How Are the Mighty Fallen!

There have been massive changes in the practice of public relations since I first joined the PR firm of Makovsky + Company more than ten years ago. Back then, most major cities had two or three local newspapers. Today, many are down to just one, as Ken Makovsky has described in his recent “My Three Cents” blog… and it’s at risk of folding.

On March 16, the Seattle Post-Intelligencer published its last print edition, leaving the biggest city in the state of Washington, with just one daily newspaper, The Seattle Times. The 146-year-old Seattle P-I will live on in a digital version as a “news and information portal.”

The struggling U.S. newspaper industry must be waiting with bated breath. Who’s next?

Just a week, content provider 24/7 Wall St. released a list of the 10 most endangered major daily newspapers. Based on an analysis of the financial strength of their parent companies, the amount of direct competition they face in their markets and their financial losses, these are the newspapers likeliest to fold or begin publishing an online edition only … many within the next 18 months!

1. Philadelphia Daily News
2. Star Tribune
3. The Miami Herald
4. The Detroit News
5. The Boston Globe
6. San Francisco Chronicle
7. Chicago Sun-Times
8. New York Daily News
9. Fort Worth Star-Telegram
10. The Plain Dealer

I’m a big believer in consumer-generated media and the importance of citizen journalists as investigators and whistleblowers — but as a public relations consultant and a citizen, I certainly would hate to lose the professionals of the Fourth Estate.



Technorati Tags: media crisis, newspapers, journalism, 24/7 Wall St., Seattle Post-Intelligencer, Seattle Times, Philadelphia Daily News, Star Tribune, Miami Herald, Detroit News, Boston Globe,San Francisco Chronicle, Chicago Sun-Times, New York Daily News, Fort Worth Star-Telegram
Makovsky + Company, PR firm, Ken Makovsky, My Three Cents

A Question to Bankers: What’s Up with Your PR?

I recently read an interesting article in Advertising Age about the marketing challenges facing financial services industry in the post-TARP world and how banks are responding.

Some customers are asking whether Citibank is a safe place for their savings,” writes reporter Beth Snyder Bulik. “So what is Citibank doing? Running ads in the Wall Street Journal about its microfinance capabilities in Texas and India.”

It’s just one example of the tone-deaf marketing messages coming from some banks that don’t answer worried customers’ real concerns … Is my money safe? Can I trust you? Will you be here tomorrow?

According to Ad Age, the top 10 banks and credit-card companies cut their ad budgets by a more than 25% in the fourth quarter of 2008 and nearly 40% December compared with those same periods in 2007. This represents a tremendous opportunity for banks and other financial services institutions to step into the void and claim it for their brand.

As our CEO, Ken Makovsky, wrote recently, public relations “is significantly less expensive than advertising and much more credible. We’re talking about a modest investment in time and money that delivers a major return on investment.”

DST: A Sinister Plot to Toy with Our Biorhythms?

It’s almost here. The time of the year I hate most. The day on which I am robbed of a precious, precious hour of sleep … Daylight Saving Time. This year in the U.S., DST begins on Sunday, March 8, at 2:00 am, when clocks are adjusted forward one hour. Time doesn’t revert to normal again until November, when clocks are set back (and I get my hour of lost sleep back again.)

I’m a public relations consultant. I work for a leading business-to-business (B2B) PR firm based in New York City. Our unique positioning is the “power of specialized thinking” — so I have to be able to think. How can I think when, every spring, my bio-clock is being messed with by some Time Lord with a nonsensical agenda?

Here are the three top reasons I think we should do away with DST. (I’ve got more if you want them.)

1. It makes for less efficient workers. Studies estimate that that sleep deprivation costs U.S. businesses an estimated $150 billion a year in absenteeism and reduced productivity.
2. It’s not green. A 2008 study that examined billing data in Indiana before and after it adopted DST three years ago found that DST increased residential electricity consumption by 1% to 4%.

3. It takes time to change clocks. And as more high-tech devices contain clocks, more time is spent changing them. (I avoid this problem by leaving my watch on standard time all year-round. For the six months of DST, I simply add an hour in my head.)

In his My Three Cents blog, Ken Makovsky has written that “outstanding productivity in business depends on executives who are awake.” He suggests power napping as a solution. I say, put an end to Daylight Saving Time.

There Is Nothing like a Nap

Ken Makovsky, the CEO of our public relations firm, has written about the benefits of “power napping” on his blog, My Three Cents. He passionately believes that naps enhance information processing and learning, reverse information overload and increase productivity. He’s definitely not alone in his views.

If you too want to deploy a napping strategy to become “smarter, healthier and safer,” it’s worth checking out the Boston Globe feature, “How to Nap.” It’s not just a great in-depth look at the myriad health benefits of naps and how to attain them, it’s also a great example of how to use a well-designed visual to effectively communicate complex information quickly and easily.

The Demise of Truth?

A couple of years ago, in his My Three Cents blog, PR guru Ken Makovsky wrote about the concept of “truthiness,” a word coined by the Stephen Colbert, host of the Comedy Channel’s Colbert Report. Truthiness is believing what you feel or wish were true, without reference to logic, evidence or facts.

There’s new book out called True Enough: Learning to Live in a Post-Fact Society, by Salon.com staff writer Farhad Manjoo. In it, he explores the idea — well supported by cognitive scientists— that when the facts don't fit a person’s frame of reference, the frame stays and the facts are ignored.

Manjoo cites a study by Stanford professor Shanto Iyengar and Washington Post columnist Richard Morin who tested Republicans and Democrats’ reactions to a list of headlines covering topics ranging from politics and race to travel and sports. The headlines were randomly paired with one of four logos: BBC, CNN, Fox and NPR. Not only did the Fox logo triple Republicans’ interest in stories about politics and Iraq, it even increased Republicans' interest (and decreased Democrats' interest!) in headlines about travel and sports.

The rise of the internet and the disintermediation of the mainstream media were supposed to help us get to the truth faster than ever before. But when people choose to read only the news that supports their ingrained prejudices, those of us who are responsible for public relations and brand management must recognize that we are facing a bigger challenge than ever before.

An Unintended Side Effect of the Subprime Fiasco

Since our public relations firm is based in New York — a world center for banking and financial services — we’re following the ins and outs of the subprime mortgage crisis with more than average interest interest. In fact, our president, Ken Makovsky, has written about it on his My Three Cents blog.

One of the more interesting side effects of the scandal was reported by Bloomberg News: “Judges in at least five states have stopped foreclosure proceedings because the banks that pool mortgages into securities and the companies that collect monthly payments haven't been able to prove they own the mortgages.”

The article goes on to report that a man named Joe Lents in Boca Raton, FL, hasn’t made a single payment on his $1.5 million mortgage since 2002, when his mortgage bank, Washington Mutual, first tried to foreclose on his home. The efforts ceased when WaMu couldn’t find the paperwork!

“If you're going to take my house away from me, you better own the note,” said Lents.

He’s one of the lucky ones. Millions of other subprime homeowners are on the verge of bankruptcy and foreclosure. If the banking industry doesn’t address its own shortcomings, it better be ready for the inevitability of regulatory intervention if we want to protect consumers and the U.S. economy.