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Sunday, February 18, 2007

When social media costs business

In a perfect - but negative - example of Tom Murphy's PR hype cycle, a firm has lost a multi-million pound long-term contract thanks to social media.

First came the videos posted on YouTube (see links from story in The Sun below) showing building contractors larking around on a construction site.

Then came the mass media exposure: The Sun ran the story (and showed the videos in its online version) and connected the workers to NG Bailey. Then the BBC picked it up. Next word of mouth (I've also heard details of this from a non-media source.)

The third act followed. Trade title Building reports that the Morrisons supermarket chain (the construction site was thought to be one of theirs) has as a result ended a 30-year, multi-million pound relationship with Bailey.

Bailey (no relation to this blog's author) appears unwilling to comment though the company is aware that 'communication is the key to the success of any business.' Presumably the contractual details are still with the lawyers.

UPDATE: The company published this statement on 21 February.

Posted by Richard Bailey at 08:35 AM in Crisis | Permalink

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