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PRobecast #144: Pinterest’s lack of transparency, tracking teen abuse, & Wal-Mart

February 9th, 2012 by Renatta Siewert

PRobecast 144: In this episode of PRobecast, Caitlin Smith, Josh DeStefano, and our newest Topazer, Amanda King, join me in talking about Wal-Mart’s attempt at technology to get ahead of the online shopping game, Pinterest’s not-very-transparent revenue methods, and an iPhone app designed to mimic teen relationship abuse.

 

A look at Wal-Mart’s high tech plans Wal-Mart typically is known for its “everyday low prices” and not its technology reach. Some may even cite this as one of the reasons the giant has not been able to successfully break into the Northeast. However, Wal-Mart is trying to change that by building a tech center inSan Bruno,Calif., just south ofSan Francisco, which houses Walmart.com and a growing team of researchers. The mission of Walmart Labs is to study how mobile and social platforms are changing commerce, and how the line is increasingly blurring between online and offline shopping. For instance, the team rolled out Shopycat over the holidays on Facebook, which recommended gifts based on a friend’s interests. The notable part was that the gifts did not necessarily come only from Walmart, but other retailers, as well. “It was the first time we sent traffic to a non-Walmart site,” Rajaraman said. “But if we want to be a place to find gifts, we thought the right thing to do was to include other retailers.” Do you think this will help Wal-Mart’s image in being a small business crusher?

Love is Not Abuse: A Liz Claiborne Effort – Liz Claiborne, a well-known brand, has used their reputation to increase awareness about abuse in teen relationships. The iPhone app, called Love Is Not Abuse, sets out to teach parents about warning signs and how to help his or her teen. Over the course of the experience, text messages, emails and phone calls will be received real-time, mimicking the controlling, abusive behaviors teens might face in their relationships. There are several other partners involved in the effort. What will the best way to get this out to parents be? In many cases, it’s the teen with an iPhone, not the other way around.

Is Pinterest pocketing revenue by tracking user-generated pins? – Pinterest has become the hottest startup on the web in these past few weeks. But a new report from social media blog LLSocial reveals that the site may be “quietly” generating revenue by adjusting and tracking the links attached to pins that are posted by users. LLSocial noted that Pinterest may be collecting money through an affiliate program when pins are connected to ecommerce sites. For example, a picture of a sweater pinned to someone’s online board might have a link that connects them to a site where the sweater can be purchased, and this is when Pinterest reportedly steps in. “If you post a pin to Pinterest, and it links to an ecommerce site that happens to have an affiliate program, Pinterest modifies the link to add their own affiliate tracking code,” LLSocial said. “If someone clicks through the picture from Pinterest and makes a purchase, Pinterest gets paid. They don’t have any disclosure of this link modification on their site.” Making money is all well and good, but do you think this will hurt their reputation? After all, if we’ve learned anything from social networking since 2004 (Facebook’s humble beginnings) it’s that transparency is key.

Now it’s time for the PRobecast PR Power Ranking – which is when we go around the room and pick the story that we think ranks the highest PR-wise – meaning any aspects of PR could be the reasoning behind the pick. Is it the story itself, good data that was used, what’s getting the most pickup, was it a good PR move the company made, etc.

We chose Pinterest, because we’re all pretty impressed by their recent growth. The past three months alone have seen a huge spike in users, and not just the average user, but companies as well. However, while this growth and success is great, it’s still important to be transparent about the way you incur revenue. Don’t try to pull the wool over your users’ eyes; we’ve all learned that through our experiences with Twitter, Facebook, and Google.

Who do you think should have won?

Category: Messaging & Positioning, Podcasting, PR | No Comments »

Pawngo? A clear no-no

February 8th, 2012 by Justin Martell

Photo: Pawngo placed over 900 pounds of Butterfingers in Copley for a little "humor"

When the red, white and blue confetti poured onto the field of Lucas Oil Stadium in Indianapolis, it was officially over. The Patriots had lost their second Super Bowl in four seasons to the New York Giants, once again. As I sat there with my head down (again), I couldn’t bear to watch Eli and company celebrate what my beloved Patriots had just come so close to accomplishing.

Brady, to Welker. Brady, to Welker. Again and again, I replayed the vision of that second down play. Brady was driving the Patriots toward becoming immortal, with four minutes left in the game. The Giants were down to their last limbs and fans could feel the celebration building up in their blood.

Brady back to pass, fires, and…Welker dropped the ball.

