Wolf Tracking

It is hard to recall a news story that so obviously revealed the changing face of media as much as the most recent scandal involving Eliot Spitzer. On Monday, within two hours of posting an article connecting New York Governor Eliot Spitzer to a prostitution ring, traffic on the NYTimes.com web site spiked 60 percent higher than at the same time the previous Monday, with mobile traffic nearly doubling during the same time period. As the story began to unfold in the coming days, resulting in Spitzer’s eventual resignation on Wednesday, the Times’ website continued to show signs of strain and slowdowns, as it sluggishly heaved through the traffic of the hungry public who wanted the most up to date information available. And it was perhaps Spitzer himself who recognized how quickly news is spread, proof being that he stood on a podium making apologies for his misjudgment and poor character less than two hours after the news of his involvement in a prostitution ring broke, denial wasn’t even an option.

Besides revealing the well known fact that no one loves a sex scandal quite like a New Yorker, the speed-of-light pace at which the details of Spitzer’s scandal were exposed, prove that in this increasing world of digital connectedness, there really is no hiding from a scandal or the Internet news machine. This may just look like another political and personal failing (Clinton 2.0?) however this news story also revealed some interesting patterns about the way in which the Internet and social networking are changing how a news story plays out in the public, on TV and in the papers, and further proves that now more than ever, the media must aggressively attempt to stay ahead of their tech-savvy public who knows how to retrieve details and information faster and sometimes even better than they do.

It wasn’t only that people were hungry to learn the details of Spitzers’ story, but rather they sought to stake a personal claim in the scandal as well, and there is no easier way to do that than buying domain names. Minutes after an article was posted on New York Times referring to Spitzer as the particular “Client 9” that was named in a criminal complaint filed by prosecutors last week, the client9.com domain name was registered for $10.13, and in addition to this purchase other savvy business minds bought client-9.net, and client-9.com. And it doesn’t stop there. As we found out in the days that followed, it appears that the very break-through in this case itself has been intricately affected by the amount of data exchanged on the Internet through a variety of digital platforms. What led the FBI and the IRS to Spitzer in the first place was a complex electronic virtual paper trail that revealed a large unaccountable movement of cash, corroborated by telephone wiretaps, computer records and other electronic evidence. With this information stored permanently on a variety of servers and databases it really does call into question what other persona digital traces are out there being tracked, and what if any, are the rules of privacy are associated to them—in this case the possible criminality of the act proved privacy wasn’t a concern when retrieving Spitzers’ records.

In an article for Businessweek.com, Hillary Rhodes points out another interesting aspect of this news story, highlighting the changing face of one of the oldest professions in the midst of the wired world. Rhodes writes “the prostitution scandal involving New York Gov. Eliot Spitzer lays bare some of the inner workings of modern day sex work: text messaging to clock in the client, electronic fund transfers, a Web site featuring color photos, prices and rankings” and I would add, an easier more convenient method of payment. As Rhodes goes on to discuss, workers also use high-tech measures to avoid getting caught by the police (wire taps, cameras etc.), and in the case of Spitzer, also use technology to do the catching. And just when you thought the web of technology couldn’t be weaved any more tightly around this case, the infamous “Kristen” whom Spitzer was said to have been with on the night of February 13^th, was revealed to the public via her Myspace page to be a woman named Ashley Alexandra Dupre. The ease of access to this information may cause Myspace devotees to rethink their security settings.

In addition to the New York Times article which splashed the shots of Ashley across any empty space they had available, CNN showed screenshots of the Myspace screenshots, and awkwardly scrolled through Ashley’s page reading her “about me” stating them as a testimonial of her theories on life, and as insight into her psyche. At just about the same time this media bonfire was ablaze, local news crews camped outside her apartment tracking her every digital move saying, “We can tell from her Myspace page that she has signed on this evening.” It is hard to think of another story in recent history whose details unwound so immediately and one that also relied so heavily on a social networking site for a solid evidentiary source. In addition to Ashley’s face gracing the cover of every major newspaper and news program; it appears that her goal to be an R&B artist is now more fully realized than ever. She sells her music on Amie Street, which sets the price of songs based upon how quickly and how much it sells. With her new found fame it appears Ashley’s song is now selling more quickly than Radiohead at 98 cents per download, so even she is cashing in. And if selling songs faster than Thom Yorke is not exciting enough, there are now 13 Facebook groups dedicated solely to Ashley.

Every angle of this news story points to the rapid rate at which information is consumed and exchanged throughout a number of growing digital outlets—from the reveal of initial scandal to the way in which the perpetrator was caught in the first place. Whether it is a story breaking on a popular newspaper website, buying domain names to stake a claim to Internet intellectual property, or cruising Myspace to better understand the psyche behind a scandal, one thing remains clear, new media has made the public life of politicians and breaking news stories even more public and consumable.

