Fee setting in public relations consultancies: A study of consultancy and client views of current practice in the UK

Abstract

Debate on evaluation of public relations has moved on to questions of value. How can value be placed on public relations services, and – practically – how can realistic fee levels be established for these services? These questions led to the study by the UK’s Public Relations Consultants Association reported in this paper. The study, of consultancy fee‐setting practices, and of client understanding of these practices, found that – in the UK – fee setting is imprecise. Fees are set according to a variety of rules. Rules may be set aside to win the opportunity to provide service, and overservicing – providing more service than budgeted for – is widespread. The study makes recommendations for introducing more order into fee setting, and suggests approaches to answering questions about the value of public relations services.