Google Commands Big Cash from PR-Damaged Brand
Public relations is all about reputation management–your credibility is the coin of the business realm. We’re pretty hard on companies and brands that take a cavalier attitude about their credibility–because once you lose that, it’s all over. Or is it?
Admittedly, we have strongly implied that you can’t buy your way out of a PR disaster, but the oily BP sure makes us think twice:
Before BP could stem the oil gusher at the bottom of the Gulf of Mexico, it unleashed $100 million in ad spending, largely on network TV, to stem the damage to its image. But it also started spending heavily where it had never spent much before: buying ads in Google’s search results.
How much did BP spend on search? In two months, BP went from spending very little on search advertising — about $57,000 a month — to becoming one of Google’s top advertisers, dropping nearly $3.6 million in the month of June alone, according to an internal Google document obtained by Advertising Age. That pushed BP into the upper echelon of search advertisers, in a league with Expedia, which spent at least $5.9 million in June, Amazon, which spent at least $5.8 million, and eBay, which spent at least $4.2 million.
This is a significant outlay, even for BP, which spent $94 million on advertising in 2009, and $78.7 million in the first six months of 2010 alone excluding search, according to Kantar Media. Search advertisers only pay when their ads convert or get a click, and in June the crisis was still at full-boil, driving clicks on BP&’s ads. But if BP kept spending at this rate, search would’ve become one of its bigger advertising line items by the end of the year, up there with network, cable or spot TV.
[...]
BP’s increase underscores how important Google has become for reputation management, and in the battle for public opinion. In the wake of the spill, Google was a natural first stop for people seeking information, and BP bought up dozens of keywords associated with the disaster such as “oil spill,” “leak,” “top kill” and “live feed” as it vied for clicks with news stories, images of oiled wildlife and plaintiff attorneys trolling for clients.
via What Big Brands Are Spending on Google – Advertising Age – Digital.
According to BP, ad expenditures during the active spill were $5 million per week.
BP’s ad strategy now follows the typical trajectory of crisis PR, he says. It didn’t start out that way. BP was slow to connect with consumers and gulf residents right after the spill. Tony Hayward’s numerous gaffes didn’t help the company’s image, which came across as inept and out of touch. There’s little question that his mismanagement of the company’s public image led to his ouster as CEO.
So how’s the advertising paying off in PR improvement? A recent AP poll says that “some 66 percent of those surveyed continue to disapprove of BP’s performance, down from a whopping 83 percent in June.” Though still dismal, it does look like the ad spending is helping. However, it’s also certainly due to the fact that time has passed and the oil spill isn’t leading the newscasts anymore. The public has turned to the latest Sarah Palin Facebook pronouncement, Paris Hilton’s cocaine possession arrest and even something important, like the president’s new rug.
Sure, we’ve seen the TV ads BP is using to rebuild its tattered, oil-stained image–that was as predictable as a blob of oil on the beach at Destin. But who would’ve thought they would have spent all that coin on Google search ads?
Clearly, the internet is now the 800 lb. gorilla of reputation management, and Google has some serious bananas.
Hat tip to Shelly Kramer for inspiring this post.
If Apple wants to be a major player …
In light of our recent analysis of Apple’s PR problems, we thought this post from The Observer might be of interest:
The event was an instructive shambles. In summary, the message was: Apple is good and makes great products; all smartphones have reception problems; Apple loves its customers, which is why it built all those cool retail stores for them; the iPhone problem can be fixed by fitting a rubberised “bumper” over the bezel; and Apple will give everyone a free bumper, so what’s the problem?
The press conference was instructive because it provided such a vivid demonstration of how inexperienced Apple is in its new role as just another company – and how inept Jobs is when faced with the hostile skepticism that is the routine experience of other CEOs.
“When it comes to responding to hostile or sceptical media coverage,” wrote one experienced commentator, “Jobs & co seem to be like a presidential contender who’s been able to skip the primaries and go straight to the general election – missing all the vetting and the hundreds of debates that help to surface any weakness or issues of concern, providing time to develop the skills necessary to respond to any situation. Jobs demonstrated what I've never seen him do in front of an audience: he not only lost his cool, he lost his charm. He was a like an arena rock star who can’t perform acoustic.”
Read the entire post: If Apple wants to be a major player it needs to start behaving like one | Technology | The Observer.
iPhone Deaf: Apple Needs to Answer PR Call
Lemon or Not, the PR Stinks
It’s painful to watch. As a devotee of many of Apple’s products–I’m writing this on a MacBook, various iterations of the iPod have been my constant companion for years–it’s just painful.
Beyond being excellent tools, these Apple products are a statement that I value style and substance, simplicity and elegance, reliability and value. Heck, I’ve crowed from this very blog about the excellent customer service in the Apple store.
That’s why it’s painful to watch the iPhone 4 debacle unfold. Apple, the standard bearer for the best in product development and marketing, has apparently plugged their “PR ears.”
Apple–can you hear the phone ringing?
