“PR:tech” Report Findings – Part #1

The “USC 2019 Global Communications Report” examines the impact of technology on society and the communication industry. This post summarizes the findings regarding communication goals, societal issues, PR & marketing integration, and the declining ability to distinguish between Paid/Earned/Shared/Owned media.

Every year, the USC Annenberg School for Communication and Journalism takes a fresh look at the topics and trends shaping the future of the Public Relations industry. Each time we survey professionals working in the field, we discover new insights into what makes PR one of the most dynamic professions in the universe. This year was no exception as we examined the impact of communication technology – what it means for the industry, academia, and society.

In this post and the next one, I’m providing a glimpse into this new “PR:tech” report findings. The report is based on a comprehensive survey of more than 2,100 public relations leaders, CEOs, and students worldwide.

The rest of the report is available for download at https://annenberg.usc.edu/gcr.

Educators can request printed copies for classroom use by emailing usccpr@usc.edu.

So, let’s dive into some of the results and insights:

Communication Goals: Selling Products and Differentiate the Brand

Typically, we survey PR professionals and PR students for our annual Global Communications Report. This year we added another very important audience - CEOs - to determine where they think their company’s communication efforts should be focused. Working with Chief Executive magazine, we questioned more than 200 business leaders who run small, mid-size and large organizations across the U.S. We compared their answers with those of PR professionals to identify alignments and gaps.

First, we asked them about their most important communication goals:

USC 2019 Global Communication Report: https://bit.ly/2Gb33AL

44% of CEO respondents state their most important communication goal for 2019 is to sell their products and services, while 39% say their primary goal is to differentiate their company’s brand from the competition.

In contrast, virtually no one stated their most important communication goal was shaping their company’s position on social issues.

When we ask corporate communications professionals, who often report to the CEO, 39% agree that differentiating the brand is important, just the same as CEOs. But only 25% report that sales is their highest priority. Not surprisingly, communicators are more focused on defending reputation and shaping opinion because that is often their responsibility.

Interestingly, neither group places a huge priority on marshaling data and analytics, which is at the heart of what technology does. Data and analytics are a means for building both brand and sales, and new technology needs support from the top if it’s going to be effective.

Speaking Out About Societal Issues

At a time when high-profile corporations like Nike and Levi Strauss are speaking out about societal issues, it’s fascinating to discover that the majority of U.S. CEOs have little interest in being part of that conversation.

When asked which societal issue they planned on speaking publicly about, 60% of the CEOs surveyed said they were unlikely to communicate about any social issue in 2019.

USC 2019 Global Communication Report: https://bit.ly/2Gb33AL

The percentages are reversed for in-house communicators, which means they are either out of sync with their bosses or they realize their employees and customers are demanding to know where their companies and brands stand on the issues, they’re passionate about.

USC 2019 Global Communication Report: https://bit.ly/2Gb33AL

For CEOs who do plan to speak out, the most pressing topics are data privacy (45%), healthcare (41%), and diversity and inclusion (28%). More controversial issues like immigration (15%), fake news (13%), and gun control (2%) ranked much lower.

Communicators pick the same topics but place a much higher priority on diversity and inclusion (64%), which remains an important focus of the overall PR industry. In the “other” category, many mentioned education - as an issue they will address.

Overall, it is fair to say that today’s senior executives are more focused on issues that directly affect their business than those that impact society. CCOs understand that mandate but take a broader view of their responsibilities.

Expected Change in the PR Industry

Change remains the only constant in the PR profession. The vast majority of global PR professionals (66%) predict the coming years will bring considerable or drastic change. Agency executives (72%) are more likely to expect substantial change than their internal counterparts (60%). Students are somewhere in between (66%).

USC 2019 Global Communication Report: https://bit.ly/2Gb33AL

PR professionals agree that many factors will disrupt how we communicate, but one dominates - Technology.

