1.
PR 2.0
IMPACT ONBUSINESS MATTERS

2.
PUBLIC RELATIONS FIRMS NEED TO BECOME
A STRATEGIC PARTNER
TO THEIR CLIENT
THE SUMMARY

3.
03PR 2.0: IMPACT ON BUSINESS MATTERS
ForthoseofusintheIndianpublicrelationsindustrydrainedbythelong-drawn-outrecession,thereissomegoodnews.
Leading practitioners of India's communications industry believe the best days of the industry were still ahead of it
pointing towards new opportunities arising out of the need to build new competencies to address the growing complexity
of the public relations business. Is this an overtly optimistic assessment given that repeated hopes of an imminent
economicrecoverycontinuetoflatteronlytodeceive?
Onehopesitisnot.
The global economic environment continues to adversely impact most services businesses, including public relations.
The growing business complexity has shrunk the opportunity pool for consultancies with the number of engagements
goingdownconsiderably.
Ashwani Singla
MD & Chief Executive, Asia
Penn Schoen Berland
Yet, while the number of opportunities may have gone down, the nature of business has become far more strategic in
nature offering a glimpse of what is to come. Client organizations may not necessarily be slashing their spending
budgets drastically, but are instead pushing public relations consultancies to provide services that offer more long-term
bang for their buck. We are, therefore, predictably, witnessing a spurt in the demand for services with fresh new
competenciesacrossarangeofmedia,technologiesandapproachestocommunicationsengagements.
34% of representatives of client organizations said they spend over
INR 1 crore per annum on public relations services

4.
COMPLEXITYOFFERSOPPORTUNITY
It may, therefore, be pertinent to consider some very unique perspectives we drew out of our analysis of this survey's
data. The growing complexity of the public relations business is a result of, among other things, the emergence of the
Internet that is today riding a second wind with the onset of social media platforms. The complexity is further heightened
byagrowingdemandforresearch-backedcustomizedcommunicationmovingawayfromgeneralbroadcasts.
Finally, the growth of mobility and mobile devices are becoming a central medium of engagement to strengthen this
industry trend. This complexity – or the New Normal in the public relations industry – is becoming pervasive amid an era
oflongperiodsofunderperformance,stallinggrowthandhighunemploymentacrossorganizations.
KEYINSIGHTS
Within a broad acknowledgement that the PR business is far more complex than it was ever before, there exists differing
perceptions across client and consultancy organizations on whether organizations are ready to cope with this new
complexityand,therefore,theirabilitytotaptheemergingopportunities.
There is a growing tide of organizations that underscore the importance of social and digital media for their businesses
and, indeed, for their long-term strategic growth. More than 85% of representatives of client organizations, for instance,
feel digital marketing is a key enabler while driving engagements due to its ability to connect in real time, its reach and
abilitytoscaleefficientlyandwithspeed.
However, as our analysis showed, while the importance of social of representatives of client organizations said they
spend over INR 1 crore per annum on public relations services and digital media for businesses was generally being
accepted overall, about half of our survey respondents still feel that public relations consultancies were not making the
mostofthismediumtobeabletoleverageiteffectivelyenough.
Letusthinkaboutthefollowingnow:
1. 80% of clients acknowledge that public relations play a strategic role in their business, while 69% of consultancies
felttheyweretreatedasstrategicpartnersbytheirclients.
2. Clients and consultancies alike largely recognize the complexities of the New Normal. They support a research-and
insights-driven approach for effective measurement of business ROI. But fewer agencies compared with clients
favourmeasurementofimpactonbusiness.
3. A significant 2/3rd of clients demanded research to measure the effectiveness of communication pointing toward a
growingacceptancethatappliedinsightsresultinlastingimpactandbetterROI.
WAYFORWARD
Aligning with the reality of the new business complexity, public relations consultancies must focus on addressing gaps in
theirexisting approaches and offer solutionsthat demonstrate theirhunger to employ strategies that concentrate on the
resultsandnotjustontheeffort.
While consultancies will need to focus on driving business impact and book their place at the strategic head table of
clientorganisations,buyingdecisionswillbeinfluencedbythefollowingimperatives:
a. Focusingonresultsandnotjusttheeffort.
b. Developingprogramsthatwillbuildsustainedmomentum.
c. Becomingproactiveinidentifyingissues/mitigaterisks.
d. Becomingstrategicpartners.Evolvingfrombeingmerelyimplementersofpublicrelations.
e. Developingsectorordomainexpertisetoofferadvicethatisinnovativeandideasthatareactionable.
04 PR 2.0: IMPACT ON BUSINESS MATTERS

