What does a PR agency do?

PR can help you increase your traffic and sales, and allow you to enter new markets. A professional PR agency helps you avoid common pitfalls when building your company's image, provides a clear path through the maze of conflicting PR advice with a conscious strategy, and builds a reliable, stable reputation for your company—even preventing and avoiding potential crises that could ruin your image. So, what exactly is PR, what does a PR agency do, and what practical details should you consider regarding a partnership?

What exactly is PR, and why is it dangerous to neglect it?

PR, or Public Relations, is a field of communication that deals with establishing and maintaining relationships between organizations and the public. The goal of PR is to create a positive image of the organization in the eyes of the public, thereby helping the organization achieve its set goals.

When should you pay special attention to PR?

It would be a mistake to think that only large companies need PR. In the life of an average SME, there are situations where it is particularly important that the management of the company's reputation and relationships is in expert hands.

#m1-p#Here are a few cases where PR can greatly help you achieve your business goals:##

If you are launching a new product or service , PR can help with its proper market introduction and reaching your target audience.
If you are entering a new market, PR can help you connect with the relevant audience and build trust.
If you face a crisis, PR can help manage the situation and minimize damage, but in some cases, it can even help with prevention, so that a crisis situation does not even arise.

What results can be achieved with PR activities?

You can improve your brand's reputationPR helps convey positive messages to your audience, thereby strengthening your brand's credibility and reliability.
Increase your visibility: your brand can appear on various media platforms, which boosts awareness and makes it accessible to new customers.
PR helps build new relationships with journalists and other media professionals, who can later become key players in your company's communication strategy.
If a company faces negative reviews or press coverage, PR strategies help manage the crisisand restore the brand's reputation.
Although PR is not a direct sales tool, increased awareness and a positive reputation can, in the long run, boost sales opportunities.

PR is therefore a powerful and essential tool that you can use to increase your brand awareness, brand value, trust in your company, reach your target audience, and improve many other important business factors.

The Volkswagen Dieselgate scandal – or what happens when we handle our company's PR carelessly?

You might be familiar with the 2015 Volkswagen emissions scandal, or as some call it, Dieselgate, which has now become a textbook example of poor PR practices.

In 2015, it was revealed that the German car manufacturer had installed software in its vehicles that cheated on environmental tests: it was configured so that the engines would only meet environmental standards during testing, but would revert to "normal" operation during everyday use, resulting in significantly higher emissions. The scandal grew so large that Volkswagen was fined in several countries and had to recall millions of cars. Needless to say, Dieselgate severely damaged Volkswagen's reputation, and it took years for them to somewhat restore the trust consumers had in them.

#m1-p#And where did Volkswagen's PR team go wrong, further exacerbating the situation?##

They denied the problem, even after the EPA made the evidence public. This move immediately alienated consumers, who from that point on began to question VW's reliability in other areas as well.
They claimed that only a few thousand cars were affected, when in reality, they had to recall more than 11 million vehicles. This move created a false impression of the scale of the problem and further damaged the company's reputation.
They tried to drag out the investigation and were unwilling to fully cooperate with the authorities. This move showed that the company did not respect the authorities and was not taking the problem seriously.

This case clearly illustrates that PR plays a crucial role in the life of a company. Well-managed PR can help companies protect their reputation and increase consumer trust—but PR activities in the wrong hands can even ruin a company.

#m1-p#In summary, what can happen if you neglect your company's PR or entrust it to an unqualified professional? ##

You will fall behind your competitors. Companies that invest in PR stand out from the competition because they are more visible and trustworthy to their target audience.
You will lose customers and partners. If your target audience doesn't know your company, they won't buy from you or collaborate with you.
You will cause hard-to-repair damage to your company's reputation. If negative or controversial information appears about your company, it can damage its reputation and public trust.

What tools does PR use to achieve its goals?

PR works with a wide range of communication tools and techniques. When selecting these, PR professionals consider the target audience, the objectives, and the available resources, combining the tools to achieve the greatest possible impact.

We have divided PR tools into three main groups; let's take a look at them!

Media Relations

PR professionals reach the general public by maintaining relationships with the media. Media relations tools include press conferences, press releases, background briefings, and personal contacts with the media.

For example, when launching a new product, PR professionals hold a press conference to present the product and answer questions from journalists. Press releases are sent to the media so they can report on the product.

Direct Communication

PR professionals can also communicate directly with the target audience. Direct communication tools include publishing materials, the social media management, as well as event planning.

A good example of this is an environmental organization creating publications that emphasize the importance of environmental protection and the company's stance, while using social media to maintain contact with supporters and keep them informed about the organization's activities.

Other tools

PR professionals can also use other tools to achieve their goals. Examples include sponsoring certain organizations, corporate social responsibility initiatives, or even influencer marketing, which do not fall under media relations but cannot be classified as direct communication either.

