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The PR Effect


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Burson-Marsteller’s research team examines how PR is becoming more effective as the media landscape shifts.

Published in: Business, News & Politics

The PR Effect

  1. 2. Advertising has traditionally dominated the media landscape,
  2. 3. <ul><li>but other forms of </li></ul><ul><li>marketing are taking center stage, </li></ul>
  3. 4. such as digital media, flickr user rheauchyr social media, and public relations.
  4. 5. <ul><li>And, marketing dollars are moving toward these channels. </li></ul>
  5. 6. In 2005, for every $56 spent on advertising, only $1 was spent on PR.
  6. 7. 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
  7. 8. 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
  8. 9. Why is this shift happening?
  9. 10. <ul><li>Because data proves that effective PR programs drive value… </li></ul>
  10. 11. <ul><li>A well-communicated corporate mission and purpose can impact a company’s financial performance by </li></ul><ul><li>up to 17%. </li></ul>Burson-Marsteller EMEA and IMD data
  11. 12. Globally, companies with the most effective internal communications programs have 47% higher returns to shareholders. Watson Wyatt data
  12. 13. Case Study: Real estate website increased the number of paying agencies on its website by 24% after optimizing its digital and social media communications channels. Burson-Marsteller Case Study
  13. 14. <ul><li>Case Study: </li></ul><ul><li>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. </li></ul>Burson-Marsteller Case Study
  14. 15. <ul><li>Case Study: </li></ul><ul><li>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. </li></ul>Burson-Marsteller Case Study
  15. 16. 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.
  16. 18. SET MEASURABLE OBJECTIVES: Highly effective communicators are 3 times more likely to have a formal measurement program. Watson Wyatt data
  17. 19. 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
  18. 20. And, apply an EVIDENCE-BASED APPROACH. Measurement (end) Monitoring (on-going) Insights (beginning)
  19. 21. <ul><li>Use </li></ul><ul><li>DATA-DRIVEN INSIGHTS </li></ul><ul><li>to justify every </li></ul><ul><li>component of </li></ul><ul><li>a communications </li></ul><ul><li>program. </li></ul>Measurement (end) Monitoring (on-going) Insights (beginning)
  20. 22. <ul><li>MEASURE CONTINUOUSLY, </li></ul><ul><li>not just at the end of a program. </li></ul>Measurement (end) Monitoring (on-going) Insights (beginning)
  21. 23. <ul><li>Burson-Marsteller has developed TOOLS to quantify PR results, </li></ul><ul><li>such as… </li></ul>Measurement (end) Monitoring (on-going) Insights (beginning)
  22. 24. the Message Gap Analysis… Company Message Mainstream Media Message 48% Gap Measurement (end) Monitoring (on-going) Insights (beginning)
  23. 25. <ul><li>the Social Media Check-Up… </li></ul>Presence Visibility Reputation Capabilities Measurement (end) Monitoring (on-going) Insights (beginning)
  24. 26. <ul><li>and the Purpose </li></ul><ul><li>& Performance Audit. </li></ul>Measurement (end) Monitoring (on-going) Insights (beginning)
  25. 27. Ashley Welde Director, Evidence-Based Communications Burson-Marsteller [email_address]