The public relations (PR) industry in India is witnessing a transformation. The industry is making an extra effort to be viewed as a strategic partner, and clients are acknowledging its value. With this study, we wanted to give the industry a voice. We commissioned an India-wide survey of PR professionals and the media to share their views on a potentially tough year for business and the hottest trends that will define the industry. A year ago, MSLGROUP India released its first industry outlook report, highlighting such critical issues as the talent crunch, the comparatively low level of PR fees, the need for strategic and integrated communications, and the core issues hidden by the wrong perception of the industry’s size. The report sparked widespread interest and provoked much needed dialogue. Join our conversations - @msl_group, @msl_ind, @mslgroupasia

1. Public Relations
in India Inside the Industry’s Mind
and the 2013 Outlook
A report by MSLGROUP India
Part of the Publicis Groupe

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3. Table of contents
 Executive summary.................................................... 04
 What our last industry audit said................................ 06
 India PR survey: High on growth, big on change......... 10
 What to watch out for in 2013...................................... 24
 The rise and rise of digital PR..................................... 30
 What the media thinks about the industry................... 36
 The agency-client marriage..........................................42
 India’s PR landscape....................................................48

4. The public relations (PR) It is precisely this that our report Finally, the report tackles
industry in India is on the cusp of aims to do. In an industry where another prickly issue - the
a profound change. As it finds such studies are rare, relationship between agencies
itself speeding past the MSLGROUP India conducted an and their clients. This
Information Age and into the India-wide survey - and, relationship is often
Conversation Age, its scope is importantly, across the executive tempestuous, but it need not be
expanding well beyond media hierarchy - to ensure that PR so. We examine the gap
relations. Its strategic value is practitioners have their say. between expectations and
finally being acknowledged. reality on both sides of the
From growth prospects to the divide and suggest solutions.
As businesses realise that way new business is being
one-way marketing generated to the hottest new MSLGROUP India hopes that
communications have limited trends, the study covers it all. this report will launch
value and that engaging The results, as you will see, are conversations across the
stakeholders through new tools heartening as well as revealing. industry and among other
like storytelling and thought stakeholders. We want it to
leadership is the key now, PR is In addition, this report become part of the process that
finally coming of age. incorporates an equally vital leads to a unified industry
dipstick survey of the way media approach towards the
Therefore, it is important to - a key stakeholder - perceives challenges before us - from the
understand the industry's state the PR industry. Mediapersons talent crunch to the gulf
of mind, what it considers to be listed several suggestions that between value delivered and
the biggest hurdles to its would make for a healthier fees paid.
evolution, the greatest relationship with PR
opportunities and how it sees practitioners, and these are So, let's talk.
itself. It is important to give the detailed in the pages that follow.
industry a voice.

5. 10

6. What our last industry
audit said

8. n January 2012, MSLGROUP India released the 'Public The shortage - and flight - of talent remains an
Relations Industry in India: Challenges, Opportunities uncrackable code. This demand-supply gap will only widen
and 2012 Outlook' report. with time. It must be understood that it's not only about
retaining talent, it's also about finding the right people.
Among the issues it highlighted was the rapidly-growing And it's a vicious cycle - with the abysmally low retainers
gap between the perception of the industry's size and and salaries, talent will always look elsewhere.
the reality, and the problems that creates. The report
pointed out that the focus was shifting away from the Talent is a make-or-break issue for the industry, and
real challenges: PR is an underpaid industry - hence, its training could be a large part of the solution. Training
talent and infrastructure issues; the misconception that needs to be conducted across all levels (at MSLGROUP
agencies are making millions - giving clients the India, 2%-3% of total revenues are spent on training,
opportunity to think they can afford lower fees; the which includes interaction with industry experts and
overall perception problem that the industry has - it is hands-on workshops).
often thought of as a collection of spin doctors rather
than of strategic communications consultants. In the past, most industries joined hands with academic
institutions to evolve courses that covered relevant
There are other problems - too many clients view PR only subjects and produced employable professionals. It's time
in terms of media relations. While the average advertising the PR industry did the same.
retainer is Rs 2 crore (about $450,000) a year, PR retainers
are in the Rs 20-lakh (about $45,000) range. It's not all gloom and doom, though. There is a growing
realisation that PR agencies are strategic partners, not
PR is a powerful business tool, but is rarely seen as one. glorified couriers sending out press releases. Clients in
Clients' reluctance to recognise its value, the lack of a
fee-per-resource norm and under-cutting are responsible
for retainers not rising. Also, PR budgets tend to be static
and are the first to be slashed in bad times.
Understanding the Public Relations
Industry in India: Challenges,
Opportunities and 2012 Outlook
A report by MSLGROUP India, part of the Publicis Groupe
8

9. India will eventually look to the industry for strategic skills and standards, help clients provide better briefs, raise
communications, which offers an opportunity to offer the standards of measurement and source and manage
integrated solutions, especially because the line between talent better.
PR, advertising and digital is blurring. Cost-effective
communications plans - those that span advertising, PR According to the 2007 report, 'The State of the Public
and digital media - make sense to clients too. With the Relations Industry' by Paul Holmes, the growth of PR
advent of the Social Media Age, this new medium is slowly in the West has plateaued in the 9%-11% range. In
becoming part of many companies' repertoire. India, the industry is growing at least twice as fast.
The last decade has been one of unprecedented
More than anything else, it's India's economic growth that growth, consolidation and globalisation for the PR
will sustain us. The PR industry will become critical for industry in India, but few understand how this will
established Indian companies and foreign firms looking to impact communications professionals.
make inroads here.
This is a significant shift for agencies, the media and clients.
There are gaps in the industry, and yet there are Clients will need global thinkers with global mindsets.
opportunities - partnerships. It's time to think of all It's time to gear up for that challenge.
stakeholders - clients, employees, the media - as 'partners'.
The industry's success will depend on how it chooses and
manages these relationships. This is where we can raise our
PR is a powerful business tool,
but is rarely seen as one. Clients'
reluctance to recognise its value,
the lack of a fee-per-resource
norm and under-cutting are
responsible for retainers not
rising. Also, PR budgets tend to
be static and are the first to be
slashed in bad times.
More than anything else, it's
India's economic growth that
will sustain us. The PR industry
will become critical for
established Indian companies
and foreign firms looking to
make inroads here.
9

