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Significance of the General Public for Public Relations: A Study of the Blogosphere's Impact on the October 2006 Edelma

Significance of the General Public for Public Relations: A Study of the Blogosphere's Impact on the October 2006 Edelman/Wal-Mart Crisis. Master of Arts in Communication Studies Thesis Defense by Sergei Golitsinski December 12, 2007. What I am Challenging.

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Significance of the General Public for Public Relations: A Study of the Blogosphere's Impact on the October 2006 Edelma

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  1. Significance of the General Public for Public Relations:A Study of the Blogosphere's Impact on the October 2006 Edelman/Wal-Mart Crisis Master of Arts in Communication Studies Thesis Defense by Sergei Golitsinski December 12, 2007

  2. What I am Challenging According to public relations theory: • PR should focus only on those publics who may cause negative consequences • The general public is insignificant, powerless and nonexistant • PR should ignore the general public Concept often critiqued, but no empirical evidence provided I have gathered empirical evidence and challenge #2

  3. Today’s Agenda • Brief overview and critique of related theory • My hypothesis and what data is required to support it • Method for gathering and analyzing this data • Results of data analysis • Discussion of results: hypothesis supported • Possible implications of results for public relations • Questions

  4. Theoretical Background

  5. Publics and the General Public Why focus on select publics? • Underlying purpose of PR: prevent negative consequences • Evolution of PR: XIX century – today: • Propaganda/publicity • Public information • Persuation/manipulation based on research • Building relationships (research shows it is still mostly publicity) • However, focus remains on those who may cause consequences: If an organization has no consequences upon other social systems and if those systems have no consequences for the organization, there is no need for public relations.” (Grunig & Hunt, 1984) Theoretical Background: slide 1 of 6

  6. Publics and the General Public The general public is considered powerless, insignificant, nonexistiant: There is simply no such thing as the general public (Cutlip, 2000) There is no such thing as a mass audience or public (Newsom, et al., 2004) Theoretical Background: slide 2 of 6

  7. Another Theory: PR & Community • Most problems PR has to deal with today did not exists in traditional community • PR appeared as a result of the loss of community • Community exists through communication, therefore, as communication professionals, PR people should help restore a sense of community Theoretical Background: slide 3 of 6

  8. PR Restoring Community Debate between Walter Lippman and John Dewey Problem The individual man does not have opinions on all public affairs. He does not know how to direct public affairs. He does not know what is happening, why it is happening, what ought to happen …There is not the least reason for thinking … that the compounding of individual ignorances in masses of people can produce a continuing directing force in public affairs. (Lippman, The Phantom Public, 1925) SolutionLeave public affairs to “men of quality,” to the experts and elites, and have the mass media repackage the information in simple terms for the general public Theoretical Background: slide 4 of 6

  9. PR Restoring Community Similar Argument for Public Relations ProblemThere is a danger that organizational members may not be skilled in addressing public concerns. Direct access to key members of an organization might create more public relations problems than it solves. Kent & Taylor, 1998 SolutionLeave communication to communication experts Theoretical Background: slide 5 of 6

  10. PR Restoring Community Dewey’s ArgumentThe knowledge needed to be involved in politics, was to be generated by the interaction of citizens through communication: Conversation is the ultimate context within which knowledge is understood Till the Great Society is converted into a Great Community, the Public will remain in eclipse. Communication alone can create a great community. (Dewey, The Public and its Problems, 1927) Community can be restored by the public through conversation Unlike the mass media – both in 1927 and 2007 – the blogosphere provides the means for conversation. Hense – my hypothesis. Theoretical Background: slide 6 of 6

  11. HYPOTHESIS: New communication technologies have given the general public the power to cause direct negative consequences for organizations • Support hypothesis by showing that: • There were significant negative consequences • Consequences were caused by blogs • Consequences cannot be isolated “per blog”: must have an impact as collective action • Bloggers cannot be defined as one public; represent multiple publics, i.e. – the general public

  12. Method

  13. Summary of the Method Source of data: blogosphere and mainstream media Subject: October 2006 Edelman/Wal-Mart crisis Collecting data: Lexis-Nexis (manual) + Internet (automated) Analyzing data: • Model conversation as graph • Quantitative analysis • Chronological analysis • Qualitative analysis (positive/negative/neutral/balanced) • Identify most influential blogs • Identify main negative themes Method: slide 1 of 5

  14. Wal-Marting Across America Summary of the case: • September 27, 2006: blog appears • thewritingonthewal.com voices suspisions • October 9, 2006: BusinessWeek.com publishes story about Edelman (i.e. Wal Mart) financing the blog • 76 blog posts follow • October 18, 2006: Edelman responds -> more controversy • Results: blog removed, massive negative publicity online + in mainstream media Method: slide 2 of 5

