ICCO World Report 2012

 

 

I.                  An evolving world

II.               The geography of growth

A.     The US and UK

B.     The BRICs

C.     Europe

D.    Turkey

E.     Australia

III.           The PR tortoise and the advertising hare

IV.            Prospects for services

V.                Client industries

VI.            (Un)employment and the talent pool

VII.         Challenges to success

VIII.     In conclusion

Global PR Picks Up the Pace

After returning to growth in 2010, PR consultancy continued steadily along its path in 2011, quietly surpassing the world economy in terms of growth and gaining share of marketing and communications spend in the process.

 

I. An evolving world

By all accounts, we have seen a rebound in the global economy after the crises and collapses of 2008. Business performance in 2010 and again in 2011 has been buffered by more resilient than expected financial markets and rapid growth in the consumption of digital media. Despite a persistent Eurozone crisis, some budgetary setbacks for the US economy and nuclear disaster in Japan in 2011, the world economy grew by an estimated 3.8% – nearly average growth for the decade leading up to 2008[1].

What does that mean for communication, and more specifically for public relations?

In 2011, marketing communications holding companies had a record year. Worldwide revenues for the “big four” groups were all up, ranging from 6% to nearly 11%. The fact that everyone gained strongly implies that communications spending rose overall.

Addressing this point in the WPP 2011 Annual Report, Sir Martin Sorrell astutely outlines the central factors in the global, socio-economic environment that have driven and, he predicts, will continue to drive communications services spending by client organisations over the long term.

Key amongst these for public relations, according to ICCO projections, are:

1)      The opposing influences of a move to greater centralisation in companies and an intensified focus at the country level, i.e. a shifting of organisational structures to find the right mix of global and local balance. This ‘flux’ implies a more urgent need for coherent communications to stakeholders, and PR consultancy is poised to meet the demand.

2)      The enhanced challenge of internal communications. According to Sir Martin, “The biggest task facing CEOs is communicating strategic and structural change to increasingly larger and more complex organisations.” In essence, a need for really good, internal PR.

3)      The fact that while consumer behaviour has changed considerably over the past few years, corporate behaviour has changed even more. Risk-averse and hoarding cash reserves, corporates are more than ever realising the importance of investing in their brands as a means to gain market share, notes Sir Martin – which can only be positive for the marketing and communications industry as a whole. PR is arguably the missing link between an empowered, digital and increasingly critical consumer and the reputation of a corporate brand.

4)      Overcapacity across industries coupled with a shortage in human capital – in short, an enormous staffing problem. According to our survey, this is not just a problem but the number one problem for PR consultancies. Simultaneously, it represents a public relations challenge for organisations downsizing their personnel while trying to attract and retain the right talent.

Country	2011 Revenue Growth vs 2010	2012 Revenue Prediction
Australia	+21%	Up 11%
Austria	+4%	Up 3%
Belgium	+8%	Stable
Brazil	+20%	Up 25%
Bulgaria	(N/A)	(N/A)
Croatia	+2%	Up 5-10%
Czech Republic	+5-10%	Up 5-10%
Denmark	+5-10%	Up 15%
France	+5.5%	Up
Germany	+10%	Up
India	+15-20%	Up
Ireland	Stable	Stable
Italy	+1%	Stable
Norway	+5-10%	Up 10%
Portugal	-20%	Down 10%
Russia	+23%	Up 17%
Slovenia	-20%	Stable
Spain	(N/A)	Down 10%
Sweden	+10%	Up 5-10%
Switzerland	-3%	Up
Turkey	+10%	Up 10-15%
UK	+10%	Up 10%
US	+5-10%	Up 5-10%

Given the sum of auspicious conditions above, it comes as no surprise that public relations consultancy has been growing. Just how much it has grown and in which direction are topics explored in this report. We also look ahead to projected growth for 2012 and the challenges PR consultants will need to overcome in order to succeed.

II. The geography of growth

If 2010 was the year PR consultancy “returned to growth”, 2011 was the year that growth consolidated in most of the countries that contributed data to our survey[2].

The table to the right provides an overview of annual growth estimates by market. These are broken down by region in the discussion that follows.

A.     The US and UK

The two largest and most developed markets for public relations – the US and the UK – both reported significant growth in 2011, estimated at 5-10% and 10% respectively. 2012 looks set to record equally strong growth over 2011 levels.