10. India PR survey:
High on growth,
big on change

12. or too long, the Indian PR industry hasn't had a
voice. While practitioners grapple with the many
challenges before it - from a fee-value mismatch
to a talent crisis - the lack of a strong industry association
and cohesion within the industry has meant that the issues
rarely get debated. As a result, the solutions - while obvious
- and a unified approach remain out of reach.
After the release of MSLGROUP India's 'Understanding the
Public Relations Industry in India: Challenges,
Opportunities and 2012 Outlook' report, the need to tap the
industry's mind was clear. There was an urgent need to
understand what the industry collectively felt about its
growth prospects, the way ahead amid the strong economic
headwinds and how it would evolve in a fast-changing
communications landscape.
MSLGROUP India commissioned the Bangalore-based
market research and analytics agency Leadcap Ventures to
carry out a survey of PR practitioners across India to identify
the challenges that concern them the most, the
opportunities that they're eyeing and the evolutionary path
they expect to walk.
The survey - conducted in September 2012 - aims to finally
launch the debate that the industry so badly needs.
MSLGROUP India hopes it will be - to paraphrase
playwright Arthur Miller - the equivalent of the industry
talking to itself.
No stopping growth
Methodology
The central theme that emerged was one of optimism -
 Sample size: 100, across three levels 51% of the respondents were bullish, asserting that the
 Senior: Owners, directors, branch heads,
industry would grow more than 20% over the next 12
managing directors (38 respondents)
months. Another 28% felt growth would clock between
 Middle: Senior managers, administrative managers
10% and 20%.
(31 respondents)
 Junior: Assistant executives, trainees, Expectations within the industry remain high despite
HR executives (31 respondents) slowing growth and global financial turmoil. It's also a sign
that the industry feels it is coming of age and that the
 Geography: Six metros
strategic value of PR is finally being recognised in a
 Mumbai (17 respondents)
landscape dominated thus far by advertising.
 Delhi (17 respondents)
 Bangalore (16 respondents)
 Chennai (17 respondents)
 Hyderabad (16 respondents)
 Kolkata (17 respondents)
 Survey included quantitative and qualitative questions
12

13. What growth do you expect for your agency over the next 12 months?
All figures in %
51
53 32 68
28 36
34
13
21 13 32 19
Total Top Level Middle Level Low Level
<10% 10%-20% >20%
It’s no surprise, that 53% were full of optimism about the next year; 43% were somewhat optimistic. The pessimists – only
4% of those surveyed – were badly outnumbered.
Are you optimistic about the next year for business?
4 All figures in %
51 6
6
53
47 55 58
43
47 39 42
21 13
Total Top Level Middle Level Low Level
Somewhat Optimistic Highly Optmistic Somewhat Pessimistic Pessimistic
The bedrock of the respondents' confidence was the fact that an overwhelming number of clients have left their PR budgets
untouched, despite the tough economic climate. While 63% of respondents said their clients' PR budgets are intact, 33%
said the budgets have in fact increased.
13

14. What have your clients done with their PR budgets?
All figures in %
33
51
27 47 26
63
62 74
53
4 11
21
Total Top 13
Level Middle Level Low Level
Reduced somewhat Cut Drastically Untouched Increased
The implication: Corporations are understanding the role of No wonder that a significant amount of new business is
PR as a brand builder and in engaging stakeholders. The days being generated from existing clients. While 61% said that
of one-way communication between stakeholder and the overall quantum of new business was 'satisfactory',
business, the industry feels, are fast receding. "PR will take on 25% said more than a fifth of new business was coming
a more mainstream role and drive a brand's perception and from existing clients. About 31% of respondents said that
marketing exercises. It is an invaluable tool in the shaping and 15%-20% of new business was coming from clients already
execution of marketing strategies. As such, PR is no longer an on their rosters, while 41% said existing clients accounted
allied function but an increasingly vital part of the marketing for 10%-15% of new business.
mix," said Suranjana Ghosh, head (marketing), CNBC TV18.
How much 61 All figures in %
new business
are you
getting? 66
61
30 57
35 26
28
8
8 13
1
3 3
Total Top Level Middle Level Low Level
Insignificant A little Satisfactory A lot
14

15. How much of your new business is from existing clients?
All figures in %
41
31
25 43 47
30 32 39
24 25 22 29
3
3 6
Total Top Level Middle Level Low Level
<10% 10%-15% 15%-20% >20%
The exuberance percolated to respondents’ expectations This is significant because allied industries, such as
about the jobs the industry would create – 59% felt that media, have seen a reduction in staff counts over the past
staff numbers would rise over the next year, bucking the 24 months. While there have been only a few drastic cuts,
overall cautious hiring trends in the Indian economy. a few media houses are struggling and austerity
Another 41% felt there would be no layoffs. measures are expected soon.
Do you expect All figures in %
staff numbers to
rise over the next 41
12 months?
53 39 29
59
47 61 71
Total Top Level Middle Level Low Level
Will Rise Remain Steady Reduce
15

