PII MAY NO LONGER BE THE THIRD RAIL OF AD TECH

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In the past, if you mentioned personally identifiable information (PII) to someone in the ad tech ecosystem, they might cringe and emphatically state that they do not collect or process PII.

The common belief was that if PII were included within the service, it would require the service provider and the customer to take significant extra steps to ensure that all privacy, self-regulatory and other legal obligations were met.  These might include opt-in consents, increased data security measures, additional consumer disclosures and limitations on the ultimate use of the data.

While that is true, times are changing for many reasons, including disagreement over what is considered PII, new products and services and that four-letter word: General Data Protection Regulation (GDPR).

DEFINING PII

In the EU, there is one definition under applicable law for “personal data,” the European term for PII: any information relating to an identified or identifiable natural person. This definition includes common ad tech tools, such as tracking cookies.

In the US, ask three people to define PII and you may get three different answers. To those in the ad tech industry, tracking cookies are certainly not PII. However, the Federal Trade Commission has stated “we regard data as ‘personally identifiable,’ and thus warranting privacy protections, when it can be reasonably linked to a particular person, computer or device. In many cases, persistent identifiers, such as device identifiers, MAC addresses, static IP addresses or cookies, meet this test.” Yikes!

This uncertainty has led to confusion and uneasiness in the ad tech world.

PRODUCTS AND SERVICES

Providers are offering new ways for brands to exploit their first-party data, including through lookalike modeling and segment building. While it used to be challenging to get brands to part with their first-party data, that hesitancy has begun to wane.

GDPR

If everyone is scrambling to put in place policies and procedures to comply with GDPR anyway, and EU law defines personal data as virtually everything under the sun, then ad tech companies may by default have no choice but to prepare themselves to handle more PII.

Therefore, the silver lining of GDPR may be less hesitancy on the part of ad tech companies to use PII in the US, leading to opportunities to exploit valuable data.

Not to be discounted, using PII in the US will still come with certain challenges and compliance obligations, but it may be time for ad tech companies to turn their GDPR compliance burdens into an opportunity.

 

Author: Gary A. Kibel

For the original article, click here.

With GDPR Deadline Looming, Ad Tech Community Proposes Collaborative Industry Solution

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With only a few months to go before the European Union’s General Data Protection Regulation becomes enforceable, the Interactive Advertising Bureau’s Technology Laboratory (IAB Tech Lab) has published an advisory that seeks to explain how ad tech companies can comply with the new rules through a collaborative information sharing process.

Deadline Looming
In April 2016, the European Union (EU) adopted the General Data Protection Regulation (GDPR), which imposes new consumer privacy requirements on companies that collect, use or share consumers’ personal data from the EU – no matter whether the companies are located in the EU or elsewhere.

The primary goal of the GDPR is to give individuals in the EU more control over how the personal information they share online is used, and by whom, than they had under the prior rules. In essence, the GDPR seeks to do that by requiring that individuals specifically “opt in” to consent to the use of their personal information, rather than the “opt out” approach common in the United States.

The EU provided a transition period for companies subject to the GDPR to develop systems and to learn how to comply with the GDPR’s requirements. That transition period is coming to a close, and all companies subject to the GDPR must be in full compliance beginning on May 25, 2018.

The IAB Tech Lab’s Advisory
Now, the IAB Tech Lab has published an “OpenRTB GDPR Advisory.” The advisory specifies how ad tech companies can pass user consent through the OpenRTB protocol during a real-time bidding transaction for advertising inventory. Much in the same way that a COPPA (Children’s Online Privacy Protection Act) signal can be conveyed between parties engaged in an ad call, this new string would convey a signal regarding whether GDPR-compliant consent has been obtained. Such real-time sharing of user consent information among publishers, buyers and data companies would be beneficial to all participants in the online advertising ecosystem.

The advisory concedes that it is “not an authoritative source of information” on the GDPR, and it recommends that all members of the ad tech community become familiar with the GDPR and user consent requirements. This process has not been officially endorsed by EU regulators. Still, the advisory may provide a possible solution for ad tech companies as they seek to finalize their compliance with the GDPR by the May deadline. The IAB Tech Lab’s advisory is a reminder of the importance of finding solutions to meet the consent requirements under the GDPR before that time.

Author: Gary A. Kibel

For the original article, click here.

PRCA launches Diversity and Inclusion Guidelines with cross-industry support

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The Public Relations and Communications Association (PRCA) has launched its Diversity and Inclusion Guidelines, the latest step in its work to improve the diversity of the PR and communications industry.

