When I took my first job as a public relations account executive in an integrated marketing agency back in the late 90s, the vast majority of our technology clients spent a large percentage of their marketing budgets on the creation and placement of advertisements. The promotion of their products through the public relations discipline was an added luxury if there was some additional budget to spare. Then in the mid-2000s, print publications went digital and social media hit the mainstream – and how the roles have changed.
Today, all of the clients that retain my company’s public relations services primarily utilize public relations strategies and tactics, including social media marketing, to build brand awareness and drive the demand for their products and services. Very few of the clients devote budget towards advertising of any kind. What has changed the dynamics of marketing communications in the past decade to cause this shift in marketing strategy?
A study conducted by Nielsen in 2007 found that when deciding what products and services to purchase, consumers place the highest level of trust in the recommendations from other consumers (Nielsen, 2007). In fact, a report published by the Institute for Advanced Studies at Landcaster University reported that 95 percent of respondents do not trust advertising and only 8 percent trust what a company says about itself (Robles, 2010).
With such a high level of distrust in the messages conveyed through advertising, consumers have turned to trusted sources for information on products and services – their family and friends, or other unaffiliated individuals that have experience with these products and can provide an unbiased opinion of the product and brand. It is for this reason that public relations has become such an important component of the marketing communications strategy for many product companies. Through public relations tools, companies promote their products and services through articles and product reviews through the published work of unaffiliated individuals in the broadcast, print and online mediums. Social media allows product information and testimonials to be spread quickly among an individual’s close circle of family and friends providing valuable endorsements for companies and products that can quickly turn into sales.
Though the roles have switched and public relations has become the marketing communications tool of choice over advertising for many companies, there is still an important role that advertising fills. Advertising can be very effective in placing product and service information, including benefits and differentiators, in front of the eyes of their target audiences in a controlled manner. The visuals and messages conveyed through well-placed advertisements can open the eyes of a potential customer. With knowledge and interest in a particular product or service, the potential customer can then turn to the testimonial of a friend, family member or trusted journalist which can then open their wallet.
Nielsen (2007, October 3). Global Survey: Word-of-Mouth the Most Powerful Selling Tool. Retrieved from http://www.marketingcharts.com/television/global-survey-word-of-mouth-the-most-powerful-selling-tool-1884/
Robles, P. (2010, May 20). eConsultancy.com. Consumers don’t trust advertising, is social media part of the solution? Retrieved from http://econsultancy.com/us/blog/5927-consumers-don-t-trust-advertising-is-social-media-part-of-the-solution
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