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In issue 17 of esPResso...

Latest News: PRCA investigate idea theft, PR goes all a Twitter, Sun website most read
Blog Review: The PR challenge of political scandal, The need for better car PR
Ask The Unicorn: The pros and cons of going freelance
Well Quoted: Stephen Waddington, MD of Speed Communications
Useful Distractions: Even more Twitter-based time wasting!
 

 
 

 
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To apply, please email your CV and a covering letter to rhiannon@spring-pr.com
 

 
90% OF AGENCY CHIEFS RECKON THEIR IDEAS HAVE BEEN STOLEN
Following on from that recent PR Week report on growing concerns in the PR agency sector about ideas being stolen by potential clients at pitching stage, the PR Consultants Association has revealed that 90% of the agency bosses on its PR Leaders' Panel believe companies have used ideas they have presented in unsuccessful pitches without compensation.

Sara Render, CEO of Kinross & Render, called on the PRCA to act on idea theft in the comms sector in a recent PR Week interview, and will now lead an investigation on behalf of the trade body to assess how widespread the practice has become, and what can be done to combat it.

Of course, it's a common fear for any creative agency pitching for work that there is always a risk a potential client may knock back their proposal, but then use the ideas included in it for an in-house campaign, or even hand those ideas over to a rival agency. On the flip side, it's not uncommon for different agencies to pitch similar ideas to the same client for the same brief, so it can be hard to know what ideas are truly original, and whether or not a company really did steal any intellectural property from unsuccessfull potential suppliers. Agencies are paranoid their work will go unrewarded, clients are concerned they may be falsely accused of idea theft. But how big a problem is it, and can anything be done about it?

The PRCA included questions on the topic in its most recent Leaders' Panel survey, and 90% said they were sure ideas they had pitched had subsequently been used by a client without their agency receiving any compensation. About half said that the problem arose with about 5% of pitches, while 35% reckoned it was a more common issue than that. Most didn't feel the problem had worsened since the economic downturn - though just under 35% said they thought it had, while just under 10% said idea theft was definitely becoming more common.

Responding to the survey results, and confirming his organsiation was planning to investigate the issue further, PRCA Director General Francis Ingham told reporters: "The majority of clients recognise that intellectual property belongs to the agency. [But] the frequency with which a minority of clients abuse the trust agencies put in them when pitching is unacceptable. I'm delighted to announce that Sara Render of Kinross+Render and Gerry Hopkinson of Unity have agreed to lead a group examining how we can ensure that agencies are fairly rewarded for their effort and creativity".

 
GOOGLE DENIES SMEAR CAMPAIGN
Google recently denied allegations that it has been conducting "an unsavoury and defamatory smear campaign" against pressure group Privacy International, who have been busy raising concerns about the web firm's recently launched (in the UK) and much talked about Street View service which provides online photos of streets all over the country.

Privacy International director Simon Davies wrote an open letter to Google boss Eric Schmidt last month, accusing the web firm of feeding journalists misinformation to discredit his lobbying group after he spoke to the press about the privacy issues of the Street View service. In particular, Davies says that he's been told by journalists that Google's reps have been secretly suggesting there are links between Davies, and his company 80/20 Thinking, and the web firm's rivals Microsoft; the suggestion being that link causes Privacy International to be biased against Google services.

In his open letter, Davis writes: "Neither Microsoft nor [Microsoft's PR agency] Burson-Marsteller has ever paid money to either Privacy International or 80/20 Thinking, nor has any benefit in kind been given". He adds that Privacy International had previously criticised Facebook for a change it made in its terms and conditions, and Microsoft have an albeit tiny stake in the social networking firm.

He concludes: "We are quite frankly stunned that a company such as Google would take steps... to peddle groundless conspiracy theories in an attempt to besmirch a critic. You should be ashamed of your actions. Google is coming across as a desperate company resorting to desperate measures".

A spokesman for Google denied Davies' allegations of secret briefings, adding that they quite openly accuse their adversary of being biased against them because of his commercial affiliations, and that they have done so for some time.

According to the Guardian, a spokesman said: "Simon Davies regularly attacks Google on privacy grounds. It's no secret that we believe the credibility of his criticisms is undermined by the fact that, alongside his work for Privacy International, he acts as a consultant to a number of technology companies who are direct rivals to, and in some cases vocal critics of, Google – a fact that he rarely seems to disclose in his press releases or comments to the media".

   
TWITTER GUIDE FOR PR PEOPLE
So, should everyone in PR be quickly embracing the social network phenomenon of the moment, and getting their companies or clients onto Twitter?

Well, one digital PR firm, Immediate Future, reckons PR people everywhere should be thinking about how Twitter might figure in their corporate communications, and they have published a guide to help those less familar with the micro-blogging sensation get their heads around what it's all about.