The comprehensive guidelines examine the current state of diversity in the industry, outline the business case for improving diversity, and offer clear and manageable steps to making the workplace more diverse and inclusive. Click here to take a look at the guidelines.

The recommendations in the report range from offering flexible working practices and reforming recruitment practices to make them more fair and transparent, to offering paid and structured internships and apprenticeships and monitoring diversity metrics. It also offers steps on how organisations can manage their diverse workforce. The report features case studies from leading organisations in the industry such as Cicero Group, Dynamo PR, Forster Communications, Golin, and The Taylor Bennett Foundation.

Francis Ingham MPRCA, PRCA Director General, said: “I am delighted to announce the launch of the Diversity and Inclusion Guidelines. The consensus in the industry is that diversity must improve and today we are providing the industry with clear steps to make that change. Businesses must address diversity as a key priority for their business to grow and ultimately for the industry to grow. We cannot perform our roles as communicators if we are not representative of the UK’s changing demographics.

“These guidelines prove that there are organisations in the industry that are doing exceptional work in this area but there is a great deal more that we can do. Our hope is that the PRCA Diversity and Inclusion Guidelines will encourage organisations to take the first steps to improve diversity.”

Sarah Hall MPRCA, CIPR President 2018, said: “The PRCA’s work on diversity and inclusivity takes the industry another step forward. Our State of the Profession research highlights the need for this work and we look forward to collaborating to drive real change.”

Sarah Stimson, CEO, Taylor Bennett Foundation, said: “We were thrilled that Taylor Bennett Foundation was selected as the PRCA’s Charity of the Year and this report is indicative of its wider commitment to diversity across the industry in all forms. It covers the issues comprehensively and gives practical guidance on addressing diversity in the PR workforce. We welcome it wholeheartedly.”

Pema Seely CMPRCA, Chairman, PRCA Diversity Network, said: “Bright young people want to work in modern and inclusive environments. Simply put, people want to come to work knowing that they will learn and develop. For me, diversity is a key part of that, otherwise we will have the same people, with the same ideas, and ultimately the same results.

“If we want to attract and retain the very best talent, it’s something we need to address urgently. In 2017, the PR and Communications Council committed to increasing diversity within the industry. These guidelines are a direct response to that. They will support PR practitioners with the practical steps and guidance to develop a more diverse workforce.”

This launch follows a pledge by the PR and Communications Council to improve diversity within the industry. This pledge was inspired by statistics in the PR Census 2016, which revealed that the industry is 91% white and 83% British. In addition, 64% of the industry is made up of women but the gender pay gap in 2016 was £9,111 in favour of men. Only 2% of PR and communications practitioners consider themselves to have a disability. These statistics highlighted the need for a collaborative, industry-led approach to tackle the problem.

The PRCA has always been committed to improving diversity within the PR and communications industry. The launch of the PR and Communications Census 2018 later this year will be another defining moment for diversity.

If you would like to get involved in the PRCA’s work on diversity, please contact Neha.Khatwani@prca.org.uk.

For the original article, click here.

Battling the Real ‘Fake News’

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Unfortunately, the unauthorized use of a celebrity’s name and image has become a deceptive marketing practice frequently used by dishonest online marketers. This type of promotion typically claims (falsely) that a public figure has used or endorsed what is billed as the latest miracle weight-loss supplement or wrinkle-reducing cosmetic. Going after these bad actors to protect one’s right of publicity and intellectual property rights can be a challenge. It also tends to be difficult to identify the responsible parties, and even if they can be found, they may be either a small operation that appears not worth pursuing or an enterprise outside of the reach of U.S. laws. A recent action by the Federal Trade Commission, however, serves as a reminder that those who peddle in false online endorsements may be part of a larger network that can be identified and stopped.

In December, the FTC announced that it had reached an agreement to settle charges against a network of internet marketers who for years had sold its alleged weight loss, muscle-building and wrinkle-reducing products to consumers using false and deceptive marketing and billing practices. These practices included the use of fake magazine and news articles and phony celebrity endorsements. The settlement is notable not only for the substantial financial award achieved by the FTC, but also for the breadth of the marketing network involved. Celebrities and public figures seeking to combat the unauthorized use of their names or images in internet marketing campaigns should take comfort from the FTC’s settlement. Through skilled investigatory work, it is possible to identify the parties responsible for such misconduct and put a stop to their deceptive schemes.

