PR Lessons to Be Learned from the Costa Concordia Trage

January 23, 2012 prnewsonline.com Issue 4 Vol. 68 ▶ Contents Crisis Management ▶Charting the Industry Reputation/Purchase Link 2 ▶Quick Study 2011 Revenue Up, Say Agencies 3 PR Lessons to Be Learned From ▶Case Study Horse Tweets Lift Breeders’ Cup 4 ▶Tip Sheet Define the News Yourself 8 The Costa Concordia Tragedy More premium content at PR News’ Subscriber Resource Center

The images conjured compari- come was not as extreme, yet for months during the BP oil keting company. Except that sons to April 15, 1912, when the impact of 11 people dead— disaster. In fact, this is a crisis the cruise industry rarely the supposedly unsinkable ship and 21 more still missing (at in relative proportion to that experiences an accident of this RMS Titanic struck an iceberg the time of this writing) after a incident, not because of a threat magnitude. and sank in the North Atlantic, ship accident in the year 2012 to the environment (although Because of the severity of killing 1,517 passengers. When has caused shock and disbelief at press time, the fuel aboard and the attention this crisis is the ship Costa Concordia ran among the public worldwide. the Concordia had still not getting, PR News takes a close aground on Jan. 13, 2012, just How could this happen? been removed), but because look at the PR aspects, with off the Italian island of Giglio Indeed, the image repeat- of the affect it will have on the expert insights from veteran in the Tyrrhenian Sea, the out- edly viewed around the world entire cruise industry. communications pros. of the Concordia half sub- “Like after an airline crash, merged on the rocks could be this will have a ripple effect,” TITANIC STRUGGLE (DID YOU KNOW?) compared to the underwater says Larry Berg, VP & GM of When the Concordia hit Seven Things You Will stream of gushing oil seen Valassis, a media and mar- Page 6 ▶ Learn in This Week’s Issue of PR News Mobile PR Digital PR 1. In 2009, 71% of Americans with mobile phones were tex- As Texting Moves From Simple Prompts to ting; in 2011 that figure rose to 78%. (p. 1) Bottom-Line Actions, R U Ready? 2. When consumers learn a product they’re about to buy Since smartphones are so ubiq- a powerful phase, says Marco In the last two years, carriers is made by a company they uitous, it might be easy for PR Veremis, co-founder and presi- streamlined their phone plans dislike, 40% of them won’t pur- pros to overlook mobile as a dent of Upstream, a mobile for consumers, while more chase the product. (p. 2) platform for creating aware- marketing company based in available bandwidth has made 3. Tech companies dominate the ness, driving donations and San Francisco and London. it easy for just about everyone Top 10 Corporate Reputation causing sales. But that would Texting used to be a prompting with a mobile phone to receive list defined by media coverage. be unfortunate. According to activity that was badly inte- more than a text-only SMS (p. 3) mobile experts, communica- grated with the next step—be message. MMS allows orga- 4. Leading up to the 2010 tions outreach in this area has it linking to a call center or nizations to send pictures, Breeders’ Cup, horse Zenyatta’s never been more fruitful, and Web site—says Veremis. This video, sound and text. “This is Twitter page drew 1,300 fol- will only get better. required some initiative on the akin to the evolution from the lowers in one month. (p. 5) Consider that texting has part of the customer. “Better black-and-white TV to 42-inch 5. The Financial Times estimates not seen a drop-off in usage. In technology has enabled a more plasmas,” says Citron. that the Costa Concordia acci- fact, the practice is growing. A seamless bond between the text However, it’s not all good. dent will cost Carnival Cruises Deloitte study released in Jan. and that next step,” he says. Because of the ease in sending $95 million. (p. 6) 2012 finds that in 2009 71% of Changes by mobile car- out mobile messages, the 6. An AMF Bowling Center Americans with mobile phones riers and the increased usage volume of texts has increased mobile campaign drew 28,000 were texting; that figure grew of MMS (multimedia message dramatically, says Veremis. new members. (p. 7) to 78% in 2011. And mobile service) have also caused the “This is reflected in low con- 7. If you’re new to New York online search is used by 46% of boom in mobile outreach, sumer response rates,” he says. City, beware of the Naked Americans, compared to 30% says James Citron, CEO of To combat these rates, large Cowboy. (p. 8) in 2009. Los Angeles-based mobile organizations are investing Indeed, texting is entering marketing company Mogreet. Page 7 ▶

