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8/3/2019 ICCOWR2011 Return Growth Final
1/12
2011
InternationalCommunications
ConsultancyOrganisation
May2011
ICCO World Report:
A Return to Growth
8/3/2019 ICCOWR2011 Return Growth Final
2/12
ICCOWorldReport2011
A Return to Growth
ICCOWorldReport2011
I. GrowingstrongerA. TheUSandUKB. EuropeC. TheBRICsD.
Australia
II. ThemediaenvironmentIII. The(continued)riseofdigitalIV. ...andtheroleofsocialmediaV. PRvs.therestVI. ThetalentpoolVII.
Challenges
to
success
2
VIII. Summary
8/3/2019 ICCOWR2011 Return Growth Final
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A Return to Growth
ICCOWorldReport2011
3
2010marked thebeginningofa recoveryfor theglobaleconomy,andpublic relationsconsultancy
faredevenbetter.Afterweatheringthestorm in2009,PRpushedaheadtomoderateordouble
digitgrowth
in
most
countries,
gaining
share
of
marketing
spend
against
other
disciplines
along
the
way.Withveryfewexceptions, thisyearsWorldReport shows that2010wasayearofmounting
confidencebothforpublicrelationsconsultantsandtheirclients.
2011 isproving evenmore robustforPR,with strongfirstquarter resultsacrossgeographiesand
plentyofoptimismfortherestoftheyear.
I. GrowingstrongerFollowing
some
painful
market
contractions
and
subdued
results
in
2008
and
2009,
public
relations
consultants were able to focus on growing their businesses again in 2010. As client budgets
stabilised,PRfounditselfbetterpositionedtocompete.Consultanciesintougheconomieshadbeen
forced to adopt painful measures (cutting staff and tight fiscal management) so that those that
survivedemergedmoreefficientand,inmanycases,moreprofitable.
A. TheUSandUKThe two largest markets for public relations the US and the UK both rebounded from a five
percent decline in 2009 to record a doubledigit recovery in 2010. US consultancies posted an
average11%increaseinoverallfeerevenue,whiletheUKsawa13%increase.
For UK firms, this was underlined by a remarkable 30% estimated increase in profitability during
2010.The improvementcanbeattributedmainlytolowerstaffcosts(followingthepreviousyears
redundancies,plushigherstaffutilisationlevels),reducedsuppliercostsandfewerexceptionalcosts
forthemanyconsultanciesthatmaderedundancypaymentsin2009.
Public sector work in the UK dramatically decreased in 2010 on the back of deep government
spendingcuts,buttheprivatesector,havingalreadycurtailedspendinginthepreviousyear,began
toinvestagainandgeneratenewrevenuesforconsultancies.Consumermarketingcommunications
provedespeciallyattractive,accountingforapproximatelyonethirdofPRconsultancyfees.
ConsumercommunicationsalsohelpedgrowtheconsultancyindustryintheUS,aidedbyincreasing
attentiontosocialmediaandsomeregulatorychangesfromWashingtonforexample,therevised
guidelinesononlineendorsementsandtestimonials,financialregulatoryreformandnewfoodand
drug labelling directives1. Healthcare, corporate and crisis communications further contributed to
thegrowthofthebusiness,whileoverallprofitabilityofUSconsultanciesimproved.
1From
the
US
Federal
Trade
Commission,
Securities
Exchange
Commission
and
Food
&
Drug
Administration
respectively;clientsparticularlyfromheavilyregulatedindustriesoftenseekthehelpofPRprofessionalsin
dealingwithfederalagenciesandimplementingregulatoryreform
8/3/2019 ICCOWR2011 Return Growth Final
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ICCOWorldReport2011
B. EuropeAcross Europe, the picture was similarly
encouraging. Although Western European
countries generally saw more modest growth
or merely stable conditions (from 1% to
+3.5%), the Nordics and Central and Eastern
European countries fared better, with growth
rangingfrom5to12%fortheyear.
Exceptionstothiswere:
Belgium, which outperformed itsneighbourswith10%growth,drivenbyEU
activityaroundpublicaffairs andcrisisand
issuesmanagementinparticular;
Ireland, which suffered an additional 15%decrease over the previous years
contraction as a direct result of its still
constrictedeconomy4;
Croatia,wherepublicandprivatespendingcuts and price dumping from lowend
competitors caused a 14% decrease in fee
revenueforconsultancies.
