PR Spending on the Rise
PR budgets are gaining weight and clients are fat and happy, according to results of the latest Thomas L. Harris/Impulse Research Public Relations Client Survey, announced last Wednesday. Client corporations have already channeled an additional $1 million+ each into PR this year, with PR budgets averaging $4.42 million in 1999, compared to $3.37 million in 1998. The gain is wholly attributed to an increase in projects outsourced to agencies. Notably, 91% of the 1,730 client executives who participated in the Harris study rated the performance of their PR firms as "good" to "outstanding."
"That is very good news for PR firms. Clearly the working relationship between clients and their PR firms is growing closer, wider and deeper than ever before," says principal Thomas L. Harris.
The Harris findings are consistent with a survey conducted by the American Advertising Federation (AAF) earlier this summer, which revealed that PR has surpassed advertising as a preferred tactic in meeting sales and marketing goals. The AAF study - conducted by the New York research firm Erdos and Morgan - asked 1,800 execs to rank seven corporate functions in terms of their strategic importance. PR came in third behind product development and strategic planning. Advertising was ranked sixth.
The groundswell for PR is not necessarily a mystery. In fact, one Harris finding offers a significant clue into PR's gain in popularity: 86% of respondents specified that they measure results - a significant gain of 15% over 1998 - perhaps proof that accountability invites the trust of corporate partners.
For the first time in its seven-year history, the 1999 Harris survey also sheds light on PR spending by function. Corporate and product media relations claimed the largest chunk of the budget pie, with combined expenditures representing 23.8% of total client PR budgets. Other categories that accounted for the highest allocation of dollars are special events, internal communications and public affairs.
Largest PR Budgets in 1999 |
|
Industry Averages |
|
| Telecom | $13.4 million |
| Energy | $7.8 million |
| Consumer products | $6.2 million |
| Food & beverage | $5.6 million |
| Information tech | $5.3 million |
Family Matters
You can be a "mom and pop" shop and still compete with the big daddies in the employee relations arena. Silicon Valley's Benjamin Group, an 80-person PR firm, proves it.
The company was recently honored alongside Mattel, IBM and Universal Studios as one of the top 100 U.S. companies for working mothers, in the annual list compiled by Working Mother magazine. The magazine evaluates each company's culture, employee population and policies on work/life and women's advancement.
The Benjamin Group, which was acquired in July by BSMG Worldwide, offers on-site childcare and 24-week maternity leave, along with flex-time and other family-friendly benefits.
"As our firm grows, we continue to implement and expand our innovative work/life balance programs to meet the changing needs of our staffers," says president and founder Sheri Benjamin.
The firm recently opened offices in San Francisco to "attract local talent and give our current San Francisco employees the opportunity to work closer to their homes." (Benjamin Group, 408/559-6090)