  15. Why use computer science? Method: slide 3 of 5

  16. Method: slide 4 of 5

  17. Conversation as a Graph (first 10 posts out of 210) 7 4 8 5 1 9 10 24 6 3 2 83 25 28 46 48 53 59 70 88 96 99 109 107 120 129 131 114 115 118 119 127 128 156 132 133 135 138 141 145 151 154 136 155 160 161 93 Method: slide 5 of 5

  18. Results

  19. Summary of Results Examined 156 blogs: • connected by 1.548 links • containing 201 relevant posts • posted between 10/9/2006 and 10/16/2007 • with 1.263 comments Results: slide 1 of 16

  20. Quantitative Analysis of Blogs Purpose: • Quantify the scale of the conversation • Identify criteria for determining participation of each blog Results: • 16% contained multiple relevant posts (2 – 5) • 58% had comments. • 88% contained outbound links • 73% contained inbound links Results: slide 2 of 16

  21. Chronological Analysis Blogs: October 2006 Blogs: 2006-2007 Mainstream media: 2006-2007 Results: slide 3 of 16

  22. Qualitative Analysis of Blogs Results: slide 4 of 16

  23. Qualitative Analysis of Mainstream Media Results: slide 5 of 16

  24. Selecting Most Influential Blogs Purpose: To identify individuals who had the most impact on the conversation Procedure: • Select the top 50% of blogs with the most comments • Add the top 25% of blogs with the most inbound links • Add the top 10% of blogs with the most outbound links • Add the top 5% of blogs with the most posts • Add the blog which started the conversation • Remove blogs which were positive or neutral in nature Result: 50 top blogs • 32% of all blogs; 44% of all blog posts; 88% of all comments • 66% of all inbound links; 51% of all outbound links • 90% are negative; 0% are balanced Results: slide 6 of 16

  25. Negative Themes Blogs: • Edelman not participating in the conversation • Edelman’s statements inadequate • Edelman not being transparent • Edelman violating WOMMA Code of Ethics • General negative comments on Edelman • PR people know very little about the blogs and social media • “Real world” negative consequences for Edelman Mainstream Media: • Real identities of the bloggers revealed • Nondisclosure • Fake corporate blogs Note: quotations are simplified for presentation Results: slide 7 of 16

  26. Theme 1. Edelman not participating in the conversation Now PR industry blogger Shel Holtz is laying it on thick, wondering why in this era of transparency Richard Edelman and his braintrust haven't stepped up with a mea culpa. It's great stuff. There's nothing like a public spat between PR gurus. And it's particularly informative to learn what the PR kings do when their own scandal erupts: stay silent. money.cnn.com (October 15, 2006) And what is the point of blogging if you’re not participating in the conversation? Is not the whole point of public relations in this new social participatory medium to not control the conversation – but to become part of it? deepjiveinterests.com (October 16, 2006) Results: slide 8 of 16

  27. Theme 2. Edelman’s statements inadequate I want to acknowledge our error in failing to be transparent about the identity of the two bloggers from the outset. Let me reiterate our support for the WOMMA guidelines on transparency. Our commitment is to openness and engagement because trust is not negotiable. edelman.com (October 16, 2006) Edelman PR's mea culpas for creating a blatantly fake Wal-Mart blog ring hollow because Richard Edelman apologizes for getting caught, not for the agency generating yet another unethical Wal-Mart social media campaign. marketingvox.com (October 18, 2006) It is boilerplate old-school PR and disregards everything that Web 2.0 and the blogosphere has championed about all of us as individuals. Their apology is empty. It's time to explain how this could even happen. marketingvox.com (October 18, 2006) Results: slide 9 of 16

  28. Theme 3. Edelman not being transparent Bloggers should disclose any financial consideration that might affect their impartiality. edelman.com (October 16, 2006) We cannot tolerate any arrangement that envisages payment for placement. To do otherwise completely undermines the essence of our position as honest advocate. Why bother reading the editorial copy if it is purchased in the same way as the advertising? edelman.com (January 15, 2006) Edelman, ostensibly in the vanguard of the social media revolution, has betrayed the very principles it has been espousing. marketingvox.com (October 18, 2006) Results: slide 10 of 16

  29. Theme 4. Edelman violating WOMMA Code of Ethics Wal-Marting Across America campaign/blog was obviously breaking the Honesty of Identity guidelines: Clear disclosure of identity is vital to establishing trust and credibility… The same goes for Honesty of Relationship: We practice openness about the relationship between consumers, advocates, and marketers… basturea.com (October 13, 2006) Results: slide 11 of 16