16. The greatest growth, say respondents will come - As Ghosh said: "Brands are reassessing their relationship
expectedly - from digital media over the next five years, with PR agencies. From a client-vendor equation, PR now
but there's also great emphasis on integrated offerings. needs to work more as a partner/strategic advisor for
The first edition of this report had indicated that integrated brands. With a greater understanding of brands' long-term
communications were the way of the future. The report goals and current market realities, PR should be able to
said in the chapter 'From traditional PR to integrated cross this hurdle more effectively." She added that
strategic communications': agencies could look to add services such as market
intelligence, thought leadership and - critically -
"Clients in India will eventually look to their agencies for
"seamless PR strategies" (integrated offerings, in
strategic communications, not simply for media relations.
other words) "that straddle traditional as well as new
This is already happening. Companies such as Wipro ask their
media options".
agencies to help them understand how best to communicate
their messages and present them in a context that is Sanjay Tripathy, EVP and head (marketing and direct
meaningful for clients, analysts, investors and journalists. channels), HDFC Life identified internal communications -
as part of the integrated offerings bouquet - as an important
“Since the Indian PR industry is still nascent, there is an
opportunity. "The PR industry can play a significant role in
opportunity to offer integrated solutions, especially as the
internal communications. Today, every brand has
line between public relations, advertising and digital is
large-scale focus on employee branding, employee
already starting to blur.
retention, employee engagement and communications.
“As a result, many agencies have invested in creative and Employees are critical stakeholders for brands. The PR
digital arms. Cost-effective communications plans - that industry must add this to their offerings to enhance their
span advertising, PR and digital media - make sense to scope and services," he said.
clients too.”
Among the verticals to watch in 2013, respondents
The industry clearly agrees - the second highest source of identified digital media as the hottest, followed by lifestyle
growth, said the respondents, will be integrated offerings. and technology.
What will offer the greatest growth over the next five years?
2 All figures in %
15
31 2 3
16 10 20
35 19
37
52
45 52 61
Total Top Level Middle Level Low Level
Digital/Socal Integrated offerings More aggressive NBD Vanilla PR
16

17. Hottest verticals for 2013
Digital/Socal
Lifestyle
1%
3% Technology
6%
9% Media and entertainment
48%
13% FMCG
20% Healthcare
Others
Retail
Automobiles
Manufacturing
Banking, finanical
services and insurance
While these are in line with expectations, industry which would include banking and insurance, are being
experts believe that some of them will jump to the top watched closely by the industry. All these sectors are
over time. Healthcare, in particular, followed by retail - growing fast and are seeing increasing investment. In
India has recently thrown open this sector, allowing some cases, foreign majors are expected to make an
greater foreign direct investment - and financial services, entry soon.
Overcoming challenges
While the overall mood within the industry is bright, there is  Media: This was the most critical challenge, felt
great awareness of the formidable challenges that it faces. respondents across all levels. There were multiple issues
To an open-ended question on what to expect in the near on their minds - from the sweeping changes that
future, respondents listed five main challenges. traditional media is dealing with to the emerging social
media space. "We will face serious challenges if we do not
adapt to the new media culture," warned one respondent.
In traditional media, respondents felt that the rise in
the number of media houses, especially the
mushrooming TV channels, is posing a problem.
Dealing with these large numbers, and the increasing
fragmentation of the audience, is tough. Besides,
respondents pointed out, the "fight for space in
publications" is getting more intense.
The insertion of social media into the mix has changed
the communications game. Respondents felt that,
while adapting to it is crucial, it is also challenging.
 Digital competition: In keeping with the above
sentiment, PR practitioners across all levels were
17

18. certain that agencies would need to rapidly digitise and that the demand for traditional PR was falling. While
build expertise in that field. This is because several knowledge of emerging trends was important, the
clients now put digital at the centre of their industry would have to find a balance - pointing again
communications strategy. to how critical adaptability is.
While it offers the biggest growth area, it is also a huge A few in the junior ranks felt that whatever the changes,
change from the way PR works today. "[Adapting to] traditional PR would not die out. It would, they said,
digital [communications] products will pose the biggest
continue to be an important part of the burgeoning
challenge," said a respondent.
communications bouquet.
 Technology: The challenge of technology is the
 Perception of the PR industry: This was another
challenge of the unknown. Just as social media crept
concern raised by the first edition of this report in
up on them and suddenly became all pervasive, PR
January 2012. Too many people, it pointed out, thought
practitioners were unsure of what new breakthrough
of the industry as one large spin doctor or 'fixer'. Not
technologies would emerge in the future and the
impact that would have on the industry. Adaptability, many understood its strategic value. As one
they said, would become critical to survival. Equally respondent said: "Our industry is not very popular."
important was the readiness for an "uncommon Respondents - mainly senior level PR practitioners - felt
change" in communications technology. "Technology is that the problem is two-fold. First, it's about creating
our concern as people like new things, new upgrades to awareness about the industry in the minds of potential
every technology," said a respondent. clients. Second, there is a lack of understanding within the
 Innovation: The next stage in the evolution of PR industry itself of market trends.
would revolve around innovation, most respondents As a solution, many felt that agencies should focus on
agreed. Terms like "new avenues", "new-era products", branding within the industry, as well as on quality. Other
"new trends" and "ideas" were used regularly. areas to concentrate on included innovation and training.
It was generally unclear to most, however, what it  Other challenges: Among the other pressing
means in practice. They are under pressure, said many challenges, talent topped the priority list - especially
respondents, to come up with "the next big thing" but among industry leaders - followed by the often
there is a dearth of creative minds that can come up tempestuous agency-client relationship. Both these
with such path-breaking ideas. This concern was mainly issues deserve great attention and are addressed
expressed at the middle and junior levels. A fresh separately later in the report.
approach to PR, they felt, could become a
make-or-break issue. While increasing competition was a concern too, many
believed that it was necessary and helped improve
Many respondents, especially industry seniors, said service quality.
Top-of-mind issues
The talent crunch
The first edition of the PR report had highlighted the talent years. If salary costs become prohibitive, PR businesses
shortage that the PR industry is facing. The report said: will suffer.”
“If you're part of the PR industry, you'll know how acute the This was underscored by the respondents. What was
talent shortage is. As firms scramble for competent thought-provoking was how they ranked potential solutions
people, salaries get inflated. With fees already so low, to the problem.
profitability is affected.
“This demand-supply gap can only widen over the next few
18

