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MSLGROUP in India
MSLGROUP
MSLGROUP in Asia
For 25 years, MSLGROUP has counselled global,
regional and local clients in Asia, helping them establish,
protect and expand their businesses and brands across
this fast-growing region. Today, communications and
engagement consultancy MSLGROUP has the largest
PR, social media and events teams in Greater China (12
offices and 700+ professionals) and India (12 offices and
550+ professionals) and is actively working to lead the
development of the industry with the regular publication
of whitepapers/reports and innovative Learning & People
Development programs to nurture talents. MSLGROUP
in Asia includes 35 owned offices and over 1,300
colleagues in Beijing, Shanghai, Guangzhou, Chengdu,
Hong Kong, Macau, Taipei, Tokyo, Kuala Lumpur, Seoul,
Singapore, Mumbai, Delhi, Ahmedabad, Pune, Bangalore,
Chennai, Hyderabad and Kolkata. An activation network
of colleagues reaches an additional 125 Indian and 100
Chinese cities and a strong affiliate partner network adds
another 23 Asian cities to our reach. MSLGROUP in Asia is
widely recognized as an industry leader and was awarded
PR Agency Network of the Year for two consecutive years
in 2012 and 2013 by Campaign Asia, as well as Asia Pacific
Consultancy of the Year 2013 by the Holmes Report.
The MSLGROUP teams in Asia have also been
recognized as leaders by multiple industry groups,
including The Holmes Reports China Consultancy of
the Year. (MSLGROUP China, 2012 & 2009), PR Agency
of the Year by PRCA in India (2011), recognition as a top
Event Agency at Marketing Magazines Agency of the
Year for four consecutive years (Luminous Experiential
MSLGROUP), Forbes Chinas Innovative China SMEs
(Genedigi MSLGROUP, 2012), Top PR Agency of the
Year by CIPRA (Genedigi MSLGROUP, 2012), Taiwan
Advertiser Associations Agency of the Year in Taiwan
(2011). The teams have won more than 65 awards in the
last two years.
Learn more about us at: asia.mslgroup.com + Twitter +
Facebook
PublicisGroupe
PublicisGroupe [Euronext Paris FR0000130577, part of
the CAC 40 index] is the third largest communications
group in the word, offering a full range of services and
skills: digital and traditional advertising, public affairs and
events, media buying and specialized communication.
Its major networks are Leo Burnett, MSLGROUP, PHCG
(Publicis Healthcare Communications Group), Publicis
Worldwide, Rosetta and Saatchi & Saatchi. VivaKi,
the Groupes media and digital accelerator, includes
Digitas, Razorfish, StarcomMediaVest Group and
ZenithOptimedia. Present in 104 countries, the Groupe
employs 53,000 professionals.
www.publicisgroupe.com
Twitter:@PublicisGroupe
www.facebook.com/publicisgroupe
Authors
Ashraf Engineer,
vice-president, content and insights
Amrita Choudhary,
associate director, content
Nirav Khatri,
manager, research and insights
Research agency:
Leadcap Ventures
Table of Contents
Executive Summary
04
06
Methodology
06
07
Integrated communication
09
11
The future of PR
13
Recommendations
16
18
22
Executive
summary
The 2014 edition of what we refer to as the India public relations (PR) report Public Relations in India: The
Impact of the Economic Downturn and the 2014 Outlook focused on the downturn and how agencies are coping
with it. The survey carried out across India focused on senior PR professionals and their views on how the
business was evolving.
One insight emerged loud and clear: PR as we know it is dead. We are in the age of strategic integrated
communication and agencies that dont evolve will die.
It is only fitting then that, in the midst of this change,
MSLGROUPs 2015 annual report on the state of the
industry changes too. Over the last three editions, our
research focused on industry persons. However, as
agencies strive to become central to the marketing
function and take the lead on brands, its important to
understand how marketing heads see it. Do they believe
new PR integrated communication has a role to
play? If yes, how important do they think it is? What would
they like to see in the strategic communication agencies
they turn to? How much money and time are they willing
to invest in them and how are they tying it in to their
business goals?
Our survey of marketing heads across India has been a
revelation. And full of hope.
budgets have grown one fourth in the past five years. One
of the reasons for the budgetary increase has been the
adoption of integrated communication by businesses.
With the PR industry making a decisive shift to this
model, the time is right to capitalise on this trend.
In fact, so important has this trend been that two thirds
of the respondents said they have already adopted the
integrated communication approach in order to achieve
higher engagement with audiences and greater visibility.
