AI can replace your PR agency for less money? Sorry, but the maths doesn't work
There’s a bold new sales pitch doing the rounds in the PR industry: ditch your agency, buy an AI platform, and get the same results for a fraction of the cost. It sounds fantastic, except for one rather inconvenient problem.
The maths ain’t mathing.
I recently listened to Tim Burrowes’ interview with Barney Chunn on Mumbrella’s The Unmakers podcast, where Chunn made the case for his AI platform Drumbeat as an alternative to traditional PR agencies.
Enjoying Mumbrella? Sign up for our free daily newsletter.
As someone who has spent decades working on both sides of the media fence, first as a journalist and now running a global B2B technology PR agency, I found the conversation particularly interesting.
And let me be clear. I’m a huge advocate for AI. We’re actively embracing it across our agency, and I believe it’s fundamentally transforming how PR operates. But the idea that buying an AI platform automatically makes your PR function cheaper, more effective or commercially superior? I’m not buying it.
Let’s crunch the numbers
Imagine you’re a mid-sized technology business spending around $10,000 a month on a PR agency, $120,000 a year.
Along comes an AI platform promising to automate much of your PR activity. You start wondering whether you could bring your PR function in-house, save a fortune, and get similar results.
But let’s look at what that transition might actually cost.
First, there’s the AI platform itself. Let’s assume an illustrative annual subscription of $20,000. You’ll need someone to run it – and not just anyone.
You’ll need an experienced PR professional who understands media strategy, brand positioning, editorial judgement, stakeholder management and reputational risk; who can assess AI-generated outputs, manage journalists, identify opportunities, and take responsibility when things go wrong. That’s another $80-$100,000 each year, before you factor in superannuation and other employment costs.
Then come the supporting tools and services.
Media databases, monitoring and analysis, content production, specialist communications support. Potentially, media partnerships, event management, and other campaign costs. Depending........
