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India’s PR industry grew by 13% in 2022, but remains challenged by talent issues, according to the PRCAI's annual Study of Public Relations Insights, Nuggets and Trends: SPRINT 2022-23.
The study surveyed 60 decision makers in public relations across consultancies and in-house communicators through qualitative and quantitative research, revealing an upward trajectory to India’s PR industry amid a fast-changing communications landscape.
“We are now being recognised as strategic consultants who help solve business problems and for this transformation to sustain, technology and talent has to complement each other most effectively,” said Atul Sharma, PRCAI president.
“Many of the trends uncovered in the research mirror the global shifts that have made corporate communicators more valuable in the C-suite, and PR firms less dispensable as trusted advisors,” added PRovoke Media editor-in-chief Arun Sudhaman in a foreword to the report.
South India and mid-sized players drive growth
The report estimates that India's PR industry ($260m) now accounts for 8.5% of Asia-Pacific and 1% of the global PR industry. Growth increased to 13% in 2022, a 10% jump from the pandemic era of 2021.
“There has been a newfound interest among all these industries for PR services," said Sharma. "And when I say PR, it doesn’t only refer to media outreach but also internal, brand, and partner communications."
In line with global trends, crisis handling, public affairs/advocacy and internal communication were deemed the top three services provided by the country's PR firms.
Deeptie Sethi, CEO of PRCAI believes that one of the major reasons for the country's PR growth is because “our economy is shaping up with a lot of private sectors, unicorns and start-ups (which are) seeking PR counsel.”
Sethi also noted that South India has emerged as a hub for IT, pharma, ed-tech and health & wellness firms.
The largest markets are still the North and West, although the Southern region is the fastest growing market in 2022.
The South recorded a 44% growth rate from 2017 to 2022, compared to around 30% for the North and West. In FY17, the South raked in 24% less revenue than the North, but four years later, the gap has decreased by more than half to just 11%.
From FY16 to FY22, mid-tier players saw a better than average growth rate, increasing revenues by an eye-catching 71%. This category also saw the highest compound annual growth rate (CAGR) of almost 20% while giant and large companies recorded less than 9% during the same period.
Evolving expansion of PR in India
The study found that half of respondents report increased operating margins over FY21-22, while 75% expected revenue growth of more than 10% in FY22. The private sector continues to drive expansion with an 83% contribution to consultancy revenue. Encouragingly, the PR share of client marketing budgets also saw a 7% increase in the past four years from 10% to 17%.
“In India, the share of annual marketing budgets is an encouraging result that is reinforced not just by a growing private sector, but by a booming tech sector that features a strong wave of startups and unicorns, along with world-leading innovation in ecommerce and fintech,” said Sudhaman.
In this regard, the study noted that PR firms should focus on the integration of digital and traditional PR, while adopting technology and automation to drive efficiencies, especially in terms of big data and AI. Consultancies are also expected to play a more strategic role as clients expect them to perform in a problem-solving capacity. Although budgets have increased for PR efforts, clients have become more value-conscious in terms of ROI and deliverables.
To achieve this, Sethi advised communication strategies to mirror consumption patterns. “Public relations has significantly evolved and is all about building relevance for brands. We are today not just writing releases, but making the content relevant to who it's being talked to and crossing the barrier of just one particular language.”
Sudhaman noted that some of the findings are uniquely Indian and deserve specific attention. “The rise of regional PR spend (from 15% of consultancy PR budgets three years ago to 25% three years hence) is one such trend, revealing how India’s tier two and three cities are fuelling growth and requiring far more localised content strategies.”
“If you look at (the) majority of the agency models," explained Sharma, “we have relied on affiliates and stringers in each of these markets and the quality of outreach in these specific markets hasn’t been given the attention that it deserves”.
“But now, as we see revenues growing in these markets and see them developing, whether it is in the form of setting up offices there, we need to make sure that the level of communication is up to the mark as we find in bigger cities.”
Talent challenges
According to the report, there is a significant attrition rate among entry and mid-level employees at 35% and 23%, respectively, who leave the PR profession altogether. This talent shortage is felt across the board: content (43%); digital (36%); traditional media (32%); strategy (25%); creative and regional (21% each).
Sethi cited the low barrier to entry as a contributing factor. “We see people from different disciplines coming into this profession at a young age. So, it sometimes becomes a profession of chance rather than a profession of choice.”
To combat this, she said “a lot more education is needed to evangelise this profession. Once they enter, investing in those people through training (and) upskilling is important to make them ready for the profession.”
Sharma believes incentivising talent is another strategic move. “We need to become more competitive when it comes to compensation for good talent. That's also tied to the kind of retainers that we earn from our clients, and the ability to create more meaningful work for the millennials who need purpose in their professional lives.”
“Earlier, media outreach was the only service which PR firms had to offer but now, the gamut of PR services is way wider, from internal communication to external communication to brand & partner communications, to even defining brand manuals and brand identity for some of our clients,” he concluded.
