The impact of the changing economic environment on PR

What impact will the changing economic environment have on the PR industry? Will companies be less inclined to put budget towards PR?

Historically we have seen that if our clients’ budgets are sliced, it is usually PR that feels the brunt of the impact. However, despite the current financial environment, it has actually been predicted that the industry will grow from $3 billion to $6 billion by 2010. And despite the current uncertainty over the economic landscape, PR salaries are actually on the way up – because of the high demand versus the talent shortage in this particular industry. This in itself is indicative of growth.

More and more companies are looking for counsel from PR – in particular for brand and reputation management and corporate profiling as a way to promote board members, products or services. I believe this will become more critical as companies realise the dire need to cut through a crowded marketplace in light of an economy in a state of flux.

This is just some food for thought for now. I’d be very interested to get your thoughts.

I’ll be following this space!