The network

According to the FTC’s complaint, three individuals used a complex network of 19 corporate entities to market and sell purported weight-loss, muscle-building, and wrinkle-reducing products. The defendants allegedly marketed and sold their products “through an interrelated network of companies” that were under common control and ownership, and shared officers, managers, employees, call centers, recordkeeping systems, commingled funds, and sales practices. The FTC alleged that the three individual defendants controlled each of the corporate defendants, some of which they owned themselves, and others which were owned by family, friends, employees, and unpaid interns.

The defendants marketed and sold their products on their own websites and on those operated by “affiliate marketers,” which are independent marketers hired through third parties known as “affiliate networks.” The defendants paid a fee to the affiliate network every time a consumer bought one of the defendants’ products after visiting a site hosted by an affiliate marketer in the network. The FTC alleged that in 2015 alone, those fees amounted to more than $19 million.

The ‘fake news’

The FTC’s complaint describes a variety of deceptive marketing and billing practices that were used by the defendants. Most notably, the FTC alleged that the defendants — and the affiliate marketers working on their behalf — hosted “websites designed to look like legitimate and independent news reports or magazine articles about one of defendants’ products.” The fake media sites used domain names and mastheads that falsely appeared to be from legitimate news, magazine, or health websites and engaged in numerous deceptive practices. These practices included falsely claiming that celebrities such as Kim Kardashian, Jennifer Aniston, Will Ferrell, and others had used or endorsed the products.

The FTC also alleged that the defendants failed to properly disclose the terms of sale, including that their “risk-free” trial offers would in fact lead to negative option renewal programs unless cancelled within a short amount of time. In addition, the FTC alleged that the defendants attempted to conceal their misconduct from regulators, banks and payment processors by creating “alternate ‘cleaner’ versions” of websites that had more prominent disclosures than the “landing page” websites that consumers would typically see.

The settlement

The defendants agreed to settle the FTC’s charges in a stipulated order entered in federal court in California. That court order includes a staggering monetary component of $179 million, which is how much the FTC alleged consumers had paid to the defendants over a period of more than five years. The court, however, suspended that judgment upon the defendants’ payment of approximately $6.4 million to the FTC, paid directly and by relinquishing title to assets held by dozens of payment processors and other financial services companies. The court order also imposes extensive injunctive relief, including prohibitions on certain negative option sales and other sales practices.       Of particular note, the order prohibits further deceptive marketing through the use of fake media sites, false endorsements and other
phony testimonials and claims, and requires the defendants to more strictly monitor the marketing materials of affiliate marketers to ensure their compliance with the order.

Bottom line

The FTC’s settlement with the defendants allegedly engaged in these deceptive marketing practices serves as a reminder that the
parties responsible for online marketing using public figures’ names and images without authorization can be identified and stopped.
Those parties may include the operators of large marketing networks. In other words, the FTC did not just find the parties responsible for
the unlawful marketing practices; it also found parties within the U.S. with assets significant enough to disgorge millions of dollars in
deceptively-acquired profits. PR firms should also be mindful about who they accept as clients. There is unlikely to be any indemnification in a client agreement that will extend to this type of serious and substantial economic and reputational loss.

Author: Michael Lasky

For the original article, click here.

FCC Proposes $13.3M Fine Against Sinclair Broadcast Group for Apparently Violating Sponsorship Identification Rules

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The Federal Communications Commission (FCC) has proposed to fine Sinclair Broadcast Group, Inc. (Sinclair) $13,376,200 because it apparently failed to make required disclosures regarding paid-for broadcast programming. The proposed fine is the largest ever under the FCC’s sponsorship identification rules and is part of the growing trend by regulators taking serious action to ensure that relevant material information is disclosed to consumers in an appropriate manner.

Background
Under the Communications Act of 1934 and FCC rules, a broadcaster airing a paid program must include an announcement stating that the program has been paid to air and identifying the program sponsor.

In particular, when programming is sponsored, Section 317 of the Communications Act and Section 73.1212(a) of the FCC’s rules require the broadcaster to announce to viewers at the time the program is aired that the broadcaster has been paid to air the programming and the identification of the sponsor. For most programming, this takes the form of a disclosure at the end of the show, such as “Promotional consideration paid for by [SPONSOR/BRAND].”

Moreover, pursuant to Section 507(c) of the Communications Act, whenever valuable consideration for the inclusion of material in a broadcast is given to or received by an entity other than the station licensee, disclosure of that fact must be made to the station licensee.

