The last six months have been really interesting from a crisis PR standpoint. The combination of the public’s insatiable demand for information, the online media world’s never ending quest for clicks, and some unforeseeable circumstances have created some really interesting case studies on how a crisis can unfold and how companies should deal with them in the current new media landscape.

I know this topic has been done to death, but a month later now that the dust has settled, it’s interesting to see how things unfolded. In case you’ve been living under a rock for the past few months, the public had been clamoring for more info on the upcoming iPhone 4G, which Apple wouldn’t even acknowledge existed. Then, in late April, the news broke: Gizomodo, a tech blog owned by Gawker Media (which also owns two of our favorite sites, Jalopnik and io9), had possession of a top secret iPhone 4G prototype, dissected it, and they were telling all. Sounds like a hollywood gossip column piece.

As it turns out, an Apple engineer went drinking, forgot the prototype on his stool and an observant (but unscrupulous) passerby picked it up, figured out what it was, called a different tech blog, and when they passed called Gizmodo – who paid for it. They photographed the phone, posted the story, and it got so much buzz is promptly crashed the Gawker comment server. That same night, a lawyer from Apple swung by Giz editor Jason Chen’s house and picked up the phone. Then, the police raided Chen’s home, seized his property, and Apple made rumblings about theft and lawsuits. As it turns out all pretty much settled back down to normal, and Chen ended up scoring huge traffic for his site without anything more than a verbal slap on the wrists. Then the buzz began that Apple leaked the phone on purpose to generate buzz, a silly notion to anyone who has witnessed one of Steve Job’s well-orchestrated summer unveils at Macworld. This is a company that likes to control every minute detail of its message, so leaking a story to a snarky tech blog isn’t its style. Even Gizmodo says so.

At this point, the good news is the world is snapping up iPads like crazy and people are clamoring for the new 4th Gen iPhone. On the other hand, the company’s handling of the situation (denial, then a theft complaint resulting in a raid) makes the normally friendly feeling Apply seem pretty Orwellian. So… less than a week later when Ellen DeGeneres makes a cutesy little farse commercial for her talk show about how hard texting on the iPhone can be (she’s right… especially if you have fat thumbs), you’d think the Cupertino company would just roll with it. Nope… they made a stink with the network and demanded Ellen apologize. You can see the commercial and the apology here:

So… now the company has two killer products, one that’s selling like mad and another coming soon, and Jobs looks like Darth Vader piloting the Death Star. Not good. What could they have done differently? I’m sure the company has a few agencies on 7-figure budgets to tell them, but in my humble opinion they should have done the following:

1. Stick with “no comment” until the phone was confirmed missing

2. Once confirmed, own the mistake, admit it was a prototype phone, thank Gizmodo for finding it and returning it (even before they did so… put the pressure on) then make a statement explaining that every once in a while these things happen, they’re glad reaction has been positive, and thanks to Gizmodo for treating the phone with respect. Other changes are imminent, so this isn’t the final model, but everyone got a sneak peek.

Once the cat is out of the bag, ride the positive PR and buzz and move up the release date. Oh… and don’t put the smack down on the friendly dancing TV host. She makes a living being snarky and poking fun at things… why make the target on your back even bigger?

After speaking with the organizers of the show, several manufacturers with booths at the the event, spectators and members of the media covering the festivities, I was able to draw a few conclusions. My totally unscientific gut reaction to the Del Mar Show, which is considered the first major car show of the season, is thus:

- People are ready to enjoy life again. The Saturday crowd was HUGE. People walking the show, dragging their little kids behind them, smiles beaming and cars rumbling. Every show participant I expressed a said a variant of the same sentiment: “I’m tired of hiding in my house waiting for the recession to end, it’s time to enjoy my life, my hobby, and spend a little money doing what I love.”

- Business is getting back to normal. Most of the vendors I spoke to from the automotive aftermarket said that after a very lean Winter (particularly November – January) things started picking up again February, and March was actually strong. One manufacturer I spoke to actually told me his business was UP in March compared to the same month last year.

Why? I’m not an economist or a psychologist, but my instincts tell me that:
a) Tax refunds are making an impact
b) People are tired of living in fear and need some relief. For car guys that means working on their car or going to events
c) Those who have been living frugally for the past two years need to splurge on something, and in the case of gearheads that’s car-related spending
d) Baby boomers have decided if they’re going to put money into an investment, at least you can enjoy a classic car. A mutual fund? Not so much.
e) This whole crisis has bottomed out, and is starting the slow climb back to normal.

- Media has changed. Forever. This has been happening for a while, but the change is now irreversible. Members of the “old media” were out in force at the event, from editors and publishers to ad sales people and more. Many of these folks are my friends. In fact, I used to be one of them. While editors were doing interviews and photographers were shooting feature stories, their messages were universal: the big media companies have cut staff to a bare minimum, advertising revenue is way down, and things are pretty lean.

On the flip side, social media sites were represented in force. I saw dozens of hats and t-shirts emblazoned with the URLs of different popular automotive forums, moderators and admins I spoke with were extremely upbeat and positive, and at the racetrack there were clear rivalries and affiliations based on site loyalties. There were hundreds of people shooting the event with high-end digital still cameras and high-def video cameras, and you know all that content is going to land on the web. People have become their own publishers, and while its empowering for the general public it poses opportunities for the clever marketing maven and huge risks for those who ignore it.

So what does that mean for PR & Marketing? NOW IS THE TIME TO ACT DECISIVELY. Don’t get back to the wasteful ways of old spending huge sums of money on advertising. Instead build a lean marketing program that speaks directly to the consumer. Blend traditional media relations to generate ink about how well your company is doing in the face of economic trouble, utilize a social media marketing campaign to speak directly with the most active influencers in your target demographic, and only buy ads in the most effective media outlets to reinforce the messages of the PR and Social Media campaigns.

Act now and capture the hearts and minds of consumers while your competitor is still hiding under his bed waiting for things to blow over, and you’ll not only win your old customers back, you’ll take his too. And that’s the point of a truly excellent campaign, to increase your base and make money.