C. TheBRICsThe BRIC countries (less China, which falls
outsidethescopeofthisreport)onceagainsaw
fastpaced expansion, both in terms of PR
services offered and marketing spend from
clients.
In Brazil, the consultancy business grew by
23%,fuelledbyrisingdemandforsocialmedia
services, internal communications and crisis
management
programmes
and
assisted
by
further
globalisation
of
the
Brazilian
economy.
InRussia,feerevenuesgrewby17%.Workingovernmentrelationsandpublicaffairs,corporateand
crisiscommunicationsandreputationmanagementallexpanded.
In India, the highlyfragmented PR consultancy market is more difficult to measure but widely
suspectedtohaveperformedwell in2010againstthebackdropofagrowingeconomywithstrong
domesticdemand,heavygovernmentspendingandhigh levelsofforeigndirectinvestment.Recent
2Derivedfrom2010versus2008totalrevenueestimates,showing+23%growthoverthetwoyears
3PRCA
members
averaged
13%
growth;
PRWeeks
Top
150
calculation
puts
average
revenue
growth
at
10%+
4Irelandeconomicindicatorsfor2010: 1%GDPgrowth, 1.5%inflation,13.6%unemployment,government
grossdebtat96%ofGDP(source:EconomyWatch.com)
4
Country 2010RevenueGrowthvs2009 2011RevenuePrediction
Australia +10%2 Up
Austria +3.5% Up34%
Belgium
+10%
Up10%
Brazil +23% Up20%
Croatia 14% Up10%
CzechRepublic +10% Up510%
Denmark +5% Up1015%
Finland +2% Up8%
France +3% Up
Germany +1% Up
India
(N/A)
Up20%
Ireland 15% Up5%
Italy +3% +2%
Norway +10% Up10%
Poland Stable Up10%
Portugal 0.4% Stable
Russia +17% Up20%
Slovakia +9% Stable/Up
Slovenia +12% Stable
Sweden +7% Up510%
Switzerland 1% Up
Turkey +7% Up810%
UK +13%3 Up10%
US +11% Stable/Up
http://toppragencies.prweek.co.uk/http://toppragencies.prweek.co.uk/http://toppragencies.prweek.co.uk/http://toppragencies.prweek.co.uk/http://toppragencies.prweek.co.uk/http://www.economywatch.com/http://www.economywatch.com/http://toppragencies.prweek.co.uk/8/3/2019 ICCOWR2011 Return Growth Final
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ICCOWorldReport2011
privatisation and liberalisation policies have helped to improve the overall business environment,
benefitting PR consultancies mainly in the areas of financial communications, consumer marketing
andtechnology.
D. AustraliaAmong
ICCO
member
countries5,
Australia
is
the
fourth
largest
market
for
public
relations
consultancy, behind the US, UK and Brazil. Results from the national trade associations annual
benchmarkingstudyshowasignificant increase intotalconsultancyfeerevenueoverthepasttwo
years.Unfortunately2009and2010resultsdonotallowforliketolikeanalysis,buta2008to2010
comparisonsuggeststhatgrowthcouldhavebeenasmuchas10%peryear.
Much of the work in 2010 came from five specific industries health and wellness, food and
beverage, IT, professional services and financial services and was supported by a trend of
increasinginternationalisationofpublicrelationsactivities.
II. ThemediaenvironmentAsdigitalcommunicationsbecomemoreandmoreintegratedintothelivesofconsumersaroundthe
globe, the media landscape continues to shift from print to online. Business models are changing
rapidly, and many media companies have struggled to adapt, creating an environment of
uncertainty.
Cutbacks from traditional media firms in recent years mean there are now fewer professional
journalists.Uncertaintyhasalsocreatedhigherfluctuation instaff.Bothofthesetrendsmeanthat
PR consultants have the opportunity to play a larger role in the creation of content both on and
offline.Butwiththeongoingriseofbloggers,internetprovidersandnotforprofitorganisationslike
Wikileaks,the
battle
for
content
will
continue
to
intensify.