  30. Theme 5. General negative comments on Edelman Edelman screwed up royally. Edelman was being duplicitous and tricking people. askdavetaylor.blogspot.com (October 23, 2006) Wal-Mart blogging exercise that appears to have broken every unwritten rule in the book. holmesreport.blogspot.com (October 20, 2006) We call it as we see it: Wal-Mart lied. Photographer Jim Thresher lied. Edelman helped them engineer the lie. irregulartimes.com (October 17, 2006) Results: slide 12 of 16

  31. Theme 6. PR: know little about the blogs and social media Big media trying to adapt blogs to their business model instead of adapting their business to blogs, and Edelman are making exactly the same mistake – trying to use blogs for PR, instead of trying to adapt PR to blogs. Blogging is not something you can learn in an afternoon, or a day – it's as complex and alien to PR people as Chinese culture is complex and alien to me. If you simply employ PR people who happen to blog, all you'll get is the same old PR attitudes, but with comments and trackbacks. strange.corante.com (October 21, 2006) Results: slide 13 of 16

  32. Theme 6 continued I do believe that PR can participate in a positive manner in the blogosphere. I agree that it means we have to change PR to be transparent, genuine, two-way (so we listen, not just talk). This Wal-Mart program was a publicity stunt aimed at the mainstream media with a new media component. Richard Edelman’s comment on strange.corante.com (October 21, 2006) This is more than just a disclosure issue, this goes right to the heart of what blogging and social media is about...i.e., conversation versus publicity stunts. Puschmann’s comment on strange.corante.com (October 21, 2006) Results: slide 14 of 16

  33. Theme 7. “Real world” negative consequences for Edelman So, Edelman wins the lame-o PR firm of the year award, because now people like me who never even heard of the WalMartingAcrossAmerica blog have heard about how Wal-Mart couldn’t find any real honest-to-goodness Wal-Mart lovers to make a blog. No, what Edelman has shown us is that Americans have grown to hate Wal-Mart so much that they had to hire people to make a fake blog. Fake blog. Fake trip. Fake couple. Fake everything. irregulartimes.com (October 17, 2006) Results: slide 15 of 16

  34. Summary of Negative Themes in Mainstream Media OK, some PR companies are getting slapped on the wrist at the moment, but truth on the internet is going to become a massive issue. Bloggers might be the ones to expose a con, but you then risk that negative publicity being highlighted to a completely different and much larger audience. Then you have a real problem Retail Week (April 13, 2007) Results: slide 16 of 16

  35. Discussion

  36. Support for Hypothesis 1. There were significant negative consequences • Negative publicity in blogs and mainstream media • Loss of reputation as leader in social media 2. Consequences were caused by blogs • Initiated by BusinessWeek.com (triggered by thewritingonthewal.com?) • Circulated on 156 web sites (at least) Discussion: slide 1 of 6

  37. Support for Hypothesis 3. Consequences cannot be isolated “per blog” • Conversation facilitated through links and comments Knowledge required for the formation of public opinion was generated through ideas being “communicated, shared and reborn in expression” (John Dewey, 1927) Knowledge generated through conversation caused the shaping of a new public opinionabout Edelman Discussion: slide 2 of 6

  38. Do the Bloggers Represent the General Public? Top bloggers include: consultants, university professors, students, writers, programmers, speakers, activists, etc. Goal: map all bloggers to ONE public which can be identified PRIOR to any consequences it may cause Try mapping to the following publics: • media (both, mainstream and specialized) • employees • competitors (consultants and agencies) • activist groups • bloggers who write about communication topics (…borderline) Discussion: slide 3 of 6

  39. Do the Bloggers Represent the General Public? ConclusionBloggers represent multiple publics, or the general public Hypothesis supportedNew communication technologies have given the general public the power to cause direct negative consequences for organizations. Discussion: slide 4 of 6

  40. Blogs as the Media? Sure! Prevent negative consequences by building relationships with key publications through the people who represent them However: even a single blogger can have an impact: everyone is a “key publication” Ordinary people can have extraordinary voices in the daily life of Earth instead of a few media elite (Shankman, 2006) Solution: build relationship with every blogger -> impossible Discussion: slide 5 of 6

  41. Building Relationships with the Blogosphere Why not identify key bloggers, build relationships with them, and communicate through them with the blogosphere? Richard Edelman did that: • Commented on a few popular blogs • Personally called prominent blogger to apologize?! I can tell you that our determination to be leaders in the blogosphere is undiminished. Comment by Richard Edelman on buzzmachine.com, October 20, 2006 We’re all the same. Think flat. Stop worrying about the A-list, the tops, the bottoms, the midlands, etc. Just treat everyone with the same amount of respect as you would a friend Comment by Krucoff on buzzmachine.com, October, 20, 2006 Discussion: slide 6 of 6

  42. Conclusion The general public can cause significant negative consequences to organizations. However, unlike with specific key publics, a relationship-building approach does not work with the blogosphere, or the general public

  43. Questions?

  44. Thank You!

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