Why is public relations not usually paid?
How public relations firms can help your company Show
A client asked me a couple months ago (after working with his firm for six months): “What is it that you do, anyway?” I thought that funny as heck. This man is the president of a very successful and growing company; he’s strategic and smart and his work ethic is like no other. Plus, he had hired our firm to do public relations and, obviously at some point, he realized that he did not understand what we do every day. Public relations (PR) firms create a favorable public presence between companies and their audiences. We tell companies’ stories in a way that gives their customers a true understanding of the company’s culture and mission and how that company benefits the customer. The goal of PR firms is to shine a favorable and accurate light on companies — what they are about, how they are different and why they are a needed asset. These efforts can enhance a company’s business-to-business or business-to-consumer relationships. The idea is that: One, no one is going to know about your app, your product, your services or your reputation if someone doesn’t tell them; and two, when you’re succeeding, you deserve to have your story put in front of your most desired audiences. However, public relations is not advertising. The main difference is that advertising is paid-for advertisement, while public relations is favorable and earned attention. Public relations can manifest in the form of:
This Forbes Magazine chart clearly states the differences: Public relations can also offer additional services to companies and their employees to ensure their public-facing presence suits the brand. This can include media training for certain key employees to feel comfortable in front of a TV camera, a radio microphone or a reporter. Or, perhaps you face a public crisis and you want your customers and the public to know you are responsible, reactionary and caring. PR firms can help with all of this. Often, companies are competing for market share against competing companies that can easily spend $100,000 on advertising. However, these expensive and broad-based advertising campaigns are often out-of-reach for small- to medium-sized companies. Public relations, on the other hand, is typically far less expensive. Most public relations firms work against a monthly retainer that is a small fraction of what an ad (for the same TV time or print space) costs. Other PR firms get paid by the project. Plus, because public relations is more editorial in nature, it can bring a higher level of credibility than paid-for advertising in the eyes of a consumer. Being included in a story about avoiding highway construction accidents — if you are a construction firm that builds highways — gives you a perceived-leadership role. The guiding principle of a great public relations campaign, whether a modest one for a mom-and-pop shop or a far-reaching one for a Fortune 500 company, is the same: Take a company with a good story and make sure their desired audiences know about it. Public relations is the fun of telling someone else’s great story — and watching that company thrive even more. What Is Public Relations (PR)?Public relations (PR) is the set of techniques and strategies related to managing how information about an individual or company is disseminated to the public, and especially the media. Its primary goals are to disseminate important company news or events, maintain a brand image, and put a positive spin on negative events to minimize their fallout. PR may occur in the form of a company press release, news conference, interviews with journalists, social media posting, or other venues. Every individual or entity operating in the public eye faces the spread of information about them or their practices to the public. While public relations is an industry unto itself, any attempt to portray oneself in a certain way to others can be considered a form of public relations. Key Takeaways
Understanding Public Relations (PR)Although not inherent in the definition, PR is often thought of as "spin," with the goal being to present the person, company, or brand in the best light possible. PR differs from advertising in that PR attempts to represent a person or brand's image in ways that will appear organic, such as generating good press from independent sources and recommending business decisions that will incur public support. Loosely defined until the mid-twentieth century, PR is one of the fastest-growing industries in the United States. PR is essential to any company's success, especially when shares in the company are publicly traded and the value of a share depends on the public's confidence in a company or brand. In addition to handling media requests, information queries, and shareholder concerns, PR personnel are frequently responsible for crafting and maintaining the corporation's image. Occasionally, PR professionals engage in negative PR or willful attempts to discredit a rival brand or company, although such practices are not in keeping with the industry's code of ethics. Types of Public RelationsPublic relations is often divided into different agencies or departments. Each department is specifically suited to handle a specific aspect below:
Many public companies have a separate investor relations (IR) department for dealing with communications to shareholders and analysts. Public Relations vs. Other DepartmentsPublic relations may overlap or be confused with other similar departments. Here's an overview how PR may or may not relate to marketing, advertising, or communications. Public Relations vs. MarketingMarketing is sometimes more squarely focused on driving sales, promoting products or services, and ensuring financial success. Meanwhile, public relations is sometimes more focused on managing the reputation of a company or brand. Both departments may embark on very similar types of activities. For instance, both may interact with customers to garner feedback. From a more direct marketing lens, this information is used to better understand sales trends, product demands, and ways to generate more sales. From a more direct public relations lens, this information is used to understand customer satisfaction, ensure customers are happy, and make sure any dissatisfaction is managed quickly. Public Relations vs. AdvertisingAdvertising is the act of garnering public attention, often through the use of various types of media. A company may want to advertise to promote a product, announce expansion into a new market for a growth company, or reveal pricing changes. While