Therehasalsobeenwidespreadconsolidationamongthemediainmanycountries,thoughmarkets
liketheUKcontinuetobehighlyfragmented.
This isnottosaythattraditionalprintandbroadcastmediaareobsolete.Theycontinuetoplayan
importantroleandtobehighlyvaluedbyclients.Indeedtheyarestillamainstayofpublicrelations
activity inmajor markets like theUSonlythat this activity isnow supplementedwith digitaland
socialcommunicationsprogrammes.
III:The
(continued)
rise
of
digital...
OfthecountriescontributingtotheWorldReport,thirteen6estimatethatbetween80%and100%of
local PR consultancies provide digital communication services to clients. A further six countries7
estimatethenumbertobe5070%,whileonlytwo(CzechRepublicandDenmark)placethenumber
from3040%.Theremainingthreecountriesareunabletoprovideanestimate.
Comparedwith lastyearssurveyresults, it isclearthatconsultancies inplaces likeBrazil,Slovakia,
SloveniaandTurkeyhavequicklysteppeduptheirdigitalofferinginordertomeetdemand.
5CompletelistingofICCOmembercountries,currently28intotal,availableonwww.iccopr.com;24countries
contributedto
the
2011
World
Report
6Belgium,Brazil,Finland,Italy,Norway,Poland,Russia,Sweden,Switzerland,Turkey,UKandUS
5
7Croatia,France,Germany,Ireland,PortugalandSlovakia
http://www.wikileaks.org/http://www.iccopr.com/http://www.iccopr.com/http://www.wikileaks.org/8/3/2019 ICCOWR2011 Return Growth Final
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ICCOWorldReport2011
AsapercentageofoverallfeeincomeforPRconsultancies,digitalservicesremainrelativelysmall
roughlyspeaking,anywherefrom520%,dependingonthecountry.Theseestimatesdoindicatean
increase over 2009, however, and surveyed countries overwhelmingly expect demand for digital
servicestoincreaseagainoverthecourseof2011.
IV: ...andtheroleofsocialmediaOftheavailablesocialcommunicationsplatforms,Facebookdominateswithconsumers.In2010,the
numberofFacebooksubscribersballooned8,dwarfingsimilarsocialnetworkslikeOrkut(stillpopular
inIndiaandBrazil),Qzone(China),Odnoklassniki(Russia)andMySpace.
Marketershavenoticed.Socialbakers,a website devotedsolelyto Facebookstatistics,tracks some
160 thousand pages representing companies, organisations or institutions plus thousands more
dedicated to specific brands and products. Moreover, a recent survey of small business owners
acrosstheUS9showsthatmorethan70%currentlyuseFacebookasamarketingtool,andanother
9%plantointhenearfuture.AddtothistheneedtobeactiveonTwitter,exploitLinkedInandrun
bloggerrelations
programmes,
and
the
task
of
social
marketing
looms
large.
Increasingly,
marketers
arelookingforhelp.
Seen from a public relations perspective, the power of social media has captured the attention of
clients,andtheabilitytoservicethisneedpresentsanimportantopportunityforfuturegrowth.
The latest ICCO TrendsBarometersurvey, fromMay2011, suggests thatPRconsultancyheadsare
taking this seriously. 94% of respondents claim to offer social media services: as an integrated
capability across practice areas (49%), via a dedicated social media team within the consultancy
(31%),relyinguponexternalpartners(11%)orusingsomecombinationofthepreviousmodels(9%).
Theirclients,
however,
may
not
be
as
sure
of
the
link
between
public
relations
and
social
media.
In
the same Trends Barometer survey, only one quarter of respondents said that clients view social
mediaservicesinherentlyaspartofPRactivity,andnearlyafifthsaidthatamajorityofclientsdonot
seetheseservicesasbelongingtopublicrelationsatall.
Clearly,then,somedissonanceexistsbetweentheofferingandcapabilitiesofPRconsultanciesand
theviewsoftheorganisationstheyhopetoserve.Asdemandfordigitalcommunications,andsocial
media expertise in particular, continue to grow, it will be crucial for PR consultants to establish
credibilityinthisareaversusothermarketingdisciplinesandspecialists.
