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Category: Money
Why I'll have a Moustache this November
Navigating the Grey: The Promise of a Future for Newspapers
Classified advertisements began moving online 15 years ago, blunting revenues and tolling the bellicose fog horn of “caution ahead” for newspapers. The warnings went unheeded, and with the development of online readership, salvaging the wreck from sites like Craigslist was abandoned.
Over a decade later, the same is happening with advertising. Newspapers are seeing revenues tumble like a rag doll down a jagged cliff with nary a carabinered rescuer in sight.
Online newspapers failed in classifieds. Can they hold onto advertising?
Brian Tierney, publisher of the Philadelphia Inquirer and Daily News, explains it’s not the journalistic side but the business side of newspapers burdening the business model. Content is fine, but there are less salespeople with less motivation to bake the bread that nourishes papers.
An article by former New York Times executive editor Howell Raines suggests no one wants to hustle the old-fashioned way. Whereas Citizen Joes could earn their terry-cloth bathrobes and heated marble floors selling ad space, the crease in the flow of cash has deepened, forcing conception of new ideas for online newspaper revenue.
Tierney’s is to position Philly.com as the leader in short-form video news for the city:
This means that instead of asking print reporters to blog around the clock, producing repetitious versions of the same story, Tierney wants to “monetize” the most common surplus commodity in any newsroom: the reporters’ nonstop gabbing about local politics, hometown sports, business, movies, wine, car prices, undiscovered restaurants, and so on.
If this becomes the way it is, how will it affect those in communication businesses biased toward seeking publicity for clients? A litany of questions ensue…
(photo credit: Rigmarole)
Political Answers as PR
One of my personal hero role-models, Warren Buffett, addressed a Clinton fundraiser about the inequitable tax scheme in America and pointed out that his secretary pays a higher percentage of income tax that he does. Being a believer in social justice, Buffett has no problem paying taxes to help the “less lucky.”
Of course, this seems like an important issue that one expects a Democratic presidential candidate to address, and now others are getting on the bandwagon:
Lloyd Blankfein, the chief executive of Goldman Sachs, acknowledged in an interview yesterday that there were justified concerns about the huge profits generated by private equity firms and that he worried that income inequality was “poisoning democracy”. He also said that he would be voting for the Democrat candidate at the next election. Mr Blankfein is the highest-paid executive on Wall Street, earning $54 million last year.
This is an example of a political answer. Nowhere did Mr. Blankfein suggest that he would actually support a bill that would increase taxes for the uber-rich. This is because he himself is a beneficiary of the status quo, but more importantly, his clients and the clients of the organizations with which he works are beneficiaries of the current system.
Don’t get me wrong. I’m all for trying to be the richest you can be, and I’m one of the cheapest people you’ll meet. But, this shows that Blankfein chose his words well without either opposing the idea or committing himself and his organization to something that wouldn’t jibe well with clients.
Right now, I’m finishing off Confessions of a Street Addict by Jim Cramer. “Mad Money” Jim chronicles how he dropped $7 million for a bunch of junior guys at Goldman to underwrite TheStreet.com’s IPO, and I get the impression that Wall Street is full of Gordon Gekkos platinum-plating every deal signed. So, I wouldn’t put it past Blankfein to be one of the most ardent opponents of a tax equality scheme if one were to ever come to fruition.
However, I’m also not saying political answers are wrong. There are many instances when committing oneself to a task and not carrying it out at a later date would prove disastrous–thus the typical “non-answers” that politicians use.
For an excellent resource, I recommend The Intelligent Investor by Buffett’s mentor Benjamin Graham. It’s a tome, but if you work your way through, you’re bound to feel more comfortable about stocks and investing.
The Mafia and Bad PR
As Tony Soprano tucked himself into bed last night with his finger on the trigger of an AR-10, fans like me readied themselves for the end. Whether Tony lives or dies in the final episode next Sunday, I think fans will peacefully accept the show’s last rites from series creator David Chase.