The free guide outlines the opportunities and possible pitfalls in using the latest social media phenomenon as a communication tool, and includes advice for new users, some case studies of how Twitter has been used by PRs, some useful tweeting jargon and details of some journalists they recommend people 'follow' on the social networking website.

Immediate Future MD Katy Howell told PR Week: "Diving head-first into the social media space is risky, if you don't take the time to understand the environment and its nuances, you risk getting things badly wrong and damaging your brand reputation".

To get a copy you need to email Immediate Future – details here

 
TEN REASONS TO NOT LET YOUR CLIENTS TWEET
Or perhaps PR people shouldn't be signing their companies or clients up to Twitter at all. Or at least not without first considering if it's really right for them.

One US marketing expert, BL Ochman, has cautioned corporates about rushing into the new social networking fad, providing the Advertising Age website with "10 Reasons Not To Tweet". The list includes various reasons a company might be thinking about communicating via Twitter, or the processes they plan to employ when Tweeting, and explains why those reasons or processes won't work.

The list includes:

  • You think using Twitter is a social-media strategy. It's a tactic, a tool, not a strategy. It works if you already have an online following who'll view your Tweets as a way to interact with your company on a human level.
  • You are not going to respond when people direct tweets at you. Twitter is like the new water cooler. If you walked out to the water fountain and talked nonstop to people gathered there, they'd certainly be happy when you left. Ditto for Twitter.
  • Every tweet has to be approved by legal. Twitter is a social network where conversation is fast and interconnected. If you have to wait a day, or even a few hours for your 140 character Tweet to gain legal approval, Twitter will be the wrong platform for you.
  • You think all that matters on Twitter is getting a lot of people to follow you. Quality trumps quantity.
If all this is making you think twice, you should check out the full top ten on the Advertising Age website here.
   
RED TOP WEBSITE MOST READ
Proving, I think, that cyberspace has finally gone properly mainstream, the latest official readership figures for the online editions of UK newspapers show that the Sun's website was the most popular in February.

The red top's website has leapfrogged over those of The Guardian, The Telegraph, The Mail and The Times to become the most read newspaper site in the UK, possibly aided by its extra online coverage of the Alfie Patten story and Jade Goody's cancer struggle.

Commenting on the online readership figures, Sun Online Editor Pete Picton told reporters: "Lots of things came together last month. We have been rewarded by work that [search and development manager] Chris Chivrall has been doing around social media, adding Digg buttons to our story pages, and we've also benefited from the site redesign before Christmas that is starting to pay off".

The Guardian, previously the most read website according to the Audit Bureau of Circulations Electronic figures, fell to third place last month, putting it behind the Telegraph as well as the Sun.

Telegraph.co.uk Digital Editor Edward Roussel said his website was benefiting from a revamp based on the realisation that good 'curation' and story classification is as important as speed and quantity.

He told the Guardian: "The mistake we all made early on was thinking it was all about speed and volume, and really that's wrong. Speed does matter, [but] it's also the quality of your curation of content that makes you a good news organisation. Twelve or 18 months ago it was all about getting stories out but now it's about how we tag, organise and curate those stories, how you combine them with info-graphics or SEO".

 
JACK CELEBRATES RIVALS HEARTY DEMISE
An Oxford-based radio station got some press coverage from a rival's rebrand last month by staging a funeral march for the other station's now axed call sign.

Radio company Global Radio has been busy rebranding many of the local radio stations it acquired when it bought rivals GCap last year under the Heart FM banner, essentially turning Heart, previously a London and Birmingham based operation, into a quasi national station. As a result some of the UK local radio industry's oldest brand names, including Fox FM in Oxford, have been disappearing from the dial.

When Fox FM rebranded as Heart last month, JACK fm, a relatively young rival that broadcasts to the same market, sent some of its staff down the city's high street with a coffin, and a banner that read "JACK FM, 100% Oxfordshire, Fox fm, 100% dead".

The implication, presumably, is that by becoming part of the Heart FM network the former Fox FM will no longer be a truly Oxfordshire-based radio station. How many people saw the mini-fake funeral march I don't know, but the cheap stunt got a few column inches in the local press and some commentary online, so job done I say.

Pictured courtesy of JACKfm via Radio Today

 
OTHER RECENT PR NEWS STORIES ON UNICORNJOBS.COM
• Borkowski buy Beatwax here
• Anti-capitalists spoof FT here

 
The blogosphere is where it's at you know. In every issue we recommend recent entries on PR-based blogs from around the world.
   