V. PRvs.therestThegoodnewsisthattotalmarketingspendonpublicrelationsversusotherdisciplines isreported
tohaveincreasedorremainedstablefor2010inallsurveyedcountries.Predictionsfor2011offera
similarly rosy picture, with a majority of countries expecting to capture a larger share of the
marketingpiethisyear.Mostnotably,thisisthecaseinboththeUSandUK,twomarketswithhighly
8According
to
Online
Marketing
Trends,
using
Trends
for
Websites
data
from
the
end
of
February
2011,
Facebookhad310milliondailyuniquevisitorscomparedtoclosestrivalOrkuts51million.
6
9MerchantCircles MerchantConfidenceIndexSurvey,March2011
http://www.facebook.com/http://www.orkut.com/http://www.qzone.com/http://www.odnoklassniki.ru/http://www.myspace.com/http://www.socialbakers.com/http://www.twitter.com/http://www.linkedin.com/http://www.iccopr.com/common/popup.aspx?newsId=NjA%3d-OIUf34qXxlA%3dhttp://www.iccopr.com/common/popup.aspx?newsId=NjA%3d-OIUf34qXxlA%3dhttp://www.iccopr.com/common/popup.aspx?newsId=NjA%3d-OIUf34qXxlA%3dhttp://www.iccopr.com/common/popup.aspx?newsId=NjA%3d-OIUf34qXxlA%3dhttp://www.iccopr.com/common/popup.aspx?newsId=NjA%3d-OIUf34qXxlA%3dhttp://www.onlinemarketing-trends.com/2011/03/facebook-vs-its-competitors.htmlhttp://www.onlinemarketing-trends.com/2011/03/facebook-vs-its-competitors.htmlhttp://www.onlinemarketing-trends.com/2011/03/facebook-vs-its-competitors.htmlhttp://www.onlinemarketing-trends.com/2011/03/facebook-vs-its-competitors.htmlhttp://www.onlinemarketing-trends.com/2011/03/facebook-vs-its-competitors.htmlhttp://blog.merchantcircle.com/2011/02/q1-2011-merchant-circle-mci-survey.htmlhttp://blog.merchantcircle.com/2011/02/q1-2011-merchant-circle-mci-survey.htmlhttp://blog.merchantcircle.com/2011/02/q1-2011-merchant-circle-mci-survey.htmlhttp://blog.merchantcircle.com/2011/02/q1-2011-merchant-circle-mci-survey.htmlhttp://blog.merchantcircle.com/2011/02/q1-2011-merchant-circle-mci-survey.htmlhttp://blog.merchantcircle.com/2011/02/q1-2011-merchant-circle-mci-survey.htmlhttp://blog.merchantcircle.com/2011/02/q1-2011-merchant-circle-mci-survey.htmlhttp://blog.merchantcircle.com/2011/02/q1-2011-merchant-circle-mci-survey.htmlhttp://blog.merchantcircle.com/2011/02/q1-2011-merchant-circle-mci-survey.htmlhttp://blog.merchantcircle.com/2011/02/q1-2011-merchant-circle-mci-survey.htmlhttp://www.onlinemarketing-trends.com/2011/03/facebook-vs-its-competitors.htmlhttp://www.iccopr.com/common/popup.aspx?newsId=NjA%3d-OIUf34qXxlA%3dhttp://www.linkedin.com/http://www.twitter.com/http://www.socialbakers.com/http://www.myspace.com/http://www.odnoklassniki.ru/http://www.qzone.com/http://www.orkut.com/http://www.facebook.com/8/3/2019 ICCOWR2011 Return Growth Final
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ICCOWorldReport2011
complex marketing environments
whereclientbehaviourcansetthe
precedent for other geographies
tofollow.
VI.TheoutlookforservicesThe question then emerges as to
whichpublicrelationsserviceswill
contribute to this success. The
accompanying table offers a
detailed look at the prospects for
the most common PR practice
areasinvariouslocations.
First
and
foremost
comedigital
andsocialmediaservices,citedbythirteen countries as having
strong growth prospects locally
overthecourseof2011.Crisisandissuesmanagementare identifiedby ten countries, followed by
corporate communications andpublicaffairs, withninementionseach.
