2013 DC & Balt imore Communications Industry Survey & Optimism Index

Brought to you by Capitol Communicator and WB&A Market Research

April, 2013

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Supporting Organizations

Thank you to the following organizations for helping to promote this economic outlook survey, specific to the communications industry, which provides professionals in the region with valuable insights into the current climate of the industry.

AMA DC

AMA Baltimore

DC Ad Club

SMEI Baltimore/Washington

Women in Film & Video

Social Media Week DC

Washington Women in Public Relations

PRSA – National Capitol Chapter

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Through the promotion of our supporters, communications professionals in the Washington, DC and Baltimore regions were presented with a link to participate in a brief web survey aimed at understanding their perspectives on the current economy and job market, as well as their optimism for the future.

This annual study was first fielded in January and February of 2012, the results of which have been used as a baseline for the 2013 study, which was fielded in January of 2013.

In the 2013 fielding there was a total of 99 respondents from the Washington, DC area and 41 from the Baltimore area, as compared to the 2012 study where 132 were from Washington, DC and 17 from Baltimore. Note that several of the questions were also asked in a MarkeTrak®1 study of the general public (fielded in January and February 2013) with 803 total respondents from the Washington, DC (401) and Baltimore (402) areas.

1MarkeTrak® is a quarterly, multi-client omnibus study conducted among adults in the Washington, DC and Baltimore metropolitan areas. *For more information on MarkeTrak® , or for further details on the methodologies used in this study, please visit www.WBandA.com.

Methodology

Detailed Findings

52%40%

8%

65%

28%

7%

5

Satisfaction with the Way Things are Currently Going in the Region

The majority of communications professionals in 2013, similar to 2012, are satisfied with the way things are currently going in the region. Communications professionals continue to be more satisfied than the general public.

Base = Total Sample 1(n=149) / 2(n=140) / 3(n=803)B1. In general, are you satisfied or dissatisfied with the way things are going in the … area at this time?

65%

22%

13%

Communications Professionals1 2012

MarkeTrak® 3

Satisfied

Dissatisfied

Don’t know

Satisfied

Dissatisfied

Communications Professionals2 2013

Don’t know

SatisfiedDissatisfied

Don’t know

6

Economic Conditions in the Region

A very similar proportion of communications professionals in 2013 and 2012 rated the current economic conditions in the area as excellent or good (59% and 56% respectively), which is slightly higher than the general public. However, there were still four in ten communications professionals that gave current economic conditions a fair or poor rating (40%).

Additionally, a significantly higher proportion of communications professionals in 2013 than 2012 think the economic conditions are getting worse (13%, up from 6%). However, this is lower than the general public (31%).

44% 40%52%

56% 59%46%

Current Economic Conditions

Excellent/Good

Fair/Poor

6% 13%h

31%

50% 46%17%

40% 36%

46%

Getting Better/Worse

Better

Same

Worse

Base = Total Sample 1(n=149) / 2(n=140) / 3(n=803)B2. How would you rate the economic conditions in the … area today?*Respondents answering “don’t know” are not shown in charts.

Communications Professionals

MarkeTrak® 3 MarkeTrak® 320121 20132

Communications Professionals

20121 20132

Base = Total Sample 1(n=149) / 2(n=140) / 3(n=803)B3. Do you think the economic conditions in the … area are getting better or getting worse? *Respondents answering “don’t know” are not shown in charts.

7

Personal Financial Situation

Base = Total Sample 1(n=149) / 2(n=140) / 3(n=803) B5/B6. Do you expect that at this time next year, you will be financially better off, the same as, or worse off than you are now?*Respondents answering “don’t know’ are not shown in charts.

Communications professionals in 2013 are likely to say they are either financially better off (35%) or the same (44%) compared to one year ago, which is fairly consistent with 2012 and slightly more favorable than the general public.

Additionally, more than one-half are expecting to be financially better off (55%) in the next year, which is also consistent with 2012 and more favorable than the general public.

Base = Total Sample 1(n=149) / 2(n=140) / 3(n=803) B4/B5. Do you think that you are financially better off, the same as, or worse off than you were one year ago?*Respondents answering “don’t know’ are not shown in charts.

