Professor Side’s “Not in the Textbooks” PR Course Vol. 4 | The Difference Between “PR” and “Advertising” (Part 2)

Hello, this is Professor Side.
Continuing from last time, our theme is PR and advertising.
Many students aspiring to enter these industries do not understand the difference between “PR firms” and “advertising agencies.” If you assume they are similar and do not study properly, you will not be accepted by either.

As explained last time, advertising is an activity where companies purchase TV commercial slots or space in newspapers and magazines. Companies that want to advertise pay television stations, newspapers, and magazine publishers, but they cannot pay directly. There is a requirement (rule) to go through advertising agencies authorized by the television stations, newspapers, and magazine publishers. For example, suppose a company wants to place a full-page advertisement in a newspaper. The cost is 10 million yen. The company pays 10 million yen to the advertising agency to place the advertisement. The advertising agency pays 8.5 million yen to the newspaper after deducting its commission (margin). The 1.5 million yen, which is 15%, becomes the advertising agency’s revenue. This is why advertising agencies are sometimes called advertising agents.

PR firms do not pay advertising fees to television stations, newspapers, or magazine publishers. The money received from companies is for activities aimed at maximizing news coverage (in the case of publicity activities). Therefore, compared to advertising, it is generally possible to be featured in TV programs, newspaper articles, and magazine articles at a much lower cost. However, this does not mean that PR alone is sufficient—”advertising and PR are two wheels” and the balance between them is important.

Furthermore, being featured as news is not guaranteed. If news of higher value than what was planned occurs—such as an earthquake, typhoon, or a major celebrity’s surprise marriage announcement—the broadcast or publication will be canceled.