REPORT ON PRCAI STATE OF THE INDUSTRY (SOI) 2018
Executive Summary
September 2018
Copyright © 2018 PRCAIAll Rights Reserved. This document contains highly confidential information and is the sole property of PRCAI. No part of it shall be circulated, copied, quoted, or otherwise reproduced without the prior written approval of PRCAI
490630 720
830940
1,1201,320
1,490
FY08 FY12 FY13 FY14 FY15 FY16 FY17 FY18
PR Industry estimated to be Rs.1490 Cr. in FY 18 with y-o-y growth rate of 13%
2
Public Relations Industry Size
Size Rs. Crs / Growth in %
Source: i2iResearch analysis of Survey information, Annual Report, Qualitative Discussions and assumptions where necessary
14.6%
7%15%
15%15%
13%
19%
18%
13%
Very Large,
480, 32%
Large, 240, 16%
Medium, 230, 16%
Small, 420, 28%
Freelancers, 120,
8%
Revenue Share by Company Category
Size Rs. Crs / Growth in %
12%
9%11%
20%
15%
Growth(%)
Media relations, Digital, Content and Public Affairs are the key services contributing to 78% of PR industry revenue
3
Media Relations
49%
Digital & Social Media
13%
Content & Design
8%
Public Affairs7%
Crisis & Risk Management
6%
Influencer marketing
5%
Others12%
N = 28
Size of service (Rs. Cr)
Media Relations (Rs. 730 Crs.)
Digital & Social Media (Rs. 195 Crs.)Content & Design (Rs. 120 Crs.)Public Affairs (Rs. 120 Crs.)
Financial Comm. (Rs. 30 Crs.)Employee Comm. (Rs. 5 Crs.)Brand building (Rs. 15 Crs.)Research (Rs. 30 Crs.)CSR (Rs. 15 Crs.)
Crisis Management (Rs. 90 Crs.)
Upto 100 Cr.
100- 200 Cr.
> 200 Cr.
Positive growth rate (%) Negative growth rate (%)
Revenue Share by Services Category in FY 18
FMCG, IT, Travel and Government are the top ranking segments with 44% contribution to overall revenue
4
FMCG & RETAIL (15%)
INFORMATION TECHNOLOGY (13%)
TRAVEL & HOSPITALITY (8%)
GOVERNMENT (8%)
FOOD & BEVERAGE (8%)
AUTO OEM’S & AUTO COMPONENTS (6%)
FINANCIAL SERVICES (6%)
HEALTHCARE (5%)
Top 8 segments contribute (69%) by Revenue in FY 18
Key trends – Common voice from PR ecosystem
DATA DRIVEN CAMPAIGNS
VISUAL & CREATIVECOMMUNICATION
88% agree with the upcoming trend ofIntegrating Digital with PR
79%indicate the increased needfor Online reputationmanagement
46% agree with the increased emphasison data driven campaigns
68%indicate the increased need forproviding measurements on PRefforts
73%agree with the increasedemphasis on graphics andvideos
82%indicate the increasedemphasis on visualcommunication
PR FirmsIn-HouseCommunicators
Proportion indicates % of respondents who agreed/strongly agreed to these trends
INTEGRATING PR WITH DIGITAL
8/10 Companies undertake measurement of PR efforts currently
Is PR industry ready to embrace these trends?
DATA DRIVEN CAMPAIGNS
VISUAL & CREATIVECOMMUNICATION
56% Highlight the limited availabilityof talent in digital segment
43% Mention finding and retainingdata analytical talent as difficult
79%Indicate the absence of a singlemeasurement criteria for PRefforts
35% Mention limited availabilityof finding creative talent
66% Indicate the lack of storytelling skills in the industry
PR FirmsIn-HouseCommunicators
Proportion indicates % of respondents who agreed/strongly agreed to these trends
INTEGRATING PR WITH DIGITAL
“The focus would be on developing a team that is savvy to handle digital, visual and Social Media”
47% Lack of experience tointegrate digital with PR
Rs.15 CrRs. 15 Cr.
Is training the comprehensive solution to address concerns on lack of right talent?
