Pr outlook 2013 by msl

Inside the Industry’s Mind and the 2013 Outlook

Public Relations

A report by MSLGROUP IndiaPart of the Publicis Groupe

in India

MSLGROUP IndiaMSLGROUP India is the nation's

largest PR and Social Media

network. Made up of two top

agencies, MSL India and 20:20

MSL, MSLGROUP India

combined includes 15 offices,

575 staff and an activation

network reaching an additional

125 Indian cities. With a proven

track record of servicing

multinational and Indian

corporations since 1989 and 40

senior counsellors with 15 or more

years of communications

experience each, clients, staff and

business partners benefit from

the depth and breadth of insight

and experience within its teams.

MSLGROUP AsiaFor 23 years, MSLGROUP's Asia

team has counseled global,

regional and local clients,

helping them establish, protect

and expand their businesses and

brands across this fast-growing

region. Today, MSLGROUP has

the largest PR, social media and

events teams in Greater China

(16 offices and 1,000 colleagues)

and India (15 offices and 575

colleagues) and is actively

working to lead the

development of the industry

with the regular publication of

whitepapers/reports and

innovative Learning & People

Development programs to

nurture talent. The MSLGROUP

Asia team includes 38 owned

offices and 1,675 colleagues in

Beijing, Shanghai, Guangzhou,

Chengdu, Hong Kong, Macau,

Taipei, Tokyo, Seoul, Singapore,

Kuala Lumpur, Mumbai, Delhi,

Ahmedabad, Pune, Bangalore,

Chennai, Hyderabad and

Kolkata. An activation network of

colleagues reaches an additional

125 Indian and 100 Chinese

cities and a strong affiliate

partner network adds another 23

Asian cities to our reach.

MSLGROUP Asia's teams have

been recognized as leaders by

multiple industry groups,

including most recently Hanmer

MSL India ('PR Agency of the

Year 2011' by PRCAI), Luminous

('Local Hero/Agency of the Year

2010' by Marketing Events Asia),

Genedigi Group China

('Innovative China SMEs' by

Forbes China), ICL MSL Taiwan

('Agency of the Year 2011' by

Taiwan Advertiser Associate), and

has won more than 50 awards in

the last two years. Learn more

about us at: asia.mslgroup.com +

Twitter + Facebook

MSLGROUPMSLGROUP is Publicis Groupe's

strategic communications and

engagement group, advisors in

all aspects of communication

strategy: from consumer PR to

financial communications, from

public affairs to reputation

management and from crisis

communications to experiential

marketing and events. With

more than 3,500 people across

close to 100 offices worldwide,

MSLGROUP is also the largest

PR network in fast-growing

China and India. The group

offers strategic planning and

counsel, insight-guided thinking

and big, compelling ideas -

followed by thorough execution.

Learn more about us at:

www.mslgroup.com +

http://blog.mslgroup.com +

Twitter+ YouTube.

Publicis GroupePublicis Groupe [Euronext Paris

FR0000130577, part of the CAC

40 index] is the third largest

communications group in the

world, offering a full range of

services and skills: digital and

traditional advertising, public

affairs and events, media buying

and specialized communication.

Its major networks are Leo

Burnett, MSLGROUP, PHCG

(Publicis Healthcare

Communications Group),

Publicis Worldwide, Rosetta

and Saatchi & Saatchi. VivaKi, the

Groupe's media and digital

accelerator, includes Digitas,

Razorfish, Starcom MediaVest

Group and ZenithOptimedia.

Present in 104 countries,

the Groupe employs

53,000 professionals.

www.publicisgroupe.com |

Twitter:@PublicisGroupe |

Facebook:

www.facebook.com/publicisgroupe

Table of contents Executive summary.................................................... 04

What our last industry audit said................................ 06

India PR survey: High on growth, big on change......... 10

What to watch out for in 2013...................................... 24

The rise and rise of digital PR..................................... 30

What the media thinks about the industry................... 36

The agency-client marriage.......................................... 42

India’s PR landscape.................................................... 48

The public relations (PR)

industry in India is on the cusp of

a profound change. As it finds

itself speeding past the

Information Age and into the

Conversation Age, its scope is

expanding well beyond media

relations. Its strategic value is

finally being acknowledged.

As businesses realise that

one-way marketing

communications have limited

value and that engaging

stakeholders through new tools

like storytelling and thought

leadership is the key now, PR is

finally coming of age.

Therefore, it is important to

understand the industry's state

of mind, what it considers to be

the biggest hurdles to its

evolution, the greatest

opportunities and how it sees

itself. It is important to give the

industry a voice.

It is precisely this that our report

aims to do. In an industry where

such studies are rare,

MSLGROUP India conducted an

India-wide survey - and,

importantly, across the executive

hierarchy - to ensure that PR

practitioners have their say.

From growth prospects to the

way new business is being

generated to the hottest new

trends, the study covers it all.

The results, as you will see, are

heartening as well as revealing.

In addition, this report

incorporates an equally vital

dipstick survey of the way media

- a key stakeholder - perceives

the PR industry. Mediapersons

listed several suggestions that

would make for a healthier

relationship with PR

practitioners, and these are

detailed in the pages that follow.

Finally, the report tackles

another prickly issue - the

relationship between agencies

and their clients. This

relationship is often

tempestuous, but it need not be

so. We examine the gap

between expectations and

reality on both sides of the

divide and suggest solutions.

MSLGROUP India hopes that

this report will launch

conversations across the

industry and among other

stakeholders. We want it to

become part of the process that

leads to a unified industry

approach towards the

challenges before us - from the

talent crunch to the gulf

between value delivered and

fees paid.

So, let's talk.

10

What our last industry audit said

n January 2012, MSLGROUP India released the 'Public Relations Industry in India: Challenges, Opportunities and 2012 Outlook' report.

Among the issues it highlighted was the rapidly-growing gap between the perception of the industry's size and the reality, and the problems that creates. The report pointed out that the focus was shifting away from the real challenges: PR is an underpaid industry - hence, its talent and infrastructure issues; the misconception that agencies are making millions - giving clients the opportunity to think they can afford lower fees; the overall perception problem that the industry has - it is often thought of as a collection of spin doctors rather than of strategic communications consultants.

There are other problems - too many clients view PR only in terms of media relations. While the average advertising retainer is Rs 2 crore (about $450,000) a year, PR retainers are in the Rs 20-lakh (about $45,000) range.

PR is a powerful business tool, but is rarely seen as one. Clients' reluctance to recognise its value, the lack of a fee-per-resource norm and under-cutting are responsible for retainers not rising. Also, PR budgets tend to be static and are the first to be slashed in bad times.

The shortage - and flight - of talent remains an uncrackable code. This demand-supply gap will only widen with time. It must be understood that it's not only about retaining talent, it's also about finding the right people. And it's a vicious cycle - with the abysmally low retainers and salaries, talent will always look elsewhere.

Talent is a make-or-break issue for the industry, and training could be a large part of the solution. Training needs to be conducted across all levels (at MSLGROUP India, 2%-3% of total revenues are spent on training, which includes interaction with industry experts and hands-on workshops).

In the past, most industries joined hands with academic institutions to evolve courses that covered relevant subjects and produced employable professionals. It's time the PR industry did the same.

It's not all gloom and doom, though. There is a growing realisation that PR agencies are strategic partners, not glorified couriers sending out press releases. Clients in

Understanding the Public Relations Industry in India: Challenges, Opportunities and 2012 OutlookA report by MSLGROUP India, part of the Publicis Groupe

8

9

More than anything else, it's

India's economic growth that

will sustain us. The PR industry

will become critical for

established Indian companies

and foreign firms looking to

make inroads here.

