Although the question “How much do PR services cost” seems simple, the answer is hardly satisfying: “it depends.” However, we can define “what it depends on.” We present a short guide that will help you orient yourself on how much you should pay for PR services. If you are only interested in prices, go to the end of the text.
How a PR agency calculates value
The basis for pricing specific public relations services is always their scope – even an estimated one. Usually, depending on the goals the client wants to achieve, the agency proposes specific actions and estimates the time required for their implementation.
The second variable is hourly rates. These are linked to the consultants’ competencies necessary to perform a given task – an hour of a specialist working on a strategy will be more expensive than that of an assistant preparing a report. Often, agencies also use averaged rates.
In the case of projects – the number of hours is simply totaled, and based on that (as well as the agency’s hourly rates), the price is set. In the case of long-term contracts, the cost of larger irregular activities is usually distributed over the number of months of cooperation.
Project-based activities are usually relatively more expensive than those carried out under a longer-term contract. This results, among other things, from the costs of acquiring and servicing the business. Additionally, consultants must always devote a certain amount of time to getting to know the client, their specifics, preparing media lists, etc. In the case of a longer contract, these costs are spread over time.
Agencies generally prefer longer contracts. They allow for more stable business management, reduce customer acquisition costs, and bring predictability. Therefore, longer-term retainer contracts provide a significant margin for price negotiations.
In the case of PR services, it is often impossible to precisely define the scope of the consultants’ involvement. It may change depending on current events or needs. Additional activities are then contracted as projects.
Sometimes, to simplify settlements, clients purchase a kind of pre-paid plan – a specific number of hours per week that they can use depending on changing circumstances. This provides stability for the agency and, for the client, greater flexibility and lower prices.
Communication services in a crisis situation are a separate case. They usually require the involvement of experienced consultants and availability almost 24 hours a day. Crisis response activities are most often billed hourly, at relatively high rates.
Agency size vs. prices
Large, especially international agencies, naturally have higher prices than smaller and independent PR firms. Both types of agencies have their pros and cons.
A large network firm obviously comes with costs that are ultimately borne by the clients – corporate offices, directors, shareholder profits. In exchange for high invoices, clients gain access to high-class know-how and prestige.
Choosing a renowned agency is also a safe choice that superiors will not question. This is why large corporate clients usually choose large corporate agencies.
Smaller agencies can usually offer lower rates – they are more flexible and have lower operating costs. They often propose more experienced consultants for account management and guarantee greater commitment, even in the case of smaller clients.
Other factors influencing the costs of PR services include:
- specialization – knowledge of a niche industry comes at a premium
- market size and relevance – the audience to which the activities will be addressed
- labor costs in a given market – as these influence hourly rates
- specifics of a particular market – the supply of PR services
The United Kingdom is one of the more expensive markets in Europe. While forming a wealthy consumer market in its own right, it also serves as a gateway to the English-speaking world.
We can also expect higher rates in Germany, which is additionally decentralized. Every region in Germany has its own media ecosystem, which makes conducting PR activities covering the entire country time-consuming.
Lower rates can be expected in Southern Europe and Central and Eastern Europe – which results, among others, from the relatively low labor costs of specialists.
But again, “it depends…”.
Below you will find average prices for PR services depending on the scope and compensation of specialists in selected European countries (all prices are given in Euro). The prices were provided by PR agencies associated with the Enterie network.
