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Executive Summary – World PR Report 2016

Article by Francis Ingham, Chief Executive of ICCO

The ICCO & PRWeek World PR Report is the definitive analysis of where the global PR and comms industry stands today; how it has been performing over the past year; and what it predicts will happen in the next few. Drawing on the breadth and depth of ICCO’s membership – 37 national associations, operating in 48 countries, and representing more than 2,500 agencies – it is a vital tool in understanding our industry.

What are the headlines?

Agency heads are optimistic. On a scale of 1-10, there is a global average of exactly 7. The most optimistic markets are the UK (8.1), and the Middle East (8.0); the least are Latin America (5.9), and Africa (6.0).

And they are expecting an increase in profitability, with a score of 6.2. Leading the pack is North America (7.2), followed by the UK at precisely 7. At the other end, we have Latin America again (5.2), and Western Europe (5.7).

Both of those findings deserve celebration, given the at times tempestuous and uncertain state of the world economy. What is driving this performance? I would highlight three factors, which we have seen for the past few years now, and which are remarkably constant region-by-region.

The first is chief executives taking corporate reputation seriously. Quite simply, the business community around the world is more aware than ever before of the fact that their most important asset is their reputation.

The second is that marketers are taking their spend away from other disciplines, and diverting it into more effective mediums of PR and comms. And the third is that clients are increasingly asking public relations firms to provide non-traditional services.

Those last two points amount to one incontrovertible trend – in an increasingly integrated marketing world, PR’s nimbleness, insight, and creativity is beating the competition.

What have been the main practice areas of growth?

Four stand out head and shoulders above the rest – digital comms; corporate reputation; marcomms; and public affairs. And when agency heads are asked to predict which sectors will drive growth over the coming years, they name exactly those four again.

Obviously, there are variations by region, reflecting different local priorities, and different levels of market maturity. But the message is clear – those areas have driven growth in the past, and are set to do so again in the future. Looked at by sector, we again see four key areas of growth now and in the future – technology; consumer; healthcare; and financial and professional services. And underpinning all of this behaviour is the crucial role PR and comms agencies now play in social media and community management, and in creating content across the whole range of media – areas where wise agencies are making significant investment. So far, so encouraging.

But what of the challenges faced by the industry?

It will come as no surprise that two perennial ones are right up there – meeting profit margins, and handling general economic conditions. The first is a symptom of PR’s inability to charge appropriately for the value it delivers – former ICCO chairman Richard Houghton’s regular lament that ‘Fridays are free’; the second is something over which we have no control.

The area where we certainly have the ability to make a difference is talent. In six of the nine world regions, it tops the bill as the key challenge. In fact, only in Asia does talent not rank in the top three. Although our industry continues to power ahead, its growth is being hindered by our failure to attract and then to retain the very best.

Within that challenge are two specific areas of concern: hiring senior staff, and attracting people from non-traditional background. The latter is of particular concern to ICCO. If agencies keep on recruiting the same type of person, with the same type of background, they are automatically excluding themselves from large parts of the market. The more varied teams are, the abler they are to deliver excellent services to the widest possible range of clients.

I would make two final observations: First, and it is a point made by several contributors from different regions, the industry has reached a happy place of maturity. Social media and content may be the biggest areas of growth, but there is still room for the older skills of PR and comms, such as media relations. And that place exists in established and developing markets.

There is, quite simply, a home for all branches of our profession.

Second, what a brilliant time to be in this industry. Even in difficult economic circumstances, PR and comms agencies are profitable, growing, and optimistic.

How would I sum up the future? Bright. And getting brighter.

Download a free copy of the ICCO & PRWeek World PR Report 2016 here

 

ICCO and PRWeek launch World PR Report 2016

The World PR Report 2016, published by ICCO and PRWeek, has today launched at the Global ICCO PR Summit in Oxford.

The report, presented by Francis Ingham, Chief Executive, ICCO, is the annual analysis of the international public relations industry. The report includes a breakdown of the top 100 global agencies, market analysis from regional leaders, and a report on agency growth, opportunity, investment plans, and talent challenges.

