The latest update of the Bellwether Report, published today, shows that whilst marketing spend declined for the ninth quarter running, PR budgets saw a slower rate of decline in the final quarter of 2009 compared to the previous quarter – from 24.4% down to just 4%. The report also shows that the rate of budget trimming in the industry is at its slowest since the first quarter of 2008.

Whilst times are undoubtedly still tough, these results suggest the industry can be optimistic about the year ahead, with marketing spend predicted to increase in 2010.

For those in the PR industry, the report underlines the importance of providing a service that delivers strong results and offers value for money. Whilst the green shoots of recovery are perhaps starting to surface, the recession continues to hit people and businesses hard and there is no guarantee that the renewed optimism within the PR industry will be replicated elsewhere.

Despite these positive findings, the purse strings of the average UK business are still a lot tighter than they used to be when it comes to budgeting for PR and marketing campaigns, and many might well still opt for the cheapest option rather than best option in this climate.

For businesses tempted to engage the services of a PR agency, finding the balance between value and price can be tough. Before you leap on the cheapest option on the table, here are some questions to help put ‘value’ in perspective:

Is saving money worth the risk?

If a painter does a bad job, you can always get someone better in to make it as good as new. The risk involved in opting for the cheapest provider is relatively low. Not so in marketing, where the risk of damage is much greater.

Any PR work undertaken will reflect on both your product and your company as a whole, helping to determine their success or failure potentially well beyond the duration of the campaign.

Is the pricing of the service blinding you to the true value?

Some agencies might seem expensive, while others might seem cheap, but neither is necessarily an indication of the quality of the service they offer.

Look at each option on the table and consider the agency’s track record and exactly what they are offering first. Once you have a sense of the hierarchy of quality, compare this against the prices. Is the cheapest agency offering the lowest value? You might be surprised, but equally you might simply find proof of the old adage, “you get what you pay for.”

Can the potential return on investment justify a higher spend?

While larger companies tend to have a tried and tested formula for setting the budget around a product or service launch, many smaller firms will simply set their budget based on a combination of what they feel they can afford at the time, balanced against the mean cost put forward by competing providers.

When you have all of your quotes in front of you, assess the potential return from each proposed campaign. In many cases, getting value for money may mean spending more, but you will get a better return in terms of campaign reach, support and quality. Pound for pound, the value could be higher.

Put simply, when setting your marketing/PR budget this year, remember: you’re not just paying for the hours worked, you’re also paying for the contacts, the support, the experts and, most importantly, the results.