India will eventually look to the industry for strategic communications, which offers an opportunity to offer integrated solutions, especially because the line between PR, advertising and digital is blurring. Cost-effective communications plans - those that span advertising, PR and digital media - make sense to clients too. With the advent of the Social Media Age, this new medium is slowly becoming part of many companies' repertoire.

More than anything else, it's India's economic growth that will sustain us. The PR industry will become critical for established Indian companies and foreign firms looking to make inroads here.

There are gaps in the industry, and yet there are opportunities - partnerships. It's time to think of all stakeholders - clients, employees, the media - as 'partners'. The industry's success will depend on how it chooses and manages these relationships. This is where we can raise our

skills and standards, help clients provide better briefs, raise the standards of measurement and source and manage talent better.

According to the 2007 report, 'The State of the Public Relations Industry' by Paul Holmes, the growth of PR in the West has plateaued in the 9%-11% range. In India, the industry is growing at least twice as fast.The last decade has been one of unprecedented growth, consolidation and globalisation for the PR industry in India, but few understand how this will impact communications professionals.

This is a significant shift for agencies, the media and clients. Clients will need global thinkers with global mindsets.It's time to gear up for that challenge.

PR is a powerful business tool,

but is rarely seen as one. Clients'

reluctance to recognise its value,

the lack of a fee-per-resource

norm and under-cutting are

responsible for retainers not

rising. Also, PR budgets tend to

be static and are the first to be

slashed in bad times.

India PR survey: High on growth,big on change

12

or too long, the Indian PR industry hasn't had a

voice. While practitioners grapple with the many

challenges before it - from a fee-value mismatch

to a talent crisis - the lack of a strong industry association

and cohesion within the industry has meant that the issues

rarely get debated. As a result, the solutions - while obvious

- and a unified approach remain out of reach.

After the release of MSLGROUP India's 'Understanding the

Public Relations Industry in India: Challenges,

Opportunities and 2012 Outlook' report, the need to tap the

industry's mind was clear. There was an urgent need to

understand what the industry collectively felt about its

growth prospects, the way ahead amid the strong economic

headwinds and how it would evolve in a fast-changing

communications landscape.

MSLGROUP India commissioned the Bangalore-based

market research and analytics agency Leadcap Ventures to

carry out a survey of PR practitioners across India to identify

the challenges that concern them the most, the

opportunities that they're eyeing and the evolutionary path

they expect to walk.

The survey - conducted in September 2012 - aims to finally

launch the debate that the industry so badly needs.

MSLGROUP India hopes it will be - to paraphrase

playwright Arthur Miller - the equivalent of the industry

talking to itself.

Methodology Sample size: 100, across three levels

Senior: Owners, directors, branch heads,

managing directors (38 respondents)

Middle: Senior managers, administrative managers

(31 respondents)

Junior: Assistant executives, trainees,

HR executives (31 respondents)

Geography: Six metros

Mumbai (17 respondents)

Delhi (17 respondents)

Bangalore (16 respondents)

Chennai (17 respondents)

Hyderabad (16 respondents)

Kolkata (17 respondents)

Survey included quantitative and qualitative questions

No stopping growthThe central theme that emerged was one of optimism -

51% of the respondents were bullish, asserting that the

industry would grow more than 20% over the next 12

months. Another 28% felt growth would clock between

10% and 20%.

Expectations within the industry remain high despite

slowing growth and global financial turmoil. It's also a sign

that the industry feels it is coming of age and that the

strategic value of PR is finally being recognised in a

landscape dominated thus far by advertising.

13

It’s no surprise, that 53% were full of optimism about the next year; 43% were somewhat optimistic. The pessimists – only

4% of those surveyed – were badly outnumbered.

The bedrock of the respondents' confidence was the fact that an overwhelming number of clients have left their PR budgets

untouched, despite the tough economic climate. While 63% of respondents said their clients' PR budgets are intact, 33%

said the budgets have in fact increased.

All figures in %

<10% 10%-20% >20%

51

28

21

53

34

13

32

36

32

Total Top Level Middle Level Low Level

68

13

19

What growth do you expect for your agency over the next 12 months?

51

All figures in %

21 13

Are you optimistic about the next year for business?


Somewhat Optimistic Highly Optmistic Somewhat Pessimistic Pessimistic

4

53

43

6

47

47

6

55

39

58

42

14

What have your clients done with their PR budgets?

51

All figures in %

21 13

Reduced somewhat Cut Drastically Untouched Increased

33

63

4

27

62

11

47

53


26

74

How much new business are you getting?

The implication: Corporations are understanding the role of

PR as a brand builder and in engaging stakeholders. The days

of one-way communication between stakeholder and

business, the industry feels, are fast receding. "PR will take on

a more mainstream role and drive a brand's perception and

marketing exercises. It is an invaluable tool in the shaping and

execution of marketing strategies. As such, PR is no longer an

allied function but an increasingly vital part of the marketing

mix," said Suranjana Ghosh, head (marketing), CNBC TV18.

No wonder that a significant amount of new business is

being generated from existing clients. While 61% said that

the overall quantum of new business was 'satisfactory',

25% said more than a fifth of new business was coming

from existing clients. About 31% of respondents said that

15%-20% of new business was coming from clients already

on their rosters, while 41% said existing clients accounted

for 10%-15% of new business.

61

13

Insignificant A little Satisfactory A lot

1

30

61

835

57

8

3

28

66

3

26


All figures in %

15

How much of your new business is from existing clients?

All figures in %

The exuberance percolated to respondents’ expectations

about the jobs the industry would create – 59% felt that

staff numbers would rise over the next year, bucking the

overall cautious hiring trends in the Indian economy.

Another 41% felt there would be no layoffs.

This is significant because allied industries, such as

media, have seen a reduction in staff counts over the past

24 months. While there have been only a few drastic cuts,

a few media houses are struggling and austerity

measures are expected soon.

Do you expect staff numbers to rise over the next 12 months?

6

47

25 22

32 39

29

<10% 10%-15% 15%-20% >20%

41

33

31

25

30

43

24


Will Rise Remain Steady Reduce

41

59

53

47

39

61

29

71


All figures in %

16

The greatest growth, say respondents will come -

expectedly - from digital media over the next five years,

but there's also great emphasis on integrated offerings.

The first edition of this report had indicated that integrated

communications were the way of the future. The report

said in the chapter 'From traditional PR to integrated

strategic communications':

"Clients in India will eventually look to their agencies for

strategic communications, not simply for media relations.

This is already happening. Companies such as Wipro ask their

agencies to help them understand how best to communicate

their messages and present them in a context that is

meaningful for clients, analysts, investors and journalists.

“Since the Indian PR industry is still nascent, there is an

opportunity to offer integrated solutions, especially as the

line between public relations, advertising and digital is

already starting to blur.

“As a result, many agencies have invested in creative and

digital arms. Cost-effective communications plans - that

span advertising, PR and digital media - make sense to

clients too.”

The industry clearly agrees - the second highest source of

growth, said the respondents, will be integrated offerings.

As Ghosh said: "Brands are reassessing their relationship

with PR agencies. From a client-vendor equation, PR now

needs to work more as a partner/strategic advisor for

brands. With a greater understanding of brands' long-term

goals and current market realities, PR should be able to

cross this hurdle more effectively." She added that

agencies could look to add services such as market

intelligence, thought leadership and - critically -

"seamless PR strategies" (integrated offerings, in

other words) "that straddle traditional as well as new

media options".

Sanjay Tripathy, EVP and head (marketing and direct

channels), HDFC Life identified internal communications -

as part of the integrated offerings bouquet - as an important

opportunity. "The PR industry can play a significant role in

internal communications. Today, every brand has

large-scale focus on employee branding, employee

retention, employee engagement and communications.

Employees are critical stakeholders for brands. The PR

industry must add this to their offerings to enhance their

scope and services," he said.