19. How should the industry deal with The education system is not geared to the industry's needs
- this was highlighted in the first edition of this report too,
the talent crunch?
and repeated by the survey's respondents - and it's time
PR agencies collaborated with training institutes to evolve
ATTRIBUTE WEIGHT* RANK a curriculum that makes their students employable.
Several other industries in India - such as information
Stringent selection process 3.2 1 technology - have collaborated with academia in the past
and there is no reason the PR industry can't do the same.
Invest in training 2.6 2
Offer fast-track growth 2.3 3 Recommendations
 The industry should standardise salary ranges.
Offer higher salaries 1.9 4
Incentives, such as stock options, need to be worked
* Average of the ranks into compensation packages.
 Employee growth is a priority – as indicated in the
It was revealing that raising salaries ranked lowest as a survey – and it must be planned and communicated
potential solution, while a structured, stringent selection early to them.
process ranked first. Planned, consistent investment in
 Mentoring is conspicuous by its absence. It is up to
training ranked second.
agency heads to ensure that talented people have a
It was obvious that money is not the main motivator. go-to person within the firm. These mentors can help
CNBC TV18's Ghosh pointed out: "By spearheading thought starters find their feet and share knowledge that would
leadership initiatives, PR can create opportunities for otherwise take months or years to acquire.
attracting a more involved cadre of professionals. An  Training must be implemented at all levels. Seniors
attitudinal change - both, on the parts of agencies and within the firm can be tapped for this, and external
professionals, where PR goes beyond getting coverage but trainers hired when needed.
works as an involved stakeholder for their clients - will help."
19

20. The way ahead
When asked how they were dealing with a shift towards creation on campus. Even the juniormost in the industry
knowledge-based communication, 41% said the focus was need to know how business is done and what impacts it and
on thought leadership to raise awareness and skills. its reputation. Industry needs to diffuse its focus from
means (press conferences, press releases) and focus on
Many corporations across the world are recognising the
how business objectives can be met through
need to build their brand structure on a foundation of
communications. Not all industries require
knowledge. Brands now know that they need to build
standardised services.”
relationships with their stakeholders to remain relevant and
matter to the communities in which they operate. They also Relevant, shareable thought leadership through tools such
recognise that they no longer have a captive audience as whitepapers, videos and blogs can help brands become
through traditional media. the trusted authorities in their industries and increase
conversion rates.
Aman Abbas, head of corporate communications, KPMG
India, said: “PR practitioners should understand business, This is an opportunity for PR, felt the respondents. Support
not just communications. Unfortunately, the orientation of for thought leadership was the highest among senior staff
PR students is only towards transactional campaign (43%) and the juniors (48%).
All figures in %
How are you dealing
with the shift towards 16
knowledge-based PR? 20
8 10
31
23 19
23
30 19
19
19
Investing in thought leadership to raise awareness and skills
41 43 31 48
Hiring staff with competencies relevant to the change
Indifferent
Investing in training
Total Top Level Middle Level Low Level
Bridging the fees-value gulf
While the average annual advertising retainer is Rs 2 crore Siddhartha Mukherjee, Business Head Eikona had a
($4,00,000), PR retainers hover around Rs 20 lakh different perspective: “The PR industry needs a single
($40,000). Industry veterans said in the first edition of this [measurement] currency to create oneness and initiate
report that many clients are reluctant to recognise the value healthy dialogues between corporations and their
of PR. Also, there's no fee-per-resource norm and consultancies. With this, wealth will automatically follow.
under-cutting is rampant, which is partly responsible for Clients/Investors look for effective ideas and their
retainers not rising. scientific measurability.
While pointing out that the industry is multi-layered, with “Let us no longer boast of high annual industry growth
services offered at different prices, Sudha Singh, former rates on small denominators. Here is where PR agencies
executive director (operations) at Vaishnavi Corporate have paved the way. Starting with transforming into
Communications, had pointed out: "Most Indian agencies consultancies, their thoughts and initiatives have changed
short-sell their services for fear of not getting business. the PR matrix. Today, this tool, which was largely confined
There is an opportunity for us to review this as an industry." to the PRO/corporate communications desk, is showing its
20

