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BP vs. The Internet




    Anatomy of a PR War
                          by Angela Natividad
Summary

The Event




BP and Crowdsourcing
The Analysis
Crisis Management Examples
Conclusion
20 April 2010
The Deepwater Horizon Explosion occurs, killing 11 workers.




       The affected well freely gushes oil into the sea.
A BP press release promises to “mobilize” resources.
  By 30 April, 10 days later, its response is branded “inadequate.”




What follows are BP’s attempts to control the story of
what is happening ... as users create their own version.
BP on




For BP, Twitter presented an ideal way to deliver
timely updates on reparation, resources, apologies
and warnings to users in the area.
...................................................................................................
Subscriptions to the official @BP_America account doubled in 15 days,
hitting 4476 followers as of 4 May, an average rise of 80-200 new
followers daily.

                                                          @BP_America increased
                                                          activity threefold (totaling 9
                                                          tweets per day).
...................................................................................................

                   Users grew dissatisfied with BP’s updates.


“The tweets are overwhelmingly one-way
announcements with only a few
@replies (less than 1% of the total, that is, only
two). Perhaps not surprisingly, the account
retweets @oil_spill_2010.”
                   - The Moderate Voice blog




@Oil_Spill_2010 began as an anonymous effort to provide useful
information on the spill. Today it is updated by the Joint Information
Center Staff.

BP’s frequent retweets of this account suggests @Oil_Spill_2010 was
better equipped to serve users.

This behavior suggested BP had something to hide.
...................................................................................................

        Twitter rebellion begins. Fake accounts and an ironic
        #bpcares hashtag spread vitriole about BP’s social mishandling.




Left image credit:TheModerateVoice.com
...................................................................................................

   The most popular spoof account launches 19 May: In eight days,
   @BPGlobalPR has 60,000 followers vs. @BP_America’s 7200.




                                                                            It also launches a T-shirt
                                                                          line! Proceeds go to charity.
Left image credit:TheModerateVoice.com
...................................................................................................

24 May: BP tells AdAge it doesn’t care about @BPGlobalPR.




                                             BP’s spokesperson isn’t sure if the
                                             company has taken action or not.




                                              He’s also not a Twitter user.
...................................................................................................

    27 May: Fans of @BPGlobalPR grow bored with @BP_America.
    They hack it.




        “
BP catches the hack. Moments later, @BP_America goes back to
tweeting “progress” on clean-up efforts.                                                               ”
BP on




In May, BP began broadcasting aggressively on
YouTube - the perfect medium for sharing live
efforts, letting affected Gulf inhabitants tell
stories, and providing safety tips.
.......................................................................................................

BP kicks off a “satellite media tour” on 27 May. Videos that
follow include community outreach interviews, environment and
wildlife checkups, status updates.
.......................................................................................................

                      Response is not positive.


                                                                  Of the few comments, no
                                                                  one says anything nice.




Users are displeased by these
inauthentic gestures of
transparency. The videos feel
heavily-produced, with emotion
and negative truths left out.
.......................................................................................................

          BP spoofs start flooding YouTube.




Also popular are videos of animals
that are sick, or covered in oil.
.......................................................................................................


30 May: After a long silence, Tony Hayward appears on TV.




    His message to mankind: “I’d like my life back.”
.......................................................................................................

3 June: BP rolls out first TV ad with Hayward and a more
scripted appearance. It is seen as “backpedaling” and an attempt to
displace blame.
.......................................................................................................

Mid-June: after his repeated attempts to reach them, BP takes
advice from ... Kevin Costner!
.......................................................................................................


The spoof video that follows compares BP’s treatment of the oil spill to its
hypothetical treatment of a coffee spill. Kevin Costner also comes to the rescue.




                                                     “BP Spills Coffee” hosted 11 million
                                                     views from June-September.
                                                     BP’s YouTube page of 100+ videos
                                                     saw 4.6 million views total.
BP and Crowdsourcing




The power of the crowd presented a special
opportunity. Everyone was connected, concerned
and eager to help solve BP’s problem. It had a world
of volunteers, intellectual resources and creative
minds at its disposal. If only they had listened.
  Photo credit: James Cridland
...........................................................................................

