How to Create a PR Budget [With Template]

Many small businesses may think that public relations is only for large corporations with big budgets, but PR can also be a great investment for small businesses.

PR helps build trust and credibility for small businesses. Through positive media coverage, press releases, and thought leadership pieces, small businesses can showcase their expertise and build a reputable image in the eyes of potential customers.

If you’re looking to build out your PR efforts, it can be difficult to know how much the project will cost and how to budget for it.

This article will dive into what goes into a PR budget and everything else you need to know to prevent overspending. 

Need help enhancing your business's public image? Search top PR agencies on Clutch. 

What Goes Into a PR Budget?

Maintaining and managing your business’s reputation can be complex. PR agencies offer a variety of services with the goal of building positive relationships with various stakeholders.

These services include:

• Crisis management: Crisis management refers to the process of handling and mitigating a sudden, unexpected event or situation that could potentially harm an organization's reputation. PR professionals can help alleviate the damage of a crisis by implementing the prepared plans and taking immediate action to address the crisis. This may involve activating an emergency response team, coordinating resources, and communicating with stakeholders.
• Corporate communications: Corporate communications is the strategic management of communication within an organization, both internally and externally. It encompasses developing and implementing communication strategies and tactics to effectively convey the organization's messages to various stakeholders, including employees, customers, investors, media, and the public.
• Investor relations: PR firms that manage communication between the company and its investors and shareholders. They can distribute financial reports, provide updates on what the organization is working on, and promote business performance.
• Public affairs: Public affairs is about influencing public policy. PR agencies strategically dispense information on the organization to gain trust from the public.
• Reputation management: Reputation management is about controlling and influencing people's perceptions and opinions on an organization. This includes monitoring what people are saying about the organization online and in the press. When needed, they will formulate a response to negative press and boost the organization’s public image with their own press releases.

While the cost of the PR services aren’t dependent on the type of PR services you need, this may impact how much work is being put into your project. For instance, companies that need support with investor relations and crisis management in addition to standard corporate communications will spend more than a small business looking to improve their visibility with reputation management.

Just as importantly, knowing what PR services your business needs may impact whether you want to hire internal PR efforts or need the support of an agency.  

How To Budget For Public Relations Services

1. Set PR Goals 
2. Establish Deliverables & OKRs
3. Set aside a certain amount for PR efforts 
4. Consider hiring a PR agency or consultant 
5. Factor in additional resources your PR team will need 

Set Goals

Some business leaders may not realize that when they invest in public relations, they need to set clear objectives in order for the project to be successful. These goals will drive your PR strategy and can greatly impact your project's cost.

These goals include enhancing brand visibility, growing thought leadership, increasing media coverage, strategic communications planning, and more.

Just like any project, these goals should be clear and measurable to make sure that all stakeholders are on the same page. Once you outline broader PR goals, you should be able to identify key results and performance metrics to help track your project.

With these goals in mind, companies can dive deeper into what resources they would need and how much it would cost to accomplish these objectives. 

Establish Deliverables & OKRs

Once you’ve established goals for your PR project, you will want to identify deliverables. Consider this as ‘how’ your business will meet its goals.

For example, a key result for a business looking to invest in crisis communication would be by solidifying a crisis communication plan with predefined protocols and messaging. However, Those looking to strengthen media relationships should set a goal such as increasing the number of media mentions by 25% in a given period.

Other deliverables can include

• Scheduling speaking engagements
• Providing expert commentary 
• Managing online reviews 
• Holding press conferences 
• Writing Press releases
• Supporting product launches 
• And much more!

The more deliverables your business requires, the more expensive it will be. By outlining the deliverables for your project, you can gain a better understanding of how much you will need to spend on the project. 

Set Aside a Set Amount for PR

The most important part of creating a branding budget is making sure you don’t overspend, but knowing how much to set aside is a challenge.

How much your business should spend depends on how big your business is and what PR services you plan to invest in. Larger businesses are likely to need more support for than smaller businesses

PR agencies offer a variety of pricing models for their clients, but the most popular is by hourly rate. Usually, PR companies charge between $100–$150 per hour for their services. So, the more PR work your business requires, the more expensive your project will be.

Companies spending more than a fair amount on PR should consider hiring an in-house team or keeping a PR agency on retainer. Companies that have a lot of PR needs may be able to save money this way, but only if their work warrants it.

Learn more about how much it costs to hire a PR agency in Clutch’s ‘PR Pricing Guide.’

Consider Hiring a PR Agency or Consultant 

Hiring an internal PR team can be expensive. Once companies consider salary, benefits, hiring costs, and training costs, the price may be too much for some businesses. Instead, companies can save money and gain access to top-notch PR professionals by hiring a PR agency or consultant.

In addition to being experts in their field, external PR agencies bring an impartial viewpoint and fresh perspective to a company's communication strategies.

They can offer valuable insights and creative ideas that may be overlooked by those within the organization. This objectivity can help in crafting effective messaging and positioning that resonates with the target audience.

Many PR agencies also have vast networks that can help them secure media placements that can improve your brand’s perceptions.  

Account for Additional Resources Your PR Team Will Need 

Whether you hire a PR team internally or externally, you may need to supply data, images, brand assets, and content to your PR team.

While most PR agencies will create assets they plan to release themselves, they will still need certain assets from your internal team.

They will use these assets to promote your business for various purposes. They may use them to create social media posts, write press releases and whitepapers, schedule interviews, and release statements using your brand assets.

To provide this information, companies require a team of writers, graphic designers, brand managers, and more.

Additionally, you may also need to account for additional costs like those associated with media placements or the cost to conduct surveys.

When you start your project, be sure to discuss the deliverables you expect and what is needed to get there so you can properly plan. 

PR Budget Template

Download the branding budget template.

What Factors Impact the Cost of Hiring a PR Agency? 

When hiring a PR agency, you may spend anywhere from a few thousand dollars to tens of thousands of dollars. Whether your project is on the high or low end of that scale depends largely on the scope of the project and how involved the PR team is in your promotional efforts.

To accurately estimate the cost of your project consider these factors:

• Deliverables
• Expertise and experience 
• Agency Size 
• Geographic location

Be sure to include all of these factors in your PR budget.

Public Perception Can Make or Break Your Business; Here’s How to Create a Budget When Hiring a PR Agency

Public relations professionals — whether they’re in-house or outsourced partners — have experience building their client’s brand image and improving perception.

If your company is interested in investing in PR, you must first create a budget for your project. Though costs may vary, understanding your project goals and how you will accomplish them will help you estimate how much you need to spend on PR to be successful.

To accurately estimate your project costs, consider everything your PR team will need. From providing assets your partners need to the cost of media placements and more, be sure to include them in the budget.

Also consider the size of the team you need and where they’re located to get a better understanding of the total cost of your project.     
 

About the Author

Hannah Hicklen Content Marketing Manager at Clutch

Hannah Hicklen is a content marketing manager who focuses on creating newsworthy content around tech services, such as software and web development, AI, and cybersecurity. With a background in SEO and editorial content, she now specializes in creating multi-channel marketing strategies that drive engagement, build brand authority, and generate high-quality leads. Hannah leverages data-driven insights and industry trends to craft compelling narratives that resonate with technical and non-technical audiences alike. 

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