21. usefulness to the internal clients of this same desk -  Given the shift in communications technology, some
marketing, financial and HR... and the CEO’s office.” suggested that digital become the primary mode of
brand outreach.
Recommendations  While some seniors said that budgets are entirely in
 Respondents said that the focus should be on clients' hands and little can be done about it, others felt
improving quality of work and innovation, which in turn that a premium could be charged for the adoption of
would help them push for fees that match value. new communications formats and services.
Performance measurement
There is a growing feeling within the PR industry that the Putting outcomes before output was an idea that found the
benchmarks are all wrong. While goal-setting and greatest support among mid-level and junior executives.
measurement are part and parcel of every service, Given that it is they who will eventually graduate to the
measurement should include new media, rise in awareness senior ranks and be in a position to effect the required
among stakeholders and impact on business results. change, it is only a matter of time before new performance
measurement systems are introduced and become
The survey showed a marked preference for measurement
the norm.
based on outcomes (impact on business results) over
output (number of media mentions, press releases sent As HDFC Life's Tripathy said: "The industry must work
out). While 63% preferred benchmarks based on together to establish a standard measurement matrix.
outcomes, 20% felt the final word should be left to the EAV [equivalent of advertising value] is obsolete in the
clients' way of measuring performance. Only 17% felt that West; reach is the key now. Without standardisation,
volume of media coverage is the best option. results remain fragmented and return on investment
remains unknown."
How do you improve Recommendations
PR performance measurement?
 Measure outcomes, not outputs: These include shifts
in awareness, purchase behaviour, corporate
All figures in %
reputation, employee engagement and investment
63 decisions. Quantitative approaches such as
benchmark-and-tracking surveys can be supplemented
with qualitative methods to spot changes in purchase
75
68 behaviour and preferences.
 Media measurement: Measuring the number of
49
20 mentions is generally meaningless. Media
17 27 26
24 22 measurement should include audience impressions,
9 16 10 quality of the media coverage (tone, credibility,
relevance of medium).
 Social media: Right now, it's mostly about how many
Total Top Level Middle Level Low Level
likes have been achieved on Facebook or the number
of Twitter followers. But it's not about the numbers; it's
Measuring outcomes, not output
Clients should have final word on criteria
about managing reputations. The emphasis should be
Measuring spread of media coverage works just fine on responding quickly, listening and engaging.
21

22. Bubbling under
Digital technology has made the world a smaller place and
brand monologue is giving way to engagement (multiple
conversations on multiple platforms). Buying behaviour is
changing rapidly, as is the way stakeholders - consumers,
suppliers, employees, governments, communities -
perceive brands.
Amid all this, there are five perceptible trends emerging in
the practice of PR:
 Visual communication: Respondents believe that,
since 65% of their audiences are 'visual listeners', this
trend is the most critical. Good graphic representations
are critical to serve clients better, they felt in response
to an open-ended question. This is why a rising number
of communications include infographics, attractive
visuals or visual depictions of critical information.
 Storytelling: There was a virtual consensus that
brands that tell their stories the best will be the ones
that stand out. Storytelling is only now being used as a
craft in marketing communications with organisations
as diverse as Coca-Cola and NASA adopting it to
convey their key messages to their stakeholders.
Respondents agreed that it is a critical element of PR,
from client engagement to ensuring the desired
outcomes. A key insight was that respondents felt the
use of storytelling increases audience trust, eventually
creating loyal customers.
 Proactive monitoring: The discussions focused mainly
on social media - from evaluating conversations to
identifying the issues that matter to a brand's audience.
Not surprisingly, it was junior PR executives who
strongly felt that this was important to the industry.
 Adaptability: Recognising change as a constant,
respondents felt that adapting to new tools and trends
is not an option but an imperative. They felt that the
ability and agility to adapt to an ever-changing
environment would spell the difference between
survival and obsolescence for agencies.
 Quantification: Tying it with their thoughts on
performance measurement, respondents repeated that
the industry should focus on measuring outcomes, not
outputs. In the case of visual communication, for
instance, many said, measuring audience
comprehension should be the norm.
22

23. 23

24. What to watch
out for in 2013

26. t's been a difficult year. The economic slowdown, In 2013, more organisations will recognise the need
amplified by policy paralysis in the government and to marry marketing with reputation management.
a volatile political situation, hit the PR industry hard. Engagement has always been a key component of
Communications budgets were slashed and many the PR business, but in the Conversation Age of
corporations preferred to work on 'project' basis rather today communicators are moving from monologue
than on retainers. Given the tough business environment, to dialogue.
those that persisted with retainers demanded more bang The cornerstone of this engagement is content. Not
for the buck. just creating it, but also managing it. Content that
While the PR industry managed to keep its head well above informs and encourages conversations is relevant to
the water, 2012 was a tough year. the target audience. It is shareable and it strengthens
customer loyalty. Corporations as well as PR firms are
Will 2013 be better? Given the government's renewed
now employing teams to specifically produce
vigour for economic reform and India's inherent economic
high-quality content.
restraints, the outlook remains optimistic despite the
uncertainty created by political turmoil. Shashank Sinha, general manager and head (marketing of
direct sales), Eureka Forbes, said: "Communication is the
Digital communications - dominated by social media -
fine art of 'storytelling'. Telling a good story first involves
constitute the biggest opportunity for 2013 and we've
understanding the person listening to it - their interests,
dedicated a separate chapter to it later in this report.
worries and their lives. Listening is the first step to good
While the survey earlier in the report identified major trends, storytelling. Unfortunately, most of us seem to have no
there are others that MSLGROUP India has identified. time to listen. This is the key for the PR industry."
Among those that you can't miss is the evolution of content
as a branding and communications tool. Industry experts
believe that nothing sells better than a good story. However, Engagement has always
they caution, it's not just about telling a story but about
engaging your consumer. The key, they say, is to make your
been a key component of
story his/her own story. the PR business, but in
Storytelling is also important as the realisation grows that the Conversation Age of
it's not enough to have profit as your sole objective.
today communicators are
Businesses need a greater purpose. The community
expects that if you're making millions, you need to make moving from monologue
millions happy as well. Consumers today relate to brands to dialogue.
that show heart. Social responsibility has moved from mere
support for projects to working towards social sustainability.
It is the digital revolution that has changed the way
Brand journalism companies are communicating. Consumers today
For PR professionals, 2012 marked a widening of the 'experience' products and services online before buying
scope of work and a deepening of the partnership with them. From researching a product's specifications to
business leaders, decision makers and subject experts to looking for reviews, consumers rely on the online space.
benefit from the new wave of communications. It gives them a sense of empowerment as they now have
26

