Public relations (PR) and marketing – two sides of the same coin, yet each plays a unique role in how businesses connect with their audiences. While PR focuses on forming a positive public image through media coverage and community engagement, marketing drives sales and awareness through targeted campaigns and advertising. Both are essential, but when it comes to measuring success, one question always comes up: Which one delivers a better return on investment (ROI)?

ROI is the metric that businesses use to determine if their efforts are paying off. If you are spending for a gloss marketing campaign or investing in PR to build your brand credibility, understanding ROI is essential. It's not just about where you're putting your money – it's about making sure you're getting the most for your money.

Related: What ROI should really look like for your company's public relations campaigns

Measuring ROI for public relations

One of the biggest PR wins is gaining media coverage – the mentions, features and interviews that put your brand in the spotlight. But how do you measure its value? It's not just about impressions; it's about the credibility you get by being featured by trusted media. Let's consider how to evaluate earned media and its impact on your brand reputation.

• Social media engagement: PR today goes beyond press releases. It's about driving organic social media engagement, whether it's through a viral tweet or a post that sparks a conversation—getting people talking about your brand without paid advertising.

• Brand Sentiment Analysis: It's one thing to get people talking, but what are they saying? Using surveys and online tools, you can measure changes in brand perception and trust – critical factors that PR efforts can affect.

• Increase website traffic: Have you ever noticed an increase in website traffic after a big PR push? This is not a coincidence. We'll connect the dots between your PR activities and those traffic increases, showing how earned media can directly impact your online presence.

Measuring ROI for marketing

One of the easiest ways to measure marketing ROI is tracking conversion rates. These rates show how well your campaigns are converting leads into buyers or subscribers. Whether it's sales or signups, conversion rates provide a clear indicator of your marketing success.

CPA is another key metric, comparing total marketing costs to the number of new customers acquired. For example, in industries like SaaS, The average CPA is around $702while it can be up to $1,450 in fintech. By following this, businesses can ensure that their marketing spend is efficient.

While CPA focuses on the purchase, Customer Lifetime Value (CLV) looks at the total revenue a customer brings in over their relationship with your business. By comparing CLV to CPA, you can determine whether your marketing efforts are attracting long-term, valuable customers.

After all, the most direct measure of ROI is increased sales and revenue. This gives you a clear picture of how your marketing translates into financial success.

Short-term vs. long-term ROI

Marketing campaigns are often designed to deliver quick wins, such as an immediate increase in sales, more leads, or increased revenue. These short-term benefits are easily measurable, giving businesses tangible, real-time data to track and analyze. In contrast, PR is more of a strategy, long-term construction brand loyaltycredibility and trust over time. While PR may not deliver immediate results like marketing, its focus on these elements leads to more lasting success and stronger customer relationships.

Consider a company that has invested in both PR and marketing. Their marketing efforts produced immediate results, driving rapid growth in sales and revenue. However, over time, their PR efforts increased brand credibility and customer trust, leading to steady increases in loyalty. This case shows how the two strategies can complement each other, balancing short-term wins with lasting brand strength.

Related: 7 crucial metrics to measure the effectiveness of your marketing campaigns

Cost analysis

When investing in PR, businesses face costs such as agency retainers, event management fees and distribution of press releases. These expenditures are aimed at building a positive image, securing media coverage and managing key relationships.

On the other hand, marketing costs typically cover paid advertising, content creation, and email marketing tools. Marketing budgets tend to be more flexible, allowing for campaigns that can be scaled according to immediate needs.

Deciding how to split your budget between PR and marketing depends on your business goals and market position. A new brand may prioritize PR to build credibility, while an established business seeking rapid growth may lean more toward marketing. A balanced approach, combining both strategies, often yields the best long-term results.

When PR delivers the highest ROI

PR really shines when building or restoring trust is a top priority. For new brands or businesses facing a crisis, PR can be the most valuable investment, especially in industries like healthcare or finance, where reputation is essential. In these scenarios, fostering trust and credibility through PR efforts often leads to higher long-term ROI.

For product launches or major events, PR is vital generating noise and ensuring media coverage. A well-planned PR campaign can attract attention and position your brand in the spotlight, leading to successful launches and sustained customer interest.

PR is also effective in creating thought leadership. By leveraging speaking engagements, media appearances and articles, PR can position a brand or its executives as industry authorities, indirectly increasing brand value and driving long-term revenue growth.

When marketing delivers the highest ROI

Marketing usually yields the highest short-term ROI when generating and selling are the primary objectives. For businesses looking for a quick increase in revenue or increased traffic, digital marketing campaigns provide quick and measurable results. This is especially true for e-commerce and direct-to-consumer brands, where tools like social media advertising and email marketing are essential for reaching consumers directly and driving conversions.

For businesses that rely on consistent advertising spend to maintain visibility, marketing proves to be very effective. Paid ads can be precisely targeted and easily adjusted, allowing businesses to maximize ROI and create immediate impact when needed.

Choosing the right strategy

Your choice between PR and marketing should match your business goals. If the focus is rapid growth, marketing is ideal. For the long term trust and reliabilityPR offers better returns. Different industries also benefit from different strategies – fashion brands may see more ROI from PR, while SaaS and e-commerce rely on strong sales marketing. A combined approach often works best, balancing short-term wins with lasting brand value.

Related: How to align your PR and marketing strategies to get the most out of both

In the debate between PR and marketing, the bottom line is that both have their place, depending on your business goals, budget and desired results. PR is invaluable for long-term trust and credibility, while marketing excels at generating quick, measurable results. For many businesses, the optimal strategy involves a combination of both, leveraging the strengths of each to maximize ROI.