From A Close Second: The PR challenge of expenses scandals

Richard Houghton, Vice-Chairman of the PR Consultants Association, and a partner at B2B consultancy Carrot Communications, recently made some interesting observations about the efforts of various political types to justify their more questionable expenses claims. Writing on his personal blog, A Close Second, Houghton considers the PR challenge for those who have been caught up in the media's recent onslaught of dodgy expense claim stories (dodgy in the sense, of course, that they normally comply with parliamentary rules, but seem like an excessive use of tax payer's money nonetheless).

He first refers to Tory MP Eric Pickles (pictured) and his attempts to justify claiming expenses for a second home in London despite the fact his constituency home is only 40 miles from Westminister. Houghton: "Pickles' laughable defence on 'Question Time' was one of the worst I've ever seen. Apparently the audience didn't understand that Westminster works like clockwork so he has to be there on time; public transport is unreliable and as a result he had to work really long days! The audience, with good reason, simply laughed at him".

Houghton was more impressed with the way the husband of Home Secretary Jacqui Smith – Richard Timney – dealt with those embarrassing and much reported revelations that he had charged the rental of two 'adult films' to an internet account paid for by his wife's expenses. Houghton observes: "He handled the situation as best he could. He stepped outside the gate of his house, read a short statement, accepted the anger his actions will have created, said sorry repeatedly and then stepped back through the gate. Short, to the point and direct. I do not think that it will save his wife's job but if you had to advise him this is what you'd suggest".

You can read Richard Houghton's blog here

 
From Tim Dyson's blog: Car firms should do more PR

"Context Analytics recently published a paper showing that for certain brands PR was way more effective than advertising. The brands most affected were those which had 'high involvement' products such as computers. High involvement products are ones where consumers typically do quite a bit of research before they make the purchase.

I'd put cars firmly into that category and yet unless I'm blind I'd suggest that most car makers have done a pretty poor job on their PR. Instead they seem determined to convince people using TV adverts that they should rush out and buy their new vehicle. I'm of course basing this thesis on little real science. I did do a Google news search on major car brands and if you ignore all the bad articles about how deeply troubled the industry is, you see little that appears to be the result of a PR campaign.

A great example to me of a missed opportunity is Toyota's launch of the new Prius. The car doesn't go on sale until 'late Spring' but it is already on the Toyota website. Given how popular this car is I'd have expected there to be a lot of PR outside the traditional trade press. As yet I've seen nothing and as Prius owner (or Pious as a friend of mine calls them) I tend to notice when images of the less than attractive vehicle appear in the paper.

For the record then I'd strongly advise GM, Ford et al to forget their expensive ads and focus on getting the argument across using the media and social media. Assuming Context's study is accurate, they'll spend less and sell more".

Read more from Tim's A View On PR From Silicon Valley blog here

 
I am currently between PR jobs and have been offered some freelance work – what are the implications of working freelance?
 
There are both advantages and disadvantages to working as a freelancer. Some people like the advantages so much they choose to work as a freelancer on a permanent basis. Others only choose to work freelance in order to get a 'way in' to a certain industry or company, or to fill a gap between two full time roles.

As a freelancer you essentially work for yourself – the person who hires your services is a client rather than your boss. For them, you are a supplier rather than an employee. Some freelancers are based at their clients' offices, work normal offices hours and sit alongside full-time employees, and as a result, on a day to day basis, their freelance status isn't obvious. However there are a number of legal differences between employees and freelancers.

Dis-advantages

First, it is generally easier for companies to get rid of freelancers. When a company no longer requires the services of a freelancer, for whatever reason, they can just terminate their supplier contract. The freelancer enjoys few of the benefits that a full-time employee gets under law – in particular regarding job security. Indeed the reason companies often take on freelancers rather than employees is because they have a temporary increase in workload. By taking on someone on a freelance basis the company can use their services while workload is high, and quickly end their contract once things are back to normal. So, freelancers are only ever assured work, and therefore an income, in the short term.

Second, a number of 'liabilities' normally taken on by an employer, sit with the freelancer when they are hired in that capacity. This is most relevant in terms of sickness and compassionate leave. As a freelancer you have no automatic rights to sick pay, or time off for funerals or family illness, and when you take days off for this reason in theory you won't be paid. Which means that coming down with the flu for a week suddenly becomes quite expensive. This may also apply if a company shuts down over Christmas – what for employees might be a two week free holiday, for a freelancer can be ten days less income.

Third, as a freelancer rather than an employee you will be asked to invoice and will be paid like other suppliers, rather than receiving a monthly pay packet at the same time as all the other employees at the company. If you are freelancing for a good company this may not make much difference, except you may be paid on a different day of the month from everyone else. However, whereas most companies will meet their payroll obligations without fail, supplier payments may sometimes be delayed for cash flow reasons. Plus, when it comes to your first payment, if you bill at the end of your first month of work, but the company has a policy of paying invoices only after 28 days, you might not see your first lump of cash until two months after you joined the company.