USC 2019 Global Communication Report: https://bit.ly/2Gb33AL

A whopping 83% of global communicators believe technological innovations will be a significant driver of change in the industry, which is the reason we conducted this study.

PR and Marketing = More Integrated

The integration between PR and marketing is another important trend, according to 90% of survey respondents.

USC 2019 Global Communication Report: https://bit.ly/2Gb33AL

That integration is pushing PR to adopt new technology already being used in the advertising world. Competition always spurs innovation, and right now, PR is playing a little catch-up.

The merger of marketing and PR is also causing structural changes inside organizations, agencies, and holding companies, some of whom believe integration is more important than independence. Another result of this integration: PR agencies are hiring more creatives and planners from advertising agencies.

Valuable Communication Channels: Paid, Earned, Shared, Owned (PESO) Media

The channels for delivering information are also changing. Asked what communications strategies would be most valuable to their companies in the future, 38% of the U.S. CEOs surveyed chose social media and online influencers (shared media), slightly ahead of original content distributed through their company’s channels (owned media) at 36%. Traditional media coverage (earned media) ranked third at 14%, while a mere 12% say advertising (paid media) is their most valuable means of communication.

USC 2019 Global Communication Report: https://bit.ly/2Gb33AL

Although in-house communicators agree that owned media will be an important communications channel in the future, they place a higher premium on earned than the CEOs. The biggest gap between in-house pros and CEOs is the importance of social media. Agency budgets are even more reliant on earned than the in-house communicators, which may often be the reason agencies are hired. While their revenue from this expertise will decline, media relations is predicted to remain agencies’ dominant revenue generator for the foreseeable future.

USC 2019 Global Communication Report: https://bit.ly/2Gb33AL

On the surface, the paid piece seems contradictory - becoming less important for CEOs while more important for communicators. The discrepancy is based on what exactly is being paid for. When CEOs hear paid, they think advertising, while PR people think social, where earned is bolstered through paid support.

USC 2019 Global Communication Report: https://bit.ly/2Gb33AL

Students are in tune with CEOs. They’re much more prepared to deal with social media than the alternatives. That’s where they live, that’s what they learn, and that’s where they’ll work. They need to pay more attention to paid. Owned also needs emphasis. And as a profession, we must prevent media relations from becoming a lost art. In every channel, earned-first will always be the most effective way to tell a story.

The Decline Ability to Distinguish Between PESO Media

As all these channels collide, the PESO distinction is becoming irrelevant to consumers. As we have seen in previous years, 62% of communications experts predict future consumers won’t be able to distinguish between a piece of information written by a reporter, paid for by a brand, or shared by an influencer.

Another 55% believe they won’t even care where this information is coming from. If this is true, it’s unlikely they will detect a piece manufactured by a machine.

USC 2019 Global Communication Report: https://bit.ly/2Gb33AL

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The next post (part #2) summarizes the findings regarding news content written by AI, tech tools for PR, leading platforms, required tech skills, and the negative impact of tech changes in the media.

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About the Global Communications Report 

The Global Communications Report is produced annually by the USC Annenberg Center for Public Relations, in conjunction this year with Union Pacific, Worldcom Public Relations Group, Davis & Gilbert LLP, Arthur W. Page Society, Global Alliance for Public Relations and Communications Management, IABC, International Association for Measurement and Evaluation of Communication, International Communications Consultancy Organization, Institute for Public Relations, MCC Consulting, PRCA, PR Council, PRSA and PRSSA. The survey of PR professionals, educators, and students is designed to provide insight into the evolution of the global communications industry.

About the USC Center for Public Relations

Based at the USC Annenberg School for Communication and Journalism, the USC Center for Public Relations (CPR) connects corporations, agencies, academics, and students to define the future of our industry and to develop those who will shape it. Signature initiatives include the Global Communications Report, USC Annenberg’s Kenneth Owler Smith Symposium, and the Relevance Report. Follow CPR @Center4PR and #PRFUTURE.