Getting Your Message Out: The Game Has Changed for Public Relations Agencies

 "After two years of prosperity in which year-over-year growth of 15% and 19% were achieved, reality bit in 2023 and the PR sector could only grow 3% YOY, just shy of the annual inflation rate of 3.4%. Then there’s the specter of AI hanging over the industry ..." - PR Week, May 2024

Like law, managment consulting, finance and tech, public relations became a glam career. Also for organizations and individuals "in trouble" it evolved into the go-to first stop. The world awaited Edelman's annual Trust Barometer to get a sense of attitudes. 

Now, even Edelman experienced a challenging 2023. The public relations agency laid off and lost clients. Read professional anonymous network Reddit Public Relations and you bear witness to the struggle to land both the entry-level job and more senior positions. 

The editorial director of PR Week Steve Barrett, though, sees a promising future for agencies which are "progressive, creative and brave." 

To use the cliche of "the perfect storm" many forces converged on the business of public relations. Among them:

Cost-efficiency. Just as with calling in the management consultants, businesses are re-thinking how much communications assignments to farm out. The service is expensive. In addition, the proliferation of technology tools including those related to generative AI makes it doable to perform tasks in-house.

Shrinking media. Of course, agencies, just like powerhouse law firms such as Kirkland & Ellis and Paul, Weiss, get paid the big bucks for determining the strategy. But the sector used to be known and paid well for its contacts with establishment media. Media relations was the key role in agencies. 

Since 2005, two-thirds of the jobs in journalism have been eliminated. That means fewer reporters to pitch to. To get exposure for clients, other methods have to be used, such as social media and SEO, and in that box there is plenty of less-expensive competition. 

Loss of control to influencers. No longer are the agencies in charge for branding and publicity. That power has shifted to influencers. Firms have to develop relationships with those. In addition, that road can be rocky if influencers become ensnared in scandals. The agency can take the hit, along with the influencer.

Obviously, as with  most Knowledge Work those in public relations agencies have to do some comprehensive soul-searching. It was iconic Harvard Business School marketing professor Ted Levitt who way back when explained that organizations have to ask: What business are we really in?" Had the railroads done that and answered "transportation," they could have thrived. They might have acquired auto companies and airlines. Here is that article, published in 2006 in The Harvard Business Review. 

On an individual level, that is the professional, Levitt's mandates translate into the question: "What value do I create for a particular business?" In my coaching practice, I tutor clients in a job search to present what they can actually do for a future employer. It's not about supposed function. It's about results. And achieving them better, faster and more affordably than other applicants.

In most cases you have only one shot in communications. Jane Genova is a communications coach and content-creator. Complimentary consultation (please text 203-468-8579 or email janegenova374@gmail.com) 




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