empirical public relations survey: penn schoen berland

7/28/2019 Empirical Public Relations Survey: Penn Schoen Berland

1/7

EMPIRICALPUBLICRELATION

A REPORT BY


2/7

INTRODUCTION As communications professionals are acutely aware, great economic, social, political and technological behaviour arealtering the fundamental project of Public Relations. India

locus of many of these changes. As one of the most dynamic ecowith one of the fastest-growing middle classes, with the worlds lademocracy, it is possible that these shifts, and their impact on thecompanies communicate with consumers, are felt more profound

than in any other market.The Indian communications industry requires nuanced unders

of the complex challenges and opportunities it faces. This study wconceived to facilitate such understanding; as such, we interview

a wide variety of senior practitioners on the both the agency andclient sides, including CMOs and practice managers, to incorpor

consensus on many key issues, but one conclusion was paramo

industry must adopt Empirical Public Relations: communicastrategies rooted in the science of public opinion.

77% of the professionals we talked to said that the primary facmaking the industry more complex in the last few years i s the on

shift from measuring coverage of a communications initiative to

measuring its business impact.Empirical Public Relations demonstrates how campaigns m

needle by creating and applying insights at each phase, working

baseline measurements of perception, through communications maximize effectiveness, to tracking research to demonstrate RO

Practitioners agree that applied insights result in impact than89% of clients say they are m

comfortable with research-based campaigns. However, a crugap currently prevents the industry from applying science to its pagencies are waiting for clients to demand measurement, while are waiting for agencies to propose it. Fortunately, we also found

Clients say they are ready to pay the premium for insights-basedcampaigns meaning that agencies must create a framework tothis opportunity.

This new model will be constructed on a foundation of experti

the science of public opinion, which will require development of tcommunications industrys human capital. Therefore, industry leamust enhance their organizations applied science capabilitiesbyupgrading their own skills, developing those of their employees a

new expertise into their teams. And much as Empirical Public Rewill change the way campaigns are priced and paid for, addressinhuman capital challenge will require a revised model of compens

investments in technology, both to communicate most effectivelyever-accelerating, ever more-global digital world, as well as to im

As Public Relations engages in more and more projects withdemonstrative bottom-line impact for clients, the industry will incearn a place at the table with chief executives, a perspective whi

will lead to more business-impactful communications. This posit

it is founded on Empirical Public Relations.

AshwAni singl A

MD & Chief Executive,South Asia,

Penn Schoen Berland


3/7

87%

9%4%

SAME

LESSCOMPLEX

MORECOMPLEX

THE COMMUNICATIONS INDUSTRY

IS BECOMING MORE COMPLEX:

How do you think the public relations/communica-

tions industry has changed in the past few years?

ASKED OF ALL RESPONDENTS

0 10 20 30 40 50 60 70 80

SHIFTFROMCOVERAGETOIMPACT

NEWMEDIUMSOFCOMMUNICATIONS

MOREINFORMEDAUDIENCES

INCREASEDCOMPETITION

SOCIALMEDIA

GLOBALIZATION

77%

74%

72%

68%

74%

63%

SHIFT IN EMPHASIS FROM

COVERAGE TO BUSINESS IMPACT

IS THE LEADING CHANGE FACTOR:

What are the key paradigm shifts you have noticed in the

ways the public relations/communications industry used

to operate in past few years?

ASKED OF ALL RESPONDENTS

A MORE COMPLEX

ENVIRONMENT

87% of Indian communicationsprofessionals believe that the

industry has become morecomplex in the last few years.

Of these respondents, 77%say that the shift from an

emphasis on the measurementof coverage to an emphasis onthe measurement of business

impact has been the key factor.The success or failure of a

communications program is

now understood in terms ofthe impact it has on a clientsbottom line a development

which has proven challenging.

Other key issues leadingto rising complexity includethe rise of new media anda more informed audience

(74%, respectively), increasedcompetition in the marketplace(72%), the rise of social media

(68%) and the increasinglyglobal nature of issues and

crises (63%).

