PR Week has released its 2003 Technology PR Report and it makes for some interesting reading.
The report is headed with doom and gloom. Reduced sales and cut backs – that’s to be expected, but there are some more interesting angles in the report I’d like to address.
When the big PR firms began to really expand across the globe, when advertising groups started buying up PR firms, suddenly the message was that one global agency is the only way to go.
They tell us it will save costs, bring uniform reporting etc. etc. In fact everyone should have one.
The quotes from the large agencies in the report underline this inevitable trend. In fact there is not one small agency quoted, not one rebuttal. It’s accepted as fact that one global agency is the only way to go.
Eh. Excuse me?
I don’t pretend to be with world’s greatest PR practitioner. I don’t have an intimate working knowledge of every PR sector, however I know quite a bit about global technology PR. I have worked in both the in-house and the agency side of the fence on a global basis and I have the scars to show it.
Nothing is that simple.
The success of any PR campaign is dependant on one thing and one thing only – People. This is where the “one global agency is the only way” argument falls down.
Successful global PR using one agency firstly depends on the client’s internal organization chart supporting that structure.
In companies where there is decentralization, you cannot successfully force unified Public Relations on your outposts for a prolonged period. Sure you can put it in place, but if the locals are restless and they have power they will make sure it fails.
Secondly, can these global agencies prove beyond a reasonable doubt that they are the best agency with the best people in each local market? Or do you take on their local agency because it’s easier? I know I want my dollars being spent on the best, not the path of least resistance.
Global agencies do (or should) offer savings in terms of systems, uniform billing, knowledge managemet etc. but it’s not free. You are paying for it.
For some companies a global agency works very well, but contrary to what PR globalists will tell you, it is not the only way to do PR. Furthermore I have yet to see a firm ROI study that evaluated the actual cost-benefit analysis of a global agency versus best of local breed with a client-side management function.
I sympathize with large agencies that want to get synergies from their large global presence. But when that synergy is at the expese of recognizing that no firm is the leader in every market, when that synergy fails to acknowledge the fundamental importance of good people above everything else, then I shout stop.
I recognize that global agencies do work for many firms, just let’s not pretend it’s for everyone. It’s not. Ask to see their bruises.
This brings me to the next Red Herring (RIP) in the report. Consolidation.
“Oh the technology industry has consolidated we’re going to be left with a few big players.” Mmmm. I think I heard this before. The last time was 1994 I think when the PC market for software was “dead”.
There is still a host of innovation taking place. The Internet, wireless, person to person communication and open source is throwing up new opportunities every day. There are thousands of new start-ups. Where’s the few players?
The nature of technology is change. That’s a reality. If the market is stagnant where did Google and Salesforce.com to name but two, come from?
I think the point being made here is that there are few big players left. That is, few large companies who will pay the large retainers for large firms. This is the flaw of excluding the medium and small sectors from an industry study like this.
The technology market is going through a difficult time, it is changing, but it’s not going anywhere for the moment.
One of the other major themes that comes from the report is the importance of PR focussing on the bottom line. This I completely agree with. We as a profession can be sometimes blamed for losing sight of the actual impact of our work on the health and success of our clients/employers. ROI is king, measurement is essential.
Now while the report talked about ROI, I was amused that in the same breath it was talking about branding. I’m not sure branding and ROI are synonymous bedfellows. But let’s not get into that old branding chestnut just now.
I feel much better now.