Articles by Neville Hobson

One thing history tells us about uncertain economic times and public relations is that an early casualty is often the communication budget.

Circle the wagons, draw in your horns, focus on core business activities… pick your metaphor to describe what really is the least sensible business decision to make in a recession, looming or actual.

Think about it – why would any business stop talking about their products or services at the precise time when talking to people clearly is what you need to be doing?

Tom writes about the new age of responsibility and how we’re all in this together. He’s speaking specifically about the current financial crisis and banking system bailout, yet could equally be talking about PR.

One of the clearest responsibilities for a PR agency is to show its clients how to connect effectively with the people important to them, whether they’re customers, journalists or employees.

‘Effectively’ means an outcome you can measure and one that is achieved by intelligent and efficient use of your (probably decreasing) budget.

Earlier this year – long before we began to see the current effects of the meltdown in the world economy – IT industry analysts Forrester Research published Strategies For Interactive Marketing In A Recession, a research paper that addresses the question “If the recession is coming, where will you invest?”

Forrester highlights social media, an area that seems self-evident to me as it’s one I’ve spent a lot of time with in recent years. It’s self-evident, too, to an increasing number of companies who understand how social behaviour influences how people communicate and, therefore, how they wish to be communicated with (and see what Dell has to say in their view that social media represents strategic marketing).

I’d like to think that smart companies will begin to answer Forrester’s question by considering it in the context of their own specific business goals rather than a knee-jerk response to simply cut budgets.

And let’s be clear - we’re not talking about tactical things like press releases, websites, even blogs or podcasts: all means unto an end.

What we’re talking about is the strategic use of public relations to support business goals, one that embraces all avenues – the traditional as well as the new – in a concerted effort to connect with people more effectively and cost efficiently.

Adding social media into the communication mix is one way, recession or not. Don’t take my word for it, though - just ask Dell if you want a real-world and measurable example.

Finally, I did like a great post yesterday by Todd Defren in which he bullet-points five reasons why cutting your PR agency is the last thing you should do in a recession.

And in particular, Todd highlights this reminder from the Harvard Business Review:

It is well documented that brands that increase (marketing) during a recession, when competitors are cutting back, can improve market share and return on investment at lower cost than during good economic times.

Are you up for it?

A new survey in the US, published this week, shows some notable trends regarding what consumers expect from businesses and social media.

According to research carried out this month by Opinion Research Corporation for the Boston-based Cone consulting firm, 93 percent of Americans believe a company should have a presence in social media, while 85 percent believe a company should not only be present but also interact with its consumers via social media.

Cone’s study has more interesting numbers:

• 60 percent of Americans interact with companies on a social media website
• 25 percent interact more than once per week
• 56 percent of American consumers feel both a stronger connection with and better served by companies when they can interact with them in a social media environment
• 43 percent believe companies should use social networks to solve consumers’ problems
• 41 percent think that companies should solicit feedback on their products and services

The researchers interviewed just over 1,000 men and women for the survey which suggests you have to stretch some beliefs as this small number is said to represent the views of the population at large, some 300 million people.

While the numbers are far higher than I’ve seen in any other research, I think this survey is useful as it supports some other views that suggest an increasing trend for consumers to use social engagement tools – which include blogs, podcasts, video sharing sites and social networks such as Facebook – in their interactions with companies and brands, and vice versa.

The only trouble with the survey, though, is that neither the researchers nor Cone clearly define what they mean by ‘social media.’ A definition from them would put the survey findings into better perspective. Plus, some detail on some of the metrics.

For instance, what types of social media do those surveyed prefer? Blogs? Social networks? Twitter? And ‘interact’ means what, exactly? A blog post with a means to comment? A Facebook group where you can become part of a community? Or what?

Still, it’s useful data.