May’s end: crowdsourced competitions to
 ironically rebrand BP appear on the ‘net.
...........................................................................................




Contributions are in the thousands. All are negative. Bloggers showcase the best ones.
...........................................................................................

Profiting from the trend, Mark Skwarek and Joseph Hocking build a mobile
app that uses augmented reality to let you “rebrand” BP’s logo in the real
world.




      It is featured in Wired as a model for inventive use of AR.
...........................................................................................

But it isn’t all bad. In June, InnoCentive informs BP of its plans to
launch a contest seeking solutions for the oil leak.




                                                        InnoCentive helps R&D
                                                        departments solve problems
                                                        via crowdsourcing. Its
                                                        network includes 200,000
                                                        engineers worldwide.

                                                        It offers BP the
                                                        solutions it receives
                                                        for free.
...........................................................................................

BP refuses to look at the solutions. InnoCentive blogs about it.




 “
                                                                                                ”
...........................................................................................

      But what if somebody did have a solution?




               ➡
The best place to share it was on a phone number buried in
BP’s contact list. Users could record a message on a machine.

A decided fail.
June-July: Failed attempts to seal the damaged well, and equally poor attempts
to sooth the public, aggravate users further. Scandals circulate.
Among reporters seeking access to the beach, and being refused, is CNN’s
Anderson Cooper. He gives damning analysis of BP’s failure to be
transparent, comparing it with a revocation of First Amendment rights.
10 June: Actor Edward James Olmos manages to get where others
can’t, and launches a short film.




            The film includes interviews with affected people on the Gulf
            of Mexico. It depicts humanity in devastation and fear.
BP fights back ... with ads and a human sacrifice.


In June it spends $3.59 million on Google ads, making it one of
Google’s top clients.
                                     In total, $93 million is spent
                                     on TV, newspaper and
                                     other ads “to counter images
                                     of the mounting disaster”
                                     between April and July,
                                     according to The LA Times.




 On June 21, it replaces Tony Hayward with Robert Dudley.
Response to the ad spend is generally negative.

“It feels like BP is overdoing it” with its advertising, said Rep.
Kathy Castor (D-Fla.), who asked for the spending figure. “It’s
really making people angry. Every day you get up and see these
full-page ads in every newspaper and the TV ads. It’s really
ticking people off.”
                                “While BP’s advertising campaign
                                ramped up, businesses and the gulf
                                communities struggled to deal with the
                                costs of the disaster,” Castor said.
                                “While BP certainly has the right to
                                advertise, its approach has been
                                insensitive to the taxpayers and business
                                owners harmed by the Deepwater
                                Horizon blowout.”

                                                                — The LA Times
                                      Image credit:Trucknroll
By August, BP station owners consider rebranding stores.




                            Story: Marketwatch
19 September: the well is close to being sealed for good, but BP’s
  communications remain much the same.

Unreliable live feeds.
                                   Twitter points to Facebook, which points to...




                                                ...an outsourced claims
                                                service, more PR
                                                videos.
BP: The Analysis
BP: The Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .




           The cost of not getting it right
          Loss of stock value estimated at $70 billion as of June 2010.
          BP plummets from Interbrand’s Top 100 brands.
          Company dividend estimated to be 65% lower in 2011.
          This does not include reparation, legal fees (including
          punitive damages), $25-30 million for each state
          tourism board affected, a 10% rise in upstream
          production costs (totaling an estimated $280 million
          per year) and the $20 billion claims fund.




Production cost figures, Reuters:
BP: The Analysis   ......................................................................................................


     Online strategy-wise, BP’s bases were covered:

     Gulf of Mexico Response subsite
     YouTube channel
     FlickR and Facebook presence
     Twitter page
     Visibility in top 1000 Google search
      terms related to “oil spill”



 What went wrong?

