Maybe you’ve never hired a PR firm before, or maybe it’s been a while and you’re just unsure of what a PR agency costs. Either way, you’re asking yourself, “how much will a PR firm cost me?” Since PR usually falls within the marketing budget, let’s start there.

To grow your position in the marketplace, a good marketing allocation is about 15% of revenue. In 2022, the average marketing budget for B2C brands was 13.7% of revenue, and for B2B brands, it was about 10% of revenue.

So if you’re an average company, and you’re looking to maintain your position, you’re probably spending in the range of 10% of revenue. If you’re looking to dominate, your budget should be higher. Ambitious startups typically allocate between 12-17%. A typical breakdown might be that 1/3 of the budget is advertising, 1/3 of the budget is content, and 1/3 of the budget is PR. Large international agency budgets can be $380,000 or more annually, while a mid-range agency budget typically clocks in at $156,000-$180,000 annually and a smaller agency budget would be $120,000 per year, a mid-range freelancer could be anywhere from $36,000-$100,000 a year. If you’re a CPG or DTC brand with a marketing spend of under $100,000, then you might consider consumer product PR sprints, which feature micro contracts that align with key buying seasons. Hiring a PR agency is an investment, but considering PR converts ten to 50% better than advertising, PR is indeed a place where the ROI pays off.

 

So what goes into a PR agency’s fees?

 

According to Muck Rack’s 2021 State of PR report, the number one cost to a company to PR is the agency, which makes sense because unlike programmatic ad spending (a typical minimum is programmatic spend is $25,000/month), PR agencies rarely have a minimum spend or activation fee requirements outside their retainers.

PR agency rates increased, and in 2020, the average PR agency CEO billed $417 per hour, while VPs clocked in at $319 per hour and Account Managers billed $256 per hour. The average blended rate was $240 per hour. It’s safe to say that if your PR team has executive PR experience, and your agency spends an average of 10 person-hours per week on your account, your monthly retainer will be around $13,226 per month.

If you require more executive hours, your fees could go up. If you work mostly with a junior team, your rates could go down. Oftentimes, fees are different depending on your strategic objectives. For example, if you want to keep a firm on retainer for a few calls a month, and no proactive media outreach, your annual fees may be considerably less. If you are trying to secure investment or you’re pre IPO, you may find your fees are on the higher end of an agency’s fee structure.

It’s a balance to strike your budget with your goals, but when asked, I always give the same advice to CMO’s and startup founders. In 2020, 45% of companies increased their PR budget. If your budget is $400,000 or more per year, hire an agency that does $20 million+ in revenue. If your budget is $180,000 per year, hire a boutique PR firm, with less than $10 million in revenue. If your budget is $60,000 per year, don’t hire an agency, hire a freelancer.

Odwyer PR’s annual report shows rates increased considerably between 2019 and 2020, so if your agency didn’t raise its rates, you’re fortunate.

Agencies are notoriously reluctant to share minimum retainers, but in 2013, several agency executives did just that with PR Observer, an industry publication.

“To properly scope a client program and assign the proper team support, we feel $15,000 – $17,500 per month is a reasonable starting point.”Anne Green, President & CEO, CooperKatz & Company, Inc.

“Our retainers range from $7,500 – $50,000 or so. Crisis costs are different and generally charged by the hour with a $20,000 minimum.”—Ronn Torossian, Founder & President, 5WPR

“We have some clients that pay us $100,000 or so per year, some clients that pay us more than $100,000 per week, and many clients that pay us $100,000 or so per month.”— Mark Hass, President & CEO, Edelman United States

“Our clients generally pay between $15,000-$30,000 a month depending on the workload.”—Stu Loeser, Founder & President, Stu Loeser & Co.
So what’s typically included in a bespoke retainer rate? Well, again, that may depend on each agency’s specialty. For example, if your agency specialized in digital communications, you may find that social media content creation is included, but media relations are not. But the following services are a good rule of thumb to expect within our typical PR agency retainer:
  • Strategies about how to stand out from your competitors using PR
  • Internal and external communication strategies that match your growth goals.
  • Campaign development and creative activations for marketing opportunities.
  • Media relations, and securing regular media coverage, speaking engagements.
  • KPI and business impact reporting.
  • Copywriting such as press releases, speeches, white papers, and branded journalism.
  • PR crisis planning – but not necessarily crisis management.
  • Partnership strategy and potentially management such as cause, social impact, or purpose-driven PR initiatives.
  • Executive training, including media training, interview prep, and research or executive ghostwriting.
  • Content strategy for video, social media, and inbound leads.
  • Content creation oversight, including social media, photography sessions, and video development.
  • Poll or research development, implementing the poll may or may not be within the agency’s retainer.
  • Peer agency coordination, such as with branding or advertising agencies.
  • PR campaigns that “make the news,” are designed to create word-of-mouth or media opportunities.

