New York Public Relations Firms Stand to Benefit from Financial Crisis

Council of Public Relations Firms’ White Paper sees greater value for public relations than advertising

The Obama Administration recently announced its recommendations for reforming the financial services industry in the wake of last year’s market meltdown – and public relations professionals in the financial industry took notice.  However, it remains to be seen whether the implementation of these reforms will help restore investor trust and confidence in the financial system in general, a system that spans the globe from New York to London to Beijing. 

Some of our major financial institutions a la Lehman Bros. have ceased to exist, while others have been forced into shotgun marriages such as Bank of America’s takeover of the iconic Merrill Lynch and JP Morgan Chase’s acquisition of the legendary Bear Stearns.  Clearly, the images and brands of our financial institutions have been tarnished along with the trust that consumers placed in them.  And, that’s where the kind of specialized public relations New York financial firms need comes in…

A recent white paper from the Council of Public Relations Firms entitled, “Creating Value:  Public Relations and the New Brand Strategy” notes “Winning companies are increasingly eschewing advertising and instead deploying social and conventional media/public relations in ways designed to enhance the perceived value they deliver to customers.” 

Public relations New York financial institutions are implementing in today’s environment also goes a long way in building trust, and this is absolutely critical as these companies seek to regain the confidence of the American public and burnish their brands given the recent debacles in our financial markets.  Those of us in the industry know that while advertising is bought, publicity – be it in the traditional or social media – is earned through the consistent dissemination of factual information by credible companies.  The Council’s white paper also states:  “…many believe its (advertising’s) constant, repetitive presence actually corrupts the brand experience and erodes value.”

At Makovsky + Company, whose expertise in public relations New York companies have relied upon for 30 years, our financial services practice has received an increasing number of inquiries from prospective clients over the recent past.  We are hearing from asset managers, insurance companies, brokerage firms – in short, virtually every type of participant in the financial services industry.  Almost universally, their management teams have come to the conclusion that public relations provides an efficient means of customer acquisition and building trust as well brand awareness.

We are not advocating that companies give up on advertising completely as it is still one of the fastest and most efficient means of building brand awareness.   However, we are suggesting that managers at companies in all industries examine their public relations activities and ask themselves:  Do our customers trust us?  Do they believe in our brand promise?  Are we reaching the right people?  Are the right messages resonating?   How are we gauging success? Are we still counting media clips (or worse yet, utilizing the ad equivalency yardsticks)?  Are we overlooking opportunities in social media?  An honest assessment of a company’s public relations effort may lead to development of new strategies, an enhanced standing for a brand or pave the way for a restoration of trust – for the financial institutions of New York and all over the world.