Mumbai: Public Relations Consultants Association of India (PRCAI), India’s largest and most influential Public Relations (PR) professional body, has released its annual industry report, SPRINT 2022-2023, and affirms an upward trajectory estimated at Rs 2100 crores registering double-digit growth year-on-year despite covid. Three out of four of the country’s PR firms expect 10 per cent growth in the 2022 fiscal year.
Indiantelevision.com caught up with PRCAI CEO Deeptie Sethi and PRCAI president & Ruder Finn India CEO & Head, Middle East Atul Sharma to know what they had to say about the growing attrition rate in the PR industry, the evolution of PR over the years, the growth in regional PR and much more.
To start off, the 2022-23 Study of Public Relations Insights, Nuggets and Trends (SPRINT 2022-23), paints an optimistic picture of the changing PR landscape. The study also found that PR consultancies in the country are making a considerable investment in strengthening their regional outreach as clients reach out to consumers in tier II and III cities. However, the report revealed that the high employee attrition rate in the industry at 20 per cent is a pressing issue that may hamper the quality and ability of client service.
Some of the pointers in the report include:
1. Public Relations is a crucial business function; 8 out of 10 client India Inc. leadership works closely with the communications team to devise PR strategies
2. The survey reveals the increasing role of regional PR; 15 per cent revenue share three years ago is likely to increase to 25 per cent share in revenue in the next three years
3. Crisis management, public affairs & advocacy and internal communications are top three sought-after services
4. Public Relation’s share of annual marketing budgets witnessed expansion from 10 per cent to 17 per cent in four years
5. Talent deficit continues to remain one of the biggest challenges for the industry; records more than 20 per cent attrition
Edited excerpts:
On the attrition rate in the PR industry being greater than 20 per cent
Sharma: This is a trend that we’ve seen largely after the pandemic, and I think it’s not only in the PR industry but across industries. Whether it is about replicating the great resignation or redefining the priorities in your life, the millennials today are more focused on what they seek from their lives and that is what is driving this trend. But talking about how we are countering it, first is by trying to create meaningful work, which the millennials find purpose in. Second is giving them a better work-life balance, which helps them focus not only on their priorities at work but also on the goals they have in their lives. Third is finding the right talent by reaching out to academic institutes or spaces where we find people who are really passionate about the art of storytelling. And last but also most important is that as an industry, how do we introduce these people to our industry- train them, sensitise them better for what the needs of the industry are and skill them in such an efficient way that they are not only able to take the challenges but also see themselves pursuing a meaningful career.
Sethi: The survey Sprint 2022-23 shows that retaining talent is more difficult than attracting. So, investing in our people is really the mantra here. You will see that there is 1.5 per cent of the revenue by firms that goes back into investment, and I think there’s an opportunity to increase that and to make sure that we upskill our people since the industry is changing really fast. It’s more dynamic, there are complexities that have come in, and areas like ESG, social advocacy, and internal communications, are introduced. Overall, these skills are growing, and we really want to make sure we keep pace with that growth. It will help us invest back in people, keeping them prepared, ready, motivated, and making this really means for people is a big opportunity for the industry.
On the evolution of the PR industry
Sethi: I think it’s leapfrogged. There’s a lot of change that has taken place and first is that the industry is growing at double-digit, which is heartening to see. There are people who want to come forth and work towards it. The C-suite is seeing the value and how we are becoming a trusted adviser to it. If we look at the data from the research, 8 out of 10 CEOs today, on the client leadership side, are involved in the planning and strategizing of the PR work. There are more than 6 out of 10 CEOs and CFOs who are making sure that measurement is signed off right during the signing of the budget. So, these are very healthy signs to say how scientific our skill has become today. It is outcome driven and impacts businesses and that is what is going to take our industry even forward. We are no longer just in the era of press releases. We are today a problem-solving discipline that is using earned, owned and paid media to make sure that we remain relevant for the clients that we’re servicing.
Sharma: I think there are two-three trends which indicate how our industry has evolved. First and foremost is the way technology has changed our industry, right from us finding our imprint in services which have largely to do with the traditional media, with Web 1.0 we saw it going to the whole online space. With Web 2.0. we saw the digital and influencer space becoming relevant for PR professionals. So, we have seen that the ambit of the PR industry has grown year on year, decade on decade.
The second thing is that the advent of multinationals into this space has evolved the way the industry has grown. There are the world’s best practices which have come to India, whether it’s the MNC PR firms coming in, or whether it’s us engaging with MNCs and bringing the best of the practices from across the globe. I think that has changed the way the PR industry has evolved.
Lastly, we are seeing a surge in startup Indian PR firms, which are doing really well. Whether it’s SPAG, first partners, Value 360, or others, majority of them have become really big in the last few years. So, I think, a mix of all these trends have played a very important role in the way the PR industry has shaped in the years gone by.
On the growing role of regional PR, and the way each of the markets (North, South, East and West) are different from each other
Sharma: The SPRINT report very clearly calls out that there are three to four sectors which have seen a lot of growth including technology, startups and pharma and those are the spaces which predominantly the south has led the way for. And as these sectors are evolving, the players in these sectors also demand strong PR services. So, that’s how South is outperforming right now from a percentage basis, which is a very good trend because I think somewhere North and West have seen their fair share of growth in the PR space. But we’re very happy to see that the South is catching up pretty fast.
To answer how each market is different, first and foremost, we have very different tastes, preferences, and most of all, different languages in all four markets. We have seen that in each of these markets, there is a strong demand for regional PR as people want to be communicated with in their own languages, in their own spaces. I think it’s also to do with something I call the confident Indian, who is not shy to watch a Telugu movie or hear your Marathi music, because that’s the newfound confidence that you see in India today. And that newfound confidence is reflective of that person who’s probably staying in Bhubaneshwar or a person who is working in Hampi. And that is what is evolving in all the markets. Yes, they are different regions with different preferences, tastes, cuisines, and languages, but from a PR storytelling perspective, we see that there is a consistent demand across all these markets as the PR industry evolves.