ISSN 1546-0193 Editor, Scott Van Camp, 212.621.4693, [email protected] Bad Rep Makes Consumers Think Twice Editorial Director, Steve Goldstein, 212.621.4890, [email protected] Community Editor, Bill Miltenberg, An organization’s reputation company. “Consumers say vey’s question to consumers on 571.969.1422, [email protected] is firmly linked to product that if a company has a solid what sources were influential in Events & Special Projects Manager, Regina D’Alesio, 212.621.4940, [email protected] brand success, says Weber reputation for quality, ethical their perceptions of companies. Associate Editor, Sahil Patel, 212.621.4917 Shandwick’s January 2012 behavior,, they expect the same Word of mouth topped the [email protected] Intern, Marly Zimmerman, mzimmerman@ study, “The Company Behind care will go into the product list, followed by online reviews accessintel.com the Brand: In Reputation We they are considering,” says and online search. “Companies Director of Marketing & Event Logistics, Kate Schaeffer, 301.354.2303, [email protected] Trust.” Matheis. should understand that the Associate Publisher and Brand Director, The survey of 1,375 con- balance of influence might be PR News Group, Amy Jefferies, 301.354.1699 [email protected] sumers, and 474 senior execu- INFORMED PUBLIC shifting, where online reviews Art Director, Steve Olson tives in companies with revenue The study, continues Matheis, are gaining more prominence,” SVP/Group Publisher, Diane Schwartz 212.621.4964, [email protected] of $500 million or more finds highlights just how informed says Matheis. Division President, Heather Farley that consumers are wary of and how much scrutiny con- Above all, the Weber President & CEO, Don Pazour buying products from disrepu- sumers place on company Shandwick survey shows table corporate brands: 40% of behavior today. “They are not that consumers are firmly in PR News ADVISORY BOARD Paul A. Argenti - Tuck School of Business consumers do not purchase the just bystanders in the market- charge—a fact that communi- Ned Barnett - Barnett Marketing Communications PRN Neal Cohen - APCO product when there is a discon- place, but are active and dis- cators shouldn’t forget. Carol Cone - Edelman nect between the product brand cerning buyers,” she says. Peter Debreceny - Gagen MacDonald Mike Herman - Communication Sciences and the corporate brand (see So how can companies [Editor’s Note: For more articles Laura Kane - Aflac Michael McDougall - McDougall Travers Collins details in the chart). avoid this reputation/brand on reputation, visit PR News’ Larry Parnell - George Washington University Mike Paul - MGP & Associates PR While this finding should disconnect? Kucharski says a Subscriber Resource Center: Deborah Radman - Senior PR Consultant Brenda C. Siler - Best Communication Strategies be no surprise to communica- good reputation starts with prnewsonline.com/subscriber_ Helene Solomon - Solomon McCown & Co. tors, it is important data to “acts that are in the best inter- resources.html.] Mark Weiner - PRIME Research PR News BOARD OF CONTRIBUTORS take upstairs to the C-suite ests of the audiences important Dave Armon - Scratch Music Group to emphasize the impor- to the company—customers, Andy Gilman - CommCore Consulting Bruce Jeffries-Fox - Jeffries-Fox Associates tance of reputation protec- employees and the community.” CONTACT: Angela Jeffrey - Member, IPR Commission Richard Laermer - RLM Public Relations tion and enhancement, says That’s what gives PR something Matt Kucharski, mkucharski@ Richard Levick - Levick Strategic Comms Ian Lipner - Lewis PR/YoungPRpros Matt Kucharski, executive VP to talk about, he says. padillaspeer.com; Ann Matheis, Katie Paine - KDPaine & Partners Rodger Roeser - The Eisen Agency at PR agency Padilla Speer Matheis points to the sur- [email protected]. Lou Thompson - Kalorama Partners Beardsley. Reid Walker - T-Mobile Tom Martin - College of Charleston This disconnect has been Group Subscriptions - Kate Schaeffer, prevalent in the B2B space, Consumers Say No to Purchases From 301.354.2303; [email protected] where customers don’t want to Disreputable Corporations Additional Copies & Article Reprints - buy “bet your company” prod- Contact Wright’s Media, 877-652-5295; [email protected] ucts and services from a sup- plier with a shady background, What actions did you take when you discovered a product says Kucharski. “Now it’s you were about to buy was made by a company you dislike? certainly true in the B2C world Published weekly by Access Intelligence, LLC 4 Choke Cherry Road, Rockville, MD 20850 as well, driven both by trans- Stopped buying the product 40% Client Services: parency inherent in today’s Searched online to ﬁnd what other products the Phone: 888.707.5814 • Fax: 301.309.3847 34% e-mail: [email protected] social media driven society and company makes New York Editorial Office: by the social activism of the Changed my opinion to be more positive about 25% 88 Pine Street, Suite 510, New York, NY 10005 Generation Y buyer.” the company Phone: 212.621.4890 • Fax: 