| "If I was down to my last dollar, I'd spend it on public | | | | for their time than for press. With performance-based |
| relations." - Bill Gates | | | | agencies, you actually pay only for press, not for |
| As unlikely as it is that Bill Gates would ever be down | | | | intangibles like time and effort. They deliver for you, or |
| to his last million dollars, let alone a single George | | | | they don't get paid. |
| Washington, the fact remains that it's a powerful | | | | Part of the issue facing corporations is the lack of |
| endorsement of the power of PR. | | | | understanding of the difference between PR and |
| Still, when the economy is tight and corporations yank | | | | advertising. If the soul of advertising is repetition - which |
| hard to get their belts down to that last notch, PR is | | | | generally cost into the tens of thousands to run an |
| usually one of the first few items on the budget that's | | | | effective campaign - the heart of PR is that clients will |
| frozen or cut completely. To bean counters, it's an | | | | likely pay one-tenth or less of the cost of an |
| easy choice. Because it's impossible to track the | | | | advertising campaign. |
| impact of PR in strict accounting terms they consider it | | | | Further, the PR delivers a larger punch because it |
| difficult to quantify PR expenditures. To the numbers | | | | focuses on the placement of articles and broadcast |
| guys, if something fails to leave a footprint on the | | | | spots in free media. Moreover, these placements carry |
| spreadsheet, it is expendable. | | | | the third-party verification factor of being in the news |
| However, the usual result of a cut in PR is an | | | | sections (not advertising) of the outlets in which they |
| "inexplicable" drop in sales and sales leads which can | | | | appear. This means that readers and viewers respect |
| make a company practically invisible to consumers and | | | | the placements more than advertising because they |
| business-to-business customers alike. Add to that the | | | | carry the tacit credibility of the outlets that carry them. |
| fact that the print and broadcast coverage almost | | | | In other words, if the editors of these outlets deem the |
| always comes with an online media counterpart | | | | company or client worthy of news coverage, then |
| repurposing their stories, PR delivers the | | | | there must be something special about them. |
| double-whammy of free press AND search engine | | | | Gates was one of the few software geniuses of his |
| fodder. So, when you cut the PR budget along with | | | | era who also understood the differences between |
| the advertising budget, it's like tossing the baby, the | | | | advertising and public relations, and was able to |
| bathwater and the bathtub. | | | | maximize both to his company's favor. But with |
| Even in lean times, public relations still provides the | | | | performance-based PR agencies, companies don't |
| highest value and greater return on investment than | | | | need a Gates-sized bankroll to capitalize on the power |
| any other marketing tactic, including promotions and | | | | of PR. In fact, they can start with about $3,500 for a |
| advertising. To increase that value, there are a number | | | | standard national radio campaign. |
| of "performance-based" PR agencies that mitigate the | | | | At the end of the day, companies can't survive the |
| risk of their clients and only get paid when they deliver | | | | lean times without a steady stream of customers |
| solid placements. Retainer-based firms operate on the | | | | coming to their doorsteps, and PR can deliver them |
| principle of making their "best efforts" to get your | | | | without busting the bank. |
| company press. With these firms, you're paying more | | | | |