The SEC has released the ban on advertising by private issuers – but what does this mean for the finance industry that has experienced a major upheaval in recent years? As an industry that is still figuring itself out, PR is an important step for businesses when introducing advertising into company practices.
Private issuers will soon be able to not only openly discuss, but also advertise investments opportunities, as well as publicize past performance. Because the finance industry is now heavily regulated, the industry now needs more PR than ever before – in times of turmoil, much like what financial institutions are still reeling from, they need PR in order to maintain their footing during the changing industry landscape.
PR is the cornerstone of what makes people more willing to do business with a company and make risky investments – effective strategic PR campaigns serve to not only create increased interest, but also draw attention. But most companies mistakenly believe that advertising is the best way to educate the public on what they do – and the reason is simple: advertising is seen regularly be everyone. It’s tangible and makes brands recognizable. But when you’re attempting to convince people to trust you with their money (and large amounts of it), you need to build credibility.
You can’t take advantage of only one avenue and expect to get you desired results – by combining the power of advertising and strategic PR campaigns, you are then going to reach your target market in several direct ways. That is the essence of what PR does – third party endorsements by way of PR build your brand or service by imparting credibility. And consumers are much more likely to invest based on credibility rather than an advertisement.
For businesses in the finance sector, that is the key to resilience and a high ROI.