Advertising
has traditionally
 dominated the
media landscape,




                    2
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.




5
………………………………………………………………………………………………………………………………………………………………………………………………………….




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




                         6
This $1:$56 ratio is moving in PR’s favor…

TV advertising: $56 billion

Direct Marketing: $48 billion

  Newspaper: $30 billion
    Internet advertising:
         $23 billion
          Magazine            Today, the PR:advertising ratio is $1:$44
        Advertising:
         $18 billion
           PR:
           $4 b




                   And in 2012 it will be $1:$40.


                                                          Data: Zenith Optimedia   Analysis: Burson-Marsteller
So, from 2005 to 2012,




                     PR spend will
                    increase 35%,


                               and advertising spend will
                                   decrease 3%.
Zenith Optimedia
Burson-Marsteller                              Data: Zenith Optimedia   Analysis: Burson-Marsteller
Why is this
    shift happening?




9
Because data
  proves that
 effective PR
programs drive
    value…




                 10
A well-communicated
corporate mission and
purpose can impact a
 company’s financial
   performance by
     up to 17%.




 11
 Burson-Marsteller EMEA and IMD data
Globally, companies
   with the most
 effective internal
 communications
programs have 47%
 higher returns to
   shareholders.




                           12
              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.


13
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.


                                            14
                     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.



15
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.



16
SET MEASURABLE
  OBJECTIVES:
   Highly effective
 communicators are
 3 times more likely
  to have a formal
measurement program.




                             18
                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.




19
Watson Wyatt data
Insights
                              (beginning)
 And, apply an
EVIDENCE-BASED
  APPROACH.           Measurement    Monitoring
                         (end)       (on-going)




                 20                               20
Use
   DATA-DRIVEN
      INSIGHTS
   to justify every
   component of
 a communications
      program.

               Insights
             (beginning)


     Measurement    Monitoring
        (end)       (on-going)




21
MEASURE
 CONTINUOUSLY,
  not just at the
end of a program.

             Insights
           (beginning)


   Measurement    Monitoring
      (end)       (on-going)




                               22   22
Burson-Marsteller
      has developed
     TOOLS to quantify
        PR results,
         such as…

                  Insights
                (beginning)


        Measurement    Monitoring
           (end)       (on-going)




23
48%
                                     Gap




                                             Mainstream
 the Message                       Company
                                   Message     Media
Gap Analysis…                                 Message




            Insights
          (beginning)


 Measurement     Monitoring
    (end)        (on-going)




                              24
the Social Media
                                                                                                      Check-Up…

Presence     Visibility
                                                                                                                  Insights
                                                                                                                (beginning)

Reputation   Capabilities
                                                                                                       Measurement     Monitoring
                                                                                                          (end)        (on-going)




                                                                      Vivamus
                                                          Cras
                               Lorem                                  tristique
                                              Duis
                   Content
                                                       sollicitudi
                               ipsum                                    quam      Proin ut
                                            pharetra   n enim ac
                                                                         vitae      erat
                              dolor sit    justo non     tellus
                                                                        turpis
                                                        pharetra
                                                                     bibendum



                                           Curabitur   Quisque
                                                                      Nullam      Curabitur
                                            placerat     mollis
                 Engagement
                              Maecena                                eu metus     scelerisq
                                             eros a     neque
                              s ac dolor                              ac odio     ue iaculis
                                              diam      nec dui
                                ornare                                laoreet     nisi vitae
                                             feugiat   euismod
                                                                      rutrum.      tristique
                                           fermentu    accumsa



                                                                                               25
and the Purpose
 & Performance
     Audit.