The FCC’s Investigation
In April 2016, the FCC received an anonymous complaint alleging that Sinclair had aired “compensated stories as news content” about Huntsman Cancer Institute (HCI) on behalf of the Huntsman Cancer Foundation (HCF) but had not disclosed that HCF had paid for those stories to air.

The FCC’s Enforcement Bureau investigated and determined that Sinclair and HCF had entered into an agreement to promote HCF and HCI through programming broadcast on Sinclair stations and on stations to which Sinclair provided programming under various agreements. As explained by the FCC, the agreement between Sinclair and HCF provided for a multi-market campaign including 60-90 second sponsored stories about HCI made to look like independently generated news stories and 30-minute paid programs about HCI. KUTV, Sinclair’s station in Salt Lake City, Utah, produced the stories and programs and transmitted them to other stations for broadcast.

The FCC’s Findings
The FCC found that Sinclair apparently willfully and repeatedly violated Section 317 of the Communications Act and Section 73.1212 of the FCC’s rules by broadcasting 1,366 on-air stories and long-form programs about HCI on 64 of its stations without an announcement disclosing that the programming was sponsored. The FCC also determined that 71 long-form programs were aired with deficient announcements – that is, with announcements that identified the programming as paid but that failed to clearly identify the sponsor of the paid program.

Next, the FCC decided that Sinclair apparently violated Section 507 of the Communications Act by failing to notify licensees of non-Sinclair stations to which it provided programming that HCF had paid to air its programming. In particular, according to the FCC, in 278 instances, these stations apparently aired no sponsorship identification announcements for the HCI paid programming, and these stations aired deficient sponsorship identification announcements that did not clearly provide the name of the program sponsor eight times.

The Proposed Forfeiture
The FCC’s rules set a base forfeiture of $4,000 for violations of the FCC’s sponsorship identification rules for each violation or each day of a continuing violation. The FCC decided to apply the $4,000 base forfeiture to each of Sinclair’s apparent 1,723 violations, for an aggregate base forfeiture amount of $6,892,000.

It then concluded that, given the “totality of the circumstances,” a “significant upward adjustment” was warranted, and it proposed a total forfeiture of $13,376,200.

Next Steps
The proposed fine is the largest ever under the FCC’s sponsorship identification rules – more than three times greater than the next largest fine. Despite that, it is worth noting, two commissioners would have made the fine even larger – to over $82 million.

Sinclair can respond to the FCC’s notice or pay the proposed fine. The FCC will review any written response and additional evidence it receives before determining the next steps. A forfeiture order actually imposing a fine or any settlement would require another FCC vote.

Author(s): Vejay G. Lalla, Partner, Davis & Gilbert, & Joseph Lewczak, Partner, Davis & Gilbert

2017 M&A activity for PR firms: The year of the ‘tuck-in’ transaction

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My last column for 2017 is an appropriate time to look back at the consolidation, merger, and acquisition activity by and among PR firms.

According to data compiled by my law firm, there were 103 publicly announced and completed transactions worldwide in 2017 involving public relations firms. This reflects an increase of 14% in completed, publicly announced transactions from the 89 completed in 2016. This alone is significant because it demonstrates the existence of a robust M&A market for PR firms. Even more noteworthy is the nature and size of many of the transactions, as well as the factors that are causing owners to sell and buyers to buy.

According to our research, 35% of the 103 consummated 2017 transactions involved PR firms with less than $3 million in revenues. An additional 15% of the transactions involved sellers with revenues of between $3 million and $10 million. In other words, 50%, or more than 51 transactions, involved sellers whose firms had revenues of less than $10 million. It was indeed the year of the  small deal, often designed as a “tuck in” to an existing firm, practice area, or specialty. This is especially true given that technology  continues to bring forward a host of ever-changing and ever- growing practice areas and platforms on which savvy PR firms are able to capitalize.

Who were the buyers in 2017?

•66% of the deals involved independent PR firm buyers;

•29% involved public holding company buyers;

•5% involved private equity firm buyers.

In 2016, in contrast, independent PR firms were the buyers in only 59% of the consummated transactions. This data reflect that more firms, including more independently-owned firms, have adopted M&A as a growth strategy.

The next interesting question is what is causing the sellers to sell. Our research provides some answers. Overall, many firms are having a difficult time attracting and retaining talent. The talent marketplace has not only become more competitive, but top talent, based
on principles of supply and demand, has become more expensive. PR firms also face an increasingly specialized marketplace and one in which client budgets are declining or remaining flat, at least in the traditional service areas. The smaller firms, by definition, have a smaller revenue base, over which to amortize their operating costs. One way in which these firms can spread their operating costs over a larger base is to be part of a larger firm. Doing so may also allow the seller to spend more of his time on new business and client work, instead of taking time from those revenue-producing activities to run a smaller firm.

