Public Relations Industry Trends

Agency Consolidation

The PR industry has been consolidating in recent years. Company acquisitions focus on acquiring expertise to expand geographic coverage, gain industry knowledge, and acquire specific service capabilities. Commonly, multiple PR firms are owned by the same holding company. The largest holding companies operate globally to meet the needs of multinational companies.

Expanding Role of PR Specialists

Companies increasingly are expanding the reach and focus of their branding strategies to global markets. Even small PR firms with no international offices are serving clients with global needs. PR specialists are also being included in development of advertising and marketing strategies for clients, taking advantage of their editorial knowledge and positioning experience.

Client Consolidation

Many client industries are consolidating. Mergers often result in the cancellation of the PR agency relationships of the acquired firm. Such consolidation also reduces the number of prospective future clients for PR agencies. Financial services and telecommunications, in particular, have both seen significant merger activity.

Expanding Online Media

New media platforms, such as online news sites, chat rooms, and Internet blogging, have fragmented the media landscape. Advertisers no longer have as much control over their commercial messages, as Internet users decide when or if to view the messages. Blogs and chat rooms are used to provide product, subject, or personality commentary. Rumors and negative news about a company or product can be quickly disseminated online, outside the control of traditional PR communications.