Tag: PR industry

  • India will be key growth engine market: Clive Armitage

    It’s been a modest start for Bite Communications that completed a year of operations inIndiarecently. Still a newbie in the trade, the agency expects to widen its strides as it prepares to take on larger challenges in the communications space. Confident of putting up a stellar show going forward, Clive Armitage, Co-founder & CEO of Bite Communications says that India will emerge one of the hottest growth engine markets for the agency given the unlimited scope it throws up for agencies.

     

    In conversation with Johnson Napier of MxMIndia, Armitage delves on his agency’s performance in the past year inIndia, highlights a few markets that would help bring growth to the agency and maps out new avenues that would put the agency on a higher pedestal in the months to come. Excerpts:

     

    It’s been a year of existence for Bite Communications in India. As you look back, how would you analyse your journey thus far?

    There are different ways in which you can measure the growth of an agency – on a financial basis, on a reputational basis or on a service basis. The most important thing that you do when you start an agency is make sure that you start it with a good foundation because it’s the foundation that will decide how your agency will grow or sustain itself in the future. When we came intoIndia, we weren’t sitting here saying that the most important thing for us is to grow very quickly and earn lots of money but what we wanted to do was come into the market and establish a strong team doing really good work. The assumption was that if we do that, it will lead to a good performance on the financial front as well. I think after a year we have done exactly that. We have a good team out here who are working with clients that have a great calibre in the industry.

     

    Are you content with the way the Indian team has gone about establishing the network in India, especially the manner in which they have attracted clients onboard ?

    What we wanted to do when we started was be relatively selective around the clients that we work with. What we don’t want to be is an agency which is just the arms and legs to a client. We want to be a strategic partner to help the client achieve their goals. All of the client engagements that we have now got, we have been fortunate enough to establish that kind of a relationship. There have been moments when we have turned the client away because they didn’t want to work with us as they weren’t willing to consider digital solutions and other such things. From that standpoint, we have been able to meet our stated objective. The other thing to be stated here is that it is a pretty simple business model: if you hire a bunch of people and you want them to be really motivated and stick around, you have to give them a chance to work around big clients. If they get to work on clients who are just doing low profile jobs the best thing to do is leave. The thing about our team here is that we allow them to do big work with our clients. Obviously, every client is different and you do get challenging clients that are demanding, and we’ve had a fair share of those, but I think the current client base is what we are happy with and are seeing them grow very well. So we have seen a great start but it is just an introductory chapter to the book; there are many more chapters to write and much more work to be done.

     

    Despite India being a relatively nascent market, how do you see it shaping up as a market of choice for Bite Communications?

    The thing is that we have around 14 offices around the world. So when we have clients elsewhere and when we refer it to newer offices we are always nervous on how that relationship is going to go. The teams have to be strong and reliable enough that whenever we come across an opportunity to expand our relationship with our clients, we have tremendous confidence that we can suggestIndiaas an option and know that the work gets done and the result is going to be superb.

     

    How do the offices in Asia Pacific and around the globe stack up against each other?

    We have our office inHong Kongthat employs around 40 people. We also have offices inBeijing,Shanghai,SingaporeandSydney. Across the region we have around 100 people andIndiais our newest and favourite child. If I look around the business on a global basis, I have to look at where the growth potential is. Personally for me, the three markets that have the biggest growth potential include North America,ChinaandIndia. North America is a fairly established market already and there is more scope for growth but inChinawhere we have about 40 people and about 8-10 inIndia, we’ve got plenty of potential for rapid growth. That’s how I look atIndiaas a market – it’s one of the engines for the next 5-10 years for the growth of the business. Engine by the following aspects: one, by the sheer headcount and revenues and two, by innovation. Historically, we have a heavy focus on technology and as marketing gradually starts to evolve I seeIndiahaving a great advantage in terms of innovation and starting to deliver on some of the products that we can further use on a global basis.

     

    While you’re ideally tagged a small agency given the staff headcount, how would you associate Bite Communications as an emerging agency in India?

    We are 250-people strong agency across the 14 offices that we have our presence in. I would define us as being a small global network. Our objective is to be in a business that has a higher headcount across the offices that we are present in. I do not believe in the model whereby you have to have a dot on the map of every city. The challenge to that is you end up losing your overall proposition if you have a network that’s very huge. For us, we have around 14-15 offices that are strong and large enough that they can serve the needs of the clients at strategic locations around the world. Probably the countries where we need to make ourselves felt isBrazilandRussiawhere we work on partnerships and are not present there yet. So the next two years or so would be about those two locations and looking at ways to get into them and also growing smaller and younger offices likeIndiavery quickly.

     

    What is the role you see digital taking up for you in India?