Among the verticals to watch in 2013, respondents

identified digital media as the hottest, followed by lifestyle

and technology.

All figures in %

Digital/Socal Integrated offerings More aggressive NBD Vanilla PR

31

15

5237

16

45

35

10

52

19

20

2

2 3

61


What will offer the greatest growth over the next five years?

17

Hottest verticals for 2013Digital/Socal

Lifestyle

Technology

Media and entertainment

FMCG

Healthcare

Others

Retail

Automobiles

Manufacturing

Banking, finanicalservices and insurance

3%6%

1%

48%

While these are in line with expectations, industry

experts believe that some of them will jump to the top

over time. Healthcare, in particular, followed by retail -

India has recently thrown open this sector, allowing

greater foreign direct investment - and financial services,

which would include banking and insurance, are being

watched closely by the industry. All these sectors are

growing fast and are seeing increasing investment. In

some cases, foreign majors are expected to make an

entry soon.

While the overall mood within the industry is bright, there is

great awareness of the formidable challenges that it faces.

To an open-ended question on what to expect in the near

future, respondents listed five main challenges.

Media: This was the most critical challenge, felt

respondents across all levels. There were multiple issues

on their minds - from the sweeping changes that

traditional media is dealing with to the emerging social

media space. "We will face serious challenges if we do not

adapt to the new media culture," warned one respondent.

In traditional media, respondents felt that the rise in

the number of media houses, especially the

mushrooming TV channels, is posing a problem.

Dealing with these large numbers, and the increasing

fragmentation of the audience, is tough. Besides,

respondents pointed out, the "fight for space in

publications" is getting more intense.

The insertion of social media into the mix has changed

the communications game. Respondents felt that,

while adapting to it is crucial, it is also challenging.

Digital competition: In keeping with the above

sentiment, PR practitioners across all levels were

Overcoming challenges

9%

13%

20%

18

Top-of-mind issuesThe talent crunch

certain that agencies would need to rapidly digitise and

build expertise in that field. This is because several

clients now put digital at the centre of their

communications strategy.

While it offers the biggest growth area, it is also a huge

change from the way PR works today. "[Adapting to]

digital [communications] products will pose the biggest

challenge," said a respondent.

Technology: The challenge of technology is the

challenge of the unknown. Just as social media crept

up on them and suddenly became all pervasive, PR

practitioners were unsure of what new breakthrough

technologies would emerge in the future and the

impact that would have on the industry. Adaptability,

they said, would become critical to survival. Equally

important was the readiness for an "uncommon

change" in communications technology. "Technology is

our concern as people like new things, new upgrades to

every technology," said a respondent.

Innovation: The next stage in the evolution of PR

would revolve around innovation, most respondents

agreed. Terms like "new avenues", "new-era products",

"new trends" and "ideas" were used regularly.

It was generally unclear to most, however, what it

means in practice. They are under pressure, said many

respondents, to come up with "the next big thing" but

there is a dearth of creative minds that can come up

with such path-breaking ideas. This concern was mainly

expressed at the middle and junior levels. A fresh

approach to PR, they felt, could become a

make-or-break issue.

Many respondents, especially industry seniors, said

that the demand for traditional PR was falling. While

knowledge of emerging trends was important, the

industry would have to find a balance - pointing again

to how critical adaptability is.

A few in the junior ranks felt that whatever the changes,

traditional PR would not die out. It would, they said,

continue to be an important part of the burgeoning

communications bouquet.

Perception of the PR industry: This was another

concern raised by the first edition of this report in

January 2012. Too many people, it pointed out, thought

of the industry as one large spin doctor or 'fixer'. Not

many understood its strategic value. As one

respondent said: "Our industry is not very popular."

Respondents - mainly senior level PR practitioners - felt

that the problem is two-fold. First, it's about creating

awareness about the industry in the minds of potential

clients. Second, there is a lack of understanding within the

industry itself of market trends.

As a solution, many felt that agencies should focus on

branding within the industry, as well as on quality. Other

areas to concentrate on included innovation and training.

Other challenges: Among the other pressing

challenges, talent topped the priority list - especially

among industry leaders - followed by the often

tempestuous agency-client relationship. Both these

issues deserve great attention and are addressed

separately later in the report.

While increasing competition was a concern too, many

believed that it was necessary and helped improve

service quality.

The first edition of the PR report had highlighted the talent

shortage that the PR industry is facing. The report said:

“If you're part of the PR industry, you'll know how acute the

talent shortage is. As firms scramble for competent

people, salaries get inflated. With fees already so low,

profitability is affected.

“This demand-supply gap can only widen over the next few

years. If salary costs become prohibitive, PR businesses

will suffer.”

This was underscored by the respondents. What was

thought-provoking was how they ranked potential solutions

to the problem.

19

How should the industry deal with the talent crunch?

It was revealing that raising salaries ranked lowest as a

potential solution, while a structured, stringent selection

process ranked first. Planned, consistent investment in

training ranked second.

It was obvious that money is not the main motivator.

CNBC TV18's Ghosh pointed out: "By spearheading thought

leadership initiatives, PR can create opportunities for

attracting a more involved cadre of professionals. An

attitudinal change - both, on the parts of agencies and

professionals, where PR goes beyond getting coverage but

works as an involved stakeholder for their clients - will help."

The education system is not geared to the industry's needs

- this was highlighted in the first edition of this report too,

and repeated by the survey's respondents - and it's time

PR agencies collaborated with training institutes to evolve

a curriculum that makes their students employable.

Several other industries in India - such as information

technology - have collaborated with academia in the past

and there is no reason the PR industry can't do the same.

Recommendations The industry should standardise salary ranges.

Incentives, such as stock options, need to be worked

into compensation packages.

Employee growth is a priority – as indicated in the

survey – and it must be planned and communicated

early to them.

Mentoring is conspicuous by its absence. It is up to

agency heads to ensure that talented people have a

go-to person within the firm. These mentors can help

starters find their feet and share knowledge that would

otherwise take months or years to acquire.

Training must be implemented at all levels. Seniors

within the firm can be tapped for this, and external

trainers hired when needed.

* Average of the ranks

ATTRIBUTE WEIGHT* RANK

Stringent selection process 3.2 1

Invest in training 2.6 2

Offer fast-track growth 2.3 3

Offer higher salaries 1.9 4

20

When asked how they were dealing with a shift towards

knowledge-based communication, 41% said the focus was

on thought leadership to raise awareness and skills.

Many corporations across the world are recognising the

need to build their brand structure on a foundation of

knowledge. Brands now know that they need to build

relationships with their stakeholders to remain relevant and

matter to the communities in which they operate. They also

recognise that they no longer have a captive audience

through traditional media.

Aman Abbas, head of corporate communications, KPMG

India, said: “PR practitioners should understand business,

not just communications. Unfortunately, the orientation of

PR students is only towards transactional campaign

creation on campus. Even the juniormost in the industry

need to know how business is done and what impacts it and

its reputation. Industry needs to diffuse its focus from

means (press conferences, press releases) and focus on

how business objectives can be met through

communications. Not all industries require

standardised services.”

Relevant, shareable thought leadership through tools such

as whitepapers, videos and blogs can help brands become

the trusted authorities in their industries and increase

conversion rates.

This is an opportunity for PR, felt the respondents. Support

for thought leadership was the highest among senior staff

(43%) and the juniors (48%).

The way ahead

While the average annual advertising retainer is Rs 2 crore

($4,00,000), PR retainers hover around Rs 20 lakh

($40,000). Industry veterans said in the first edition of this

report that many clients are reluctant to recognise the value

of PR. Also, there's no fee-per-resource norm and

under-cutting is rampant, which is partly responsible for

retainers not rising.