7% 4%16%

32% 33% 39%

51% 55%36%

Expectations for Next Year

Better

Same

Worse

16% 21% 27%

40% 44% 43%

42% 35%28%

Compared to One Year Ago

Better

Same

Worse

Communications Professionals

MarkeTrak® 3 MarkeTrak® 320121 20132

Communications Professionals

20121 20132

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Reasons for Future Expectations - (Communications Professionals)

Reasons communications professionals expect to be financially better off next year include their business going well or getting better (19%) and/or job advancements or promotions (18%). Notably, a significantly higher proportion of professionals in 2013 than in 2012 said they believe the economy will turn around or that it is turning around (13%, up from 3%).

Base = Those who expect to be financially better off (2012 n=76, 2013 n=77) indicate significant differences from pre-wave at the 95% confidence levelTop Mentions, Multiple ResponsesB6. Why do you say that?

18%

3%

21%

11%

9%

13%

18%

19%30%

13%

0% 20% 40% 60% 80% 100%

20132012

My business is going well/getting better

Getting a job/a better job/More jobs available

Annual pay increases/raises

Job advancement/promotions/Have a good job

Reasons for Expecting to be Better Off

Believe the economy will turn around/is turning around

9

Current Business Climate in Industry - (Communications Professionals)

When rating the current business climate within the industry, a significantly higher proportion of communications professionals gave positive ratings in 2013 than in 2012, with nearly seven in ten rating the climate as excellent or good (69%, up from 50%).

Base = Those who are employed and able to rate (2012 n=127, 2013 n=120) indicate significant differences from pre-wave at the 95% confidence levelC9. How do you rate the current business climate in your industry?

Current Business Climate

50%

69%

10%

10%

40% 10%

5%59%

39%

26%

2012

2013

Excellent Good Fair Poor

10

Company Performance - (Communications Professionals)

The proportion of communications professionals that feel their organization is doing significantly or somewhat better than they were one year ago is relatively consistent for the two years.

However, a significantly lower proportion in 2013 than 2012 said their company is doing significantly better compared to one year ago (5%, down from 13%).

Company Performance – Compared to one year ago

Base = Those who are employed and able to rate (2012 n=125, 2013 n=113) indicate significant differences from pre-wave at the 95% confidence levelC10. Thinking about the current business climate, how is your organization doing today compared to one year ago?

51%

46%

33%

36%

10%13%

5%

38%

41% 18%

6%2012

2013

Significantly better Somewhat better About the same Somewhat worse Significantly worse

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Company Performance (continued)

One-half of communications professionals report that their organization is doing significantly or somewhat better than the other organizations within their industry in 2013, which is consistent with 2012.

Company Performance – Compared to competition

Base = Those who are employed and able to rate (2012 n=115, 2013 n=109)C11. How is your organization doing now relative to the other organizations within your industry?

52%

50%

41%

47%

13%

8%

39%

42%

3%

3%

3%2012

2013

Significantly better Somewhat better About the same Somewhat worse Significantly worse

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Company Performance (continued)

Also consistent from 2012 to 2013, about six in ten communications professionals (61%) expect their organization to be doing significantly or somewhat better six months from now.

Company Performance – Expectations for the future(six months from now)

Base = Those who are employed and able to rate (2012 n=124, 2013 n=115)C12. What are your expectations for how your organization will be doing six months from now?

60%

61%

32%

34%

4%12%

14%

48%

57% 5%

3%2012

2013

Significantly better Somewhat better About the same Somewhat worse Significantly worse

13

Optimism Index - (Communications Professionals)

An optimism index was calculated based on how respondents rated the current business climate in their industry and their expectations for their company six months from now.

Overall, optimism was very consistent from 2012 to 2013, with about one-half of communications professionals (49%) being considered optimistic with the way things are going in their industry. Those with a position as a Director or above and/or those with hiring responsibility are slightly more optimistic.

Base = Total Sample (2012 n=149, 2013 n=140)C9/C12. How do you rate the current business climate in your industry?/What are your expectations for how your organization will be doing six months from now?

53%

55%

48%

59%

60%

49%

0% 50% 100%

2013

2012

Optimism

Total

Director or above

Those with hiring responsibility

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Hiring Responsibility - (Communications Professionals)

Close to one-half (46%) of communications professionals surveyed in 2013 have hiring responsibility, which is fairly consistent with 2012.

Base = Those who are employed (2012 n=128, 2013 n=120)C13. Do you have hiring responsibility in your current position?

Yes52%

No48%

Hiring Responsibility

Yes46%

No54%

2012 2013

42%

57%

1%

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Staffing Needs - (Communications Professionals)

Almost all of those who have hiring responsibility expect their staffing needs to increase or stay the same in the next quarter.

