Setting Your 2025 Budget? Here’s Why PR Is a Necessity

a budget spredsheet showcasing PR agency fee structures that clients pay

As we dive into budget planning for 2025, most business leaders are bracing for yet another year of uncertainty. Between the unpredictable election, mixed economic signals and the drought in venture capital funding, it’s no surprise companies plan to spend cautiously for the next 12 months.

Unfortunately, that also means many are likely to cut back on public relations or even cut their PR agency out of the budget entirely because they view PR as a “nice-to-have” during boom times. It’s a scenario we've seen many times: companies slash PR and lose valuable momentum, only to spend even more time and money clawing back out of their attention deficit when the economy or their market sector comes roaring back.

Proactive PR

The opposite approach is much smarter: because PR is a growth driver when times are lean, that’s when it’s most essential. Like exercising or saving for retirement, PR is an investment in a company's future.

And as the economy is cyclical, this economic stagnation shall soon pass. VCs aren’t known for their patience, and with the infusion of funding that sparked the unicorn era running out, investors will likely release some capital in the coming months.

That’s because VCs know you have to spend money to make money. Which begs the question: If you cut PR now, where will you be when things come roaring back?

As you set your 2025 budget, here are four reasons to keep PR in the budget to maintain top-of-mind awareness and avoid losing ground.

  • PR is part of the sales process. You wouldn’t cut your sales team if you’re trying to grow sales—so why cut PR? PR is essential for building awareness and reputation, both critical for converting customers throughout the sales funnel. Contrary to popular belief, PR can produce measurable ROI for driving sales with a strategy focused on sales attribution and trackable metrics, and an agency should be able to show how it's generating leads or sales.
  • PR maintains momentum. When PR is cut off entirely, it can take at least six months to a year to regain that lost ground. You never know who’s watching when you shut off the faucet—a new investor, potential customers or someone eyeing you for an acquisition. Instead of turning off the PR faucet completely, approach it like you would to avoid frozen pipes: leave it on at a trickle to prevent any damage.
  • PR agencies can fill in gaps. If a communication or marketing team’s bandwidth is maxed out, it can be tough to get all the work done to support sales and operations. A PR agency can do much more than just media relations; it can function as an extension of your team and take work off their plate. Even better, an agency brings industry knowledge, experience and connections to get a brand in front of target audiences faster, with the right message and context to drive interest.
  • Crisis communications. If we’ve learned anything over the last five years, it’s that a crisis will hit when you least expect it. It takes time for an agency to get up to speed on your business, key audiences, strategic messaging and core values. If you wait to call in a firm when things have already hit the fan, a lot of damage can happen during that onboarding period. Keeping an agency on retainer means you have someone in your corner who already knows your company, and they can hit the ground running if something goes south.

When times are uncertain, PR can be the differentiator that keeps you ahead of the competition. If you stop all PR activities waiting for things to rebound, you can be sure that your competition will not, and they’ll easily pull ahead.

Instead, now is the time to do the opposite: keep the content, campaigns and awareness flowing so your brand stays at the forefront while your competitors pull back.

Heather Kelly is CEO at Next PR.