And then there's the tax. Whereas employers pay the income tax and national insurance contributions that their employees owe the taxman, so that workers never have to worry about such things, that is not the case for freelancers. You yourself have to pay national insurance contributions and income tax on your earnings directly to the Inland Revenue – meaning that about a quarter of what you bill to your client will have to be passed onto the taxman at some point (freelancers normally pay NI monthly and income tax in an annual lump sum).

Aside from the challenge of remembering not to spend all the money you earn, only to be presented with a big tax bill at the end of the year, this also means you will have to register with the Inland Revenue as being self-employed and provide an annual tax return in which you declare your earnings (check here for info). A tax return isn't as daunting as it probably sounds, and you don't need to be an accountant to fill it out, though a lot of freelancers do pay an accountant to do it for them – which will normally set you back a few hundred quid.

Advantages

So, you have no job security, don't earn when you're ill and have to do your own tax return. What, exactly, are the benefits of being freelance?

Well, depending on your agreement with the company you freelance for, normally you have more freedom. It's more common for freelancers to work at home, to work their own hours, and to take impromptu days off that it is for employees. Freelancers can also normally work for multiple companies at the same time – providing there are enough hours in the day – so a freelance career can offer more variety too.

And there are financial benefits as well. Freelancers normally charge a higher hourly rate than employees doing the same job. Not only that, but freelancers might get away with paying less tax because they can deduct 'business expenses' from the money they earn before tax is calculated (and because tax is a percentage rate, that means less tax to pay overall).

'Business expenses' means any money you spend securing or doing your freelance work (so printing business cards, buying stationery or a new laptop for work purposes, or travelling to meetings). There are obviously rules about what you can and cannot include here, which is another reason many freelancers use an accountant to do their tax return – where these expenses are declared – because they know what you can and cannot claim. Even if you do hand all this over to a specialist, you do need to remember to keep a receipt for everything you buy which could be set off against tax.

So, to conclude: less job security and more liability, but possibly more freedom and more short-term money – which would you prefer?

One last point

Because of the potential tax benefits enjoyed by freelancers, and the reduced liability for companies who use their services (instead of hiring employees), sometimes a firm might hire a freelancer to do what is basically a full time job – the would-be employee agrees to forego some of the security that comes with employment because of the tax breaks. Be warned though, the Inland Revenue doesn't like this, and can force companies to convert full time freelancers into employees. As a general rule freelancers should only be hired because a certain skill or general manpower is needed for a short-term project, not as an alternative to properly employing a workforce. Should a freelance contract you're being offered sound like a quasi-full time job, then it might be worth getting advice from a lawyer or accountant as to what the tax man might say.

If you have a PR or careers-related question, Ask The Unicorn at info@unicornjobs.com

 

After starting out as a journalist, Stephen Waddington moved into PR in the early nineties, specialising in tech PR and working with both technology start-ups and some of the world's largest tech brands. In 1998 he co-founded tech PR firm Rainer PR, which subsequently became part of the Loewy group.

Last month Loewy announced it was merging its various PR businesses to create a new multi-discipline agency better positioned to deal with the challenges, and opportunities, presented by the changing media landscape, and the increasingly brand-savvy consumer.

Rainer's employees will become the tech team at the new firm, Speed Communications, while Waddington will head up the new business as MD. We spoke to him about his career to date, and to get, well, up to speed on the motivation for creating Speed.

A few weeks ago you were MD of Rainier PR, now you're MD of Speed – what's all that about?
The fragmentation of the media, the rise of social networks, increasingly savvy purchasers and the recession are all combining to challenge the established PR industry hierarchy. We've combined Rainer with the other PR businesses within [parent group] Loewy and reinvented ourselves as a modern consultancy that is seeking to tackle this challenge head-on, in turn delivering assured impact for our clients.

Some people might think that you have to be a geek to work in tech PR, are they right?

To say that tech PRs are geeks is nonsense. Yes, a basic understanding of technology is a requirement. But an ability to place tech in a business or consumer context is far more important.

Do you think social media has a place in PR?
Absolutely. As I said, the media is fragmenting, and at the same time we're all sourcing and sharing information via networks, creating this so called 'social media'. This is a massive opportunity and smart PR consultancies are taking advantage of it.

Find out about Stephen's PR career before Rainer, and his typical day in his current role, by reading the full interview here.

 
This is possibly the most pointless distraction ever, yes, even more pointless than Google Streetview. And yet it's strangely hypnotic. Watch random Twitter tweets from across the world. Yes, that is it. Go be hypnotised here. Don't forget to try out 3D too.
 

 
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