The Value of Public Relations in the Economic Development Marketing Mix

Public relations is a core component of the business of economic development. Through proactive media relations and strategic content creation, public relations tactics build awareness and education around a particular market’s economic competitiveness, thus attracting businesses and talent alike. For economic development organizations (EDOs) looking to boost the visibility of their market area on the national and international stage, or even change perceptions about their place as a potential place to live, work, or locate a business expansion project, a robust public relations program is a key to any market’s economic development success.

In their publication Economic Development Marketing & Priorities (Third Edition) economic development consultants Anatalio Ubalde and Alissa Sklar, Ph.D. noted that “marketing” is ranked as the #6 priority of economic development organizations overall. Within this area of marketing, the authors then dive into the prioritization of the various marketing tactics - such as websites, social media, public relations, etc. - and their evolution within the digital age. Their valuable, expansive survey of economic developers active in the industry today also garners personal insights into their perceptions of these tactics and documenting the shifts that have been felt within economic development marketing processes over time. As of the latest survey conducted in 2023, the “public relations” tactic sits as the #5 priority within the marketing arm of economic development offices around the country.

The two spoke in September about their latest findings at the IEDC Annual Conference in Denver, Colorado, and some key highlights from their writing emerged making a strong case for the opportunity public relations offers to the economic development marketing mix.

Identifying Newsworthy Trends

To effectively promote any economic development organization or place as a location for doing business, it’s first important to understand the relevant, timely trends in the global economic development landscape. Workforce development is, without a doubt, one of the most important current focus points, showing up as a high priority for 12% more economic developers than it was when the authors last surveyed the community in 2011. As the labor shortage and skilled labor gap continue to increase, it’s likely that workforce development and workforce attraction will remain a top-level issue for economic developers in the years ahead. The most recent unemployment data in the United States certainly reinforces this fact.

Small business development and local business retention also have seen gains as top priorities for EDO’s, experiencing an upward trend in priority since 2011. EDO’s are expanding their commitment to investing in their local communities in hopes that it will support long-term economic growth. After the global COVID-19 pandemic, the rise in startups and small businesses has clearly indicated that self-employment is a growing market trend and one worthy of economic development attention. At the recent IEDC annual conference, many speakers were focusing on small business and startup resource issues – moving their attention toward helping these small businesses grow and achieve long-term success.

Since local businesses and small businesses have a particular vested interest in the success of their community, EDOs are also increasingly committed to promoting their growth the development. These passionate, risk-taking community members are natural ambassadors for their communities, so leaving them out of the marketing and promotion priority set would be a missed opportunity.

By aligning your proactive public relations plans with these types of timely trends, earned media and bylined stories are much more likely to be read by broader audiences – thus increasing their impact.

Establishing Benchmarks

To identify the impact of public relations on economic development, organizations must develop their own set of key performance indicators, or benchmarks, in order to optimize their overall marketing efforts. The three most popular benchmarks include internet and website traffic, leads generated and audience expansion across email marketing and social channels.

Each of these tactics are correspondingly interconnected, showing that public relations success is directly correlated to an organization’s visibility. By analyzing the data trends for each benchmark, EDO’s can visualize the direct impact of public relations on the support of their organization.

Advising Site Selectors

Site selectors are one of the most important target audiences for EDOs looking to attract new business investment and job growth to their market. Therefore, it’s helpful to understand where site selectors gather their data and information when selecting a location for their businesses’ expansion. EDOs websites are noted in the research as one of the first places site selectors go to gather information on a prospective location, with 81% of site selectors in the United States and 60% of international site selectors indicating this as an important research source.

Further, publications and editorial media are especially important outlets for international site selectors looking to bring investment into the United States, with 49% indicating this as an important source for their information. With foreign direct investment (FDI) on the rise and coveted by EDOs, traditional media relations and public relations are a key tactic to reaching international audiences.

We’re Here to Help

After participating in this session and reading Economic Development & Marketing Priorities (Third Edition), public relations is undoubtedly clear as a key to driving economic development success.

The Violet PR team works tirelessly to leverage timely economic trends, project selection announcements, thought leadership angles, and key messages to secured earned media coverage for organizations working in economic development around the world. If your EDO is looking to bolster its image and drive economic growth, we are here to help. Reach us at hello@violetpr.com.