8
TALENTAVAILABILITY
COMPETENCYDEVELOPMENT
ATTRACTRIGHT TALENT
Average spent on training employees for overall PR industry FY 17 – FY 18
• Increased spent on training y-o-y is addressingonly one part of the concern area
• Need to address the missing link – AttractDigital, Visual and Creative and Data analyticstalent
Rs. 17 Cr.
FY 17
FY 18
Rs.15 CrRs. 11 Cr.
FY 16
Roadmap to address talent concerns
9
BUILDING
AWARENESS
1
PROMOTE PR
AS CAREER
2
EDUCATE ON
INDUSTRY
3
COMPETENCY
DEVELOPMENT
4
Awareness seminars inundergraduate colleges
Internship opportunities
Guided approach toinclude PR in curriculum
Better representationof PR as a practice
Industry and businessknowledge sharing tohelp candidates connectthe service with context
Train on how tointegrate the variedskills to PR as per thecontext/requirement
Position PR as a career for different skillset – Analytics, Digital, Legal
ENABLER TO ATTRACT RIGHT TALENT UPGRADE SKILLS TO FIT INTO BUSINESS CONTEXT
Areas with disconnect between PR firms and In-house communicators
10
66% Lack of story tellingskills at entry levels 46%
Convincing clients to take upbold campaigns is a challengeat times
CREATIVE STORIES
46% Clients require insignificant news to appear on top publicationsBUSINESS UNDERSTANDING
1 in 2 call out the need forbusiness and industryknowledge
8/10 call out the need forhigher engagement with topmanagement
55% Limited interaction & exchange ofideas between PR and companies
52% Lack of effort in creating meaningfulrelationships with all stakeholders
STRATEGIC INPUTS
PR Firms
In-House
Proportion indicates % of respondents who agreed/strongly agreed to these trends
What PR Firms are seeking to bridge the gap
11
“The association seems to be in the right direction - bringingclients + agencies on platforms where the gaps arebridged. Knowledge around the same needs to be producedby agency/account heads for client CEOs/managers (in written,video or other forms) and distributed frequently (throughnewsletters etc.)”
“Create a unique annual IP that that generates debates atthe CXO level”
“Association should look at engaging with all three-stakeholders at various levels to bring right respect andunderstanding among these stakeholders.”
Analysis of verbatim from survey R = 51
BUSINESS UNDERSTANDING
STRATEGIC INPUTS
Forums to interact with clients and listen to top management – crucial for business understanding
Movement of services between PR firms and In-house in FY17- FY18
12
PR Firms
In-House
Employee communication
Employee engagement
Public Affairs
Executive Brand building
CSR
Event Management
Social Media Management
Crisis Communication
Services undertaken by In-house in FY18 previously handled by PR firms Services undertaken by PR Firms in FY18 previously handled In-House
With new services added to the portfolio every year, new expectations set forth by In-house communicators
13
Bring in AI to enhance Content Marketing-Targeting, Personalisation and CrossInteraction
ARTIFICIAL INTELLIGENCE
CRISISMANAGEMENT
INFORMALCHANNELS
ROADMAP
INFORMAL CHANNELS
PR strategy to go beyond media coverage, need for a roadmap showcasing comprehensive solutions with milestones
With increase in number of information channels, essential to have a focussed approach for crisis management
Regional and language media gaining relevance in the market with increase in credibility of informal channels like whatsapp
Emerging expectations
Aspects that triggered growth in the industry
14
Increase spend by government
Diversification of services Move to Digital
Communications
Slew of international
agencies
PR takes role of strategic business tool
81% Companies value Strategicinputs and advise from PRfirms
51% Decisions taken in PR are part of Strategic decisions
6/10 Companies consider PR planning in accordance with Strategic planning
PR Industry expected togrow at 15% to reachRs 2,270 Crs. by FY 21
FY 18
FY 21
• Growth driven by embracing global trends faster
• Newer customized products & Non-traditional PR work expected to grow
• Traditional segments of FMCG, Auto and Travel & Tour remain the large spenders
• Fin-tech, Online content to emerge as newer segments of growth
THANK YOU
Copyright © 2018 PRCAIAll Rights Reserved. This document contains highly confidential information and is the sole property of PRCAI. No part of it shall be circulated, copied, quoted, or otherwise reproduced without the prior written approval of PRCAI
