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About expense

The number of the publications was all right!! But how much did it cost and what was the received response?
Beware! The systems for which they charge the fee
Beware about the advertising cost conversion!

eware! The systems for which they charge the fee

  • We are going to give an explanation about the notion of the cost of dealing with a PR Company. When you make a contract with a PR company, the contract term becomes long in the many cases (retainer). This is because those companies must know the information of the client very well and support the client by according to its nature with PR.
  • The number of staff whom the PR' company place for the task is different according to the scale and the case of the client. Please look at figure 1. The PR companies usually rank their own agents in their own right, and they decide their hourly wage according to the ranking. In other words, when each of them woks for a client in this system which is shown in the figure 1, PR activities will cost a little over 1,300,000 yen for one month.
  • For matters that require attention, this amount of money is only for "their action for the PR activities". In other words, the expense to your company is for "the use of the PR staff". The fee will be charged, regardless of whether they have succeeded to get media exposure or not while your company was aiming to promote PR through the media. We strongly recommend finding and having a contract with a PR company which has a strong solution power for the PR purpose, so as not to waste money on PR in your company. Please compare each PR company before your company decides on one.
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Beware about the advertising cost conversion!

  • There is a thing called "the advertising cost conversion". It is a method which shows the achievement of the PR activities of these companies. There is not any concrete method which measures the effect of the PR at the present. Therefore, there is no clear definition, even in the American and European countries where PR companies are quite advanced. Therefore, it is a technique that is used to make the result of the PR activities visible.
  • Please look at the figure 2. The advertisement cost is clearly decided by how much it costs for 30 seconds or how much it is for a page by each Media. The PR companies decide the price (result of the activity), by replacing the spaces and times which they could have in the media exposure into "advertisement costs" which is based on their fee structure. It is called "advertising cost conversion".
  • However you need to pay attention here. Generally speaking, any popular media puts their prices for advertising high because you can expect a larger response at the time of the media exposure. In other words, as you can see from figure 2, we may say if an expensive "advertising cost conversion" continues, that the PR' activity is successful. However, in the cases where the number of media exposure is enormous and the grand total becomes expensive, you need to be careful. The advertising costs are charged for the unpopular media as well. Even if a lot of information was exposed in the minor media, we may say that the responses that your company expects are limited. Because of "the low popularity = no end user = advertising cost is cheap". We need to pay attention to "a grand total" of the advertising cost conversion.
  • The advertising cost conversion system which is tricky
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