While pointing out that the industry is multi-layered, with

services offered at different prices, Sudha Singh, former

executive director (operations) at Vaishnavi Corporate

Communications, had pointed out: "Most Indian agencies

short-sell their services for fear of not getting business.

There is an opportunity for us to review this as an industry."

Siddhartha Mukherjee, Business Head Eikona had a

different perspective: “The PR industry needs a single

[measurement] currency to create oneness and initiate

healthy dialogues between corporations and their

consultancies. With this, wealth will automatically follow.

Clients/Investors look for effective ideas and their

scientific measurability.

“Let us no longer boast of high annual industry growth

rates on small denominators. Here is where PR agencies

have paved the way. Starting with transforming into

consultancies, their thoughts and initiatives have changed

the PR matrix. Today, this tool, which was largely confined

to the PRO/corporate communications desk, is showing its

Bridging the fees-value gulf

Investing in thought leadership to raise awareness and skills

Hiring staff with competencies relevant to the change

Indifferent

Investing in training

23

41

30

43

19

8

19

31

19

31

19

23

10


All figures in %

48

How are you dealing with the shift towards knowledge-based PR?

20

16

21

There is a growing feeling within the PR industry that the

benchmarks are all wrong. While goal-setting and

measurement are part and parcel of every service,

measurement should include new media, rise in awareness

among stakeholders and impact on business results.

The survey showed a marked preference for measurement

based on outcomes (impact on business results) over

output (number of media mentions, press releases sent

out). While 63% preferred benchmarks based on

outcomes, 20% felt the final word should be left to the

clients' way of measuring performance. Only 17% felt that

volume of media coverage is the best option.

Putting outcomes before output was an idea that found the

greatest support among mid-level and junior executives.

Given that it is they who will eventually graduate to the

senior ranks and be in a position to effect the required

change, it is only a matter of time before new performance

measurement systems are introduced and become

the norm.

As HDFC Life's Tripathy said: "The industry must work

together to establish a standard measurement matrix.

EAV [equivalent of advertising value] is obsolete in the

West; reach is the key now. Without standardisation,

results remain fragmented and return on investment

remains unknown."

Recommendations Measure outcomes, not outputs: These include shifts

in awareness, purchase behaviour, corporate

reputation, employee engagement and investment

decisions. Quantitative approaches such as

benchmark-and-tracking surveys can be supplemented

with qualitative methods to spot changes in purchase

behaviour and preferences.

Media measurement: Measuring the number of

mentions is generally meaningless. Media

measurement should include audience impressions,

quality of the media coverage (tone, credibility,

relevance of medium).

Social media: Right now, it's mostly about how many

likes have been achieved on Facebook or the number

of Twitter followers. But it's not about the numbers; it's

about managing reputations. The emphasis should be

on responding quickly, listening and engaging.

Performance measurement

usefulness to the internal clients of this same desk -

marketing, financial and HR... and the CEO’s office.”

Recommendations Respondents said that the focus should be on

improving quality of work and innovation, which in turn

would help them push for fees that match value.

Given the shift in communications technology, some

suggested that digital become the primary mode of

brand outreach.

While some seniors said that budgets are entirely in

clients' hands and little can be done about it, others felt

that a premium could be charged for the adoption of

new communications formats and services.

All figures in %

63

49

7568

2622

109 16

2720

1724


Measuring outcomes, not output

Clients should have final word on criteria

Measuring spread of media coverage works just fine

How do you improvePR performance measurement?

22

Bubbling underDigital technology has made the world a smaller place and

brand monologue is giving way to engagement (multiple

conversations on multiple platforms). Buying behaviour is

changing rapidly, as is the way stakeholders - consumers,

suppliers, employees, governments, communities -

perceive brands.

Amid all this, there are five perceptible trends emerging in

the practice of PR:

Visual communication: Respondents believe that,

since 65% of their audiences are 'visual listeners', this

trend is the most critical. Good graphic representations

are critical to serve clients better, they felt in response

to an open-ended question. This is why a rising number

of communications include infographics, attractive

visuals or visual depictions of critical information.

Storytelling: There was a virtual consensus that

brands that tell their stories the best will be the ones

that stand out. Storytelling is only now being used as a

craft in marketing communications with organisations

as diverse as Coca-Cola and NASA adopting it to

convey their key messages to their stakeholders.

Respondents agreed that it is a critical element of PR,

from client engagement to ensuring the desired

outcomes. A key insight was that respondents felt the

use of storytelling increases audience trust, eventually

creating loyal customers.

Proactive monitoring: The discussions focused mainly

on social media - from evaluating conversations to

identifying the issues that matter to a brand's audience.

Not surprisingly, it was junior PR executives who

strongly felt that this was important to the industry.

Adaptability: Recognising change as a constant,

respondents felt that adapting to new tools and trends

is not an option but an imperative. They felt that the

ability and agility to adapt to an ever-changing

environment would spell the difference between

survival and obsolescence for agencies.

Quantification: Tying it with their thoughts on

performance measurement, respondents repeated that

the industry should focus on measuring outcomes, not

outputs. In the case of visual communication, for

instance, many said, measuring audience

comprehension should be the norm.

23

What to watch out for in 2013

26

t's been a difficult year. The economic slowdown,

amplified by policy paralysis in the government and

a volatile political situation, hit the PR industry hard.

Communications budgets were slashed and many

corporations preferred to work on 'project' basis rather

than on retainers. Given the tough business environment,

those that persisted with retainers demanded more bang

for the buck.

While the PR industry managed to keep its head well above

the water, 2012 was a tough year.

Will 2013 be better? Given the government's renewed

vigour for economic reform and India's inherent economic

restraints, the outlook remains optimistic despite the

uncertainty created by political turmoil.

Digital communications - dominated by social media -

constitute the biggest opportunity for 2013 and we've

dedicated a separate chapter to it later in this report.

While the survey earlier in the report identified major trends,

there are others that MSLGROUP India has identified.

Among those that you can't miss is the evolution of content

as a branding and communications tool. Industry experts

believe that nothing sells better than a good story. However,

they caution, it's not just about telling a story but about

engaging your consumer. The key, they say, is to make your

story his/her own story.

Storytelling is also important as the realisation grows that

it's not enough to have profit as your sole objective.

Businesses need a greater purpose. The community

expects that if you're making millions, you need to make

millions happy as well. Consumers today relate to brands

that show heart. Social responsibility has moved from mere

support for projects to working towards social sustainability.

Brand journalism

For PR professionals, 2012 marked a widening of the

scope of work and a deepening of the partnership with

business leaders, decision makers and subject experts to

benefit from the new wave of communications.

In 2013, more organisations will recognise the need

to marry marketing with reputation management.

Engagement has always been a key component of

the PR business, but in the Conversation Age of

today communicators are moving from monologue

to dialogue.

The cornerstone of this engagement is content. Not

just creating it, but also managing it. Content that

informs and encourages conversations is relevant to

the target audience. It is shareable and it strengthens

customer loyalty. Corporations as well as PR firms are

now employing teams to specifically produce

high-quality content.

Shashank Sinha, general manager and head (marketing of

direct sales), Eureka Forbes, said: "Communication is the

fine art of 'storytelling'. Telling a good story first involves

understanding the person listening to it - their interests,

worries and their lives. Listening is the first step to good

storytelling. Unfortunately, most of us seem to have no

time to listen. This is the key for the PR industry."

It is the digital revolution that has changed the way

companies are communicating. Consumers today

'experience' products and services online before buying

them. From researching a product's specifications to

looking for reviews, consumers rely on the online space.

It gives them a sense of empowerment as they now have

Engagement has always been a key component of the PR business, but in the Conversation Age of today communicators are moving from monologue to dialogue.