27. trends, PR needs to
always be several steps
a forum to share ahead and demonstrate thought
their experiences and at leadership and innovative solutions that
will help differentiate their clients' marketing
the same time become influencers
efforts in a crowded space."
for a brand. PR firms are producing a variety
of content, from social media campaigns to white papers Consumer marketing and corporate reputation building
will no longer be mutually exclusive as consumers have
and online games, to shape this consumer experience.
greater access to information about the companies behind
Earned media is now making way for owned media,
the products they buy.
enabling companies to take control of their brand story
rather than relying on traditional media. Globally, we have already seen several brands, such as
Volkswagen, McDonald's, Coca-Cola and Pepsi - as well as
CNBC TV18's Ghosh said: "A PR agency mirrors the
non-corporate 'brands' such as NASA - using engaging
personality of the brand it represents and is a content tailored to their purposes to reach out to stakeholders.
responsible brand custodian. The need for the agency to In India, this is nascent, though automobile-to-software
exhibit immense agility and alertness in today's dynamic conglomerate Mahindra & Mahindra and the Tata Group
times is critical. As disseminators of information and have taken an early lead in this.
27

28. Businesses with purpose  Trust deficit: People have access to more information
than ever before and there is a lack of organisational
trust. In fact, trust in all organisations, including
corporations and governments, is at an all-time low.
Most organisations realise that corporate reputation
and consumer activation are interlinked as consumers
become critical of communications campaigns that are
not rooted in authentic, long-term commitment.
 People power: People have new sources of power and
many believe that only they can come up with
innovative solutions to our most pressing problems,
not governments or corporations. Building and
communicating purpose-led business strategies must
put people and co-creation at the centre.
 Quest for meaning: People are searching for
meaningful connections with communities and
organisations around a shared purpose and expect
organisations to enable such connections.
Carol Cone, global practice chair of Edelman Purpose, told Organisations need to inspire, organise and energise
the Holmes Report that 'purpose', which she defines as all stakeholders to collaboratively work towards their
"an organisation's values in action, manifest through a shared purpose.
variety of actions ranging from materials sourcing, supply In the Information Age, a product doesn't always speak for
chain partners, CSR reporting, ethics and governance", will itself. The greater a company's transparency, the more
be increasingly important in 2012, with companies focused connected its customers feel. It is this connection that
on how purpose can be "strategically integrated and makes consumers believe in a brand.
operationalised" throughout their organisations. This is
Liz Kaplow, president of New York's Kaplow Communications,
expected to take on a much larger scale in 2013.
said in the Holmes Report: "The modern consumer wants
MSLGROUP's PurPle is one such initiative. The group to know the brand behind the product and the company
believes that the meaning of being a good corporate behind the brand - and they have the resources to find out.
citizen has changed from Green (environment) to Blue This means that companies now have to ask themselves
(sustainability) to PurPle (purpose + people). 'who are we and what do we stand for?' Naturally, this has
Tomorrow's successful PurPle brands will be the ones that made authentic CSR an integral part of a company's
work collaboratively with communities, governments, forward planning and initiatives.
customers and organisations to co-create solutions to the "Authentic CSR means it is integrated into the company's
world's toughest problems. Moving from corporate social corporate DNA, so that it is evident in everything the
responsibility (CSR) to collaborative social innovation will company does. This includes marketing and social media,
drive more rapid and meaningful change in society and in CEO thought leadership, employee relations, and more.
business, because with collaboration and co-creation comes Authentic CSR is not about whitewashing a company's
shared value and a mutually beneficial shared purpose. image. It's about supporting humanity, being passionate
The intersection of three shifts in the business about a cause, and connecting emotionally with consumers
environment has made it imperative for organisations to who at the end of the day want to know that companies
bring purpose and people together: care about the world and the people in it."
28

29. Healthcare communication offers a great opportunity to help
improve medical treatment/therapeutic adherence.
Healthcare is expanding swiftly in terms of revenue and
Twitter, in particular, can play a role in the dialogue
employment in India. According to ‘Healthcare in India –
between doctors and patients as it represents a tool for
Emerging Market Report 2007’, authored by
faster connections.
PriceWaterhouse Coopers, “during the 1990s, Indian
healthcare grew at a compounded annual rate of 16%. Today,  Most managers also viewed blogs as important in
the value of the sector is more than $34 billion. This healthcare communications, potentially impacting how
translates to $34 per capita, or roughly 6% of GDP. By 2012, influential doctors and key opinion leaders are on the web.
India’s healthcare sector is projected to grow to nearly $40 A corporate communication head (name withheld on request)
billion. The private sector accounts for more than 80% of observed: “Specific to healthcare, there will be more pressure
total healthcare spending in India.” because of changes in the regulations that govern the sector.
Globally, life expectancy is on the rise and with growing Communication will be scrutinised even more and it will be a
awareness about healthier lifestyles, healthcare products greater challenge to drive the PR agenda using traditional
are striking gold. It helps that healthcare is a priority for media. Building credibility will be tougher than ever.”
the government If high-level appointments are any indicator, the healthcare
For PR companies, there lies a great opportunity to partner opportunity is clearly evident at a global level too. Recently,
with healthcare firms – as well as allied verticals, such as Shellie Winkler was named as MSLGROUP’s North America
diagnostics and pharmaceuticals – to bring about a lifestyle practice director for health and corporate practices, while
change in customers. Amanda Sefton was named global healthcare practice
director at Ketchum. Meanwhile, US-based Finn Partners
Pascal Beucler, senior vice-president and chief strategy
launched Finn Partners Health, a dedicated national practice
officer, MSLGROUP, wrote: “Firms in the healthcare sector at
led by Miriam Weber Miller, a 20-year veteran of healthcare
large need to not only rediscover their social purpose, but to
marketing and communications.
also put it at the core of their businesses, and to consider it
when engaging with all stakeholders.” It won’t be long before high-level appointments are made in
India too to lead the healthcare practice.
MSLGROUP recently conducted the survey ‘You Share, We
Care!’ that outlined the views of 70 managers across Europe.
The importance of digital communications came out strongly
in the survey. Managers were aware of its impact on their
industry, and believed that companies needed to become
storytellers – creating contexts to explain to people what
they do, and to highlight the company’s social values. These
managers want to become protagonists in the debate about
health. The findings showed:
 Nearly two-thirds of the managers interviewed thought
that social media offered an opportunity.
 Most managers believed that the web will dominate
healthcare conversations in the future.
 Patients are key stakeholders in the healthcare
ecosystem, thanks to the digital revolution.
 In this vein, 61 managers out of 70 thought that digital
29