On the opposite end of the
spectrum, demand for eventmanagement services is expected
to dwindle in a number of
countries and to grow in none.
These predictions are entirely
consistent with those of World
Reports from the previous two
years, suggesting that event
managementis
a
practice
area
in
longterm decline for public
relations consultancies. Many of
these responsibilities have either
been absorbed inhouse by client
teams or are now contracted to
specialist event management
firms.
7
LocationswithBestGrowthProspects LocationswithLeastGrowthProspects
Analysis&
ResearchBrazil,Denmark,Finland
Consumer/
BrandMarketing
Norway,Switzerland,UK,
US
Russia,Slovakia,
Slovenia
Corporate
CzechRepublic,
Norway,
Poland,Slovakia,
Slovenia,Sweden,
Switzerland,UK,US
Crisis&Issues
Management
Austria,Brazil,Croatia,
CzechRepublic,Ireland,
Norway,Poland,
Portugal,Turkey,US
Russia
CSR Russia,Slovenia,TurkeyBelgium,Ireland,
Poland
Digital/Social
Media
Austria,Brazil,Czech
Republic,Finland,France,
Ireland,Italy,
Poland,
Portugal,Russia,
Slovenia,Switzerland,
Turkey
Event
Management
Brazil,Croatia,Czech
Republic,Poland,
Portugal,
Switzerland
Financial/
Investor
Relations
Norway,Poland,Russia,
UK
Denmark,Italy,
Switzerland
Healthcare
CzechRepublic,India,
Poland,Russia,
US
Internal
CommunicationsBrazil,Denmark
Russia,Sweden,
Switzerland,Turkey
LitigationComms Belgium
Lobbying Sweden Austria
MediaRelationsCroatia,Denmark,
Finland,Poland,Sweden
Brazil,Germany,
Russia
Media&
Spokesperson
Training
Brazil
Political
ConsultingCroatia,Russia
PublicAffairs
Brazil,Croatia,Czech
Republic,India,Ireland,
Norway,Poland,Russia,
Switzerland
Austria,UK
Publishing/
ProductionFinland
CzechRepublic,
Denmark
Reputation
ManagementGermany,Poland,Turkey
Strategic
Consulting
Croatia,Denmark,
Finland,Switzerland
Technology
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IndustrieswithBestGrowthProspects IndustrieswithLeastGrowthProspects
Australia (N/A) (N/A)
AustriaCleanTechnology,
Healthcare
Automotive,Public
Sector
BelgiumEnergy,Finance,
Healthcare,Public
Sector
IT,Retail,Tourism
BrazilExportIndustry,Finance,
Healthcare,PublicSectorRetail
Croatia
Energy,Entertainment,
Finance,Pharmaceuticals,
PublicSector,Retail
IT,Telecoms
Czech
Republic
Healthcare,Heavy
Industry,Wellness
Construction,Real
Estate
DenmarkCleanTechnology,Energy,
IT,ProfessionalServices
Construction,Luxury
Goods,RealEstate
Finland
B2B,Energy,IT,
ProfessionalServices,
PublicSector
FranceEnergy,Healthcare,
Industry,IT
Transport&Logistics,
Travel
Germany
ConsumerGoods,Energy
&Environment,
Healthcare,PublicSector,
Technology
India
Agriculture,Energy,
Infrastructure,
Manufacturing,Mining,
Retail
Textiles
Ireland
Energy,Finance,Food,IT,
ProfessionalServices,
Telecoms
PublicSector,
Real
Estate,Retail
ItalyEnergy,Healthcare,
UtilitiesFinance,PublicSector
Norway
ConsumerGoods,Energy,
Finance,PublicSector,
Transportation
Industry
Poland
B2B,Energy,Finance,
Healthcare,Infrastructure,
IT,Technology
Entertainment,
ConsumerGoods,
Retail
Portugal Energy,HealthcareConsumerGoods,
Finance
Russia
ConsumerGoods,Energy,
Finance,Healthcare,IT,
PublicSector,Telecoms
Automotive,Real
Estate,Transportation,
Travel
Slovakia IT,ManufacturingConsumerGoods,
Retail
Slovenia
Energy,Finance,
Pharmaceuticals,
Telecoms
Automotive,Food&
Drink,Textiles
Sweden
Energy,Food,
Infrastructure,
Pharmaceuticals
Automotive,Retail
8
VII.TheoutlookforindustriesNo public relations forecast would
becompletewithoutananalysisof
the specific industries from which
futurebusiness
will
come.