Besides the obvious heartbreak Patriots fans are feeling this week, one with common sense would think the players – who work countless hours everyday working toward one goal of winning the Super Bowl – are suffering much, much worse than the fans. Yes, they’re paid millions of dollars and are treated like celebrities, but it doesn’t mean they don’t care about what they do. Wes Welker, of all people, knows what it is like to be kicked when down.

Welker is undersized, had been released early in his career, and has heard the critics doubt his ability to play in the league his whole life. When the Patriots reached the playoffs two seasons ago, Welker didn’t get to participate. He suffered a potentially career ending knee injury – the same as Brady’s – one week prior to team’s playoff game. Without him, they didn’t stand a chance, and ultimately lost.

How does one company view the Patriots loss and, more importantly, Welker’s regretful drop on the big stage this past Sunday? Pawngo.com, an online pawn shop in the United States, decided it would be funny and appropriate to drop 900 pounds of butterfingers in Copley yesterday. Having “butterfingers” symbolizes that Welker’s hands were slippery like butter and prevented him from holding onto the ball.

Talk about a public relations blunder.

Businesses should always be looking to improve their image. There is good, fun humor – and then there is stupidity. Surely, Giants fans find this to be amusing, but having hundreds of thousands of angry New Englanders surely isn’t good for business. It isn’t good for anybody.

Backlash was so harsh yesterday that Pawngo CEO-Founder Todd Hills issued an apology on their company blog today. It reads:

As a die-hard sports fan, I would like to sincerely apologize for a misguided and misdirected stunt that we did yesterday in Boston. In delivering a pile of Butterfinger bars to Copley Square in Boston, and a sign referencing Wes Welker, we were making a lighthearted gesture following Sunday’s hard fought game. We thought that Boston fans would get a laugh out of it. But, for many great Boston sports fans, it was taken offensively. Please accept my most sincere apologies. We got caught up in the moment, reacting to a suggestion that we thought would be funny, but we were wrong, and on behalf of everyone involved with Pawngo, I apologize.

Ha – ha.

The American people certainly love apologies – it’s excellent public relations crisis practice. For Pawngo to do right here, this was the first step. The next should be something proper for the hurting Boston fans. Who knows what that is? I’m sure a hurting, saddened Wes Welker isn’t losing sleep over a company’s silly blunder, but this act was certainly a classless and mean joke to play on the most passionate, depressed sports fans in the nation this week.

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Category: PR | 1 Comment »

The Damage is Done – What should Komen do next?

February 7th, 2012 by Tom Francoeur

Erik Sass asks that very question in Mediapost’s Social Graf blog. It was refreshing to read his post because rather than placing blame or expressing disbelief that such a PR disaster could occur, he gets right to the point of now that the damage is done, how can Susan G. Komen for the Cure recover? I also like how Sass keeps a clear eye on what everyone wants regardless of political affiliation, which is to stop breast cancer from killing people. Although this PR firestorm has brought some questionable fundraising practices to light, it’s undeniable that Komen has made a significant impact in the fight against breast cancer. I’ve seen a lot of Tweets, Facebook updates and blog posts stating that Komen has irretrievably damaged its brand by alienating both anti-abortion activists and Planned Parenthood supporters. Initially, I agreed with these sentiments, but now I think there’s almost always a chance for a brand to recover, and in the case of Komen, I’d like to see that happen as soon as possible so they can get back to what they do best.

Look at Toyota, for instance. They were in a publicity nightmare due to “unintended acceleration” resulting in deaths and injury, although what caused those incidents has yet to be determined. The company has taken a long term approach, using multiple marketing channels to communicate their commitment to solving the problem and to tell stories of loyal customers who are sticking with them. Komen should do the same. Refocus on their population. Tell true stories of Komen making a difference in people’s lives. Get that story out via mass media and social media channels. Repair the disconnect that seems to have occurred between Komen’s executive management and the grass roots supporters who are the lifeblood of the organization.

There are many people that Komen will never get back. Thankfully, other organizations in the fight against breast cancer can benefit from their contributions. But that doesn’t mean Komen can’t recover some of the people they’ve lost while still growing their organization through the countless number of people who unfortunately have been and will be impacted by breast cancer. As long as Komen stays on message with their core audience, there’s nothing to stop them from getting back on track and even going beyond what they’ve achieved already.

 

What do you think Susan G. Komen should do to repair the damaged brand?

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Category: customer service, Marketing, Messaging & Positioning, News & Commentary, PR | 3 Comments »