During a media interview today, an experienced private equity firm partner made a prediction about when we’ll see deals begin to happen again. In a nutshell, the current market has public valuations down approximately 50% and sellers won’t sell for today’s market prices. So M&A isn’t happening. But this investor believes that the more companies trade at these levels, the more sellers will realize it’s necessary to sell at this level. He based his prediction on his experience doing deals in the software industry during the tech bubble in early 2000 which resulted in a “dramatic reset”…
• Software industry had a reset in 2000-2002, similar to the reset we’ve seen;
• After the March 2000 market crash very few deals took place for nearly two years;
• Not until the latter half of 2002 did the deal stream really begin to pick up and then it grew from 2003 - 2007. 

So according to this, if Q4 2007 was our breaking point to start this “reset”, deals should begin to pick up again in 2010.

Public relations used to be the practice of approaching the traditional media to garner third party endorsements for our clients.  These endorsements were valued by our client’s customers and their sales rose as a result.

Today, with many traditional media shutting down or moving to the internet, public relations messages placed on the web have the ability to drive a client’s sales as well as attract articles.  This is an amazing leap forward in the value of public relations. 

Driving a client’s sales on the web means pushing the client’s name up to the number one or two slot on search engines.  At LANE PR we are now as focused on a client’s search results as we are on the quantity of clips that we garner for them. 

We implement social media campaigns and drive search rankings by optimizing all of the usual public relations tools - press releases, white papers, media kits, etc.  Additionally, we are now responsible for our client’s news rooms and monitoring their search rankings and Google Analytics accounts.  Bringing these tools under our responsibility allows us to effectively monitor the results of our public relations efforts.   Public relations can now accomplish organically what pay-for-click attempts to do.  

I started LANE PR in 1990 as a public relations agency with the belief that PR was the most cost effective tool to increase sales and grow value for our clients.  Now with the advent of new media, this statement holds more weight than ever.

We’ve heard a lot about sustainable building and LEED certification, but how do you get the funding to turn well-meaning ideas into reality? One of our clients, Umpqua Bank, worked with Energy Trust of Oregon to create an innovative new lending program that’s filling this gap. Called GreenStreet Lending, it offers financing options designed to help small businesses and homeowners manage rising energy costs by making it easier to invest in energy efficiency and renewable energy projects. What better way to spur economic growth than with green-building projects?

People are cutting back financially wherever they can. It’s gotten so bad according to a survey released this week that people may even revise their cell phone plans and cut out mobile internet access.

Survey finds:
• About 19 million Americans, or one in five cell phone users with extras, have considered cutting back on extras or have already, while 41% of cell phone users said it is very likely or somewhat likely that they will cut down on extras if the economy worsens.

And it’s not just all talk…
• 8,740,000 Americans — that is 19% of consumers with a cell phone — report that they already have ‘discontinued cell phone service in the last six months because of actual job loss, fear of job loss, the recession, or any other related financial concerns.’

Check out more details of the survey results:
http://www.consumeraffairs.com/news04/2009/03/recession_cellphones.html

I had the pleasure of sitting in on a middle market private equity company’s annual meeting recently in Chicago. It’s always interesting to get different perspectives and predictions on the state of the economy and the timeframe of its recovery… as well as how that recovery will actually happen.

A private equity investor with a 30+ year tenure in the industry finds the following:

• PATIENCE: We must be patient – this is a process, not an event.

• LOW GROWTH: for the next three to five years we will be in an “L” recovery (versus U or V) and experience low growth.

• SAVINGS: We must change the way we look at our assets and how we both spend and invest our money.  For Americans, homes were once our primary asset, but now we need to become savings driven, not real estate driven.

• THINK LOCAL: Recovery will begin at the local level with small business and grow outward from there. Innovation is key to helping move this recovery along.

This is my first blog about technology and truly, my first blog ever.  I would like to talk about technology and business from a historical 10,000-foot level.  As a public relations practitioner, I remember when key client messages were delivered by snail mail and the telephone.  My children will tell you that they remember stuffing envelopes full of press releases in front of Sesame Street.  

