WASHINGTON, DC — Agencies based across Asia told delegates at the Entrepreneurs’ Forum at the PRovokeGlobal summit this week that they were overwhelmingly optimistic about the health and future of the PR industry in the region, despite facing a number of challenges.

The panel – featuring Tarun Deo, founder and MD of Progressive Communications in Singapore, Caroline Hsu, The Hoffman Agency’s chief global officer with nine offices around the region, and Voal Voal Wong, managing partner of IN.FOM in Singapore – all said the public relations business is flourishing in Asia, financially and creatively.

Deo, who started his agency during the pandemic after a career across Asia with networks including Golin and FleishmanHillard, said he was “completely optimistic about my firm’s prospects and the prospects of peers who operate in that part of the world.”

At the Hoffman Agency, Hsu said there were many factors in why she was so buoyant about the health of the sector, despite the challenges: “The economy in every Asian market is growing and we’re doing well, especially in the technology industry, and we’re looking out to 2023 with business strong and steady.

“Our clients in the region are really looking for solutions now, not just basic PR – they are asking for our help in solving business problems, whether talent or sales acquisition, and that’s a really important shift for all agencies. And the geopolitical issues globally and across Asia mean there is the need for more market intelligence and crisis planning, and we’re seeing more demand for that.”

In terms of the picture in different Asian markets, Hsu said: “Japan and Korea are still steady, China is changing but is still strong, and Hong Kong has got its own rhythm – it hit rock bottom but is on the way back. And Southeast Asia is really waking up and asserting its importance in the region.”

Wong was more cautious in acknowledging there were challenges ahead in the next couple of years – not least the talent crisis and ongoing geopolitical turmoil – that could limit the industry’s growth: “Next year will be an interesting one. Colleagues are starting to be sensitive to some of the headwinds, including the China issue, and are a little concerned about 2023 and 2024.”

Hsu also outlined what makes the Asian region difficult from a servicing perspective: “First things first, the RFPs we’re seeing in Asia are sometimes cut and pasted from HQ. Then few clients have a clear business strategy in Asia or really know what they want, and it takes time to sort that out before we get into the details. Also, clients assume in Asia that they want to see PR combined with digital, but digital is increasingly complicated and fragmented: some ecosystems like LinkedIn, Facebook and Twitter don’t work in all markets, and we have WeChat in China and Naver in Korea.

“In addition, Asian companies have higher expectations than western clients around speed of delivery, and fees are much lower than US and Europe for the same amount of work – despite Asian economies having caught up or even overtaken some Western markets.”

The panel also explored the strengths of the independent agency sector in Asia, and the rise of homegrown agencies where a decade ago the market was dominated by global network offices.

Wong – whose first client at IN.FOM was Microsoft, which broke from its usual global PR network approach to hire the agency – said: “It’s about how we create a blank canvas for innovation, and how you craft an organisation that is built on purpose. The independent agency model is here to stay. I’ve seen global clients become more accepting of independent agencies and how we are able to create world-class campaigns for them, with regional remits beyond media and publicity. I feel it’s the golden era for independent agencies, in Asia-Pacific particularly.”

Deo agreed: “There are now a world of possibilities that allow independents to flourish in our part of the world and globally. For instance, I was able to raise capital without a single client and no track record of profitability within the firm. The winds that swirl in any industry provide a perfect environment for independents to cut down whatever the lines of differentiation were between independents and the larger agencies. The playing field has become more level.”

Hsu added: “We’re biased, but what makes us work is the fact that independent agencies have higher flexibility – and working in Asia you need that flexibility. We operate under one P&L, which gives us flexibility and gives clients flexibility to adjust budgets for different markets. We’re passionate about being independent so that won’t change – there are acquisitions on the table for next year and we’re excited to do that.”

Wong said that while there’s not one model that fits all, the rise of the independent sector in Asia was leading to a shift in business decisions: “Years ago we would have wanted to be as big as possible and be part of a network. The question of whether we want to be acquired now goes beyond the payout: what’s the value to us and to our talent? That’s what we ask ourselves every time a suitor comes knocking; we’re trying to resist, because we feel like it’s time for us to create a very different independent agency model.”

At Progressive, Deo said: “We’re only two years into our journey and the whole thing for me is how can I build something else that has a couple of components that I truly enjoy working on myself, both in terms of the nature of the work we do and the clients we’d like to represent. We’ve started working with a cool digital shop in Singapore which is three times our size and we’re discussing how to bring them into the fold.

“There are all kinds of interesting opportunities out there – while I ran and built agencies for holding companies, I never got involved in all these aspects, so I’m educating myself. What I believe Progressive ought to look like gives me a terrific high; let’s see where we go.”

As to where the centre of gravity is for the Asian PR world now, given the challenges in Hong Kong, Wong said: “We’re seeing momentum from Hong Kong to Singapore now, but it will be interesting to see what happens in China when it opens up, because the depth of creative ideas from China is incredible. Singapore is natural from a business standpoint, but I always look to China for the future of communications.”

Responding to a question about India’s place in the Asian market, Deo said: “India is almost going through a renaissance, comms wise. The entire comms spectrum is richer than it’s ever been and for a lot of agencies in that market – and there are some very large agencies – it’s just the tip of the iceberg."

“Unlike China, there are many operating aspects within India that a lot of Westerners can relate to: it’s a young population, with a democratic set up, and a very robust media environment. Language is a big bonus: a lot of Western social media platforms are thriving in India. Given all those elements, it’s certainly a market worth looking at, investing in and which needs to be interacting with – there is massive potential in India for the next couple of decades.”