Product Type: Market Research Report
Published by: Key Note Publications Ltd
Published: September 2007
Product Code: R310-1481Description Business is booming for the public-relations (PR) industry on both sides of the Atlantic; the top 30 agencies saw increases of around 17% in the US and by 10.5% in the UK in 2006 compared with 2005.
PR's own reputation has emerged from the shadows as the industry itself has become more professional. It is increasingly being seen as the guardian of both brand and corporate reputation, especially in an environment that is becoming more fragmented across a very diverse number of media platforms.
The very nature of this diversity is adding to the strength of the PR industry, as the astonishing growth of social community sites, citizen journalism and, most of all, `the blogosphere' (the weblogging environment) provide a hotbed of opinion in which reputation can rapidly be consumed. Only PR can hope to interact at the deep levels needed to influence online opinion. It is here that practitioners have told Key Note that PR needs to develop its talents, and also where most caution is required.
In these days of increased globalisation, corporate reputation is at the top of everyone's `shopping list'. It is in this discipline that the industry has seen most growth and expects to see continuing growth in the future. In terms of vertical markets, healthcare has been identified by several of the industry spokespeople Key Note consulted for this report as the fastest-growing sector; however, the public sector (particularly in the light of the new Labour leadership), the environment and corporate social responsibility (CSR) are all emerging as growth areas for PR.
The overriding concern of the industry is the skills shortage. Almost all agencies are hiring, a trend that is itself indicative of growth, and some are looking outside the PR industry to bring in new skills.
In the past, there has been a relatively clear distinction between PR and other marketing disciplines, but this is changing. The giant marketing communications companies, such as WPP and Omnicom, have always numbered PR and communications agencies among their holdings. These are now rising to greater prominence within the groups, although not yet rivalling the mighty advertising agency networks that occupy pride of place.
Nonetheless, the number of newcomers to the scene is growing, mainly through acquisitions, largely in the PR field. Companies such as Huntsworth and Chime, and the world-leading Edelman, which are PR centred, are able to compete with the WPP and Omnicom networks on a global scale in order to manage clients' corporate and brand reputations.
Even these companies have rivals; other service groups are also taking an interest in the PR market. 2006 saw strategic acquisitions made by a leading global financial consultancy and by leading information-services companies. PR is becoming `hot'. It is also becoming global.
Although there are many thousands of small agencies and individual consultants serving very local markets, larger agencies are forging partnerships across the globe to meet demand from clients that themselves are extending their global reach. Yet it is not enough to simply market goods and services in individual territories: there must be a deeper understanding of those cultures for PR to be effective.
The issue of how to measure the effectiveness of PR continues to be raised by practitioners, who need to demonstrate value for money to their clients. Market-research companies can measure attitudes but, as has been noted in previous editions of this report, that research comes at a cost that many clients are not willing to pay. The challenge has been taken up by those in the support sector, which offer more than simple news clippings or news-distribution services. Technology has advanced to allow them to provide automated services, which can present clients with detailed reports of not just coverage and tone but also comparisons with competitor coverage.
Table of Contents - Executive Summary
- 1. Introduction
- REPORT FOCUS
- DEFINITION
- 2. Strategic Overview
- BACKGROUND
- Qualifications
- MARKET DYNAMICS AND SEGMENTATION
- Market Sectors
- Trade Associations
- Association of Media Evaluation Companies
- British Association of Communicators in Business
- Chartered Institute of Public Relations
- Council of Public Relations Firms
- Fédération Internationale des Bureaux d'Extraits de Presse
- Healthcare Communications Association
- International Communications Consultancy Organisation
- International Public Relations Association
- Public Relations Consultants Association
- UK Media Monitoring Association
- Marketing
- Total Industry Value and Growth
- DISTRIBUTION
- Table 1: Top 20 Public Relations Consultancies Located Outside of London by Fee Income† (£), Years Ending 31st December 2005 and 2006
- COMPETITIVE STRUCTURE
- Omnicom Group Inc (US)
- WPP Group PLC (UK)
- Interpublic Group (US)
- Publicis Groupe (France)
- Havas Group (France)
- Huntsworth PLC (UK)
- Financial & Corporate Communications
- Public Affairs
- Public Relations
- Healthcare
- Chime Communications PLC (UK)
- INDUSTRY ISSUES
- Skills Shortage and Staffing Issues
