| MAIN FEATURE >
Inside the PR game
Written by: Jason Hovet, Klára Smolová, Petr Vykoukal
Photo by: Vojtěch Vlk
PR. The acronym that's become both
noun and verb - and one of the hottest employment sectors. At the
same time, PR in the minds of many equals the manipulation of information.
What's the real story behind the mythical image?
A JOURNALIST of a daily newspaper is approached by a consultant
from a small PR company with an offer of CZK 50,000 to get an interview
with his client published. Local media are offered a press release
about how one Czech steel company helps artists for free. It can
be published, but under one condition - the photos must also show
the general director of the company. A multinational invites selected
journalists for a presentation of their product in Munich, Madrid,
or the Canary Islands - transportation and accommodation covered
by the company.
These are just a few examples of typical public relations (PR)
practices. As a young sector in the Czech Republic, PR has been
maturing rapidly. But the border between various types of communication
- PR, marketing, advertising or lobbying - is still unclear, as
well as the ethics of some of the practices. How well is PR doing
to improve the sector's less-than-shining reputation? Or, in other
words: how well is the sector "PRing" itself?
A rite of passage
Public relations has come a long way in the last 15 years, and
Michal Donath has watched the transformation firsthand. After
working as a stringer for western news agencies, Donath took
his contacts in media and government to the realm of PR, starting
with Burson-Marsteller in 1991. Seven years later, he bought
the international agency's Czech and Slovak branches, and now
sits as managing director of Donath-Burson-Marsteller. "In
the early days," Donath explains, "PR services were
understood as organizational support." As many western countries
were storming the market then, clients mainly wanted help to
launch new products or introduce their company's name on the
market. So services were not that sophisticated: writing a short
press release, organizing a party, or holding some event or press
conference, where the PR professional's biggest responsibility
was making sure all the journalists came. "Those were the
pioneer days when everything was simple, when every name was
a novelty, so it was a relatively easy sell," Donath points
out, adding that "there was limited competition."
By the mid-90s, that had changed with more competition. This coincides
with a maturing of the media, which was also becoming increasingly
aggressive. "Companies started to realize that media relations
are something very important," Donath says, adding at this
time, DBM (then only Burson-Marsteller) sold its first media training
courses. "Clients started asking for a different kind of service," he
adds. Jiří Hrabovský, director of Ewing Public Relations, who used
to work as a journalist until the beginning of 'the 90s, says: "Hand
in hand with the growing demand from clients, the PR scene was
maturing and the know-how of agents improved. One contributing
factor was the entrance of many foreign PR firms on the market." Value-added
services started to develop, which basically saw more consulting
and a closer cooperation between agency and client. At the same
time, according to Donath, "companies began using different
ways of communicating their issues." Thus lobbying was born
in the Czech Republic.
Today, PR, marketing, advertising, and even lobbying seem to blur.
The general public - as well as some professionals in the industry
- don't see the difference between them. Maybe this can be attributed
to the fact that in some companies these areas of responsibility
fall under the same department. According to Mikoláš Černý, director
of PGM and co-founder of the Komora PR (KoPR), another reason for
confusion is that "in the PR sector people from the advertising
branch appear and have the feeling that everything can be bought." Presum-ably,
that's not how PR works. Milan Hejl, managing partner at AMI Communications,
explains: "PR stands on the offer of information and data,
and a willingness to comment and discuss topics; it never pays
for space in media and has no control over the final result. In
advertisement you have complete control over the published materials,
but you have to pay for space."
Bad reputation
Four years ago, the Association of Public Relations Agencies
(APRA) initiated a study among journalists to find out how
PR services were perceived. From the pool of 300 journalists
approached, about 90% stated that one of the ethical principles
expected from PR consultants is to respect the truth, and not
to spread lies or misleading information. But when asked whether
they really are respected, only 20% responded in the affirmative.
Among the negative factors influencing the perception of PR,
those most quoted were: suspicion of corruption and attempts
to bribe journalists (18%); annoyance (16%); and lying or spreading
misleading information (10%).
If the research was conducted today, the results would probably
be more positive. Still most PR professionals won't deny that
the business has a bad reputation. They also agree that the blame
is a two-or three-way street involving agencies and journalists,
as well as clients. The main problem is between PR and the media. "I
think there is friction between journalists and PR agencies," Donath
admits, adding that "this stems from a lack of professionalism
on both sides." Černý perceives a similar situation. "There
are a number of people working in PR today who don't have a basic
idea how reporters work and what the priorities of the media
are," he opines.