Within the UK, London continues to flourish as an international hub for public relations campaigns, resulting in a decidedly stronger market there than in other locations. This international strength has helped to offset the negative impact of sharply reduced government spending and public discontent over lobbying, a core component of public affairs work. The real focal point, though, is consumer/brand marketing activity, from which UK PR consultancies derived one third of their revenues in 2011. This area should expand even further in 2012, boosted by the London Olympics.

US firms also benefitted from an increase in consumer activity, supported by strong demand for digital/social media, corporate communications and crisis & issues management services. International work was still affected by a muted global economic environment, but overall market conditions for 2012 are expected to improve.

B.     The BRICs

The BRIC countries (less China, which is not included in this report) continued to develop their respective public relations markets at a rapid pace, showing average growth of 20% between them. This expansion far outpaced overall GDP growth, which ranged from 7.2% for India to 4.3% for Russia and 2.7% for Brazil[3].

In Brazil, the demand for public relations services continues along a sharply upward trend, with estimated growth over the past four years as follows:

Year	2008	2009	2010	2011
Annual Growth	+20%	+20%	+23%	+20%

In 2011, demand was particularly strong from the public sector, and growth stemmed mainly from government communications along with digital/social media work and media trainings. Internal communications are on the rise for 2012, while basic media relations are least likely to expand. Overall, the industry suffers from a lack of education amongst private companies in particular about the offering and value of public relations. Moreover, while freedom of expression in the media is now prevalent in the largest Brazilian cities, it remains stifled in smaller localities, where political and commercial interests still dominate the press.

In Russia, the trend line of growth is almost as impressive as that of Brazil, with the exception of a sharp dip in 2009 owing to the effects of the macro financial crisis:

Year	2008	2009	2010	2011
Annual Growth	+33%	-15%	+17%	+23%

2011 growth in Russia was driven directly and tangentially by the public sector, through strong demand for government relations, public affairs work and political consulting. Crisis communications also played an important role in the wake of significant corporate restructurings. The forecast for PR consultancy in 2012 is similarly positive, with a predicted increase in revenues of 17%. The risk going forward, however, according to economists, is that Russian economic growth will slow almost to a standstill without serious structural reforms – gravely affecting contracts for public relations services in the process, especially those originating from the public sector.

In India, there exists no formal measurement of the PR consultancy sector, although conditions have clearly improved over the last several years. Annual revenue growth in 2011 is estimated to have been in the range of 15-20% over 2010 levels, and 2012 is forecast to show additional growth in the business. Much of the demand comes from the need for financial communications or focuses on the buoyant technology industry, but it is also propelled by consumer marketing and entertainment activities. The IPL, a professional cricket league valued around $4 billion[4], is one of the largest buyers of PR in these latter areas, so its relative health or illness in the future will play a role in the level of demand for services.

C.      Europe

PR consultancy business across European countries varied considerably in 2011 in terms of growth but can generally be said to fall into sub-regions of similar performance, influenced in part by divergent macro-economic climates in each: the Nordics, Southern Europe and Western & Central Europe.

Of these, the Nordics exhibited the strongest growth in PR consultancy, with Sweden at 10% and both Denmark and Norway at 8%. All three countries also reported an increase in profitability in 2011 plus a stable or improved outlook for 2012 alongside a positive trend for business conditions in general.

Conversely in Southern Europe, where the macro-economic picture has been – and continues to be – noticeably gloomier, PR consultants struggled to maintain 2010 turnover levels. Italy and Croatia remained fairly stable at 1% and 2% growth respectively, but Slovenia and Portugal saw dramatic drops in revenue of -20% on average. PR consultancies in Spain (and Greece, which did not participate in this survey) are likely to have experienced a contraction as well, though there are no reliable figures available for comparison. Dire economic conditions in the Southern countries and national financial rescue packages are hard to ignore, however, especially when the client base is predominantly local.

Western & Central Europe fared better than their southern neighbours, with mostly single-digit growth averaging 5%. Germany, considered to be the economic motor of the region, was the star performer with a 10% improvement over 2010. Switzerland, on the other hand, lagged behind at -3% growth, hampered by the economic fallout of a strong Swiss Franc and widespread belt-tightening by client organisations.