- Online PR
- Search-Engine Optimisation
- Agency/Client Relations
- 1. "PR Takes The Lead
- 2. "Keeping The Magic Alive
- 3. "It No Longer Does What It Says On The Tin
- A Marketing Perspective
- Environmental Issues
- THE CONSUMER
- "Tip 1: Focus On A Clear Theme
- "Tip 2: Create A Catchy Headline
- "Tip 3: Format Your Press Release Correctly
- "Tip 4: How To Write Your Press Release
- MARKET FORECASTS
- Table 2: Average of Independent Forecasts for Gross Domestic Product Growth in Real Terms, Inflation by Consumer Price Indices and Retail Price Index, and Claimant Unemployment (% and million), 2007-2011
- Table 3: The Forecast UK PR Industry† by Value at Current Prices (£bn), 2007-2011
- 3. Public Relations Consultancies
- BACKGROUND
- MARKET SIZE
- Table 4: The UK Market for Public Relations by Top Four Marketing Communications Groups and Independents (£m), Years Ending 31st December 2005 and 2006
- Profitability
- Table 5: Top 30 UK Public Relations Consultancies' Joint Profitability (£000 and %), Previous and Latest Results
- COMPETITOR ACTIVITY
- AGENCY LEAGUE TABLES
- Table 6: The PRWeek Top 20 Consultancies by Fee Income† (£), Years Ending 31st December 2005 and 2006
- Table 7: The PRWeek Top Ten Consumer Agencies by Fee Income (£), Years Ending 31st December 2005 and 2006
- Table 8: The PRWeek Top Ten Healthcare Consumer Agencies by Fee Income (£ and % of total income), Year Ending 31st December 2006
- Table 9: The PRWeek Top Ten Financial Consultancies by Number of Deals and Total Value (number and £bn), 1st October 2005-30th September 2006
- PUBLIC RELATIONS EXPENDITURE TRENDS
- MARKETING ACTIVITY
- Industry Awards
- The Public Relations Consultants Association FrontLine Awards
- Chartered Institute of Public Relations Excellence Awards
- Communicators in Business Communications Excellence Awards
- PRWeek Awards
- Gold Awards
- People & Agencies
- Corporate & Public
- Product & Promotion
- Specialist & Technique
- CONSUMER BEHAVIOUR
- Top Tips for Client Meetings
- 4. Public Relations Support Services
- BACKGROUND
- MARKET SIZE
- SUPPORT SERVICES BY SECTOR
- Media Monitoring and Evaluation
- Expanded Services
- Fees
- Competitive Structure
- Cision UK Ltd (formerly Romeike)
- Durrants Ltd
- Precise Media Group
- TNS Media Intelligence/PressWatch Media Ltd
- Others
- News-Release Distribution
- Glide Technologies Ltd
- Gorkana Data Systems Ltd
- SUPPORT SERVICES AWARDS
- CONSUMER BEHAVIOUR
- Table 10: The Most Important Research Methods for Journalists (%), April 2007
- Table 11: Journalists' Usage of Blogs and Wikis (%), April 2007
- Table 12: Proportion of Press Releases Received of Genuine Interest (% of journalists), April 2007
- Table 13: Factors That Would Make Journalists Likely to Read a Press Release, April 2007
- Corporate Rankings
- Table 14: UK Top 20 Companies by Overall Mentions and Score, 2005 and 2006
- Table 15: UK Bottom Ten Companies by Overall Mentions and Score, 2005 and 2006
- 5. The Blogosphere
- BACKGROUND
- What's Hot?
- MARKET SIZE
- Most Linked-To Sites
- 1. Engadget
- 2. Boing Boing: A Directory of Wonderful Things
- 3. Gizmodo, the Gadget Guide
- 4. TechCrunch
- 5. Breaking News and Opinion on The Huffington Post
- 6. Lifehacker, the Productivity and Software Guide
- 7. Ars Technica
- 8. Daily Kos: State of the Nation
- 9. PostSecret
- 10. TMZ.com
- Most Favourite Sites
- 1. Boing Boing: A Directory of Wonderful Things
- 2. Make Money Online Problogger Blog Tips
- 3. Techcrunch
- 4. Lifehacker, the Productivity and Software Guide
- 5. 43 Folders
- PRACTITIONER VIEWS OF INTERACTIVE CUSTOMER COMMUNICATIONS
- COMPETITOR PROFILES
- Technorati Inc
- Del.icio.us
- Digg Inc
- 6. An International Perspective
- MARKET DEVELOPMENT in CHINA
- "Mainland China: A Maze of Contradictions
- The Chinese Media Landscape
- "Newspapers
- "Business Papers
- "Television
- "China Central Television www.cctv. com.cn/default.shtml
- "Portal Websites
- "Baidu
- "Sina
- "Netease
- "Sohu
- "Tom
- "Eastday
- "Other Media Entities
- MARKET SECTOR GROWTH
- Table 16: Best and Worst Growth Prospects by Line of Business by Number of Mentions, 2006
- Table 17: Best and Worst Growth Prospects by Industry Sector by Number of Mentions, 2006
- COMPETITOR ENVIRONMENT
- Table 18: Top Ten US Independent Firms by Fee Income and Number of Employees ($), 31st December 2006
- Table 19: Predicted Assessment of 2007 Local Market Conditions by ICCO Member Country
- Consumer Behaviour
- Table 20: Posts by Language (% of blogs measured), as at Fourth Quarter 2006
- 7. PEST Analysis
- POLITICAL FACTORS
- ECONOMIC FACTORS
- SOCIAL FACTORS
- TECHNOLOGICAL FACTORS
- 8. Industry Dynamics
- INDUSTRY RESEARCH
- Interviewees
- Suzanne Peck, Chairman, British Association of Communicators in Business
- Nick Fulford, Managing Director, CanCan
- Adrian Brady, Managing Director, Eulogy! Ltd
- Ross Furlong, Furlong PR Ltd
- Charles Lewington OBE, Founder, Hanover Communications
- Bill MacIntyre, Co-Founder, IrisPR
- Patrick Barrows, Director General, Public Relations Consultants Association
- George Blizzard, Co-Founder, The PR Network
- Questions and Answers
- 1. "What Are the Three Most Important Issues Facing the Industry Today?"
