SAN FRANCISCO: Companies that produce more complicated products such as computers or financial services stand to benefit from PR more than those in sectors like personal care, according to a new study from Text 100. The agency, and its research subsidiary Context Analytics, analyzed Interbrand's annual rankings of the Top 100 Global Brands to find how the brands' ranking corresponded to overall hits in the media, sifting through 20,000 global media sources from last year.
Overall, 27% of a brand's value was tied to how often the brand name appeared in the press, but that figure changed significantly depending on the industry. If a consumer was more likely to do research on a product before making a purchase, such as for a computer or car, prominence in the media – or PR – played a more significant role. For example, it found that 48% of the computing industry's brand value was explained by media prominence, 16 times that of the personal care industry. Media prominence accounted for 23% of brand value in the automotive industry, 20% for consumer electronics, 19% in financial services, and a mere 1% in the apparel industry.
“Where there is more risk involved for the buyer is where the link between real brand value and media prominence is the strongest,” said Nils Mork-Ulnes, VP of Context Analytics. “It really indicated that when it comes to a researcher or buyer, if there is a degree of risk involved in the purchase, they are much more likely to rely on impartial or third-party sources, whether word of mouth or media reports.”
Mork-Ulnes explained that the study also indicates that PR is “a very cost-effective way of building brand value and maintaining brand value” while marketing budgets are being cut.