Sethi: It is all about very targeted communications to the end consumer today and that’s where Public Relations comes in. We are no longer just using traditional means of reaching out to them but also creating content in their languages, doing physical events, and bringing on board people whom they relate to their languages. That is where the power of storytelling is compounding, which we as public relations communicators are bringing to the fore.
On the significant markets in which most global PR players are present (besides India)
Sethi: Regionally the Middle East as a market is really shaping up today, where a lot of global companies are eyeing that market. There are certain other centres that are strong communication hubs for global companies, for example Singapore is one. India is also a home-grown market. Today, most of the multinationals are here. Of course, there are certain US brands which are yet to be here, but most of the global top PR firms that you see are already present in India, and today may be expanding their horizons even beyond the Indian boundaries.
Sharma: I agree with what Sethi said. We definitely feel that the Middle East is going to be a big space in PR. Apart from that, a couple of years back, we saw a lot of action in the South-Asian markets, which include Nepal, Bangladesh, Bhutan, Sri Lanka, and Pakistan, but unfortunately, the majority of these economies have their own challenges right now, and they’re adjusting with that. So, unfortunately, due to that, the tempo with which at least PR was being pursued in these markets has gone down. However, Asia-Pacific markets have seen an upward trend, and I’m hoping that that is bound to continue. Markets like the Philippines, Vietnam, Cambodia, and Thailand, are places wherein we feel PR will find more and more traction.
On the challenges faced by the PR industry and the way PRCAI is looking at dealing with the same
Sharma: According to the SPRINT research, there are some very clear challenges when it comes to talent and as an association, we are addressing it at the root cause level. This includes working with academic institutes to make sure that the curriculum is in line with what the industry needs. Once the talent joins the industry, focus on things that are required the most by this industry, like writing skills. The writing pen program by PRCAI has trained close to 100 people already. Additionally, possibly raise the standards of the industry and bring out a program like AIPR (Accreditation in Public Relations), where we have more than 100 professionals again who have been certified by or accredited by PRCAI to raise the benchmark of the industry. There’s also an attempt to lead an entire mentoring program, wherein established professionals like Sethi or I are spending time with newcomers in this industry and trying to help them learn the ropes of the trade better.
Sethi: Yeah, it’s the talent that’s one of the challenges. We need new skills and find those new hunting grounds to equip ourselves as a discipline to make sure that we can provide those services to our people. Constant upskilling will definitely help the industry and pay some dividends in the long run.
On the key trends and innovations in PR that are disrupting the market
Sharma: Disruption is coming in the form of tech, wherein it’s redefining the way we are communicating to our audiences, whether it’s through Web3.0, voice, AI, or ML. Secondly, it’s the rise of sectors where there is a very clear ask for communication services like startups. There are a whole lot of stakeholders involved there so we are reaching out to employees, partners, media, and customers. So, we are trying to determine the business outcome for the startups and help them in the way they are running their business. Also, beyond the startup space, we see more and more companies trying to deploy Public Relations services to address their business problems and that’s the fundamental disruption.
We also see that there is a propensity from the government to communicate their stories better. And as an account of that, we see a renewed demand from the government ministries for projects where the private sector is able to participate and contribute more. From a business perspective, these are a few places where we see disruption happening. But apart from that, we see quite a few disruptions in the industry as well with external players coming in, and local PR firms growing as mega firms in India.
Sethi: I think technology is bringing disruption and while it can aid us to bring in more efficiency, things like fake news are also on the rise. So, we have to be understanding how we prepare ourselves to deal with that.
On the ever-increasing rise in the demand for PR today.
Sethi: SPRINT report reveals it’s a growth phase for the industry, with a double-digit growth, where it’s now a Rs 2100 crore industry. So, they’re all positive trends which show the growing importance of our industry especially when we are seeing it coming from the top leadership who’s acknowledging this. The report clearly showed that about 8 out of 10 CEOs are looking for that PR counsel because that is impacting their businesses. Measurement in PR is seen as important. So, even before signing budgets for it, CFOs and CEOs are asking for a matrix right in the front, which is a healthy trend to see that the impact can be measured and seen and it’s an outcome-driven opportunity. So, I feel today there is a new scope for Public Relations as a science, for new skills and specializations, whether it’s public policy, internal communications, or digital. We have to continue to be able to upskill our people to meet the demands of the growing business today.
On the way the industry is taking shape, with tech and start-ups driving growth in PR
Sharma: I think it’s only for the good. Considering how the Indian software industry has evolved, we see that there are going to be a lot of uptakes for technology startups. And it’s here to stay. We definitely feel that there are two or three top trends coming up like, India, according to us, will be an EV hub in the few years to come, considering the way technologies are shaping. We also feel that there is going to be a lot of electronics and semiconductor manufacturing in India. The country will also become a manufacturing ecosystem for phones as well like we see Apple investing in India in a really big way. All these trends are going to spur more demand not only for these products but also to tell stories around these products. So, I think all in all, it’s a very good trend for the PR industry.
On your views on PR measurement efficacy.
Sethi: Measurement is a very important aspect of PR. There will be a lot of innovation as we are moving traditional and digital and we’re going to use a lot more data to drive strategic decisions and campaigns. We’ve come a long way from AVEs being the only component of testing measurement. Today we have specialized firms and teams who are aiding and helping PR to do that. The global MNCs are bringing their own practices into being. So, in a nutshell, I think measurement is really important because it’s very outcome driven and it’s here to stay.
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