             Insights
           (beginning)


   Measurement    Monitoring
      (end)       (on-going)



                                        Purpose       Purpose
                                      Communication    Impact



                                    time
                                           past       2005                     2009




                                       Financial
                                                             Financial Performance
                                      Performance




                               26                                                     26
Insights
                                            (beginning)

An Evidence-Based Approach…          Measurement   Monitoring
                                        (end)      (on-going)




                 with measurable objectives,
                  a focus on outcomes,
                    and continuous measurement =
Ashley Welde
Director, Evidence-Based Communications
Burson-Marsteller
ashley.welde@bm.com

The PR Effect

  • 2.
  • 3.
    but other formsof marketing are taking center stage,
  • 4.
    such as digitalmedia, flickr user rheauchyr social media, and public relations.
  • 5.
    And, marketing dollars are moving toward these channels. 5
  • 6.
  • 7.
    This $1:$56 ratiois moving in PR’s favor… TV advertising: $56 billion Direct Marketing: $48 billion Newspaper: $30 billion Internet advertising: $23 billion Magazine Today, the PR:advertising ratio is $1:$44 Advertising: $18 billion PR: $4 b And in 2012 it will be $1:$40. Data: Zenith Optimedia Analysis: Burson-Marsteller
  • 8.
    So, from 2005to 2012, PR spend will increase 35%, and advertising spend will decrease 3%. Zenith Optimedia Burson-Marsteller Data: Zenith Optimedia Analysis: Burson-Marsteller
  • 9.
    Why is this shift happening? 9
  • 10.
    Because data proves that effective PR programs drive value… 10
  • 11.
    A well-communicated corporate missionand purpose can impact a company’s financial performance by up to 17%. 11 Burson-Marsteller EMEA and IMD data
  • 12.
    Globally, companies with the most effective internal communications programs have 47% higher returns to shareholders. 12 Watson Wyatt data
  • 13.
    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. 13 Burson-Marsteller Case Study
  • 14.
    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. 14 Burson-Marsteller Case Study
  • 15.
    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. 15 Burson-Marsteller Case Study
  • 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. 18 Watson Wyatt data
  • 19.
    FOCUS ON OUTCOMES: 53% of highly effective communicators are increasing use of outcome metrics – as compared with only 34% of less effective communicators. 19 Watson Wyatt data
  • 20.
    Insights (beginning) And, apply an EVIDENCE-BASED APPROACH. Measurement Monitoring (end) (on-going) 20 20
  • 21.
    Use DATA-DRIVEN INSIGHTS to justify every component of a communications program. Insights (beginning) Measurement Monitoring (end) (on-going) 21
  • 22.
    MEASURE CONTINUOUSLY, not just at the end of a program. Insights (beginning) Measurement Monitoring (end) (on-going) 22 22
  • 23.
    Burson-Marsteller has developed TOOLS to quantify PR results, such as… Insights (beginning) Measurement Monitoring (end) (on-going) 23
  • 24.
    48% Gap Mainstream the Message Company Message Media Gap Analysis… Message Insights (beginning) Measurement Monitoring (end) (on-going) 24
  • 25.
    the Social Media Check-Up… Presence Visibility Insights (beginning) Reputation Capabilities Measurement Monitoring (end) (on-going) Vivamus Cras Lorem tristique Duis Content sollicitudi ipsum quam Proin ut pharetra n enim ac vitae erat dolor sit justo non tellus turpis pharetra bibendum Curabitur Quisque Nullam Curabitur placerat mollis Engagement Maecena eu metus scelerisq eros a neque s ac dolor ac odio ue iaculis diam nec dui ornare laoreet nisi vitae feugiat euismod rutrum. tristique fermentu accumsa 25
  • 26.
    and the Purpose & Performance Audit. Insights (beginning) Measurement Monitoring (end) (on-going) Purpose Purpose Communication Impact time past 2005 2009 Financial Financial Performance Performance 26 26
  • 27.
    Insights (beginning) An Evidence-Based Approach… Measurement Monitoring (end) (on-going) with measurable objectives, a focus on outcomes, and continuous measurement =
  • 28.
    Ashley Welde Director, Evidence-BasedCommunications Burson-Marsteller ashley.welde@bm.com