By David Barr
Public Relations (PR) can often be confused with Advertising, but there is an easy to differentiate between the two, so you can work out which is more beneficial to you.
Where advertising relies on paid efforts to get your message across, PR utilises relationships to build credibility and create a positive reputation for your business, leading to growth and profitability.
We dive a little deeper in how this is achieved.
PR Demonstrates Financial Value
The Public Relations Society of America (PRSA) revealed in a recent study that PR typically generates a return on investment of around 5:1 - for every dollar spent businesses can expect to earn approximately $5 in revenue.
In 2021 Brand Finance, a brand valuation consultancy based in London, estimated that brand value accounted for around a third (37%) of the total market capitalization of the S&P 500 companies. Highlighting the financial value of strong branding and PR to businesses.
PR Generates Media Exposure
A good PR strategy can get your company substantial media coverage helping to build your credibility.
For example, a well-crafted press release distributed through a wire service can reach thousands of media outlets and generate coverage worth thousands or even millions of dollars in advertising value equivalent (AVE).
PR Helps To Build Trust
PR helps your business build customer trust by leveraging its channels, as Edelman's Trust Barometer report revealed with 61% of consumers trusting information they get from a company's owned media (websites, social media), as well as 58% trusting content from traditional media.
Attracting Talent into Your Business
According to a Glassdoor survey, 84% of employees would consider leaving their current job for a company with an excellent reputation. PR can help to highlight positive workplace culture and values helping to attract and retain top talent.
Managing a Crisis Effectively
Poorly managed crises can have a significant negative impact on businesses. A survey by PwC found that 30% of CEOs believe their company's reputation is at risk of a crisis in the next five years. Effective crisis management through PR can mitigate these risks.
Increase Your Market Share
Brands with strong PR and marketing strategies tend to command a larger slice of their target market. By effectively communicating unique selling points and benefits, businesses can gain a competitive advantage and expand their market share.
Increase Your Social Engagement
PR isn’t just restricted by traditional media it can pack a punch on social media too!
A good, integrated PR strategy can help to drive engagement and interaction on its social channels, helping to increase audience share online. A report by Sprout Social found that 71% of consumers who have a positive experience with a brand on social media are likely to recommend it to others.
Boosting Investor Confidence
Effective PR can lead to increased investor confidence. A well-managed reputation can attract more investors and contribute to stock price stability. Positive media coverage can also impact share performance.
These facts and figures highlight the tangible benefits and measurable impact that PR can have on business growth, from financial returns to customer trust and market share expansion. Highlighting the importance of investing in a well-rounded PR strategy as part of a comprehensive business growth plan.
Contact firstname.lastname@example.org to find out how your business can build its trust and credibility, identify competitors and navigate crises with a free consultation.Top of Form