Base = Those who have hiring responsibility in their current position (2012 n=67, 2013 n=55)C14. Do you expect your overall staffing needs to increase, decrease, or stay the same within the next quarter?

Overall Staffing Needs in Next Quarter

Increase

Stay the same

Decrease

35%

64%

2%

2013

Increase

Stay the same

Decrease

2012

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Staffing Needs (continued)

Primary Level Impacted in Next Quarter

Entry-level

Middle Management

Intern

Temporary Staffing

Don’t know

Base = Those who have hiring responsibility and whose staffing needs will increase within the next quarter (2012 n=28*, 2013 n=19*)*Small BaseC15. Please indicate the primary level where staffing needs will be impacted within the next quarter.

Notably, a higher proportion of respondents in 2013 than 2012 who indicated their staffing needs will increase in the next quarter identified middle management positions as being the primary level impacted (53%, up from 21%). Additionally, a lower proportion in 2013 than 2012 cited entry level positions (16%, down from 57%).

4%

7%

11%

57%

11%

5%

16%

21%

16%i

53%i

0% 20% 40% 60% 80% 100%

2013

2012

46%49%

4%

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Staffing Needs (continued)

Base = Those who have hiring responsibility in their current position (2012 n=67, 2013 n=55)C17. Do you expect your overall staffing needs to increase, decrease, or stay the same within the next year?

IncreaseStay the same

Decrease

55%44%

2%

IncreaseStay the same

Decrease

Overall Staffing Needs in Next Year

20132012

Almost all of those who have hiring responsibility expect their staffing needs to increase or stay the same in the next year.

18

Staffing Needs (continued)

Primary Level Impacted in Next Year

Entry-level

Middle Management

Intern

Temporary Staffing

Don’t know

Base = Those who have hiring responsibility and whose staffing needs will increase within the next year (2012 n=31*, 2013 n=30*)*Small BaseC18. Please indicate the primary level where staffing needs will be impacted within the next year.

16%

3%

3%

13%

13%

3%

7%

10%

33%

33%32%

32%

0% 20% 40% 60% 80% 100%

2013

2012

Senior Management

Communication professionals in 2013 have a very similar outlook as those in 2012 for the primary level of staffing that will increase within the next year, with entry-level and middle management mentioned most (33% each).

19

How Does a Gap in Employment Impact Hiring Decisions for a Candidate? – (Communications Professionals)

Consistent with 2012, more than one-third of communications professionals in 2013 with hiring responsibility (35%) say that a prospective employee’s six-month to one-year gap in employment does have an impact in their hiring decision.

Base = Those who have hiring responsibility in their current position (2012 n=67, 2013 n=55)C20. Qualifications among candidates being equal, how much does a six-month to one-year gap in employment impact your hiring decision?

Impact of Employment Gap on Hiring

37%

35%

7%

9%

43%

51% 11% 4%

30%

25%

16% 3%2012

2013

Greatly impacts Somewhat impacts Not much impact No impact Don't know

20

Likelihood of Using a Staffing Firm - (Communications Professionals)

Also consistent in the last two years, the majority of communications professionals with hiring responsibility are unlikely to use a staffing firm to help them find qualified talent.

Base = Those who have hiring responsibility in their current position (2012 n=67, 2013 n=55)C21. How likely are you to use a third-party staffing firm to help you find qualified talent?

Likelihood of Using a Staffing Firm

10%

9%

4% 15%

16%

21%

13% 62%2% 7%

6% 54%2012

2013

5 - Extremely likely 4 3 2 1 - Not at all likely

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Most Challenging Level of Staffing - (Communications Professionals)

Communications professionals with hiring responsibility continue to feel that it is most challenging to find qualified talent at the middle management position, which increased slightly from 2012 to 2013.

Base = Those who have hiring responsibility in their current position (2012 n=67, 2013 n=55)C22. In which level of staffing do you find it most challenging to identify qualified talent?

Most Challenging Staffing Level

Middle Management

Senior Management

Executive Management

Temporary Staffing

Don’t know

Entry-level

Intern

18%

4%

6%

7%

18%

0%

2%

2%

16%

18%

44%33%

12%

19%

0% 20% 40% 60% 80% 100%

2013

2012

43%

16%

16%

24%

39%

13%

12%

35%

0% 20% 40% 60% 80% 100%

2013

2012

67%

17%

9%

6%

18%

12%

1%0%

51%i

18%i

0% 20% 40% 60% 80% 100%

2013

2012

22

Company Profile - (Communications Professionals)

Base = Those who are employed (2012 n=128, 2013 n=120)Top MentionsC5. Please select the type of organization where you currently work.