It's not just PR professionals who have a flawed understanding
of PR's relationship with the media. Donath recalls one tender
he was involved in that inquired about his skills in "media
lobbying". A strange term perhaps, but Donath admits there
are firms who feel the media can be easily manipulated, or "lobbied." One
such practice is called by the western term "negative PR" -
or preventing a story from being published. "There are rich
companies who think they can afford anything," Donath says.
Hrabovský also agrees that some clients find it quite normal
to buy a so-called "PR article" (an article that is
actually advertising or PR, without being clearly distinguished
from the editorial content). He notes that such articles usually
lack the substance and impact as a real news article, and claims
that "everyone recognizes them".
However, as advertising is a prime source of revenue for publications,
most feel this is a problem fueled by advertisers and profit-hungry
media. Judita Urbánková, PR manager of Prague's Hilton hotel
confirms that she is commonly approached by magazines offering
to publish articles about the hotel - contingent on the hotel
placing ads with the magazine.
But the "I'll scratch your back, you scratch mine" system
also works the other way around. It's a common practice that
advertising sales people encounter: an advertiser's condition
for buying an ad rests on a story (a positive one, of course)
about them appearing in the magazine. And since the battle for
advertising space is so fierce, it's not unusual for media to
compromise. "If we have a big client that buys advertising
worth millions, and he wants us to write about him as well, we
try to come to some agreement and cooperate," admits Tomáš
Tkačík, general director of Springer media, a publisher of specialized
magazines about housing, construction, and the automotive industry.
Pavel Vondráček, editor-in-chief of Maxim magazine, says that
allowing this kind of PR pressure may be acceptable in the event
that the product or service in question is so good that the journalist
would write about it anyhow.
Improving the image
So it seems to be a learning process on both sides. Libor Ševčík, editor of
Hospodářské noviny's supplement "IN", who used to work as editor-in-chief
of the two biggest dailies - Mladá fronta Dnes and Lidové noviny - says that
things work the same way in other sectors. "It is not that unusual;
we are learning as we go," he says. "Lots of media now have their
own codes of ethics that clearly define under which conditions a journalist
can work with PR materials." He adds that PR practices must also adjust
according to how target groups are becoming "resistant" to their
influence. In his opinion, the temptations may be too strong for some journalists,
so it is up to the publishers to create conditions that prevent unethical
behavior. The richer the publisher, the stricter the rules are, says Ševčík,
while Maxim's Vondráček puts it simply: "One way to protect the editorial
team is by paying high salaries."
Rick Butler is an American freelance writer who has worked not only in the
US, but also in many European countries, including the Czech Republic. He points
out that PR is essential for both industries and journalists, but says they
must learn to coexist. "PR is about cultivating communication and getting
access to information. That's the key. Journalists need that access," Butler
opines, although he admits that responsibility for veracity comes down more
to the journalists than the companies. He stresses that once companies learn
better how to use PR, the market will become equitable.
Tkačík of Springer media also thinks it is up to the journalists to stay objective. "If
the journalist is good, then even if he accepts an invitation from a company,
let's say for an all-expenses paid presentation trip, he will still remain
objective," he says. For better or worse, the level of ethical behavior
in journalism typically mirrors the behavior of the society in which it operates.
Painting a less than rosy picture of the local environment, Vondráček says
that "there is no real threat that if the journalist behaves unethically
he will ruin his career."
On the other hand, Hrabovský believes that this is a "generational" issue.
In the years to come, he says that improving business conditions will produce
more "good" journalists and PR agents. The learning experience for
both sides is now starting in the classrooms, at high schools and universities
where ethics is an important part of curriculum. Interestingly, as the industry
begins to show maturity, both PR and media professionals are getting younger
and younger. Thus a more ethical environment for the fair exchange of information "will
come with time," according to Donath. "People will realize that doing
business properly is better in the long-term," he predicts.
| What
is PR?
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Michal Donath Photo:
archiv
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Just as the business of
PR has evolved in the Czech Republic over the years, so
has its definition.
