PR spending by N.J. companies likely to rise this year, industry survey finds

The public relations industry could get a boost in 2015, if a new survey is any indication, with nearly half of New Jersey’s C-suite executives planning to increase their companies’ PR spending this year.The “Business Case for PR” survey, conducted by Wakefield Research in conjunction with the Public Relations Society of America New Jersey Chapter, found that 43 percent of C-level execs expect higher PR spending, while only 9 percent expect lower PR budgets.

“It’s encouraging that executives are willing to invest in public relations and recognize the value of reputation management,” Cecilia Coakley, director at large for PRSA NJ and senior vice president of corporate communications for MWW, said in a prepared statement. “But it is equally important for executives to understand the approach to reputation building. The trade has developed into a skillful art that requires a total stakeholder approach, taking into consideration myriad external market forces that impact a brand.”

On the bright side for the industry, 74 percent of the executive anticipating an increase in spending said they are seeing greater value in public relations. On the other hand, 59 percent — nearly six in 10 — of the executives surveyed admitted to not fully understanding the role and capabilities of PR.

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“Our survey shows that CEOs ‘don’t know what they don’t know,’” Nathan Richter, partner at Wakefield Research and lead pollster for the study, said in a statement. “Good reputations don’t just appear out of thin air. A more well-defined articulation of how PR can benefit their companies is a must, but executives also need to get involved.”

The executives surveyed were asked to prioritize their top three objectives for PR as part of the survey, and “reputation building” and “increasing brand awareness” rose to the top, chosen by 85 percent and 82 percent of executives, respectively. On the other hand, “crisis management” and “executive positioning” were much lower priorities, with 12 percent and 18 percent, respectively.

Further, only 44 percent of executives surveyed said they were “very involved” in their companies’ PR goals, while 75 percent said they spent less than half an hour a week on PR strategy.

“Our findings indicate that executives spend too little time ensuring their PR programs are designed correctly and reach the right stakeholders at the right time,” Richter said.

Finally, the survey revealed one crucial tip for public relations workers: Make goals and strategies clear to the bosses. While 71 percent of those surveyed said they do not feel their PR partners have articulated such goals and strategies “very well,” 64 percent said they would support increased PR spending if they were more clearly defined.

“Further educating executives inside an organization is not always as simple as a single conversation,” Coakley said. “But … having a CEO who understands and supports our work is worth the extra effort.”

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