Video as a Public Relations Tool

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1 October 2007 THOMSON FINANCIAL Video as a Public Relations Tool Lights...camera...Public relations professionals will be increasing their use of video as a communications tool, according to feedback Thomson Financial collected from over 200 public relations (PR) professionals at agencies and in-house at corporations. For more information, please contact Greg Radner at greg.radner@thomson.com. Video is picking up attention as a public relations tool. In a Thomson survey of PR professionals, 79% of respondents said they are using video as a method to communicate their message, and that percentage is anticipated to grow in the future. However, video needs to be used thoughtfully for maximum impact. Both agencies and corporations urge PR counterparts to consider the rationale and strategy for using video before setting out, as it can be an expensive and time-consuming endeavor. But in the right situation, many companies find video enormously helpful for simplifying complex messages for a media or consumer audience. In addition to PR practice, Human Resources and Investor Relations teams also are finding value in using a video to convey key messages to current and prospective employees and shareholders. So what makes a good video experience? The answer still is evolving, but this paper outlines some of the key wish list and pain point items for video creation and use today. In brief, PR professionals are wishing for the highest quality video at the lowest possible cost point. PR pros emphasize the value of measuring video viewership to justify return on investment, just as monitoring and measuring of traditional and other new media outreach methods is critical. And while most companies use an agency or vendor to create video now, a small but growing number of corporations are exploring a doit-yourself approach. Methodology Notes This white paper includes research from two separate outreach efforts to PR professionals: 1. Quantitative: Multiple choice marketing research study of business executives who are responsible for the PR function within both corporations and PR agencies. A total of 151 corporate and 50 PR agency interviews were completed by phone. Not all respondents answered all questions. 2. Qualitative: Nine in-depth interviews were completed by phone. Questions were deliberately open-ended to encourage interactive discussion and encourage unsolicited comments. Follow-up questions also were included to ensure that insightful feedback was captured in the process. All rights reserved. Reproduction of, dissemination of, modifications to or creation of derivative works from this document, by any means and in any form or manner, is expressly prohibited, except with the prior written permission of Thomson Financial. This document contains trademarks of Thomson and its affiliated companies in the United States and other countries and used herein under license. Non-Thomson marks are trademarks of their respective owners.

2 Current & Expected Future Use of Video (findings based on survey of 200+ PR professionals) Video is picking up attention as a PR tool: 79% of respondents are using video as a method to communicate their message, and that percentage is expected to grow in the future, particularly among medium-sized companies. At present, larger companies are the leaders in using video as a communications tool. On average, companies produced almost two videos per month over the last year (21.4 total over the course of a year). Not surprisingly, large companies produced more videos than small companies. Over three-quarters of companies that use videos produce them in-house; one-half of comopanies also rely on their PR agency to produce videos. More larger companies vs. small companies rely on PR agencies to produce videos. Video capabilities? Corporate PR Agency Yes, use both internally and externally 44 Yes, offer through in-house department 60 No, do not use video 21 No, do not offer video capabilities 20 Yes, internally only 19 Yes, externally only 16 Yes, offer through third party Future plans for use of video? (Corporations only) Currently Use Video Currently Do Not Use Video Stay the same 51 Yes, w ithin 6 months 0 Increase 42 Yes, w ithin 12 months 16 Decrease Yes, but longer than 12 months 28 Don't Know No plans