The report revealed that agency heads are optimistic – on a scale of 1-10, the global average for optimism is 7. The most optimistic markets are the UK (8.1) and the Middle East (8.0). The least are Latin America (5.9) and Africa (6).

When asked about their expectations of profitability, North America came in highest with a score of 7.2, followed by the UK at 7. Latin America came in lowest at 5.2.

Noted areas of growth include digital communications, corporate reputation, marketing communications, and public affairs. These growth areas vary by region, reflecting differing local priorities and differing levels of market maturity.

Commenting on the Report, Francis Ingham said: “The World PR Report is the definitive analysis of the global PR industry. It is only by understanding where we are and in what direction we are moving that we can continue to drive growth and invest in opportunities. We are thrilled to see that the industry is bright, and getting brighter.”

Danny Rogers, Editor-in-Chief, PRWeek, said: “We are very proud to present the World PR Report 2016; the best, and most contemporary, guide in existence to the PR industry across the globe. It has been produced by PRWeek, the pre-eminent source of news and analysis of the sector, and ICCO, the voice of PR consultancies around the world.

“As well as providing the definitive ranking of the world’s top 100 PR consultancies and further listings of local agencies, the World PR Report 2016 has asked this vast network of PR firms about the recent trends in their business, along with their forecasts for the year ahead. We look forward to the next year, and revisiting these rankings and indicators in a year’s time to gauge progress.”

Full analysis and commentary of each of the markets is available in the World PR Report, which will be published by PRWeek both online and in the magazine.

About ICCO
The International Communications Consultancy Organisation (ICCO) is the voice of public relations consultancies around the world. The ICCO membership comprises national trade associations in 48 countries across the globe in Europe, Africa, Asia, the Americas and Australia. Collectively, these associations represent some 2,500 PR firms.
www.iccopr.com

PRCA UK Census 2016 reveals that the PR industry is worth £12.9bn

Article by PRCA

The PR Census 2016 launched by PRCA has revealed that the UK PR industry is worth £12.9bn – over £3bn more than previous figures in 2013.

In 2016, the PR industry’s value is estimated to have grown by 34% since 2013 when it reached £9.62bn.

The PR Census 2016 has also revealed that the PR industry has grown to around 83,000 employees. This is an impressive level of growth since 2013 when it was 62,000 strong.

Launched yesterday, the PR Census 2016 is the most comprehensive and authoritative analysis of the PR industry, developed by the PRCA in conjunction with PRWeek and global research house YouGov.

Francis Ingham MPRCA, Director General, PRCA, said:

“Three things stand out for me from the PR Census 2016.

“The first is growth. Our industry is surging ahead, becoming bigger and bigger. And that growth is seen in pretty much every sector. The industry, it seems to me, has settled down to a balance between what we used to think of as its new and its traditional forms.

“The second is difference. Differences in gender balance; in pay; in expertise and duties. The industry is composed of plenty of unique hubs of PR excellence all around the country, all powering forward in slightly different manners.

“And the third is challenge. The gender pay gap is still obvious, and still troubling. We still recruit from too narrow a circle, denying ourselves access to some outstanding talent. And far too many of our industry still –remarkably- turn to AVEs when measuring their impact.

“We intend using every bit of influence we have to address every one of those challenges.”

Danny Rogers FPRCA, Editor-in-Chief, PRWeek, said:

“As someone who has been in and around this industry for two decades – first as a graduate trainee in PR, and later as an industry editor and author – what strikes me about the PR Census, is how little the big themes actually change.

“We are still discussing the future of print, the hot growth of healthcare and tech, the difficulties of measurement and the lack of diversity. But the industry is getting most things right. Because for most of those two decades UK PR spend has been growing rapidly, and continues to do so. Another constant is PR’s adaptability – and this is more critical than ever as technology and media rapidly transform each other.”