    We are ambitious about the future and think about digital as once-in-a-lifetime opportunity for the PR industry to get out of the PR silo and get into large and marquee budgets – that’s what we are hungry for. We feel digital will help us become a much larger and bigger agency much quicker than the others.

     

    The Indian PR market is a cluttered one with more than 2000-odd agencies fighting it out to grab the mindshare of clients. What is the future you foresee for the PR space in India?

    I think there is plenty of scope for growth for PR agencies inIndia. I think it’s a reflection of how clients have become more mature and are ultimately left thinking and have started to fuel the need for working with specialist agencies inIndia. The space has become very competitive right now and it wasn’t the case around 8-10 years ago. I think the agencies that have a clear proposition and remain differentiated will manage to win the trust of their clients. We are not afraid of competition; we welcome it. It only inspires us to be more different and creative than most.

     

    As you move forward, what is the goalpost that you’ve set for the agency?

    The goalpost for me is not financial, it is going to be based around the type of work we do – increasingly doing more and more integrated communication campaigns. We still are a traditional agency but we want to be winning more awards for our integrated work which demonstrate we can take great content from client’s point of view in the marketplace and then deliver that to a commercial benefit via a host of different channels be it traditional media or digital media. The challenge for the team here is demonstrate that you can do that for the outside market place to gain a reputation – do that and all the financial success and growth will follow.

     

  • [PR Channel] Indian PR industry – gearing up to absorb new opportunities

    By Valerie Pinto

     

    The PR industry in India has seen steady growth ever since it carved out its own niche after coming out of the shadow of advertising or its later avatar – MarComm. In today’s knowledge economy, PR has evolved in all its elements and has effectively redefined its role in communications to touch upon newer areas of specialization. Apparently, the scope and dimension of PR today is restructured across a more comprehensive consulting sphere than a mere platform for specific, one-off media deliverables.

     

    Build durable partnerships that reflect a consulting approach

    Today, PR in India is ideally positioned to scale up to the next level and redefine its domain. In a high growth economy of the size of India with myriad issues and events, the opportunities for PR surely weigh more than the threats. PR needs a more comprehensive approach that looks beyond short, cyclic deliverables and include durable partnerships that reflect a consulting approach.

     

    PR will attract bigger budgets as advertising outlays shrink

    With advertising budgets hitting the ceiling and the emphasis more on ‘bang for the buck’ rather than creative hype, PR is set to attract bigger budgets based on longer term strategies and deliverables. The need to define the boundaries of hype-centred mega budget advertising in the knowledge economy grew in relation to the high precision deliverables of PR.

     

    Hiring practices in the PR industry must reflect present-day realities

    The PR industry faces real scarcity of appropriate talent as hiring policy and practices have remained rather antiquated. Industry thought leaders must step in to correct the imbalance and offer guidance in defining the parameters through interactive platforms like conferences, seminars and workshops.

     

    New minds must enter the consulting space within PR

    A consulting approach essentially points to a partnership with emphasis on strategic longer term deliverables. This requires fresh thinking and a broader perspective of what comprises the redefined domain for PR in a fast growing economy.

     

    Adopt a business consulting model to excel and expand current services

    The existing range of services, that the bulk of the PR industry offers, must increase manifold in order to adopt a business consulting approach which is based on the principles of a win-win partnership. Rather than one-off solutions, PR firms should offer a range of services covering not just “prevention” over “cure” for crisis situations but also image management and pre-emptive communication to achieve strategic goals.

     

    Focus on both industry experience and management excellence

    The PR industry’s expansion into a larger domain will be essentially driven by a talented pool of professionals with high levels of industry experience and management excellence. It is absolutely important that the larger horizon is more than sufficiently inculcated into the new crop of PR professionals for them to gauge the challenge ahead.

     

    Showing the way

    The PR industry in India needs to redefine its vision, and actively engage clients to forge win-win partnerships covering not just deliverables but also long-term strategy. Such partnerships require engagement at different levels with the client and their market apart from achieving operational equilibrium wherein they consult the PR agency in all matters regarding communication strategy.

     

    The Indian PR industry is on the cusp of exponential growth as the mood in the economy shifts toward more transparent growth and what has often been described as a “level playing field”. In a better regulated environment, it is PR that promises to balance the delivery of communication in the fast evolving environment. The Indian PR industry is fundamentally strong and should fulfil its potential by making the most of this opportunity.

     

    Valerie Pinto is CEO – Perfect Relations.

     

  • Why the PR industry needs some PR

     

     

    By A Correspondent

     

    The PR industry in India today is facing potential growth-limiting challenges such as a dearth of home-grown talent, the fallout from recent PR scandals and a move away from traditional PR towards strategic communications.