3 Trends in Use of Video (findings based on extensive one-on-one interviews with nine PR professionals) Companies need to think about their reason/strategy for why video usage is important Companies are using video to make a complex story simple. If there is a strong visual element to the business then use video. --PR Agency Most companies said they use video for the following reasons: --Branding: This was the number one reason cited. Video is used as a visual reinforcement of the company s brand for innovation campaigns. --Internal Communications: In particular, for employee relations/town Halls. --Recruiting and training: Video may be used to illustrate key policies for new staff, and to show the company in action for prospective employees. --B-roll: Even if shot for other purposes, video is widely leveraged as stock footage for use by broadcast journalists. --Investor relations outreach -- Although still far less common than the other three categories, IR pros and agencies are experimenting with CEO profile videos for analyst days and video analyst reports. Based on usage, it may be unsurprising that Corporate Communications is the key decision-maker regarding the plan to buy video, followed by Human Resources (particularly for employee/training related videos). PR professionals emphasize measuring video viewership to justify return on investment, although not many are doing this today. Some companies that are more tapped into Web 2.0 also measure value by whether videos made their way to YouTube via viral efforts. Middle to high quality of video is considered important. Low-cost video also is considered important. Cost of video ranges widely depending on the length of the video, complexity, required travel or other costs. Costs cited ranged from $5K (for a 2-5 minute long video) to $100K (for a full-length video annual report). Most videos are between two and five minutes long. Shorter (two to three minute) videos are recommended for a consumer audience. Around 15 minutes is considered appropriate for a journalist audience. Almost all companies interviewed use an agency or vendor to produce their videos (even many PR agencies outsource to a vendor that specializes in video production). Further, either the agency or internal IT department manages the content and posts it on the corporate web site. There was no consensus regarding a favorite agency or production company to create or manage video.

4 Video - what s working and not working Video - wish list Thomson asked PR professionals what ideally they would want in terms of creating a video for PR purposes. The wish list included: Ability to track viewership -- i.e., how many times an individual viewer and overall viewers watch the video, how long do viewers stay? Ability to measure results and justify ROI High quality of video in terms of resolution Cheaper video production Ability to use video to translate and simplify complex and business-to-business messages for a consumer audience Video - key pain points What prevents more corporations/agencies from using video to tell a company s story? Answers to this question included: Overall workload in creating a video Confusion about managing content over the long term, such as expiration of copyrights on images Some companies wish to create videos on their own, and expressed concern that using a PR agency to create a video slows down efforts. However, some of the same companies don t feel they they have the time or expertise to do it right 4

5 Thomson Financial Corporate Services Backed by more than 15 years of experience serving the needs of 4,500 corporations worldwide, Thomson Financial helps increase the efficiency and effectiveness of corporate officers across the investor relations, corporate communications, treasury and corporate finance functions. Thomson combines the industry s highest quality suite of solutions with outstanding client service and proven best practices to empower decision making across the enterprise. For more information, visit Tel: tfcorporate@thomson.com Important Notice This disclaimer is in addition to and not in replacement of any disclaimer of warranties and liabilities set forth in a written agreement between Thomson and you or the party authorizing your access to the Service ("Contract Disclaimer"). In the event of a conflict or inconsistency between this disclaimer and the Contract Disclaimer the terms of the Contract Disclaimer shall control. By accessing these materials, you hereby agree to the following: These research reports and the information contained therein are for your internal use only and redistribution of this information is expressly prohibited. These reports, including the information and analysis, and any opinion or recommendation included in the reports are not intended for investment purposes and do not constitute investment advice or an offer, or an invitation to make an offer, to buy or sell any securities or any derivatives related to such securities. Nor do these reports constitute or contain legal advice. If you require legal advice, you should consult with your own counsel. Thomson does not warrant the accuracy of the reports for any particular purpose and expressly disclaims any warranties of merchantability or fitness for a particular purpose; nor does Thomson guarantee the accuracy, validity, timeliness or completeness of any information or data included in these reports for any particular purpose. Thomson is under no obligation to provide you with any current or corrected information. Neither Thomson, nor any of its affiliates, directors, officers or employees, will be liable or have any responsibility of any kind for any loss or damage (whether direct, indirect, consequential, or any other damages of any kind even if Thomson was advised of the possibility thereof) that you incur in connection with, relating to or arising out of these materials or the analysis, views, recommendations, opinions or information contained therein, or from any other cause relating to your access to, inability to access, or use of these materials, whether or not the circumstances giving rise to such cause may have been within the control of Thomson. The information provided in these materials is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject Thomson or its affiliates to any registration requirement within such jurisdiction or country. 5

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