Average marketing budget for PR up to 12.8%: In-house Communicators Survey Report

The PRCAI State of the Industry- In-house Communicators 2019 Report’ by Nitin Mantri, President, PRCAI and ICCO, Group CEO Avian WE

e4m by exchange4media Staff
Published: Dec 21, 2019 8:27 AM  | 3 min read
Nitin Mantri

At exchange4media IPRCCA2019, held in New Delhi on Friday, was unveiled the latest ‘The PRCAI State of the Industry- In-house Communicators 2019 Report’ by Nitin Mantri, President, PRCAI and ICCO, Group CEO Avian WE.

Mantri also shared some statistics about the global PR industry being worth Rs 16 billion and that it employs about 200,000 people across the world. APAC is amongst the top upbeat markets and as a region scores about seven out of 10 points. The growth rate of the global PR industry is 5.2% as of last year, he told the audience. According to the report, the average marketing budget allocated to PR has increased to 12.8 per cent.

The four highlights of the report were – technology; companies paying more attention to reputation and purpose; clients using PR to lead non-traditional services, and the industry operating ethically.

“Technology, reputation and focus came out top in terms of what clients want today. Also, clients are increasingly wanting to use PR firms for leading digital services. And finally ethics is coming up stronger. As we use more technology, ethics is going to become even more critically important.”

Speaking about the Indian PR industry on the consultancy side, Mantri said, “Last year, we grew at 12 per cent and we expect the same double-digit growth this year as well. I hope we do not fall since I’ve been looking at all the discussion on the economy these days. If we grow by the same rate, we would be a Rs 1,800 crore market by 2020.”

Similarly, if we look at the markets, clearly the North region is by far the largest in terms of growth but the West and North are now getting close to each other. The South is growing but will remain at about less than a quarter of the whole industry.

Speaking about in-house communication, Mantri said that the budget allocated to public relations has increased by nearly 13 per cent from 9.5 per cent, which is good news for the agency guys. “If you look at segment-wise participation, the gradual shift seen in the services are taken by the in-house teams. The services provided are really around social media, digital and analytics with 31 per cent.”

The top two trends, as per the report, were online reputation management and visual communication which is multimedia and content creation. The biggest perceived challenge is the lack of a thought or a uniform measurement system or guidelines. “So it's not about funding but about measurement criteria,” he said.

Regarding the disconnect between PR firms and in-house communicators, Mantri said: “In house, communicators says that they don’t get strategic inputs from the agency. Whereas agencies say that they don't get access to top management. We are all in the industry, all working together. And I think some of these figures give us some things in terms of how we can work best between consultancies and in-house communicators.”

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