PR budgets switch from ad industry

PR chiefs are reporting that they are taking client cash away from the ad industry – but not much.

Recalculation: PR budgets increase slightly
Recalculation: PR budgets increase slightly

49 per cent of industry bosses said PR budgets increased slightly in 2008 as a percentage of clients' total marketing budgets.

However, only 2 per cent say budgets increased significantly, in a poll of 48 CEOs who are in the PRCA’s leaders’ panel.

15 per cent of agencies say their budgets have decreased slightly, and 4 per cent have decreased significantly compared to their clients’ ad budgets.

LexisNexis corporate marketing executive Richard Dean confirmed the findings: ‘PR has increased in importance in my marketing budget due to the fact it is considerably easier to measure than advertising.’

Van Communications director Mark Cooper said: ‘This recession could prove to be a blessing in disguise. It will remove the comfort blanket of the multi-million pound media budget and force everyone to be more creative; to spend more time coming up with publicity ideas that can travel.’

91 per cent said that clients perceive PR to be more cost effective than advertising.

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