Seventy percent of large corporations' PR budgets exceeded $1 million in 1997, according to a first-time survey of Fortune 500 companies. The upward trend indicates a renewed commitment to communications as well as an ever-growing reliance on outsourcing for specialties which include media relations and public affairs.
The survey also shows that PR is gaining more than just dollars. It's earning recognition in the corporate milieu: 77 percent of the corporate communications execs surveyed say the importance their organizations have placed on PR has increased in the past five years.
One of the companies queried in New York-based Nichol & Co.'s "Importance of PR at Fortune 500 Companies," study tells PR NEWS it had a 100 percent spike in its PR budget over 1997.
Paula Thomas, manager of corporate communications and PR for Oak Brook, Ill.-based Ace Hardware Corp., wouldn't disclose the exact annual PR budget, but said the increase funds media-relations work by Defrancesco Goodfriend, a small PR boutique based in Chicago that Ace has used for the past two years.
DG handles many PR tasks for Ace, including creating "guide-to-publicity kits" to help generate local press for regional operations. Ace boasted nearly $15 billion in retail and wholesale sales last year.
Outsourcing Becomes Long Term
Outsourcing no longer is a practice only hitched to programs or campaigns that have a limited life span, such as product launches. Responses to Nichol's survey indicate that the bedrock of PR is a dependence on long-term formulas or tactics, some borne out of brand promotion, investor relations, crisis management and lobbying.
Creating long-term PR programs has become a mainstay for corporate communications divisions turning to consultants and other third-party vendors to round out their communications strategies.
Of the 103 companies that responded to the Nichol poll, crisis communications (which includes the discipline of media relations) was named as the "most important function" by 32 executives. Other leaders were:
- marketing communications (30);
- investor/financial relations (30)
- internal communications (22)
Fortune 500s aren't the only organizations benefiting from the raised awareness of PR's importance. The philosophy is trickling down to smaller companies and non-profits.
For instance, the YMCA of Greater New York hired a VP of communications for the first time last year. Previously, that strategic role fell within the job responsibilities of the VP of fund development.
Founded more than a century ago, the YMCA maintains 19 branches with 348,000 New York members and an annual budget of about $80 million. It allocates about $500,000 a year for PR, according to Pamela Bayless, communications VP.
The amount includes what's diced up for outsourcing. The firm has hired support for everything from the organization's just-launched Web site, http://www.ymca.nyc.org, to publicity efforts for its one-year-old "The Virtual Y" program, an initiative that positions the organization as a defender of social and educational issues, a PR plus for any group.
Through the Virtual Y program, 67 public schools have been invited to take part in YMCA reading-enhancement programs.
Recognition Includes Regional PR
The reliance on PR dots the U.S. For example, Valvoline Instant Oil Change's PR budget hasn't grown dramatically, but the corporation is placing more emphasis on PR, says Craig Grenko, director of marketing for the Lexington, Ky.- based division that supports 4,500 oil change centers nationwide.
Execs at the $1.1 billion Valvoline unbrella corporation have indicated a sway toward PR if its value can be measured. Increasingly that's being achieved through strengthening relationships with franchisees through grassroots PR, Grenko says.
Valvoline turned to Nichol & Co. about 18 months ago to foster a stronger rapport with local media outlets for business features and articles.
Part of that includes seeking coverage in magazines such as Entrepreneur and Inc. and newspapers in the southeast where franchise growth is targeted. The goal is to reach business entrepreneurs and retirees, groups Valvoline targets to buy franchises. (Ace, 630/990-6600; Nichol & Co., 212/889-6401; YMCA, 212/630-9627; Valvoline, 760/931-2957.)
Proper Presentation Planning
Experts advise to plan carefully to maximize the chances of success when speaking. That entails answering these questions:
- Who is my audience?
- How will I tailor my presentation to the audience?
- What is the objective of my presentation?
- How will I open my presentation?
- How will I close my presentation?
- How will I organize the body of my presentation?
- How will I get their attention?
- How will I keep their interest?
- What questions will I ask?
- What visual aids will I use?
- What notes, visuals and materials do I need to take with me?
Source: Arnold Sanow, motivational speaker