FMCG clients and agencies differ over future R&E spend

The budgets allocated to research and evaluation by the consumer

FMCG sector fall well short of the target of ten per cent set by PR Week

as part of its campaign to improve R&E levels in the industry, according

to this week’s straw poll of five agencies and five clients with FMCG

accounts.

FMCG consumer PR clients spend an average of 4.2 per cent of budget on

research and evaluation and90 per cent of poll respondents said that

average R&E spend was below five per cent.

Agencies and clients appeared to differ in their estimations of future

allocations to R&E. While all agencies say that budgets for research are

increasing, and four out of five say spend on evaluation is on the up,

40 per cent of clients say that they expect their budget allocation for

research and evaluation to remain static.

According to agencies, 66 per cent of consumer FMCG clients allocate

part of their overall PR spend to research and evaluation.

A frequent comment from agencies was that while clients often accept

their agency’s recommendations in theory, when it comes to actually

investing in research and evaluation, client enthusiasm and cash dries

up. However, clients said that they would spend more if R&E helped PR to

become more effective.

All FMCG agencies say that they recommend both media analysis and

audience research to clients.

POLL RESULTS

- Ninety per cent of the respondents to the straw poll said that average

R&E spend was below five per cent.

- Sixty per cent of clients said R&E standards were acceptable and 40

per cent said standards were good.

- All agencies offer evaluation and 80 per cent offer research when

pitching for new business.

- All clients would spend more on planning and evaluation if it helped

PR activity to be more effective.