For a complete list of what we would include in your PR retainer, reach out to us and tell us more about your business and your goals.

Hiring a PR agency is an investment, but considering PR converts ten to 50% better than advertising, PR is indeed a place where the ROI pays off.

 Is a press release an effective investment? That’s a question that many business owners and marketing professionals are asking themselves in today’s digital age. The answer, unfortunately, is not a simple one.

If you’ve already done your press release research, then you know it’s expensive for good press release distribution and it’s time to focus on press releases. However, before we talk about press releases, let’s take a step back and look at some basic PR knowledge.

On the one hand, press releases can be an incredibly valuable tool for getting your story out there and reaching a wider audience. They can help you build credibility with media outlets and create a positive image for your brand.

On the other hand, press releases can be quite expensive to produce and distribute, and they may not always be effective in reaching your target audience. 

Given the state of the press in today’s media-saturated environment, press releases do this: more people see them than they did years ago when people actually opened their mailboxes to find physical press releases with paper clips on them! In other words: today’s press releases aren’t exclusive to journalists. In fact, most PR experts agree: press releases do little to gain earned coverage. Direct pitching an inside scoop is much more effective. 

But, press releases are still an effective way for organizations to disseminate news to journalists, media outlets, and bloggers in a format that is easily digestible by search engines. This allows for wider distribution of your message, which will eventually lead to backlinks and press mentions. However, if you’re looking for tangible ROI from press releases, you might be disappointed – press releases are not the silver bullet for marketing success.        

Whether to issue press releases is a decision made on a case-by-case basis with your PR agency. If they recommend press releases, there are a few reasons:

1) Well-written press releases are an effective part of an SEO strategy and improving search engine rankings. 

2) Press releases help to establish your company or organization as an authority in your field.

3) Issuing press releases can help you to build relationships with journalists and bloggers.

4) Press releases can enhance the all-important trust factor.

5) Press releases can be a way to spread the news about your company’s products and services during slow news periods.

6) Issuing press releases is a great way to stay connected to journalists and bloggers who might write or blog about you in the future.

7) Press releases can serve as “proof” that you are actively involved in your industry if someone were to call out of the blue for this reason.

8) Well-written press releases can establish thought leadership, which may help attract new clients down the road.

9) In today’s world, press releases can be powerful social media content tools — if they’re written well, quickly go through press mentions and social sharing.

A modern PR agency can help you determine whether press releases are the right tool for your organization and, if so, how to write them to garner the most attention. We’re a top-rated Los Angeles PR firm with a distributed team in major media centers. For more information on press releases and other aspects of effective PR, please contact us.

 That’s a question that many business owners and CMOs are asking themselves in today’s digital age. The answer, unfortunately, is not a simple one.

Before we talk about press releases, let’s take a step back and look at some basic PR knowledge and when and where press releases do work. 

Pros and Cons of Press Releases

On the one hand, press releases can be an incredibly valuable tool for getting your story out there and reaching a wider audience. They can help you build credibility with media outlets and create a positive image for your brand.

On the other hand, press releases can be quite expensive to produce and distribute, and they may not always be effective in reaching your target audience. 

Given the state of the press in today’s media-saturated environment, press releases do this: more people see them than they did years ago when people actually opened their mailboxes to find physical press releases with paper clips on them! Today’s press releases aren’t exclusive to journalists. In fact, most PR experts agree: press releases do little to gain earned coverage. Direct pitching an inside scoop is much more effective. 

But, press releases are still an effective way for organizations to disseminate news to journalists, media outlets, and bloggers in a format that is easily digestible by search engines. This allows for wider distribution of your message, which will eventually lead to backlinks and press mentions. However, if you’re looking for tangible ROI from press releases, you might be disappointed – press releases are not the silver bullet for marketing success.        

9 Reasons Why You Should Issue a Press Release

Whether or not to issue press releases is a decision that should be made on a case-by-case basis with your PR agency. If they recommend press releases, there may be a few reasons why: 

1) Well-written press releases are an effective part of an SEO strategy and improving search engine rankings. 

2) Press releases help to establish your company or organization as an authority in your field.

3) Issuing press releases can help you to build relationships with journalists and bloggers.

4) Press releases can enhance the all-important trust factor.

5) Press releases can be a way to spread the news about your company’s products and services during slow news periods.

6) Issuing press releases is a great way to stay connected to journalists and bloggers who might write or blog about you in the future.

7) Press releases can serve as “proof” that you are actively involved in your industry if someone were to call out of the blue for this reason.

8) Well-written press releases can establish thought leadership, which may help attract new clients down the road.

9) In today’s world, press releases can be powerful social media content tools — if they’re written well, quickly go through press mentions and social sharing.

A modern PR agency can help you determine whether press releases are the right tool for your organization and, if so, how to write them in a way that will garner the most attention. For more information on press releases and other aspects of effective PR, please contact us.