To help you figure out how much to invest in PR, we polled successful business owners and CEOs this question for their best insights. From investing 1 - 3% to investing dependent on business needs, there are several amounts put forward that may help you decide how much revenue from your business to invest in PR.
Here are seven poll results about how much to invest in PR:
"The recommended amount for PR spending is between 1 and 3 percent of your total revenue. If you have a smaller business and aren’t generating large amounts of revenue, you can still benefit from PR if you invest a percentage of your marketing budget into PR. A PR campaign often costs less than other marketing efforts. Depending on the length of your campaign, you might invest between 0.5 and 2 percent of your total revenue."
"Spending around 5 - 10% of their revenue in PR can be profitable for businesses. Big businesses have been found to have good returns if they spend around 10 - 15% of their revenue on PR. However, that can be a big amount for small businesses that can set aside around 5% of their income. The fee of the agency can be variable but the most amount of profits are made with enough investment in the marketing strategies employed by the agencies."
"I would suggest a start-up to keep about 4 - 5% of their gross revenue aside for marketing and PR. They can increase the investment over time with higher profits. Even though there are studies that show that big companies usually spend around 10% of their revenue on PR, it will be a big percentage for smaller companies and start-ups. It, therefore, depends on the revenue margin of the companies in determining how much to spend. Even a lower budget for PR can be efficient for a start-up with a good agency."
"The percentage of investment into PR depends on the needs of your company. It may be best to set aside a budget for marketing, then take a percentage of that budget and use it towards your PR needs. Split your allotment of funds evenly between PR and other forms of marketing. As you collect more data one what forms of marketing are working best for your business you can shift the percentage of your investment to what's most effective. If PR investments are paying off for you, don't be afraid to lean into them. It's not uncommon to see 30 to 40% of revenue going to PR investments depending on the company. Invest what you need to make your PR work for you."
"The amount you should invest in PR varies depending on your goals and the market your company operates in. A large amount for some may seem ridiculously small to others. But in general, 10-15% of the profit is an entry threshold for implementing PR activities. It will certainly not be too much, yet it may be too little. Therefore, after the first few months, it is worth summarizing the effects of PR activities and adjusting the budget based on the results so far. Allow your PR budget to be flexible."
"Public relations is a cornerstone of your business success and helps you enhance your brand presence. When budgeting for your PR, the recommended sustainable allocation is up to 7% of your total revenue. This amount allows your brand the flexibility of having an up-and-running PR campaign, which can be supplemented over time from this 7% pool. No matter the size of your business, 7% revenue invested in your PR with the right strategy will bring a positive ROI."
"Each company is unique. The amount of money you should invest in PR will always vary depending on your business and its specific needs. If your gross revenue is less than $5 million per year and your net profit margin, after all, expenditures are in the 10% to 12% range, you should spend 7 to 8% of your gross revenue on marketing and advertising. You should consider allocating around 3-5% of your total revenue to PR and marketing efforts for start-ups and small businesses. It's important to remember that effective PR and marketing can be extremely valuable in helping to grow your business. You can attract more consumers, raise brand recognition, and increase your bottom line by investing in quality PR and marketing services."
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