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In “Myth of the Month,” Mark Weiner (right), CEO of PRIME Research LLP, dispels some false assumptions about public relations.
Myth: Really great public relations programs produce instantaneous results.
Truth: The false assumption here is that “instantaneous equals great.” “Greatness” is a subjective measure defined solely by the person underwriting the program. Research conducted by PRIME on behalf of a well-known brand of snack foods indicates that PR derives one of its most powerful benefits from a very slow decay rate. “Decay rate” refers to the lifespan of the campaign after funding ends but during which it continues to demonstrate meaningful business effects.
In this case, “meaningful business effects” translated to “sales.” The brand discovered that PR continued to drive sales for up to six months following the end of a campaign while advertising lasted only two weeks. Price promotions yielded effects only until the discounts ended. On average, marketing mix models indicate that PR drives returns of about $8 on every dollar invested; ad campaigns yield only 20 cents on the dollar while price promotions actually lose 25 cents on the dollar.
So, what constitutes “great public relations?” For some companies, it’s participation. For others, it’s favorable media coverage. But most executives would agree that “profitability” is a worthy definition for greatness, and it applies equally across all business activities (not just PR).
Contact Mark Weiner at [email protected].