Myth #1 - Public Relations Won’t Make Me Money
We live in a world where we want direct value for our time and money spent. We want to know that if we spend “A” in resources, we will get “B” in return. But for some reason, pubic relations is often thought of as a marketing agent in which that particular ROI might not happen, or cannot be quantified. However, numerous studies have shown there to be a direct correlation between an investment in PR, and a monetary return on that investment. While no form of marketing has a 100% return every time (if there was, every single company would use that same discipline every single time), public relations has one of the highest returns on investment, including higher than that of advertising.
According to a study published by the independent and not-for-profit Institute For Public Relations, industry veteran Marc Weiner cites the case study of a beverage brand that measured the impact of PR versus other forms of marketing, and its findings are typical. The data showed that $1.00 spent on TV advertising delivered $1.10 in sales. Trade advertising delivered a return of roughly $2.20 for every dollar spent. But PR delivered an incredible $8.00 for every $1.00 invested — the best of any marketing agent tested. In fact, four percent of all incremental sales were attributed to PR. While this may not sound like much, it represents tens of millions of dollars.
PR is also the only form of marketing to positively affect all other forms of marketing. When news coverage about a brand was positive and prominent, every other form of marketing was shown to be more efficient and more effective, thus creating a beneficial ripple effect across all marketing efforts.
The study goes on to point out that while it’s wonderful that PR has the best return on the dollar in terms of sales, it’s time to look beyond just the monetary ROI to the other benefits public relations brings to the table. Through PR, a company has a distinct advantage when compared to other forms of marketing. It offers the opportunity for a company to tell its story, achieve unparalleled credibility and gain the involvement and loyalty of its customers. Those brands with the most positive reputation also benefit through consistent premium pricing and customer loyalty, regardless of the economy. In short, PR is uniquely positioned to drive a meaningful company/customer interaction that builds the world’s most successful brands.