Buyers find many of these nimble, smaller PR firms attractive as a way to “acquire” entrepreneurial and other talent, enhance a service offering to its existing clients, or grow a practice area. Buyers are also finding it increasingly difficult to grow while relying solely on organic growth to increase revenues. Thus, combining organic growth, with smart or “tuck in acquisition” can be accretive for the buyers. This approach can also fill the different, but complementary needs, of both buyers and sellers.

The “hot” specialty areas of the firms that were bought and sold in 2017 are also noteworthy. Twenty-seven percent of the firms acquired identified themselves as technology or digital firms, 18% as integrated marketing communication firms, 12% as consumer firms, 8% as financial services, and 8% as healthcare firms, and a smattering of other speciality areas.

What is the M&A forecast for 2018? We are likely to see an equally robust M&A market in 2018. In fact, 83% of firms surveyed in late 2017 indicated that they had been approached within the last two years to sell their firms. More significantly, 56% of the responding firms thought it was likely or very likely that they would sell their firms prior to 2021.

Go here for Davis & Gilbert’s complete analysis about M&A trends and issues.

Michael Lasky is a senior partner at the law firm of Davis & Gilbert, where he leads the PR practice group and co-chairs the litigation department. He can be reached at mlasky@dglaw.com.

Click here for the original article.

How PR firms must navigate website compliance under the Americans with Disabilities Act

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Public relations firms increasingly develop content and websites for their clients’ programs, products, and services. It is also common for PR firms to enter into client agreements in which they are asked by their clients to “comply with all laws.”

A prior column explained that this seemingly innocuous provision may leave PR firms open to liability for failure to comply to unforeseen and unspecified laws. This article provides another example of an unforeseen source of potential liability for PR firms.

There have been a flood of lawsuits in recent years brought by individual plaintiffs, the class action bar, and the federal regulators alleging that consumer facing websites do not comply with the Americans with Disabilities Act (ADA). These lawsuits could serve as the basis for clients to seek indemnification for the failure of the agencies to “comply with all laws.” Although ADA website compliance is still a highly unsettled area of law, there are simple steps a business can take to reduce its risk of becoming subject to an ADA lawsuit.

WHAT DOES THE ADA HAVE TO DO WITH WEBSITES?

The ADA prohibits places of “public accommodation” from discriminating against persons with physical and other disabilities on the basis of those disabilities. The ADA requires that places of public accommodation implement modifications to remove barriers that prevent access by persons with disabilities and persons without disabilities. Since 2000, federal and state regulators and private plaintiffs alike have argued, often successfully, that a website is a “place of public accommodation” and, accordingly, that the ADA applies to websites. Regulators and civil litigants have demonstrated that websites may not equally accessible by, and thus discriminate against, persons with sight, hearing, mobility, cognitive, and other disabilities in violation of the ADA and related state laws. In addition, the Department of Justice, which is tasked with enforcing the ADA, adheres to the view that the ADA applies to all websites. The DOJ has initiated enforcement actions and entered into consent decrees against websites that allegedly violate the ADA, irrespective of the fact that those websites are for companies with no physical location.

WHEN COMPLIANCE IS UNCLEAR

If a website is a “place of public accommodation” and, therefore, covered by Title III of the ADA, the question is whether that website is accessible by persons with sight, hearing, mobility, cognitive, and other disabilities. There is no uniform standard for determining whether a website is sufficiently accessible by persons with disabilities. In 2010, the DOJ proposed regulations supporting the World Wide Web Consortium’s Web Content Accessibility Guidelines 2.0 Level AA Guidelines as the minimum standard for website accessibility. In addition, courts also have looked to WCAG 2.0 AA to determine website accessibility and to identify modifications to websites determined to be inaccessible. For example, WCAG 2.0 AA requires that websites provide the following:
•Alternative text for each image;

•Audio descriptions for video content;

•Captions for audio and video content;
•Functionality that is entirely operable through a keyboard interface, without requiring specific keystroke timings;

•Clear webpage titles that are visible in the title bar and tabs;

•Headings that are navigable by keyboard or screen reader;

•Minimum contrast ratios for text and images; and

•The ability for users to change background colors, font colors and font sizes.

What does this mean for PR firms and their clients?

