Professional Documents
Culture Documents
Nothing goes for free, so also effective PR, does not come cheaply. Certainty of programmes and sellable ideas invariably ease the task of costing
campaigns. An adequate budget is essential to achieving optimal results. The organisation must, therefore, benefit and get maximum returns from its
spending. Whether the PR Unit is given a particular budget to work with or asked to submit a proposal, a reasonable, reliable and achievable cost should be
made.
Once the objective of the programme, the audience, message, channels of communication and activities are identified, it is easier to make a realistic
budget. A realistic plan of action must be presented together with the cost of each activity. Unless a budget was once presented and succeeded, the need to
maintain, increase or decrease it should be related to the financial position and projects of the organisation.
The major areas of costing in PR include prints and production, exhibition, workshops and seminars, media briefings and conferences, advertising,
transportation, sponsorship, supplements and media coverage. Most activities can have fixed costs of expenses, including taxes and services but a
mandatory contingency not exceeding 15% of total cost must be added for any unexpected eventualities. This may be necessary because there is a clear
distinction between direct cost and indirect cost. For instance, a hall booked for an hour for press briefing may extend to three or more hours, while an
entertainment provision for the briefing of a number of journalists may witness additional attendance of some of them coming with their crews.
A good budgeting plan may address the problems, objective, public, strategy, media, message and anticipated result. There should also be a time frame for
each budgeted activity. But it must always be known that the budget estimate by an in-house PR departments must be slightly different from that of outside
consultants’. This may be so, since in-house practitioners will not consider such expenses on salaries and equipment, which may be at their disposal.
Sometimes, some programmes are better handled by the in-house or consultation on the demand of the non-specific aspects of the programme. For
instance, while a consultant may demand for a consultancy fee and hiring of equipment, the in-house may only request for cost of maintenance of such
equipment where available. It is expected that a well equipped in-house PR Unit must have such facilities as video, photo camera, public address system,
TV and Video Machine for viewing and editing, computer, Tel/Fax, E-mail and other relevant tools. But the consultants may need to charge for the hiring
or the use of such equipment, which may be additional burden to an ill-equipped PR department.
Consultancy fees vary from one firm to the other, depending on their reputation and size. Their charges could be based on hourly charges for executive
time. Monthly or yearly retainership could be charged for a programme that runs for a year. Some specific programmes, which are done on an ad- hoc
basis, also attract special fees based purely on the volume of work covered.
Whether it is in-house or consultancy, an acceptable and accountable mechanism should be put in place to monitor cost-effectiveness of the programme
which may allow adjustment for total success. An intelligent resource should be allocated by the management to implement the PR advice.
Consultancy Budget
The charges for consultancy services vary from one organisation to the other. But specifically for a long-time PR campaign, the considerations for the
budget include advisory fees which are charged after the firm has accepted the service. The consultants charge the expenses to cover the days or hours of
attending meetings, its research and the submission of the report. Another area is the implementation of the plan. Some in-house staff may take up this
stage unless if the consultant is given the responsibility of implementing the plan as it is recommended in the report submitted .
Operational costs for the real aspect of the programmes are stated and carried out. These may include the core PR activities such as issuance of press
release, media tour, photography and the use of equipment (fax, telephone, IT and courier services). Evaluation level is also important for the consultant to
monitor the success of the programme. It carries out secretariat assignment by opening file for press clips and sending media review to the clients.
The budgets for all the activities above are measured on man-hours or daily activities basis. A typical annual budget is illustrated below.
The cost value may come in different forms. It may be the cost of single or combination of production cost, travel expenses, hotel accommodation,
refreshments, man-hour and unit price of items and materials to be used. Some activities may be undertaken as often as required on a daily, weekly,
fortnightly, monthly, quarterly, biannually, or/and yearly basis. To convince the client in understanding the significant of the programme, technical jargons
should be avoided. Where necessary to disclose some technicalities, it should be attached as appendixes and or annexures.
In-house Budget
The in-house PR practitioner submits annual budget which, after consideration, the fund involved is released quarterly or monthly to the office to carry out
its activities. Some programmes which are periodical or exceptional and extraordinary are funded at the appropriate time. On the need, request may be
made from the approved budget estimate to take care of events and programmes as they unfold. The illustration below is a typical annual budget for a big
organisation that has large audiences. The proposals are in two parts. The first part is the budget defence, while the second part is the breakdown of the
Budget Defence
Publications
This is to cover the cost of production/publication of monthly bulletin, yearly handbook, quarterly magazine, seasonal cards and complimentary cards.
Corporate Items
This is required for the production/procurement of corporate items such as pocket diaries, executive diaries, calendars and address books. These items will
be used as presents or gifts to individuals and organisations as a form of reciprocation for promoting the organisational statues, as well as seek goodwill
Media Activities
The amount is needed for extensive media campaign and image building. These are in the areas of media chat/courtesy calls, press conference
hosting/entertainment, research, editing, publications of articles, video coverage editing & dubbing, photo coverage/album and entertainment for media
Equipment
The sum is required for the purchase of relevant equipment for the office such as photocopiers, cameras, consumables (video cassettes, films, albums, inks,
etc.) and maintenance and services of media equipment. The essence is to enhance the output of the PR Unit.
Advertisement
The amount is to cover expenses for the placement of adverts on issues that concern the organisation in the print and electronic media, and to also cover the
cost of documentaries and live events in the electronic media, including interviews, among others.
The fund is for providing the entertainment, materials and incidental expenses for the meetings of the editorial board.
Information Technology
In its drive to show a high level of integrity and commitment to the public, the unit should introduce a timely and efficient way of information
dissemination through modern and advance technology. To achieve this crucial goal, the development of a web site is imperative, where enquiries all over
the world are promptly responded to, through special media technique of a super highway. All publications and activities will be displayed in the web site
for the public to access. These will include press releases, feature articles and profiles of the management. It will also contain handbooks, magazines and
pictures of activities in specified pages on the Internet. The amount would therefore cover Web Site Development, E-mail Installation/Internet Connection,
Web Hosting, Domain Name Registration, Internet Usage Training and Technical Support/maintenance.
The amount is needed to keep personnel in the Unit up-to-date in the field of Public Relations and Information Technology. The areas include Training in
Financial Public Relations & Modern Media Techniques, Professional Seminars, Conferences &Workshops in media management and Annual Dues &
Budget Breakdown
Publications
Subtotal =
Corporate Items
Subtotal =
Media Activities
Subtotal
Equipment
Subtotal
Advertisements/Supplements
a. Newspaper Adverts/supplements Rate X Pages X 12month =
Subtotal =
Information Technology (IT)
a. Web Site Development =
c. Web Hosting =
Subtotal =
Human Resources Management
Subtotal =
Contingency
GRAND TOTAL =