Ireland is a separate case worthy of mention. Following the bursting of its property bubble in 2007 and hard-hit financially since 2008, it was the first Eurozone state to declare a recession during the crisis[5]. Banking scandals and a November 2010 European bailout ensued, leaving business conditions constrained at best. Public relations consultancy was initially boosted by crisis work during this period but in 2010 suffered a drop of -15% revenue on average. PR firms were able to maintain these levels in 2011, however, and predict that 2012 will be much the same, despite sluggish domestic demand and ongoing austerity measures from the government.

D.     Turkey

Turkish GDP is estimated to have grown at approximately 8.5% last year[6], although this rate is expected to slow considerably in 2012 amongst concerns that the economy remains dangerously unbalanced with a widening current account deficit and shrinking foreign direct investment. Economists note that growth reliant on spending rather than production, which is very much the case in Turkey, is not sustainable over the long term and should decline.

Growth in PR consultancy, on the other hand, is trending sharply upward. Following no growth in 2009 and 7% growth in 2010, Turkish firms expanded by 10% in 2011. The forecast for 2012 is for an additional 10-15% average increase in revenues, fuelled by developments to the country’s infrastructure and the drive to address the needs a young and growing population.

E.      Australia

Australian PR firms are flourishing. On average, they boosted their revenues by an average of 21% in 2011 and, more impressively, improved profitability by 22%. They are expecting a further 11% rise in turnover this year in spite of the fact that local budgets for international campaigns are being stunted by the strength of the Australian dollar. Overall, the economy is healthy[7], though, and has created a stable environment for business.

III.  The PR tortoise and the advertising hare

If PR is the steady-gaining proverbial tortoise, than advertising is the overconfident hare that just might be overtaken unawares. According to our survey, global marketing spend on PR as compared to other communications disciplines (the most visible of which is advertising) rose in 2011, just as it has done since at least 2007, when ICCO began to collect information on relative market share. 12 countries, including the five largest markets in this survey[8], reported that spending on PR increased at the expense of other disciplines, while an additional 10 countries observed a stable allocation of funds. Only one country – Bulgaria – noted a loss in market share for public relations but predicts this will reverse itself in 2012. In fact, a total of 14 surveyed countries expect the upward trend for PR to continue this year.

These findings concur with projections from analysts in the US, the largest PR market globally and a frontrunner for global industry trends. “The only Traditional Marketing segment to outperform the [US] economy, Public Relations & Word-of-Mouth Marketing will see CAGR of 14.0% in the forecast period [of 2011-2015] to $10.96 billion in 2015…. Direct Marketing will remain the largest marketing segment in 2011, and Public Relations & Word-of-Mouth Marketing will be the fastest-growing, as the role of PR expands and becomes a more prominent component of integrated marketing campaigns and the increasing popularity of social media fuels WoMM growth.”[9]

IV:  Prospects for services

For the fourth year in a row, the public relations service areas with the best growth prospects globally are: Digital & Social Media, Public Affairs, and Crisis & Issues Management. Corporate Communications has also been a top contender for the past several years and remains in high demand in both the US and UK.

	Locations with Best Growth Prospects	Locations with Least Growth Prospects
Analysis & Research	—	Denmark
Consumer/ Brand Marketing	Switzerland, UK, US	Ireland, Slovenia, Spain
Corporate	Croatia, Slovenia, Sweden, UK, US	Belgium, Spain
Crisis & Issues Management	Austria, Belgium, Czech Republic, France, Portugal, Spain, Switzerland, UK, US	Russia
CSR	Slovenia	—
Digital/Social Media	Austria, Belgium, Brazil, Croatia, Czech Republic, France, Italy, Portugal, Russia, Slovenia, Spain, Switzerland, Turkey, US	Denmark
Event Management	—	Croatia, Czech Republic, Portugal, Switzerland
Financial/ Investor Relations	Russia, Spain, UK	Italy, Switzerland
Healthcare	Australia, India, Ireland, Russia, Spain	—
Internal Communications	Brazil, Spain	Russia, Sweden, US
Lobbying	Sweden	Austria
Media Relations	Denmark, Sweden	Brazil, Germany, Russia
Media & Spokesperson Training	—	—
Political Consulting	Croatia	—
Public Affairs	Belgium, Brazil, Bulgaria, Croatia, Czech Republic, Denmark, India, Ireland, Norway, Portugal, Spain, Switzerland	Austria, US
Publishing/ Production	—	Czech Republic, Denmark
Reputation Management	—	Switzerland
Sponsorship & Promotion	—	Portugal
Strategic Consulting	Denmark, Switzerland	—
Technology	Ireland	—

Interestingly, there is evidence of a mounting appetite for Public Affairs across European and BRIC countries but an actual decline in demand for work in this area in the US and no notable outlook for growth in the UK. This may be a reflection of ongoing changes (and cutbacks) in government programmes and policies throughout Europe as well as rapid development in governmental policy in the emerging BRIC economies. In the UK, on the other hand, most austerity measures are now in place, while in the US major federal budget decisions were taken last year.