5.
THE SURVEY
05PR 2.0: IMPACT ON BUSINESS MATTERS
The online survey Penn Schoen Berland (www.psbresearch.in) conducted in partnership with IMPACT magazine makes
an attempt to understand how public relations can remain relevant and drive impactful and sustainable business
impact in an era of constant economic flux. Decision makers and senior communications practitioners at leading Client
Organisations and Public Relations Consultancies were interviewed to assess expectations, preparedness and delivery
ofpublicrelationsservices.
METHODOLOGY
89 senior communication practitioners were polled across the country's major metropolitan areas, including Delhi,
Mumbai, Bangalore, Chennai, Kolkata and Hyderabad in the month of May 2013. Chief executives and heads of the
corporate communications function on the client side accounted for 56% of the sample; while country heads, account
heads and senior managers at public relations consultancies comprised the remaining 44%. The survey places
consultanciesintothreecategories:FullService(64%);Specialized(24%);andRegional(10%).
56%
Chief Executive,
Head of Marketing,
Head of Communications
across Diversified, BFSI,
Technology, Healthcare,
FMCG, Retail.
48% have a dedicated
internal Public Relations team.
44% have a small
internal Public Relations team,
outsourcing most activities.
CLIENT
ORGANISATIONS
44%
PUBLIC RELATIONS
CONSULTANCIES
64% are from full service
organizations.
24% from specialized
service organizations.
10% from regional
organizations.
Country Head, Account Head,
Senior Manager in consultancies.
69% of which are Independent
(Indian Owned).
Whom did we ask?
Online survey in the month of May across top metros in India.
Amongst key decision makers across Client Organisations & Public Relations Consultancies.
PSB used its proprietary research and analytical frameworks to draw insights.

6.
AN ERA OF GROWTH
India's public relations and communications industry appears to be heading towards an era of growth even as it
negotiates the turbulence of a relentless recession afflicting the global economy. More than 60% respondents of the
survey said they expect that the best days of the industry are still ahead of it, while 34% of Client Organisations said they
spendoverINR1croreperannumonpublicrelationsservices.
While this augurs well for the industry, an overwhelming majority of respondents, at over 90%, felt the public relations
industrylandscapeisfarmorecomplextoday,pointingtowardnew opportunityforgrowth.
It is here that public relations consultancies and client organizations must build lasting strategic partnerships to exploit
thisopportunity.
The majority of respondents, while acknowledging the growing complexity of the public relations business, said this was
a result of the emergence of the Internet and digital media that was riding a second wind with the onset of social media
platforms.
Considerthenumbersbelow thatpointtowardthegrowingimpactofthedigitalmediumaswellastheriseofnew media.
 One, 2/3rd of respondents acknowledge the growing importance of social/ digital media for their businesses and,
indeed,forlong-termstrategicgrowth
 Two, over 85% of clients said digital marketing is a key enabler while driving engagements given its ability to connect
inrealtime,scaleefficientlyandwithspeed
 Three, clients are a divided house when evaluating consultancies on their ability to understand the scope of new
mediumsofengagement
READY, NOTREADY
Given this emerging environment, we asked respondents whether public relations consultancies were ready to face this
new business complexity. Predictably, there were differing views between client organizations and public relations
consultancies on this very parameter, a crucial first step for consultancies beginning their journey to be a
strategicpartner.
Differing Views: Readiness Quotient of Consultancies
Are
You
Ready?
Absolutely Ready
Somewhat Ready
Ready but need some improvements
Not at all Ready
Clients
Consultancies
Client’s view of Consultancies’ Readiness
8%
18%
0%
Clients
Consultancies
Client’s view of Consultancies’ Readiness
66%
54%
32%
Clients
Consultancies
Client’s view of Consultancies’ Readiness
24%
23%
60%
Clients
Consultancies
Client’s view of Consultancies’ Readiness
2%
5%
8%
The divergence in perceptions is predictable given the different business priorities and environments of clients and
consultancies. However, the survey draws attention to varied opportunity areas for consultancies to address some of the
keychallengesthathavebeenhighlighted.
06 PR 2.0: IMPACT ON BUSINESS MATTERS