Thetablehereoffersabreakdown
of industries with the best and
leastgrowthprospectsfor2011,by
country.
It shows that the energy industry
represents an important source of
growth for PR consultancy
internationally,
with
seventeen
surveyed countries labelling it as
highgrowthpotential.
Healthcare is another important
growthindustry.Itismentionedby
eleven countries, accompanied by
one mention of wellness and four
of the pharmaceutical industry,
bothrelatedtohealthcare.
The financial industry (bankingincluded) is listed as a growing
source of business in nine
countries,includingtheUSandUK.
Italy, Portugal and Turkey,
however, view this as one of the
industrieswiththeworstprospects
fortheyear.
Thepublicsectorlooksparticularlypromising in eight countries but
has low potential in another four,
namely where recent spending
cuts are still taking effect (Austria,
Ireland,ItalyandtheUK).
As for the least promising
industries overall, retail tops the
list. Seven countries have little
faithinitsprospectsforthisyear,
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ICCOWorldReport2011
althoughthreemarketsCroatia,
India and Turkey expect a
boom.
The automotive and real estateindustries
also
appear
to
hold
littlepotentialforpublicrelations
consultancygloballyin2011,with
nonotedprospectsforgrowth.
VIII.ThetalentpoolIntermsofgeneralemploymentconditionsacrossindustries,nationalunemploymentratesarehigh
but falling in most countries10. However the risk of rising unemployment is reported to be high in
Italy,andtheUKexpectstoseemorepublicsector layoffsthisyear.Finland is facingpublicsector
cuts in addition to streamlining from Nokia, the countrys largest private employer11. By contrast,
Braziland
Russia
are
experiencing
employee
driven
markets
with
rising
wages.
Thereremain,however,manyemploymentissuesspecifictothecommunicationsindustryandpublic
relations. For example, the US and UK report a general shortage of candidates with both digital
expertiseandclientserviceexperience.Switzerlandsuffersfromalackofhighlyexperienced,senior
talent.BrazilandIndialackqualifiedworkersforentrylevelpositions.InIndia,thisisexacerbatedby
thefactthatnewcandidatesaredrawntoadvertisingandexistingstaffleaveforcorporatepositions
sincebothoftheseofferbetterpaythanPRconsultancies.
Evenso,the levelofavailabletalenthasreportedly improved inBrazil,Croatia,theCzechRepublic,
Denmark,
France,
Germany,
Ireland,
Poland,
Slovenia,
Switzerland,
Turkey
and
the
UK
twelve
countriesinall.Thiscanlargelybeattributedtoacombinationoftwofactors:
1)anincreaseinapplicationsfromalargerpoolofnewgraduates,
2)theaftermathofcorporateandpublicsectordownsizing.
Allremainingcountriesinthesurveyhaveseenlittlechangeinthenumberofjobcandidatesin2011,
exceptforRussia,wheretalentisdeemedtobescarcerthaninpreviousyears.
Anecdotalevidence indicatesthat, internationally,manymorePRconsultanciesarehiringthisyear
thanin2010,thoughaconsiderablenumberwillcontinuetowaitandseehowtheirlocaleconomies
and
resulting
new
business
leads
develop
before
committing
to
a
larger
staff.
IX. ChallengestosuccessThetopfivechallengesaheadforpublicrelationsconsultancies,accordingtosurveyedcountries,are:
1) StaffingThe issue of attracting talent (and then retaining it), proves to be of major concern to PR
consultancies.Growingthebusinessdependsuponachievingtherightmixofskillsandexperience
andhavingtheabilitytoformlastingrelationshipswithclients.