- Suzanne Peck
- Nick Fulford
- Adrian Brady
- Ross Furlong
- Charles Lewington
- Bill MacIntyre
- Patrick Barrows
- George Blizzard
- 2. "Which Vertical Sectors Have Shown the Strongest Growth in the Last Year? (Health? Environment? Political? Some Other?) And Why?"
- Suzanne Peck
- Nick Fulford
- Adrian Brady
- Ross Furlong
- Charles Lewington
- Bill MacIntyre
- Patrick Barrows
- George Blizzard
- 3. "Which PR Discipline is Growing Fastest?"
- Suzanne Peck
- Nick Fulford
- Adrian Brady
- Ross Furlong
- Charles Lewington
- Bill MacIntyre
- Patrick Barrows
- George Blizzard
- 4. "What Progress Has Been Made in Online PR in the Past 12 Months? What Are its Strengths and Weaknesses?"
- Suzanne Peck
- Nick Fulford
- Adrian Brady
- Ross Furlong
- Charles Lewington
- Bill MacIntyre
- Patrick Barrows
- George Blizzard
- 5. "Are Clients Now Allocating Greater Percentages of their Marketing Budgets to PR?"
- Suzanne Peck
- Nick Fulford
- Adrian Brady
- Ross Furlong
- Charles Lewington
- Bill MacIntyre
- Patrick Barrows
- George Blizzard
- 6. "What Headway is PR Making as Far as Influencing Client
- Company Strategies Is Concerned?"
- Suzanne Peck
- Nick Fulford
- Adrian Brady
- Ross Furlong
- Charles Lewington
- Bill MacIntyre
- Patrick Barrows
- George Blizzard
- 7. "Biggest Challenge for the Future?"
- Suzanne Peck
- Nick Fulford
- Adrian Brady
- Ross Furlong
- Charles Lewington
- Bill MacIntyre
- Patrick Barrows
- George Blizzard
- Key Note Comment
- 9. Company Profiles
- INTRODUCTION
- HUNTSWORTH PLC
- Corporate Information
- Strengths and Weaknesses
- New Product/Brand Development
- Innovations
- New Research
- Appointments
- Profitability
- Table 21: Financial Results for Huntsworth PLC (£m), Years Ending 31st December 2004-2006
- Future Company Developments
- CHIME COMMUNICATIONS PLC
- Corporate Information
- Strengths and Weaknesses
- New Product/Brand Development
- Innovations
- New Research
- Appointments
- Profitability
- Table 22: Financial Results for Chime Communications PLC — Public Relations Division (£m), Years Ending 31st December 2005 and 2006
- Future Company Developments
- EDELMAN INC
- Corporate Information
- Strengths and Weaknesses
- New Product/Brand Development
- Innovations
- New Research
- Appointments
- Profitability
- Future Company Developments
- FTI CONSULTING INC
- Corporate Information
- Strengths and Weaknesses
- Financial Communications
- Brand Communications
- Public Affairs and Crisis & Issues Management
- Business Consulting
- New Product/Brand Development
- Innovations
- New Research
- Appointments
- Profitability
- Future Company Developments
- 10. The Future
- MARKET GROWTH
- Table 23: Practice Areas Where Most Growth is Expected Over `The Next Few Years' (% of respondents), June 2007
- Table 24: Sectors Where Most Growth is Expected Over `The Next Few Years' (% of respondents), June 2007
- MARKET ForecastS
- Table 25: The Forecast UK PR Industry† by Value at Current Prices (£bn), 2007-2011
- 11. Glossary
- 12. Consumer Confidence
- METHODOLOGY
- KEY FINDINGS THIS QUARTER
- THE WILLINGNESS TO BORROW
- Confidence Improves
- Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2006-2007
- Willingness to Borrow Slips Slightly
- Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), February 2006-2007
- SPENDING FROM SAVINGS
- Slight Increase in Spending from Savings
- Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), February 2006-2007
- Saving Grows in Relative Importance
- Table D: The Average Amounts Adults Are Confident Spending to Purchase Expensive Items (£ and %), February 2006-2007
- 13. Further Sources
- Associations
- Publications
- Government Sources
- Other Sources
- Bisnode Sources
|
|
