A survey commissioned by Time found that companies who devoted more of their advertising budget to PR advertising enjoyed recall scores comparable to corporations that mainly used product advertising, with substantially smaller budgets. Public relations ads have a “halo” effect . The persons who read ads sponsored by organizations tend not only to respond favorably to the information in the ads, they also respond favorably when the same organization is associated with issues not discussed in the ad. This goodwill carries over from one message to another. Image building: strengthen reputation, change or reinforce public perceptions, or create a favorable environment for selling company products or services. To build consumer trust in an organization, promote an organizational image, create a favorable impression or brand image. Build prestige and public respect. Does not sell a particular product or service. Example: Shell criticized that drilling causes environmental damage. “Profits and principles. Is there a choice?” Example: Weyerhaeuser, a timber company. “We’ve been North America’s growth company for 100 years.” Investor or Financial relations: Targeted to the financial community (stock analysts, stockholders, investment bankers). To inform and reassure investors that the company is well managed, worthy of investment, and has bright prospects. Announce new company name, acquisition of another company, new stock offering. Fulfills the SEC requirement of “prompt and full disclosure.” Example: Sears stock price dropped following charges that company had defrauded customers in auto repair. Used advertising to outline their plan to address these charges. PSAs: provide information, raise awareness about social issues and give how-to suggestions. Ad Council may prepare ads for national nonprofit groups. They do this as a public service. Corporations or non-profits may do PSAs. Shell Oil tells motorists how to get better gas mileage. American Lung Association warns people about the dangers of smoking. Issue/advocacy or political advertising : motivate people to support a cause or political candidate. Motivates voters and attempts to influence legislation. Delta Dental presented summaries of various studies that showed the value of dental insurance plans. The ads warned that proposed changes in the tax treatment of employee benefits would reverse the progress made in dental care. Each ad noted that Delta is the nation's oldest and largest provider of group dental insurance. The advertiser told us that they were extremely successful in getting their point across. In fact, Senate Majority Leader George Mitchell told lobbyists that he and other lawmakers had gotten the message from their ads. Announcements: to inform public promptly about something that might interest them. Recall of product, apology for a product failure, community event, expressing sympathy. Trade industry ads: stimulate generic demand for a product category, build goodwill for industry. Got Milk campaign. Generated a lot of awareness and media coverage over the years. Do you think the campaign has been successful in increasing the consumption of milk? Or does everyone just enjoy the ads but they don’t really use the product?
Advertising for Public Relations
Types of Advertising <ul><li>Consumer/product </li></ul><ul><ul><li>National </li></ul></ul><ul><ul><li>Local/retail </li></ul></ul><ul><ul><li>Trade/b-to-b </li></ul></ul><ul><li>Public relations </li></ul><ul><ul><li>Institutional/Image </li></ul></ul><ul><ul><li>Investor/Financial relations </li></ul></ul><ul><ul><li>PSAs </li></ul></ul><ul><ul><li>Issue/advocacy </li></ul></ul><ul><ul><li>Political </li></ul></ul><ul><ul><li>Announcements </li></ul></ul><ul><ul><li>Trade industry </li></ul></ul>