So you’ve decided to invest in public relations for your company. Congratulations! You’ve made a smart business decision that will pay off in many ways, now and for the long haul. Public relations services have the potential to broaden your market share, drive website traffic, increase sales, and paint a favorable image of your brand. Public relations engages many crucial audiences: your customers, employees, investors, and other stakeholders.
Small startups often cobble together and DIY their PR arm, but this only goes so far. Posting a press release on your website is a start, but it also recalls the falling tree in the forest scenario. Who’s listening? A professional PR program will help you develop messaging, identify your audiences and target media, and conduct the regular outreach required to solicit interest and engagement.
You also need to remember the old adage: you get what you pay for. Creating, cultivating, and protecting your brand is the essence of PR, and this takes time and effort. Patience and the willingness to learn, adapt, and evolve as condition changes can spell the difference between success and lackluster results. An effective strategy sets realistic budgets along with clearly defined expectations and goals.
Your competitors are paying attention and making the required investments. Technology and software companies, especially startups, for example might allocate 15-20% or more of their revenue to marketing, given the need to build brand awareness and acquire customers quickly. According to a recent CMO survey, PR budgets are growing at a similar rate.
For companies with $10 – $25 million in revenue, the average spend was 15.5% of revenues which are equal to $1.5M – $3.8M annual marketing budget. Public relations accounts for up to 20% of the overall marketing budget or up to 5% of the company’s overall revenue. This can account for $300,000 – $760,000 if using the company profile above. Some hyper growth companies are investing 25% of their revenues into PR to gain long-term advantages.
These CMOs also said the number one goal for marketing was brand recall. As customer competition intensifies, advertising is also ratcheting up. However, consumers tend to zone out when bombarded with ads across every platform. A well-placed article or byline is more likely to resonate and stand out when it’s a brand or topic they care about.
Other 2024 data shows average PR budgets based on agency sizes and what one should expect to spend as you look for public relations partner:
- Large international agency budgets are approximately $380,000 or more annually
- Mid-range agency budgets are approximately $156,000-$180,000 annually
- Smaller agency budgets are approximately $120,000 annually
- A mid-range freelancer is approximately $36,000-$100,000 a year
- Most PR budgets are either increasing (45%) or staying the same (50%)
Let’s be blunt. Quality public relations programs aren’t cheap. This is because the benefits of a seasoned professional team and a top-notch PR campaign are invaluable. One can’t buy a good reputation. Solid PR can bring long-term brand business wins unlike any other marketing tool, including improved brand recognition, third-party endorsement through earned media, heightened investor and analyst interest, and sales growth.
The overarching goal of a winning PR strategy is to deliver your company’s messages to target audiences and make them feel good about engaging with your brand. How to do this varies with every campaign and company, but to be successful, it requires an intense collaborative effort. PR isn’t magic, nor is it a quick easy fix for company issues. To get the most out of your PR efforts, you need to trust your PR team’s expertise and provide them with the resources they need to succeed.
Schedule a Meeting Today
