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Re: "pr Spend" for Corporates

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  • rick eaton
    K. Business (corporate) expenditures range from zero dollars to millions, depending on the size of the company and its commitment to communications. Public
    Message 1 of 3 , Mar 10 4:03 PM
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      K.

      Business (corporate) expenditures range from zero dollars to millions,
      depending on the size of the company and its commitment to
      communications.

      Public corporations (those that are traded on the stock market)
      generally have separate investor relations budgets that would
      substantially raise all of the numbers I am providing.

      A global food service franchiser I handle projects for did virtually
      nothing in PR until it hired Hill & Knowlton to handle crisis management
      (only) after McDonalds was sued by a patron as a result of a hot coffee
      spill by the patron. They recently hired a major U.S. agency for
      on-going and broader representation and my guess is that the annual fee
      is +or- $150,000. Most of the firm's communications dollars are in
      advertising, aimed at bringing customers to the door. In fact, with the
      exception of one major corporate asignment recently, all of my work has
      been for a major franchisee who spends about $25,000 per year only.

      I have a one-person agency that partners with other agency to serve
      major, national and global clients, and some lesser firms. I will spend
      about $2500 on PR this year.

      Other examples:

      An assisted living community (110 lusuryapartments with nursing care;
      not a nursing home) now being launched via an integrated marketing
      communications campaign is spending $10,000 in six months.

      The global leader in telephony-based trading systems for the financial
      services industry spend $175,000 (of a total budget of $1.2 million) on
      PR, mostly product-related publicity and investor-releations work.

      A recently completed internal communications brochure for 6,000 line
      supervisors and uppermost management of the U.S. Postal Service cost
      about $20,000 total. This project represents a fraction of what the
      agency spends in both internal and external PR.

      A major regional bank spends about $100,000.

      There are no rules that I know of, but my experience over the years is
      that larger companies spend between 10 and 15% of total budget on P.R.
      fees, with out of pocket amounting to another 5-7%. But, again, the
      exceptions are greater than the rule.

      Hope this helps.

      Rick Eaton
      Eaton & Noble Strategic Communications
      voice: 203.453.6261
      fax: 203.453.0076
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