"If you go around Wenceslas Square and ask what is
public relations, everybody will tell you something completely
different," says 14-year PR veteran, Michal Donath,
managing director of Donath-Burson-Marsteller. He also believes
the same will happen in many boardrooms around the country.
The problem of defining PR is that there are a variety of
activities that make PR what it is - and isn't. PR now sees
two general areas: consulting and organizing. The former
offers more value-added services like setting strategy, media
training, crisis communication and, generally, closer cooperation
with a client. While the second area is simply organizing
press conferences, parties and other functions.
Simple enough, but to many people, including those in the
business, PR is much more. For instance, many consider lobbying
to be public relations. "PR and lobbying are not connected," insists
Donath, although he admits the line between the two is "fuzzy".
The now too popular PR article in periodicals is another
thing PR isn't. "This is advertising," he maintains.
Donath feels a problem is that firms too often use the term
PR vaguely and don't distinguish the type of PR services
they are offering. Jiří Hrabovský, director of Ewing Public
Relations, is not surprised that people confuse PR with advertising
or other forms of communication. "It all belongs under
the umbrella of marketing and they dissolve one into another," he
claims. "It is not possible to do PR without advertising
and vice versa. If marketing is supposed to be good, you
have to combine all aspects."
Hrabovský offers a concise definition: "PR is a corporation's
structurally managed communication process with the external
world". Although every client has different needs so
every PR plan is individual, but it should always include
corporate and media communication - approaching concrete
journalists, picking and presenting information, follow up,
and monitoring.
Most PR professionals can agree that PR is for building the
reputation of a client, nothing more. "My definition," Donath
says, "is that PR is creative work with thruthful information." Then
he smiles and worries that his answer could be spun the wrong
way.
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Money as motivation
With all of the controversy and criticism, why has
PR become a choice destination for graduates?
"PR OFFERS A FAST-RISING well-paid career," says
Milan Hejl, managing partner of AMI Communications, summing
up the reasons. His proof comes in the form of the weekly
applications he receives from anxious candidates. Libor Ševčík,
editor of Hospodářské noviny's IN magazine, is even more
cynical. "They have an easy life. Money is poured into
this industry."
Milan Novák, branch manager at Grafton Recruitment, confirms
that the money part can be attractive. "Companies are
prepared to pay for the top candiates," he says. This
can mean monthly managerial salaries from CZK 50,000 in medium-sized
firms to CZK 100,000 in the biggest firms, according to informal
surveys conducted by The Prague Tribune. According to APRA
research, in PR agencies hourly rates can range from a minimum
CZK 1,600 for an account manager to a maximum CZK 8,500 for
an agency director.
Hana Jahodová, who oversees the PR program at the University
of International and Public Relations (VŠMVV), states other
reasons: "It is work with people and for people. It
demands the use of modern technology and it's dynamic. This
particularly attracts young people to this sector." Novák
agrees: "The marketing and PR industry is generally
very attractive nowadays because the job is creative and
involves a lot of contact with people," he says, adding
he's seen an increased interest from the client side, too.
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To outsource or not to outsource?
Although outsourcing is considered inevitable in
a firm's so-called secondary activities, PR is one of these
support areas which may suffer from it.
ACCORDING TO Judita Urbánková, PR manager in Prague's Hilton
hotel, the job is too complicated to outsource, and requires
someone who is fully involved. Although Urbánková is in charge
of both marketing and PR, she admits that "we are considering
hiring an agency for the marketing part." The reason
for outsourcing marketing instead of PR is simple - a media
agency can get lower prices for advertisements, and it is
much easier to outsource.
Besides that, "building a relationship with journalists
usually require years," Urbánková notes, after working
in hotel PR for five years. "It took around three or
four years untill the journalists started to call me themselves," she
says. Her knowledge of topics covered by respective journalists
is so detailed, that she knows whom to call about specific
topics. Transferring this knowledge to an agency would be
a lenghty process.
At the Ministry of Finance, all communication with journalists
is done by a nine-person press department. "Hiring an
agency would be more expensive," says Marek Zeman, the
ministry's press department head. However, Plzeňský Prazdroj
uses local PR agencies for each region it operates in. "Working
with a PR agency allows us to employ a wider base of media
contacts and the detailed knowledge of the actual media market," says
Prazdroj's spokesperson, Alexej Bechtin. "This is extremely
valuable in the regions."
