When Stupid Rules
I often ask myself, how is it that many Israeli companies that receive tens of millions of dollars in funding … not to mention the tens of millions in profits, are unable to spend a reasonable amount per month on a PR campaign?
Today, I finally realized the answer. It is simple. They are stupid.
Stupid means that a company can spend tens of thousands of dollars on a single advertorial, because the CEO likes to see his/her face in a magazine, but won’t spend that kind of money on a PR campaign because there is no guaranteed ROI. Of course, it doesn’t matter that the advertorial they bought gave no ROI either.  At least the CEO can show the picture to his army buddies, right?
Stupid means that a company embarks on a branding campaign that does not have market research as one of its preliminary elements. And when the branding firm – which the company paid $50,000 to develop the new branding, unveils a name that sounds ridiculously similar to another Israeli company’s name, and the color scheme does as well, the company is forced to accept it because, well, they paid $50,000, and it would be a shame to let that money go to waste.
Stupid means that a company believes it only has $1,000 per month for international PR, so it hires a second-rate freelancer to do the job, when that money would be better spent on Google Ads or, frankly, snacks for the staff. Any PR firm willing to accept $1,000 per month for international services can’t get the job done.  I assure you of that.
Stupid means that a company spends $150,000 on a small booth at a gigantic trade show, but won’t spend a few thousand on a PR firm to secure them interviews while they are there.
Stupid means that a company produces items that are marketed for tens of thousands of dollars apiece – and bought by thousands of customers, but doesn’t have the money to commit to a momentum-building PR campaign that, over the course of a year, will cost the company the same amount as a single one of their products will cost a single customer.
Of course, there are also smart Israeli companies, and they are a pleasure to work with.
Smart means that a company gives its agency access to as much information as possible so the agency can decide which items may be newsworthy.
Smart means that a company provides its agency an efficient, but reasonable budget, so the agency will feel motivated to provide outstanding service.
Smart means that a company is just as interested in the constructive feedback a journalist gives when the answer is “no,” as they are in securing the “hit.”
Smart means that a company considers PR to be not only a marketing function, but a corporate function as well, since positive PR will impact all audiences positively and negative PR will impact all audiences negatively.
So here’s the kicker, which is also simple …
Over my five years here, I’ve found a direct correlation between a company’s ability to be smart versus stupid, and a company’s likelihood to be successful versus unsuccessful.
Tags: brand, business, client, Israel, pr, public relations, smart, stupid
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Comments (6)
February 21st, 2010 at 1:49 pm Posted by David Airey
Hi Glenn, here’s hoping the next five years brings many more smart clients. Thanks for visiting my Logo Design Love website, by the way.
February 21st, 2010 at 5:06 pm Posted by Claire Thompson (claireatwaves)
I don’t know any freelance that could manage international PR for $1k a month, simply because any kind of co-ordination of people, regional, national or international, needs a lot of time. Unless of course, they’re inexperienced and think that all that’s involved is cut & pasting reports .
I do, however, find the implication that freelancers are somehow second rate galling and, frankly, insulting.
Whilst there is every shade of freelance from ‘can’t get a job’ through to ‘kick ass’, there is equally every shade of agency from ‘charlatan’s who tie you up like a kipper for a year and deliver nothing’ through to, you’ve guessed it, ‘kick ass’.
I have years of hard earned PR experience, gained working with both big brands and start ups, agency and in-house, from simple advice & training through to full blown international campaigns. I can say categorically that ’smart’ is about ensuring that both parties, PR and client, work well together, understand the job in hand and are happy with the deal that they have forged together.
Stupid, on the other hand, is thinking that just because you have a smart expensive agency with flags and fountains, you are going to get anything other than a straight out of uni graduate, worked to the bone and unsupervised, pumped full of overblown promises and plotting their escape at the first opportunity. (And somewhere along the line clients will be paying for the flags and fountains).
Whilst I agree with many of the sentiments in this article regarding spending enough to get the job done, money spent & size of agency guarantee nothing beyond the bill each month & how many people you’re paying for. Much more important is adequate resource, chemistry and ability to deliver.
February 21st, 2010 at 6:40 pm Posted by Glenn Jasper
Claire – I respect everything you’ve written above, and it sounds like you and I would see eye to eye on many things. I have tremendous respect for freelancers, and I know some of them are among the best in the PR business. That is why I referred in the piece to a “second-rate freelancer.” I have absolutely no problem with first-rate freelancers.
February 22nd, 2010 at 1:22 am Posted by Claire Thompson (claireatwaves)
Glad to hear it!
February 22nd, 2010 at 4:10 pm Posted by Jeff Trexel
Glenn, interesting post. Great to see you are doing well!
Jeff
February 23rd, 2010 at 6:42 am Posted by Alan Weinkrantz
Part of the problem is simple: most of the tech Israeli companies OEM or license their technology to branded names like Intel, Dell, HP, Microsoft, or partner with them for co-distribution agreements.
Most CEOs have a simple, though naive outlook – “If we only have 25 companies in the world who we can possibly do business with, and we know who we are, what the hell do I need PR – or an professional PR firm for?”
Secondly, with the commoditization of PR services and the belief set that all you have to do is write a crappy press release, put on BusinessWire or PR Newswire, and that’s it, many companies see no value in paying for valued services from PR pros who get it, are well connected, and understand the B 2 B social web.
There remains a constant of shopping on price and not understanding that you really do get what you pay for.
While this comment may seem to be negative, it’s actually a positive one. Finding good PR counsel is very much a self selecting process. Those of us in a position to do so, will often shop the client to be as much as they may shop for an advisory services firm. After the budget issue is resolved, I look for a great management team, sound IP, high barriers to entry, and a will to sustain a minimum six month relationship.
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