It’s interesting to see the reaction to the Ad Week finding on a “slump” in PR spending last year.
There’s a saying that “one Swallow doens’t make a Summer”, and similarly one negative report on PR spending doesn’t mean the industry’s fall from grace is continuing.
PR has been through a hard and harrowing time since 2000, mirroring the harsh economic realities faced by practically every industry and profession. Agencies that grew and expanded were hit hard and many didn’t survive the shake up.
One upshot of this decline has been the incredible rise of independent PR practitioners who are here to stay and add a new dimension to the business.
The other trend created by any downturn is the need for marketing and PR owners to justify expenditure and focus on activities that can be readily measured and demonstrated.
However, I firmly believe 2004 is the beginning of the upswing. Economic indicators are positive and recent conversations I’ve had with a large number of agency people reinforces the feeling that things are getting a little easier.
Lou Hoffman has written an op-ed for Technology Marketing on the re-emergence of a growing number of new technology start-ups. According to his article, Venture Capital firms closed 400 funding deals in the first quarter of 2004 – worth $4.6 billion… that’s better than it’s been for quite some time.
It’s human nature that people continue to be cautious in spending and expansion, but optimism is returning. I think we need to look on the bright side. If you compare the economic environment for Public Relations now with how it was in 2001 I’ll take today’s situation!
So chin up. Focus on how you can help your clients be successful. Focus on delivering value and well defined services. We’re not out of the woods yet but there is a clearing in sight.
“The good news for PR professionals is that today’s entrepreneurs are taking a more sane approach to building their empires.”
Murphy's Law 