This could involve a company that supports young people sponsoring a youth organization, or providing donations to those in need as part of its corporate social responsibility efforts.

Developing a PR strategy: from KPIs to ROI

What KPIs should we set to measure PR activity?

There are numerous KPIs (Key Performance Indicators) available for measuring PR activity. The following 4 factors can be considered the most important and widely used:

1. Number of media appearances

What do we measure with it? The number of media appearances shows how many times the company, product, event, or other relevant information appeared in the media during a given period.
Why is it important? This KPI helps track how successful the efforts were in capturing media interest and to what extent the PR initiatives generated buzz.
How do we measure it? Based on reports provided by media monitoring tools, services, and platforms.

2. Reach

What do we measure with it? Reach shows how many unique users were exposed to the PR message or content.
Why is it important? Greater reach means the PR material has spread widely, increasing the visibility of the brand or message.
How do we measure it? Using social media analytics tools, web analytics platforms, and media monitoring services.

3. Sentiment analysis

What do we measure with it? The analysis of emotional responses triggered by content about the company, product, or service.
Why is it important? It helps assess how the audience reacts to PR messages: positively, negatively, or neutrally.
How do we measure it? Using specialized software and tools designed to analyze the emotional tone of online content.

4. Website traffic

What is it? The number of visits to the website and visitor behavior on the site.
Why is it important? Increasing website traffic can indicate that PR campaigns are boosting interest and audience engagement.
How do we measure it? With web analytics tools, such as Google Analytics.

Together, these KPIs provide a clear picture of the effectiveness of your PR activities and help identify opportunities for optimization.

How long does it take to see results from PR?

The time required for successful PR varies. Some campaigns can yield quick results, such as after a major media feature. However, long-term relationship building, brand development, and reputation management often take months or even years. Furthermore, unlike advertising, the success of PR is not always directly measurable.

PR results are often evaluated based on brand awareness, the number of media placements, or the effectiveness of crisis management.

Overall, as in many other areas of business, patience and time investment are essential for achieving results in PR.

How can we calculate whether the cost of PR activities is worth it?

Calculating the return on PR activities is not as straightforward as it is for paid online advertising , as PR results are often less direct and take effect over a longer period. However, you can estimate the return on investment (ROI) using the following steps:

1. Define the goals of your PR activities

Before calculating ROI, you must clarify what you want to achieve with your PR efforts (e.g., increasing brand awareness, launching a new product, crisis management, etc.).

2. Determine the initial costs

Calculate how much you spent on the PR campaign, including agency fees, media monitoring services, events, etc.

3. Measure the results of your PR activities

Collect data on the campaign's results. This may include the number of media placements, growth in website traffic, audience engagement, and other relevant metrics.

4. Evaluate the financial impact of the results

Try to estimate the financial impact the PR activity had on the company. For example, if the goal was to launch a new product, measure the increase in sales during the PR campaign period.

5. Calculate the ROI

When calculating PR ROI, you take the campaign's goals and (financial) results into account. This sounds simple, but if the campaign goal is not clearly identified, or if the results cannot be clearly linked to the campaign, calculating ROI becomes more difficult. If the goal of the PR campaign is, for example, to increase sales for a specific product, then the revenue comes from the increase in product sales, and this can be used as the basis for the ROI calculation. However, if the goal of the PR campaign is to increase brand awareness, it is less clear which factors to include or exclude from the ROI calculation: it could involve an increase in the number of product sales, an increase in average order value, and many other results, all of which could also stem from other marketing activities.

6. Consider non-financial benefits as well

PR activities offer numerous non-financial benefits, such as improving brand reputation and increasing audience trust. It is worth considering these alongside "black-and-white" financial returns.

It is important to note that calculating the return on PR activities involves many estimates, as not all results can be quantified in financial terms. Furthermore, PR has a longer-term impact, so the return period should be viewed over a longer timeframe than that of a traditional advertising campaign.

How can the results of PR activities be isolated from the impact of other marketing efforts?

Isolating the results of PR activities from other marketing efforts is a complex task, as their effects often overlap. Below are a few methods that can be used to attempt to isolate the impact of PR activities:

1. Media monitoring and analysis: We monitor the press and online platforms to see what PR articles, interviews, or other content have appeared regarding the company. We evaluate the number of appearances, their tone, and their reach. In addition, we also track responses and audience reactions.

2. Web analytics: Tools such as Google Analyticsallow for tracking the source of website visits. If we observe an increase in site traffic or the popularity of a specific page following a major PR event, it may be the result of PR activity.

3. Coupons and promotional codes: If we use special coupons or promotional codes in our PR activities, we can measure how many people redeemed these offers, allowing us to estimate the direct impact of the PR activity.

