I was excited by the header of an article in PR Week last week, “The Battle Between PR and Ad Agencies Heats Up!”, thinking I’d be reading about the social media land grab taking place right now. Not so… the article was a rant about Ad agencies stealing business away from independent PR through the first-tier PR firms they bought over the years. Next article? How PR still struggles to get on CMO’s radar. Really??!?
I read this and wondered in what world do people still whine about an old battle, already decided a decade ago (advertisers won that one btw)? Besides, going after PR firms owned by WPP, Omnicom, Publicis, or IPG to defend your PR dollars is not just the wrong battle to fight but, whether owned by advertisers or not, all PR firms are on the same side of the media war.
Many of TRAACKR’s clients are PR and I can tell you that none of them complain about getting their lunch money stolen by advertising. In fact, it’s quite the opposite: instead of fighting off advertisers to keep their budgets, for the first time PR firms can now compete for advertising dollars!

SOCIAL IS WHERE THE BATTLE IS BEING FOUGHT
For generations, mass media has governed marketing. TV alone would represent over 80% of an average marketing budget. Ad agencies have made a living of charging brands obscene amounts of money for creative and media buy. A senior exec at one of the top ad agencies told me just a few months ago, “when I meet with a CMO for an hour, do you think I sell them a $15M ad campaign or $200k in social media?” This is still today’s reality in an ad agency. The truth is that the economic model of an ad agency is based on big dollars and social media is small dollars – ad agencies haven’t figured out how to earn money on it, and this is their Achilles’ heel.
For better or for worse, PR firms have experience working with small budgets. They have also cultivated the art of the two-way communication with their target required to perform on social media. In many ways, social media is very much an extension of PR’s existing business model that only requires tweaks to succeed, not a business overhaul. This is the edge PR has over advertising in the land grab for social media ownership and budgets.
SOCIAL IS ELEVATING PR TO CMO-LEVEL
As much as advertising agencies have a basic economic problem dealing with social media (not enough money going around to make the effort worthwhile), brands don’t. Brands owe it to their shareholders to create the most value for each dollar invested. If Social yields better results than other media, it becomes a priority. The ‘warm and fuzzy’ feeling you get for having a Facebook page with tens of thousands of ‘likes’ only gets you thus far in spending real dollars though… but social media is changing fast and as social media communication develops and more companies gather metrics, we are discovering some fascinating facts:
- Well-targeted and executed social media campaigns can yield much higher results and ROI than ad buys. In influencer marketing (our field of work and study), we found that less than 3% of the participants in an online conversation yield over 90% of the results (depending on the campaign, measured as reach, sales leads, viral distribution of a message). Considering only their reach, these same 3% even beat TV programming.
- The social media component of marketing campaigns is growing. According to Forrester Research, the US market for social media communication doubled last year to reach $1.5B and will keep expanding at the same pace. As the practice of social becomes less of an experiment and more of a component of success for marketing, brands can focus on result-oriented initiatives, measure performance and tune their practice of social media.
- Brands look for expertise in social media as a key component of selecting a marketing partner. Though anecdotal, I can’t tell you the number of brands we met with who decided to take social media away from their main AOR and gave it to PR or a ‘next gen’ marketing firm and have started transferring budgets from advertising as they see results materialize.
CMOs are now starting to pay attention to social, and as a result to PR. The simple equation each CMO constantly runs in their head (sales per marketing $ invested), has gotten premiere brands like P&G or Pepsico to multiply their investment in social while shrinking their involvement with traditional advertising. External factors, like the economic crisis we’re going through have also contributed to accelerating this transition.
If budgets for social media communication are exploding, success stories from social campaigns keep coming out and advertising agencies are still chasing their tail in social, why on earth doesn’t PR own social by now?
SOCIAL RELATIONS IS THE NEW FRONTIER
There are really two main reasons why Social is still up for grabs. One legitimate, one not.
Historically, PR firms haven’t been early technology adopters (I see some of our clients cringing here: of course there are exceptions!) and the move towards social media has required PR to embrace new technologies, use new tools in order to perform the work, and learn how to navigate an ocean of data. Mainstream PR is slowly going over the technology hump, but it’s taken a while. Early technology adopters in PR have long passed that point and can maneuver technology and social media tools easier than I ride my bike.
The second reason why PR has yet to ‘kill it’ as an industry in Social very much relates to the content of the PRWeek article I was quoting at the beginning of this post. I’ll call it the ‘post-traumatic mass media era disorder’ or PTMMED
Much of PR still feels like the step child of marketing and fears the mighty advertisers with their lavish lifestyle.
No more! Our PR clients, all early adopters of technology, paving the way to what the PR industry should become, are proving to their peers that through Social they get access, they get budgets, they get more work than they can handle, and they are not afraid to tell advertisers to bring it on!
Interestingly, the fact that mainstream PR has yet to fully embrace their social practice has created a void on the market and a new breed of agencies have emerged as a result to fill it with some success. What innovative PR firms and these ‘next gen’ marketing firms have in common is that they have both understood that the new frontier for communication is Social Relationships. Call it SR, call it PR 2.0, these firms are defining a new industry where much of the money spent on social media is pouring in. My advice: you want to be on that train before it leaves the station…