Stop the Presses

Last week was a hot one for cable news. A tragic natural disaster in Myanmar, a compelling presidential campaign, and Jenna Bush’s impending nuptials all competed for air time amid the myriad other stories that beg for our attention in the 24-hour news cycle.

Even in the midst of all this news fodder, however, it was the story of a depraved Austrian man, named Josef Fritzl – who imprisoned his daughter in the cellar of their home, sexually abused her, and fathered her seven children – that was the most popular story on CNN.com on May 8 – more than a week after the story broke.

Given the jaded, desensitized nature of the average news consumer, this should come as no surprise. After all, if it bleeds, it leads. What is surprising, though, is the extent to which Austria’s image, reputation, and brand could potentially be tarnished by the actions of one allegedly criminally insane citizen.

Austrian-American author John Wray addressed this very issue in the New York Times –pointing out that Americans know very little about Austria. We like the Sound of Music. We know that it’s Arnold Schwarzenegger’s home country. But, we don’t know much else.

Now – when viewed in the context of a similar sexual abuse case from 2006 – Americans know that, as Wray put it, Austria “officially lead(s) the free world in the abduction and confinement of young girls in soundproof, subterranean apartments.”

Whether it recognizes it or not, Austria has a brand protection issue on its hands, and it would be wise to take timely action to balance the negative press. Parliamentary measures to better track sex offenders are a good start, but a larger gesture of good-will before the international community may be necessary.

Because of Austria’s declared neutrality, it may be in a unique position to play a leadership role in aiding the cyclone victims of Myanmar. Being on the front lines of a large-scale humanitarian effort such as this – or the ongoing effort to assist earthquake victims in China – would go a long way towards repairing the damage to Austria’s brand.

In any case, Austria needs to do something positive now – and be seen doing it by the international community.

2007 has been dubbed the year of the recall. 2008 is shaping up to be the year of the recall response.

The news that Wal-Mart will now require its suppliers of children’s products to meet tough new safety standards that go beyond mere compliance with government regulations – which was reported in yesterday’s Wall Street Journal by Joseph Pereira and Steve Stecklow – is just what the doctor ordered after a year in which more than 25 million toys were recalled.

By setting strict limits on the amount of lead and other heavy metals that its products may contain – and doing so without a government mandate – the world’s largest toy seller has set the standard around which its competitors must rally. It has taken a giant step forward in calming consumer fears and satisfying wary regulators. And, perhaps most important, it has branded itself as a leader in keeping our children safe.

Wal-Mart is running to the crisis, rather than running from it. As a result, it will now be perceived as part of the solution, rather than part of the problem.

As if we needed further evidence of the communications sea-change taking place before our very eyes, ABC executives announced today that they have created a new viewership measurement tool – demonstrating just how seriously they’re taking marketer concerns over the long-term effectiveness of TV advertising in an age of decreasing broadcast audiences. According to Nielsen, prime time viewers have dropped by six million in just the last year.

The move is consistent with recent reports that illustrate the force with which new media are relegating traditional media to silent film status.

Last month, Newsweek bought out 20% of its staff as it seeks to better serve a 21st Century audience.

In March, it was reported that circulation at top newspapers like The New York Times, The Washington Post, The Chicago Tribune, and The Dallas Morning News, had fallen by 3.9%, 3.6%, 4.4%, and 10.6% over the just the previous six months, respectively. Over the last ten years, readership has declined by 10% across the board.

And in February, a blogger became the first online-only journalist to receive a coveted Polk Award for legal reporting.

Even the National Press Club has established its own blog and is actively recruiting bloggers for membership – only 10 years after Matt Drudge’s speech in its own hallowed halls was characterized by some traditional journalists as “amateur hour.”

It seems that the amateurs are leveling the playing field – and closing a credibility gap that once defined cyberspace as the realm of kooks and conspiracy theorists.

Today, bloggers break stories and drive traditional coverage, viral videos spread perceptions with just a click of the mouse, and search engine rankings decide whose messages are heard and whose are largely ignored.

Today, new media is media. And traditional communicators would be wise to treat it as such.

