After stalling for the last few years because of a depleted economy and diminishing marketing budgets, the PR industry may be finally ready to step on the gas. But living in
such uncertain times, both corporate and agency execs best know where the emergency brake is. Still, PR pros appear to be less spooked about business prospects than they were even
a year ago.
In an exclusive study conducted by PR NEWS and the Counselors Academy, respondents said they were encouraged by a variety of factors trending upward. Perhaps most important,
65% of respondents experienced an increase in new business activity in 2004 compared with 2003 and more than 40% expect their PR budgets to be higher in 2005 compared with 2004.
This is in stark contrast to a similar survey we conducted in October 2003, when 20% of respondents said '04 revenues would be flat or less compared with 2003 and just 2.5% said
revenues would up more than 15% during the same period. (See PR NEWS, Oct. 27, 2003.) The latest survey, conducted throughout a two-week period in late July, generated responses
from 72 members of the Counselors Academy and 365 PR NEWS subscribers, for a total of 437 responses.
One of the more surprising aspects of the study concerned procurement. Despite the hue and cry about procurement officers playing a bigger (and more intrusive) role in agency-
client relations, 80% of respondents said they have not seen an increase in the number of potential clients who demand detailed financial information on the PR agency before
entering into a contract. Less of a mystery is the hot growth areas for PR. For the answers -- as well as the overall results of the study -- please see below.
| 1. How do you see the current state of the economy as compared to this time in 2003? |
|
Response Percent |
| Better |
61% |
| Worse |
13.10% |
| The Same |
25.60% |
|
2. Is there a particular need or service clients are asking for?*
|
|
Response Percent |
| No |
58.60% |
| Yes |
70.10% |
|
*Most-Requested Agency Services from Clients
- More intense marketing support
- Corporate reputation and transparency management
- services
- Reputation/image enhancement and promotion
- Value add; ROI, on demand
- Crisis Management
- Make their Web sites better
- Increase in sensitivity to conservative values and politics
- Employing a "reactive" strategy
- More cooperation and coordination with other advertising and marketing disciplines
- Media Relations
|
|
3. Did you see an increase/decrease/no change in new business activity in over 2003?
|
|
Response Percent |
| Increase |
65.60% |
| Decrease |
13.30% |
| No Change |
21.10% |
| 4. Are you seeing an increase in the number of companies utilizing written requests for proposals over the past year? |
|
Response Percent |
| Yes |
44.70% |
| No |
55.30% |
| 5. Has your new business conversion rate in 2004 (new business opportunities/business won) increased/decreased/stayed the same vs. 2003? |
|
Response Percent |
| Increase |
46.30% |
| Decrease |
11.80% |
| No Change |
41.90% |
6. Have you seen an increase in the number of potential clients who demand detailed financial information on your firm prior to entering into a contract with you? (profit
margins, overhead costs, detailed tax information for three or more years) This question relates to No. 7. |
|
Response Percent |
| Yes |
19.30% |
| No |
80.70% |
| 7. If yes, are you willing to supply such information to prospects? |
|
Response Percent |
| Yes |
50.00% |
| No |
44.90% |
| 8. In what sectors, if any, did you experience the most positive growth in 2004 as of 6/30/04? Pick your top three. |
|
Response Percent |
| Healthcare |
34.10% |
| Consumer Products & Services |
31.20% |
| Technology |
25% |
| Professional Services |
25.70% |
| Government/Not-for-Profit |
32.50% |
| Industrial Products & Services |
12.20% |
| Financial services |
19.30% |
| Crisis |
22.00% |
| Real Estate |
11.10% |
| Cause-related |
17.70% |
| 9. Based on discussions that you have had with clients and prospects, do you expect PR budgets to be higher/lower/same in 2005? |
|
Response Percent |
| Higher |
41.70% |
| Lower |
8.00% |
| Same |
50.40% |
| 10. What size is your firm? |
|
Response Percent |
| More than $50 million |
7.30% |
| $10-50 million |
8.60% |
| $3-10 million |
10.80% |
| $1-3 million |
22.40% |
| Less than $1 million |
50.90% |
Methodology: Leadership Pulse is conducted for the Counselors Academy of PRSA and PR NEWS by SurveyMonkey, an online survey methodology research organization. Surveys are
conducted periodically via push e-mail and Web site questionnaire among a sample size of 600 owners, partners, and senior executives of major PR firms nationwide.