212.621.4879 Kucharski says the validity Continued to buy the product 20% Subscription/Renewal Coupon of the findings is proven again I want to subscribe to PR News for $797/ ❍● Shared or forwarded information about the company 19% year or $1,494/2 years, and receive weekly and again—from gas sta- issues plus unlimited access to the online tion closings after BP’s Gulf premium content and archives. Told others not to buy the product 18% Name:______of Mexico disaster, to a drop Title:______in Toyota car sales after its Made negative comments about the product or 17% Organization:______company to others Address:______numerous recalls. Posted a comment online about City:______State:_____ ZIP:______What is surprising, says 15% Phone: ______Fax:______the product or company Email:______Ann Matheis, brand director None of the above 4% ❍● I want to renew my $797 or $1,494 subscrip- for Schlage security systems tion to PR News. My account number is: and locks, is the extent of emo- ______Charge my Card No.______tion and intensity that surfaced When consumers find out that a product they like is made by a com- Exp.______Signature:______from consumers’ points of pany they dislike, they respond. Weber Shandwick’s “The Company ❑■ Check enclosed (Payable to Access Intelligence, LLC) In MD add 5% tax. Postage and processing add/yr: view: When they purchase a Behind the Brand: In Repution We Trust” study shows that a good $20 within U.S., $99 outside U.S. Fax to 301.309.3847 product, they equate that action percentage of consumers will simply not buy the product. For subscribers only: full access to PR News with investing in the parent Source: Weber Shandwick article archives at www.prnewsonline.com 2 prnewsonline.com | 01.23.12 ▶ Quick Study PR Agencies Report 2011 Revenues to Top 2010 Figures; Across the Pond, SMBs Slow to Recognize Social Benefits ▶ Agency Optimism High: A third also expect growth in plan to have a social media • In 2012, 26% plan to increase Q4 2011 survey of member PR business-to-business, cor- policy in 2012. their PR budget, 29% their agencies by the Council of PR porate communications and • One-quarter of small busi- social media budget and Firms finds that 70% reported issues management. nesses plan to trial a new 25% their overall marketing that final 2011 revenues will be Source: Council of PR Firms marketing/communications budget. higher than those in 2010. Just agency in 2012. Source: Williams PR 13% anticipate lower revenues. ▶ Small U.K. About half of the member Businesses Slow agencies experienced double- to Take Social digit growth, with figures Media Action: IBM No. 1 in the Top 10 2011 Corporate consistent across all revenue While small busi- Reputation List Based on Media Coverage categories. Other study findings ness owners in include: the U.K. understand the benefits • Over a third (35.5%) of agen- of online social cies anticipate higher budgets PR, they are slow in 2012, up from only 21.8% to enact social in the Council’s Q3 survey. media programs • More than 60% of agencies and policies, reported increased head according to a counts at the end of 2011 as study released compared to a year earlier. A in Jan. 2012 majority of firms anticipated from U.K.-based boosts in hiring, while fewer agency Williams than 10% predicted reduced PR. Specific find- hiring. ings include: • Almost two-thirds of firms reported a swelling in the • Only one-third mid-ranked account execu- of small busi- tive/account supervisor cat- nesses in the egories, while half reported U.K. have a hiring in the entry-level posi- social media Six of the 10 best corporate reputations as defined by media coverage belong tions and 46% in VP/senior policy in place. to large tech companies, according to the 2011 “America’s Top Companies VP. A third of all agencies • Of those that Reputation Benchmark” review of corporate coverage in opinion-leading U.S. planned to increase the ranks do, almost half media by PRIME Research. IBM, which earned superlative, highly visible cov- of non-traditional hires (44%) are not erage, led all companies in the study. “While media coverage is only one ele- coming from outside public confident about ment in corporate reputation, journalistic content uniquely reflects both current relations. their policies. public opinion while helping to shape future perceptions,” says Mark Weiner, CEO-Americas at PRIME. To learn more about PRIME’s custom research offer- • About three-quarters of the • One-third of ings, visit their Web site at www.prime-research.com. agencies expect growth in small busi- social media, while over a nesses do not Source: PRIME Research (data exclusive to PR News)

Learn how to enhance your communications initiatives, integrate Google+ into your digital toolbox, leverage LinkedIn to generate media coverage and develop content strategies for Twitter and Facebook at this annual one-day event.