Consumer/Brand Marketing also merits special attention. As noted in the revenue analysis above, this service area accounted for one third of PR consultancy income in the UK in 2011 and was a major contributor to the success of PR firms in the US as well. This should continue to be the case in 2012 in light of the Summer Olympics taking place in London, and prospects remain strong in the US despite subdued consumer spending in the second quarter.

Activity in Consumer/Brand Marketing is expected to stall, however, in the economies hardest-hit by financial crisis and in which shaky consumer confidence persists, namely in Ireland, Slovenia and Spain.

Specific country locations that foresee a rise or fall in demand in each of the main PR service areas are listed in the table to the left.

The clearest castoff in terms of services, though, is once again Event Management, mentioned explicitly as a fading area of interest for clients in five separate countries. This year’s result marks the fourth straight year of noteworthy decline for this PR offering.

V. Client industries

	Industries with Best Growth Prospects	Industries with Least Growth Prospects
Australia	Finance, IT, Wellness	Construction
Austria	Clean Technology, Healthcare	Public Sector
Belgium	Energy, Food, Healthcare, Public Sector	Automotive, Construction, Tourism
Brazil	Banking, Public Sector, Sports	Mining, Retail
Bulgaria	Consumer Goods, Food & Bev, Healthcare	Not-For-Profit
Croatia	Energy, ICT, Public Sector, Tourism	Automotive, Consumer Goods, Pharmaceutical, Real Estate, Textiles
Czech Republic	Consumer Goods, Energy, Finance, Healthcare, Heavy Industry	Real Estate
Denmark	Banking, Energy, Finance, IT, Public Sector	Construction, Pharmaceutical, Real Estate
France	Banking, Finance, Professional Services	Consumer Goods
Germany	Energy, Environment, Finance, Public Sector	—
India	Construction, Consumer Goods, Energy, Healthcare, Infrastructure, Manufacturing, Mining, Retail, Telecoms	Textiles
Ireland	Energy, IT, Pharmaceuticals	Consumer Goods, Public Sector
Italy	Energy, Utilities	Banking, Consumer Goods, Finance, Media
Norway	Public Sector	Retail
Portugal	Consumer Goods, Retail	Public Sector, Wellness
Russia	Energy, Consumer Goods, Healthcare, IT, Telecoms	Automotive, Retail
Slovenia	Energy, Finance, Pharmaceuticals, Telecoms, Utilities	Automotive, Food & Bev, Textiles
Spain	Export, Tourism	Construction, Real Estate, Retail
Sweden	Energy, Food, Infrastructure, Pharmaceuticals	Automotive, Retail
Switzerland	Banking, Construction, Energy, Environment, Finance, Healthcare, Not-For-Profit, Real Estate, Tourism	Culture, Education, Retail
Turkey	Construction, Energy, Healthcare, IT, Real Estate, Retail	Textiles
UK	B2B, Consumer Goods, Finance	Public Sector
US	Consumer Goods, Energy, Finance, Healthcare	Industrial Products, Not-For-Profit, Real Estate

As was the case in 2009, 2010 and 2011, Energy tops the list of most promising industries in terms of demand for PR services. The need to make better use of existing natural resources and to replace them with alternative/ renewable sources of energy is both global and urgent. Coupled with cutbacks in government subsidies, new carbon tax regulations and rising tariffs on public utilities, the Energy sector is dynamic, controversial and of universal concern to the widest possible range of stakeholders.

Banking & Finance is also on the rise again, cited as a promising client industry for PR consulting in 10 of the surveyed countries, including both the US and the UK.

Eight countries anticipate an increase in demand for public relations services from organisations within the Healthcare industry, such as: government, charities, medical establishments, private insurers and others. New innovations and the challenges of providing effective healthcare are priority areas of focus both for countries with ageing and shrinking populations (e.g. in Europe) as well as for those with young and growing populations (like India and Turkey).

