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
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.
- 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.