The respected Economist magazine reports that even in this horrible recession, corporate spending on public relations is on the rise.
“According to data from Veronis Suhler Stevenson (VSS), a private-equity firm, spending on public relations in America grew by more than 4% in 2008 and nearly 3% in 2009 to $3.7 billion,” the magazine writes. “That is remarkable when compared with other forms of marketing. Spending on advertising contracted by nearly 3% in 2008 and by 8% in the past year. PR’s position looks even rosier when word-of-mouth marketing, which includes services that PR firms often manage, such as outreach to bloggers, is included. Spending on such
things increased by more than 10% in 2009.”
Why the rise?
Part of the answer is that PR is so cost-effective, at a time when
everyone is carefully counting dollars. In healthcare, ad dollars have been shrinking because advertising is very costly and far less credible than media coverage and other awareness-building achievements generated by good PR. Moreover, the increasing need for businesses to be involved in social media — where PR shines in delivering the message — also drives investments.