Drawing on statistics presented in Interbrand’s top 100 Global Brands report, the research indicates that almost 30 per cent of a brand’s financial value is determined by the frequency with which it appears in the press.
It also claims that the effect of advertising investment can amount to just two per cent of the overall brand value of products with a high level of complexity, while public relations activities can make up 47 per cent of a brand’s value in industries more heavily researched by consumers prior to purchase.
It also claims that the effect of advertising investment can amount to just two per cent of the overall brand value of products with a high level of complexity, while public relations activities can make up 47 per cent of a brand’s value in industries more heavily researched by consumers prior to purchase.
“The more complex a product is, the more likely people are to trust earned, as opposed to paid, media,” said Rowan Benecke (pictured), Text’s regional consultancy director for Asia Pacific.
Benecke, along with the firm’s chief executive Aedhmar Haynes, acknowledged that the report was likely to face a degree of cynicism for highlighting the importance of public relations, having been compiled by a PR agency.
But he stated that the report’s use of the Pearson correlation coefficient added credibility to the findings, and noted that it signaled progress in the ability to calculate the impact of public relations on a brand’s share price.
The study assessed the statistical correlation between a brand’s media prominence in a composite of headline, lead paragraph and text citations in unpaid, independent media) and brand value across the world’s hundred most valuable brands.
Benecke added that the findings also reinforced the role of corporate communications in maintaining a strong brand.
“The study underscores the importance of managing and growing brand value with public relations,” Benecke said.