prnewsonline.com | 01.23.12 3 ▶ Case Study Digital PR Social Media Branding Unique Storytelling, Crossover Appeal and an Enchanting Equine Angle Help the Breeders’ Cup Set Records

CTP and the Breeders’ Cup TuttleConover of Pace courtesy Photo Organization: The Breeders’ Cup took advantage of the event’s Agency: Conover Tuttle Pace proximity to Hollywood by Timeframe: August - Nov. 2010 engaging celebrities to help spread excitement. However, What drinks beer, dances and for its 27th edition on Nov. inspires a record number of 6-7, 2010, the event headed to wagers? No, we’re not talking Churchill Downs in Louisville, about the attendees of PR News’ Ky., a boon for the hard-core Nov. 2011 Twitter Conference horse-racing fan but not an in Las Vegas. The answer is ideal location for cultivating Zenyatta—the remarkable national mainstream aware- horse and cornerstone of the ness. The small, relatively PR strategy for the Quest for remote media market of the Perfection campaign for the 2010 Breeders’ Cup demanded 2010 Breeders’ Cup World a unique, integrated and far- Championship. reaching program to deliver on Tweet This: Although Zenyatta (at left) came up a nose short against A two-day, 14-race show- the following goals: Blame in one of the most dramatic Breeders’ Cup races ever, Blame did case of the world’s top thor- not have his own Twitter account. oughbreds, the Breeders’ Cup 1. Drive ticket sales and atten- is a horse-racing staple. In dance in horse racing. Zenyatta, one basket on a horse for the recent years, however, overall 2. Promote wagering the female horse named for campaign because they can get interest—even at the big- 3. Continue establishing the The Police album “Zenyatta hurt, retire or they simply lose, gest horse racing events—has Breeders’ Cup as one of the Mondatta,” remained unde- but Zenyatta was different,” says dropped significantly. For PR nation’s elite events feated while running against Pete Rotundo, VP of media and agency Conover Tuttle Pace males. As much as she was entertainment for the Breeders’ (CTP) and the Breeders’ Cup, ALL IN ON ZENYATTA respected for her record, she Cup. a successful 2010 event would In the early planning stages in had also become a star for her Rotundo and the team had be tied to how well they could August 2010, the combined six- personality. When Zenyatta a video made and a Web site attract and engage mainstream person communications team approached the track prior to ready to be launched going audiences. In its two previous identified a contending horse racing, she danced. She sipped into her 19th race on October editions, which were held at with the potential to captivate Guinness after workouts and 2. Within one hour of her Santa Anita near Los Angeles, even those with little interest won every one of her races in winning, the “Zenyatta Takes a thrilling, come-from-behind Over Secretariat Trailer!!!” was fashion. Zenyatta’s dominance launched on YouTube. And PR Lifts Breeders’ Cup Up on the track and quirky antics from that point, the PR race had even earned her a spot on was on. Oprah’s “2010 O Power List.” 2009 Oak Tree at 2010 Churchill A victory in the 2010 HORSE STORY Santa Anita Downs Breeders’ Cup Classic would The Quest for Perfection cam- Facebook (fans) 4,689 13,140 also make her the first horse paign was to be centered on in 130 years to retire unde- great storytelling. From “girl Twitter (followers) 2,224 3,917 feated with at least 20 wins. So against the boys” and her capti- Attendance 96,496 114,353 CTP zeroed in on a strategy vating personality to rock-star Wagering $178M $196 M to promote the Breeders’ roots (owner Jerry Moss was Cup through the blinders of a cofounder of A&M Records Ticket Sales $6.5M $10.5M Zenyatta. who worked closely with The TV Viewers 17.1M 24.3M The Quest for Perfection Police), Zenyatta delivered Total Revenue $25.7M $33.6M campaign sought to deliver her something for just about story to mainstream audiences, everyone. turn her race into one of the “Horse racing is a bit of a Both from social media and business point of views, Conover Tuttle year’s most anticipated events self-contained industry some- Pace’s comprehensive PR campaign to increase awareness of the and, subsequently, impact times, so we wanted something 2010 Breeders’ Cup horse-racing event was a clear winner. the Cup’s bottom line. “We outside audiences could get Source: Conover Tuttle Pace rarely put our all our eggs in behind,” says Jenna Browning,

4 prnewsonline.com | 01.23.12 senior account executive at page to win a VIP trip to the that among U.S. sports fans the Breeders’ Cup YouTube CTP. Reaching diverse audi- Eclipse Awards, which honor overall awareness increased channel, with over 1.46 mil- ences required an integrated champions of the sport, the fol- to 96% (from 40% in 2006). lion total views. approach replete with social, lowing January in Miami. • Media Highlights: More • Digital Initiatives: An digital and traditional tactics. than 5 million TV viewers iPhone/iPad app received DOWN THE HOME watched the Classic—ranking 49,000 downloads in SOCIAL HORSEPLAY STRETCH above nationally televised one month, fifth among The team created a social A traditional media rela- NBA and MLB games, free sports apps in the media strategy that included tions plan was also put into NASCAR telecasts and the iTunes Store. Traffic on regular Twitter and Facebook action. Browning says pitches Ryder Cup. Rovell’s piece was BreedersCup360.com updates on Breeders’ Cup explained