The bedrock of any company’s business strategy is public relations. Good PR can shape how your business is perceived in the media and by the public. It can also drive new business and engagement with your business. However, many business leaders may wonder what the right approach to PR is: an in-house PR team or hiring an outside public relations agency.
It is not a decision to be made lightly. One must balance the cost, pros, and cons of each and consider the business’s long-term media and marketing strategies. Both options bring benefits and challenges to the table, with advantages and disadvantages that could radically affect a company’s bottom line.
Here, we explore the question of the detailed PR agency vs. the in-house PR team. This guide will help you make an informed decision based on your unique organizational needs.
PR firm vs in-house PR team costs
No matter the size of your business, you must weigh the costs and benefits of each option when deciding between hiring an outside PR firm vs. in-house teams dedicated to your business.
With an in-house team, you can count on fixed costs. These include the salaries for the PR professionals that you hire, plus additional costs for their benefits, bonuses, taxes, and retirement plans if you choose to offer those. Leaders will also want to factor in costs for hiring, training, and turnover. Companies also have to factor in the cost of software that the PR professionals need to use, and ongoing professional development costs as the PR industry evolves. Lastly, companies need to factor in the cost of scaling their in-house PR teams in case of a large campaign or a crisis management situation.
If a company is considering hiring an outside PR firm to handle its media needs, there are different considerations. Hiring a PR agency requires a monthly retainer fee, which can vary anywhere from $1000 to five figures. PR agencies give their clients access to the tools and software programs necessary for services, and this is included in the retainer cost, which can save the company money. Hiring an agency also offers clients a wide range of flexibility, from scaling up to handle larger campaigns to pivoting to help a client in a crisis situation.
The benefits and challenges of different PR services
Both in-house PR teams and PR agencies have benefits for businesses. With an in-house team, you have a group of professionals who are immersed in your brand day in and day out. This can enable unique, highly tailored messaging that aligns with a company’s mission and values. Being in-house can also be a benefit in a crisis because the team can react quickly when things go awry.
In-house teams are also highly focused employees. While PR agencies handle multiple clients from a variety of industries, in-house teams are dedicated to your company and your company only.
For companies that will have long-term PR needs, it may benefit them more and be more cost-effective to have an in-house team that can react to issues on a dime and handle long-term campaigns.
On the other hand, PR agencies can offer a level of professional experience and specialization that can sometimes be challenging to come by within in-house teams. They have larger teams that include PR strategists with diverse skills, they have experience with a multitude of media situations, and they bring media contacts to the table. They may excel at large-scale campaigns, crafting a perfect pitch or press release, and have deep experience with PR activities such as crisis communications. An outside PR team can also bring a fresh perspective to your organization, which can be a benefit if you are unveiling a new product or service or launching a new brand.
Studies show that PR agencies can offer better top-tier media coverage and that companies that hire outside PR firms saw an average revenue increase of 41%, compared to a 17% increase gained by in-house PR companies.
For all of the benefits both options bring, there are also challenges. In-house PR teams can be met with limited resources, budgets, and a creative block that can sometimes come when one is too familiar with one singular brand.
Likewise, PR agencies face challenges such as a gap in deep knowledge of one singular brand and having to handle multiple clients at a time.
Companies need to weigh their budgets, ultimate goals, and brand needs when deciding between an in-house PR agency and hiring a corporate PR firm for media relations. Companies may even choose a hybrid approach, utilizing both hired PR employees and an outside corporate firm. Whatever a company decides, it must consider what is the most cost-effective solution that aligns best with its media strategies.
