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
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
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.