Spending on PR and marketing was significantly curtailed in the immediate aftermath of the September 11 attacks, causing countless layoffs throughout the PR field. More than
three years later, however, many PR executives say the industry has turned a difficult corner and is bracing for a comeback. Unless they know you personally, of course, every PR
pro is going to tell you that things have been rolling right along. But a recent analysis of the industry by 40-year PR veteran Alan Caruba says otherwise.
Caruba, a sole PR practitioner based in South Orange, N.J., whose clients include trade associations and think tanks that he will not name, surveyed more than 300 PR agencies
in New York, New Jersey and Washington, D.C., in November, to get a read on whether the overall level of PR activity had improved since 9-11. His conclusion: PR cuts have
severely affected many smaller- to mid-size PR operations, particularly those focused on just one practice. "There's no question that some agencies are doing very well," he says.
"But the industry in general continues to suffer from a series of blows and downturns." Indeed, Caruba says it is difficult to determine the full extent of the industry's losses
because the overwhelming majority of PR firms do not report earnings.
Caruba says trade associations in particular, have taken it on the chin since 9-11 and are "only now beginning to feel the effects of abandoning aggressive consumer
communications programs."
Yet even before the 9-11 attacks, Caruba adds, the PR profession was floundering. "It's taking the industry too long to figure out where it is most effective," he says. "The
problem is the increasing amount of media outlets and deciding where to focus the client's budget." Perhaps a more fundamental problem for PR is bringing real measurement to the
table, which corporate America demands. And that's the rub. "The clients look to the bottom line and ROI, but PR by its very nature cannot give measurable results," says Caruba.
"PR is a creative art form, not a science, and anybody who thinks it is a science is fooling themselves."
Despite his prognosis on the state of PR, Caruba is still a big believer. "PR is an essential element in selling goods, services or ideas," he says. "The profession needs to
make a much better case for the need for PR, whether it's for a national client or a local firm."
Contact: Alan Caruba, 973.763.6392, [email protected]
Go Figure
1 million-plus Number of editors and producers who have left their jobs, shifted positions, or changed their contact information since January
1.4 million-plus Number of changes made to Bacon's media database each year
30,000 Number of changes to the database each week
300 Number of new media outlets added each week, including publications, broadcast stations and programs, and Web sites
Source: Bacon's Information, November 2004.
Contact: Ann Ertsas, 312.986. 4977, [email protected]