27

a forum to share

their experiences and at

the same time become influencers

for a brand. PR firms are producing a variety

of content, from social media campaigns to white papers

and online games, to shape this consumer experience.

Earned media is now making way for owned media,

enabling companies to take control of their brand story

rather than relying on traditional media.

CNBC TV18's Ghosh said: "A PR agency mirrors the

personality of the brand it represents and is a

responsible brand custodian. The need for the agency to

exhibit immense agility and alertness in today's dynamic

times is critical. As disseminators of information and

trends, PR needs to

always be several steps

ahead and demonstrate thought

leadership and innovative solutions that

will help differentiate their clients' marketing

efforts in a crowded space."

Consumer marketing and corporate reputation building

will no longer be mutually exclusive as consumers have

greater access to information about the companies behind

the products they buy.

Globally, we have already seen several brands, such as

Volkswagen, McDonald's, Coca-Cola and Pepsi - as well as

non-corporate 'brands' such as NASA - using engaging

content tailored to their purposes to reach out to stakeholders.

In India, this is nascent, though automobile-to-software

conglomerate Mahindra & Mahindra and the Tata Group

have taken an early lead in this.

28

Carol Cone, global practice chair of Edelman Purpose, told

the Holmes Report that 'purpose', which she defines as

"an organisation's values in action, manifest through a

variety of actions ranging from materials sourcing, supply

chain partners, CSR reporting, ethics and governance", will

be increasingly important in 2012, with companies focused

on how purpose can be "strategically integrated and

operationalised" throughout their organisations. This is

expected to take on a much larger scale in 2013.

MSLGROUP's PurPle is one such initiative. The group

believes that the meaning of being a good corporate

citizen has changed from Green (environment) to Blue

(sustainability) to PurPle (purpose + people).

Tomorrow's successful PurPle brands will be the ones that

work collaboratively with communities, governments,

customers and organisations to co-create solutions to the

world's toughest problems. Moving from corporate social

responsibility (CSR) to collaborative social innovation will

drive more rapid and meaningful change in society and in

business, because with collaboration and co-creation comes

shared value and a mutually beneficial shared purpose.

The intersection of three shifts in the business

environment has made it imperative for organisations to

bring purpose and people together:

Trust deficit: People have access to more information

than ever before and there is a lack of organisational

trust. In fact, trust in all organisations, including

corporations and governments, is at an all-time low.

Most organisations realise that corporate reputation

and consumer activation are interlinked as consumers

become critical of communications campaigns that are

not rooted in authentic, long-term commitment.

People power: People have new sources of power and

many believe that only they can come up with

innovative solutions to our most pressing problems,

not governments or corporations. Building and

communicating purpose-led business strategies must

put people and co-creation at the centre.

Quest for meaning: People are searching for

meaningful connections with communities and

organisations around a shared purpose and expect

organisations to enable such connections.

Organisations need to inspire, organise and energise

all stakeholders to collaboratively work towards their

shared purpose.

In the Information Age, a product doesn't always speak for

itself. The greater a company's transparency, the more

connected its customers feel. It is this connection that

makes consumers believe in a brand.

Liz Kaplow, president of New York's Kaplow Communications,

said in the Holmes Report: "The modern consumer wants

to know the brand behind the product and the company

behind the brand - and they have the resources to find out.

This means that companies now have to ask themselves

'who are we and what do we stand for?' Naturally, this has

made authentic CSR an integral part of a company's

forward planning and initiatives.

"Authentic CSR means it is integrated into the company's

corporate DNA, so that it is evident in everything the

company does. This includes marketing and social media,

CEO thought leadership, employee relations, and more.

Authentic CSR is not about whitewashing a company's

image. It's about supporting humanity, being passionate

about a cause, and connecting emotionally with consumers

who at the end of the day want to know that companies

care about the world and the people in it."

Businesses with purpose

29

Healthcare is expanding swiftly in terms of revenue and

employment in India. According to ‘Healthcare in India –

Emerging Market Report 2007’, authored by

PriceWaterhouse Coopers, “during the 1990s, Indian

healthcare grew at a compounded annual rate of 16%. Today,

the value of the sector is more than $34 billion. This

translates to $34 per capita, or roughly 6% of GDP. By 2012,

India’s healthcare sector is projected to grow to nearly $40

billion. The private sector accounts for more than 80% of

total healthcare spending in India.”

Globally, life expectancy is on the rise and with growing

awareness about healthier lifestyles, healthcare products

are striking gold. It helps that healthcare is a priority for

the government

For PR companies, there lies a great opportunity to partner

with healthcare firms – as well as allied verticals, such as

diagnostics and pharmaceuticals – to bring about a lifestyle

change in customers.

Pascal Beucler, senior vice-president and chief strategy

officer, MSLGROUP, wrote: “Firms in the healthcare sector at

large need to not only rediscover their social purpose, but to

also put it at the core of their businesses, and to consider it

when engaging with all stakeholders.”

MSLGROUP recently conducted the survey ‘You Share, We

Care!’ that outlined the views of 70 managers across Europe.

The importance of digital communications came out strongly

in the survey. Managers were aware of its impact on their

industry, and believed that companies needed to become

storytellers – creating contexts to explain to people what

they do, and to highlight the company’s social values. These

managers want to become protagonists in the debate about

health. The findings showed:

Nearly two-thirds of the managers interviewed thought

that social media offered an opportunity.

Most managers believed that the web will dominate

healthcare conversations in the future.

Patients are key stakeholders in the healthcare

ecosystem, thanks to the digital revolution.

In this vein, 61 managers out of 70 thought that digital

communication offers a great opportunity to help

improve medical treatment/therapeutic adherence.

Twitter, in particular, can play a role in the dialogue

between doctors and patients as it represents a tool for

faster connections.

Most managers also viewed blogs as important in

healthcare communications, potentially impacting how

influential doctors and key opinion leaders are on the web.

A corporate communication head (name withheld on request)

observed: “Specific to healthcare, there will be more pressure

because of changes in the regulations that govern the sector.

Communication will be scrutinised even more and it will be a

greater challenge to drive the PR agenda using traditional

media. Building credibility will be tougher than ever.”

If high-level appointments are any indicator, the healthcare

opportunity is clearly evident at a global level too. Recently,

Shellie Winkler was named as MSLGROUP’s North America

practice director for health and corporate practices, while

Amanda Sefton was named global healthcare practice

director at Ketchum. Meanwhile, US-based Finn Partners

launched Finn Partners Health, a dedicated national practice

led by Miriam Weber Miller, a 20-year veteran of healthcare

marketing and communications.

It won’t be long before high-level appointments are made in

India too to lead the healthcare practice.

Healthcare

The rise and rise of digital PR

32

imply put, digital PR is the use of the internet to

promote campaigns and to share information.

However, it's not as simple as it sounds.

Increasingly, small and big businesses are embracing the

digital space as a strong marketing tool. The success of a

company depends on the network of people it reaches out

to, not only in terms of numbers but also the right

messaging. It is extremely important to cast that net wide;

the higher the number of people that know about your

products and services, the higher the probability of you

being talked about in the social space.

"With the advent of social and digital media, every brand

has the ability to publish its own story and every consumer

and influencer has the opportunity to respond," Kaplow, of

Kaplow Communications, said in the Holmes Report. This

presents "an even more exciting opportunity to use social

and digital channels to get to know your audiences better,

to listen to what they are saying and what they want, and

deliver even better service".

The recent 'Rise of India's Digital Consumer' study by

comScore found that India is the fastest growing online

market and that its explosive online growth will continue,

as most online categories have below-average penetration

compared to global averages.

The internet has empowered people by giving them an

engaging platform to express their opinions, share their

likes and dislikes and post their reviews. These opinions can

both, draw traffic to your website or digress it. This makes

potential advertisers out of visitors to your site.

