The PR Effect

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

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.

TV advertising: $56 billion

Internet advertising: $23 billion

Direct Marketing: $48 billion

Newspaper: $30 billion

Magazine Advertising:$18 billion

PR:$4 b

Data: Zenith Optimedia Analysis: Burson-Marsteller

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

Why is thisshift 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%.

Burson-Marsteller EMEA and IMD data11

Globally, companies with the most

effective internal communications

programs have 47% higher returns to

shareholders.

Watson Wyatt data12

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.

13Burson-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.

14Burson-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.

15Burson-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.

Watson Wyatt data18

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 data19

And, apply an EVIDENCE-BASED

APPROACH.

20

Measurement(end)

Monitoring (on-going)

Insights(beginning)

20

UseDATA-DRIVEN

INSIGHTSto justify everycomponent of

a communicationsprogram.

Measurement(end)

Monitoring (on-going)

Insights(beginning)

21

MEASURE CONTINUOUSLY,

not just at the end of a program.

22

Measurement(end)

Monitoring (on-going)

Insights(beginning)

22

Burson-Marsteller has developed

TOOLS to quantify PR results, such as…

Measurement(end)

Monitoring (on-going)

Insights(beginning)

23

the Message Gap Analysis…

Company Message

Mainstream Media

Message

48%Gap

Measurement(end)

Monitoring (on-going)

Insights(beginning)

24

the Social Media Check-Up…

Presence Visibility

Reputation Capabilities

ContentLorem

ipsum

dolor sit

Maecena

s ac dolor

ornare

Duis

pharetra

justo non

Curabitur

placerat

eros a

diam

feugiat

fermentu

Cras

sollicitudi

n enim ac

tellus

pharetra

Quisque

mollis

neque

nec dui

euismod

accumsa

Vivamus

tristique

quam

vitae

turpis

bibendum

Nullam

eu metus

ac odio

laoreet

rutrum.

Proin ut

erat

Curabitur

scelerisq

ue iaculis

nisi vitae

tristique

Engagement

Measurement(end)

Monitoring (on-going)

Insights(beginning)

25

and the Purpose & Performance

Audit.

26

Purpose

Communication

Purpose

Impact

Financial

Performance

timepast 2005 2009

Financial Performance

Measurement(end)

Monitoring (on-going)

Insights(beginning)

26

An Evidence-Based Approach…

a focus on outcomes,

Measurement(end)

Monitoring (on-going)

Insights(beginning)

with measurable objectives,

and continuous measurement =

Ashley Welde

Director, Evidence-Based Communications

Burson-Marsteller

[email protected]