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Text100 study reveals PR scores more than advertising in building brand value

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Text100 study reveals PR scores more than advertising in building brand value

In times of economic crisis such as the one being faced globally currently, the issue of Return on Investment (ROI) becomes much more relevant and sought after. Clients would want to keep track of each and every penny spent and how it helped in building the brand value. Keeping this in mind, recently Text100 Global Public Relations and its research arm, Context Analytics, announced the results of their Media Prominence Study. The study establishes that public relations may be more important than advertising to brand value, especially for companies that sell feature-rich or complicated products such as consumer electronics, financial services and automobiles.

Rowan Benecke, Regional Consultancy Director, Text100 Asia Pacific, shed light on the new findings with exchange4media. He said, “Through this study, it is established probably for the first time the impact that PR has in building brand value. It shows that PR is more powerful than advertising in building brand value and delivering real business value. Also, it is more cost effective than advertising, which becomes an important factor in these times of economic recession.”

Benecke, who will be approaching his clients in India with this new study, added, “Media Prominence is our propriety tool, and armed with this, we will help our clients to calculate the ROI they receive from public relations and quantify the impact PR campaigns have on real business metrics such as sales.”

The study was conducted to find out how communications affects a brand’s financial value. It assessed the statistical correlation between a brand’s media prominence (a weighted composite of headline, lead paragraph and text mentions in independent media coverage that is not paid for by the brand owner), and brand value across the world’s 100 most valuable brands, as measured by Interbrand in its 2008 Best Global Brands report. The results of the study underscore the importance of managing and growing brand value through public relations.

Benecke explained, “The study found that the consumers, especially in high involvement brands, trust more the reports out in publications than a 30-second commercial. The more complex a product is to a buyer, the more likely they are to research the product category and to look for information they can trust – from editorial content rather than advertisements.”


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