Written by Marcela Balart

It is a truth universally acknowledged that an organisation’s reputation is priceless. For decades, companies have been trying to quantify the value of this intangible asset, eluding many a CEO. What is certain is the detrimental impact on sales when reputation is lost or damaged.

 Preserving and nurturing reputation should be undertaken at all costs, but the reality we all know too well is that company budgets only stretch so far.

 So, when it comes to PR and comms, how much should you be investing? That is the million-dollar question.

 Getting down to brass tacks: making cents of the numbers

The recommendations for PR budgeting are varied. A common suggestion is spending 1-2 cent of your revenue or 10-20 per cent of your profit. Another approach is to allocate a portion of marketing spend, anywhere between 6 and 20 per cent, depending on your industry.

 IMPACT’s minimum monthly retainers start at $12,500. The minimum budget for projects is $40,000 in professional fee. With over 25 years of experience, we know the level of effort required to achieve meaningful results for our clients.

 While there’s no hard and fast rule, the size of your required comms budget will depend on several factors, including, but not limited to:

• Whether you’re a B2B or B2C brand
• Company size
• The industry in which you operate
• What you classify as PR – is it just earned? Or does it extend to issues and crisis comms, event management, stakeholder relations, social media + influencer marketing?
• Campaign scope
• Short and long-term objectives; and the
• Resources and tools available to you.

Where companies are getting value from PR

Thanks to the evolving digital, marketing and communications landscapes, most agencies will offer a range of services beyond traditional earned media.

 As a full-service communications firm, IMPACT has seen many emerging trends across our quarter-century history.

Here’s are the in-demand services we’ve seen over the past 18 months.

• Audience profiling + research – IMPACT has seen a growing appetite for brands and companies wanting to better understand the drivers and barriers to audience engagement. The cost-of-living crisis has seen many shifts in consumer behaviours, values, and needs. Research empowers organisations to progress initiatives with the confidence they will resonate with their intended audiences.
• Earned media – Newsrooms may be shrinking, but growth in earned media remains strong. In IMPACT’s experience, it’s usually the first port of call for many organisations and a foundational service to nurture brand awareness and reputation.
• Content remains king – From catchy insta captions to thought-provoking bylines, content development continues to dominate the list in terms of PR needs. Whether you need a newsletter, social content, video or a podcast, the art of PR is and has always been in the storytelling. We are the wordsmiths, after all.
• Creator collaboration + influencer marketing – The ever-evolving social media landscape means influencer work is top of mind for brands for its access to customers, cost-effectiveness, and ability to facilitate genuine and authentic engagements and connections with customers.
• Issues + crisis communications – The Qantas, Optus and PwC PR disasters of recent times seem to have lit fires under many organisations wanting to avoid the same fate. The ‘break in case of emergency’ handbook is something companies never want to use but its effectiveness is only as good as the time and effort invested. When issues and crisis preparations are neglected, it shows, and reputation pays the ultimate price.
• Strategic narratives – Shifting consumer behaviours and expectations means that how you were communicating with your customers six to 12 months ago, may not be relevant today. As a result, organisations are increasingly seeking ways to maximise message cut-through by re-aligning their strategic narrative with their core objectives.
• Event management – Post pandemic, events are back in a big way. Not only are they an effective strategy to build brand awareness, engagement, loyalty, but they also support lead generation. In fact, the appetite for live, face-to-face opportunities to socialise and network is fuelling the plans for more than 80 per cent of the industry to increase events in 2025.

To find out more about PR spend or how The IMPACT Agency can support your business imperatives through our services, contact Nicole Webb at nicole@impactagency.com.au.