Zenyatta’s legend discussed on Slate’s sports reached a record 500,000 pages, and established a roster and her crossover appeal, and podcast and picked up by the page views. of nearly a dozen celebrities— targeted major newspapers, USA Today “Game On” blog, from Chad Ochocinco to magazines, national news sta- in addition to several pick- Rotundo admits that 2010’s Alyssa Milano—to tweet tions and morning/daytime and ups across various sports Zenyatta story was a tough about the Breeders’ Cup. They late-night TV shows. “We were business Web sites and blogs. acto to follow in 2011, but he also managed a dedicated lucky with the variety of angles • Social Media: The cam- says the Breeders’ Cup’s future Twitter handle for Zenyatta we had,” says Browning. paign led to a one-year, looks bright. The now-retired (@2010zenyatta) where they The agency pitched CNBC 200% increase (to 13,100) Zenyatta will be giving birth could tell her story by sharing sports business reporter in Breeders’ Cup Facebook soon. “The birth will be a big news and exclusive updates. Darren Rovell the story of fans and engaged more than event.” says Rotundo. But, will To engage horseplayers, they Zenyatta’s impact on the busi- 3,900 Breeders’ Cup Twitter the foal drink and dance? PRN relaunched BreedersCup360. ness of the Breeders’ Cup. followers, up 76% from com, a specialized site that Rovell then interviewed Greg 2009. “Breeders’ Cup” and served as a bettor’s guide. The Avioli, CEO of the Breeders’ “Zenyatta” were trending CONTACT: team provided a live stream of Cup, and on the day before the topics during the event. Jenna Browning, jbrowning@ The Draw (which reveals each Classic, posted a lengthy piece, Zenyatta’s Twitter handle ctpboston.com, Pete Rotundo, horses’ starting position) on “Zenyatta Can’t Retire After reached 1,300 followers protondo@breederscup. BreedersCup360.com on Nov. Saturday,” on his “Sports Biz” in one month. The effort com; Slash Coleman, info@ 1, an added feature for 2010 blog. He tweeted a link to the attracted 1,311 subscribers to slashcoleman.com. that netted over 10,000 streams. story to his 62,200-plus fol- Next, they assisted in the lowers. development and promotion For Browning, the most 4 Tips for Great Storytelling: of the Official Breeders’ Cup difficult and unique aspect of iPhone and iPad app. NFL the campaign was having a For Public Relations and in Life personalities Ochocinco and centerpiece that couldn’t give In PR News we often write about Terrell Owens visited Zenyatta interviews. “We were lucky that the importance of storytelling. So, and tweeted to their combined she had a great team around we thought, why not go to a pro- 2.3 million followers to “Get her—her personality and story fessional storyteller for some tips on crafting a compelling tale. Here, the Breeders Cup Official had to be told through other writer/performer Slash Coleman, App today! Its free to down- spokespeople,” says Browning. currently at work on his second Slash Coleman load. Make sure to check out PBS storytelling special, offers four Zenyatta!”, which provided a WIN, PLACE & SHOW tips to maximize your storytelling efforts. major kick to the campaign, Despite Zenyatta’s heart- 1) Up Close and Personal: Great stories allow the storyteller to says Rotundo. breaking loss, coming up just connect with the listener in some way, and that happens best A microsite, Zenyatta2010. short to Blame—the 2010 when stories are true and personal. com, was also launched to con- event was the most successful nect fans with her leading up Breeders’ Cup of all time. 2) Emotion Is an Involuntary Action: The best stories in the world always have an emotional appeal. They inspire the audi- to the race. “We worked closely Results include: ence to act, to think, to laugh, to cry or to get angry. This isn’t with Zenyatta’s team—owners, achieved by telling the audience what or how it should feel. If trainers and jockey Mike • The Bottom Line: Ticket an audience is moved to feel something, they become more Smith—for a flow of photos, sales increased 40% from emotionally invested in a story based on that connection. videos and training updates 2009 and attendance reached 3) Conflict Is Good: Stories boil down to conflict. We crave that people couldn’t get anywhere 114,353. Revenue increased tension and a barrier between the hero and what he/she is else,” says Browning. 27.4% from 2009, while seeking. That’s what separates a good story from just an anec- To capitalize on the already wagering reached a record dote that may be told at the water cooler. hundreds of Zenyatta fan-made $196 million. 4) Ready, Set, Action: Great stories don’t need a lengthy setup. videos on YouTube, two weeks • Awareness: Unaided aware- Ideally, they should start right at the action. In other words, at before the race, CTP launched ness of the event increased the point where the main character is experiencing conflict. a “Zenyatta Fan Video” contest to 44% (from 14% in 2006). via the Breeders’ Cup Facebook Consumer research revealed

