PR is about the story, not relationships

by Matt Heinz

Maybe 10-20 years ago, PR was more about the relationships you had with the right press. Reporters and their publications were the gatekeeper to getting your story heard, and PR professionals were the gatekeeper to those gatekeepers. But even then, relationships were only as good (and ultimately as successful) as the story you had to offer.

Today, story matters more than ever. Yes, a good relationship with press helps you break through the clutter and get a few extra minutes to pitch your story. But a good story stands on its own.

Plus, you don't have to rely on a finite set of traditional media outlets to give your story a voice to the masses. Today, you can publish on your own. Self-publishing won't have the audience others have, but that's not the point. Share that story in a public forum, that both press and your direct customers/prospects/constituents can read, and a good story can get legs, find unique angles through other storytellers and redistributors, and be shared with countless others.

Traditional PR was about telling the story of the company in question. Press releases touted what a company recently accomplished. Those are stories, but not very interesting stories.

But it's more than just shifting focus from relationships to good stories. The stories that get noticed and retold today are about others. They're about the impact you have on your customers, their industry, and the people they work with in turn.

Tom Peters wrote recently that people don't care about your story. They care about their own story. Your job, he said, was to become a primary character in your customer's story.

So if PR today is about the story, and the best stories are about the impact you can have on others, how does that change the storytelling your organization is doing today? What do you say, where do you say it, and what do you want people who read or hear that story do next?


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Matt Heinz is principal at Heinz Marketing, a sales & marketing consulting firm helping businesses increase customers and revenue. Contact Matt at matt@heinzmarketing.com or visit www.heinzmarketing.com.

Apple Tablet Won't Save Newspapers

by Braden Kelley

I came across an article talking about some of the reasons why any Apple tablet (iSlate, iPad, iTablet, Macbook, etc.) won't save the newspaper publishing industry.

Keep in mind that when it comes to innovation, it must move through a lifecycle that begins with an insight and ends with adoption. The bigger the innovation, the harder it is to progress through the whole lifecycle, especially the adoption phase. The more innovation introduced in an Apple tablet, the longer it will take to reach mass adoption.

The most important points of the article center around potential barriers to adoption of an Apple tablet and their cascade effect on becoming barriers to adoption of a newspaper subscription on an Apple tablet (especially regional or local papers). Here are a few to consider:

1. The high cost of any Apple device (likely to cost $500-700 when purchased with a data plan)


2. The high cost of an acompanying data plan (probably another $600-800 annually)


3. This will likely be an incremental not a replacement device (people will have to decide whether they can afford to buy another computer to supplement a desktop or laptop and a mobile phone or smartphone


4. Will people want to pay to subscribe to the Seattle Times when they could pay to subscribe to the New York Times, USA Today, Financial Times, or Wall Street Journal?


5. People have a lot of free online news and entertainment options


6. People must allocate their discretionary entertainment spending amongst newspapers, magazines, books, television, internet, video, music, games, and more


7. Many of the most popular App Store downloads are free or low cost items

These barriers to adoption may slow the adoption of an Apple tablet (as imagined by the most reliable of the rumor mongers). But, if or when an Apple tablet does catch on, it is quite possible that if anything, an Apple tablet might actually accelerate the demise of local newspapers.

What do you think?


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Braden Kelley is the editor of Blogging Innovation and founder of Business Strategy Innovation, a consultancy focusing on innovation and marketing strategy. Braden is also @innovate on Twitter.

Will Apple Introduce the Innovation Expected from Google?

by Braden Kelley

Some great conversations have sprung up around my previous articles on the rumored Apple Tablet (iSlate). In the past I focused on what innovation Apple's potential tablet device might offer and whether or not Apple is likely to make the rumored first year sales projection of 10 million units.

A recent comment from "Marketing Department" brought up the topic of subsidies and whether or not Apple might be on the verge of introducing another business model innovation. So, in this article we'll dig a little deeper into that possibility.

When Apple launched the iPod, they introduced the iTunes business model innovation which turned the music industry on ear, quickly followed by the television and movie industries. Then Apple launched the iPhone and introduced the App Store business model innovation and introduced a new way for people to purchase software that the competition quickly rushed to copy. Now, what could Apple create with a Tablet device?

Well, obviously the App Store and iTunes will be present on this new device, and the iTunes Store will likely be extended to cover books, newspapers, and magazines. An extension of the iTunes Store is more of an incremental innovation. So what disruptive business model innovation could Apple do that would catch the competition off-balance?

Well, in my mind, Apple could very well launch the business model innovation that I expected to come with Google's Nexus One smartphone (but didn't) - shifting the subsidy model.

Currently, when a customer buys the Google Nexus One or the Apple iPhone, the mobile service provider subsidizes the cost of the device by about $325 in exchange for a 2-year contract from the customer. This ties the customer to the carrier for two years (and usually longer). I was expecting the Nexus One launch to include an unlocked phone that Google themselves subsidized in one way or another. One way could have been to pay the customer to use the phone on whatever carrier they wished by depositing money every month in a Google Checkout account based on ad views. This did not happen.

But Apple could take this idea one step further. Not only are they moving into the advertising game with some of their recent acquisitions, but they already have the incredible reach and product offerings provided by the iTunes Store and the App Store. While several people expect any Apple Tablet (iSlate) to have a retail price of $800-$1,000, a mobile carrier subsidy might bring it down into the $500-700 range. Might not Apple then be willing to subsidize it even further based on expected future media and content sales to push the price down into the $300-500 range and make it cost competitive with netbooks and the Amazon Kindle?