I was at another advertising and public relations firm in the 1980s.  I attended a KPMG breakfast that featured Regis McKenna.  Regis was the person who used public relations to launch Apple.  He told our morning audience that the future was bright.  In 10 years we would all have amazing computing ability that would allow us more free time.  Regis was a very bright guy, however, I don’t think that he understood human nature and could envision how much more people would allow those computers to cram into their 24/7 days.

Also in the 1980s, Waggener Edstrom hired our firm to help launch Microsoft Windows at the Guggenheim Museum in New York City.  They told me that Windows was the equivalent of a new typewriter and wanted to portray the influence of the typewriter through the ages on business as one walked up the curved galleries at the museum.  It was a big, visual idea.

Around that time came the age of the fax, and fax machines initially couldn’t talk to fax machines from other brands.  This seemed a complete waste of time as no fax brand rose to gain the majority market share.  Fortunately, technology that allowed cross-branded fax machines to talk to each other came on the market.

In the early 1990s I attended an Internet conference in Los Angeles.  There were over 500 people in the room and the Internet on the screen was black and white, no picture, and plain text.   A marketing fellow from a national beer brand stood up to demonstrate the first Internet sales promotions that I ever saw.  It was pretty rough.

But Web sites were growing in importance and programmers seemed to be making their development as mysterious and expensive as possible. My firm had a rather large client who wanted a Web site.  We obtained three price quotes and the best one was for $200,000.  Obviously, the client decided not to be first to market with this new technology avenue.

Starting my company, LANE PR, in the 1990s, I made the personal commitment to spend any cash reserves on high quality talent and the latest technology.  As Web sites and e-mail became important, my spending on technology increased.  Then we started to attract technology companies as clients.

It was the late 1990s heyday.  Public relations firms became totally focused on technology.  VC firms referred their favorite public relations firms to their portfolio companies.  The average public relations retainers in Silicon Valley were $60,000 per month.  Advertising was growing as well, so the technology and business magazines became two inches thick.  The entire strategy was to launch a company, gain market share through public relations and advertising in an 18 month period (18 months was deemed the viable business window for most technology ideas), and sell or go public.

I liked technology clients.  They were smart, visionary and confidant.  Unfortunately, March 2001 came around with a technology-based recession.  The technology companies whose only business model was market share tanked.  The media was roundly blamed for not understanding traditional business models and drinking the Kool-Aid with these confident technology CEOs. 

That brings us to the post-technology recession period.  I will talk about that in my next blog.

Wendy Lane

During an amazing two-week adventure in western and southern Ireland, I saw and tasted dozens and dozens of loaves of soda bread.  What I found to be most fascinating were the variations in taste, texture and color.  While some differences were more subtle, others were more dramatic, including the addition of such ingredients as caraway seeds, dried fruits and nuts.

Much to my delight, soda bread (often called “brown bread”) was served at every meal in Ireland.  At breakfast, I’d slather a warm slice with chunky orange marmalade made by the owners of our B&B; at lunch, as an open-faced sandwich topped with thick slices of heavenly smoked salmon and a side of greens; and at dinner, to sop up the remains of my seafood chowder, soup or Irish stew.  

Soda bread’s roots trace back to the 19th century, when baking soda was introduced as a leavening agent. Combined with flour and buttermilk, and salt, it’s extremely simple to make.  The Irish are committed to safeguarding the tradition of soda bread.  In fact, there’s even a “Society for the Preservation of Irish Soda Bread.”

Just in time for St. Patrick’s Day, the following is a basic recipe, courtesy of EatingWell.com.

