PR agencies are behind the curve in their exploitation of the Internet, compared to their peers in other communications disciplines such as advertising and direct marketing,
according to a recent study conducted on behalf of the Council of PR Firms by IMT Strategies, the e-business consulting arm of the Meta Group.
Although corporate clients are looking for online leadership, few are finding it in PR agency circles today, the study reports. Most PR shops view the Web more as a tactical
tool thana strategic one, and feel no immediate pressure to change their competencies. IMT 's analysis is the result of in-depth interviews with 100 "new economy" analysts,
customers, media representatives and communications firm heads. Study findings were presented at the Council of PR Firms' annual meeting Nov. 9 in New York.
The analysis is particularly alarming, given that corporate clients rely heavily on their PR agencies for guidance in navigating and leveraging the Internet as a communications
medium. When asked to name the "value propositions that will drive business for the PR industry in the next three years," client respondents in the study cited traditional media
relations and strategic consulting as their top two priorities, followed by "online media relations" and "overall Internet communications strategy," respectively.
The continued bull market and 32% increase in overall agency billings this year has undoubtedly contributed to PR firms' complacency, the report notes, quoting one Web
marketing consultant as saying, "Many agencies have an arrogance because they turn down nine out of 10 companies looking for representation. But that's not because they're so
good. It's because of the economy. They need to get off their high horse and demonstrate results."
PR firms' failure to adapt more quickly isn't simply a side effect of bravado, however. As an industry, agencies are disadvantaged by a small capital base. (In a Nov. 8
speech to Council members, outgoing Council chairman David Drobis noted that PR firms' collective $4 billion in revenues constitute less than half the size of Arthur Andersen
alone.)
Furthermore, PR agencies suffer from slim pickings among technology vendors. The study estimates that roughly 20 vendors dominate the Internet PR market (offering services
such as online media tracking/analysis, relationship management and news distribution) while by comparison, the email marketing space, a sub-segment of direct marketing, already
enjoys more than 100 technology vendors.
Nevertheless, the study contends that PR agencies' continued attempts to shove linear message delivery models into the networked paradigm of the Web are putting agencies at a
distinct disadvantage. The traditional message chain of client-to-agency-to-media-to-customer no longer applies in an unfiltered environment in which clients can speak directly
to their stakeholders and stakeholders can speak directly with each other online. Yet agency attitudes indicate a reluctance to change. When IMT Strategies asked agency leaders
to describe the "biggest impacts the Internet was having on PR," respondents described more obstacles than opportunities, citing barriers such as shorter cycle times and media
clutter more readily than opportunities, such as the ability to target specific audiences, or to bypass the news media.
Using the IMT recommendations as a blueprint for change, the Council of PR Firms plans to offer a series of forums nationwide to explore issues such as: how PR counselors can
identify and align themselves with credible/influential online partners; how to extract value from the sea of information now available on the Web; and how to redefine the PR role
from "gatekeeper to gateway" of information.
"Unless we turn our businesses into e-businesses, we are going to go out of business," Drobis told attendees at the first forum in New York. "We need to be concerned that we
as an industry are missing that boat."
(Council of PR Firms, 877/PR-FIRMS, http://www.prfirms.org; IMT Strategies, 877/566-7744, http://www.imtstrategies.com)
New e-Agency Services
The Council of PR Firms has determined that PR agencies will need to master four key competencies in order to remain relevant in the new economy:
1. Online constituent intelligence - understanding and tracking how key audiences behave online.
2. Communications architecture and editing - strategically shepherding the company's online voice, tone, dialog and messaging strategies.
3. Dialog facilitation and community building - fostering and shaping online discussions as a means of rallying coalitions, shoring up constituent relationships and
responding in crisis situations.
4. Interactive PR tools and strategies - engaging online discussion communities, data mining e-media for trends and developing custom communications platforms, resources
and events.