Another approach is to hire an agency to share excess work
and do specific long-term tasks. "This area (PR) is
highly cyclical - sometimes there are tasks that should be
dealt with quickly and for which we lack the internal capacity
to cope with, so we hire an agency and pass this work on
to them," says Pavel Hejzlar, communications manager
in ČSOB. He claims that having internal staff solve excess
tasks is more expensive than outsourcing it.
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Industry watchdogs
APRA (Association of Public Relations Agencies)
aims to raise the PR standard - both professionally and
ethically - in the Czech Republic. But many firms, especially
smaller ones, complain about stringent membership conditions.
Indeed, with 24 members, APRA only covers about a fifth
of the PR agencies operating here. But now there's an alternative
association.
MIKOLÁŠ ČERNÝ saw firsthand the closed-nature of APRA and
felt that smaller firms should have a chance to belong to
an organization. For nine years, Černý was director of Previa
until he sold his share in 2004 to dedicate his time to PGM,
a second firm he had started in 2003, which concentrates
on crisis communication. After leaving Previa (and thus APRA),
he helped to found Komora PR, a new association that started
operations in October and already has 13 members with combined
turnover of CZK 80 million. "One of the criticisms of
APRA was that it was a closed association and had difficult
conditions for accepting other agencies," Černý says. "Therefore,
when I was invited to help establish KoPR, I advanced a more
open platform."
Naturally, APRA doesn't see itself as a closed association.
Its director, Ludká Raimondová, uses Bílý Medvěd, a Brno-based
agency that was recently certified, as an example. "It's
evident that the ability to fulfil requirements isn't only
bound by the size or location of the business," she
argues, "but depends mainly on how well the agency is
managed." Still, speaking for APRA, Raimondová welcomes
KoPR's founding. "If some group comes into being on
the market supporting high professional and ethical standards,
then we welcome this initiative and believe in cooperation," she
says.
KoPR's Černý also sees room for cooperation, mainly in the
exchange of information and in overseeing the state of the
PR industry. "The work of APRA and KoPR should be to
monitor development and, in cases where it has evidence of
a firm acting unethically, to inform the professional community," he
believes. Nevertheless, like Raimondová, Černý believes the
professional level of a firm depends on its leadership. "Besides
[regulating the market with] generally accepted ethical norms,
it's much more important what personal ethics the owner or
director of a PR agency has," Černý concludes.
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The next generation
The last 15 years have been a learning experience
for all parties connected to the PR game. Now a number
of schools recognizing PR's growing influence are teaching
future (and current) professionals 21st century PR.
The biggest example of PR's rising position in the marketplace
can be found at Charles University. Starting this school
year, the Faculty of Social Sciences is offering for the
first time a bachelor's degree in marketing communications
and public relations. "The interest of applicants was
huge," says Jana Drdlová from the faculty. This program
is just one more in a list of schools that have accepted
their first students recently. In 2002, the University of
International and Public Relations (VŠMVV) was accredited
to offer three-year degrees. Currently, some 60 students
are in the program with the first graduates expected in June
2005.
While theoretical studies can't be ignored, the programs
also want to stress the practical side of study. "Students
of VŠMVV in the course of their studies will spend several
weeks getting practical experience [inside firms and PR agencies]," says
Hana Jahodová from the school. Students also have the opportunity
to be involved in the Akademie PR, which was started by the
Association of PR Agencies (APRA) in cooperation with the
Faculty of International Relations at VŠE. In its fifth year,
the program aims to give students a more inside look at PR
through seminars and internships.
With a large stake in having well-trained PR professionals,
APRA is also involved in the London School of Public Relations,
which runs a 15-seminar course designed for employees of
PR agencies and companies. Similarly, the Czech Institute
of Advertising and Marketing Communication (ČIRMK), which
was founded five years ago by the Association of Czech Advertising
Agencies (ACRA) and VŠMMV, offers courses in public relations,
as well as marketing and media communication, and has trained
more than 250 people from a diverse group of companies.
As in the universities, an emphasis is put on real-life experience-and
ethics. "[The course] includes training practical skills
where students solve specific problems under the supervisory
of professionals," says ČIRMK managing director, Roman
Němec, adding that 95% of lecturers are working professionals. "Only
real and practical problems are solved. We aspire for students
to gain not only knowledge but also a realization of their
responsibilities [as PR professionals]."
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