prnewsonline.com | 01.23.12 5 Costa Concordia Crisis ▶ Page 6 bottom the night of Jan. 13, to a crisis, says Berg, should CommCore Consulting and a take to ensure that the problem technology quickly sprang acknowledge what happened media training expert, shows doesn’t arise again.” into action, as passengers took and inform the public that how an organization, led by Schettino’s alleged actions you apologize and committed its CEO, tries to avoid making and conflicting statements, “A CEO should respond immediately, to making things right. That’s matters worse (see the sidebar however, may have forced take responsibility, offer apologies and exactly the tone of Carnival’s for Doyle’s full critique of the Costa’s hand. The captain has condolences to family and friends of those release. However, within the conference). become a caricature of himself who have died, and vow to address the release, there were no quotes in the public’s eye, helped by issues related to the from Carnival’s CEO Micky CAPTAIN CRUNCHED salacious stories by publications crisis.” Judy Brennan, Ogilvy PR Arison, and that could be a Foschi seemed to go to great like the New York Post, which blunder in a crisis of this mag- lengths not to blame the ship’s dubbed Schettino “Chicken of photos and videos via cell- nitude. “A CEO should respond captain, Francesco Schettino, the Sea.” phones of the chaotic scenes on immediately, take responsibility, although he said that Schettino The media onslaught con- the ship’s decks and, reportedly, offer apologies and condolences was responsible for taking the tinues. A blond dancer from callers alerted the Italian Coast to family and friends of those Moldavia who may have dis- “Rebuilding after a Guard that something was who have died, and vow to crisis is all about tracted Schettino the night of how you handle not right onboard. These are address the issues related to the situation as it the accident now thickens the occurred. Did you actions that Titanic passengers, the crisis,” says Judy Brennan, communicate openly plot. of course, could not take, but executive VP at Ogilvy PR. to consumers, or were you more evasive underscores the immediacy of On Monday, Jan. 16, Costa and not handling it REBUILDING A directly?”” communications today. Cruises’ chairman and CEO Larry Berg, Valassis REPUTATION The next day, Sat. Jan 14, at Pier Luigi Foschi held a press This coverage is merely a 3:45 p.m. EST, Carnival Cruise conference in Genoa, Italy, ship off course, a move that was distraction for communica- Lines, the parent company to answer questions on the “unapproved and unauthor- tors, though. Aside from the of Costa Cruises, issued its incident. The conference, ized.” financial hit that Carnival will first press release on the acci- says Jerry Doyle, principle Ah, Captain Schettino. take—estimated to be $95 mil- dent. The initial PR response at crisis management agency Within hours the 24/7 nature lion by the Financial Times— of media had elevated him to it’s long-term reputation and legendary status, and not in customer trust that’s at stake. Lack of Preparation Mars a good way. Currently under “Rebuilding after a crisis is all Costa Cruises Press Conference house arrest on suspicion of about how you handle the situ- multiple manslaughter, Italian ation as it occurred,” says Berg. In any crisis, first impressions are the most important. So when prosecutors have also accused “Did you communicate openly Costa Cruises chairman and CEO Pier Luigi Foschi held a news him of fleeing the ship before to consumers, or were you conference on Monday, Jan. 16, the eyes of the world were on the evacuation was complete. A more evasive and not handling him. PR News asked media training expert Jerry Doyle, principle at conversation between Schettino it directly? People sense this.” CommCore Consulting, to review the press conference video (now and a port official seems to This part of the PR equation posted on Costa’s site via YouTube). Doyle says Costa Cruises was support that accusation. may have to wait until all the ill-prepared for the press conference, based on the following: After a barrage of evidence facts are known, and perhaps • The press conference was short and the CEO was vague. “The was made public about the until the Concordia is removed only other communication from him came in the form of five or captain’s tepid response during from that rocky outcrop and six Twitter posts—woefully insufficient,” says Doyle. the accident, Costa Cruises the missing accounted for. PRN • Foschi’s message about the exhaustive “policies, procedures and began disassociating itself from physical training” that ship and shore Costa employees undergo its own employee, essentially [Editor’s Note: For more articles lacked any qualifying detail, which undermines his assertions that blaming Schettino fully for on crisis management, visit this incident was a fluke or an exception. the accident. This isn’t the PR News’ Subscriber Resource • The CEO took questions only in the form of written notes. This best of moves, says Brennan. Center: prnewsonline.com/ may well have been a language/translation issue. But, while not “Generally speaking, compa- subscriber_resources.html.] allowing a free-flowing Q&A format offers Costa and the CEO an nies should not place blame element of control, it also risks the perception that he was not squarely on one or more indi- prepared to answer live questions. viduals until it’s been validated CONTACT: • The comments section was disabled on YouTube. “This is a PR with a formal investigation,” Larry Berg, bergl@valassis. mistake,” says Doyle. “Sure, there would been some nasty com- she says. “A company needs com; Judy Brennan, judy. ments levied against the company, but stifling public comment to go beyond placing blame. [email protected]; makes them look like they don’t believe their own words.” The focal point should be on Jerry Doyle, jdoyle@ what changes the company will commcoreconsulting.com.