The growing need todemonstrate the business

impacts created bycommunications programs is

creating demand for strategiesthat implement scientic

methodologies at each stage ofthe process Empirical Public

Relations.

EMPIRICAL PUBLIC

RELATIONS:THE NEW MANTRAFOR THE INDUSTRY

In the aftermath of the global nancialcrisis, some have observed that theunderlying principles of commerce have

changed, and that were now operating ina New Normal an era of persistentlyunderwhelming economic progress, dened

by higher unemployment and slower growth.Concurrently, the Indian economy has risenin prominence moving from the fringe of theempire towards the center of the universe.Compounding these changes, rapidly adoptedand quickly evolving new communicationstechnologies have altered and acceleratedthe way information travels. Consequently, thebrief of Indian communications professionalshas fundamentally changed.

To understand the new rules of engagement,

Penn Schoen Berland (www.psbresearch.in)partnered with IMPACT magazine to conduct,for the second annual India Public Relations

& Corporate Communications conference, arst-of-its-kind study amongst practicing publicrelations and communications professionals inIndia.

Our research identied a signicant paradigm

shift for the communications industry, denedby three broad changes:

1. Business impact is supplantingcoverage as the most important successmetric.

2. New media is becoming more importantthan traditional media.

3. Globalization: local stories no longernecessarily remain so.


4/7

EMPIRICAL PUBLIC

RELATIONS

IS REQUIRED

Assessing media coverageis not enough, says one

client. Indeed, 89% of clientsfor communications servicessay that they would be more

comfortable with research-based campaigns. However,

62% of clients report thattheir agencies do not provide

research insights in support oftheir initiatives.

This is true even though bothagencies and clients agree

that Empirical Public Relationsare more effective and provide

greater value than traditional,untested campaigns.

In practice, implementingnsights-based communications

techniques turns out to bea collective action problem:

Agencies are waiting for clientsto demonstrate willingness

to pay for the services, whileclients are waiting for agenciesto demonstrate the capabilities

and to propose relevant work.

The question for the industry:who is going to break the

vicious circle?

NO

YES

38%

62%

AGENCIES FAIL TO PROVIDERESEARCH INSIGHTS TO SUPPORTTHEIR INITIATIVES:

Does your public relations/communication agency provide

research insights to support their ideas or initiatives?ASKED OF CLIENTS

NO

YES

11%

89%

DESPITE CLIENTS INCREASEDCOMFORT WITH RESEARCH-BASEDCAMPAIGNS:

Would you feel more comfortable with your public relations/

communications recommendations and ideas if research insightswere provided to support the ideas or initiatives?

ASKED OF CLIENTS

Public Relations companies do notpropose measurement. CLIENT

Nobody is ready to pay for it. PROVIDER

CLIENTS WILL PAY A PREMIUMFOR ADVICE BASED ONEMPIRICAL EVIDENCE:

Would you be willing to offer an additional incentive for

demonstrated, measurable impact? // Would you be

willing to pay a premium for strategic counsel based on

empirical evidence? ASKED OF CLIENTS

NO

YES31%

69%

25%

75%

AGENCIES ALSO BELIEVETHAT CLIENTS WILL PAY MORE

FOR EMPIRICAL PR:

Do you think your client would be willing to pay a

premium for strategic counsel based on research led

insights provided by your rm? // Would you r client be

willing to offer an additional incentive to your rm for

measurable impact? ASKED OF AGENCIES

NO

YES

7%

93%

27%

73%

EMPIRICAL PUBLIC

RELATIONS = VALUE

In theory, the gap should beeasy to bridge.

73% of clients say they arewilling to offer an additionalincentive to an agency thatcan demonstrate that their

campaigns result in measurablebusiness impacts, and 93%

are willing to pay a premiumfor strategic counsel based on

empirical evidence.

Meanwhile, 69% of agenciessay that clients are willing to

pay a premium for strategiccounsel based on research,

while 75% believe that clientswill offer an additional incentive

for measurable impacts.