‍4. Research and surveys: We can conduct surveys among the target audience regarding changes in brand awareness, image, and other related factors. Additionally, we can ask customers or visitors where they heard about the company or the product.

5. A/B testing: This method is primarily used for digital campaigns, but under certain circumstances, it can also be applied to PR activities. We present two versions to two separate groups and measure the differences in their reactions.

6. PR-specific metrics: Unlike traditional marketing activities, PR activities have their own metrics, such as the quality and quantity of media appearances, newsletter open rates, or the number of event attendees.

7. Timing: Let's look at periods where we focus exclusively on PR activities without any other active marketing campaigns. While it is rare for a company to engage only in PR during a given period, when it does happen, it becomes easier to measure the effectiveness of those PR efforts.

However, it is important to note that while the methods mentioned above can help isolate the impact of PR activities, in real-world scenarios, the effects of various marketing activities often overlap. Because of this, it is frequently difficult to clearly identify the direct results of PR efforts.

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Should you handle PR in-house or outsource it?

Choosing between handling PR tasks in-house or outsourcing them depends on many factors, and both options have their pros and cons. Let's look at the key arguments for both sides!

In-house PR management

#m1-p#Pros:##

Deeper knowledge: Daily contact with the corporate culture, products, and business strategy allows the communications team to better understand and reflect the company's values.
Fast response time: An internal team can react more quickly to changing situations or unexpected events.
(Likely) lower cost: In some cases, it can be more cost-effective to maintain a stable, internal PR team than to pay an external agency.

#m1-p#Cons:##

Limited perspective on the company's position and opportunities: Internal teams may be prone to "blind spots" and may be less able to view the company from an external perspective.
Resource constraints: Internal teams may have limited resources and may not possess the highest level of expertise in every area.

Outsourcing PR tasks

#m1-p#Pros:##

Specific expertise and years of experience: A PR agency works with numerous clients and industries, providing diverse experience and expertise.
External perspective: Agencies can bring a fresh perspective, which can help a company better see its own strengths and weaknesses.
Extensive network: Agencies typically have an established network of contacts with journalists and other media figures.

#m1-p#Disadvantages:##

Higher costs: Engaging an agency can be more expensive initially. However, it is important to keep in mind that a PR-specialized agency with years of experience knows exactly what it is doing, so the budget spent on their work is by no means "money thrown away."
Slower response times: Agencies work with multiple clients, so they may not react as quickly as an in-house PR team that only has tasks related to that specific company.

Should you hire a PR agency or a freelance PR expert?

The choice between a PR agency and a freelance PR expert depends on the company's specific needs, size, and budget. Both have their own advantages and disadvantages.

PR agency

#m1-p#Advantages:##

Extensive expertise: An agency consists of numerous professionals, which ensures deeper knowledge and experience across various fields and industries.
Larger network: Agencies generally have an existing network of contacts that includes journalists, media partners, and other industry players.
Structured processes: Agencies typically have structured processes and tools in place for project management and campaign execution.

#m1-p#Cons:##

Cost: Agencies are generally more expensive than freelancers.
Less flexibility: Agencies are larger and can sometimes be less flexible when it comes to specific requests or changes.

#m1-p#When is it better to choose a PR agency?##

When the company needs a wide range of PR activities.
For larger, complex campaigns or projects.
When extensive industry connections and deeper expertise are required.
When the company does not have an in-house PR team and requires comprehensive services.

Freelance PR expert:

#m1-p#Pros:##

Cost-effectiveness: Freelancers generally work at more favorable rates than agencies.
More personalized service: Building a personal connection can be easier with a freelancer, which can lead to deeper collaboration and a more tailored strategy.
Flexibility: Freelancers often have more flexibility in their schedules and working methods.

#m1-p#Disadvantages:##

Limited capacity: One person can only take on a limited amount of work, which can cause capacity issues for larger projects.
Limited expertise: One person may not necessarily possess all the required skills or experience.

Ultimately, the choice depends on your company's unique needs, budget, and strategic goals. The most important thing is to be clear about the results you want to achieve for your company and choose the right PR partner accordingly.

When should you turn to a PR agency?

As shown above, it makes a significant difference who manages a company's PR. For many companies, it can be much more effective and cost-efficient in both the long and short term to work with an expert agency rather than maintaining an internal PR department.

Here are some typical cases and campaign types where the help of a PR agency can be particularly valuable!

1. Brand launch or repositioning

When a company enters the market with a new product or service, or wants to reposition an existing brand, a PR agency can help develop the messaging and communicate it effectively to the target audience.

2. Crisis communication:

In the event of negative news, scandals, or unexpected incidents, an experienced PR agency can respond quickly and effectively, minimizing negative consequences and restoring the company's reputation.