But the offspring of Canada’s real-life Tony Soprano, convited boss Vito Rizzuto, aren’t so accepting of how their own family has been portrayed in the media. They say that because of stories in the National Post and a book entitled The Sixth Family, they are being turned down by banks with which they want to open investment accounts.
The two siblings, Bettina and Leonardo, both lawyers, are suing the Post as well as the book’s publishers. So, why am I writing about this?
Well, according to Guy Kawasaki, there is no such thing as bad PR:
“A mere 2 days went by before Truemors was called the “worst website ever” by the Inquirer…Thank you God for the Inquirer because it caused 246,210 page views. Yes indeed, there’s no such thing as bad PR.”
I wonder what the Rizzutos would say to that? Or, is Guy only referring to DIY web startups?
What about the banks themselves? Joseph Farruggia, their financial advisor at National Bank moved to TD in December and has since been told to cut the Rizzutos loose. The same happened with Philippe Doucet at RBC Dominion Securities who initially agreed to take the brother and sister’s joint account on but was later told by RBC to refuse the accounts for no apparent reason. Now, I may have worked at Scotiabank for only a mere couple months, but we were told that a reason must be provided for denying anyone an account. I’ll keep on the lookout for the banks’ responses.
Correction: In my last post, I didn’t read the PR Week article to which I was referring close enough, and it appears that while PhRMA has issued a statement, Merk, GlaxoSmithKline, and Pfizer are MIA in responding to interviews on the subject of ‘Sicko’. I think they could have the wait-and-see attitude, or they might be attempting to decrease the value of Moore’s message by considering the film not important enough to validate with a response. Personally, I see this as a chance for competitors to become allies and create a united front against what public ill will may be produced by the film and Weinstein’s campaign.
Health & Fitness PR
Something about me: I’m a gym rat. I spend at least 5 hours a week in the gym. It’s my meditation, my religion. I spend more hours per week in front of a computer, so why not?
A friend mentioned that I should apply my in-progress communication skills to a career in fitness or healthcare. Seeing as we don’t have widespread private health services in Canada, and I’m not terribly interested in working for the government, I hadn’t really considered it. But, let’s give it a shot for now:
At the end of June, the Moore-doc Sicko is expected to be released. I wonder what, if anything, drug companies, insurers, HMOs etc etc. will do on the PR/crisis front. Would it be worthwhile to lend the movie (I wouldn’t classify his brand products as documentaries) credence by pre-empting any slanderous content, or should the healthcare AORs address issues as they are brought up by customers/users on a case-by-case basis?
I found this quote of Michael’s in a Time interview:
“…what’s even more broken is the fact that our Congress and White House are bought and paid for by [the insurance and pharmaceutical] industries, which rival the oil industry in terms of money and influence.”
I think Moore makes this argument in each of his films, but uses the current subject of his study as the influencing force on government. We’ll see how it turns out.
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McDonald’s taps ‘Shrek’ for kids nutrition effort
“The global effort, launched May 11 in Chicago, highlights a Happy Meal featuring Chicken McNuggets, Apple Dippers fresh fruit snacks, and a Shrek character toy, as well as more parent-focused menu items, such as salads and chicken sandwiches.”
Moreover, Shrek has teamed with the Ad Council for spots about being active for at least an hour a day:
“The new PSAs, using the slogan “Be a Player: Get up and play an hour a day,” urge all children to engage in physical activity. The PSAs will complement the current “Can your food do that?” PSAs which promote the benefits of eating healthy foods.”
[youtube=http://www.youtube.com/watch?v=W5lbIKcPhdQ]
So, if you’re not a cynic, you can stretch your imagination to convince yourself that McDonald’s apple slices and encouraging kids to be more active is at least a good thing.
But, can children consumers handle mixed messages?
