By Ben Kulis, Simplicity Lone Beacon’s Operations Manager
For years, companies had to have multiple agencies each handling various tasks (e.g., digital, ads, public relations). But, as time has progressed and the tools and technologies have evolved, the lines between them have become blurred, and full-service integrated firms have taken over. Because of that, it’s easy to confuse the difference between marketing and public relations. While marketing and PR serve distinct functions, they both play crucial roles in supporting financial advisors in today’s fast-paced marketplace.
As you can see by the PESO model below, public relations now encompasses more than just the traditional press release with crossovers into marketing tactics of paid media and lead generation. The acronym “PESO” stands for Paid, Earned, Shared, and Owned media and was coined in 2014 by Gini Dietrich, Founder and CEO at Spin Sucks.
If you are looking for help with crafting your press releases, Simplicity Lone Beacon Content Manager, Graeme Mills walks us through how advisors can utilize press releases to gain visibility (and legitimacy) with your customer base in his latest blog post.
Public relations can also be a great tool to establish thought leadership through earned media placements and social channels but today we are focusing on how marketing often drives more tangible and measurable results:
- Targeted Outreach
Marketing efforts allow financial advisors to specifically target prospective clients based on demographics, interests, behaviors, or even financial goals. Tactics like email marketing, social media ads, or search engine marketing can reach a highly refined audience, increasing the likelihood of conversions.
PR, on the other hand, typically involves broader exposure through media outlets. While when used, it can boost credibility and trust levels, its audience is often more general and may not consist of potential clients who are actively seeking financial services.
- Measurable ROI
Marketing campaigns often provide direct and measurable results through lead generation key metrics like click-through rates, conversion rates, and customer acquisition costs. Advisors can track the effectiveness of their marketing campaigns in real-time, adjusting as necessary to maximize ROI.
PR, by contrast, tends to focus on brand awareness and reputation rather than immediate conversions. Quantifying the direct impact of media mentions, press releases, or thought leadership articles on client acquisition is often more difficult.
- Lead Generation
Marketing is typically more effective at nurturing leads. Financial advisors can run lead capture campaigns through websites, landing pages, or social media, offering downloadable resources, free consultations, or newsletters to build a pipeline of potential clients.
PR can enhance an advisor’s profile, but it’s usually less focused on direct lead generation. A positive media feature may boost an advisor’s reputation, but it doesn’t guarantee immediate inquiries or new clients.
- Control Over Messaging
Marketing offers financial advisors more control over their messaging and timing. They can tailor their content to specific market conditions, client needs, or current events and release it when it’s most relevant. This ability to directly craft and distribute the message makes marketing more effective at engaging with the right audience.
PR, however, involves third parties like journalists or media outlets, and the financial advisor doesn’t have full control over how the message is conveyed or when it gets published. This can dilute the effectiveness of the communication. However, it’s important to note that such outlets often have a robust audience you have immediate access to.
- Conversion-Oriented Strategies
Marketing is typically designed to lead potential clients through a sales funnel, starting from awareness to conversion, using multiple touchpoints and channels (e.g., websites, newsletters, paid ads). Tools like retargeting ads and follow-up emails ensure the audience remains highly engaged, to secure a consultation or client.
PR generally focuses on creating a positive public image and increasing visibility. While it can improve trust, it doesn’t directly engage with a client’s journey or move them through a conversion process as systematically as marketing does.
- Calls to Action (CTA)
Marketing initiatives can be designed with specific calls to action, encouraging potential clients to take direct steps, like booking an appointment, signing up for a webinar, or downloading a guide. These CTAs are aimed at driving conversions.
PR takes a passive approach, aiming for visibility and building trust rather than driving immediate action. While PR can be used to improve a financial advisor’s reputation; it rarely includes a CTA that directly drives client acquisition.
While PR can be a useful tool to enhance a financial advisor’s reputation and trustworthiness, marketing is often more results-driven and focused on generating leads, measurable conversions, and client acquisition. Both PR and marketing play integral roles in the growth of a financial advisor’s business. PR enhances visibility and trust, while marketing provides the tools to convert that trust into an actionable client relationship
About the Author: Ben joins the Simplicity Lone Beacon team, having most recently worked in the public relations sector developing marketing and PR campaigns for national brands within Science, Healthcare, Tech, and Professional Services. Before that, he spent over a decade in broadcast radio, creating integrated campaigns for clients and elevating brands. Ben began his marketing career working for the Kraft Group, leveraging the power of the Patriots brand through new media and the grassroots crowd-building efforts of the New England Revolution.
Outside of work, Ben is an active volunteer in youth sports and has served on the Games and Management Team for the MA Special Olympics for nearly 20 years. He lives in Woburn with his wife, Marie, and three children.