7.
07PR 2.0: IMPACT ON BUSINESS MATTERS
Capability Assessment: Consultancies have much to do
Consultancies’ self image Clients’ view of Consultancies
74%
52%
82%
46%
69%
42%
79%
52%
Have a formal process of
measuring impact or effectiveness
of the communications programs
Recommendations and ideas
are supported with relevant
research data
Provide research data to
support their ideas or
initiatives:
Capable of leveraging
Digital media effectively
96% see digital media as a friend and enabler in driving higher impact.
Clearly, driving business impact and being able to measure that effectively, as we stated earlier, is emerging as a key
parameter of a strategic partnership, though there is a strange dichotomy in client expectationson whether the measure
ofimpactwasmoreimportantthanmediacoverage.
RESEARCH-DRIVENINSIGHTSFOR LASTINGIMPACT
As client audiences become smarter and more knowledgeable, public relations consultancies have much to do to be
able to exploit great opportunities that lie in making the right investments to manage this changing business
environment.
Driving impact as client audiences become smarter
High relevance
for Consultancies
High relevance
for Consultancies
Low relevance
for Clients
High relevance
for Clients
1) New platform of interaction like Facebook, Twitter, etc.
2) Measurement of online presence is still not well
understood or practiced
3) 24x7 news cycle
4) New mediums of communications have emerged
(tablets, smartphones, etc.)
5) From general broadcast to customized communication
1) Parameters for measuring success have changed
from media COVERAGE to IMPACT on business
2) Smarter and knowledgeable audience groups
3) Problems and issues are no longer local
1) Lack of audience loyalty due to a plethora of choices
2) Emergence of citizen journalism
3) Advent of technology – cloud computing, cloud
applications, etc.
1) Media coverage continues to be
most important measure
Disconnect

8.
The new complexity is offering an opportunity for public relations consultancies to build an approach that leverages
research-driven insights to build communication campaigns for specific client needs to be able to effectively measure its
impact on their business in a sustained manner. Greater customisation is really the key and will differentiate the
winnersfromthelosers.
Making the right investments in the face of change
Consultancies’ initiatives to overcome challenges Clients’ initiatives to overcome challenges
51%
60%
Collaborated with
agencies that offer
end-to-end services
Invested in
technology /
specialized tools
46%
30%
67%
66%
59% 60%
23%
28%
Added expertise for
specialized media
(social media, internet, etc.)
Upgraded existing
skills of my team
Increased team size
Fewer consultancies compared with clients favour measurement of impact on business. However both clients and
consultancies largely recognize the opportunity that an empirical, research-and insights-driven approach offers,
especiallygivenitsabilitytomakethemeasurementofimpactonbusinessROImoreeffective.
Consultancies need to improve on perceptions of delivery
Clients view of
Consultancies’
Understanding
Consultancies’
Self view of
Understanding
Client’s view of
Consultancies’
Delivery
Consultancies’
Self View of
Delivery
New platform of interaction
New mediums of communications
24x7 news cycle
From general broadcast to
customized communication
Problems and issues are no longer local
Parameters for measuring success have
changed from media COVERAGE to
IMPACT on business
Measurement of online presence is still
not well understood or practiced
Smarter and knowledgeable audience groups
25 35 45 55 65 75 85 95
It has been some time now that client organizations have been ready to pay a premium for advice based on empirical
evidence or for insights-based campaigns. In our last report, we spoke about the need for India's public relations
industry to embrace empirical public relations to demonstrate how integrated stakeholder campaigns can move the
needlebyapplyingresearch-basedactionableinsightsateachphaseofacampaign.
08 PR 2.0: IMPACT ON BUSINESS MATTERS

