AR spending rises from 28% to 35% of PR, says IDC

According to a B2B article, IDC’s 2007 survey of tech vendors’ marketing budgets showed that 6.3% of the budget goes on PR (down from 7.1%) and a further 2.2% on analyst relations (up from 2.0%). Of course the whole marketing budget is growing as marketing operations approaches take hold. Two numbers provides a vital benchmarking ratio for IT solution providers: on average spend on AR is equivalent to 35% of the media relations budget. Of course, that means subtracting AR from common definitions of PR: if AR and PR are added together at your firm, then the benchmark for AR was 26% of the total in 2007.

Of course these are averages: spending on AR is concentrated in firms selling high-value B2B contracts, and is rare in B2C and consumer technology markets. However, the dats represent a substantial 10% increase on AR’ share of the marketing budget from 2006. The AR/PR ratio remains quite a reliable benchmark against which to measure budgets.

Postscript: ten years later, in 2017, AR spend has risen to 44% of the media relations budget.

Duncan Chapple

Duncan Chapple is the preeminent consultant on optimising international analyst relations and the value created by analyst firms. As SageCircle research director, Chapple directs programs that assess and increase the business value of relationships with industry analysts and sourcing advisors.