10InternationallabourcomparisonsfromtheUSDepartmentofLabor,BureauofLaborStatistics
11LargestCompanies.coms listoflargestemployersintheNordiccountries
9
Switzerland
Biotechnology,Energy,
Pharmaceuticals,Public
Sector
Machinery,Retail
Turkey
ConsumerGoods,Energy,
Telecoms,RealEstate,
Retail
Finance,Textiles
UK
B2B,Consumer
Goods,
FinancePublic
Sector
USConsumerGoods,Finance,
Healthcare,Technology
http://www.bls.gov/ilc/intl_unemployment_rates_monthly.htmhttp://www.bls.gov/ilc/intl_unemployment_rates_monthly.htmhttp://www.bls.gov/ilc/intl_unemployment_rates_monthly.htmhttp://www.bls.gov/ilc/intl_unemployment_rates_monthly.htmhttp://www.bls.gov/ilc/intl_unemployment_rates_monthly.htmhttp://www.bls.gov/ilc/intl_unemployment_rates_monthly.htmhttp://www.bls.gov/ilc/intl_unemployment_rates_monthly.htmhttp://www.bls.gov/ilc/intl_unemployment_rates_monthly.htmhttp://www.largestcompanies.com/default$/lev2-TopList/lev2Desc-The_largest_employers/AdPageId-105/list-5/cc-DK%2CFI%2CNO%2CSE/http://www.largestcompanies.com/default$/lev2-TopList/lev2Desc-The_largest_employers/AdPageId-105/list-5/cc-DK%2CFI%2CNO%2CSE/http://www.largestcompanies.com/default$/lev2-TopList/lev2Desc-The_largest_employers/AdPageId-105/list-5/cc-DK%2CFI%2CNO%2CSE/http://www.largestcompanies.com/default$/lev2-TopList/lev2Desc-The_largest_employers/AdPageId-105/list-5/cc-DK%2CFI%2CNO%2CSE/http://www.largestcompanies.com/default$/lev2-TopList/lev2Desc-The_largest_employers/AdPageId-105/list-5/cc-DK%2CFI%2CNO%2CSE/http://www.largestcompanies.com/default$/lev2-TopList/lev2Desc-The_largest_employers/AdPageId-105/list-5/cc-DK%2CFI%2CNO%2CSE/http://www.largestcompanies.com/default$/lev2-TopList/lev2Desc-The_largest_employers/AdPageId-105/list-5/cc-DK%2CFI%2CNO%2CSE/http://www.largestcompanies.com/default$/lev2-TopList/lev2Desc-The_largest_employers/AdPageId-105/list-5/cc-DK%2CFI%2CNO%2CSE/http://www.bls.gov/ilc/intl_unemployment_rates_monthly.htm8/3/2019 ICCOWR2011 Return Growth Final
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2) ClientbudgetsLoworshrinkingclientbudgetspresentanotherobviouschallengetothesuccessofthebusiness,
especiallywhentheclientsexpectationsremainhigh.
3) ProfitabilityThe
tendency
to
over
service
accounts
in
order
to
please
clients,
the
struggle
to
keep
rising
operational costs in line with fee income, the need to invest in new business pitches,... all of
theseissuesdirectlyaffecttheconsultancysbottomline.
4) PricingDownward price pressure attacks profit margins even further. New and lowend competitors
dumptheirprices,orclientsbecomemorepricesensitiveastheirbudgetsaresqueezed.
5) CompetitionFinally,competitionfromnewconsultancies(withlowbarrierstoentry)andfromothermarketing
disciplines,makes
it
increasingly
difficult
to
differentiate
the
business
and
win
new
clients.
X. SummaryThe international public relations consultancy business grew bigger and stronger in 2010 and is
poisedtogrowagainin2011.Afewmarketsarestillstrugglingtocopewithdifficultmacroeconomic
conditionsandloweroverallinvestment,butthevastmajorityofcountrieshavereturnedtogrowth
andaregaininginconfidenceforthemonthsahead.
Asconsumersincreasinglyaccesscontentthroughmobiledevicesandshifttheirattentiononline,the
media landscape is shifting along with it, creating a dynamic if unstable communications
environment.
Useofsocialmediahasincreasedbyleapsandboundsoverthepastyear,andclientorganisationsof
all sizes are keen to be involved. More and more, marketers are demanding digital services that
includesocialmediaexpertise,andPRconsultanciesarerisingtothechallenge,withalargemajority
integratingtheseservicesintotheiroffering.
