New York, November 10, 2008 – The results of the 2008 PRWeek/Burson-Marsteller CEO Survey found that 29 percent of CEOs believe that social media tools can be an effective way to communicate with stakeholders while an equal proportion (29 percent) believes social media outreach is ineffective. The survey also found that CEOs believe social media could be much more useful for building corporate reputation than for driving sales. The survey was conducted jointly by leading PR publication, PRWeek, and Burson-Marsteller, a leading global public relations firm.
The CEO Survey reveals that while 42 percent of CEOs personally participate in social media outlets, just 18 percent of CEOs have used social media to engage their company’s stakeholders. These CEOs do not use social media outlets, such as Facebook, MySpace and YouTube, to communicate with key stakeholders primarily because these chief executives believe social media is not a “relevant” channel to reach stakeholders (45 percent).
“CEOs should understand that many of their stakeholders are active users of social media and that it can be an extremely effective means for communicating a message,” said Mark J. Penn, Burson-Marsteller’s President & CEO. “I would argue that companies that are not engaging in social media are taking a bigger risk than the companies that are.”
While not all CEOs are convinced that social media can be a business communications tool, many agree that the Word of Mouth (WOM) conversations that are often sustained by social media can have a significant influence on their business. CEOs believe that WOM has the fastest growing impact on a business’ overall reputation, with 60 percent reporting its influence has increased in the past three years. In fact, CEOs say WOM is the second most influential medium overall (42 percent), after The Wall Street Journal (51 percent).
Assessing PR Effectiveness in 2009
Thirty-four percent of CEOs surveyed are satisfied with the ROI of their company’s public relations activities, but 49 percent are just “fairly satisfied” and 17 percent are not satisfied at all. During 2009, 63 percent expect to be more concerned about the ROI of their PR, and 36 percent will be equally as concerned as they have been in the past.
The survey also found that only 26 percent of companies “usually” or “always” invest in market research for their public relations activities as compared with 36 percent who invest in research for sales and 34 percent who invest in research for advertising. CEOs also measure the effectiveness of PR less than they do for other marketing activities (56 percent for PR vs. 63 percent for advertising and 66 percent for sales).
“Research should be the first step and the last step for all public relations initiatives,” said Penn. “This is the only way to prove the ROI of a communications program.”
Other findings include:
- Crisis Communications: Seventy-one percent of CEOs agree that a company’s website is the most effective means of communicating with customers and constituents during a crisis.
- PR Digital Spend: Sixty-seven percent of CEOs said they will increase their spending on digital marketing in 2009.
- CSR: CEOs engage in Corporate Social Responsibility (CSR) in a number of ways, such as promoting fair treatment of employees (54 percent) and reducing environmental impact (49 percent).
About the PRWeek/Burson-Marsteller CEO Survey
The PRWeek/Burson-Marsteller CEO Survey was conducted by PRWeek and Millward Brown using the ERI panel. E-mail notification was sent to approximately 53,180 corporate professionals and a total of 200 CEOs (100 CEOs who have one or more employees at the company who are responsible and/or take on full responsibility of all PR activities and 100 CEOs that work with an external PR consultant or firm) completed the survey online between September 24 and September 29, 2008. The results are statistically tested at a confidence level of 90%. Results aren't weighted.
About PRWeekLaunched in November 1998,
PRWeek was Haymarket's first weekly title in the US. Over the years,
PRWeek has established itself as a vital part of the PR and communications industries in the US, providing timely news, reviews, profiles, techniques, and ground-breaking research for practitioners. This research includes annual salary, CEO, and corporate surveys, as well as key industry sector rankings and regional forums. The magazine also launched the
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About Burson-Marsteller Burson-Marsteller (
www.burson-marsteller.com), established in 1953, is a leading global public relations and communications firm. It provides clients with strategic thinking and program execution across a full range of public relations, public affairs, advertising and web-related services. The firm’s seamless worldwide network consists of 71 wholly-owned offices and 58 affiliate offices, together operating in 83 countries across six continents. Burson-Marsteller is a part of Young & Rubicam Brands, a subsidiary of WPP (NASDQ: WPPGY), one of the world’s leading communications services networks.