The PR Census 2016 also revealed:

Demographics

The PR industry remains a young industry, with an average age of 28. It is a female-led industry, with 64% of its employees being women. 34% of PR people have children or dependents.

There has been little change in PR’s diversity since 2011, with 91% being white and 89% being British. However, the youngest generations in the industry represent important improvements in diversity levels.

Undergraduate degrees remain the predominant highest form of education, a fact that becomes more prevalent with each younger generation.

Opinions

51% of industry members believe that PR is a profession. 40% see it as an industry.

The Barcelona Principles 2.0 are the leading form of PR evaluation, but AVEs remain a significant measurement format.

Technology and health are the mostly hotly-tipped sectors to increase investment in PR in the coming years.

Digital, S.E.O., and online communications are seen as the tasks that have most increased in importance over the last two years, and also those that will increase most in the coming years.

Sales promotion, general media relations and writing articles, newsletters etc, are the roles thought to have most decreased in importance over the past two years.

What do we do?

Our leading duties are general media relations, media relations strategy planning, and digital and social media.

The senior members of the industry oversee communications strategy development and reputation management; while younger members handle general media relations and writing.

Technology and consumer services, media, and marketing continue to be the most prevalent sectors in which PR agencies work.

PR agencies are most likely to be made up of between 11-50 people. In-house teams are overwhelmingly made up of 2-5 people, regardless of organisational size.

Salaries, benefits and working hours

The average PR salary is £45,100, down from £53,781 in 2013.

The average agency salary is £44,805, down from £54,311 in 2013. Pay at the senior levels has fallen, but professionals who are Account Director-level or below have seen a small increase.

In-house salaries increase more uniformly, and the average salary is £43,591, down from £50,438.

The average freelancer salary is £56,789, down from £73,322 in 2013.

There is a significant pay disparity between men and women, an average of £9,111.

The highest salaries in PR agencies go to those handling central government work, alongside retail and wholesale, and food, beverages and tobacco. In-house salaries peak for those working for technology, finance, and utilities companies.

PR professionals are contracted to work, on average, 35 hours a week. However, the average amount of time they are actually working is 45 hours a week.

The leading form of flexible working in the PR industry is flexitime (core hours with flexible start and finish) which is taken up by 28% of the industry.

ENDS

The market sizing data was calculated by taking a combination of historical data from the previous PR Censuses published in 2011 and 2013, combined with PRCA benchmarking studies, and the Government’s ONS tables of industry sizing and growth.

The online survey generated 1,874 responses, and was generated by YouGov using two different sample sources:

  • Targeted sample sent to PRCA members and PRWeek subscribers
  • Public link on PRWeek and PRCA websites

The fieldwork was undertaken between 17th February – 26th April 2016.

 

About PRCA UK

Who we are: Founded in 1969, the PRCA is a UK-based PR membership body, operating in 45 countries around the world. We represent in excess of 20,000 people across the whole range of the PR industry. The PRCA promotes all aspects of public relations and internal communications work, helping teams and individuals maximise the value they deliver to clients and organisations.

What we do: The Association exists to raise standards in PR and communications, providing members with industry data, facilitating the sharing of communications best practice and creating networking opportunities.

How we do it and make a difference: All PRCA members are bound by a professional charter and codes of conduct, and benefit from exceptional training. The Association also works for the greater benefit of the industry, sharing best practice and lobbying on the industry’s behalf e.g. fighting the NLA’s digital licence.

Who we represent: The PRCA currently has more than 400 agency members; 270 in-house communications teams from multinationals, charities and leading public sector organisations; and thousands of individual members.

 

PRWeek and ICCO announce strategic partnership to benefit global industry

ICCO AND PR WEEK

Following the partnership announced last year between PRWeek and the PRCA, PRWeek has formed a strategic alliance with the International Communications Consultancy Organisation (ICCO)

PRWeek and ICCO – the global organisation that covers the national trade association of more than 32 countries across the globe – will work together on cross promotion of key global events as well as  joint content and commercial initiatives. With offices in London, New York and Singapore, PRWeek is the leading global media brand covering PR and marketing communications.

