Prsa Cherenson Look Back And Ahead


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Prsa Cherenson Look Back And Ahead

  1. 1. PUBLIC RELATIONS – A 2 ND GENERATION PERSPECTIVE Michael Cherenson, APR Chair-Elect Public Relations Society of America
  2. 2. <ul><li>First chair to be a second generation PR counselor and have a life-long association with the profession. </li></ul>
  3. 3. New York Times August 9, 1929 1929
  4. 4. <ul><li>1947 </li></ul><ul><li>Where is the Party? </li></ul><ul><li>1 st Public Relations Program </li></ul>Almost at the same time…. Nat'l Association of Publicity Directors (East Coast) and American Council of Public Relations (West Coast) met on August 7, 1947 to discuss a merger; corporate charter was granted in the state of New York for the Public Relations Society of America in 1948. 1947 1 st US Law School – 1780’s  American Bar -- 1878
  5. 5. <ul><li>“ I don’t know anything about public relations.” </li></ul><ul><li>“ Nonsense. You’ve got a freshly pressed suit and I presume you bathe daily. That’s all you need!” </li></ul>1956
  6. 6. April 4, 1968 – First PRSSA Chapters <ul><li>1 st PRSSA chapters. </li></ul><ul><li>9 schools. </li></ul><ul><li>2 PR courses (minimum). </li></ul><ul><li>196 PRSSA members. </li></ul>University of Florida  University of Houston  University of Maryland  Ohio State University  San Jose State College  University of Southern California  University of Texas at Austin  Utica College  West Virginia University. 1968
  7. 7. <ul><li>At first, it was: </li></ul><ul><li>“ Here’s the message, go deliver it.” </li></ul><ul><li>Then it became: </li></ul><ul><li>“ What should the message be?” </li></ul><ul><ul><li>Today, more and more, it’s: </li></ul></ul><ul><ul><li>“ What should we do ? </li></ul></ul>PUBLIC RELATIONS EVOLUTION Harold Burson
  8. 8. <ul><li>Professionalism </li></ul><ul><ul><ul><ul><li>Code of ethics, accreditation, certification </li></ul></ul></ul></ul><ul><li>Public Relations Business </li></ul><ul><ul><ul><ul><li>US Public Relations market = $4 billion (Veronis Suhler & Stevenson) </li></ul></ul></ul></ul><ul><ul><li>“ Value” of public relations </li></ul></ul><ul><ul><ul><ul><li>Leaders now recognize the importance of PR </li></ul></ul></ul></ul><ul><li>Globalization of PR </li></ul><ul><ul><ul><ul><li>Global public relations market = $6.5 billion, up 9% from 2005 (VS&S) </li></ul></ul></ul></ul><ul><li>Public Relations Education </li></ul><ul><ul><ul><ul><li>270 US Colleges offer PR curriculum; more than 285 PRSSA Chapters </li></ul></ul></ul></ul>PUBLIC RELATIONS EVOLUTION John Paluszek, APR, Fellow PRSA
  9. 11. FROM “NICE TO HAVE” TO “MUST HAVE”… <ul><li>The Council of PR Firms </li></ul><ul><ul><ul><ul><li>Another year of strong revenue growth. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>4 th consecutive of double-digit revenue growth </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Average growth among firms was 12.3%. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>2008 -- 84% of firms projecting top line growth with avg. rate of 10%. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>80% of firms are hiring </li></ul></ul></ul></ul><ul><ul><ul><ul><li>57% of firms added staff in ‘07 </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Expect biggest gains in consumer marketing & online media </li></ul></ul></ul></ul><ul><ul><ul><ul><li>In Q1 2008, firms averaged 7.5% increase </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>68% of those firms expect revenues to increase. </li></ul></ul></ul></ul></ul><ul><li>Veronis Suhler Stephenson (VSS). </li></ul><ul><ul><ul><ul><li>11.8% growth in 2007, 9.9 % in 2008, with a compound growth of 10.3% through 2011. </li></ul></ul></ul></ul>
  10. 12. PR Firms Weigh in on Business Prospects for Second Half of ‘08 While the majority of respondents were unsure how the year would ultimately unfold, these data suggests that the PR industry's overall view on the business environment is optimistic . Based on conversations you have had with clients, what is your feeling about the business environment in the second half of '08? Council of Public Relations Firms
  11. 13. Aug. 5, 2008 CAGR is Compound Annual Growth Rate
  12. 14. Public relations is on the rise. 2007 was strong year, and business continues to thrive despite a slowing global economy. <ul><li>“ Communications” is growing in strategic importance for all types of organizations. </li></ul><ul><li>Messaging about an organization can no longer be controlled exclusively from within. </li></ul><ul><li>Public relations is proving an effective tool and therefore taking share away from other marketing and communications disciplines. </li></ul>