Experts suggest that consumer behaviour today is

influenced by the digital space and understanding it

well will help in devising the right strategies to maximise

the opportunity.

The comScore study pointed out that 75% of the Indian

audience is below the age of 35 years, making it one of the

world's youngest online populations.

Brazil Russia China India

41%5%

20%6%

48.9 52 49.1 59 322 336 44.5 62.6

* Source: ‘Rise of India’s Digital Consumer’ study by comScore

Unique visitors (in millions)

15+ age, home and work users

July 2011 July 2012

Unique visitors growth comparison

33

For those in the communication business, therefore, the

dynamics of delivering a message have changed.

Marketers have to do away with 'monologue' as the digital

media has created the space for a 'multilogue' where

there is conversation happening all around us. It is these

conversations that are shaping brands.

Consumers are no longer buying products, but the

experience. This experience begins at the consideration

stage, continues to the buying of the product and finally

its use. At each stage, consumers are relying on social

media to enhance their experience. Product endorsements

no longer bear the same significance - it's other

consumers' views that seal the deal.

HDFC Life's Tripathy pointed out: "This means acquiring

more relevant skill sets, more learnings, and more

creativity and innovation. More customised, value-driven

PR campaigns in the digital space would be the key

focus in 2013."

All this has significant implications for the PR practitioner.

The digital space is an addition to the communications

armoury. The new role broadly involves:

Advising: "We believe the best course of action is..."

Counselling and deriving meaning: "We believe the

best course of action is... and here's why." At this

stage, the PR practitioner will need to get involved in

the business challenge before the client. He/she will

need to truly understand the array of tools at his/her

disposal. There is a critical need to involve

consumers, motivate and involve them and seek their

feedback to make them feel empowered.

Change in the PR practitioner

Demographic distribution - youth driving growth

75%

1.3

2.4

6.5

13.7

15.3

Demographic distribution of UVs in %

* Source: ‘Rise of India’s Digital Consumer’ study by comScore. UV: Unique visitors

{ }

1.855+ yrs

45-54 yrs

35-44 yrs

25-34 yrs

15-24 yrs

3.6

9.7

21.9

23.7

(male+female)

34

All online activities need to be understood in terms of their

return on investment, that is, measurable results are the key.

While it is possible to measure web traffic, marketers are

sceptical about the value of online PR.

Herein lies a big opportunity. PR professionals need to

impress upon clients that embracing digital PR would be an

additional resource that strengthens the objectives of

traditional PR. Industry observers believe that digital PR is no

longer a new strategy but part of the regular hygiene factors.

PR companies can use multiple online forums like blogs,

Facebook and Twitter to engage and sustain public interest.

Podcasts, publishing information online, and tailored online

media campaigning are also fast gaining popularity. All

these tools can be tangibly measured.

A Holmes Report article summed this up: "Today, the brand

is no longer determined by what the company says about

itself; it's determined by all the things that are said about

the company by others, in the real world (over garden

fences, in hair salons, the supermarket checkout line, over

drinks and dinners) and in digital and social media."

"I foresee more and more activities around the digital

space," said HDFC Life's Tripathy. "With shrinking marketing

budgets across industries, companies would remain

steadfast on value-added, cost-effective mediums for

'engagement and connection' with their customers and

other key stakeholders. The digital boom cannot be ignored

by any brand."

Among the key values that companies will need to

emphasise online are: transparency (the greater the scrutiny

you allow, the more trusted you are), dialogue (one-way

communication is in steep decline) and engagement (invite

consumers to be 'part of the brand').

Measuring effectiveness

Tell a story: Audiences need to identify with a piece of

information. People are naturally drawn to experiences

that they can relate to. Ensure that your data has statistics,

visuals, testimonials that lend credence to your pitch.

Be a good listener: A digital platform leaves enough

room for scrutiny, so be open to all kinds of feedback.

Social media is a two-way street; people will expect

your response to their communication. A well-initiated

conversation often inspires participation and a

well-moderated one can help your purpose.

Be earnest: Be consistent with your messaging and

always share accurate information. With the great

volumes of information at their fingertips, your

audience will always cross-check the authenticity of

what you claim. Any discrepancies will deal a blow to

your credibility.

Reach out to social media influencers: Your network

must have bloggers, influencers, journalists and writers

from related industries who are more active online.

Facebook, Twitter and Linkedin are increasingly being

used by individuals and corporations to connect with a

wider network. Through the right networking, you can

influence a media mention.

Build brand loyalty: Engage your audience by creating

content that is not only informative but which holds its

interest. Curate the content in a manner that makes

your audience champion your cause. Ensure that you

have the audience captive on its first visit; you may not

get a second chance.

Create a social media newsroom: A robust online

presence makes it easier for journalists to gather

information that can beef up their stories. The right mix

of interactive elements, videos and photos provides a

360-degree view of your organisation. It also gives them

a chance to connect with other bloggers/visitors to

verify information. Make this your central resource for

information. As a PR professional, it is vital to stay

How to optimise social media in PR

35

Digital media trends

abreast of the evolution of news consumption. Digital

presence is definitely a defining change.

Ghosh, of CNBC TV18, said: "The digital medium is no

longer a retrospective or force-fitted part of the overall

brand marketing strategy. It is an integral part of the

marketing mix. Akin to marketing strategies which now have

digital woven in from Step 1, PR also needs to reflect the

same technical dexterity and immediacy. In this era of

instant feedback, PR is a vital ally to manage the responses

a brand evokes on its social media or online platforms.

Hence, PR needs to leverage the viral ability of digital and

amplify a brand's message effectively."

High-growth categories

Online video soars

Unprecedented growth

in travel, search, social

networking and news,

surpassing worldwide

averages

Growth to continue in

retail, games and health,

as they are below

worldwide averages

The key drivers are

content and accessibility

The coupons category

has shrunk by 38% as

players have moved to

allied verticals

Online video viewers in

India have grown by over

37.3%

The engagement has

reached 3.4 billion

videos every month

52% of the videos

belong to the

entertainment category

YouTube’s top channels

are Bollywood-related

Video advertising has

grown proportionally

with growing inventory

* Source: 'Rise of India's Digital Consumer' study by comScore. Graph based on July 2011 and Jul 2012 data for 15+ age, home and work users

* Source: ‘Rise of India’s Digital Consumer’ study by comScore. Graph based on July 2011 and Jul 2012 data for 15+ age, home and work users

Games

News

Search

Retail

Heatlh

Socialnetworking

Travel

July 2012 Reach %YoY Growth %

60

54

43

43

43

43

41

41

80.3

91.5

59.9

21.1

95.5

44

373

Video Viewers (in millions)

Min per viewer Videos viewed (in billion)

Jun 2011

32.4 34.8 42.3 44.5

Oct 2011 Mar 2012 Jun 2012

433

455 459

Jun 2011 Jun 2012

3.41.9

What the media thinks about the industry

38

he media is a key stakeholder for the PR

industry. Media relations are among its core

activities and rarely is a PR plan drawn up

without a media angle to it.

The digital age is changing the way consumers interact

with the media and brands. Round-the-clock news, the

internet and social media have created an aware,

empowered consumer. This is, in turn, altering the

relationship between the media and PR professionals.

However, the media and the PR industry enjoy a strange

relationship - deeply symbiotic, yet edgy.

It is important, therefore, to understand what makes this

relationship tick, what the points of conflict are, as well as

the potential solutions.

For this, MSLGROUP India conducted a dipstick

qualitative study, interviewing journalists across media -

websites, TV channels, newspapers, magazines - to

gauge their perceptions of the PR industry. The objective

was to understand whether journalists were being

suitably supported in their day-to-day news gathering

and allied activities.

