Operating amidst the global meltdown where cost cutting and layoffs are the buzz words, Indian PR agencies are also beginning to face the heat. With most companies having curtailed their ad-budgets, PR budgets seem to be the next on the chopping block. The clouds of worry are already beginning to show. Although most PR agencies would not admit to any immediate impact, they are gearing up to face the challenging times.
There have been reports that some companies have sacked their PR agencies and are looking to manage their communication in-house by hiring more corporate communication professionals. While many PR agencies argue that this cost cutting measure may not serve in the best interests of the corporate, some agencies are now offering to work with such clients at reduced retainers.
Traditionally PR has always been a savior for companies through turbulent economic times, and it got me wondering why these companies are looking to cut on their PR budgets.
A closer look helps shed some light. While the going was good most PR agencies were focusing on increasing their client base, and due to shortage of talent roped in below average talent. They became mere executioners and only came in handy when the companies needed to make big announcements and hold press conferences. Even for smaller announcements agencies insisted on Clients roping in celebrities and spend big monies on creating events. Value addition to their clients in terms of strategy or tactical PR took a back seat.
Now that their services are likely to get axed, many PR agencies are gearing up to ensure that their clients see real value in their work, and not simply a cost center that can be done away with. PR agencies find themselves getting back to basics.
PR agencies are examining each and every aspect of their client’s business to see how best they can use it to their advantage in the media. They are re-looking at their staff strengths and putting in extra efforts to ensure good coverage for every small announcement. Improving media relations have become a key task for every employee, a crisis can erupt out of nowhere in these tough times, having the right contacts and better understanding of how news flows can really help in bailing their clients out.
Admittedly, these are the tasks they were hired to do in the first place! But while the going was good, most PR agencies were looking at offering services which went beyond the basics to earn more money for these special services.
There are reports that PR agencies right now are happy to take on more project work, the money is good and the pressure to consistently deliver is negligible. This is what a lot of PR agencies used to do in early days of PR in India.
The clients seem to be in the driver seat once again, and stand to benefit immensely from their PR agencies, who are willing to walk the tight rope in these circumstance. PR can add significant value to the business, more so during times like these. It would be prudent on part of the companies to think twice before deciding to do away with their PR agencies, many agencies have taken stock of new realities and are ready to stick along with you and add real value to your business.
There have been reports that some companies have sacked their PR agencies and are looking to manage their communication in-house by hiring more corporate communication professionals. While many PR agencies argue that this cost cutting measure may not serve in the best interests of the corporate, some agencies are now offering to work with such clients at reduced retainers.
Traditionally PR has always been a savior for companies through turbulent economic times, and it got me wondering why these companies are looking to cut on their PR budgets.
A closer look helps shed some light. While the going was good most PR agencies were focusing on increasing their client base, and due to shortage of talent roped in below average talent. They became mere executioners and only came in handy when the companies needed to make big announcements and hold press conferences. Even for smaller announcements agencies insisted on Clients roping in celebrities and spend big monies on creating events. Value addition to their clients in terms of strategy or tactical PR took a back seat.
Now that their services are likely to get axed, many PR agencies are gearing up to ensure that their clients see real value in their work, and not simply a cost center that can be done away with. PR agencies find themselves getting back to basics.
PR agencies are examining each and every aspect of their client’s business to see how best they can use it to their advantage in the media. They are re-looking at their staff strengths and putting in extra efforts to ensure good coverage for every small announcement. Improving media relations have become a key task for every employee, a crisis can erupt out of nowhere in these tough times, having the right contacts and better understanding of how news flows can really help in bailing their clients out.
Admittedly, these are the tasks they were hired to do in the first place! But while the going was good, most PR agencies were looking at offering services which went beyond the basics to earn more money for these special services.
There are reports that PR agencies right now are happy to take on more project work, the money is good and the pressure to consistently deliver is negligible. This is what a lot of PR agencies used to do in early days of PR in India.
The clients seem to be in the driver seat once again, and stand to benefit immensely from their PR agencies, who are willing to walk the tight rope in these circumstance. PR can add significant value to the business, more so during times like these. It would be prudent on part of the companies to think twice before deciding to do away with their PR agencies, many agencies have taken stock of new realities and are ready to stick along with you and add real value to your business.
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