These conclusions are based on several key factors Turnbull refers to as "the perfect storm."

"A manufacturing-based economy provides/provided a platform where innovation, quality and hard work were and are a distinct competitive advantage. However in an information economy, we rely totally on intangibles. Given the current state and proliferation of the Internet, even the concept of Intellectual Capital is no longer realistic or viable. Industries like PR are particularly vulnerable."

"The proliferation of the Internet has decimated any potential to create pricing pressure with information. It's all free or soon to be free. As a consequence, we are presently in the throws of the radical reallocation of wealth, influence and power."

"The media sector is disintegrating."

"The Internet's ability to deliver cultural diversity has ironically resulted in exactly the opposite. The least common denominator is now the driving force. If you look at the numbers, porn is king."

"Brand loyalty is dead. Power is totally on the consumer's side of the table now and companies are completely at their mercy. Sadly, today we have the "ADD Consumer." Consumers are no longer able to focus long enough to care no matter how much money companies throw at them to capture their attention."

Here, as I've read the study, I'll try to briefly summarize and provide commentary as to some of more salient points. Note, a good portion is just lifted directly from the study.

Chapter 1: What PR sells and what the buyers expect has become totally outmoded for the "Web 2.0" revolution. The business of PR is stuck in the 90's.

Media relations and publicity are still PR's #1 sellers and account for the lion share of the Industry's revenues. But, however successful these tactics were in the 90's, today they're not. Their effectiveness to deliver a message has almost totally eroded.

Bottom line: the key success factor was control. "We craft(ed) messages; and we manage(ed) their distribution" is/was the general premise. But today the audience is so fragmented they cannot digest anything that would rise to "crafted." In fact, "crafted" is likely flat out rejected. And the idea of "managing the message" today is unrealistic.

Why? Turnbull contends that the nature of the marketplace now is chaos. PR firms, my present employer included, try to tell you we're on top of it. Fact is we're not at all; and if anyone tells you they are, they're lying. Fact is chaos cannot be managed. It's like herding cats. That's why it's called chaos. Clients are coming to realize that their "PR Investment" is no better than a Vegas gamble where odds are you're taking the bus home busted. How have we forgotten the tech bubble?

Chapter 2: In chapter 2 Turnbull expands on the chaos factor from an internal perspective. He says that the PR Business Model centers on the expectation of some internal cohesion. There is an unwritten expectation that "the organization marches together." Today, that's a myth. The Virtual World is more like the Natural World. In the Natural World, for the cheetah to eat, his modus operandi is simply to separate the young and/or lame from the pack. Mother Nature made that easy. This is becoming the dominant approach to competition and PR is not set up presently to accommodate it.

Chapter 3: The PR Model is built on the presumption of power. In the past, BIG-ness was used to suppress small. Now Big has been rendered powerless and small is nimble and more than likely destructive. Bottom line: Bloggers by-and-large have nothing to lose. They gamble exclusively at your expense. That's unbeatable.

Chapter 4: The PR Model is built on expectation that "brand" is relatively stable. That's no longer true. Old and established brands are but dried kindling. And the bloggers? They're by-and-large kids with their own made-up rules in the backyard collecting shiny things and burning ants with magnifying glasses. Some have been known to steal their parents' matches. Excuse me but that smoke you smell is your house!

Chapter 5: On the Net, the loonies are running the asylum. The hierarchal character that was business had its functional benefits. Theoretically at least, it is an organization's version of "survival of the fittest," i.e. the stronger rose/rise to the top.

But on the Net that's all changed. Some profess that "True Power Lies in Being Flat as a Pancake." Blog celebrity Steve Rubel openly questions, "Who is a corporate spokesperson? Is it any employee who blogs, the CEO, who?" From a boardroom perspective, that's just plain lunacy. And once that control leaves the hands of those that actually know what they are doing, those that actually have a clear and mature understanding of shareholder value, it's over. Once that genie gets out, it's near impossible for companies to put it back in the bottle without resorting to fairly dramatic, draconian and most of all costly measures.

Chapter 6: PR fostered the perception that the more money one spent on a campaign, the more the results. Today that's pure-dee donkey dust. Ten years ago, a $100,000 dollars spent would likely have increase the effectiveness of a $50,000 PR campaign by a factor of 2. Today, the market is dramatically more dynamic and fluid. As such, PR, a business renowned for its elusiveness and immeasurability, is now a total crap shoot. (See Chapter #3.)

Chapter 7: The channel(s) PR targets and into which they ply their trade are totally polluted. Broad general access has made it nearly impossible for the message consumer to differentiate between good, bad, real or fake. Add to that the net is indelible. The tyranny that is Google is that garbage has a better than even chance of being quoted.

Chapter 8: With broad info access, PR has totally lost its claim to expertise. Communications is essentially common sense. As a result, the once consultative "profession" has been reduced in most cases to a base task-oriented corporate assignment. When one adds the paper-thin margins in the industry presently, the result is little creative and hugely inflated service pricing. Nothing worse then getting nothing for your money then having to pay twice as much for nothing.

CONCLUSION

"The Image Industry, Public Relations at a Flashpoint," is one of the more insightful things I've ever read regarding our industry. It is far too broad in reach to draw simple conclusions here. I am sure it will be discussed for years to come.

Personally speaking, after having read it, if I were a CEO, I'd probably fire my PR firm directly. I'd issue a company-wide restriction on all things blogging. I'd spend less on anything "spin." And I'd look at the market chaos as an opportunity to exploit my competitors' weakness.

Something to think about.

Comments?

- Amanda Chapel

PS Special thanks to Nick for the lead. Note to readers: More like these please!