Journalists were asked to detail the problems they faced

while interacting with PR professionals and suggest

changes. Apart from that, we included multiple-choice

questions to get specific replies on key issues.

MethodologyThe primary objective was to assess perceptions of media

persons regarding:

The PR industry and its efficacy in supporting journalists

Emerging trends in news media and its PR implications

How to make PR more effective

Twenty-one depth interviews were conducted among

journalists in Mumbai, Delhi, Chennai, Kolkata and Pune.

The break-up:

Mumbai: 13

Delhi: 4

Chennai: 2

Pune: 1

Kolkata: 1

PerceptionsAmong the key themes that emerged was that, while PR

professionals broadly understand their clients' businesses

and their operating environment, this understanding is not

fully communicated to journalists. Apart from that, there

exists considerable scope to improve the working

relationship between PR professionals and the media.

A common complaint was that PR professionals do not

fully understand the different genres of media they interact

with and are generally unaware of the beats and repertoire

of the journalists they interact with. As a result, journalists

often receive communication on sectors, products and

issues that have no relevance to them or are not suitable

for the media outlet they represent. Background research,

the journalists pointed out, is conspicuous by its absence.

As a result, journalists who have to complete a

multitude of tasks every day are often disturbed by calls

from poorly prepared PR professionals or are spammed

by irrelevant press releases. This puts great strain on the

PR-media relationship.

A senior features journalist at the 'Hindustan Times', one of

India's leading dailies, said: "Too often, PR professionals

send me listings for 'your new products column'. Even a

cursory reading of the supplement I work for will reveal that

we do not, in fact, have such a column. There is nothing

more annoying than fielding these calls day after day."

39

This was echoed by a senior editor at 'Business Today'

magazine: "Clients of PR companies want the press

release reproduced in full in every publication and

broadcast on every TV channel without any supplementary

questions asked. Even when PR people know there is no

story in a particular piece of information, clients force them

to push it."

News trends and implicationsAnother common complaint was that PR professionals are

not well informed about media deadlines. This problem

has become even more acute as the news media has

broadly shifted to a 24x7 role. Journalists stressed that PR

professionals should spend more time in understanding

how their target media function, in terms of the story

gathering and editing process and the need for client

responses based on the nature of the medium.

In addition, journalists wanted a shift from the

"stereotypical silence" every time clients find themselves

in an uncomfortable situation.

To rectify these problems, journalists stressed that senior

PR professionals must work closely with their juniors. They

also suggested seminars and discussions with journalists,

as well as an emphasis on training.

A senior news editor at the Mumbai-headquartered daily

'DNA' said: "PR professionals need a thorough knowledge

of the set-up and functioning of the newspaper or TV

channel [they are dealing with]. This can be done through

interaction and being in constant touch with what's

happening in [those media outlets]."

A senior financial journalist added: "It's getting complex;

different newspapers have different deadlines. Apart

from that, deadlines themselves are dying in the wake of

24X7 media and it is a big challenge for the PR industry,

as even a millisecond's delay in receiving information can

make a difference."

Customising press releases

With the news media getting fragmented into various

genres and mediums, there is need to tailor press releases

to the media outlets they are sent to. A one-size-fits-all

release doesn't work anymore, many journalists said. They

also emphasised the need for releases to be better written,

to contain fewer clichés or unnecessary praise for clients.

A release that keeps in mind the above, would enable

developments in a particular sector or firm to be

understood quickly and reported appropriately.

For instance, a 30% rise in quarterly profits could be

potentially big news for a start-up, but may not be

appealing to a journalist. However, if that 30% profit is

accompanied by a comparative analysis that shows it as the

highest in that quarter across the sector it operates in

could trigger suitable interest.

A senior news editor at 'The Times of India', India's

most-read English daily, said: "There is a gap in the

understanding of the saleability of a development or press

release and the needs of the media. This should be

suitably addressed."

40

We do need each otherDespite everything, journalists recognised that the PR

industry serves a vital purpose, that of a conduit between

them and industry. Journalists highlighted that, with the

business world getting more complex and senior company

officials travelling across several times zones or within the

company, interaction between them and India Inc has

become tougher.

As a result, the role of the PR professional in balancing the

needs of the client and the media has become critical. In

this regard, journalists suggested that PR professionals

inform the target media of client/sector developments on

a regular basis rather than only when coverage is desired.

This would help journalists tracking the client/sector

considerably and build a long-term relationship with the

PR professional.

A senior editor at the 'Hindustan Times' in Delhi said: "PR

has close synergies with the media." Added a senior news

editor at 'DNA': "The print medium is dependent on the PR

industry for many stories."

The relationshipWhile the role of PR professionals is getting more

recognised, journalists did not want to get "over-friendly"

or "too close" to them. This was attributed to the often

conflicting nature of their jobs.

41

While acknowledging that PR professionals invest

considerable time in building relationships with the media,

journalists wanted the relationship to be "need-based" and

"professional". They wanted to maintain a distance.

That was largely because the PR industry is focused on

achieving their clients' needs, while the media is looking

for stories that matter to their readers. Sometimes, the two

are mutually exclusive.

A senior features editor at 'The Indian Express' daily said:

"A lot of thought goes into building better relations.

However, over-friendly behaviour puts off journalists, and

PR persons should be wary of that. Nevertheless, I have

come across PR persons who are extremely professional

and helpful." Added a senior journalist at the 'Hindustan

Times': "All the energies of PR professionals are

concentrated on getting the next media mention. There is

too much focus on short-term coverage rather than

long-term association with a journalist."

Recommendations

Research journalists and media needs: No two

journalists - or media outlets - are the same. Their

needs and approaches towards a story are dictated by

the nature of their readership. PR professionals need

to do their homework before approaching a journalist

for a story. Journalists repeatedly complained that they

are bombarded with irrelevant press releases and calls

on subjects that don't matter to them.

An effort must be made during the

relationship-building stage to understand the

journalist's beat and readership, and a suitable

database of media contacts maintained for future

reference. This database should be easily accessible

by staff across the PR organisation.

Understand and respect deadlines: Be aware of the

deadlines for different media and respond

appropriately. Senior PR professionals could work

closely with new entrants or hold training sessions to

ensure that they are aware of these deadlines.

In case a client does not wish to respond to a query,

communicate that to the journalist quickly enough for

him/her to work around it and yet meet the deadline.

This would also result in a strong relationship with the

PR professional.

Build long-term relationships: Journalists

complained in the survey that PR professionals usually

focus on ensuring that their client is mentioned in the

coverage. This creates unnecessary tension. Establish

a balance between client needs and on building

long-term relationships with journalists. This could be

facilitated by regular visits to the journalist's office or

through web chats. Help the journalist get access to

information or people when he/she needs them and

the favour will be returned.

Customise press releases: Press releases often

contain clichés and unnecessary details, which may

not be relevant to the journalist. Ensure instead that

the press release has the client information that is

relevant to the journalist it is sent to. Also make sure

the significance of the development is explained in a

simple manner. As far as possible, customise press

releases for different types of media houses, which

would help you get significantly more suitable

responses. For instance, a release about the IT sector

could be written from a business point of view for a

pink paper (growth, forex earnings, impact on share

price) and in a completely different way for a general

interest newspaper (the products/services it makes

available, jobs on offer).

The agency-client marriage

44

The agency-client marriageJaideep Shergill, CEO, MSL INDIA

Every year, India Inc invests crores of rupees in what is a

fragile, sometimes tempestuous relationship - the one with

its PR agency.

While it's a tough marriage intended to produce measurable

results, the marketing or academic literature focuses on

what makes for a successful relationship and the causes of

its failure is skewed. Indeed, there is an archives worth of

material that helps businesses select a PR agency, but little

on how to ensure the relationship is mutually fruitful.

