News and Updates from 5WPR CEO Ronn Torossian

Tag: insights

Apple Poised to Enter News Business

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NPR recently reported that Apple just announced it will enter the news business. Well, the 21st Century digital aggregate version of that field in any case. iOS9 will, reportedly, be released with an app simply titled “News,” which comes equipped along with standard apps such as Calendar, Music, and Maps. The purpose of the app will be, essentially, a news aggregator. Pick your favorite sites and get all your news through a single app.

It’s an idea that’s about as new as disco, so why is Apple so excited about their version of something that’s been available for years? Because they know people will use it. They won’t be forced to, per se, but they also won’t be able to delete the app once they upgrade to iOS9. The app doesn’t have to cover new ground, it just has to be at least as user-friendly as the news aggregator app the customer is already using.

And, for those who have several apps they use to connect to the news they want, this app will prove a convenient space saver. Just like its predecessor, Newsstand, which proved to be an unwieldy failure. So, no guarantees of success here, but Apple is sticking to the plan that brought it this far. Give customers a convenient alternative they can’t get rid of and try to win them by attrition.
The message Apple is feeding the press is one of solidarity and innovation. News brands have lost power in the open market of the net, so why not figure out a way to help consumers navigate these uncharted waters? It’s an interesting approach that hopes to force publishers to filter their content through a product owned by Apple. Essentially, while providing customers a “convenient” experience, Apple is squeezing publishers in the hopes that, this time at least, they acquiesce to slapping an Apple on their delivery system.

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Clinton Under Fire for Association with African Church

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When you run for president, everything is under the microscope. So it’s likely that Hillary Clinton’s campaign team saw this coming. But the string of revelations and allegations about dubious charitable dealings cannot be good for the candidate’s campaign.

But now it’s gotten worse for the former Secretary of State. Until now, the allegations of charitable wrongdoing or malfeasance were easy for supporters to laugh off as dirty politics. Sure, the opposition in the media and on the campaign would get their shots in, but there was no proof to any of the alleged wrongdoing that tied it directly to Clinton.

But this latest round of allegations has been proven, and this time, it’s Hillary’s supporters that are upset. According to reports, the Clinton Foundation accepted up to $10 million from an African church that has made a habit of condemning gays, calling homosexuals “devils” and comparing homosexual behavior to bestiality.

While, for many candidates, this association may not be problematic, to date Ms. Clinton has made her support for gay marriage central to her social platform. In fact, her initial campaign commercial featured the marriage of a same-sex couple.
This all might be just more campaign season fodder for the talking heads if not for the extreme positions taken by this particular major donor. In addition to calling gays “devils,” the church also compared engaging in homosexuality to human trafficking. Given the nature of the very public extreme views, this may very well be the salvo that forces Ms. Clinton to comment publicly about the allegations of impropriety related to her charitable foundation. It’s one thing to have people who won’t vote for you up in arms. But when your connections disparage and condemn the very people you hope form the base of your support, it’s not a bad idea to get control of the message.

Ms. Clinton could say this is nothing more than a poor attempt at guilt by association. She accepted the donations through her foundation in goodwill, hoping to do some good in the world. That might be all it takes to turn this around, but probably not. At some point, in order to assuage doubts in her constituents, Ms. Clinton will need to come out against the extreme positions of this major donor. A tough eggshell trail to walk, to be sure.

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Crisis PR Situation: 19 Kids and Unemployed

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Popular TLC reality show 19 Kids and Counting has been pulled from the lineup after allegations of past sexual abuse by one family member on other family members was confirmed. In a further development, Josh Dugger, who admitted to the acts “12 years ago,” has also resigned from his position at the Family Research Council. It’s likely the blowback of this revelation will continue. Here’s the story:
Since 2008, the lives of the Dugger family have been watched by countless American homes. They were paragons of “family values” and the darlings of social groups and politicians alike. Then, in the wake of one article, it all came crashing down. In Touch Magazine reported that eldest Dugger child Josh, now 27, admitted to molesting several girls when he was 15 years old. At least some of those young girls were family members.

Since the article ran, TLC has released this statement: “Effective immediately, TLC has pulled all episodes of ’19 Kids and Counting’ currently from the air. We are deeply saddened and troubled by this heartbreaking situation, and our thoughts and prayers are with the family and victims at this difficult time.”