As for Public Sector interest in PR, predictions are mixed internationally. While budgets are robust in Northern European nations like Belgium, Denmark and Germany as well as in Brazil, they are decidedly constricted in countries that find themselves in the immediate aftermath of deep cuts to public sector spending: e.g. in Portugal, Ireland and the UK. Communications will not be a budgetary priority for government in these latter countries.

Consumer Goods is another industry with mixed prospects across surveyed countries. As previously noted, this sector will continue to drive demand for PR services in both the US and UK. It will also play an important role in emerging markets such as Bulgaria, the Czech Republic and India. Not so in (mostly Southern European) countries with households that lack disposable income owing to high unemployment and remain highly sceptical about their local economies – e.g. in Croatia, France, Italy and Ireland.

VI. (Un)employment and the talent pool

The macro picture of national employment levels can present both opportunities and stumbling blocks for PR consultancies. On the one hand, high unemployment rates means wider availability of talent and workers willing to accept lower compensation. It can also mean that the “right” talent is less willing to leave an existing job owing to greater insecurity about the market or because a current employer has gone to extra lengths to retain that person.

On the other hand, low unemployment produces a situation in which there are not enough workers to meet hiring needs, and salaries become more expensive. It may, however, allow skilled professionals the flexibility to pursue their interests and change jobs if the right offer comes along – representing an opportunity for PR consultancies that foster a unique corporate culture and offer new challenges to employees[10].

In which circumstances do the countries in this report find themselves? The graph on the following page shows the most recent available unemployment figures for each[11], ordered from highest to lowest.

On one end of the spectrum lie Spain and Portugal, countries with two of the highest unemployment rates in our survey group. Fiscal collapse in the region has resulted in a majority of consultancies operating on smaller budgets than last year and thus unable to take advantage of the flood of potential employees now accessible for hire. As these economies return to health and clients begin to spend again, local PR firms will have their choice of available talent. Unfortunately, economists believe it may still take several waves of structural reforms over several years before conditions really improve.

Ireland, which is experiencing record unemployment levels, also falls at the top of the chart. Its PR consultancies are recovering from three years of recession and are not yet prepared to hire new staff. As a result, entry levels jobs are almost non-existent. Better-equipped firms are taking advantage of the availability of talent, though, to recruit mid-to-senior-level managers with a broader skills base.

 

On the other end of the spectrum lie countries like Switzerland and Australia. Both report that very high employment levels make it exceptionally difficult to staff PR firms, though for different reasons. In Switzerland, applications from university graduates are actually increasing, making it possible to fill junior positions, but a lack of professionals with depth of practical experience hinders consultancies from filling more senior roles. In Australia, candidates have a range of jobs to choose from, so the bigger problem is finding professional staff with affordable salary demands.

In young and expanding markets Brazil, India and Russia, active workforce numbers may be swelling, but a general shortage of skilled professionals has created an obstacle for public relations employers looking to hire at any level. Add to this relatively low unemployment, and the qualified senior talent that exists becomes even tougher to attract. PR consultancies and trade associations in these countries are working hard to fill the skills gap by investing in professional training programmes and partnering with local universities.

Meanwhile in the UK, the PR consultancy scene is so broad and varied – from individual practitioners to large multinationals and with a full range of generalist to specialist offerings – that not all firms can be said to be in the same stage of the economic lifecycle. Although on average UK consultancies experienced growth of 10% in 2011, some firms are still streamlining their operations, resulting in redundancies. Nonetheless, many consultancies are hiring again, in step with improved market conditions and new business gains. In-house PR teams appear to be moving more slowly (possibly still constrained by corporate hiring freezes), affording consultancies a first-mover advantage to grab available talent.

VII. Challenges to success

The top five challenges ahead for public relations consultancies, according to surveyed countries, are:

1) Staffing

In line with the preceding discussion and as in previous years, the “talent” issue is one of the most pressing concerns for PR. Consultancy heads worry about first attracting people with the right mix of skills and experience and then retaining them over time. General business and analytical skills are increasingly important to find but especially hard to come by at the right price.

2) Pricing

The pricing of services is also viewed as a major challenge for consultancy businesses, and one that is inevitably liked to the other challenges listed here. According to ICCO’s Q2 Trends Barometer survey[12] for 2012, downward price pressure is prevalent in many countries owing to a combination of increased competition (especially from low-end service providers) and strain on client budgets. However, the same survey shows that many clients are in fact willing to pay a premium for more strategic PR services like public affairs, investor relations or issues management. This is true despite a lack of consensus among consultants or clients on how best to demonstrate return on investment.