NEGOTIATE CONTRACTUAL PROTECTIONS

PR firms providing web development services or other services related to their clients’ websites should seek to protect themselves from liability contractually. Firms should consider carving out ADA Title III compliance, as applied to websites, from any such representation and shifting the risks associated with non-compliance to the client. Agencies would also be well advised to specify the limited ADA compliance measures that will be taken, to the extent that the client insists on imposing ADA liability. Conversely, where PR firms are negotiating agreements with third parties providing digital content to be incorporated into a client’s websites, firms should, where possible, require such third parties to expressly represent and warrant that their content is ADA compliant, and to indemnify the licensee business accordingly.

HAVE AN ADA WEBSITE COMPLIANCE PLAN

Website accessibility is as much a public image issue as it is a legal issue for consumer-facing businesses. Businesses that show their commitment to making sure their websites are accessible to the disabled mitigate their risk of being targeted in an ADA Title III action. In other words, striving for website accessibility is not only a legal requirement, it’s good business.

ACCESSIBILITY PLANS MAY INCLUDE:

•Adopting and displaying a website accessibility policy;

•Offering an alternative means of receiving the services that would otherwise be accessed through the website, for example through a toll free phone number;

•Including a statement on the website about how the disabled can access content by an alternative means;

•Testing accessibility of the website regularly, which may include actual users;

•Training employees on website accessibility; •Designating a website accessibility coordinator.

A recent survey conducted by my law firm shows that an increasing number of PR firms are providing an ever-expanding group of services to its clients, including website design and development. The additional revenues that PR firms are receiving for these services come with a need for firms to exercise greater vigilance in the nature of their agency client agreement and the scope of the indemnities.

Michael Lasky is a senior partner at the law firm of Davis & Gilbert, where he leads the PR practice group and co-chairs the litigation department. He can be reached at mlasky@dglaw.com.

Click here for the original article.

5 predictions for PR in Africa in 2018

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Public relations activities across Africa are under a microscope like never before. This renewed interest is for many reasons and while continued economic growth in key African markets is one of them, the most notable reason is the scandal that rocked the global PR industry when top U.K. agency Bell Pottinger became embroiled in an ethical political scandal of epic proportions in South Africa. It is this potent combination of economics and ethics that will set the pace of how the African PR industry will be shaped in 2018 and beyond.

The effect the Bell Pottinger saga will have on the African PR industry can not be overstated, such is the toxicity of the episode. Hired by the controversial Gupta family, which is connected to corruption at the highest level of South African governance, the agency was accused of inciting racial hatred in the country and was expelled by the PRCA. This unprecedented expulsion on the grounds of unethical and unprofessional conduct in South Africa, alongside bringing the global PR industry into disrepute, led to the agency’s ultimate collapse.

Because of the Bell Pottinger episode, when looking ahead at trends across the industry, industry ethics and reputation are the top priority.

Ethics moves to the forefront
Attention on the ethical behavior of practitioners will be at the forefront of all African PR activities. In particular the work conducted by global PR agencies independently and in partnership with local practitioners will be under severe scrutiny.

New business will be more carefully reviewed with a stronger emphasis on the potential ethical issues that may arise from working on accounts, in particular those in the public affairs and governmental sectors. The issue of ethics will become an intrinsic part of ongoing conversations between practitioners and clients.

Mirroring Richard Edelman’s call for ethical guidelines as outlined in his “PR Compact,” African PR trade organizations such as the African Public Relations Associations will create renewed ethical guidelines for members, practitioners at large, and international agencies working across the continent.

Tighter regulations
It was the expulsion by the U.K.’s PRCA that led to the ultimate demise of Bell Pottinger. The current African PR industry regulatory infrastructure led to the opposition party in South Africa having to register a formal complaint in the U.K. This highlights the need for more stringent PR industry regulations across the continent and will fuel governments in key markets to begin taking steps to create national bodies overseeing the governance of the industry.

Renewed emphasis on reputation management
In addition to assisting clients, reputation management for international PR agencies operating in Africa and their African partners will be a key initiative for all firms. How agencies and practitioners themselves are perceived not only by clients but also the general public at large will be crucial especially in South Africa, where negative stories about the PR industry were in the national headlines for weeks.

More PR leaders in key markets such as Nigeria, Kenya, and South Africa will openly discuss the positive impact of the PR industry and its activities across more diverse echo chambers in order to reach a varied audience. The objective will be to present PR activities to mainstream audiences in a more positive and progressive light and as not only an essential business function, but as a force for good, not bad.