3. Event management:

For organizing and executing conferences, product launch events, and press events, PR experts know how to attract attention and achieve the desired media presence.

4. Media relations:

A good PR agency has deep-rooted connections with journalists, bloggers, and influencers, which it leverages to generate positive media presence for its clients.

5. Strategic consulting:

When a company lacks a clear vision on how to communicate with the outside world or how to shape its reputation, a PR agency can help define strategic directions.

6. Content creation:

Many PR agencies have in-house specialist teams or trusted subcontractors who provide support in content creation, whether it involves press releases, articles, blog posts, video production, or other PR materials. This allows you to manage everything under one contract, leading to much more efficient collaboration.

7. Public relations campaigns:

If a company's goal is to reach its target audience directly and build a positive relationship with them, a PR agency can assist in this process.

Beyond these cases, there are many other situations where it is worth turning to a PR expert. In every instance, it depends on the company's specific goals and situation as to which service is needed most.

What can a PR agency offer that an online marketing agency cannot?

A PR agency and an online marketing agency specialize in different areas, and while there is often overlap between them, there are significant differences in the services offered and the added value provided.

A PR agency builds the reputation and image of a business or brand. It possesses a deeper understanding of society and the media landscape. It knows what people like and dislike, and how to present a business in the most favorable light. Furthermore, it is capable of creating long-term communication plans that ensure the business's reputation remains stable.

An online marketing agency, on the other hand, has extensive knowledge of digital marketing. It knows how to target the audience on the right platforms and how to display advertisements and organic content as effectively as possible. It is also able to react quickly to changing market conditions and develop new strategies for the success of the business.

Online marketing often produces faster and much more accurately measurable results than a PR strategy—but the two areas also reinforce each other, and together they help businesses achieve their commercial goals.

How to choose a competent PR agency?

Selecting a PR agency is no small task, just like choosing any other service or partner. When selecting a competent PR agency, it is worth following these steps:

Clarify your own needs: Before approaching any agency, define exactly what PR services you need. Are you looking for events, media relations, digital PR, or other specific services?
Research: Start with online research. Read through agency websites, portfolios, and client success stories.
References and recommendations: Ask for recommendations from your business partners or industry contacts. First-hand experience is often the most valuable source of information.
Size and specialization: Decide whether you want a large, multinational agency or a smaller, specialized one. Both have their advantages. Larger agencies typically offer a wider range of services, while smaller agencies often provide more personalized solutions.
Meetings and interviews: Schedule meetings with the agencies you are considering. Prepare questions and ensure the agency understands your needs and is capable of meeting them.
Request a quote: Before making a decision, request quotes or proposals from several agencies. Price is an important factor, but do not base your decision solely on cost.
Communication style: Ensure that the agency's communication style aligns with your own. Effective communication is essential for a successful partnership.
Focus on measurement: Before signing a contract, define how the effectiveness of campaigns will be measured. The agency should have clear, measurable metrics to evaluate results.
References and case studies: Ask the agency for case studies and references. This will allow you to see the results they have achieved for other clients.
Prepare for a long-term partnership: View the agency as a long-term partner, not just a one-time service provider. PR work is often time-consuming, and the best results are achieved through long-term collaboration.
And finally: trust your gut! The best PR agency is the one that you and your team feel most comfortable with, and that shares the culture and values represented by your company.

What is the ideal contract duration for a PR agency? How long does it take to determine if working with a PR agency is worth it?

Choosing the duration of a contract with a PR agency is often a balancing act between long-term commitments and the expectation of short-term results. Evaluating the success of a PR campaign usually doesn't happen overnight, as brand building and cultivating media relationships take time.

For a specific event or product launch, it is worth signing a shorter, 3-6 month contract. This period allows for the evaluation of campaign results and provides an opportunity to assess the agency's work style and effectiveness. However, if you are planning a long-term PR strategy aimed at building your brand and maintaining a constant media presence, a contract of one year or longer may be justified. In this case, the agency will have sufficient time to gain an in-depth understanding of the company and develop a strategy that pays off in the long run.

We also strongly recommend that the contract includes a "trial" period, where after the initial 3-6 months , a comprehensive evaluation of the agency's work is conducted. At the end of this period, you will have a clearer picture of how effective the agency is and whether it meets the company's expectations.

Summary

It is important to note that PR results are not always measurable in direct sales or conversions. Increasing brand reputation, media presence, or fostering a favorable opinion among your target audience is a long-term investment, the return on which is only visible later. Therefore, if you decide you want to work with a PR agency or expert, it is important to determine the duration of the contract based on your company's specific needs and desired outcomes, and to jointly review the initial results of the PR campaigns.

#promobox-en#Would you like to support your PR activities with an outstanding, holistic online marketing strategy?##