3) Client budgets

Whether clients require more work for the same money or offer to pay less money for the same work, budgets for PR consultancy services come under pressure. Consultants are thus faced with the difficult task of adjusting the resources they dedicate to a client without diminishing quality of service.

3) Profitability

All of the above issues directly affect the consultancy’s bottom line – be it paying more for the right talent, pricing lower in order to win a pitch away from competitors, over-servicing a client account or otherwise. The challenge is to grow the business without sacrificing profit margins.

3) Measurement

Equally important is the question of measurement. There is little agreement within marketing and communications circles on methodology or metrics for evaluating the effectiveness of PR campaigns. In fact, use of advertising value equivalents (AVEs) remains widespread[13], despite being rejected as invalid under the Barcelona Principles[14], precisely because there exists no universal standard of measurement that satisfies the requirements of both PR consultants and in-house marketers.

VIII. In conclusion

In spite of a problematic global economy, PR consultancy grew significantly in 2011 in all but one region covered in this report. The BRICs (excluding China) and Australia grew by 20% and 21% respectively; Turkey by 10%; the US and UK by an average of 9%; the Nordics by 8% and Western & Central Europe by at least 5% on average. That growth was driven by demand for consumer/brand marketing services (particularly in the US and UK), corporate work and public affairs as well as crisis communications – all buoyed by the continued rise of digital/social media. Only Southern Europe fared poorly with an estimated decline of -9% or more against the backdrop of the sovereign debt crisis.

Projections for 2012 in Southern Europe remain subdued – for stable to decreased revenues across the region – but this state of affairs contrasts sharply with predictions for the rest of the world, as can be seen in the following summary.

“Down”	“Stable”	“Up”	+0-5%	+5-10%	+10-15%	+15-20%	+20-25%
Portugal, Spain	Belgium, Ireland, Italy, Slovenia	France, Germany, India, Switzerland	Austria	Croatia, Czech Republic, Sweden, US	Australia, Norway, Turkey, UK	Denmark, Russia	Brazil

Consultancies in Brazil expect to see gains as high as 25% this year. Russia is on track for a 17% revenue boost, and a number of other countries – including Australia, Denmark, Norway and Turkey – foresee double-digit growth for 2012.

This is very positive news for public relations, especially when compared to a forecast for global economic growth of only 3.5% (down from 4% in 2011), and with Europe bordering on recession[15]. And since client spending is not likely to rise dramatically in an environment of limited economic expansion, these relative forecasts suggest that public relations will continue its trend of gaining share of spend away from other marketing and communications disciplines like advertising.

New clients globally are most likely to come from Energy, Banking & Finance and Healthcare. Public sector spending on PR will flourish in some countries too but flounder in others, particularly those with austerity measures in place. Consumer goods companies are also expected to increase PR spending in the US and UK as well as in emerging markets but may well decrease budgets in locations with weak consumer confidence like Italy and France.

Demand is most likely to increase internationally for services in Digital/Social Media, Public Affairs and Crisis & Issues Management – and most likely to decrease in the area of Event Management.

Knowing all of this and adapting their businesses accordingly, PR consultancy heads will still be faced with enormous challenges for the foreseeable future in the areas of staffing, pricing, client budgets, profitability and measurement. Tackling these issues will require not just foresight and understanding on the part of consultants but also a united effort led by national and international trade associations and in collaboration with other industry organisations.

Appendix 1 – Map of participating countries and ranking of PR consultancy market size

23 national trade associations contributed data for this report, representing a broad geographic spread and including the largest markets for public relations. The countries they represent are highlighted in colour on the map and listed below.

The numbers on the map correspond to a ranking of overall market size for PR consultancy among participating countries, in order from largest to smallest. Only those markets considered to be worth an excess of €200 million in annual fee revenue are ranked[16].

