THE THIRD WAY: PUBLIC ENGAGEMENT

Richard Edelman

Becoming an Engaged Organization in a Connected World

October 5, 2010

I Thesis

II Landscape

III Third Way – Public Engagement

This is not a party broadcast.

Don‟t panic.

PHASE ONE PAID MEDIA

MASS AUDIENCE

Advertising

PHASE TWO EARNED MEDIA

BROADCAST

Public Relations “Messaging”

RELATIONSHIPS

PHASE THREE OWNED & SOCIAL MEDIA

Viewed by >600,000

in first 24 hrs

Direct Channels

STRATEGIC EQUIVALENCE

“There is now strategic equivalence for the first

time between paid, earned and owned media”

Randall Rothenberg

Interactive Advertising Bureau

OPERATING IN A WORLD WITHOUT TRUST

Which stakeholder should be most important to a CEO’s business decisions?

Government3%

7% Employees

11% Society at Large

13% Customers

14% Shareholders

All stakeholders are equally important

52%

Source: 2010 Edelman Trust Barometer: When a CEO makes business

decisions for his or her company, which stakeholder SHOULD BE most

important to a CEO‟s business decisions?

Rise of CCO

NEW MANDATE FOR PRBeyond Communications to Strategy & Policy

Performance

& Purpose

Consumer

Justification

Corporate

+ Brand

Green is

Green

PR IS THE ORGANIZING FORCE

Mobile

Print/Broadcast/Radio

Digital Properties

Mainstream

Social

Consumer

Journalism

BloggingMobile

Events

Web

Owned

Employee Content

Consumer Generated

New Influencers

Public

Engagement

New Media

I Thesis

II Landscape

III Third Way– Public Engagement

MEDIA IS MASS & NICHEPlayers differ by country, but trend is consistent

Pre-selected

Mass Appeal

Long Tail/

Niche Content

Pre-defined

People need info from multiple sources, voices and to hear it 3-5

times to believe it

0

2009

Movies

Print

Video Games

Computer

Music

TV

700

1999

458

379

MEDIA CONSUMPTION: PEOPLE NOW MULTI-TASKING

Source: Kaiser Family Foundation

Once: 6%

Twice: 16%

3 times: 35%4-5 times: 25%

6-9 times: 6%

10+ times: 5%

DK: 7%

Minutes of media consumed by

8 –18 year-olds per day

3-5 times: 60%

Source: 2010 Edelman Trust Barometer

MEDIA ARE SOCIAL & PORTABLEPeople now have a portfolio of information sources

Source: PEW/Various

37%

51%

61%

46%

63%

33%

internet users contribute to news creation

social networking users get news from people they follow

Americans get their news online vs. 17% from newspapers

Increase in time spent on social networks in ‟08, surpassing e-mail

Americans get their news from 4-6 online media platforms daily

of cell phone owners now access news via

their phones.

+100% 471M

-7% 120M

+1107% 74M

-22% 47M

+6% 52M

+20% 25M

+9% 20M

+35% 54M

0% 34M

-44% 15M

+14% 14M

65% 47M

-12% 19M

SOCIAL MEDIA IS LOCAL23% Follow Journalists on Social Networking SitesSocial networking surpassed email by time spent.

MEDIA EVOLVES: CONDÉ NAST APPROACH

Consumer Ownership

Content Amplification Time

Digital

Magazines

Exceptional

Content

Mobile

Magazines

Web

Properties

Digital

Video

Events

Integrated

Marketing

Inception

Consumer

Journalism

Blogging

“Regular Employee” as Credible as CEO

16

F99-105. [TRACKING] Now I’m going to read you a list of people. In general, when forming an opinion of a company, if you heard information about a company from that person, how credible would the information be--extremely credible, very credible, somewhat credible, or not credible at all? (Top 2 Box: Very + Extremely Credible) Informed Publics ages 25-64 in 20 countries

Spokesperson Credibility

19%

49%

26%

43%

66%

34%

45%

31%

55%

32%

47%

66%

32%

40%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

CEO A financial or industry analyst

Government official

NGO representative

An academic or expert

Regular employee

Person like yourself

2009 2010

I Thesis

II Landscape

III Third Way– Public Engagement

STRATEGIC PIVOT FOR PR

Core Strategy & Creative

Inform the conversation

with compelling content

Discussion & Participation

Dialogue

Execution/Vendor

One-way Communications

Pitching

Earned Media

THE THIRD WAYThe Evolution of PR

Mainstream Media

OwnedMedia

Public

Engagement

New Media

SocialMedia

Listen with new intelligence

Participate in the conversation--real time/all the time

Create and co-create content

Socialize media relations

Champion open advocacy

Build active partnerships for common good

Embrace and navigate the complexity

TENETS OF PUBLIC ENGAGEMENTAdvancing Shared Interests in a World of Inter-dependence

Increased

Trust

Changed

Behaviors

Engaged

Communities

Commercial

Success

Mobile

Print/Broadcast/Radio

Digital Properties

Mainstream

Social

Consumer

Journalism

BloggingMobile

Events

Web

Owned

Employee Content

Consumer Generated

New Influencers

New Media

NEW MANDATE REQUIRES NEW SKILLS

Public

Engagement

Research

Search

Ideas

Content

Media

RESEARCH: IDEA STARTERS AND AMPLIFIERS

New Scientist

Scientific

American Cambridge

University

Press

Greenpeace

International

Identify idea starters

Provide them with relevant content

Who, in turn, engage

amplifiers to start discussions

Print and Environment Division

SEARCH IS KING

Google Analytics

• All content should be search

optimized

• Social media sites like Twitter and

Orkut are now media companies,

with powerful search and trending

data

• Google Analytics measures impact

of advertising vs. search vs.

referring sites

• Real-time (twitter, facebook etc)

data enables participation in

discussions, as well as

measurement

GALVANIZING IDEAS

Stimulates

Action

Can

evolve

Crosses

multiple

channels

Substance

and „legs‟

CONTENTCompelling and Entertaining Easily Shared

DELIVER CONTENT ACROSS 4 SCREENS

SOCIAL MEDIA: GO WHERE PEOPLE ARE

(TWITTER PORGRAM)

Digital Embassies + Consumer Generated Content

"We have the most powerful distribution mechanism that has been created in a generation“ -- Mark Zuckerberg, Facebook

"Companies formerly known as advertisers now have to figure out how to create conversation on Facebook...that's how the flavor program developed by marketing firm Edelman Digital enabled Ben and Jerry's to increase its fans from 300,000 to 1 million in just six weeks.“

-- David Kirkpatrick, The Facebook Effect

NEW APPROACH TO MEDIA RELATIONS

Requires VideoPopular Voice

ImmediacyAggregating Content

DIRECT: EVERY COMPANY IS A MEDIA COMPANY

Owned Channels

Viewed by >300,000

people daily

FROM PR TO PUBLIC ENGAGEMENT

PR has become the organizing principle of strategy and communications

We engage stakeholders in long-term social relationships, as all communications has become public and we’ve moved from a shareholder to a stakeholder world

We build brands/corporate reputations by starting with research, creating galvanizing ides and compelling content that engages multiple audiences through Mainstream, New, Social and Owned media

Tomorrow’s discussion will be about how a social organization can advance your goals