The two will collaborate on the ICCO World PR Report and ICCO will become a partner of PRWeek’s global Powerbook, some smaller events and content products to the ICCO membership.

ICCO members will be able to benefit from discounted attendance at PRWeek events as well as preferential subscription packages whilst the two bodies will also be launching a series of global round table events. “We are proud to partner with ICCO on projects that underscore the power and growth of this important market”, said Julia Hood, global brand director of PRWeek.

PRWeekjobs, already the leading recruitment destination in the communications industry will shortly power a jobs portal on the ICCO site and provide  ICCO members with the latest jobs and career advice

Francis Ingham, ICCO Chief Executive, said: “I’m very pleased to be announcing this strategic partnership between ICCO and the leading global brand for PR insight, PRWeek. With a busy schedule of activities ahead of us, this promises to be a very fruitful relationship, and something that is sure to benefit the global PR industry.”

About ICCO
The International Communications Consultancy Organisation (ICCO) is the voice of public relations consultancies around the world. The ICCO membership comprises national trade associations in 32 countries across the globe in Europe, Africa, Asia, the Americas and Australia. Collectively, these associations represent over 2,500 PR firms.
www.iccopr.com

If Cannes is an indicator, the future belongs to PR

Written by- Francis Ingham

500_francisingham2Print@PRCAIngham

PR’s reputation on La Croisette is growing, so now it’s time we took on the ad agencies.

No word carries such mystique in the PR world as ‘Cannes’. It conjures images of rosé wine; helicopters from Nice; yachts; topless sunbathing; and random celebs making tangential points about the merits of their clients’ products. And like all great myths, that parody contains some truth.

But having been here with ICCO for the second year, I also know Cannes is so much more than that. Sure, the location is meant to entice. There are plenty of advertising execs. And Kim Kardashian had a moment when her yacht wouldn’t fit into Cannes harbour for her to convey the groundbreaking observation of ‘maybe I tweet too many selfies in a bikini’. But Cannes does represent and celebrate the extraordinary creativity of the PR industry. So, what lessons did I draw?

– PR is flourishing. Our industry won many more awards this time. MSL should be proud of its #LikeAGirl campaign – pride confirmed in victory.

– PR is here in greater numbers than ever – I bumped into dozens of agency heads, many here for the first time.

– PR is truly international. Judging by the Cannes badges, this year there were many more countries there.

– PR’s future is assured. ICCO ran and made possible the Young Lions programme, celebrating young PR. And the ideas generated were astonishing in their breadth and sophistication.

– PR is growing globally. We like to think of the UK and US as world leaders – they are. But the Young Lions’ gold went to Sweden. The silver and bronze to Columbia and China respectively.

But the main point is this – PR represents the future; advertising the past. When PR first came to Cannes it was the poor relation. Poor in numbers; weak in submission content; disappointed in such a small number of wins. Today? It’s the thrusting, entrepreneurial member of the family, with the best ideas. Winning more business. Looked on with envy by – yes – its more cumbersome, less imaginative relations in advertising.

Of course, not everything is rosé (get it?). Too many people think they can’t win here, so they don’t enter. Our production values and the presentation of our content still need to improve. And we need to grab some of that advertising industry arrogance – the confidence to bid for big budgets and then spend them. In a straight fight, advertising still plans a little better; does creativity a little better. And yet…

The key attributes the judges looked for were excellence in campaign design and delivery. And the ability to link commercial purpose with wider social change. I’ve no doubt that those metrics are ones on which PR can happily base its future.

The agency bosses I met this week recognised the challenges, but were incredibly positive about addressing them. They were proud to represent their industry, and optimistic about its future. Representing the PRCA, now the UK’s biggest professional body, and ICCO, the largest international one, I felt the same. If Cannes is anything to go by, the future belongs to PR.

Original article from PRWeek

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