Social media continues to gain momentum
Fewer than 60 million households in sub-Saharan Africa with a TV, compared to a population of nearly 1 billion, heavily state-controlled media in many countries, and high mobile phone penetration have resulted in social media becoming the main source of media in many African countries.

This social media influence is seen especially during elections and has led to some electoral commissions demanding phone companies block social media outlets in order to control what they deem “fake news.”

Social media will continue to gain influence, and the calls for control and regulation will lead to short- and long-term governmental actions. African PR practitioners will have to strategically navigate these actions to ensure they leverage social media and other forms of communications in a fluid and flexible way, adapting quickly to the ever-changing environment.

The rise of technology PR
With Chris Cox, chief product officer of Facebook, delivering the keynote presentation last year at Social Media Week Lagos and the announcement of Andela’s Series C Fundraising, interest in technology across Africa is booming.

This flourishing tech scene will lead to an increased need for tech PR’ as these companies seek to raise their visibility in the quest to gain regional and global investment in their products and services.

“Top tier and prestigious media outlets such as The New York Times and the Financial Times are now covering African tech startups and this says a lot about how much the sector has grown and will continue to grow in the next few years,” said Jessica Hope, MD at Wimbart, a PR firm specializing in African tech startups.

Author: Claudine Moore, Media International Public Relations.
For the original article, click here.

“Rapidly Evolving” – World PR Report: Analysis North America

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Analysis by Heather Kernahan, President, Hotwire North America for the ICCO World PR Report

Rapidly evolving are two words that can be used to describe the state of the PR industry in North America in 2017. This is because we are operating in a very different world to even twelve-months ago. Political change, investor activism, societal attitudes and the wider economy are all combining to shape the way corporations approach public relations.

It’s no coincidence therefore that the industry seems in good health, with 62% of North American respondents to the 2017 ICCO World PR Report feeling optimistic about their growth prospects. However, it’s not just growth that indicates a robust market environment. The sentiment around the importance of public relations has strengthened against a backdrop of increased complexity for companies, government and non-profits and a move away from traditional advertising.

This is due in no small way to the rise of fake news, amateur reporting and speed of the news cycle. Knowing when to communicate, sign a petition, align with other industry leaders, and when to communicate about topics such as diversity issues and government policy have become business critical decisions. Consequently, more and more CEOs and CMOs are turning to PR firms for advice. The ICCO World Report highlights this with a majority of respondents agreeing that CEOs in North America are taking corporate reputation seriously.

With all these factors threatening corporate reputations, the need for sector specialist advice will grow through 2017. The rise of micro influencers means that companies must understand their audiences more than ever before if they want to find success. These influencers move markets, shape reputations and ultimately affect revenue and they may be hard to find unless you’re deep into the industry conversation.

However, the evolution extends beyond the provision of corporate reputation services. Today, the industry is going through a much needed rebrand as firms drop the term PR in favour of communications, integrated communications or brand. With questions being asked about the veracity of online advertising and the ongoing debate around programmatic campaigns, the door has opened for agencies to provide a wider range of services.

All of this combined means that the coming twelve months will see the pace of evolution accelerate across the North American PR industry. We expect to see a rise in the quality of creativity from across the sector; an increase in investment in non-traditional PR areas such as insights and analytics; and a continued shift to integrated communications services. Clients will have greater choice but will face a largely homogenous agency landscape. To take full advantage of the growth and to realize the optimism showed in the ICCO World Report, we all must look carefully at our business models and be unafraid to reimagine what the PR playbook should look like.

Download a free copy of the ICCO World PR Report 2017

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Still new to the South African market, podcasting has yet to reach its full potential. But moves are being made to increase its presence.

Original article by Michael Bratt, The Media Online

According to Statista, almost a quarter of the US population listened to a podcast in the past month in 2017, an increase from less than 10% in 2008. While this market is surging, its South African counterpart is still in its infancy, but is starting to take off. Elna Schutz, content producer at the Wits Radio Academy, explains. “Podcasting in South Africa is much bigger than most people realise … It’s not huge, but more and more people are getting into it and some have been doing this for many years. There is a growing interest but the majority are hobbies, side gigs or part of brands,” she says.

The power of podcasts

Like online radio, Schutz touts the intimacy of a podcast as its most powerful element. “While radio and other media has wide appeal, podcasts have a personal appeal,” she explains. “The exclusion of many people means the podcaster can talk to their audience very particularly… Directional intimacy and a community that wants to be there are the benefits.” The niche topics covered make the listener feel more involved and they are invested in the podcast because they are interested in the topic.

