The PR Effect

Advertising has traditionally dominated the media landscape,

but other forms of
marketing are taking center stage,

such as digital media, flickr user rheauchyr social media, and public relations.

And, marketing dollars are moving toward these channels.

In 2005, for every $56 spent on advertising, only $1 was spent on PR.

Today, the PR:advertising ratio is $1:$44 This $1:$56 ratio is moving in PR’s favor… And in 2012 it will be $1:$40. Data: Zenith Optimedia Analysis: Burson-Marsteller TV advertising: $56 billion Internet advertising: $23 billion Direct Marketing: $48 billion Newspaper: $30 billion Magazine Advertising: $18 billion PR: $4 b

PR spend will increase 35% , Zenith Optimedia Burson-Marsteller So, from 2005 to 2012, and advertising spend will decrease 3% . Data: Zenith Optimedia Analysis: Burson-Marsteller

Why is this shift happening?

Because data proves that effective PR programs drive value…

A well-communicated corporate mission and purpose can impact a company’s financial performance by
up to 17%.
Burson-Marsteller EMEA and IMD data

Globally, companies with the most effective internal communications programs have 47% higher returns to shareholders. Watson Wyatt data

Case Study: Real estate website casa.it increased the number of paying agencies on its website by 24% after optimizing its digital and social media communications channels. Burson-Marsteller Case Study

Case Study:
The World Wildlife Foundation awarded the green light to Norwegian cod fishing and exports increased by up to 34% after a public relations program restored public opinion about the sustainability of cod fishing in Norwegian waters.
Burson-Marsteller Case Study

Case Study:
Research-based messaging about the ease of bypassing common home security systems increased the sales of home insurance products 44% for a leading regional insurance company.
Burson-Marsteller Case Study

Case Study : A New York City Board of Elections public education campaign resulted in 84% of New Yorkers reporting that they were confident about how to use a newly-implemented voting system.

SET MEASURABLE OBJECTIVES: Highly effective communicators are 3 times more likely to have a formal measurement program. Watson Wyatt data

FOCUS ON OUTCOMES: 53% of highly effective communicators are increasing use of outcome metrics – as compared with only 34% of less effective communicators. Watson Wyatt data

And, apply an EVIDENCE-BASED APPROACH. Measurement (end) Monitoring (on-going) Insights (beginning)

Use
DATA-DRIVEN INSIGHTS
to justify every
component of
a communications
program.
Measurement (end) Monitoring (on-going) Insights (beginning)

MEASURE CONTINUOUSLY,
not just at the end of a program.

Burson-Marsteller has developed TOOLS to quantify PR results,
such as…

the Message Gap Analysis… Company Message Mainstream Media Message 48% Gap Measurement (end) Monitoring (on-going) Insights (beginning)

the Social Media Check-Up…
Presence Visibility Reputation Capabilities Measurement (end) Monitoring (on-going) Insights (beginning)

and the Purpose
& Performance Audit.

Ashley Welde Director, Evidence-Based Communications Burson-Marsteller [email_address]

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The PR Effect

by Burson-Marsteller on Nov 17, 2010

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