Corporate PR gaining in stature and budget

NEW YORK: After years of downsizing and outsourcing, new evidence suggests that the in-house PR team is gaining respect within the executive boardrooms of corporate America, with the head of PR reporting to the CEO or chairman in 47.7% of cases.

NEW YORK: After years of downsizing and outsourcing, new evidence suggests that the in-house PR team is gaining respect within the executive boardrooms of corporate America, with the head of PR reporting to the CEO or chairman in 47.7% of cases.

NEW YORK: After years of downsizing and outsourcing, new evidence

suggests that the in-house PR team is gaining respect within the

executive boardrooms of corporate America, with the head of PR reporting

to the CEO or chairman in 47.7% of cases.



While PR teams and budgets remain small, the PRWeek/BSMG Worldwide

Corporate Survey 2000 report, published today, found PR budgets to be

rising - up 6.9% in 2000. PR spending will also rise as a percentage of

the marketing budget, from 17.1% to 18.6%. There is no expected change

in the percentage of spending on external agencies.



The survey, which tapped 802 PR bosses at US corporations, represents

the complete spectrum of companies, with revenues ranging from less than

dollars 10 million to dollars 10 billion-plus.



The average PR budget was dollars 1 million, representing just 0.08% of

annual revenue. Aside from salaries/overhead, media relations (14%) made

up the largest percentage of the PR budget, followed closely by

corporate advertising (13%) and special events (11%).



Spending on research was minimal at 3%. IR spending was also found to be

low, partly because only 15% of PR departments control the IR

function.



The report also examines the role of the Web in corporate strategy, and

looks at the part PR plays in it. The survey found that, for 77.7% of

respondents, the company Web site is viewed as a communications

vehicle.



But while most PR departments are ’very involved’ in the development of

Web strategy and content, it appears that few corporate PR heads trust

their PR agency to help. Only 20.3% of agencies were ’very involved,’

while 32.1% were ’very uninvolved.’



- See editorial, p16 and Corporate Survey 2000, p25.



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