RALEIGH, North Carolina, Oct. 14, 2019 /PRNewswire/ -- The global public relations market has been growing at a rate of 5 percent, with around 70 percent of PR agencies providing a full range of services, according to Beroe Inc., a procurement intelligence firm. The services include media relations, crisis management services, lobbying services, and event management along with brand marketing services, and therefore the buyers have a large supply base.
Western Europe, North America, and some parts of APAC, such as Australia, Japan, Hong Kong, and Singapore, have high market maturity. The major challenge public relations markets in Europe and North America is to find and retain critical talent at a time when the need for talent to manage specialized areas, like digital PR, is increasing.
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
The PR industry is experiencing changes in response to new technology, expansion of new communication channels and greater use of data analytics, with the strength of the digital spend continuing to be the major growth driver of the PR industry overall. However, PR firms are facing a talent crunch with a lack of resources to meet the growing needs for diverse talents across mediums, resulting in buyers opting for digital agencies over PR agencies.
Recent expansions of PR agencies reflect a trend that indicates that buyers are looking at reducing roster size and want to have global contracts with incumbents. Relevant trends affecting the PR market till 2020 include specialized agency engagement, digital PR, talent crunch management and performance-based compensation.
- PR activity through social media sites is the most important trend that is seen in the advanced markets due to increasing mobile and internet penetration.
- The key cost-saving opportunities in the PR market are through digital PR, direct engagement with third-party vendors, agency consolidation, hourly rate negotiation payment, and term extension.
- Buyers can look at bundling all services and engaging with top global PR agencies, or unbundling issue management and public affairs and engaging with local agencies for these services.
- In order to develop high volume content that hits most of the trade publications, marketers need to look at AI learning, which allows machines to create and publish content at a quality similar to humans.
- Client-side budgets are expected to increase slowly during the next five years, by roughly 2–3 percent per year, mainly due to the difficulties in measuring and evaluating the results of any of the PR campaigns.
- Finding and retaining talent has been ranked as the biggest challenge for PR agencies, leading to increase in the salaries of PR personnel to retain them. Accordingly, the agency fees have been affected since the contribution of the talent to the overall agency fee is 60 percent.
The research methodology adopted for the report included:
- Experts with twenty years of domain experience
- Interaction with buyers
- Inputs from supply chain partners
As expectations increase for demonstration of return on investment for all communications spending, there has been (and will continue to be) an increased focus on measurement and evaluation, where most of the buyers are investing 5–7 percent of their PR budgets in measurement. Big spenders in the CPG, BFSI, and pharmaceutical industries are consolidating their spend and service lines to increase their negotiation power based on the volume of business.
The report also includes:
- Global Market Maturity
- Global Industry Trends
- Global Drivers and Constraints
- Regional Market Outlook
- Industry Outlook
- Porter's Five Forces Analysis: Developed and Emerged Markets
- Supply Market Outlook
- Mergers and Acquisitions
- Key Global and Regional Suppliers: Service Portfolio
- Key Supplier Profiles
- SWOT Analysis
Procurement Best Practices:
- Sourcing Models
- Sourcing Models: Comparative Analysis
- Sourcing Models: Pros and Cons
- Sourcing Strategy Based on PR Service Area
- Pricing Models: Comparative Analysis
- Pricing Model Implementation Process
- Cost Saving Opportunities
- KPI and SLA components
- Decoupling in Public Relations
End-user Industry Update:
- Financial Services
- Influencer Marketing
- Media Monitoring
Emerging Best Practices:
- Innovation in PR services
- PR Agencies and their Talent Management Capabilities
- ROI Methodologies
About Beroe Inc.:
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc., please visit: http://www.beroeinc.com
SOURCE Beroe Inc.