Bill Gates once said, “If I was down to my last dollar, I would spend it on public relations.” From this statement, it is clear that even “Billionaire Bill” finds great value in public relations and would go as far as investing his very last dollar on the practice. Why? It is because he knows that public relations will show great returns on his investment.
When it comes to return on investment or ROI in public relations, it is hard to precisely quantify the value of it strictly in dollar amounts. Sure, we can measure things such as media impressions, reach, analytics and social media interaction. However, the real value in PR comes from brand building and generating awareness. If you are able to establish those elements than you will be able to double, maybe even triple your investment over a period of time.
There is a common misconception that getting media hits in publications like The New York Times will result in direct dollar for dollar sales. While getting media hits can in fact, result in a large number of sales, there is an intangible value that makes the ROI much greater. As stated above, some of intangible elements that add value are brand awareness, credibility and brand recognition. These elements should not be overlooked because they are all essential for a brand or company’s success even though they are difficult to measure.
So how can you tell if your PR firm is actually building your brand and returning your investment? Read on here.
** A fellow boutique PR firm in New York City, Indra Public Relations, authored the original article posted here.