30. The rise and rise
of digital PR

32. imply put, digital PR is the use of the internet to The recent 'Rise of India's Digital Consumer' study by
promote campaigns and to share information. comScore found that India is the fastest growing online
However, it's not as simple as it sounds. market and that its explosive online growth will continue,
as most online categories have below-average penetration
Increasingly, small and big businesses are embracing the
compared to global averages.
digital space as a strong marketing tool. The success of a
company depends on the network of people it reaches out The internet has empowered people by giving them an
to, not only in terms of numbers but also the right engaging platform to express their opinions, share their
messaging. It is extremely important to cast that net wide; likes and dislikes and post their reviews. These opinions can
the higher the number of people that know about your both, draw traffic to your website or digress it. This makes
products and services, the higher the probability of you potential advertisers out of visitors to your site.
being talked about in the social space.
Experts suggest that consumer behaviour today is
"With the advent of social and digital media, every brand influenced by the digital space and understanding it
has the ability to publish its own story and every consumer well will help in devising the right strategies to maximise
and influencer has the opportunity to respond," Kaplow, of the opportunity.
Kaplow Communications, said in the Holmes Report. This The comScore study pointed out that 75% of the Indian
presents "an even more exciting opportunity to use social audience is below the age of 35 years, making it one of the
and digital channels to get to know your audiences better, world's youngest online populations.
to listen to what they are saying and what they want, and
deliver even better service".
Unique visitors growth comparison
15+ age, home and work users
Unique visitors (in millions)
July 2011 July 2012
5% 41%
20%
6%
48.9 52 49.1 59 322 336 44.5 62.6
Brazil Russia China India
* Source: ‘Rise of India’s Digital Consumer’ study by comScore
32

33. Demographic distribution - youth driving growth
1.3 55+ yrs 1.8
2.4 45-54 yrs 3.6
35-44 yrs
6.5 9.7
75%
{
(male+female)
15.3
13.7
25-34 yrs
15-24 yrs
23.7
21.9
}
Demographic distribution of UVs in %
* Source: ‘Rise of India’s Digital Consumer’ study by comScore. UV: Unique visitors
For those in the communication business, therefore, the its use. At each stage, consumers are relying on social
dynamics of delivering a message have changed. media to enhance their experience. Product endorsements
Marketers have to do away with 'monologue' as the digital no longer bear the same significance - it's other
media has created the space for a 'multilogue' where consumers' views that seal the deal.
there is conversation happening all around us. It is these
HDFC Life's Tripathy pointed out: "This means acquiring
conversations that are shaping brands.
more relevant skill sets, more learnings, and more
Consumers are no longer buying products, but the creativity and innovation. More customised, value-driven
experience. This experience begins at the consideration PR campaigns in the digital space would be the key
stage, continues to the buying of the product and finally focus in 2013."
Change in the PR practitioner
All this has significant implications for the PR practitioner. stage, the PR practitioner will need to get involved in
The digital space is an addition to the communications the business challenge before the client. He/she will
armoury. The new role broadly involves: need to truly understand the array of tools at his/her
 Advising: "We believe the best course of action is..." disposal. There is a critical need to involve
 Counselling and deriving meaning: "We believe the consumers, motivate and involve them and seek their
best course of action is... and here's why." At this feedback to make them feel empowered.
33

34. Measuring effectiveness
All online activities need to be understood in terms of their "I foresee more and more activities around the digital
return on investment, that is, measurable results are the key. space," said HDFC Life's Tripathy. "With shrinking marketing
While it is possible to measure web traffic, marketers are budgets across industries, companies would remain
sceptical about the value of online PR. steadfast on value-added, cost-effective mediums for
'engagement and connection' with their customers and
Herein lies a big opportunity. PR professionals need to
other key stakeholders. The digital boom cannot be ignored
impress upon clients that embracing digital PR would be an
by any brand."
additional resource that strengthens the objectives of
traditional PR. Industry observers believe that digital PR is no Among the key values that companies will need to
longer a new strategy but part of the regular hygiene factors. emphasise online are: transparency (the greater the scrutiny
you allow, the more trusted you are), dialogue (one-way
PR companies can use multiple online forums like blogs,
communication is in steep decline) and engagement (invite
Facebook and Twitter to engage and sustain public interest.
consumers to be 'part of the brand').
Podcasts, publishing information online, and tailored online
media campaigning are also fast gaining popularity. All
these tools can be tangibly measured.
A Holmes Report article summed this up: "Today, the brand
is no longer determined by what the company says about
itself; it's determined by all the things that are said about
the company by others, in the real world (over garden
fences, in hair salons, the supermarket checkout line, over
drinks and dinners) and in digital and social media."
How to optimise social media in PR
 Tell a story: Audiences need to identify with a piece of from related industries who are more active online.
information. People are naturally drawn to experiences Facebook, Twitter and Linkedin are increasingly being
that they can relate to. Ensure that your data has statistics, used by individuals and corporations to connect with a
visuals, testimonials that lend credence to your pitch. wider network. Through the right networking, you can
influence a media mention.
 Be a good listener: A digital platform leaves enough
room for scrutiny, so be open to all kinds of feedback.  Build brand loyalty: Engage your audience by creating
Social media is a two-way street; people will expect content that is not only informative but which holds its
your response to their communication. A well-initiated interest. Curate the content in a manner that makes
conversation often inspires participation and a your audience champion your cause. Ensure that you
have the audience captive on its first visit; you may not
well-moderated one can help your purpose.
get a second chance.
 Be earnest: Be consistent with your messaging and
 Create a social media newsroom: A robust online
always share accurate information. With the great
presence makes it easier for journalists to gather
volumes of information at their fingertips, your
information that can beef up their stories. The right mix
audience will always cross-check the authenticity of
of interactive elements, videos and photos provides a
what you claim. Any discrepancies will deal a blow to
360-degree view of your organisation. It also gives them
your credibility.
a chance to connect with other bloggers/visitors to
 Reach out to social media influencers: Your network verify information. Make this your central resource for
must have bloggers, influencers, journalists and writers information. As a PR professional, it is vital to stay
34

