Digital/Online Marketing Communications Strategy

The ROI of Real-Time Marketing and Public Relations

By on November 1, 2010 in marketing and public relations with 0 Comments

Photo of dollar bills growing out of flower potsPsst, want a hot stock tip?

Invest in businesses that engage in real-time marketing and PR.

This list includes:

  • Companies that adopt emerging communications trends – these days this includes social media and web analytics
  • Companies that respond to media and customer concerns promptly and courteously
  • Companies that respond to inquiries from A-list bloggers ASAP

New research measures real-time response of Fortune 100 companies

FYI, I am not offering this advice simply because I work in the field of marketing communications. There’s genuine research to back this tip up, and it’s hot off the e-press.

You can read all about in Real Time: How Marketing and PR at Speed Drives Measurable Success.

It’s the latest e-book by David Meerman Scott, A-list blogger, popular speaker and best selling author of The New Rules of Marketing and PR: How to Use Social Media, Blogs, News Releases, Online Video, and Viral Marketing to Reach Buyers Directly, 2nd Edition.

In his new e-book, David recounts the results of research he conducted to measure the real-time marketing response of the top 100 U.S. corporations as ranked by Fortune magazine.

Ties that bind real-time response and stock market performance

David’s research method was simple: He sent an email to the media relations departments of each Fortune 100 company asking the following question:

“In the last year or two, has the structure of your corporate communications team and/or communications processes changed to embrace the real-time digital era? If so, how?”

David wanted to find out:

  • How easy is it to contact each company’s media relations department?
  • How long does it take each company to respond to his request?
  • What is the quality of the response?

The e-book explains what happened next. It’s entertaining stuff. I’ll let you read it for yourself, however, the upshot is, David determined that in a comparison of 2010 stock prices, on average, the publicly traded Fortune 100 companies that were the most highly engaged in real-time communications beat the S&P 500 stock index, while those that were asleep at the real-time wheel, on average, underperformed the index.

Here’s a bar graph from the e-book showing details of the data:

Graph showing how real-time marketing & PR affects corporate stock performance

Likewise, an analysis of 2010 stock prices shows, the majority of the publicly traded Fortune 100 companies that responded to David’s inquiry (again, those engaged in real-time communications) were up on the year stock-price-wise, while those who did not were down. Here’s how that stat divvied up:

Stock performance of companies that engage in real time marketing beat those that do not (chart)

The data clearly indicates there’s a measurable return on investment for companies that engage in real-time marketing and public relations. Those who are out of the real-time loop are, overall, losing ground in the marketplace.

Now granted, David has a vested interest in touting these results. He wants to spark interest in his brand new book, Real-Time Marketing and PR: How to Instantly Engage Your Market, Connect with Customers, and Create Products that Grow Your Business Now. Still, David does not have the power to manipulate a stock price to suit his own needs. The data is what it is.

It’s also further reinforcement of the public’s increasing use of the web, in particular the rising prominence of social media, as well as smartphones, which encourage a rapid response mindset for messaging.

And while surely lots of factors affect a company’s stock market success, real-time engagement looks to be a new item to add to the list.

Stay tuned for more on real-time marketing and public relations

There are, of course, a plenitude of benefits to be reaped from engaging in real-time. A company’s ability to act and react in a fast and flexible manner can have positive consequences for product development, customer service, branding, crises communications, sales and more.

Heads up, I’m currently reading the book Real-Time Marketing & PR, and will soon have more to say on this timely topic. Stay tuned.

– Deni Kasrel

What do YOU think of the relationship between real-time marketing and PR and corporate stock market performance? Do you have stories of your own to tell on this topic? Comments welcome?

Related posts

Interview with David Meerman Scott, Author of the New Rules of Marketing & PR

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About the Author

About the Author: Deni Kasrel is seasoned (slightly spicy) specialist in digital/online communications. .

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  1. Hi Deni

    Thanks so much for this real time post. You got this out very quickly after I released the ebook which shows you are on the ball. People should invest in you!! David

    • Deni Kasrel says:

      David,

      Thanks for the compliment, can I quote you on that?

      I wanted to get the post on your e-book out pronto. That leaves time open to read your new book, which will surely provide more fodder for this blog. Meanwhile, it’s no surprise to see you’re totally up to speed on real-time monitoring of your brand 😉

  2. Frank Strong says:

    Love the lead, Deni, but here’s the conundrum for the public investor: name a social media monitoring company which stock for sale? Most are private. KPR’s new fund is well, only for the very wealthy. To my knowledge, there’s only one! 😉

    • There are several (well one I know of) that are a tiny part of a larger public company.

      Dow Jones Insight is a social media monitoring tool but it is such a minuscule part of News Corp that you really can’t buy into that part of the business.

    • Frank Strong says:

      I understood the hook, Deni and it’s a worthwhile point. One of the things I’ve noticed is that financial analysts that cover public companies are on social networks — monitoring sentiment and reaching out to customers for reference checks. It’s definitely changing the world of IR.

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