Whole-Wheat Irish Soda Bread

Ingredients
• 2 cups whole-wheat flour
• 2 cups all-purpose flour, plus more for dusting
• 1 teaspoon baking soda
• 1 teaspoon salt
• 2 1/4 cups buttermilk

Directions
Preheat oven to 450 degrees F. Coat a baking sheet with cooking spray and sprinkle with a little flour. Whisk whole-wheat flour, all-purpose flour, baking soda and salt in a large bowl. Make a well in the center and pour in buttermilk. Using one hand, stir in full circles (starting in the center of the bowl working toward the outside of the bowl) until all the flour is incorporated. The dough should be soft but not too wet and sticky. When it all comes together, in a matter of seconds, turn it out onto a well-floured surface. Clean dough off your hand.
Pat and roll the dough gently with floury hands, just enough to tidy it up and give it a round shape. Flip over and flatten slightly to about 2 inches. Transfer the loaf to the prepared baking sheet. Mark with a deep cross using a serrated knife and prick each of the four quadrants.

Bake the bread for 20 minutes. Reduce oven temperature to 400° and continue to bake until the loaf is brown on top and sounds hollow when tapped, 30 to 35 minutes more. Transfer the loaf to a wire rack and let cool for about 30 minutes.

Attending the 2009 PRWeek Awards for the first time was an event I’ll never forget.  My firm, LANE PR, was one of the few, if not only, West Coast PR agencies to attend.  We were in great company:  from Ikea to Wii Fit, American Airlines to Crocs and don’t forget the ice cream, yes, Häagen-Dazs; some of the greatest communicators in the nation were there.

For most of those in attendance, they work their magic from behind a curtain, giving voice to brands, translating jargon and influencing business strategies everyday – all while standing behind a curtain not so dissimilar from that of Oz. Yet for one night, at New York’s famed Tavern on the Green, the spotlight was all theirs. I felt fortunate to be a part of it.

The staff of PRWeek were incredibly welcoming as they made their way through the room and everyone I spoke with was eager to brainstorm strategies that worked, or didn’t, throughout the past year. The event was well worth the long trip. To walk in as a finalist was an honor in its own; to be selected from among such an accomplished group as PRWeek’s 2009 Young PR Professional of the Year was humbling.  Public relations is a fascinating industry.  It was inspiring to see so many people come together to not only celebrate our individual wins, but appreciate one another’s work and the industry that we’ve built our careers within.

I am getting into Twitter more every day.  It’s exciting to see which companies and brands are using Twitter and how they’re using it to promote their business and/or product.  Last week I went to Voicebox (www.voiceboxpdx.com), a new karaoke hot spot in Portland.  It’s not a typical karaoke bar; you rent private rooms for 10-12 people.  When we arrived, an employee promptly got us set up in our private room and took our drink orders.  He announced that if we were on Twitter and started “following” @voiceboxpdx on Twitter, or even just gave them a shout out, we would receive two-for-one drinks for the entire evening. 

I thought it was a genius idea. Voicebox makes instant Twitter followers with every group that comes in.  And because I now follow @voiceboxpdx on Twitter, I am privy to Friday tweet specials.  Last week’s special was the first two groups to “tweet” that evening got a private room for 18 people at half the cost. If you’re on Twitter, check them out.

A number of members of the media have told me they think traditional trade shows are dying, albeit a slow death. While this varies depending on the industry the trade show serves, the editor of an engineering publication, whose staff traditionally frequented industry shows, believes the trade show will be obsolete within the next five years due to associated costs and resources. And it will be replaced by the virtual show.

About a week later, during my travels to Chicago, I picked up the Tribune and found this interesting piece on the same topic and showcasing some success stories of virtual shows http://www.chicagotribune.com/business/chi-mon-virtual-trade-show-feb23,0,1946913.story

Just like the ever increasing interaction online has replaced old-fashioned phone calls and long business lunches, will the virtual trade show really be able to successfully replace the more subtle but undeniably better connection you get with someone after having an in-person conversation and a handshake?

We just wrapped up a PR/community relations campaign for Save-A-Lot Food Stores (www.save-a-lot.com).  This is the second time we’ve had the opportunity to work with Save-A-Lot; the LANE PR team introduced the company’s first Pac NW stores in 2006. 