35. abreast of the evolution of news consumption. Digital digital woven in from Step 1, PR also needs to reflect the
presence is definitely a defining change. same technical dexterity and immediacy. In this era of
instant feedback, PR is a vital ally to manage the responses
Ghosh, of CNBC TV18, said: "The digital medium is no
a brand evokes on its social media or online platforms.
longer a retrospective or force-fitted part of the overall
Hence, PR needs to leverage the viral ability of digital and
brand marketing strategy. It is an integral part of the
amplify a brand's message effectively."
marketing mix. Akin to marketing strategies which now have
Digital media trends
High-growth categories
 Unprecedented growth
in travel, search, social
YoY Growth % July 2012 Reach %
networking and news,
surpassing worldwide
Games 60 41 averages
News 54  Growth to continue in
80.3
retail, games and health,
Search as they are below
43 91.5
worldwide averages
Retail
43 59.9
 The key drivers are
Heatlh content and accessibility
43 21.1
 The coupons category
Social
networking 43 95.5 has shrunk by 38% as
players have moved to
Travel 41 44
allied verticals
* Source: 'Rise of India's Digital Consumer' study by comScore. Graph based on July 2011 and Jul 2012 data for 15+ age, home and work users
Online video soars
 Online video viewers in
India have grown by over
Video Viewers (in millions) 37.3%
Min per viewer Videos viewed (in billion)
 The engagement has
459 reached 3.4 billion
455
videos every month
433
373  52% of the videos
belong to the
entertainment category
 YouTube’s top channels
are Bollywood-related
32.4 34.8 42.3 44.5 1.9 3.4
 Video advertising has
Jun 2011 Oct 2011 Mar 2012 Jun 2012 Jun 2011 Jun 2012 grown proportionally
with growing inventory
* Source: ‘Rise of India’s Digital Consumer’ study by comScore. Graph based on July 2011 and Jul 2012 data for 15+ age, home and work users
35

36. What the media
thinks about
the industry

38. he media is a key stakeholder for the PR Methodology
industry. Media relations are among its core
The primary objective was to assess perceptions of media
activities and rarely is a PR plan drawn up
persons regarding:
without a media angle to it.
 The PR industry and its efficacy in supporting journalists
The digital age is changing the way consumers interact  Emerging trends in news media and its PR implications
with the media and brands. Round-the-clock news, the  How to make PR more effective
internet and social media have created an aware,
Twenty-one depth interviews were conducted among
empowered consumer. This is, in turn, altering the
journalists in Mumbai, Delhi, Chennai, Kolkata and Pune.
relationship between the media and PR professionals.
The break-up:
However, the media and the PR industry enjoy a strange  Mumbai: 13
relationship - deeply symbiotic, yet edgy.  Delhi: 4
 Chennai: 2
It is important, therefore, to understand what makes this
 Pune: 1
relationship tick, what the points of conflict are, as well as
 Kolkata: 1
the potential solutions.
For this, MSLGROUP India conducted a dipstick
qualitative study, interviewing journalists across media - Perceptions
websites, TV channels, newspapers, magazines - to
gauge their perceptions of the PR industry. The objective Among the key themes that emerged was that, while PR
was to understand whether journalists were being professionals broadly understand their clients' businesses
suitably supported in their day-to-day news gathering and their operating environment, this understanding is not
and allied activities. fully communicated to journalists. Apart from that, there
exists considerable scope to improve the working
Journalists were asked to detail the problems they faced relationship between PR professionals and the media.
while interacting with PR professionals and suggest
changes. Apart from that, we included multiple-choice A common complaint was that PR professionals do not
questions to get specific replies on key issues. fully understand the different genres of media they interact
with and are generally unaware of the beats and repertoire
of the journalists they interact with. As a result, journalists
often receive communication on sectors, products and
issues that have no relevance to them or are not suitable
for the media outlet they represent. Background research,
the journalists pointed out, is conspicuous by its absence.
As a result, journalists who have to complete a
multitude of tasks every day are often disturbed by calls
from poorly prepared PR professionals or are spammed
by irrelevant press releases. This puts great strain on the
PR-media relationship.
A senior features journalist at the 'Hindustan Times', one of
India's leading dailies, said: "Too often, PR professionals
send me listings for 'your new products column'. Even a
cursory reading of the supplement I work for will reveal that
we do not, in fact, have such a column. There is nothing
more annoying than fielding these calls day after day."
38