It's time for both, client and agency, to realise that the best

PR begins with a healthy relationship. It needs to be a

partnership in which clients see the agency as an extension

of their marketing teams, while agencies need to invest time

in understanding the clients' businesses and their needs.

Too many relationships are spoiled because of unrealistic

expectations. "I want to be featured in The Times of India" is

absolutely the wrong way to start off. Sure, all of us want the

best coverage and the most from our PR budgets, but not

everything about you will get featured in the leading

publications. Instead, work with your agency to secure

coverage in media outlets that target your audience. There

may be several small- or medium-sized publications and

online communities worth exploring. Often, it's these that

deliver better results.

Remember, agencies can't make magic happen if you aren't

receptive to ideas. If you are hiring a PR agency, make sure

you're willing to take its counsel.

What’s straining the agency-client relationship?

Pitching and re-pitching: Before inviting agencies to

pitch for your PR business, know what the campaign has to

achieve, set out the objectives and be honest about

budgets. Would you buy a car without knowing what kind

you wanted - sedan or SUV? Or how much you can spend

on it? Buying PR services isn't different in that sense.

The brief: Producing a concise-yet-thorough brief is

the foundation for success. It will enable the agency to

respond intelligently within the financial parameters set.

Think hard about what you want from your agency. PR is

not about column inches, but creating a personality for

your company that in the end leads to the achievement of

business objectives.

When calling for a pitch, keep the shortlist, well, short.

Respect the time and effort that goes into understanding

your business to prepare the pitch. Even a simple pitch

might take several days to get right. Also, it's a good idea to

have the agency present its credentials at its office. This

gives you the chance to see the company in action (Is the

environment good? Is it adequately staffed? Is it buzzing?).

Make sure that the people making the pitch are the ones who

will handle the account. All too often, the best resources

make the pitch, but others actually manage your work. PR is

an ideas-and-people business; the team is the operation.

Don't be swayed by size - big companies are not

necessarily better than small ones. Sometimes, in large

firms, resources are spread thinly over several clients.

Don't think short-term either. Look for a company that you

are comfortable working with for three to five years at least.

Budgets: Some clients don't reveal their budgets, thinking

that it would drive down costs. However, what it means is that

PR firms can't understand how many resources to commit.

If you want results, lay your cards on the table.

45

At the same time, understand clearly how you are being

charged - per resource hour, out of pocket expenses,

taxes, handling charges of third-party invoices - before

signing the contract. A full understanding of these issues

will rule out unpleasantness later.

Reviews: Once you've selected an agency, build a review

process into the contract. This will ensure that the operation

stays on track. Ask for a start-off meeting at which objectives

and benchmarks for the review process are set.

Remember that a PR firm is only as good as the

information you provide. Keep it in the loop when it comes

to business developments and invite its representatives to

be part of your marketing conversations.

An increasingly common problem is the decreasing time

PR firms get to respond to a crisis or achieve an objective.

The PR firm can't work magic. Planning in advance and

communicating constantly with the consultancy will help

keep the objectives-deadlines balance optimal.

Base evaluations on financial as well as emotional criteria.

Trust and honesty are key. Keep the agency informed

about your objectives and priorities; adjust expectations to

the situation. For this, a honest discussion is essential. At

the same time, the agency must regularly inform the

client about the state of work and results.

It's important for clients to involve decision makers from

the word go. This reduces misunderstandings. The agency,

on its part, should ensure that the best people are on the

account to achieve the best results.

Repitching and business assurance: If there are

problems with the campaign, most agencies will make the

adjustments required in the teams managing the account.

Detail your reasons for seeking a change of team and the

agency will most likely oblige.

Changing the agency would mean restarting the

communications effort from scratch - from providing

detailed briefs for fresh pitches to dealing with an agency

46

that may not understand you as well.

If you find a need to change the agency nevertheless, the

norm across the world is that a sufficient notice period is

given. In the case of advertising, if the agency has invested in

resources just for your account, the notice period can be as

long as six months. This is only fair since the agency needs

to reallocate those resources or consider scaling down of

operations. This needs to be replicated in the PR industry.

Too many agencies are wondering, "Will we have this

account six months from now?" When the agency is unsure

of the relationship or whether it's appreciated by the client,

it doesn't perform as well as it can. If you're not happy, tell

your agency what's wrong. Don't be afraid to challenge it.

Ask the outrageous questions. When those are answered,

you get great work.

Differences in expectations: Client expectations

should be coordinated with the agency. This is important

for the agency to decide how to meet client needs.

It's important for the agency's expectations to be detailed

too. These could coincide with the client's, but may differ

at times.

Knowing the objectives leads to good PR. Clients should

be clear about what they want to achieve. "Get us as much

press as you can" is not good enough. Communication

objectives need to be aligned with business goals and your

target audience.

The communication gap: Communicate clearly your

values and what you stand for.

This helps the agency understand your business and

culture; and vice versa. Industry experts agree that

agencies and clients who communicate well have longer

lasting relationships.

This doesn't mean there will never be disagreements.

However, effective communication will help you overcome

this obstacle.

The agency expects good feedback from you. Tell them

if the results are satisfactory, and give constructive criticism

when required. Nobody likes a silent partner. There's no point

reserving comment till a half-yearly review when the damage

can't be undone or when it's too late for a course correction.

The bottomline: the agency is your strategic thought

partner. Treat it so.

Services and fees: Most large clients nowadays look

for a range of services. It's no longer enough to offer only

media relations; agencies must invest in social media,

content and creative services too. Agencies must offer a

wide variety of services in order to meet the needs of

different customers.

Agencies are being asked to deliver more - at the same or

lower prices. Some of it is justified because technology

allows you to do more for less. But, most often, it will only

result in a loss of quality. Don't fall into the trap of treating

ideas as commodities; you run the danger of the worst

ones being funded the best.

There's no generally accepted formula on fees. Inevitably,

clients and agencies differ on what is fair compensation.

Focus on the difference good communication makes to your

business goals while understanding the effort, resources

and strategic inputs the agency brings to you. Keep the

conversation about value, not price. Once both understand

the value being delivered, the negotiations get simpler.

Lastly, pay your bills. Agencies will work better for those

who are prompt with their payments. If you're erratic with

your bills, chances are that your work will lag clients who

pay within a reasonable time.

Clients and agencies who understand the above will have

the best partners wanting to work with them. Teams will

look for creative solutions and even over deliver at times.

47

The full picture from the client; the brief is often unclear

Treat the agency like a strategic thought partner. Understand that effective communication is vital for business success. A cultural fit is important too; it helps deliver better service

Involve management

Be fair in your evaluation. Provide good feedback, appreciate the efforts that worked

Change people, not agency.Make good use of agency's resources

SHARED EXPECTATIONSAgreement on goals

Effective communicationFair evaluation of resultsCooperation and honesty

An understanding of our business

Creativity, good service

High-quality people on the account

Willingness to accept suggestions, constructive criticism

Range of services

AGENCY EXPECTATIONS CLIENT EXPECTATIONS

Client will only invest in a relationship if he/she can see that the resources that he/she is getting are meeting expectations. Agency must invest in people, keeping talent satisfied and motivated

Communicate the importance of input information from the client and its impact on the PR campaign

Building a relationship takes time. Agency cannot expect client's trust immediately

Invest time and knowledge to deliver a clear and comprehensive feedback about the problems youare trying to solve with marketing communication

Don't take the agency for granted. You may bethe one writing the cheques, but money doesn'tsolve every problem. Both parties need to invest, adapt and be flexible

Understand how activities are structured in the agency. This will help you understand the natureof the work and the need to adapt certain processesto achieve objectives

FOR THE AGENCY FOR THE CLIENT

THE EXPECTATIONS MATRIX

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