Josh Dugger countered the impending PR firestorm with a Facebook post: “Twelve years ago, as a young teenager I acted inexcusably for which I am extremely sorry and deeply regret. I hurt others, including my family and close friends.”
Possibly worse for all involved, TLC was running a “19 Kids” marathon the day the claims made the national news. erupted with rage.

Of pulling the episodes, one TLC executive said, “this is a family in crisis. It’s no time for a television show.”
TLC has yet to say the show will be canceled, only that it is being pulled for the time being. Are they testing the waters to see how forgiving the viewing public can be? Sure, Americans are willing to forgive just about anything…but a supposed paragon of virtue molesting his family members, then his parents covering it up for the better part of a year before they told authorities? That seems like a lot to forgive.

Child molestation is one of those things that Americans are rarely able – much less eager – to forgive. And what about advertisers on the show? Which brands really want to be coupled with that sort of baggage? Time will tell. Until then, that nameless TLC exec is right: this is a family – and a brand – in crisis.

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Marlins Frustrate MLB Fans

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When your favorite sports team advertises a major charity event hosted at their ballpark, it’s reasonable to assume at least some active team members will make an appearance. Reasonable, it appears to everyone but the Marlins organization.

Good Ideas Are Only The Beginning

It started off as a good idea, but the execution resulted in a ridiculous unforced error. In theory the annual “Fish N Chips” event gives Marlins fans a chance to mingle with players and play some fun casino style games, all for a good cause. However, this year, only coaches and new team manager Dan Jennings showed up. No players made it.

It may have been just a simple embarrassment, except that donors attending the event were expressly promised the opportunity to “rub elbows” with “your favorite Marlins players…” When it comes to money changing hands, even if it’s all for charity, “well, almost” just doesn’t cut it.

And this PR disaster could not have come at a worse time for the team. Currently being drug along on a seven-game losing streak, The team isn’t doing a lot to inspire fans on the field, so the event was a chance to earn back some lost goodwill and team spirit.

Backlash Continues..

The blowback was immediate … and it was harsh. One fan among thousands on Twitter reminded players they are paid handsomely to play a “child’s game” and that a losing streak is nothing compared to many problems in the world.

This sentiment that the players skipped the event because they were pouting over the loss and trouble in the clubhouse was rampant…and fans were not empathetic.

Fan after fan blasted the team on , talk radio and sports media. In some baseball-crazy town that might not be such a bad thing. Fans bounce back. But in Miami, there is plenty of competition, and the fair weather tends to generate more than a few fair weather fans. If the Marlins lose the support of their shaky fan base, this little snub could end up being the seed that grew into a revolt. They better get on top of it … and soon.

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Gene Simmons on Brand Development

gene simmons brand development
If there is any band in music that understands brand development, longevity and merchandising, it is KISS, and, for that success they can largely thank Gene Simmons and his personal PR campaign.

Loud, brash and brazen in concert, Simmons – aka The Demon – is also a reality TV star and marketing genius behind much of KISS’s plethora of swag, mementos, and souvenirs. What is it about Simmons that makes him so successful?

Gene Simmons Net-Worth Continues To Rise

First, nothing is ever good enough. When asked why he keeps going, even with a net worth reportedly exceeding $300 million, Simmons is quick to answer, “I’ll never stop hunting more money. I’ll never have enough. Life is business … I must keep moving.”

While some people may pretend otherwise, the want – or need – for more cash is a fine reason to continue to push and grow and strive for greater success. From the very beginning, Simmons pushed the group to sell as much merchandise as they could. From plush dolls to lunchboxes and TV shows … KISS is not happy unless they are leveraging their fame and hard work for more money and fame … which can lead to even more money. Not a bad cycle, really.

Big Ideas and Bigger Fanbase

The key, for Simmons, has been about keeping the brand in front of current and potential fans as much as possible. He understands that a band can only produce so much music, so they can only sell so many records. But they can sell swag to the same people who buy the records…so why not? The system increases the fan’s connection to the band, which, in turn, increases the band’s fanbase and popularity.

And, that, really, is the key factor. No matter what you are selling, if you have customers, you should do what you can to turn those customers into fans. Fans feel a part of your brand, not just a consumer of it. That connection is the real pot of gold at the end of the rainbow. As the brand, you give greater meaning and value to the fan, and they return that connection with greater brand loyalty. Everyone wins, or, in Simmons’ case, they keep rocking all night…every night.

