Although the economy is starting to show some signs of life, the markets remain in decidedly bearish territory, putting the squeeze on PR budgets among both corporations and
the PR agencies that serve them.
But even if prosperity were to somehow magically return tomorrow, it's still likely that the nature of PR budgets -- and how they're allotted -- has changed forever,
considering the ever-widening number of media choices to place the PR dollar but still no guiding principles in the industry on how to measure the investments. This goes for
whether the PR placement is in print, broadcast, the Web or a combination of the three. And you can't forget one-shot events, which are an increasingly low-cost way to get
exposure in the media. However you slice the pie, you have to make sure the plan is well executed on all fronts, even though budgets are sorely limited.
With all of that in mind, PR NEWS asked several communications veterans to share key strategies on how to stretch PR budgets and still be responsive to clients' needs.
Jan Hausrath, Senior Vice President and Director of Media Relations, APCO Worldwide, 202.778.1056; [email protected]
Even though corporate budgets for PR services are tight, agency professionals can still have a positive effect on a client's bottom line and produce measurable results. To
make communication dollars go as far as possible, it is important to think strategically in the early stages of a project and place an emphasis on areas where a little
communications work will go a long way. You need to clearly define the desired outcomes, the strategy and tactics needed to get there. And don't forget to manage the client's
expectations carefully.
In addition, try these time and cost saving techniques to get your client's message out:
- Integrate your communication channels;
- Look for existing content and repurpose it for the media;
- Explore the cost-effectiveness of technology -- push marketing with interactive
multimedia; - Syndicate your content -- reach out to organizations and/or news portals
that reach your target markets and offer content to these Web masters/editors.
Linking strategies between Web masters and editors optimize search engine
performance as well.
Bruce Jeffries-Fox, President, Jeffries-Fox Associates, 609.884.8740; [email protected]
When we're asked to do more with less, there can only be one response: strategic
focus. I'm convinced that PR people are overflowing with creativity and when
given a direction, they can execute beautifully. But in a tight economy, we
need to do a better job of determining what we should be doing in the first
place. Not at the macro level-- that direction should come from the business
plan--but within our own shop. We need to re-invent how we develop and target
our PR programs so that we gain more impact with fewer dollars. To do this we
need some objective, defensible way of gauging what's working and what isn't,
and then we need to be absolutely ruthless about weeding out programs that aren't
cutting it. Some pet projects may need to be heaved overboard, but that's a
hell of a lot better than cutting jobs. This discipline will also probably yield
more dollars for the remaining programs, giving them a far better chance of
being effective.
Gary Lewi, senior executive vice president, Rubenstein Associates, 212.843.8010; [email protected]
Limited economic resources are now found in virtually every business sector and the agency that fails to develop a spectrum of strategies to work with that bottom line will
quickly become irrelevant.
Obvious but often overlooked, we follow a practice that looks at what cost savings can be achieved up and down the vendor chain, paring the costs of printers, photographers,
etc. Another cost management element is the ongoing review of the client's stated strategic goals for the purpose of determining whether we are correctly configured to meet those
objectives.
Agencies can find that focus and resources have drifted from the client's critical macro issues while pursuing the tactical execution of the strategy. That means there is the
potential to put scarce financial resources into areas that may achieve an immediate placement, but fail to meet the real objectives required by the client. By building in a
review process, we are able to ensure that every dollar allocated for PR creates real value. "Work ethic" is not a budget constraint. A commitment to service doesn't shrink--even
if the client's budget does.
Benjamin Lewis, president- founder, Perception Inc., 410.573.5750; [email protected].
A volatile market and slumping economy have greatly impacted many American companies. During the rough times businesses look to cut costs, with communications departments
being first on the chopping block. But through a proactive media relations campaign, companies can stay in the public eye on a limited budget. Media relations requires you to
constantly monitor your targeted media outlets and identify those hidden opportunities where you may be presented as an expert or opinion maker. Develop story ideas and pitches
based on what your company is currently doing and share those with the outlets.
As the economy slowly recovers, reporters, editors, and producers are becoming more aware of the need to provide some positive stories to their readers. Americans have become
cynical of business and finance and no longer want to read about the problems - only the solutions.
Be proactive and be passionate about what you have to say. The media will follow.
David Moorcroft, Senior Vice-President,RBC Financial Group, 416.974.0520; [email protected]
In order for corporate PR shops to survive during tough economic times, we need to reinvent ourselves as a value-added resource that can positively impact our organization's
bottom-line. To achieve this goal, we need to do four things well.
First, we need to develop strong strategic planning skills to compliment our solid tactical abilities. This will allow us to produce a roadmap that clearly links our budgets to
the organization's vision and business goals. Second, we need to improve our analytical abilities and depth of business knowledge. This will allow us to get a seat at the
management table, and be seen as respected advisors, rather than just writers and flaks. Third, we need to measure the results of our work in ways that demonstrate our
contribution to the bottom line. This will ensure we are seen as a "need to have" rather than a "nice to have" function. And fourth, we need to be vigilant about expenses,
constantly looking for ways to manage our budgets so that we can do more with less. The corporate PR shops that do these things well usually provide better returns on investment
and weather any economic storm.
Gerald S. Schwartz, President, G.S. Schwartz & Co. Inc., 212.725.9188; [email protected]
An old boss once said to me that hourly rate work expands to fit the available time. But in the post-1990's bust, sometimes it seems the work expands to fit fewer available
dollars.
All of us who run successful PR agencies, particularly over many years and several recessions, have seen fees decline when business is tight. It's simple supply and demand
economics. But one of the great things about the dot.com phenomenon was that venture capitalists pushed their portfolio companies to spend more on marketing, including PR, and
with that rising tide all boats were lifted. PR took on new importance and the field was hot, attracting some of the best and brightest. At the peak, there were enough dollars
flowing from clients to pay for ever-escalating salaries caused by a tight labor market. And, for awhile, the field was attracting real talent who could deal with sophisticated
corporate clients and complex public relations issues--almost up there with management consultants, investment bankers and lawyers.
Today, commonly, professional fees are one-half to one-third of what they were, with $25,000 per month and up on the rare side. Giant agencies compete aggressively with
small ones, like puppies scrambling around a bowl of dog food. Yes, cash flow is important and, in the name of profits, the need to work harder for less is very real.
Thankfully, clients have showed us the way to do more with less, by telling us to focus on good old fashioned publicity, which can drive client sales sometimes much faster than
corporate social responsibility and lavish special events.
Eventually, fees will rise again if clients want their PR agencies to meet the needs and demands of the new century.
Helene Solomon, President & CEO, Solomon McCown & Co., Inc., 617.695.9555; [email protected]
Gone are the days of big budget retainers and yearlong programs. Given tight or non-existent communications budgets, and a longer decision-making process for budget and
program approvals, it is important for public relations agencies to maximize business opportunities for the long-term through project work. Through projects and clearly focused,
limited scope programs, agencies have the opportunity to either get a foot in the door, or reinforce capabilities to generate results for existing and prospective clients.
With clearly defined deliverables and objectives, clients benefit from the support and resources of an agency, while building relationships. If the project can be positioned
as a first phase of a program that could grow in the future, then there should be opportunities to develop additional tactics and projects that capitalize on the good work that
was done.
Adapting to the current reality can also be stimulating for staff, as this environment requires the very best in creative thinking. In the end, it can be a win-win for both the
client and agency.