The Second Decade of the Council Brings Great Promise

 

The Council of Public Relations Firms turned 10 this year, and I think what this organization has achieved is worth celebrating. I also believe those achievements have fortified us for whatever lies ahead.

 

In 1998, the Council ended its first year with 39 member firms. Today, firm membership stands over 100, and our members represent some 12,000 employees in more than 40 U.S. cities and in 70 countries. That is a testament not only to the role of the Council in our industry, but also to our industry's role in today's global business world. Since 1998, revenues for PR firms in the U.S. have grown from $2.5 billion to a projected $4.7 billion for this year — evidence of the rising value of the services we provide.

 

The Council — by pooling all of our strengths and resources — has been an important part of this growth.

 

Ten years ago, Facebook and MySpace didn't yet exist; today, the popular social networking sites are a primary way that people around the world connect online — and PR is a lead discipline for tapping into this potential.

 

Indeed, throughout all this change — and, specifically, as one-directional mass communication has given way to multilevel conversations with consumers — PR firms have not only kept pace but often have led the way in shaping how new tools will be used and helping our clients stay up-to-date. 

 

Agencies have taken on ever-growing roles as trusted partners for companies looking to build equity, trust and authenticity. Companies increasingly seek our counsel in managing issues and crises. And more and more, they look to us to help navigate key new concerns around social responsibility and stakeholder engagement. PR firms are making real, high-level contributions to corporations.

 

While the economy is going to test all industries in the months ahead, I think the public relations industry is in a position of strength.

 

Public relations agencies will be the most efficient way for companies to access the breadth and depth of communications and marketing expertise that they will need. And I believe the value of public relations will be clearer than ever. In fact, when I became chairman of the Council of PR Firms last year, I said that I didn't think there had ever been a better time in PR — I still feel that way today. We've been through tough economic times before, and we've emerged stronger and better.

 

So, despite the tough economic times we're facing around the globe right now, I believe the public relations industry — and PR firms, in particular — will continue to grow because of the relevance of the services we provide. 

 

With all of these things, I see great times ahead for both the Council and our industry. Most of you reading this can attest to the growing sophistication of our business. Companies increasingly are turning to communication and public relations functions — and to agencies — for more strategic and higher-level advice. And the current patterns indicate that corporate public relations will have more responsibility for ethics and advocacy in the future. For agencies, that means we will need to provide sophisticated, sound counsel.

 

At the Council, we are committed to helping member firms find and attract the additional talent we'll need to meet these responsibilities. For instance, we all know that our industry needs more diversity in skill sets, thinking, educational background and experiences. I believe we can achieve this as agencies by doing these things: working more closely with the colleges and universities that train future PR professionals to make sure they understand the evolving needs of PR firms; encouraging mid-career professionals from other industries — business, law, technology (wherever we have needs) — to consider public relations and then helping them with the transition into our world; and providing continuous training of the talent we already have — preparing current PR professionals to be ready to take on expanded counseling roles for our clients.

 

The Council's leadership training program with Harvard is one example, and as public relations helps navigate the increasingly complex stakeholder "ecosystem," other alliances will occur. And, of course, we will have to be sure our compensation structure is competitive with other industries so that we can pursue top-notch graduates.

 

A broader role as counselors also will open the door for public relations to lead more integrated pitches. As the value of the services we offer becomes clearer to clients and prospects, our role as an equal contributor in the overall marketing mix will become clearer, too.

 

The potential that lies ahead is significant. And our industry's advances so far reassure me that it is attainable. Looking back again at revenue growth for a moment, I think it's also important to point out that revenues for PR firms in the U.S. have nearly doubled over the last 10 years. That outpaces the aggregate growth of the marketing agency sector — the agencies in all disciplines — whose revenues increased just 17% over that period. While other marketing communications agencies have a larger share, I do believe our rate of growth is a clear demonstration that the perceived value of what we do is rapidly on the rise.