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Amtrak’s Crisis PR Is Off The Rails

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Days after the deadly Pennsylvania Amtrak crash while investigators are still trying to sort out what happened, the rail line is trying to pick up the PR pieces. The has not been good – and that will continue to be an uphill battle. Already tiny factoids are popping up on comparing airline travel and rail travel.

The main question being asked by investigators is “why did the train speed up when it was supposed to be slowing down.” According to reports, when approaching a curve rated for no faster than 50 mph, the train, which had been traveling at 70 mph, sped up to more than 100 mph. At this point, investigators say they are unclear as to whether or not the train speed was increased manually by the engineer.

To this point, investigators have found no issues with the track or the mechanics of the train. But that is not the question the general consumer public is asking. All they can see is that a train was going too fast and killed at least eight people and sent 200 more to local hospitals. “Why” is a secondary concern. They want to feel safe, and they don’t, regardless of what caused the issue.

And, because they don’t feel safe, speculation rules. Despite the fact investigators have already released the information that the engineer was not using his cell phone and had not been drinking or using drugs, people are still – loudly – asking “what went wrong” with the driver.

Spokesmen have said that no “common sense rational person” would think it okay to travel at that rate of speed in that turn, but this is not comforting.

In point of fact, there’s no evidence to prove the engineer is a “crazy person.” But now that this idea is in the head of the public, it’s not just going to sit down and die. It may fester and spread.

Amtrak has a multifaceted PR nightmare. They are dealing with the facts of the case as they are revealed, AND they are dealing with countless speculations and outright rumors that are being generated by all the PR missteps. Every mishap leads to crisis PR – and those who handle it well have less damage than those who do not.

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Pope Working on Vatican Bank PR

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When you think about in the banking industry, you might think of patriotic commercials, earnest-looking tellers and clean-cut guys in pinstripes waiting to “earn your business.” But, would you expect any of those folks to wear the robes and crown of the Supreme Pontiff of the Roman Catholic Church? Probably not. Well, says, think again because the Pope is now in the game of banking PR.

Recently, Pope Francis gathered with a host of cardinals to discuss the financial health of the Holy See. There were—flowcharts, spreadsheets, graphs and PowerPoint presentations. PowerPoint in the Vatican? Yep. Congrats Microsoft, you have papal approval.

While it’s really no secret that Vatican finances have been growing through a rough patch in recent years, the extent of the issue was not well known because the Vatican kept their books locked up tighter than the gold at Fort Knox. Need to know only. According to Bloomberg, the meeting last February was the very first time that many cardinals were ever given the opportunity to see the church’s financial picture in such detail. Moreover, many of the presenters were not even clergy. Several lay experts were also present, breaking things down for the assembled holy men.

While this is hardly the first time Pope Francis has made headlines for breaking with church tradition, previous popes have challenged church practicum and theology. However, financial disclosure on this scale is virtually unprecedented. The lesson here is one of deft public relations. Underneath all the discussion about the church’s role in global culture and politics, is a steady current of dismay and outright revulsion related to both the institutionalized privacy and the abhorrent sex-abuse scandals. In opening the books, the pope is doing something so relatively drastic, which no one can look at it and not begin to rethink their position, at least on the church’s privacy issues.

The message is clear: this pope is not just changing the way the church deals with its people. This pope is changing the way the church operates internally, at the most basic of levels. When you open the books, you invite criticism of previous mismanagement and potential catcalls of corruption. The gesture, then, communicates a willingness to address any potential issues and a dedication to a new level of openness. At least, that’s the message being conveyed. Whether or not the faithful – much less the general public – buys it is an entirely different story.

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Will Facebook’s Focus Shift to Mobile Ads?

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Has the whole world gone mobile? Apparently. Fresh off its app split – remember all the controversy over the FB messenger app? – Facebook has announced a move toward more mobile advertising.

The move comes on the heels of less than stellar first quarter revenues. When Wall Street hemmed and hawed, the folks at Facebook decided to look at a fairly bright silver lining. User engagement and mobile ad revenue were both up, indicators that user habits are shifting…and so is the profit center. How skewed is that shift?

Well, according to reports, mobile accounted for about 87% of Facebook’s active user base. That’s up 24% over the same time last year. More people going mobile? A lot more apparently. Try roughly 1.25 BILLION users. That’s a lot of clicks.