Increasingly, the question on most minds is not if a recession is coming but when. Everyday we are confronted with shrill headlines predicting the worst for the economy. So why, as a marketer and public relations professional, am I not quaking in my shoes?

The answer is surprisingly simple: unlike other marketing categories, this downturn should be a boom for public relations. Even in recessionary times, consumers still spend dollars albeit in a more conservative manner. As the dollar becomes more precious, consumers grow increasingly skeptical of traditional advertising messages and are relying on recommendations from fellow consumers.

Companies and their brands must adapt to this shift away from traditional media to succeed. Word of mouth is king. The mass-market economy has been replaced by a “customer economy,” which calls for customer-to-customer communications built on trust. Users are embracing this form of engagement as evidenced by their activities online. According to the Pew Internet & American Life Project Surveys, 27% of Americans share files from their own computers with others online, 30% rate a product, service or person using an online rating system, 34% use the Internet to display photos and 11% use online social or professional networking sites like Facebook or LinkedIn. Traditional media services have revealed their flaws as they struggle to not only connect but remain relevant to consumers.

Public relations firms are best positioned to strategically drive branding. Leadership needs to be taken by firms that understand the universe of communications – across segments and various means of communication – and not solely a buyer-seller directive. Traditional advertising agencies will still be needed but on a smaller-scale basis. In fact, marketers have less confidence in advertising agencies and will turn to other for effective branding. More than three out of four corporate advertisers – 78% to be exact – said they have less confidence today in the effectiveness of TV advertising than they did two years ago, according to a survey released at the Association of National Advertisers TV Ad Forum (March 2006).

In 2006, Nike spent just 33 percent of its $678 million US advertising budget on ads with television networks and other traditional media companies — down from 55 percent 10 years ago, according to Advertising Age. “We’re not in the business of keeping the media companies alive. We’re in the business of connecting with consumers,” said Trevor Edwards, Nike’s corporate vice president for global and category management in an interview with The New York Times.

Today’s consumer is far more sophisticated and even more skeptical of traditional advertising messages. Public relations agencies are well positioned to lead brand strategy in today’s fragmented media environment because they can break through this wall of skepticism. PR has been delivering third credibility since its inception and has taken the lead in applying that knowledge to help brands navigate today’s hyper-syndicated Web environment in order to build lasting and meaningful connections with their core audiences. PR is adept in understanding how to communicate with all types of constituents utilizing alternative channels for building brand image, connecting with audiences effectively, delivering a demonstrable return on investment and driving sales.

Earlier this week, Electronic Arts made a big splash with public announcement of their $2 billion unsolicited offer to buy Take 2 Interactive, publisher of the Grand Theft Auto series, 2K sports franchises, and last year’s critical darling, Bioshock. Take 2 said “no thanks,” EA CEO John Riccitiello invited everyone to read his creepy love letter, and now we’re all just left waiting to see if these two crazy kids can make it work in time for the prom. If you actually have been living under a rock for the last week, Steve Totilo at MTV’s Multiplayer blog has a good digest, and The Wall Street Journal put together a very thorough run-down as soon as the news broke.

I can understand why mainstream media latched onto EA’s offer so readily - it’s a genuinely big story, even though no deal is complete… yet. EA’s a superpower in the industry, and Grand Theft Auto is definitely a super-franchise. Besides, it’s an M&A story with quite a bit of money involved, and every reader can make sense of that, even if they couldn’t pick Super Mario out of a lineup.

There is a downside to all this coverage of the not-quite-deal. It sucked all the air out of the room for the more important news, in my opinion: EA’s Blueprint division announcement. Blueprint shows a commitment to lo-fi, indie-developed games from one of the world’s biggest publishers. Combined with announcements from Nintendo and Microsoft at last week’s Game Developers’ Conference regarding snack-size game delivery channels (WiiWare and Xbox Live Community Games, respectively), low cost games from garage band developers are a bona fide industry trend. Just like every other entertainment medium, user generated video games will be awesome, and the big boys (except Sony) have acknowledged that.

At the end of the day, Grand Theft Auto will deliver mostly the same experience, regardless of what publisher owns Rockstar Studios. And if the House that Madden Built buys 2K, it just means the industry’s best baseball game will get better marketing and those signature EA white cases. Unlike the EA/Take 2 business, Blueprint is really big news that WILL impact gamers immediately.

I’m excited to see what this new batch of developers brings to the table. After all, these guys (and girls) have no reputation to uphold or shareholders to keep satisfied. They can take the risks that big studios can’t, and if genre-busters like Katamari Damacy, Fl0w, and Desktop Tower Defense are any indication, quirky and risky is just what this industry needs.