6 prnewsonline.com | 01.23.12 Mobile PR Campaigns ▶ Page 1 heavily in technologies on the form grabs content and pushes customer relationship manage- it in text message format to Mobile Case 2: ment (CRM) side, resulting in friends,” says Citron. Fun & Games improved audience outreach. With that many advances Lifts User Base “Companies are making their in mobile communications, messages count,” says Veremis, you’d think just about every For Telco In other words, they are com- campaign would yield stellar Company: TIM Brazil municating via mobile less fre- results (see the case studies Mobile Agency: Upstream quently but more effectively. for more). Yet there are hic- Timeline: Oct. 2011 - Present cups. A few years ago, Laura CARRYING A Durington, online community Objectives: To increase the opt-in base of telecommuni- CONVERSATION manager at Catholic Relief cations company TIM Brazil; to lift value-added services (VAS) revenues; to gather profiling information; and to With social conversations so Services, saw promise in text entertain and reward customers. prevalent in PR outreach today, donation campaigns. However, conversing via text might Durington was stymied by the Execution: Customized mobile mechanisms reward subscribers who use both free and premium TIM services. seem clunky in comparison. $10 cap that most carriers place Customer profile data is collected via an entertaining But there are advances on that on donations, and restrictions game delivered via mobile. front as well. Angela Gillespie, on communicating with text Results: TIM Brazil’s opt-in user base has increased by 13 interactive marketing manager donors. “Mobile will still grow million—and counting. at 3Seventy, a mobile com- as a channel for list building munications company based in and engagement, and we have Bonus: VAS revenues are up through more than 30 million Austin, Texas, says they offer changed our strategy to focus mobile interactions. two-way dialogue SMS, pro- on these areas,” says Durington. gramming immediate responses to customers’ clicks in advance. R U FOLLOWING THE LAW? cate with consumers on mobile give customer value over the The ability to share content Then there are legal issues to devices. In so doing, they may long term. a la Facebook and Twitter is consider. According to attorney be losing a clear perspective on 2. Choose a vendor wisely. also being addressed. Mogreet Kyle-Beth Hilfer, whose prac- laws that govern mobile. Pick a vendor that under- is launching “MoShare,” a plat- tice areas include advertising, The opt-in required by the stands the space, and that is form similar to social share marketing and promotions, consumer is what separates familiar with your organiza- buttons you see everywhere on marketers are becoming more mobile outreach from other tion’s goals. the Web. “The MoShare plat- daring in trying to communi- platforms. “The opt-in must be 3. Think holistically. For best specific in nature and limited in results, you must be mobile- scope to pass legal muster,” says ready throughout the pro- Mobile Case 1: Hilfer, who adds that enforce- cess. “Links to URLs must go AMF Attracts High ment of federal statutes in this to mobile enabled sites,” says area, as well as state attorneys- Gillespie. “Think everything Number of Rollers general investigations, are on through.” With Texting Effort the rise. Legalities of prize Company: AMF Bowling Centers promotions and privacy con- With social media firmly Mobile Agency: 3Seventy cerns should also be top-of- embedded in PR programs, mind when executing mobile mobile just might be the next Timeframe: Jan. - Oct. 2011 campaigns. Relevant laws great PR frontier. So don’t get Objective: Increase activity among college students and pertaining to mobile that PR lost in the land-grab. PRN moms with kids at bowling centers across America by pros should study include the repositioning bowling as a modern, fun and interactive CAN-SPAM Act, the Telephone activity. Consumer Protection Act and CONTACT: Execution: Combined mobile and social media to target Telemarketing Sales Rule. Marco Veremis, upstream@ each audience; created opt-in campaigns to build data- Do your homework and globalresultspr.com; base; and distributed unique coupon offers to incentivize mobile could produce a big PR James Citron, mogreet@ them to spend. payoff. Gillespie offers three globalresultspr.com; Angela Results: Obtained over 28,000 new members coming tips to get you started: Gillespie, angela@3seventy. direct from mobile Web; increased participation by mem- com; Laura Durington, laura. bers in the AMF 2012 program. 1. No one-off campaigns. [email protected]; Kyle-Beth Bonus: Over 1 million coupons distributed contributed Mobile efforts should be part Hilfer, kbhilfer@kbhilferlaw. more than $1.3 million to AMF’s bottom line. of the overall strategy and com.