Given this massive shift toward mobile use, it’s not surprising that Facebook’s mobile revenue is also on the rise. Nearly three-quarters of Facebook’s total advertising revenue came from mobile ads in the first quarter of 2015.

More importantly, daily user numbers are up. 936 million users access the site daily, a massive number that is both driven by and driving the shift to mobile, as well as mobile profitability. These markers fit well into Facebook’s ongoing to reach more users across the world, specifically in places where the Internet is only or primarily accessible on a mobile device.

But to truly tip the scales, Facebook needs more major marketers to invest in mobile. While that trend is promising, it isn’t quite there yet, creating some tentativeness in the company’s approach to the not yet fully tapped mobile market. When that happens, expect the Internet’s social media Big Dog to telegraph a sea change in the way everyone uses and profits from online content.

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Playoff Time For The NHL

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It’s playoff time for professional hockey, and NHL officials are hoping for some major ratings. Despite the fast pace, interesting personalities, and cool culture, hockey still lags behind several other sports in the hearts and minds – and wallets – of many Americans. While the NFL and MLB fight for the top spots in sports marketing, the NHL, and the NBA both want to be number three. And both have been rocked by lockouts, work stoppages, and other issues in recent years.

Back in 2012 the NHL experienced a work stoppage – it’s fourth in 20 years – based on how to split the approximately $3.3 billion in revenue. Since then hockey has tried to bounce back, but it faces some of the same issues that caused the previous disputes. Mainly, the massive disparity in brand popularity. Ask any fairly attuned American sports fan, and they could likely name three or four NHL franchises. Ask for ten, and the numbers would thin. Name them all? Forget about it. And the revenue numbers back up this disinterest. During the season prior to the most recent lockout, 18 of the 30 NHL teams lost money.

A few managed to scrape together a meager profit, but the three tops teams in the league practically printed money. The Maple Leafs, Rangers, and Canadiens enjoyed huge operating profits or more than $170 million. The other 27 teams, combined, only managed $44 million. The Canucks and Oilers bring the profit tally up to $212 million. Without these five teams, the total revenue is a loss of more than $86 million.

While the top teams in the NFL make huge margins, they only represent a third of all league profits. The NHL situation is mirrored by the NBA, where the Bulls and Knicks regularly pull the majority of the freight for the league. However, subsequent to the NBA’s most recent collective bargaining agreement, the league tripled revenue sharing to keep small market teams in the black. But the NHL has struggled to reach that level of cost-sharing parity.

The only other solution is to bring in a lot more paying fans to each and every “on the bubble” NHL team. There will always be a few that struggle, but some of the better teams can charge into the playoffs with the opportunity to bring in fans that will stick around, at least for a while. Without that bump, the NHL will have to go back to the negotiating table sooner rather than later.

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Microsoft at 40 – Where will the Brand go from Here?

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A recent report by CNN released an email sent by none other than the godfather of the computing age – Bill Gates. Apparently, the Microsoft co-founder sent the email as a way to connect with Microsoft employees and celebrate four decades of changing the world, one computer at a time, since 1975.

According to CNN, here’s what the email said: “Early on, Paul Allen and I see the goal of a computer on every desk and in every home. It was a bold idea, and a lot of people thought we were out of our minds to imagine it was possible. It is amazing to think about how far computing has come since then, and we can all be proud of the role Microsoft played in that revolution.”

It really is incredible when you think about how things were when Gates and Allen made that goal compared to what the world is today. Back then, no one saw much need for this upstart idea of the “personal computer,” but now billions across the globe are carrying computers in their pockets. From crazy idea to individual necessity in a generation. That’s the power of an idea whose time has come.

But Gates was not just looking back. In the same message he praised the leadership of current Microsoft CEO Satya Nadella, saying, “In my role as technical advisor to Satya, I get to join product reviews and am impressed by the vision and talent I see.”

But do you see what he did there? Gates is not only offering support and approval, he is tacitly revealing his current role in the company. Never one to shy away from making decisions, Gates is seen now as the face of his billion-dollar international charity and less the face of Microsoft, but his shadow still looms large in every way that matters. Far from the hands-off godfather, Gates is still a major player in the present and future of the company that helped make him the richest man in the world. And, even in a celebratory email, he is casting vision and defining the company.

“I hope you will think about what you can do to make the power of technology accessible to everyone, to connect people to each other, and make personal computing available everywhere.”

That may sound like a happy thought, but coming from this source, it’s more like marching orders.

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