I like them both and it depends on the market. B2B or B2C. You can spend alot in either case and get nothing. I would consider a little of both, give them each a budget and see what kind of proposals you get. It can also be the same company who does PR and advertising. Get a Propsal edit

Post more details, and I'd be happy to opine :) edit

I have always had good luck working with PR firms. Be sure to check their references and previous work. I think potential customers respond better to well crafted PR campaigns than advertisements. edit

do you recommend anyone? edit

well pr captures the audience on many distinct level. If you are looking to build brand loyalty and long term growth, I would invest a more percentage of the funds into pr, but heres the thing you pay directly for advertisement slots in magazines, radio, etc. PR can be free if you develop a good enough strategy. Examples include writing in the local papers (Pertain to your business), local government projects, and anything throughout the community. This can all be free publicity if you use it right. Pr is more about time than money (In this case money is not time, because you arent spending funds directly). get with your employees and staff to discuss this. Because your network = your networth if u know what i mean. ;-) edit

It depends on the market you are trying to connect with, but PR gives some great third party validation that you don't get with advertising. Also, some of the event marketing plans that a lot of PR agencies are coming up with really help the market/ consumer to retain the information and experience. Also, consider hiring an intern for PR. College students are young and creative. This might be a good way to get some ideas and offer some professional experience. edit

I own an online dating site called ezdate123.... My partner and I have tried just about every means of advertising and the best bang for the buck would be pay per click on Google...Now free is better if you can get it. News coverage, word of mouth etc. But if you have to pay and you have an online business then Google is the way to go... if you have brick and mortar then I would be open to someone elses experiences....I hope this helps. edit

I hold a large share of dotcom company that used google adwords. best bang for the buck its not. was maybe three yrs. ago now not so much. maybe for dating sites but not a lot of other niches.

htmlfox what kind of numbers you pulling in and converting to subscribers? edit

Generally, I agree that PR and Advertising work best together. Depending on your company and product, you might be better off weighting one way or another. Let me say this: to get the most out of a PR company, you will want to be clear on your story and what is unique about it. Without something unique to talk about, even the best PR companies have a hard time. PR companies may be very good at giving you ways to develop a story or create one.
Advertising firms offer a wide array of services everything from simple graphic design to complete marketing planning of print, air, web and event marketing. Again, depending on your product and experience, you may wish to weight more heavily in one area or another. You should know have a clear idea as to how you want your product viewed in the market place, and who your customer is and where they are before you start working with agencies.
Either way - be sure you know what you are looking for and ask smart questions of either and get at least 3 proposals from each. Some agencies offer both services, and that has both its advantages and disadvantages, again, depending on your goal. edit