On Feb. 28, all Save-A-Lot grocery stores in Oregon and Washington held “Fuel Your Family for Free” events where customers were given free groceries – all the makings for a spaghetti meal.  During such a tough economic time, this was a way Save-A-Lot could reach out to their local communities and give a helping hand – and needless to say, it was well received!  They also made a matching donation to local food banks, furthering their reputation as a true community partner.

We were challenged with a very short deadline (two weeks in total – and only one to actually promote to the media) and a wide range of tasks, including coordinating street teams, outreach to local food banks and community organizations, scheduling live radio remotes for the events, and of course a fast-and-furious media campaign.  It was a lot of work but we had a blast getting the word out on such a great – and timely – promotion!

Each store opened its doors first thing in the morning to a long line of eager customers.  Hugs, thank you’s and smiles were in abundance all day as people passed through the store to pick up their free groceries from the friendly Save-A-Lot staff.  It was a heartwarming experience. 

And the results of the campaign spoke for themselves…  In just one week, more than 150 media stories were placed; nearly 9,000 meals were given out to customers, as well as 9,000 meals donated to local food banks - an overall success for the client and wonderful project for the LANE PR team to be a part of!

PRWeek awarded Shannon Riggs of LANE PR its 2009 Young Professional of the Year award, which recognizes the outstanding achievements of a PR professional that has been in the industry for less than three years. The award was presented at a gala event at Tavern on the Green in New York on March 5.

Riggs has been with LANE PR nearly three years and works with Integra Telecom, Umpqua Bank and Miller Nash. PR Week recognized her success on a number of campaigns, including her work on Integra Telecom’s acquisition of Eschelon Telecom acquisition, which doubled revenue for Integra Telecom to $700 million, and on Umpqua Bank’s “Lemonaire” campaign, which helped the bank open 2,331 new accounts and bring in total new deposits of $113 million.

Click here to read the article.

It’s tough to be optimistic about the economy today.  The market remains volatile on a daily basis, the unemployment rate is the highest it has been in 25+ years, G.E. is in trouble (read the NY Times article from this past Sunday), I could go on and on.

However, Justin Fox from TIME magazine had some thoughts this morning about why he is optimistic right now.  While he’s not particularly convincing, and even a little wishy washy on some of his points, if you’re looking for some hope consider his 3 reasons why you should be optimistic about the economy:

1. Stock market not overpriced (Fox says don’t just look at one year of earnings.)
2. Government involvement in fixing the economy (While many would say yikes to this, Fox claims we should be thankful that the government is being proactive, realistic and moving us forward.)
3. Consumer savings rate up (This is good in the long term and even in the short term because it helps us get to the bottom quicker so we can move into recovery.)

Here’s the full CNBC segment with Justin Fox: http://www.cnbc.com/id/15840232?video=1057945685&play=1

It’s hard to miss the blue and white windmill embossed on dozens of Dutch Bros. drive-through coffee stands planted around the state. The quirky logo is going to be even more common as the company plans to expand in the middle of one of the worst economic downturns in U.S. history.

What makes the Grants Pass company seemingly recession proof?  Convenience and value, according to co-founder Travis Boersma. Dutch Bros. puts more espresso shots in its steamed drinks and charges less than Starbucks. And raising prices is the last thing Boersma plans to do.

“Customers want value; they want more bang for their buck,” he says. “Especially when times are tough.”

Click here to read the full article

I met with a member of the Forbes Chicago bureau this week. We had a lengthy discussion about the shift to media consumption online and how that has changed her job.

She informed me the big push now is for “snippets” – very brief online news pieces that are constantly being replaced by other snippets as news is pumped out in real time.

However, she said what she most enjoys is investigative reporting and in-depth feature stories. So in order to best serve both her interests and her editors’ push for frequent, brief online posts, she is now producing what we decided to call “snippet features”. 

Can a feature story also be a snippet? This is the reality for many reporters today.

While competing upscale hotels here in the Seattle suburbs are busy cutting services as a reaction to the recession, the four-diamond Heathman Hotel in Kirkland, WA, has decided to move in the opposite direction, adding a touch of complimentary class in the form of a recently established town car service to area businesses during the morning and evening rush hours.

Read the full article here.
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