Wolf Tracking

Increasingly, the question on most minds is not if a recession is coming but when. Everyday we are confronted with shrill headlines predicting the worst for the economy. So why, as a marketer and public relations professional, am I not quaking in my shoes?

The answer is surprisingly simple: unlike other marketing categories, this downturn should be a boom for public relations. Even in recessionary times, consumers still spend dollars albeit in a more conservative manner. As the dollar becomes more precious, consumers grow increasingly skeptical of traditional advertising messages and are relying on recommendations from fellow consumers.

Companies and their brands must adapt to this shift away from traditional media to succeed. Word of mouth is king. The mass-market economy has been replaced by a “customer economy,” which calls for customer-to-customer communications built on trust. Users are embracing this form of engagement as evidenced by their activities online. According to the Pew Internet & American Life Project Surveys, 27% of Americans share files from their own computers with others online, 30% rate a product, service or person using an online rating system, 34% use the Internet to display photos and 11% use online social or professional networking sites like Facebook or LinkedIn. Traditional media services have revealed their flaws as they struggle to not only connect but remain relevant to consumers.

Public relations firms are best positioned to strategically drive branding. Leadership needs to be taken by firms that understand the universe of communications – across segments and various means of communication – and not solely a buyer-seller directive. Traditional advertising agencies will still be needed but on a smaller-scale basis. In fact, marketers have less confidence in advertising agencies and will turn to other for effective branding. More than three out of four corporate advertisers – 78% to be exact – said they have less confidence today in the effectiveness of TV advertising than they did two years ago, according to a survey released at the Association of National Advertisers TV Ad Forum (March 2006).

In 2006, Nike spent just 33 percent of its $678 million US advertising budget on ads with television networks and other traditional media companies — down from 55 percent 10 years ago, according to Advertising Age. “We’re not in the business of keeping the media companies alive. We’re in the business of connecting with consumers,” said Trevor Edwards, Nike’s corporate vice president for global and category management in an interview with The New York Times.

Today’s consumer is far more sophisticated and even more skeptical of traditional advertising messages. Public relations agencies are well positioned to lead brand strategy in today’s fragmented media environment because they can break through this wall of skepticism. PR has been delivering third credibility since its inception and has taken the lead in applying that knowledge to help brands navigate today’s hyper-syndicated Web environment in order to build lasting and meaningful connections with their core audiences. PR is adept in understanding how to communicate with all types of constituents utilizing alternative channels for building brand image, connecting with audiences effectively, delivering a demonstrable return on investment and driving sales.