The spread of COVID-19 has jeopardized economies across the globe. As a result, there are many industries that are being hit particularly hard. When your company starts to receive significantly less revenue, it forces you to try and save money in other areas.
Unfortunately, one of the first things that usually gets axed is the PR budget. This is despite the fact that experts agree decreasing the PR budget for your company is a huge mistake during times like this. Here are some of the reasons why your PR budget should be a priority during this unprecedented time.
It’ll be Harder to Get New Clients
When a situation like the pandemic launches your company into a financial crisis, there is only one surefire thing that will get you out of it, which is increasing revenue. But this is only possible if you receive more business from new clients, which requires PR efforts.
If you are not getting your company’s name out there in a positive light, then it is very unlikely that any new client is going to choose you over your competitors who are remaining in the news. This means you will be preventing your business from growing its revenue stream every time you reduce the PR budget.
While remaining at your current PR budget or increasing it will result in taking a larger financial hit at first, it will begin to pay for itself the longer you maintain this strategy and begin to see your business volume increase again.
Cause You to Lose Market Share
Just because some companies within your industry are going to be cutting their PR budget, this does not mean that everyone will be. This is bad news for any business that does end up making cuts because it puts them at a significant disadvantage.
As your competitors continue to put out new content and make efforts to increase their positive brand exposure, your company’s name will miss out on opportunities to garner awareness. This means that your competitors who have held their PR budget steady will begin to take over the market while you struggle to maintain your current market share.
This is exactly what happened 30 years ago during a recession that hit the fast-food industry. McDonald’s ended up reducing their PR and marketing budget while their competitors Pizza Hut and Taco Bell did not. This resulted in McDonald’s losing 28 percent of its sales while Pizza Hut grew by over 60 percent and Taco Bell’s business increased by 40 percent. Don’t repeat history by decreasing your PR budget and suffering the consequences as a result.
These reasons perfectly demonstrate why decreasing your PR budget could hurt your business post-pandemic, and stifle growth for your business once the economy is up and running. Find out how you can enhance your PR efforts during these tough times by contacting our team of professionals at GYC Vegas today.