“FOR THE PR INDUSTRY TO CLAIM THE HIGH GROUND IN 2020, WE NEED TO DO THE FOLLOWING…”

PRCA: The Future of the PR Industry

Michael FrohlichMD, Ogilvy Public Relations/LondonMD, EAME Consumer Marketing PracticeBoard Member, Ogilvy & Mather

Q. Are the Advertising and Digital industries eating our lunch and threatening the future of the PR Industry?

A. NO

1. SIZE & SCALE2. THE PERCEPTION OF PR3. EDUCATION4. ROI5. SO WHO IS EATING OUR LUNCH?

INSERT GNOME VIDEO

"I am concerned that yet again the PR industry has provided a platform for an advertising agency’s creative ideas in such a public way.

If we are to truly compete then we must showcase and celebrate our own ideas – we have enough great ones without relying on others”

Commentary

1. SIZE & SCALE2. THE PERCEPTION OF PR3. EDUCATION4. ROI5. SO WHO EATING OUR LUNCH?

1. SIZE & SCALE

2011, the total billings of the top 15 UK PR and Ad agencies;

£540million versus £3billion. Six times the size.

1 2 3 4 5 6 7 8 9 10 11 12 13 14 150

50000000

100000000

150000000

200000000

250000000

300000000

350000000

400000000

PR AgenciesAd Agencies

Top 15 UK Agencies

Fee

In

com

e

2011

(£)

The advertising/creative industries are not going anywhere.

Advertising is not dead.

1. SIZE & SCALE

We will exhaust ourselves with the fight if we continue.

We must join in and embrace the opportunities.

We need to move it from:

PARENT TO CHILDto

ADULT TO ADULT

1. SIZE & SCALE

• Social Intelligence: Listening and analytics through news and community

• Influencer Relations• Social news content creation and

activation• Issues & Crisis Management• Community Activation (with One)

• Social Intelligence: Listening and analytics through customer data

• Social CRM• Social Content Activation• Community Activation (with OPR)

1. SIZE & SCALE

"What has happened with the digital and social media revolution around our industry is that it has actually made it more relevant and not less relevant“

“The advertising and communications industries used to grow in line with GDP, in recent years it has been outperforming it.

Why? We moved from being the TV industry to the digital and social industry.”

David Jones, Global CEO, Havas Media

Global social media revenue is forecast to reach $16.9 billion in 2012, up 43.1% from 2011 revenue of $11.8 billion

Gartner, Inc.

2. THE PERCEPTION OF PR

“In popular culture ad execs are immortalized with powerful characters like Mad Men's Don Draper who positions Kodak's slide projector for success in part by singlehandedly christening it the "Carousel“

PR execs, meanwhile, are portrayed by characters like Sex and the City's Samantha Jones who seem to do nothing but throw parties for a living.”

Fortune Article: November 2012

2. THE PERCEPTION OF PR

e2. THE PERCEPTION OF PR

3. EDUCATION

43% of agency heads say a PR degree makes no difference when recruiting graduates.

And a further 34% say it actually makes graduates less attractive.

PRCA Survey 2012

To secure our future in 2020, we need to invest in our present.

4. ROI

5. SO WHO IS EATING OUR LUNCH?

?

5. SO WHO IS EATING OUR LUNCH?

FOR THE PUBLIC RELATIONS INDUSTRY TO CLAIM THE HIGH GROUND IN 2020, WE NEED TO THE FOLLOWING:

Commit to the PR career

choice

Standardise new ROI metrics

The high ground in

2020

Re-examine Earned Media

history

Embrace our friends

THANK YOU