 BP didn’t provide what people needed: a sincere apology, a sense it
 understood the horror of what it did, and a conviction to make
 things right.
 What follows: a few examples of what those three things look like.
                                                               Image credit: BP America
BP: Crisis Management Examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                          Example 1: Domino’s Pizza, Service in Bad Taste




    2009: 2 Domino’s workers filmed themselves abusing food before serving it.
    CEO Patrick Doyle apologised quickly on YouTube: no music, no scripted feel,
    no fancy camera angles.
    In 2010 he was featured in Domino’s Pizza Turnaround, an campaign to
    change how the company’s pizza is made. Because their embarrassment was
    obvious and efforts to change were sincere, the turnaround was well-received.
BP: Crisis Management Examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                          Example 2: Southwest Airlines, Too Pretty to Fly




   2008: Two girls ejected from a Southwest flight contacted media, saying they
   were “banned for life” for being “too pretty to fly.”

   Southwest quickly released a video explaining the situation: no one can be
   banned for life, and the girls were ejected for dangerous behavior in-flight. The
   calm, simple and honest approach changed the media’s spin on the story.
BP: Crisis Management Examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
                    Example 3: Johnson & Johnson, The Tylenol Murders




   1982: Seven Chicagoans died after swallowing Tylenol capsules filled with
   cyanide. Someone was stealing bottles from stores, poisoning them and
   putting them back.

   Tylenol parent Johnson & Johnson became the largest advocate for consumers
   discovering the threat. In a week, it issued a nationwide recall of Tylenol
   products. When it learned only capsules were affected, it replaced them with
   tablets for free.
BP: Crisis Management Examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
   Johnson & Johnson, The Tylenol Murders (cont.)


   Warnings were given to distributors and
   hospitals. The public was offered a $100,000
   reward for details leading to arrest of a
   suspect. Bottles with tamper-proof packaging
   were developed and packaged with
   discounts.

   The Washington Post commended J&J for
   “effectively [demonstrating] how a major
   business ought to handle a disaster."
    Market share of Tylenol fell from 35% to 8%,
   then rebounded in 12 months. Several years
   later Tylenol was the top over-the-counter
   analgesic in the US, due in part to J&J’s
   swift response to a threat to
   customers.
BP: Crisis Management Examples   ..............................................................................

         What these successes have in common




         ✓Super-fast response
         ✓A candid, human feel
         ✓Efforts to put people first, brand image second
BP: Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

                       BP’s Mistake:
                       Underestimating the speed of an internet that defined the
                       narrative. BP believed that if it were present on all the right
                       social media, it wouldn’t truly have to change its formal, slow
                       and unapologetic PR approach.

                       The Truth:
                       When something bad happens, people don’t need your press
                       releases and slick videos. They must know you recognize the
                       consequences of your actions, and that you will be the
                       first resource they can turn to for help resolving
                       it.

                       You don’t need social media for that.
                       But it helps.
                       A lot.
BP vs The Internet