9.
09PR 2.0: IMPACT ON BUSINESS MATTERS
Greater Customisation: Focus on research based insights to drive impact
Customised research is a potential way to measure effectiveness
69%
46%
69%
54% 55%
62% 62%
50%
Internet or
online activity
Direct feedback Customized
survey/research
Media coverage
(column-centimetres space)
Consultancies Clients
Clients and consultancies alike are beginning to favour the empirical model steadily. The survey finds that 80% of clients
acknowledge that public relations plays a strategic role in their business, while 69% of consultancies feel it is treated as
a strategic partner by clients. Within this view, there are clearly great new opportunities for public relations
consultancies to demonstrate much stronger capabilities in areas such as media relations by expanding its
understandingoftheroleofstrategicmedia,publicadvocacyprogramsandfinallyinvestorrelations.
Opportunity: Media Relations, Public Advocacy & Investor Relations
Consultancies’ offering of services Clients' need for services
67%
94%
Media relations Digital marketing Thought leadership Public advocacy Public affairs and
government relations
Internal/Employee
communication
Corporate social
responsibility
Investor relations
64%
60%
64%
46%
41%
40%
36% 36%
64%
30%
64%
26%
21% 24%
80% Client organisations agree PR
plays strategic role in their business
69% Consultancies feel they are
treated as Strategic Partners
CSR, Internal Communication & Thought
Leadership offerings overestimate client demand

10.
10 PR 2.0: IMPACT ON BUSINESS MATTERS
STRATEGICPARTNERSHIPSTO CO-CREATE OPPORTUNITIES
Offerings woven around internal communications, thought leadership, and corporate social responsibility programs – in
spite of the fact that CSR, as we all know, is the next big thing – appear to overestimate client demand for these services
atthemoment.
In an era of citizen journalism and the explosion of digital information, companies and public relations agencies are
struggling to establish and maintain mutually-beneficial relationships. Organizations that use sophisticated public
relations tools, including the use of technology and science (analytics/measurement) strategically to co-create
opportunitieswillseparatetheboysfromthemen.
Becoming Strategic Partners: Consultancies must focus on driving impact
EXPECTATIONS
CLIENTS HAVE
OF CONSULTANCIES
TOP 4
EXPECTATIONS
CONSULTANCIES
HAVE FROM CLIENTS
TOP 4
Develop programs that
will build sustained
momentum
Develop sector or domain
expertise to deal with
specific business issues
and requirements
Come up with innovative and
actionable ideas or advice
Focus on results and
not just the effort
Realistic expectations on
delivery and timelines
Openness to using new
ideas/ technology/ tools
Consider programs that
will build sustained
momentum
See the role of agency as a
strategic partner

11.
ABOUT
PENN SCHOEN BERLAND
Penn Schoen Berland (PSB) is a 'Global Research based Strategic Communication Advisory' that brings the lessons
learnt from its campaign trails into the board room to help companies negotiate some of their toughest corporate image
& corporate affairs challenges. For over thirty years PSB has used research to leverage unique insights about public
opinion, to give our clients a competitive edge. PSB serves Fortune 100 Corporations, leading Hollywood Studios and
hashelpedelectover30PresidentsandPrimeMinistersaroundtheworld.
PSB South Asia office was established early 2011 in Gurgaon and serves a blue-chip clients comprising leading Indian
transnationals and multinational corporations operating in the Indian Sub-continent. It has also helped design winning
campaign strategies for leading candidates across several State Assembly elections. Ashwani Singla, MD & CEO, Asia
who was formerly the CEO of Genesis Burson-Marsteller (GBM) & Board Member, Burson-Marsteller, Asia Pacific leads
theoffice.
PSBisapartofY&RBrandsandWPP (NASDAQ:WPPGY).

12.
www.psbresearch.in
Penn Schoen Berland
South Asia, 603, Unitech Cyber Park, Sector 39, Gurgaon, Haryana, India
Ashwani Singla
MD & Chief Executive
asingla@ps-b.com
M: +91 98110 75843
Shefali Khanna
Director, Marketing
skhanna@ps-b.com
M: +91 97111 18615