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Austin, TX 78701 ▶ Tip Sheet Media Relations Product Launch BY GARY WELLS Combat ‘In Your Face’ Media: Define News Yourself

I love New York. It is perpetu- phone conversations of royals paper in the United Kingdom, employees. ally in your face, but the city is and celebrities to create sen- until it was shuttered. You can at least honest about it. sational news coverage. But it include a link I was there once at was when it was discovered D-I-Y NEWS to the release. Create your Halloween and saw Napoleon that the phone of a murdered What does this mean for you? own video story about how walking down the street en schoolgirl had been hacked that Well let me be a little in your your new product solves a route to a party. Nobody paid the scandal mushroomed and face about this: problem. Send it directly to attention. I was there once and began to involve Murdoch and Generating news coverage your top customers, and post saw Dennis Rodman wearing his son, James. now is “do-it-yourself.” Much it on your Web site. Chances a wedding dress, en route via Why would journalists of what companies used to are that the media then will horse-drawn carriage to a apparently be willing to breach communicate about themselves use your news, too. book signing of his autobiog- every journalistic code of ethics —that is, real news—now lands raphy. People did pay attention —and if so at the same time between the extremes of deep OPPORTUNE TIME that time. Unlike the French also break the law as well? analysis and salacious copy, and There are many examples emperor, who was hurried but Generally, media have that means the media may take of media that are evolving minding his own business, the responded in one of two ways little or no notice of your com- or emerging as the best and basketball star was in your face. to the market forces that have pany announcements. brightest around the world. People, particularly tourists, whipsawed them in recent Here are two suggestions to And they are more vibrant also pay attention to the Naked years, largely driven by the free counter that: and vital than ever. Look at Cowboy. This is a muscular availability online of about any- Bloomberg and Reuters. Look young fellow whose base of thing the media used to sell. • Go Deep: When you get at 21st Century Business Herald operations is Times Square. He Some media have decided ready to announce a new (China) and The National wears a cowboy hat, cowboy to provide even more useful product, for example, don’t (UAE). Look at Huffington Post boots, a guitar and briefs. And information than in the past— just talk about the product. and Patch.com. that’s it. You want your picture for example, for insight that is Talk about the trends behind But as the media change, so, taken with his putative icon? compelling enough that people your development of that too, has the definition of news. Give him a little money and he’s are willing to pay for that anal- product. What did your cus- It is now your responsibility glad to oblige. It isn’t what he ysis to help make decisions. tomers tell you that led you to define the news. And that says as much as what he does— But other media have to develop the product? How means it is also the opportunity he’s in your face too. decided to provide even more widespread is the challenge you never had before to define controversial coverage than in facing your customers? It is your own story. PRN IN-YOUR-FACE MEDIA the past, stories that are sala- up to you to explain to the Rupert Murdoch and the cious but can be hard to look media why your announce- [Editor’s Note: For more articles phone-hacking scandal are a lot away from, like the scene of an ment is news. That is, you on media relations, visit PR like the Naked Cowboy. It isn’t accident. must demonstrate the news. News’ Subscriber Resource what they say as much as what Guess which one News of • Deliver the news directly Center: prnewsonline.com/ they do, but it appears that the World—owned by News to your audiences. Post subscriber_resources.html.] they’re in your face, too. International, a subsidiary of your news on your Twitter, If you haven’t followed the Murdoch parent company Facebook and LinkedIn CONTACT: this saga, some journalists News Corporation—allegedly pages—and on the social Gary Wells is senior managing employed by a Murdoch news- chose. If so, it worked for networks you’ve created for director at PR agency Dix & paper in London, News of the awhile. News of the World was individual audiences, from Eaton. He can be reached at World, allegedly used hijacked the most profitable Murdoch customers to investors to [email protected].

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8 prnewsonline.com | 01.23.12