 

 

Appendix 2 – Table of ICCO trade associations surveyed and estimated local market size

Country	Trade Association	Number of member firms	2011 fee income of members[17]	Estimated % of total market[18]
Australia	Registered Consultancies Group (RCG) of the Public Relations Institute of Australia	112	€ 246 m	(N/A)
Austria	PR Quality Austria	14	€ 36 m	35%
Belgium	Belgian Public Relations Consultants Association (BPRCA)	30	€ 32 m	75%
Brazil	Brazilian Association of Communications Agencies (ABRACOM)	353	€ 667 m	80%
Bulgaria	Bulgarian Association of PR Agencies (BAPRA)	17	N/A	60%
Croatia	Croatian Public Relations Agency Association (CPRAA)	9	€ 4 m	60%
Czech Republic	Association of Public Relations Agencies (APRA)	18	€ 27 m	70%
Denmark	Public Relations Branchen	27	€ 41 m	70%
France	SYNTEC Conseil en Relations Publiques	40	€ 159 m	65%
Germany	Association of Public Relations Agencies (GPRA)	30	€ 180 m	45%
India	Public Relations Consultants Association of India (PRCAI)	21	N/A[19]	85%
Ireland	Public Relations Consultants Association (PRCA Ireland)	28	€ 40 m	75%
Italy	Assorel	45	€ 139 m	30%
Norway	Norwegian Public Relations Consultants Association (NIR)	21	€ 65 m	80%
Portugal	Portuguese Association of Communications and Public Relations Consultancies (APECOM)	26	€40 m	65%
Russia	Russian Public Relations Consultancies Association (AKOS)	31	€ 85 m	60%
Slovenia	Chamber of Public Relations (ZOJ)	13	€ 10 m	50%
Spain	Association of Public Relations and Communications Consultancies (ADECEC)	19	N/A	50%
Sweden	PRECIS Association of Public Relations Consultancies in Sweden (PRECIS)	32	€ 155 m	80%
Switzerland	Association of PR Agencies in Switzerland (BPRA)	23	€ 55 m	65%
Turkey	Communications Consultancy Companies Association (IDA)	22	€ 48 m	60%
United Kingdom	Public Relations Consultants Association (PRCA)	300[20]	€ 950 m	60%
United States	Council of Public Relations Firms (CPRF)	101	€1,850 m[21]	70%

 

 

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[1] According to IMF World Economic Outlook figures

[2] See appendices 1 & 2 for a full list of participating countries and their national trade associations

[3] From the IMF’s World Economic Outlook Database; percent change in GDP at constant prices

[4] Approximate brand valuation according to Brand Finance, though current value may be eroding owing to strained relations among IPL stakeholders

[5] In September 2008; data from the Central Statistics Office Ireland

[6] From the IMF’s World Economic Outlook Database; percent change in GDP at constant prices

[7] 2% real GDP growth in 2011, estimated to rise to 3% in 2012 and accompanied by low inflation; based on IMF data published in the World Economic Outlook Database

[8] See Appendix 1 for estimated PR consultancy market size in respondent countries: the top 5 are the US, UK, Brazil, Australia and Italy

[9] From the 28/09/2011 press release on private equity firm Veronis Suhler Stevenson’s (VSS) 2011-2015 Communications Industry Forecast for the US market

[10] According to a December 2008 study conducted by NYU graduate students and co-sponsored by ICCO and the Institute for Public Relations (IPR): individuals most suited to PR consultancy work thrive on challenge; employers should create a differentiated and attractive corporate culture in order to attract and retain talent. Press release of full recommendations available in the knowledge base on www.iccopr.com

[11] Estimates compiled from the OECD statistics database (stats.oecd.org), International Labour Organization data (Laborsta) and CIA World Factbook (*2011 estimates for India and Russia)

[12] Quarterly, online survey of national trade association board members (leading PR consultancy heads) across ICCO member countries. Press releases on the key findings are posted to www.iccopr.com.

[13] As revealed by the 2011 Q3 Trends Barometer survey, available on www.iccopr.com

[14] The “Barcelona Declaration Measurement Principles”, contrived at the 2010 AMEC Summit in Barcelona and endorsed by leading PR industry organisations ICCO, AMEC, PRSA, IPR and Global Alliance

[15] According to the April 2012 revisions to the World Economic Outlook report, updated quarterly by the IMF

[16] Total market size for Spain is unknown but likely to surpass €200m. The Swedish market is estimated to be just under €200m.

[17] Estimated figures at average Dec 2011 exchange rates to the euro, in millions

[18] In terms of total revenue from fee income for PR consultancy firms

[19] PRCAI 2010 basis industry estimate of $155m (€117m) for all PR consultancy, including freelancers

[20] Approximately 300 consultancy members + 100 in-house teams + 100 individuals with associate memberships

[21] Entire US market estimated at $3.5bn for 2011 in private equity firm Veronis Suhler Stevenson’s Communications Industry Forecast