Public Relations in the Digital Age and what it means for start-ups

Authored by Shipra Jena, Founder, PitchOne PR, a versatile sector agnostic PR consultancy that focuses on new and midsize businesses across India.

Public relations (PR) has long been a vague industry for start-up founders. Many people avoid PR because they are unfamiliar with the process. Unlike typical marketing and sales campaigns, the outcomes of PR are not quantifiable. Yet, PR has emerged as a thriving industry.

In fact, according to PRCAI, the PR industry generated over $16 billion in revenue globally in 2019-20. Similarly, India also witnessed a 12% growth, estimated to have touched roughly Rs 1,800 crore in 2020-21.

Another report from The Business Research Company suggests that the global PR industry will grow from $92.55 billion in 2021 to $102.80 billion in 2022 at an 11.1% CAGR. It expects the market to reach over $149.44 billion by 2026 at a CAGR of 9.8%. This highlights how quickly the public relations industry is advancing!

A variety of approaches to PR have emerged since its inception in the early 20th century. As society and technology have progressed, so has public relations. So, even if you are unprepared to deal with public relations, it is best for your brand to partner with one.

Another broad notion that can transform PR is the Metaverse. Regardless of how intricate it is, it will have an impact on how we communicate with one another. It also offers massive potential in terms of brand building.

Interestingly, public relations has been around since the advent of email, Web 1.0, and Web 2.0. The industry is now preparing for Web 3.0. By working with PR, start-ups may be able to take advantage of the next big communication predicament, just like they did with the rise of social media.

How Start-ups Benefit from Public Relations

The importance of public relations has never been greater, for both legacy brands and new-age start-ups, despite the industry’s ongoing evolution.

PR can assist start-ups with everything – from raising brand awareness to managing reputation crises. Simultaneously, they can also help your brand message stand out at a time when audiences worldwide are consuming a sea of instant content.

There are multiple examples of how a household brand has stood out online in a positive light with the help of public relations. For instance, Cred, a fintech firm, promoted the brand as a platform that helps people live a more systematic life and rewards them for it. It highlighted the brand as a company that focuses on people who pay their bills and taxes online.

Another example is Nykaa, one of India’s leading cosmetics players. In their early PR positioning, they sent a clear message to their audience: “We provide quality and authentic products at fair prices.” As a result, Nykaa could build a strong rapport with customers, which eventually helped the company build a loyal consumer base, attract new brands, and have a steady cash flow stream.

The Role of Founders in Public Relations

There is no doubt that founders are the start-up’s public face. They are sought by the media for their insight into the company’s operations and development. Consequently, they need to be prepared to interact with the media in a way that will benefit their brands’ image.

A product will receive far more attention if the CEO personally participates in both the introduction and promotion. In this approach, PR can be effectively accelerated, and earned media, which is always preferable to sponsored media, can be achieved.

However, what we have observed in most early and mid-stage start-ups is that the in-house team wears “multiple hats” and they tend to be pulled in multiple directions. They may not get the traction needed to focus solely on public relations. In other words, an in-house PR team is only effective when your team has the time, background, and skills necessary to effectively communicate with an outbound audience.

Hence, it is always advisable for start-up founders to outsource PR instead of building a team in-house, especially in their early-stages. This way, not only will they get instant access to established media relations, but it will also help them save hundreds of hours in PR and other editorial work.

Also, PR understands that running a business is challenging. However, the team must still have access to you. Remember that journalists work on tight schedules, so if PR requests your assistance promptly, respond. If you are unable to assist your PR team, appoint additional staff members who are familiar with the company’s operations and products.

Getting involved in the media can only help spread the word about your brand and elevate your position. It’s a no-brainer: more engagement means more attention, which means more earned media for you.

Building Long-term Positives with PR

The adage, ‘Life is a marathon, not a sprint’, is also relevant when it comes to public relations.

You won’t become a household name overnight. It takes time to lay the groundwork in the press. An organisation’s credibility grows as more of its products and services are featured in well-respected media.

Since PR is a long-term strategy, it is often the last element of a company’s plan. Start-up founders often argue that paid articles produce better results than public relations. Yes, for a quick, short-term campaign, they can be effective. They are, however, ineffective in terms of long-term impact. Not only are they expensive, paid credibility also doesn’t appeal to consumers.

Moreover, paid ad prices have skyrocketed across all major platforms, including Google, Meta, and Amazon. Most platforms use a real-time bidding system that works like a public auction. Advertisers bid to have their ads shown in the publisher’s slots. These bids have soared as more brands fight for the slot. It is straightforward for big companies with huge marketing budgets. However, it is difficult for early-stage startups with limited resources.

The scenario will not be any different in the Metaverse either. All businesses have started using Metaverse. More brands are likely to follow suit. If companies continue to pour their marketing dollars into paid positioning, the price is unlikely to stabilise. We can anticipate the same in the Metaverse. When that happens, paid media will again not be sustainable for start-ups.

In other words, brands must interact and engage with their audiences organically more than ever before. Through earned media, PR is better positioned to assist startups in building rapport with their stakeholders, be it Web 2.0 or 3.0.