By Samantha Gonda
Across the globe, inflation rates are reaching record-high numbers. It seems that every other week another subscription service or necessary expense is sending out a mass email alerting their customers of a hike in prices. This increase in prices has had a substantial effect on the cost of doing business in the world of public relations. From access to essential databases, rent, and even the cost of taking a media contact out for a simple cup of coffee, PR professionals are surrounded by the burden of global inflation rates.
To give a global perspective of the massive inflation rates, the PEW Research Center recently conducted research that has revealed the exact inflation rates of the top forty-four economies in the world. They note, “The average annual inflation rate in the first quarter of this year was at least twice what it was in the first quarter of 2020, as COVID-19 was beginning its deadly spread. In 16 countries, first-quarter inflation was more than four times the level of two years prior.” With this consistent increase of rates across industries, many businesses are left wondering whether they can afford to hire a PR agency or not.
And with PR agency rates varying by area of expertise, location, and size of the agency, it can be difficult to pinpoint how much brands should budget for public relations specialists. With this in mind, PRBI has run a survey breaking down what brands can expect to pay their PR partner at a boutique agency.
United States
NY & CA:
Median Monthly Fees: $9,000
Average Range: $5,000 – $20,000
Average Billing Method: Monthly Retainers & Project
Rest of the US:
Median Monthly Fees: $5,000
Average Range: $3,000 – $15,000
Average Billing Method: Hourly, Retainer & Project
Europe
Median Monthly Fees: $3,500
Average Range: $2,000 – $7,000
Average Billing Method: Hourly, Retainer & Project
Asia
Median Monthly Fees: $4,000
Average Range: $3,000 – $7,000
Average Billing Method: Retainer & Project
South and Central America
Median Monthly Fees: $8,000
Average Range: $2,000 – $12,000
Average Billing Method: Retainer & Project
One of the key takeaways from this survey is the large range of monthly fees among PR agencies.. If you’re looking at these numbers and wondering why some accounts are paying lower monthly fees than you are, don’t panic. The reason for this range of prices is simple. With each account requiring different scopes of work and each agency offering their own unique attributes, no two accounts will be the same.
Currently, most PR agencies are offering a menu of options for their clients. While one client may only be interested in receiving editorial coverage, another may be looking for editorial placements, influencer outreach, content creation, and affiliate marketing. PR is an incredibly broad field that covers a vast scope of work. Depending on what you are looking to get out of PR is essential in determining how much will be necessary to budget for your PR team.
If you are interested in learning more about what a PR boutique agency can do for you or the rates that you can expect to budget for in a specific part of the world, please visit PR Boutiques International to find a reputable agency that best fits your needs.