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BP vs The Internet

  • 1. BP vs. The Internet Anatomy of a PR War by Angela Natividad
  • 2. Summary The Event BP and Crowdsourcing The Analysis Crisis Management Examples Conclusion
  • 3. 20 April 2010 The Deepwater Horizon Explosion occurs, killing 11 workers. The affected well freely gushes oil into the sea.
  • 4. A BP press release promises to “mobilize” resources. By 30 April, 10 days later, its response is branded “inadequate.” What follows are BP’s attempts to control the story of what is happening ... as users create their own version.
  • 5. BP on For BP, Twitter presented an ideal way to deliver timely updates on reparation, resources, apologies and warnings to users in the area.
  • 6. ................................................................................................... Subscriptions to the official @BP_America account doubled in 15 days, hitting 4476 followers as of 4 May, an average rise of 80-200 new followers daily. @BP_America increased activity threefold (totaling 9 tweets per day).
  • 7. ................................................................................................... Users grew dissatisfied with BP’s updates. “The tweets are overwhelmingly one-way announcements with only a few @replies (less than 1% of the total, that is, only two). Perhaps not surprisingly, the account retweets @oil_spill_2010.” - The Moderate Voice blog @Oil_Spill_2010 began as an anonymous effort to provide useful information on the spill. Today it is updated by the Joint Information Center Staff. BP’s frequent retweets of this account suggests @Oil_Spill_2010 was better equipped to serve users. This behavior suggested BP had something to hide.
  • 8. ................................................................................................... Twitter rebellion begins. Fake accounts and an ironic #bpcares hashtag spread vitriole about BP’s social mishandling. Left image credit:TheModerateVoice.com
  • 9. ................................................................................................... The most popular spoof account launches 19 May: In eight days, @BPGlobalPR has 60,000 followers vs. @BP_America’s 7200. It also launches a T-shirt line! Proceeds go to charity. Left image credit:TheModerateVoice.com
  • 10. ................................................................................................... 24 May: BP tells AdAge it doesn’t care about @BPGlobalPR. BP’s spokesperson isn’t sure if the company has taken action or not. He’s also not a Twitter user.
  • 11. ................................................................................................... 27 May: Fans of @BPGlobalPR grow bored with @BP_America. They hack it. “ BP catches the hack. Moments later, @BP_America goes back to tweeting “progress” on clean-up efforts. ”
  • 12. BP on In May, BP began broadcasting aggressively on YouTube - the perfect medium for sharing live efforts, letting affected Gulf inhabitants tell stories, and providing safety tips.
  • 13. ....................................................................................................... BP kicks off a “satellite media tour” on 27 May. Videos that follow include community outreach interviews, environment and wildlife checkups, status updates.
  • 14. ....................................................................................................... Response is not positive. Of the few comments, no one says anything nice. Users are displeased by these inauthentic gestures of transparency. The videos feel heavily-produced, with emotion and negative truths left out.
  • 15. ....................................................................................................... BP spoofs start flooding YouTube. Also popular are videos of animals that are sick, or covered in oil.
  • 16. ....................................................................................................... 30 May: After a long silence, Tony Hayward appears on TV. His message to mankind: “I’d like my life back.”
  • 17. ....................................................................................................... 3 June: BP rolls out first TV ad with Hayward and a more scripted appearance. It is seen as “backpedaling” and an attempt to displace blame.
  • 19. ....................................................................................................... The spoof video that follows compares BP’s treatment of the oil spill to its hypothetical treatment of a coffee spill. Kevin Costner also comes to the rescue. “BP Spills Coffee” hosted 11 million views from June-September. BP’s YouTube page of 100+ videos saw 4.6 million views total.
  • 20. BP and Crowdsourcing The power of the crowd presented a special opportunity. Everyone was connected, concerned and eager to help solve BP’s problem. It had a world of volunteers, intellectual resources and creative minds at its disposal. If only they had listened. Photo credit: James Cridland
  • 23. ........................................................................................... Profiting from the trend, Mark Skwarek and Joseph Hocking build a mobile app that uses augmented reality to let you “rebrand” BP’s logo in the real world. It is featured in Wired as a model for inventive use of AR.
  • 24. ........................................................................................... But it isn’t all bad. In June, InnoCentive informs BP of its plans to launch a contest seeking solutions for the oil leak. InnoCentive helps R&D departments solve problems via crowdsourcing. Its network includes 200,000 engineers worldwide. It offers BP the solutions it receives for free.
  • 26. ........................................................................................... But what if somebody did have a solution? ➡ The best place to share it was on a phone number buried in BP’s contact list. Users could record a message on a machine. A decided fail.
  • 27. June-July: Failed attempts to seal the damaged well, and equally poor attempts to sooth the public, aggravate users further. Scandals circulate.
