Having surveyed 475 individuals, both PR agencies and clients, between July and 13th August 2024, the research found 24% of PR respondents strongly agree that budget transparency is a major challenge, and 47% agree with this sentiment, making it a key pain point for 71% of the total sample.

It said: “20% remain neutral on the subject, which could suggest that some clients do provide adequate budget information, or that these respondents are more accustomed to working with undefined budgets.”

But the report suggested that the 8% that disagree and 1% that strongly disagree may be “clients or organisations that intentionally maintain budget flexibility during pitches to assess the agency’s creative and strategic thinking without constraints”.

Mark Stuart, director at PR firm Battenhall: “First and foremost, there’s no need to fear discussions around budget. It’s vital to be honest and transparent with any potential client, and engaging in this topic in the early stages will facilitate easier conversations in the future. Setting realistic expectations of outputs and outcomes will avoid falling into the trap of under- or overservicing in the future, which can lead to disappointment or frustration on both sides.

“When pitching, we often prepare several budget options to provide maximum flexibility for the brand, and provide very detailed breakdowns of each individual element in the scope of work to ensure there is no ambiguity over what will and won't be covered in the retainer or project.

“At Battenhall, it's important that we provide visibility of our team's time and outputs once we start work to ensure there are no surprises. We share reconciled WIP documents and regularly check in with clients on how we can use our time most effectively and adapt to their needs. Through this transparency, we build trusted relationships – which is ultimately the key to any successful partnership.”

Ben Smith, strategy director at PR firm Wildfire: “Dealing with the B word starts at the lead qualification stage. If the budget hasn’t been clearly stated in the brief, you need to make it your first port of call when you follow up with the prospect.

“You need to know for certain that the client has a specific budget in mind right from the start – and ideally a defined start date/engagement period – so you know the budget is secured internally. If the prospect is still unwilling to show their hand on the budget, then show yours and be transparent on your minimum or your average fees. You need to know whether you are both, at least roughly, on the same page before you even think about your response to the brief. Finally, make sure you are engaged with the ultimate budget holder/decision maker, whether that’s the CMO or the head of comms.

“If the budget is clear from the start, the decision maker has signed it off, and there is a specific period to use that budget in their P&L, then you have done everything you can to head the issue off at the pass.”

Amelia Clark, CEO and co-founder of PR firm Capture Communications: “With marketing budgets increasingly under scrutiny and costs on the rise, it’s important to take the time to really understand the client’s real needs before heading into a pitch.

“Over promising and under delivering is something that has historically set PR agencies up for failure, therefore budget transparency is key from the offset to help manage expected outputs. As an agency, we ensure to clearly communicate what’s included within a retained agency fee vs additional costs for wider activity that sit outside of this such as working with brand ambassadors, paid influencers, executing activations or sampling opportunities.

“Alongside this, a value analysis of impact and outcomes is beneficial to offer a clear understanding of the likely/potential return on investment. Then when the inevitable conversation around cutting happens, this can be done with precision and confidence, not gut feel.

“As PRs, it’s our responsibility to guide our clients, existing or prospective, on how to make the budget work harder, leading to the highest return on investment to meet business and brand objectives.”

Richard Bagnall, co-founder at CommsClarity Consulting: “Budget transparency from clients is essential for successful partnerships, especially in the pitch process. When clients are open about their budget constraints and objectives, it enables agencies to tailor proposals more effectively and focus on tactics that align with both the available resources and measurable objectives.

“By setting a clear financial framework at the outset, clients can help shift the conversation from tactics and activity to desired outcomes, from PR as a cost centre to PR as a value generator. This ensures agencies can focus their responses on areas of work where they will deliver the most impact.

“This transparency empowers both sides to approach the project strategically, linking budget decisions to anticipated outcomes and building trust through a shared understanding of expectations and results.”

Rebecca Broomfield, director, consumer at PR firm Speed Communications: “Budget blind pitch processes are my pet hate. Some clients believe that this approach will foster unrestrained creativity and flexibility from agencies. Instead, it often leads to disappointment.

“Without clear budget guidance, agencies present the full potential of a creative idea, showcasing its capacity across a multichannel strategy with diverse activations. While this may initially impress, clients frequently respond by asking how the same idea could be executed at a fraction of the cost, stripping away key elements and reducing impact with each cut. The result? An underwhelming execution that falls short of the original vision pitched.

“Then there’s the dreaded ‘gold, silver, and bronze’ budget request; a fundamentally flawed approach. It assumes that an idea's integrity can be preserved by simply adjusting execution elements to fit a lower tier. In reality, a gold budget may drive an entirely different strategy and creative direction than a bronze one. This oversimplification undermines success.

“Clear budget parameters from the outset are essential to align expectations and avoid disappointment. We work with clients to help them understand why budget transparency is so important to allow for a focused, fair, and efficient pitch process, ensuring that agency and client are working towards a shared, achievable vision for their PR.”