The uncertain economic climate continues to affect marketing and public relations budgets. However, a recent study from Text 100, a global boutique PR consulting firm, illustrates the positive impact public relations can have on a company’s brand value.
The study, outlined in a recent PRWeek article, found companies that produce more complicated products benefit more from PR than those companies in sectors like personal care and apparel. In fact, 27 percent of a brand’s value is tied to how often the brand name appears in the press.
Products that are more complex such as computers and cars are more affected by media coverage. For example, if a consumer conducts research on a product before making a purchase, media impressions (public relations efforts) have a larger impact.
Nils Mork-Ulnes, vice president of Context Analytics, opines “Where there is more risk involved for the buyer is where the link between real brand value and media prominence is the strongest.” Although public relations efforts still benefit companies in industries such as personal care and apparel, I agree with Mork-Ulnes’ statement.
Text 100 and Context Analytics examined Interbrand’s annual rankings of the Top 100 Global Brands to find how the brand’s ranking related to media hits. The study found that 48 percent of the computing industry’s brand value was explained by media prominence, 16 times that of the personal care industry.
About a year ago, when I was shopping for a new laptop I researched the latest news from Apple, Dell and other leading computer makers. I poured over articles and reviews about each brand and model. Ultimately, I selected my notebook computer largely due to the positive reviews from other customers and technology experts.
I’ve also found social networking has a large impact on purchasing decisions. Just recently, I saw a poll on a friend’s Facebook page inquiring about the differences between an iPhone and Blackberry. The majority of people were in favor of the iPhone because of the “cool” applications. I’m not sure if he decided to go with the iPhone, but the comments clearly identified Apple’s brand value and illustrate how consumers are using social networking sites to gain information about products and services.
Have you based your latest tech gadget purchase on media hits and blog buzz? If so, we’d love to hear about it! Send an e-mail to [email protected] or leave a comment.