After all, Apple makes money (or could make money) in a number of different ways after the device purchase:

1. Applications (Downloads, In-App Advertising, In-App Purchases)
2. Media (Music, Movies, Television)
3. Books and Textbooks
4. Subscriptions (Music Streaming, Movie Downloads, Newspapers, Magazines, TV)
5. Advertising (TBD)
6. MobileMe

You could look at this very much like HP and their ink cartridge business. But how much of a subsidy could Apple offer?

Well, some limited data I found indicates that from this particular data set that the average iTunes transaction is $7 and an average of three transactions per month are made. That would equate to about $21 per month or $250 per year. So, what if you add in games, applications, and other content?

To keep the calculations easy let's say that the $250 becomes $500 when other kinds of content are added in, and using Apple's 30% revenue share, that would give an estimate of $150 per year per user. Yes, I know this is highly simplified, and from a small dataset, but we're just imagining possibilities not doing financial forecasts.

From this point, you could go two ways, look at this as a customer lock-in possibility for Apple and a potential perpetuity, or look at a fixed device life. Again, because this is only illustrative let's simplify and say that over four years Apple might expect (using this data) to earn $600 in revenue per device (excluding advertising revenue) and if Apple decided to dedicate 25% of this revenue to a subsidy, they could allocate $150 to bring down the cost of the device and the rest to go towards costs and profits. Throw in some advertising revenue for good measure, and maybe it makes sense for Apple to subsidize this new device by the $200 that might be necessary to bring the price to customer down into the $300-$500 sweet spot.

But how much of this revenue is incremental revenue? Will the device be an incremental purchase (an additional device people buy), or will it replace a Macbook, iMac, iPhone, or iPod purchase? Would it really make sense to do this?

Hopefully these quick and crude calculations have helped you to see why Apple might consider launching their own subsidy with their rumored tablet device (iSlate, iPad, iCanvas, iTablet, Macbook Slate, etc.) and why they might not. It will be rather interesting to see what they do...


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Braden Kelley is the editor of Blogging Innovation and founder of Business Strategy Innovation, a consultancy focusing on innovation and marketing strategy. Braden is also @innovate on Twitter.

2010 - Year of the Man Purse

by Braden Kelley

I've been trying to decide whether to make any 2010 predictions, and I never thought that this would end up being the one that I chose, but here goes:

2010 will be the year of the man purse - thanks to the proliferation of netbooks, e-readers, and a new generation of tablets launching this year from Apple, Plastic Logic, Google, and others.

It probably won't happen in the first half of the year, but by the time back-to-school and christmas roll around, man purses will finally start to catch on.

Some people will call it a satchel to make themselves feel more manly, and others will see no shame in calling it a man purse, but the fact remains that people will want a way to keep close at hand the gadgets that they are beginning to see as an extension of themselves.

Way back in 2006 celebrities including Robert Downey Jr., David Beckham, and Cuba Gooding Jr. were using man purses, but they didn't cross the chasm because there wasn't enough value created for the average joe. But now, don't be surprised if by the end of 2010 you see more celebrities like possibly Shaquille O'Neil, LeBron James, or Chad OchoCinco sporting a man purse to help carry the gadgets they choose to use to connect with their fans.

For my money, the biggest unknown is not whether man purses catch on, but which devices will be their main residents. Which devices will earn the right to be worn?

Apple is not going to have this market to themselves, no matter how cool their tablet might be.

So, what kind of device will Google come up with?

Can Amazon counter with something to keep the Kindle relevant?

What do you think?

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Braden Kelley is the editor of Blogging Innovation and founder of Business Strategy Innovation, a consultancy focusing on innovation and marketing strategy. Braden is also @innovate on Twitter.

Apple Tablet Sneak Preview

by Braden Kelley

Following on from my article on what innovation an Apple Tablet might offer and Idris Mootee's article on Apple's 3D efforts for gaming, I bring you a video sneak preview of some of the innovation an Apple tablet might offer.

This isn't of course exactly what an Apple tablet (or iSlate) might look like, but it gives you an idea of one application type that an Apple device might offer, and it shows the further disruption coming to the book, magazine, newspaper, and television industries.





You can see in the video that in such a device, even more so than on the traditional web, that magazine publishers now need to have video, and merge or partner with people that produce video on the same topic. ESPN is particularly well-positioned for this type of new content consumption environment because they already have a print magazine, a web property, and content from several television channels that they can bring together into a seamless experience. It is ironic that Sports Illustrated is helping people imagine a world that ESPN is more likely to dominate than they are.

Such device capabilities will also raise the bar for what it means to publish a book, as the potential to incorporate images, video, slide shows, and mini-applications more easily will offer the opportunity for authors to better address visual and kinesthetic learners than ever before.

You can also see the possibilities to design such a device to extend television and gaming experiences beyond the main screen and make television more interactive than ever before.

At the same time, if Apple launches such a tablet device, it will still bring with it the ability to play music, video, and games in the same ways that people do today with their iPod Touch, iPhone, Nintendo DS, Sony PSP, or portable DVD player. And, if they find the right screen, Apple will likely offer the first compelling portable High-Definition (HD) entertainment experience.

With the right technology, as you see in the video, an Apple Tablet may be able to offer every single type of entertainment in a convenient way in a single, portable device (including web browsing with a mobile broadband connection).

Final thought: With such a device, there is also no reason why you couldn't get location-based services with text, audio, and video content at museums, theaters, sporting venues, theme parks, and more - to enhance any physical world experience in new ways.

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Braden Kelley is the editor of Blogging Innovation and founder of Business Strategy Innovation, a consultancy focusing on innovation and marketing strategy. Braden is also @innovate on Twitter.