The growing irrelevance of PR agencies: Can agencies stop their decline into obsolescence?

The PR industry is at a crossroads, facing a fast-changing media landscape and evolving client demands while the threat of in-house teams looms large. Can PR agencies adapt to survive or are they becoming obsolete?

By
  • Indrani Bose,
| July 16, 2024 , 8:38 am
The PR industry stands at a precipice. Can it successfully metamorphose from a purveyor of press releases to a strategic partner driving business impact? Or will it succumb to the increasing pressures of a digital age demanding authenticity, transparency, and tangible results? Only time will tell. (Image sourced from Moneycontrol)
The PR industry stands at a precipice. Can it successfully metamorphose from a purveyor of press releases to a strategic partner driving business impact? Or will it succumb to the increasing pressures of a digital age demanding authenticity, transparency, and tangible results? Only time will tell. (Image sourced from Moneycontrol)

A seasoned journalist’s candid assessment exposes the widening gap between the promised value and actual performance of public relations. As the industry navigates a fast-changing landscape, questions arise about the role PR professionals play in the modern media ecosystem. Are PR professionals becoming more of a hindrance than a help?

The journalist mentioned has been in the profession for almost a decade and has dealt with several PR professionals through the course of her career. The assessment is that there has been “a rapid degradation in the quality of PRs and the work they do, to the point that they at times become a nuisance.”

Pointing to something lacking in the fundamentals, the print journalist said that professionals in the PR industry today don’t have basic knowledge about the journalist — the beats the person covers, the publication they work for. “I still get asked if I am with the organisation I left 2.5 years back,” the journalist said on the condition of anonymity.

She added, “They just bombard (us) with messages, send press releases directly and spam us with irrelevant messages on WhatsApp without even checking if the person is interested or not or whether it’s relevant to their beats or not. They don’t have a clear understanding of their clients. For basic questions, they don’t have answers and need to get back to their clients for every little detail. They don’t understand the worthiness of the news and send weak pitches. And they don’t know how a newsroom works and how time means money for journalists. I think all of them should intern with newspapers/media houses before starting off as a PR”.

A former journalist with agency experience put the declining perception and value of PR agencies down to the leaders who “have hardly any knowledge of the industry, subject or client’s business. Most work is done by entry level executives who lack the basic knowledge and relations, while agency leaders aspire to become thought leaders without having any original thoughts,” they said on the condition of anonymity.

Not only journalists, clients seem to be wanting more as well. In today’s hyper-competitive landscape, clients are demanding more from their PR partners than ever before. According to Mohit Yadav, Co-Founder of Minimalist, the days of generic press releases and media pitching are over. Clients now seek strategic advisors who can navigate the complex digital ecosystem and deliver tangible business results.

Yadav emphasises the growing expectation for PR firms to become data-driven storytellers. Gone are the days of simply generating media buzz; clients want to see a direct correlation between PR efforts and bottom-line impact. However, many PR agencies are struggling to bridge this gap, leaving clients questioning the true value of their investment.

The rise of in-house PR teams is undeniably challenging the traditional PR agency model. However, a growing consensus among industry veterans suggests that the most effective strategy lies in a harmonious blend of both.

The In-House Takeover?

Dency Mathew, former journalist and PR & Marketing Head, Hansa Research, said, “In-house resources offer advantages such as a deeper understanding of organisational goals, culture, and products, better agility in responding to crises or opportunities due to immediate access to relevant information and decision-makers, and more control over the brand narrative. On the other hand, PR agencies can provide external and unbiased perspectives, specialised expertise, and the ability to deliver results to a wider audience through their extensive networks built over the years.”

Mathew believes achieving a good balance of both internal and external PR resources is essential for effectively managing PR strategies. They should be viewed as similar to a football team, where the in-house team acts as the defence, ensuring the company’s goals are safeguarded, while the agency is in the attacking position aiming to score against the competition. Ultimately, the decision between in-house versus agency support also depends on the specific needs, goals, and resources of each business.

Sonia Huria, Head Communications – APAC, Amazon Prime, shared, “I’ve seen first-hand the power of both in-house PR teams and external PR agencies. In-house teams are like brand champions – they truly understand the company’s DNA, ethos, and values.” This ensures consistent messaging and a strong narrative that resonates with key company stakeholders. “Their complete understanding of strategic priorities also enables them to work aligned with securing internal buy-in,” she added.

“However, having also managed large teams on the agency side, I recognise their agility as a major advantage. They have their finger on the industry pulse, boast wider media relations, and can often secure access faster and more effectively than you might be able to on your own,” she said.

Huria admitted that the initial learning curve can be a hurdle for PR agencies, as it takes time for teams to fully grasp a brand’s unique voice and culture. There’s also the risk that they might not fully understand the nuances of the brand, which is where the most dissonance occurs, according to industry professionals.

“I believe the future still treads on a careful balance – sharp, instinctive brand owners working with diligent, astute partners beyond transactions,” Huria added.

Experts also talk about the trade-offs. In-house departments, with their high accountability and long-term staffing needs, can be less flexible. Scaling resources up or down quickly can be a challenge. Additionally, an inward focus might lead to slower response times when facing external threats.

Samarpita Samaddar, former communication director, Bumble told us that PR agencies are relevant especially when it comes to handling pan-India mandates: “Yes, a long-term agency partner can do wonders on the mandate and bring outside perspective to the table as well; however the core of all communications strategies usually, in my experience, comes from within the brand,” said Samaddar.

A Fight for Relevance in a Changing World

The PR industry faces a critical question: is it clinging to outdated methods or embracing a dynamic future? Deeptie Sethi, CEO of PRCAI, dismantles the notion of “traditional” PR agencies, emphasising the industry’s current focus on a “T-shaped” skillset. This means agencies are not only going deeper in core areas like media relations but also expanding their reach to cater to the broader demands of clients in a digital-first world.

This shift is confirmed by a PRCAI study. While digital dominates, print media remains crucial for B2B and government entities. The industry itself thrives, with estimates suggesting a growth rate of 10-20 percent.

However, client expectations have evolved significantly. Komal Lath, Founder of Tute Consults, highlighted the rise of audio-visual communication and the need for PR firms to “level up” their skillsets. Clients are demanding smarter, data-driven approaches that provide “strong insight solutions” and counter-strategies.

The path forward for PR firms is clear: invest in talent development, create attractive career paths, and prioritise skill development for content creation, strategy customisation, and scaling solutions.

The PR industry stands at a precipice. Can it successfully metamorphose from a purveyor of press releases to a strategic partner driving business impact? Or will it succumb to the increasing pressures of a digital age demanding authenticity, transparency, and tangible results?

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