Podcaster Erich Viedge agrees with niche content being a major strength of podcasts. “Brad Brown makes this point very well; he says, ‘you might only have 200 or 300 listeners, but those people are hyper hyper invested and engaged in your podcast’ and if you can get the right audience you have a very powerful medium indeed.” He adds that people can listen to them while also doing something else or can download them and listen at a later stage, giving listeners choice of when they choose to consume the media.

A distinction has to be made between audio archiving and podcasting. The former is where existing audio content, like a radio show, is packaged so listeners can revisit it or those who missed it have the chance to listen. Podcasting is original content which is packaged, and contains many different formats and styles.

Is podcasting in SA profitable?

The biggest challenge to this space in the country, believes Schutz, is the time and effort required versus its profitability potential. “It’s currently not particularly profitable for many people,” she reveals. “I’m hopeful that in the future we will figure out business models that work for people … A lot of people are looking to the US and expecting it to work the same here”.

Viedge adds, “There’s no money in podcasting and it’s quite time consuming … In South Africa it’s nowhere at the moment”. He believes “the way to think about monetisation is not to think about advertising and also not to think about being paid for the podcast. The way to think about monetisation is what is the podcast part of”. He elaborates that the podcast can be used as a business card to attract further business, like guest speaking, training, or lecturing around the topic, as it gives you credibility and authority on a particular subject. Books and merchandise can also be sold on the back of the podcast, so money is being made even though the podcast itself is not generating the revenue.

At present, it seems podcasting is merely a supplementary tool for those participating in it, rather than the primary offering. Brands utilise podcasts as part of their marketing strategy, while some individuals are using their podcasts to get attention for their products or services.

Are data costs still a problem?

High data costs are also bandied about as a major challenge to South African podcasting, but Schutz doesn’t buy this. “Many people can find wi-fi somewhere and download the podcast for later. People incorporating podcasts into their lives and realising the value they offer should be a priority and promoting local podcasts, as listenership for international podcasts is growing, but locally not so much.”

It could be argued that not enough support and guidance has been given to the South African podcast industry. Schutz says, “A legacy of training and financial support and ways of doing things in other countries hasn’t been transferred to the SA podcast industry”. Schutz adds that a lot of local podcasts are not being crafted professionally, since it is merely a part time activity for the podcaster, and they are merely putting out content without having learnt the basics of this art form. Viedge agrees with Schutz, stressing that the lack of quality content in South Africa is a hurdle and disappointing. “Good podcasts will chase away bad podcasts, but the fear of course is that bad podcasts will just tank the whole industry,” she says.

Viedge sees educating the public as a vital priority. “If I say listen to a podcast and you’re not a podcast listener, trying to explain to you how to get one if you don’t have an iPhone is just a farce”. Platforms such as Google and Apple (which changed the game by placing podcasts in its store in 2006) want to increase the accessibility by placing podcast platforms in cars, which Viedge says will be another game changer.

How brands should be podcasting

Brands, marketers and media people should think about getting into this space, says Viedge, explaining the best way to do this. “Like Dorothy Black did recently for Cosmopolitan, make a series of five or six or 12 episodes and make a package of it. Don’t start a weekly series with an open end, make a campaign that includes the podcasts, social media and YouTube … If you do six or 12 episodes, it’s a long enough test to understand the power of it and if it’s going to work and it’s short enough to limit your exposure, time and budget.”

Podcasters usually have a preferred distribution platform that they favour, which differs from person to person. SoundCloud is a popular choice, not only in South Africa but also globally, as well as iono.fm. They also favour embedding the podcast in their website or blog as well as on social media sites like Twitter and Facebook. Podcast apps and iTunes are other platforms that podcasters should look to as people are actively seeking podcasts on these outlets.

A meeting of the minds

Schutz is the organiser of Podmeet, a gathering of podcasters/potential podcasters at Wits University. The second edition recently took place, with 15 to 20 people in attendance.

Explaining the reason behind the creation of these meetings Schutz says, “The conversation around podcasting keeps coming up in the radio industry and I personally am very interested in going into that space more. It’s a labour of love from me wanting for this to be an industry in this country and wanting people to be supportive and realise that this type of support is not happening a lot.

“People kept coming up to me saying ‘I do a podcast, but I’m the only one I know doing it’. The idea was to bring podcasters together and connect them so they could learn from each other’s problems and needs. An example of this happened at the gathering, where one podcaster stressed he had so many content ideas, but no studio to implement them, and another podcaster saying they have a studio but no connect ideas.

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