One issue that may beimpacting uptake rates is the

question of capacity. Morethan one third of agencies

(38%) report that they still lackany kind of formal process to

measure the impact of theircampaigns.

Before they can reap the valueof Empirical Public Relations

within client relationships,agencies will need to build

the capacity to conduct

measurement of program

efcacy within their practices.


5/7

Clients arent blind to thesemitations. 70% say that upgrading

current employees skills shouldbe agencies top priority. 69% say

that they do not believe that PRand communications agencies aregenerally geared to respond to the

changes in the industry. Clientswho express such skepticism

also say that agencies must focuson attracting and maintainingappropriate talent (63%) and

adding new skills and expertise(57%).

Agency professionals are awarethat talent improvement must

be a major focus of the industry.As Public Relations adopts

more complex methodologiesto respond to more complicated

situations, building teams capableof strategic, insights-based

advisement, not just processimplementation, is increasingly

key. Team continuity is also aconcern.

Communications professionalsidentify a range of threats to thegrowth and improvement of the

industry. One major challenge istalent acquisition, management

and retention.

Agencies are taking steps to meet

these challenges. 77% say theyare planning to upgrade the skills

of their existing staff, 62% will add

new skills or expertise to theirteam, while 46% plan to increase

the size of their team.

CLIENTS AGREE WITH AGENCIESTHAT UPGRADING SKILLS OFEXISTING STAFF IS TOP PRIORITY:

What talent management steps should public

relations/communications agencies take to meet the

needs and expectations of clients ? ASKED OF

ALL RESPONDENTS, SHOWING TOP FIVE

RESPONSES

0 10 20 30 40 50 60 70 80

AGENCIES

77%

62%

46%

0 10 20 30 40 50 60 70 80

CLIENTS

UPGRADESKILLSOFEXISTINGSTAFF

ADDNEWSKILLS/EXPERTISE

INCREASETEAMSIZE

ATTRACT&RETAINTALENT

70%

63%

57%

NO

YES

31%

69%

CLIENTS ARE SKEPTICAL OFAGENCIES ABILITY TO ADAPT TOTHE NEW NORMAL:

Do you think public relations/communication agencies

in general are geared to deal with paradigm shifts in the

industry? ASKED OF CLIENTS

Theres a huge team to service myaccount, but of these ten people,hardly anyone would be doing thethinking work. CLIENT

New people lack patience andquickly move on to the client side, orto new jobs. - PROVIDER

HUMAN CAPITAL: A

GROWING CONCERN

NO

YES

9%

91%

AGENCIES BELIEVE CLIENTEXPECTATIONS ARE CHANGING:

Do you think that your clients expectations from your rm

changed over the last year? ASKED OF AGENCIES

What are the various public relations or communication

services you seek? ASKED OF CLIENTS,

SHOWING TOP FIVE RESPONSES

CLIENTS SEEK MORE THAN JUSTMEDIA RELATIONS FROM THEIRPARTNERS:

0 20 40 60 80 100

MEDIARELATIONS

CSR

DIGITALMARKETING

THOUGHTLEADERSHIP

INTERNALCOMMUNICATIONS

88%

88%

78%

75%

66%

91% of agency respondents saythat their clients expectations

have changed over the last year perhaps the best possible

indication of the transitionthe PR and communications

industry is undergoing toadapt to the New Normal, and

certainly a good reason foragencies to focus on building

capacity and expertise.

Client expectations areevolving toward higher-value

services. Clients still workwith communications partners

for media relations thoughstrategic media relations, with

an eye to business impacts, areincreasingly preferable but themixture of services is becomingincreasingly diverse. Corporate

Social Responsibility, DigitalMarketing, Thought Leadership

and Internal Communicationsadvisement round out the topve services sought by PublicRelations clients all of whichcan benet from an Empirical

Public Relations approach.

