Public relations is one of the most effective tools for promoting any business, which is helpful when budgets are low. Instead of cutting down communication efforts, this is the time to start ramping them up.
Below are three reasons why PR is an ideal marketing communications strategy, especially during a recessionary period.
1. Return on Investment
Successful PR, as a practice, can generate a higher return on investment than other forms of promotion, simply because the investment is normally less. For example, a Procter & Gamble Co. study that examined the marketing of six of its brands for three years found PR was the most effective tactic for three of its brands, delivering a 275% ROI.
2. Credibility- Earned vs. Paid
Unlike paid media, earned media coverage has more weight and credibility in the minds of consumers because the information is delivered and received through credible third-party sources, such as newspapers, TV or radio stations. These delivery channels also carry an implied endorsement of a company, product or service.
3. Builds Relationships
According to the Public Relations Society of America (PRSA), “Public relations builds relationships and creates an ongoing dialogue of interaction and involvement with an organization’s target audiences and those who influence those audiences.” Establishing mutually beneficial relationships has never been more important for businesses to succeed. Consumers’ decision-making strategies are increasingly being based on or from trusted sources and information.