Third Quarter Member Survey Results—PR Rebounding Thanks to Social Media
As the New York Times and Ad Age have reported, PR is bouncing back this year from the hit that marketing took in 2009, thanks in part to growing interest in social media. Results are in from our third quarter survey of member firms, and we’re pleased to report that the positive news continues.
About a week ago, we surveyed our member firms; 57 responded, most of them mid-sized (40% had 2009 revenues between $3m and $10m, and almost 30% between $10m and $50m). Over two-thirds (68.4%) reported that projected 2010 revenues would be higher than in 2009, with almost 70% attributing this to new client gains. Speaking of new clients, 67% indicated that their new business pipelines were stronger in the third quarter than a year ago. Margins were doing well, with over half of firms seeing higher margins, and almost all of the rest seeing flat margins. A plurality (38.9%) expected that, based on discussions with clients and prospects, PR budgets would be higher in 2011 than in 2010.
So what’s driving demand going forward? Two words would appear to provide a large part of the answer: Social Media. Over 80% of firms we surveyed reported that more requests for digital and social media expertise would be one of “the most frequent new business trends” for 2011. Within the social media practice, video and blogging were cited most often as growth areas for participating firms. Other new business trends identified by at least half of our survey group included more requests for measurement of ROI, more project work, a shift away from traditional media relations toward “online influencers” and more integrated campaign development.
Nearly 40% of firms anticipate an increase in hiring activity in Q4 as compared to the first nine months of the year, while finding the right talent to hire is “difficult” or “very difficult” according to half of the respondents.
We also asked questions that probed realities on the ground as firms deliver social media services. A plurality of firms (33.3%) said that generally speaking, the procurement/sourcing agents within client organizations failed to meet their expectations regarding management relationship and stewardship. Regarding measurement, half the firms reported that they do about as good of a job measuring ROI of digital and social media services as they do with traditional PR programs and activities.
Overall, it’s a positive picture. The economy is still tough, and firms are being challenged to measure ROI better and to navigate tough client relationships, but we’re well positioned for success on the strength of our ability to deliver the social media and digital solutions clients need. Onward and upward!
Interesting information. In Canada we are seeing a similar pattern in PR firms, however it should also be noted that there has been signficant contraction in the industry with larger national firms buying out smaller boutique firms in cities. Also of interest is that PR firms are finding it difficult to find professionals with the appropriate level of skills and experience with social media and that a signficant number of social media specialists prefer to remain private contractors as opposed to working for a large firm.
Very informative. If PR budgets go up, trade and industry in the USA is regaining its strength. This is a good sign for all of us in the third world. PR agencies will certainly contribute substantially for the resurgence of American economy. Good luck to PR professionals in USA.