If you are anything like me, our roller coaster economy is really on your mind right now. For we all know, when things begin to go downhill, the domino effect comes into play--consumers cut back on spending...brands start making difficult choices-- cut the budget for advertising or cut the budget for PR. For those of us in the luxury PR market there is concern as luxury sales dropped 6.5% in 2007. With all media outlets crying, “Recession!” what does that mean for the fate of PR?
In the last few weeks I’ve had this discussion over and over and assuming I would hear fears that PR will face major cut backs, I instead heard the opposite—brands will need us now more than ever. Advertising alone won’t prompt a consumer to purchase a product; it will be through relationships developed with the consumer through online communities, social media, viral PR and trusted editors that will encourage brand awareness and perceived value. There’s no argument that consumers are becoming savvier to the spin of an advertisement. While it may foster interest in a given product, it further purports inquires about it through friends (word of mouth) and heading online to find reviews/opinions about said product. This is where our relationship with the public comes into play.
I do think brands will be more reserved in choosing a PR firm, maybe instead opting for a lesser known firm with lower fees than the more experienced powerhouses that typically charge more. We’ll see more shopping around than we have before, prompting us all to become more creative with our abilities. It’ll be interesting and nail biting, but I suspect-- we will survive.
How do you think public relations will fare in a recession?
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