Type of Organization

Marketing Communications Firm

Corporation

Support Products and Services

Government

Association/Non-profit

Professional Services

Base = Those who are employed (2012 n=128, 2013 n=120) C7. How many full-time employees work for your company?

Number of Employees

21 - 50

51 - 100

1 - 20

Over 100

Base = Those who are employed (2012 n=128, 2013 n=120) C6. How long has your company been in business?

Years in Business

6 - 10 years

11 - 20 years

1 - 5 years

Over 20 years

7%

9%

5%

12%

5%

5%

6%

8%

13%

19%

38%27%

13%

21%

0% 20% 40% 60% 80% 100%

2013

2012

2013: 20

2012: 17i

23

20

Mean Median

2013: 135

2012: 157

60

79

Mean Median

Media Property

<1 year

23

Respondent Profile - (Communications Professionals)

Base = Those who are employed (2012 n=128, 2013 n=120)Top MentionsC8. Which of the following best describes your current job title or position?

Job Title

Director Level

Owner/President/CEO/Principal/Partner

Entry-level/Associate

Senior Manager

Mid-level Manager/Administrator

First-level Manager/Supervisor

Senior Executive/Other “C” level position

Base = Those answering (2012 n=148, 2013 n=140)D3. Please indicate the number of years of experience you have in the workplace.

Years of Experience

<1 – 3 years

4 - 9 years

21 - 30 years

10 - 20 years

Over 30 years9%

15%

20%

8%

14%

16%

10%

22%

8%

21%17%

8%

22%

7%i

0% 20% 40% 60% 80% 100%

2013

2012

20%

26%

32%

16%

21%

27%

29%

14%

9%7%

0% 20% 40% 60% 80% 100%

20132012

2013: 20

2012: 19

20

18

Mean Median

Demographic Characteristics - (Communications Professionals)

Demographics Total 2012 2013

Age n = (144) (140) 18 – 24 6% 8% 25 – 34 26 22 35 – 44 24 19 45 – 54 25 34 55 – 64 16 14 65 or older 3 2 Mean 42.7 42.8 Median 41.9 45.2 Education n = (146) (140) Some high school 1% -% Graduated high school/GED - 1 Some college/2-year degree 3 7 Graduated college/4-year degree 53 54 Advanced degree (MBA, PhD, etc.) 42 39

Base = Those answeringD1, D2

Demographics Total 2012 2013

Race/Ethnicity n = (138) (132) Caucasian 82% 85% African-American 9 8 Hispanic or Latino 3 5 Asian-American or Pacific Islander 1 2 Multi-racial 4 1 Income n = (123) (106) $15,000 or less -% 1% $15,001 to $25,000 2 2 $25,001 to $35,000 4 3 $35,001 to $50,000 12 17 $50,001 to $75,000 24 19 $75,001 to $100,000 22 20 $100,001 to $125,000 16 12 $125,001 to $150,000 10 13 More than $150,000 11 13 Mean $90,870 $92,760 Median $84,720 $85,710 Base = Those answering

D4/D5, D6

Demographic Characteristics - (General Public)

Demographics 2013

Age n = (796) 18 – 24 3% 25 – 34 14 35 – 44 11 45 – 54 21 55 – 64 24 65 or older 28 Mean 53.6 Median 55.7 Education n = (799) Some high school or less 1% Graduated high school/GED 10 Vocational/Tech school 1 Some college/2-year degree 19 Graduated college/4-year degree 34 Advanced degree (MBA, PhD, etc.) 35 Base = Those answering

D1, D2

Demographics 2013

Race/Ethnicity n = (772) Caucasian 75% African-American 16 Asian-American or Pacific Islander 5 Hispanic or Latino 4 Multi-racial 3 Native-American or Alaskan Native 1 Other 1 Income n = (661) $15,000 or less 6% $15,001 to $25,000 6 $25,001 to $35,000 5 $35,001 to $50,000 10 $50,001 to $75,000 20 $75,001 to $100,000 16 $100,001 to $125,000 17 $125,001 to $150,000 10 More than $150,000 10 Mean $84,270 Median $79,620 Base = Those answering

D4/D4A, D8