Empirical Public Relations Survey: Penn Schoen Berland
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Transcript of Empirical Public Relations Survey: Penn Schoen Berland
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7/28/2019 Empirical Public Relations Survey: Penn Schoen Berland
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EMPIRICALPUBLICRELATION
A REPORT BY
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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
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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.
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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.
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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
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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).
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