     

    This is the thrust of the most recent executive report on the public relations industry in India from MSLGroup India’s Hanmer MSL and 20:20 MSL, both part of MSLGroup, Publicis Groupe’s flagship public relations, speciality communications and engagement group. The report, Understanding the Public Relations Industry in India: Challenges, Opportunities and 2012 Outlook, takes an in-depth view of the PR industry in India, drawing on quantitative and qualitative research to bring together a hard-hitting and frank appraisal.

     

    The report touches on these issues, as well as the widely reported misconceptions about size of the Indian PR industry, and the ramifications of this over-inflated figure on the market. A recent Associated Chambers of Commerce and Industry of India study pegged the size of the industry at a “wildly inflated” $6 billion whilst MSLGroup’s research points to $140 million being a more true representation.

     

    Jaideep Shergill, CEO for Hanmer MSL and Member of MSLGroup India Management Board commented, “The challenges before the Indian PR industry are not that different from what other service industries have had to face in the past – a serious talent shortage, disconnections between fees and value, and measuring performance accurately. Furthermore, we must look ahead and ask ourselves how the industry should react to a worsening global economic situation. These are questions this report tackles and by bringing these tough issues to the fore, we hope that it puts the industry into perspective and kicks off a discussion on the roadmap that PR in India so desperately requires.”

     

    “The industry is at an important crossroads, and we have taken the first step in not only asking difficult questions of ourselves and the industry, but also providing potential solutions to foster a stronger and sustainable India PR market,” added Sunil Agarwal, founder of 20:20 MSL and Member of MSLGroup India Management Board.

     

    In addition to highlighting a variety of trouble spots, Understanding the Public Relations Industry in India: Challenges, Opportunities and 2012 Outlook report also identifies opportunities for PR agencies such as offering integrated strategic and speciality communications, bridging the compensation gap, ensuring performance measurement and understanding client expectations.

     

    Throughout the report, critical questions are posed to agencies and their staff, clients and their organizations, media and the industry at large which are aimed to spark debate, ideas and potential solutions that can strengthen the industry’s future. Some of these include:

     

    • A misunderstanding of the size of India’s PR industry, hiding the on the ground realities and core issues.
    • A serious Indian talent crunch, stunted by a more lucrative in-house corporate communications sector, increasing the demand-supply.
    • A lack of understanding of how PR can play a strategic role, resulting in low PR retainers – in the Rs 20-lakh ($40,000) range compared to the average advertising retainer of Rs 2 crore ($400,000).
    • A vital need for PR firms to offer integrated communications as the line between PR, advertising and digital begins to blur.
    • Speciality communications such as niche PR, engagement through social media and employer branding to be recognized as growth focus areas for PR agencies.
    • Despite the global economic turmoil, India continues to grown at 7%, presenting a unique opportunity for PR firms in terms of global and Indian MNCs.

     

    MSLGroup India has developed this report to further its and the industry’s goals for sustainable and professional development. PR professionals, clients, organisations and the industry recognise that PR in India is at a critical juncture and Public Relations Industry in India: Challenges, Opportunities and 2012 Outlook offers a transparent and robust précis to move the industry forward.

     

    (To learn more about the Public Relations Industry in India: Challenges, Opportunities and 2012 Outlook, or to read the report by MSLGroup India in full, visit asia.mslgroup.com.)

     

  • PRCAI 2011 Report Unveils ‘Talent Crunch’

    By A Correspondent

    The Public Relations Consultants Association of India (PRCAI), in their first ever report on the public relations consultancy sector, has reported a positive business outlook for the PR industry in 2011. More than half the PR industry expects an achievement of 15-20 per cent revenue growth, despite majority of respondents being conservative with their revenue forecast indicating the underlying degree of competition and uncertainty of retaining existing clients.

    The report further outlines that with economic growth becoming broad-based, tier II & tier III cities will become relevant for most PR firms in India. In fact, nearly 55 per cent of the respondents acknowledged hinterland as an important area of growth in terms of business in the selected categories of premium products.

    Mr Sharif D Rangnekar, President, PRCAI said, ”While industry is looking towards expanding horizons, PR firms in India are finding it difficult to fill vacant positions despite the recovery in job markets due to a talent mismatch and lack of requisite skill-sets. Nearly 80 per cent people believe that the Indian education system is not geared up to cater to the PR industry needs.

    Similar to other industries, the hiring mood has been positive and showed an upward trend for the Indian PR sector. In spite of the dampening global economic reports, the industry is witnessing a tremendous spurt in the recruitment drive. Nearly 30 per cent respondents had been thinking of giving salary hike in the range of 20-30 per cent.”

    Hiring is the top priority for PR industry at the moment and improving the writing skills of the PR executives is the focal point of training for most companies. Basics like meeting client’s expectation and increasing efficiency come second. Talent management has emerged as the biggest impediment towards growth in the PR industry.