  13. 15. Recession Resistant? <ul><li>Greater stability , normalization, and modest growth </li></ul><ul><li>Profession is stronger than ever before, and perhaps more recession resistant (though not recession proof) </li></ul><ul><li>In 2007, budgets increased on average by 7% in all segments. </li></ul><ul><li>Average budget in the health care and manufacturing reported substantial increases -- but technology respondents reported a significant drop. </li></ul><ul><li>Not-for-profit organizations and government agencies do not expect budget increases in 2008. </li></ul>
  14. 16. Value of PR – The C-Suite <ul><li>64% report to C-Suite with 23% reporting to marketing and the remainder reporting to human resources, legal, finance and strategic planning. </li></ul><ul><li>Among the largest public companies, 63% report to the C-Suite , but only 37% of respondents from private companies that size do. </li></ul><ul><li>Health Care, Manufacturing and Technology : A significant majority of all three categories report now to the C-Suite : health care (78%); manufacturing (64%); technology (57%). </li></ul><ul><li>A clear majority of respondents from not-for-profit organizations report to the C-Suite, as do 70% of government agency respondents. </li></ul>
  15. 19. Greatest Business Risks Source: Economist Intelligence Unit, “Reputation Risk of Risks,” 2005 Senior Executives
  16. 22. A Growing Community 22,000 + 9,000 = 31,000 + PRSA GROWTH
  17. 23. We’ve Come A Long Way ~ But Still Room <ul><li>84% of Business Executives & Congressional Staffers and 71% of general consumers say public relations professionals raise the awareness about important issues. </li></ul>85% of consumers and 67% of business leaders say public relations professionals sometimes take advantage of the media to present misleading information
  18. 24. Show me a PR person who is &quot;accurate&quot; and &quot;truthful,&quot; and I'll show you a PR person who is unemployed. PRSA CEO & Chair Jeffrey Julin Issues Video Response to CBS Legal Analyst Andrew Cohen
  19. 25. “ To be persuasive, we must be believable; to be believable we must be credible; to be credible, we must be truthful.” -- Edward R. Murrow ETHICS ARE ESSENTIAL
  20. 26. Today Growth in the technology, healthcare and corporate reputation sectors was particularly robust The biggest opportunity for future growth is in the digital communications sector , although PR agency principals also see increased opportunities in corporate reputation management Paul Holmes
  21. 27. <ul><li>New research from Clash-Media shows that over 50 percent of an average marketer's budget is now spent online. </li></ul>
  22. 28. NEW MEDIA MODEL (Relationships- Active) TRADITIONAL MEDIA MODEL (Message Control - Passive)
  23. 29. Of about 112.5 million blogs on the Web, almost 5,000 are corporate, according to Technorati . <ul><li>start conversations </li></ul><ul><li>be a part of a virtual community </li></ul><ul><li>talk directly to customers </li></ul><ul><li>give a personal touch to a big business </li></ul>
  24. 30. “ Infodemic” <ul><li>A complex phenomenon caused by the interaction of mainstream media, specialist media and internet sites ; and “informal” media , which is to say wireless phones, text messaging, pagers, faxes and e-mail, all transmitting some combination of fact, rumor, interpretation and propaganda . </li></ul><ul><li>~ David Rothkopf </li></ul><ul><li>Chairman and CEO of The Rothkopf Group </li></ul>
  25. 31. <ul><li>“ The newest computer can merely compound, at speed , the oldest problem in the relations between human beings, and in the end the communicator will be confronted with the old problem, of what to say and how to say it.” </li></ul><ul><li>~ Edward R. Murrow </li></ul>
  26. 32. Our Future <ul><li>Industrial Age. </li></ul><ul><li>Information Age. </li></ul><ul><li>Storytelling ( Sharing words, images and sounds in a compelling way.) </li></ul>
  27. 33. PUBLIC RELATIONS WILL ALWAYS BE… <ul><li>Antenna. </li></ul><ul><li>Conscience. </li></ul><ul><li>Voice. </li></ul>
  28. 34. <ul><li>“ What they know, you can learn.  What you know, they can never learn.” </li></ul><ul><li>------ </li></ul><ul><li>“ People listen through their stomachs.” </li></ul>
  29. 35. Your role <ul><li>Lead people into the future (Looking long-term). </li></ul><ul><li>The Keeper of the DNA (authenticity). </li></ul><ul><li>Trust Builder (and it’s twin Ethics). </li></ul><ul><li>Foster collaboration. </li></ul><ul><li>Share knowledge. </li></ul><ul><li>Broker of idea. </li></ul><ul><li>Spark action. </li></ul><ul><li>Say no. </li></ul><ul><li>Re-tool </li></ul>
  30. 36. Enter to Learn.
  31. 37. Knowledge is Power.
  32. 38. Go Forth and Serve.
  33. 39. <ul><li>BE A LEADER. </li></ul>
  34. 40. Michael Cherenson, APR Chair-Elect, Public Relations Society of America Executive Vice President, Success Communications Group, Parsippany, NJ 973-597-5104 [email_address]