While shifting expectations

represent a challenge to Indiancommunications professionals,

they also represent a

signicant opportunity: asclients increasingly associate

Public Relations with moresophisticated, business-critical

projects, the industry willnaturally move up the services

value chain.

NEW EXPERTISE

FOR NEW

EXPECTATIONS


6/7

NO

YES

45%

55%

MORE THAN HALF OF CLIENTRESPONDENTS LACK FORMAL PRIMPACT ASSESSMENT PROCESS:

Do you have any formal process of measuring impact or

effectiveness of your public relations or communications

programs? ASKED OF CLIENTS

How do you measure the effectiveness of your public relations or

communications programs? ASKED OF CLIENTS

MEDIA MEASUREMENT REMAINSCLIENTS DOMINANT MODE OF PRPROGRAM ASSESSMENT:

While communicationsprofessionals articulate cleardesire to implement scienticapproaches, theres still workto do. Just 45% of clients say

they have implemented formalprocesses to understand the

mpact of their campaigns. Andfor many, media measurement

remains the primary (and inmany cases, sole) methodology

for measuring programeffectiveness.

However, an increasing number

re looking beyond media: 62%say they gauge their success

at least partially throughstakeholder research, while

46% monitor reactions on theInternet.

While Empirical PublicRelations has yet to be fully

adopted, much progresshas been made. And

the introduction of moreeffective methods of media

measurement will further itsdevelopment.

MEASUREMENT:

THE HOLY GRAIL OF

PUBLIC RELATIONS

0 20 40 60 80 100

92%

MEDIAMEASUREMENT

MEDIAEXPOSURE

STAKEHOLDERRESEARCH

INTERNALFEEDBACK

INTERNETACTIVITY

85%

62%

62%

48%

N

Y48%

52%

17%

83%

AGENCIES SKEPTICAL OF PEE

PREPAREDNESS FOR THE NEW

NORMAL, BUT THEYRE

CONFIDENT OF THEIR OWN:

Do you think public relations/communication agen

general are geared up to deal with the changes/pa

shifts in the industry? // Do you think your agency

geared up to deal with the changes/paradigm shift

industry? ASKED OF AGENCIES

0 10 20 30 40 50 60 70 80

RESEARCHFORROI

RESEARCHFORINSIGHTS

TECHNOLOGY/TOOLS

70%

63%

57%

AGENCIES MUST INVEST INRESEARCH AND TECHNOLOGYMEET CLIENT EXPECTATIONS:

What should public relations/communications agemake technological investments in to meet the nee

expectations of clients like you? ASKED OF AG

Inevitably, the New Normal landscapewill benet some competitors, whileothers are left behind. Our research

suggests several action items forsuccess going forward:

1. Communications rms mustcontinue to strive to implement

the established science of Public

Relations - both to show clientstheir Return on Investment, andto create actionable insights to

leverage in campaigns.

2. Firms must build human capital

by making investments in theknowledge and skills of current

employees, and continue to attractnew talent who can expand the

industrys range of expertise.

3. Firms must embracetechnology, not just from a new

media perspective but also todrive operational and process

efciencies.

Barely half (52%) of agencyrespondents believe that agencies

in general are prepared to deal withthe issues presented by the ongoing

paradigm shift but 83% say that

their own agency is prepared.In some cases, the emperor willbe revealed to be naked. Indian

communicators must begin to adapt

themselves to the new context orface a brutal reality check.

FINDING SUCCESS

IN THE NEW NORMAL

FOR MORE INFORMATION: S. Khanna, Director, Marketing; [email protected]; M: +971 111 8615; www.psbrese

ABOUT THIS REPORT: Penn Schoen Berland conducted 9 qualitative in-depth interviews (both in-person and over tand 80 online quantitative interviews between February 22 and March 17, 2011. Sample size makes the results indicativ

AUDIENCE DEFINITIONS: Clients - Chief marketing ofcers, heads of communications in organizations; Agencies -relation professionals (manager and above); Media - Journalists and production professionals (managers and above).


7/7

empirical public relations survey: penn schoen berland

Documents