A few weeks ago, former peace protesters of the old Rocky Flats Nuclear Weapons Plant outside Denver gathered for a 30-year reunion of their first demonstration at the now-demolished site.

For 10 years following that first protest, anti-nuke activists held vigils, fasts, and other protests outside the facility’s secured, barbed-wire fence. But when the U.S. announced reductions in its nuclear arsenal in 1988, ending Rocky Flats’ mission, the moment was bittersweet. The activists’ goal of halting weapons production at the site had been achieved – but the issue that had been their cause was dead.

Ultimately, the goal of any public interest campaign is to put itself out of business. An interest group can then close up shop or move on to new ventures. Unfortunately for many institutions and corporations, these groups often opt for the latter.

Remember those peace activists outside Rocky Flats? They miraculously transformed themselves into environmentalists, who for the next 10 years railed against the plutonium and chemical contamination that remained at the site.

Corporations must devise agile and flexible communications strategies that take the opposition’s malleability into account and anticipate the next attack. It may be a new headline-grabbing cause célèbre, but it very well may be the same old activists.

By now, most people who follow marketing have heard how Yum Brands CEO David C. Novak stepped up to the microphones after the 2008 Kentucky Derby and spoke glowingly of the event and his company’s famous brands – Taco Bell, Pizza Hut, KFC, Long John Silver’s and A&W – while a stunned national television audience looked on.

The grinning Novak seemed oblivious to the fact that second-place finisher Eight Belles had just been euthanized after breaking down at the end of the race. Immediately, the bloggers hammered Novak for his apparent insensitivity – as the value of Yum’s sponsorship of the prestigious sporting event began to evaporate.

Bob Costas of NBC said he told Novak and others at the winner’s circle of Eight Belles’ fate. But Yum Brands executives disputed Costas’s account and insisted Novak had no idea the horse was dying. Knowing how careful corporations like Yum Brands are about such matters, we have no doubt Novak was caught unaware and would have modified his remarks if he had only known about Eight Belles’ fate.

Who’s to blame for the catastrophe and what can we learn from it? Here are key points to consider:

1. A sponsor pays for an event and is therefore The Boss. The first rule for an employee is to make sure the boss isn’t embarrassed. Thus, NBC bears responsibility for ensuring Novak was informed of the tragedy before he stepped onto the podium to address millions of viewers. NBC failed on this point.

2. A corporation in today’s world must be vigilant, nimble and responsive to all activities on the Internet, where today’s brands now live and die. A simple, well-timed and heart-felt apology could have salvaged the value of the sponsorship. Yum Brands was deficient on this score.

3. This brings us to the most important lesson of all – big companies must now be prepared to act quickly, and if possible, in real time, to deflect Internet blog and web site attacks and criticism. The world is moving at hyper speed. There is no second chance.

There’s little doubt that China once viewed this summer’s Olympiad as the ultimate opportunity to highlight considerable national progress on the world’s grandest stage. Perhaps it still does.

But as the torch made its tumultuous journey through Paris, San Francisco, and points beyond, it became readily apparent that many view China’s political and economic progress as not nearly progressive enough.

China isn’t helping itself either. The latest picture? News photos of demonstration organizers lined up in front of armed police in court to hear their prison sentences, which range from three years to life.

In the eyes of the world, Beijing’s brand is in need of some polishing. And it’s not too late for China to take advantage of its Olympic opportunity and win more support around the world.

First, China must take advantage of the fact that the U.S. government, the governments of Europe, and hundreds of western corporations want the Olympic Games and China’s transformation into a global business power to succeed. It needs to reach out and develop third-party spokespeople from among those allies who can speak to the need for gradual change, not an overnight turnaround from a culture that is six thousand years old. These advocates can do so with the credibility that Beijing now sorely lacks.
Second, China must identify and engage forward-looking spokespeople from among its own business class, rather than government officials, to convey its messages. They are the credible faces and voices of the future that need to be communicating now.
And third, China needs to make a meaningful gesture – perhaps suspending arms sales to Sudan or announcing substantive talks with the Tibetan separatists. Such a move would show, rather than tell, the world that its commitment to reform is real and its hosting of the Games is justified.