Let’s review (from the New York Times):
The iPhone 4 has been Apple’s most successful product introduction to date. Yet problems with the antenna surfaced after the phone went on sale and have plagued Apple for weeks.
Apple sought to address those concerns nearly two weeks ago, saying that a software bug caused the iPhone 4 and its predecessors to display signal strength incorrectly.
But Consumer Reports on Monday called into question Apple’s explanation. The magazine said that it had tested the iPhone 4 along with other devices in a lab and determined that the iPhone 4 had a hardware design flaw. It said that it could not recommend the device to its readers until Apple fixed the problem.
Overall Verdict: Tone Deaf PR. (Or is that Dial Tone Deaf PR? Or just iTone Deaf? Punsters, you choose.)
The problem(s):
- They may have known about the problem before the launch–devastating in itself if true–it will rip the band-aid right off any efforts to stanch the bleeding to date.
- They have reacted to this situation almost as poorly as BP (though not on the same scale of disaster, it’s a relatively similar PR crisis for the company in terms of credibility).
- CEO Steve Jobs, known for his mercurial temperament and occasional forays into direct “customer service,” has not made the situation any better–in fact, he’s making Apple seem arrogant, petulant and blithe about the entire matter.
- Customer confidence in Apple is shaken–many are already concerned about Apple’s deal with shaky network purveyor AT&T (full disclosure: I have a family member who works for Sprint and I like their service)–and this makes it worse.
- Apple, so used to great press for many years, may simply be unprepared and ill-equipped to handle a crisis such as this (also demonstrated by the poor handling of the prototype mess a few months ago) ala Southwest Airlines and the “large” blowup with director Kevin Smith.
PR solutions for now involve mitigating the damage and putting procedures into place to handle the next crisis (and yep, sorry Apple, there will inevitably be more PR troubles in your future. Like death and taxes, Steve).
- Mitigating damage usually involves being readily transparent from the get-go. Your pride be damned. If you’re wrong, admit it, apologize, fix it, then drive on– or face the consequences. Half-assed fixes and vain hopes that it will “all go away” are stupid and just make things worse.
- Have a crisis communications plan in place. Now. If you don’t have one, you better get one. Consider it insurance–cheers if you never file a claim, but aren’t you glad you had it when the basement flooded? Click here for more on that.
- Do you have public relations professionals in place who have handled a serious media meltdown before (see Southwest Airlines link, above)? But more importantly, are they empowered to do their jobs? Having a PR pro on staff with crisis com experience is great–but if you don’t let them manage the situation (I’m talking to you Mr./Ms. CEO) then it’s like the house is on fire and you order the firefighters to sit in the fire engine while you throw gas on the blaze.
- Fix the problem. Apple customers are fiercely loyal–but there’s a limit. The grudging rebate on the initial iPhone release was the first sign that Apple’s core (sorry for the pun) customers could be taken for granted. Not smart. GM did that. Have a look at their stock price now. Oh wait, they don’t have a stock price.
After the iPhone rebate mess a few years ago, Steve Jobs said:
We want to do the right thing for our valued iPhone customers. We apologize for disappointing some of you, and we are doing our best to live up to your high expectations of Apple.
If only he had done this right off the bat with the iPhone 4. Perhaps at today’s press conference we will see something like that; a solid, satisfying fix for those who have purchased the iPhone 4.
Apple, your iPhone is ringing. Pick up the phone.
Warren Buffett Agrees: Fire BP CEO
Warren Buffett, the billionaire “Oracle of Omaha” agreed with our previous assertions that BP CEO Tony Hayward (already pushed in the background, but still a symbol for the mess BP made) should be fired.
Good to know we’re on the right side of the Berkshire Hathaway investment genius.
Click on the link below to view the brief video on slide 7 “Buffett on BP.”
Warren Buffett On The Economy, The Deficit, LeBron James And BP (VIDEO).
Two Spokespersons Amplify BP Oil Spill PR Chaos
To say the least I’m perplexed about BP and their response to the oil spill in the Gulf. I could (and may) write a White Paper on all the mistakes and missed opportunities, but for today let’s talk about their spokespersons.
They’ve made some obviously vague and tone deaf statements–especially recently with CEO Tony Hayward’s assertion that the spill’s environmental impact will be “very, very modest”:
Yeah, tell that to the fishermen, Tony. Their impending “modest” bankruptcies are no biggie.
Hayward’s wishful thinking out loud makes the situation worse for BP, particularly when his own COO Doug Suttles (who I give points to for making himself available to the media) apparently contradicted him on the Today Show this morning (last few seconds of this piece):
Visit msnbc.com for breaking news, world news, and news about the economy
Two spokespersons in a crisis communications situation is almost never a good idea, especially when there is no message coordination. It’s certainly played a role in BP’s long-standing environmentally-responsible image–which now resides somewhere in the vicinity of that leaking well on the bottom of the sea.
Developing…we’ll have more analysis shortly.
In the meantime, what do you think? Should BP’s CEO stay out of the messaging, or does it really matter at this point?
