The (Near-Term) Future of PR

By Chris Scott, Senior Vice President

While there’s no doubt the economic challenges that businesses continue to face are helping the fortunes of some PR agencies, the evolving nature of the communications industry dictates that agencies must adapt their offerings to promote future growth.

With the disappearance of expansive advertising and marketing budgets at large and small companies alike, turning to more cost-effective public relations strategies made immediate sense for many over the last two years. But for the mutual success of clients and agencies to continue, there must be shared recognition of some essential truths in the near term. Here, then, are just three factors that are likely to affect the PR industry throughout 2011:

Specialization’s the differentiator. The days of simply providing press release distribution and media relations services are long gone. Clients today want an extra edge, honed by more strategic thinking and more cost-effective tactics. Agencies must continue to sharpen their skills using Web-based initiatives, social media strategies, media relationship-building programs and other approaches that demonstrate to clients that all the stops are being pulled to achieve the goal of exposing the client to targeted audiences. Agencies still offering 1980s-style PR services will be able to find clients, but ultimately will be left behind when savvy CMOs realize that firms that resist learning new tricks shouldn’t get the gig.

For example, a client that insists that a single story in a regional business publication will turn its fortunes around is setting up the agency for failure and itself for disappointment. Without utilizing other channels (Web distribution, marketing leave-behinds, etc.) that support the coverage, the audience will forget about the company and its story soon after its appearance – if it’s even been noticed to begin with. Agencies that can integrate these supporting tactics – for a reasonable cost – will earn the loyalty and respect of the client and open the door for more extensive work.

Continuing education’s key. It’s tough anytime for agencies to explain exactly what PR can do for clients given the vast scope of the possibilities. Clients are expecting much more from agencies – as they probably should – and that includes bringing them up to speed as to why and how specific strategies will help achieve their goals before any contracts are signed. Even if the client grasps the basics of PR, new paradigms are being established through innovation on both sides of the relationship.

Several years ago, a consumer services provider contracted with us to develop a PR-based program to help convert its customers into ambassadors to help grow the business without spending more dollars on advertising. Unfortunately, the client’s managers couldn’t wrap their heads around the concept that coverage of a unique solution to a business problem builds image and awareness, but it’s difficult to draw a direct correlation to added revenue as advertising does. Make sure everyone comprehends what the program will achieve at the outset, and help the client understand why a blog might have drawbacks, but a Facebook campaign might be effective.

Sometimes the client doesn’t “know” what it doesn’t know. PR firms – like all service providers – are partly required to bring creative thinking to the party. But what may seem an obvious solution to a client’s business problem may not be as apparent to a client that’s unfamiliar with the tools and tactics today’s PR and marketing firms can bring to the table. For instance, a client may not know that it’s possible to develop a relationship with a reporter or editor at a specific publication or broadcast show who covers the client’s industry and reaches an audience that the client wants or needs to reach. Making the client aware of how to do this will further differentiate the agency from the competition when it comes time to renew or extend the contract with the client.

As for clients with previous agency experience, remember that just because that predecessor agency didn’t employ a specific tactic during its tenure doesn’t necessarily mean that all agencies operate the same. One of our clients had a five-year relationship with an agency that required the client to write its own press releases. When we signed on and explained that it’s our job to write and then manage the release’s distribution, it was like an arc light turning on inside of a darkened room. Again, providing alternatives to what the client has grown used to often goes a long way toward cementing a successful relationship.

With general economic uncertainty destined to continue into 2011, it’s more important than ever for PR agencies to become proactive in opening doors for opportunity by attracting clients who may not know that they need these services. By recommitting to a structured, customized approach for new prospects, PR agencies will be able to not only weather this economic storm but also thrive in an environment where companies seemingly are more open to giving PR strategies a try.