Survey Shows Pay-For-Placement PR Model is Expanding Number of Companies Outsourcing PR Services

Share Article

According to a recent survey, the public relations “pay-for-placement” business model seems to be expanding the pool of PR agency clients, rather than taking significant numbers of clients away from existing agencies. By far, the highest rated reason respondents chose a pay-for-placement model was the ability to pay for results vs. an agency’s time (51.6% of respondents), followed by the ability to decline a media opportunity without payment (19.4%) and no minimum retainer (8.1%). Other reasons included the ability to specialize by media type, measurement is clearer, their priority is media relations and they don’t want to pay for other services, no time commitment required, and agency takes on the risk.

According to a recent survey, the public relations “pay-for-placement” business model seems to be expanding the pool of PR agency clients, rather than taking significant numbers of clients away from existing agencies, according to strategic communications consulting firm CoolWire, which conducted the survey.

CoolWire surveyed clients of PayPerClip, a pay-for-placement PR firm that commissioned the survey of clients who have signed with the agency since it was launched in June 2004. Of the 48 companies that responded, 73.8% said they did PR in-house or did not do PR, when asked what method they previously relied on most for meeting PR needs. Nearly 14.3% used a traditional firm and 11.9% used freelancers or other options.

“The pay-for-placement model – at least the one developed by PayPerClip – seems to be making PR accessible to a greater number of businesses, as well as providing an outsourced alternative for many companies who have already incorporated PR into their marketing programs,” said Stuart M. Dambrot, a principal at CoolWire.

By far, the highest rated reason respondents chose a pay-for-placement model was the ability to pay for results vs. an agency’s time (51.6% of respondents), followed by the ability to decline a media opportunity without payment (19.4%) and no minimum retainer (8.1%). Other reasons included the ability to specialize by media type, measurement is clearer, their priority is media relations and they don’t want to pay for other services, no time commitment required, and agency takes on the risk.

In rating the importance of their reasons for selecting a pay-for-placement agency, respondents ranked the following as high or essential:

  • payment for results vs. agency’s time    17.8%
  • ability to decline a media opportunity 15.0%
  • no time commitment required 12.7%
  • priority is media relations and don’t want 12.2%

to pay for other services

  • agency takes on the risk 9.4%
  • no minimum retainer 9.4%
  • measurement is more clear 9.4%
  • ability to specialize by media type 8.0%
  • no reason not to try it 6.1%

Over 82% of respondents prefer the pay-for-placement option (42.3%) or a pay-for-placement agency plus in-house PR (40.4%). Other options included the traditional retainer-based model (0%), conducting PR in-house (5.8%), and the traditional and pay-for-placement models combined (11.5%).

“This group of early adopters would be expected to prefer the pay-for-placement model,” said Dambrot, “but it’s surprising that none of those who have tried pay-for-placement preferred the traditional model.”

For more information, visit PayPerClipPR.com.

About CoolWire

CoolWire is a strategic communications consulting firm with offices in New York and San Francisco. Principal Stuart M. Dambrot has over a decade of experience in providing Advertising, Marketing, PR and Operations Management services to technology-focused companies and agencies, including Adaptec, Cadence Design, Datapro Research, GreyDirect, Microsoft, NTT DoCoMo USA Labs, Sun Microsystems, Sybase, and Tribeca Productions. For more information, email sdambrot@coolwire.net.

About PayPerClip

PayPerClip is a pay-for-placement public relations firm that delivers media results for businesses, trade associations, lobbying organizations and non-profits, and to other PR, marketing and advertising agencies. PayPerClip provides media placements with a Risk-Free Plus promise: clients pay only for stories placed in media categories they select, and satisfaction with results is guaranteed. PayPerClip has expanded the market for PR agencies by creating a service model that makes agency support accessible to businesses that have previously not used a PR firm. Additional information is available at PayPerClipPR.com.

# # #

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Ann Stephenson
STEPHENSON GROUP
908-439-3660
Email >