advertising is the intentional act of trying to be in the spotlight, public relations is a more strategic and thoughtful approach about how a company should be interacting with internal and external stakeholders. Sometimes, it may be in the company's best interest in "lay low" and strengthen its relationship with the public by not being front and center. Public Relations vs. CommunicationsPublic relations and communications are heavily intertwined. Both involve portraying information outwardly in hopes of creating a brand, image, or relationship that fosters value. Communications may be a separate department within a company solely responsible for written or verbal comments issued internally or externally. One potential difference between public relations and communications is the exchange of information. Sometimes, public relations is a one-way channel that imposes information in an attempt to have a more favorable public image. Communications may be more rooted in the two-way functionality of receiving feedback and making changes based on information collected. In general, most companies will see overlap between public relations and communications. There's many titles and roles an individual working in public relation can hold. As of December 2021, individuals working as a publicist in the United States reported average total compensation of $73,164. Working in Public RelationsA career in public relations has no defined career path. An individual can obtain a degree in a number of different fields such as public relations, communications, marketing, journalism, broadcasting, or political science. Professionals in PR must have soft skills including strong written and oral communication skills, the ability to solve problems, and the ability to think critically and creatively. A career in public relations can take many different turns. Some aspects of public relations emphasize digital media; potential careers include content creators, social media managers, or digital artists. Individuals can specialize in an industry (i.e. finance) to emphasize working between a company and its investors. Individuals interested in working for nonprofit organizations may find the branch of fundraising overlaps many aspects of public relations. Public Relations in PracticePR also involves managing a company's reputation in the eyes of its customers. In a 2012 PR crisis, restaurant chain Chick-fil-A was forced to issue emergency statements with respect to its stance on same-sex marriage after a Chick-fil-A executive publicly came out against marriage equality. The statement stressed the company's "biblically-based principles" and its belief in treating "every person with honor, dignity, and respect." It was an example of how companies must exercise good PR. Most major companies have a PR department or utilize the services of an outside firm. A company often has multiple publics to impress. Internally, a company will want to present itself as competently operated to its investors and biggest shareholders, which can involve arranging product demonstrations or other events directed towards shareholders. In response to the 2010 oil spill off the Gulf of Mexico, BP issued a public statement outlining its course of action. Some felt the response missed its mark, a stark reminder of how public relations may sometimes make matters worse. Externally, a company that sells a good or service directly to consumers will want to present a public image that will encourage genuine, lasting brand support, which extends beyond the somewhat knowingly specious goals of advertising. This can involve reassuring customers during a crisis, such as when Target (TGT) offered an $18.5 million settlement to its customers following a 2013 credit card hack in an attempt to restore good faith or the promotion of a lifestyle that would make the company's product or service attractive. The company also generates PR to attract investors. In this respect, good PR is especially important for startups or rapidly expanding companies. What Is the Primary Role of Public Relations?Public relations often boils down maintaining the image of a company, individual, or brand. Public relations creates media, connects with external media, crafts public opinion, and ensures customers have a positive disposition towards the company's brand. What Skills Do You Need for PR?Public relation specialists often have strong communication skills. Their role is to absorb information, process how it may impact a company's image, and how to externally communicate to shift this image. Public relation specialists often forge relationships with many different types of people including key customers, government officials, and external media. Why Is Public Relations Important?Customers make decisions for a number of reasons. One of those reasons is the relationship they feel they have with a company. If a company has a negative image or is ensnarled in a controversial public issue, a customer may no longer feel as connected with the brand, image, and product. Public relations often manages this brand and ensures customers, employees, investors, and other external parties have a positive disposition to continue involvement with the company. Who Uses Public Relations?Public relations is useful for any party that wants to have a positive public imagine. Most often, corporations and publicly traded companies will embark on public relations. A company may have a different public relations team or public relations strategy for specific brands or products. Also, individuals such as celebrities or high net worth individuals may have private public relation teams. These teams are used to maintain a positive public image as well as handle media requests. Is public relations paid for?Public Relations Specialists made a median salary of $62,810 in 2020. The best-paid 25 percent made $85,380 that year, while the lowest-paid 25 percent made $46,630.
Is public relations unpaid?Unlike advertisers, who tell stories through paid methods, PR professionals tell their stories through unpaid or earned media.
Is PR unpaid advertising?As an unpaid method of promotion, public relations is uniquely positioned among its counterparts in the marketing communications mix which require direct expenditures to reach audiences.
What is a big disadvantage of public relations?The biggest disadvantages of public relations relate to measuring the success of your efforts. If your strategy is not well-executed, you run the risk of getting no response from your target audience whatsoever.
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