Likewise, I’m not saying anyone who boasts about their Alexa rank is questionable. Rather, I liken it to wearing a fake Rolex. But unlike my wife, they never tell anyone.

Coming Soon: Broadcast-Broadband Convergence

While some people still look to the rating system, others already see the future: one in four Internet users have watched a full-length show online in the last three months. These aren’t just young people: 39 percent were ages 18-34 and 25 percent were 35-54.

Some people are surprised by these numbers, which are growing exponentially. All I can wonder is where have these ‘surprised’ folks been? There are reams of data that demonstrate everybody is online, with only those in the 65+ age group dropping off. Even then, half of those ages 65+ are online too.

What that means is a show like The Office on NBC last September drew a broadcast audience of 9.7 million, but also streamed 2.7 million views on the Web. Twelve million viewers is enough to break into the top 20 shows.

What that might mean for Jericho on CBS is third season survival.

Jericho fans are not taking any chances. They’ve already launched a preemptive campaign to save Jericho again. This campaign started shortly after CBS released numbers that confirm the show plays impressively online: adding 1.5 million views on some episodes, according to CBS Interactive Research. This does not count all other data like DirectTV, iTunes, etc. And, those numbers are still growing.

In fact, it is these kinds of numbers that are prompting networks to turn toward new media rather than away from it. Television and the Internet are closer than ever to total convergence.

“Oh come on, Rich, you don’t really believe that, do you?”

Yes, I do. You see, NBC Universal and Fox would not be testing their joint venture, Hulu.com, if it wasn’t true. Hulu opens to the public tomorrow with many live shows and limited commercial interruptions.

CBS did the same thing with vintage programming like Star Trek online. Except in this case, the network has been doing an especially good job with its presentation while retaining its brand advantage by not spinning off its programming to another site. That’s smart. Very smart.

Even better, convergence seems to have created solutions for its own monetization challenges. Smarter networks are seeing the natural development of a tiered system: You can pay for commercial-free programs via iTunes or watch the ad-embedded programs on a browser. It’s a win-win-win for everyone.

Equally important, there seems to be no shortage of advertisers willing to buy time on live streaming video — an idea that naysayers said would never happen six months ago. Yet, there it is in living color: a show developed in 1966 has suddenly discovered renewed advertising revenue.

“We would love to have more inventory,” Patrick Keane, chief marketing officer at CBS Interactive, told reporters last week. “The advertisers are raring to go.”

Perhaps there is some irony that the success of the original Star Trek is largely based on the same reason Jericho scored its truncated second season: fans that were not on the Nielsen radar. So it seems, once again, that we might be asking the same question.

Is the future of the television based solely on less than 2 percent of the viewing public? Or is there a better way?

“Forty years ago, new technology changed what people watched on TV as it migrated to color,” Seth MacFarlane, creator of another fan-saved show, Family Guy, told The New York Times. “Now new technology is changing where people watch TV, literally omitting the actual television set.”

With a better budget that takes the cast and new characters of Jericho: Season 3 to different locations across their alternate universe, the show could potentially grow into another dedicated fan franchise success story. But that all depends on CBS. It can play the numbers two ways and come up with different answers.

While I cannot speak for CBS, I know what my answer would be. Do what Star Trek did. Go boldly.