Tickets in the City
Last Saturday, on a slightly cool spring evening, I visited our local rooftop patio pub, the Sticky Wicket, to catch up with a few friends. I had an essay to write the next day and wasn’t going to drink, so I drove downtown. Parking on the street is free after 6pm, and I thought the same went for the City of Victoria parkades. After all, the gate was up.
A couple Diet Cokes and some man-gossip later, I bid my buddies goodnight only to find a parking ticket for $42.50 tucked neatly under my left windshield wiper. I was furious. The gate was up, and it was evening.
How can the City of Victoria do this to me? I wanted to blog about it and complain so the whole world would know, but this isn’t that kind of blog, and only three people read it.
Marketers always talk about incentives. “Pay early and get a value-added feature etc. etc.” Well, this ticket gave me the option of paying 15 bucks within 14 days. “Not bad,” I thought, “they obviously figured out that partial early payment is more successful than full non-payment.”
Still, I was mad. I’d have to stay late at work to make up for that ticket—really.
This morning, I called the City to complain, nicely. I told the woman that the gate was up, suggesting to me that parking was free after 6pm.
I was wrong. They required their pound of flesh: $2. Okay, it was more like a gram.
The woman kindly took my plate number, came back on the phone, and said: “Just come by either today or tomorrow, ask for Carrie, and I’ll get it reduced to two bucks for ya.”
Incentives, indeed. With no outstanding tickets, they knew I was a good kid. But why did they really reduce it? Because I’m a loyal customer? It can’t be.
While Robbins Parking does hold a portion of lots, their fines are steeper than the city’s. Logically, nonpayers would be attracted to Victoria’s cheaper lots. Also, the convenience of location outweighs who provides the service. In all, brand loyalty is not strong in the parking biz.
What is Victoria’s incentive to keep me, a tax-paying stiff, happy? So that I’ll park in their lots more often?
I’m not complaining, honest. Just puzzled.
Lessons:
1. If you don’t call, you’ll never know.
2. Complain nicely.
3. Pay up sucka!
Thomson and Reuters Together
Thomson agreed to a merger with Reuters, a deal valued at $17.2 billion. Thomson will control about 70% of the new company. The new head of Thomson-Reuters will be Tom Glocer, the current head of Reuters. From Wikipedia.
Although it is now headquartered in the US, somehow, I find it nice to see a Canadian founded company expand to compete with the likes of Bloomberg on a global scale.
Shel's SL Article in CW
I just finished reading Shel Holtz’ SL article for CW Magazine, the official publication of the IABC.
I haven’t been a regular listener of his podcast, so I don’t know if he’s mentioned this before, but it’s nice to see someone with a balanced take on SL.
As Shel writes: “It would be a mistake to assume this exchange of real-world currency is the driver behind the business rush into Second Life. In fact, few of the businesses that have set up shop in-world are selling anything other than their brand identities.”
Of course, he’s right. Coca-Cola are not going to attempt to make any money selling virtual do-dads in SL, but they are going to brand that world just as they’ve branded this world.
I must admit, I am a new, if hesitant member of SL. A couple of weeks ago, I fired up my rusty old desktop computer with enough graphics power to run SL and Samuelson Petrov was born. You can most-likely find me hanging around Crayonville Island. An introduction to some Canadian PR haunts would be great, so add me as a friend in-world.
I’m going to try to make the 6am PST Coffee with Crayon meeting on Thursday, so–to my 3 readers–give me a shout if you’re there and let me know who you are.
[youtube=http://www.youtube.com/watch?v=dwYHAy1aFCU]
Dry-erase Websites
By now, many have come to the realization that a visually pimped-out website is not necessarily the route to take to create a buzz around an idea or product online. Why max out your budget when just the opposite can get people talking for a fraction of the cost?
Miranda July, author and performance artist, has created a completely linear site composed only of photographs. No blog, news, or feeds. Imagine telling a client that, in addition to the standard domain and server costs, the only other items on their invoice would be a white board marker–and your fee, of course.
About Me
Hi, I'm Michael (of Vancouver, B.C.). Welcome to my blog. Read more about me.