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Cover of 'The fall of advertising and the rise of pr'

The fall of advertising and the rise of PR

Al Ries, Laura Ries

Emergence of public relations

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Description

Marketing has evolved from focusing on advertising to prioritizing public relations (PR). Notable brands such as Starbucks, Wal-Mart, and Amazon.Com have gained prominence not through traditional advertising but through media-generated publicity.

This shift underscores PR's effectiveness in brand building, leveraging its credibility and the consumer's preference for media-endorsed narratives over direct advertisements. Consequently, in modern marketing strategies, PR should lead, supported by advertising to reinforce the positive brand image established through media coverage. This approach aligns with the view that PR, rather than advertising, is now central to creating and sustaining great brands.

Table of contents

01

Decline of advertising

Advertising's effectiveness in promoting products has significantly diminished compared to its past influence. Several factors contribute to this decline: consumers' growing skepticism towards advertising's credibility, the steep costs associated with individual advertisements, the overwhelming surge in the number of ads, and the broadening of advertising media. Consequently, the advertising sector has shifted its focus from sales generation to enhancing brand awareness through creative endeavors and securing industry accolades.

In the post-World War II era, advertising experienced a golden age, with major consumer goods companies like Campbell’s, Coca-Cola, Hershey’s, and Procter & Gamble leveraging it to build their brands. However, the landscape has evolved due to several critical changes. Today, consumers perceive advertisements as mere expressions of the advertisers' viewpoints, doubting the alignment of advertisers' motives with their interests. The bombardment of ads, with estimates suggesting an average person encounters over 5,000 advertising messages daily, has led to a scenario where ads blend into the background noise of daily life, often ignored by the majority unless a pressing need arises. The cost of advertising has skyrocketed, making it an expensive endeavor with questionable returns on investment. This has led to a perception of advertisements as biased or misleading. Despite massive advertising budgets, companies like General Motors have seen a decline in market share, indicating that a hefty advertising budget does not guarantee marketing success.

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02

Pr's ascension

In today's fast-paced world, where time is a precious commodity, the most effective way to establish a brand is through public relations rather than traditional advertising. The most successful consumer brands that have emerged recently have all leveraged PR to build their presence. This is largely because consumers, pressed for time, prefer to rely on the opinions of others rather than conducting their own research. They turn to recommendations from their personal network or trust the opinions of media commentators. Public relations capitalizes on this by focusing on endorsements from third parties, which are highly valued for several reasons. They are time-saving, as they eliminate the need for consumers to evaluate every option themselves. They also reduce effort, sparing consumers the task of testing every product in the market. Most importantly, they are seen as highly credible because they offer external validation of a manufacturer's claims, often perceived as unbiased due to the lack of a hidden agenda.

Given these factors, advertising seems to play a secondary role in brand building. If a company can generate a buzz through media coverage, the need for advertising diminishes. A well-crafted PR strategy can accomplish this and more. Positive media stories and features can significantly help a brand establish itself as a leader in its category. When media outlets confirm a product's leadership, the brand earns the credentials it needs to differentiate itself from competitors. Being the first in a new category or having a distinctive and fitting name for the product can also greatly enhance a brand's visibility and appeal.

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03

Ad­ver­tis­ing's resurgence

In the ever-evolving landscape of brand development, the interplay between advertising and public relations (PR) is crucial. As a brand reaches the zenith of its publicity potential, it often finds that the novelty that once sparked conversations has diminished. At this juncture, the astute strategy is to deploy advertising not as a tool for innovation but as a means to sustain brand recognition. Such advertisements should not strive for creativity, which risks muddling the consumer's understanding, but rather should resonate with and reinforce the established notions and values of the brand. The essence of advertising at this stage is to bolster the message that consumers have already come to associate with the brand, rather than introducing them to something entirely new and unfamiliar.

Cultivating a brand that truly connects with consumers requires a blend of perseverance and resilience. Patience is essential because consumers typically take considerable time to transition from their current preferences to a new product. This is where PR shines, as it can incrementally build the brand's reputation through third-party endorsements. This process is slow and systematic, and the brand's key attributes often shift from the original proposal to what consumers demonstrate a preference for. On the other hand, resilience is necessary to keep the brand's focus sharp. The temptation to make a new brand appeal to everyone is strong, but successful brands are those that choose depth over breadth, focusing on excelling in specific areas rather than being mediocre in many.

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04

Advertising vs. Pr differences

Advertising is often seen as an intrusive force, barging into the consumer's consciousness, frequently through bold or unconventional tactics aimed at seizing their attention. In contrast, publicity is perceived as a service by the media, informing consumers about noteworthy new products or services, and operates in a more understated manner. While advertising hinges on the "big launch" with a massive, simultaneous push across various media channels, this approach has a downside: once the launch event concludes, consumer interest tends to dissipate. Publicity, on the other hand, offers the chance to cultivate interest over a longer span, potentially indefinitely, keeping consumers engaged as they anticipate the next development in an unfolding narrative.

Advertisers initiate campaigns with a bang, striving to achieve several goals: grabbing the average consumer's attention, raising awareness for a new brand, and imbuing the brand with favorable qualities. Publicity is more adept at these objectives because it allows for a gradual build-up, starting from niche trade publications and escalating to more prominent media outlets, eventually reaching a national audience. This incremental approach fosters sustainable, long-term momentum.

Advertisers abide by the adage that "a picture is worth a thousand words," using eye-catching visuals and supplementing them with text to bolster the imagery. However, this strategy overlooks the fact that people think in words, not pictures. Publicity articulates the brand's narrative in a compelling way, using images, if at all, to lend credibility to the verbal message. This verbal focus makes publicity more memorable, as consumers base their purchasing decisions on verbal comparisons rather than images from advertisements. PR ensures that the brand's message is firmly planted in the potential customer's mind.

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