  • 28. Among reporters seeking access to the beach, and being refused, is CNN’s Anderson Cooper. He gives damning analysis of BP’s failure to be transparent, comparing it with a revocation of First Amendment rights.
  • 29. 10 June: Actor Edward James Olmos manages to get where others can’t, and launches a short film. The film includes interviews with affected people on the Gulf of Mexico. It depicts humanity in devastation and fear.
  • 30. BP fights back ... with ads and a human sacrifice. In June it spends $3.59 million on Google ads, making it one of Google’s top clients. In total, $93 million is spent on TV, newspaper and other ads “to counter images of the mounting disaster” between April and July, according to The LA Times. On June 21, it replaces Tony Hayward with Robert Dudley.
  • 31. Response to the ad spend is generally negative. “It feels like BP is overdoing it” with its advertising, said Rep. Kathy Castor (D-Fla.), who asked for the spending figure. “It’s really making people angry. Every day you get up and see these full-page ads in every newspaper and the TV ads. It’s really ticking people off.” “While BP’s advertising campaign ramped up, businesses and the gulf communities struggled to deal with the costs of the disaster,” Castor said. “While BP certainly has the right to advertise, its approach has been insensitive to the taxpayers and business owners harmed by the Deepwater Horizon blowout.” — The LA Times Image credit:Trucknroll
  • 32. By August, BP station owners consider rebranding stores. Story: Marketwatch
  • 33. 19 September: the well is close to being sealed for good, but BP’s communications remain much the same. Unreliable live feeds. Twitter points to Facebook, which points to... ...an outsourced claims service, more PR videos.
  • 35. BP: The Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The cost of not getting it right Loss of stock value estimated at $70 billion as of June 2010. BP plummets from Interbrand’s Top 100 brands. Company dividend estimated to be 65% lower in 2011. This does not include reparation, legal fees (including punitive damages), $25-30 million for each state tourism board affected, a 10% rise in upstream production costs (totaling an estimated $280 million per year) and the $20 billion claims fund. Production cost figures, Reuters:
  • 36. BP: The Analysis ...................................................................................................... Online strategy-wise, BP’s bases were covered: Gulf of Mexico Response subsite YouTube channel FlickR and Facebook presence Twitter page Visibility in top 1000 Google search terms related to “oil spill” What went wrong? BP didn’t provide what people needed: a sincere apology, a sense it understood the horror of what it did, and a conviction to make things right. What follows: a few examples of what those three things look like. Image credit: BP America
  • 37. BP: Crisis Management Examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Example 1: Domino’s Pizza, Service in Bad Taste 2009: 2 Domino’s workers filmed themselves abusing food before serving it. CEO Patrick Doyle apologised quickly on YouTube: no music, no scripted feel, no fancy camera angles. In 2010 he was featured in Domino’s Pizza Turnaround, an campaign to change how the company’s pizza is made. Because their embarrassment was obvious and efforts to change were sincere, the turnaround was well-received.
  • 38. BP: Crisis Management Examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Example 2: Southwest Airlines, Too Pretty to Fly 2008: Two girls ejected from a Southwest flight contacted media, saying they were “banned for life” for being “too pretty to fly.” Southwest quickly released a video explaining the situation: no one can be banned for life, and the girls were ejected for dangerous behavior in-flight. The calm, simple and honest approach changed the media’s spin on the story.
  • 39. BP: Crisis Management Examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Example 3: Johnson & Johnson, The Tylenol Murders 1982: Seven Chicagoans died after swallowing Tylenol capsules filled with cyanide. Someone was stealing bottles from stores, poisoning them and putting them back. Tylenol parent Johnson & Johnson became the largest advocate for consumers discovering the threat. In a week, it issued a nationwide recall of Tylenol products. When it learned only capsules were affected, it replaced them with tablets for free.
  • 40. BP: Crisis Management Examples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Johnson & Johnson, The Tylenol Murders (cont.) Warnings were given to distributors and hospitals. The public was offered a $100,000 reward for details leading to arrest of a suspect. Bottles with tamper-proof packaging were developed and packaged with discounts. The Washington Post commended J&J for “effectively [demonstrating] how a major business ought to handle a disaster." Market share of Tylenol fell from 35% to 8%, then rebounded in 12 months. Several years later Tylenol was the top over-the-counter analgesic in the US, due in part to J&J’s swift response to a threat to customers.
  • 41. BP: Crisis Management Examples .............................................................................. What these successes have in common ✓Super-fast response ✓A candid, human feel ✓Efforts to put people first, brand image second
  • 42. BP: Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BP’s Mistake: Underestimating the speed of an internet that defined the narrative. BP believed that if it were present on all the right social media, it wouldn’t truly have to change its formal, slow and unapologetic PR approach. The Truth: When something bad happens, people don’t need your press releases and slick videos. They must know you recognize the consequences of your actions, and that you will be the first resource they can turn to for help resolving it. You don’t need social media for that. But it helps. A lot.

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