In parallel, the core practice areas of corporate communications, crisis management and public
affairsareexpanding.Theincreaseddemandwillcomefromtheenergyandhealthcareindustriesin
particular.
Asalways,challengestothesuccessofthebusinessremainespeciallyaroundstaffingandfinancial
managementbutpublicrelationsconsultantshavesurvivedthe leaneryearsandemergedbetter
equippedthanevertotacklethesechallenges.
10
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Appendix1MapofparticipatingcountriesandrankingofPRconsultancymarketsize24 national trade associations contributed data for this report, representing a broad geographic
spread and including the largest markets for public relations. The countries they represent are
highlightedincolouronthemapandlistedbelow.
ThenumbersonthemapcorrespondtoarankingofoverallmarketsizeforPRconsultancyamong
participatingcountries,inorderfromlargesttosmallest.Onlythosemarketsconsideredtobeworth
anexcessof100millioninannualfeerevenueareranked.
Australia(4)
Austria(13)
Belgium
Brazil(3)
Croatia
CzechRepublic
Denmark
Finland
11
France(7)
Germany(6)
India(11)
Ireland
Italy(5)
Norway
Poland(11)
Portugal
Russia(10)
Slovakia
Slovenia(9)
Sweden(8)
Switzerland
Turkey
UnitedKingdom(2)
UnitedStates(1)
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12
Appendix2TableofICCOtradeassociationssurveyedandlocalmarketsizeCountry TradeAssociation Numberofmember
firms2010feeincomeofmembers
12Estimated%oftotalmarket
13Australia
RegisteredConsultanciesGroup(RCG)ofthe
PublicRelations
Institute
of
Australia
175
304
m
(N/A)
Austria PRQualityAustria 15 34.5m 33%Belgium BelgianPublicRelationsConsultants
Association(BPRCA)25 30m 60%
Brazil BrazilianAssociationofCommunicationsAgencies(ABRACOM)
341 283m 35%
Croatia CroatianPublicRelationsAgencyAssociation(CPRAA)
15 9.5m 70%
CzechRepublic AssociationofPublicRelationsAgencies(APRA) 18 27m 65%Denmark PublicRelationsBranchen 31 40m 70%Finland FinnishAssociationofMarketing
Communications
Agencies
(MTL)
31 45m N/A
France SYNTECConseilenRelationsPubliques 38 172m 65%Germany AssociationofPublicRelationsAgencies(GPRA) 35 180m 50%
India PublicRelationsConsultantsAssociationofIndia(PRCAI)
18 110m14
80%
Ireland PublicRelationsConsultantsAssociation(PRCAIreland)
31 40m 85%
Italy Assorel 44 136m 30%Norway NorwegianPublicRelationsConsultants
Association(NIR)25 64m 80%
Poland PolishPublicRelationsConsultanciesAssociation(PPRCA)
33 61m 54%
Portugal PortugueseAssociationofCommunicationsandPublicRelationsConsultancies(APECOM)
31 52m 70%
Russia RussianPublicRelationsConsultanciesAssociation(AKOS)
32 74.5m 60%
Slovakia AssociationofPRAgenciesintheSlovakRepublic(APRSR)
12 5.5m 80%
Slovenia ChamberofPublicRelations(ZOJ) 14 73m 50%Sweden PRECISAssociationofPublicRelations
ConsultanciesinSweden(PRECIS)35 140m 80%
Switzerland AssociationofPRAgenciesinSwitzerland(BPRA)
22 53m 90%
Turkey CommunicationsConsultancyCompaniesAssociation(IDA) 19 16m 50%United
Kingdom PublicRelationsConsultantsAssociation(PRCA) 240+6015 872m 50%UnitedStates CouncilofPublicRelationsFirms(CPRF) 98 2,500m16 65%
12EstimatedfiguresataverageDec2010Apr2011exchangeratestotheeuro,inmillions
13Intermsoftotalrevenue
14PRCAIbasisindustryestimate($155m)forentirePRconsultancyindustry,includingfreelancers
15240
PR
consultancies
plus
60
in
house
teams
16EntireUSmarketestimatedat$3.4bnfor2010inprivateequityfirmVeronisSuhlerStevensons
CommunicationsIndustryForecast