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March 9, 2007
We Are Gaining Market Share
I just read Alan Gottesman’s excellent article in Ad Week on the employment statistics in the marketing communications sector for the past fifteen years. And the winner is... (drum roll) public relations. Disclosure—I have known Alan since the mid-80s when he was the advertising analyst at LF Rothschild, a boutique investment bank and see him around New York City’s Upper West Side where we both reside.
Gottesman describes the rise, fall and rebirth of the business over the past decade. The rise, from early 1994 to the historic peak in year 2000, was followed by a three year unwinding from 2001-3, with the bottom achieved in January, 2004. This trough was followed by a recovery that continues today.
Employment in the entire marcom sector is up 12% from the beginning of 2004 but remains slightly below the historic peak of year 2000.
Ad agency employment is up about 16% from the trough of January 2004 and is only 14% above the 1990 level.
PR agency employment “saw a much faster increase than advertising (in the 90s) and went through a steeper fall, but after the dust settled PR held on to much more of its growth than advertising did,” Gottesman said. He says that PR today has 44% more “body count” than in 1990. He added, “There is a significant shift away from mainstream advertising towards some of the other marcom disciplines.”
Our experience at Edelman reflects this macro trend. In the figures reported in O’Dwyer’s, we experienced significant growth in the past three years, with revenues up 36%.
I think there are four key factors driving this growth:
First, PR practitioners are at the decision makers’ table as equals with other communications brethren. PR is often the source of the big idea. We are providing counsel on strategic options, not only implementing media relations programs. As Mich Mathews, senior VP-central marketing group at Microsoft (Disclosure: Edelman client) recently stated at the 4A's Media Conference said "Microsoft's new emphasis on digital means it wants the 'creative, media and pr guys' in the room at the same time when crucial marketing decisions are being made."
Second, we are being engaged on assignments much earlier in the life cycle because PR is better able to establish a brands credibility . We establish the runway of trust so the advertising plane can take off.
Third, we are able to compete effectively in the world of dispersed media. We can work even more effectively in new media as we are accustomed to the dialogue and need for credible sources.
Fourth, we understand the movement toward a multiple stakeholder world, in which new voices such as NGOs or empowered employees are critical to building trust in a company or brand.
The work shown at the PR Week Awards Dinner yesterday evening demonstrated that as an industry we are taking advantage of our opportunity. We've moved from "below-the-line" to above the neck. Let’s keep it going!
Richard
Posted by Edelman at March 9, 2007 5:15 PM |
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