Whats a concern is that advertising agencies are being
seen as the ones adapting faster to the integrated
communication imperative. Marketers say they trust
advertising agencies to service their needs because
theyve delivered greater return on investment in the past.
Heres how PR has stacked up so far in their eyes.
ADVERTISING
PR
Objective
Reach
Interaction
Research data
Alignment with
brand and company
India strategic
communications survey
Needed now: Value-added communications
Our world is changing. The media landscape is altering.
Communication is evolving. Mediums of communication
are mushrooming. And the pace of evolution is staggering.
Recognising this, PR agencies are switching fast from
the traditional model to integrated communication. They
are investing in the tools and talent required for it and are
impressing upon clients why they are better equipped for
this age of engagement. The industry is striving hard to
become the lead on the overall marketing communication
function.
It was in this backdrop that MSLGROUP commissioned a
survey of marketing heads across India and across a wide
variety of sectors. The objective was to understand what
value they have placed so far on PR and whether they see
agencies transforming themselves to meet their needs.
As the integrated communication model takes root, it
is the marketing heads that our industry will have to win
over first. Proof of strategic value delivered and the right
investments will be the key to the industrys future.
Methodology
Automobile
Healthcare
BFSI
IT/Telecom/Consulting Consumer goods
Manufacturing/Textile/Heavy
Power
others
5%
10%
Events
Experiential
and activation
80%
15%
15%
Yes
No
PR
45%
Digital
28%
21%
18%
10%
12%
Advertising
Market
Research
10%
8%
3%
Not disclosed
0%-10%
40%-50%
Above 50%
10%-20%
20%-30%
30%-40%
78%
51%
Yes
Other reasons
39%
YES
No
Can't say
52%
16%
18%
8%
Not disclosed
0%-10%
More than 50%
10%-20%
4%
20%-30%
2%
40%-50%
Integrated
communication
Its now redundant to say that PR as we knew it is dead.
Both, industry experts and clients, have been stressing
for a while on the need for agencies to re-examine
their role. Respondents are clear that they are willing to
increase their budgets provided agencies can meet the
dynamic needs of the market and work as a partner that
understands their business goals.
Higher
engagement
with
audience
Delivers
greater
visibility
Specialised
or niche
offerings
33%
Innovations
Others
67%
47%
Yes
43%
24%
16%
10%
No
While everyone recognises its value, its still early days for integrated communication in India. Some respondents said
that one of the biggest challenges is adoption it is a long process, it could get expensive and it involves getting multiple
stakeholders on board.
Also, in a situation where there are multiple businesses, multiple products, multiple consumers and multiple outcomes
expected, it could get complex.
About 37% of the respondents said that if PR agencies were to offer integrated communication, it would increase overall
productivity, while 25% said it would result in better management; 22% said that it could save costs.
When asked about the disadvantages of PR agencies offering integrated communication, 22% said that there would be
difficulty in management, 18% said there would be internal conflicts and 16% believed that there would be a work overload.
PR agencies have lesser understanding of the brand. They have to prove themselves before offering integrated
communication, said a respondent.
If your agency were to offer you integrated
communication, what would be the business impact?
(Select all that apply.)
Overall
increased
productivity
Better
management
of virtual
teams
25%
Seamless
exchange
of data
18%
37%
Greater
innovation
ability
20%
Others
Overload
Not much
difference
observed
Others
Saved
costs
22%
18%
16%
14%
10%
22%
Less
overload
18%
10%
10
Where
PR stands today
While PR is adopting a fresh approach, it still has a long way to go before it can become part of the marketing DNA.
Advertising continues to be the leader on this front. Even digital, which burst onto the scene relatively recently, has
moved ahead by its sheer ability to reach a larger audience.
A high 48% of the respondents ranked advertising as
their first choice for marketing communication. PR ranked
third. Advertising, said respondents, helps establish a
direct contact with the target audience. It helps establish
the brand, while PR comes in later to reinforce brand
recall. Unlike advertising, PR is not a mass medium and
therefore its efforts dont translate into sales, they opined.
Which of these is your tool of choice for marketing
communication?
48%
25%
21%
6%
Advertising
Digital
PR
11
8%
8%
10%
10%
8%
6%
4%
20%
4%
2%
Not met 0%-10% 0%-20% 0%-30% 30%-40%
40%- 50% 50%-60% 60%-70% 70%-80% 80%-90%
90%-100%
29%
65%
Advertising
PR
Cant decide/compare
12
The future of
PR
The singular theme that emerged from the survey was
that PR needs to demonstrate more value if it wishes
to become the tool of choice for marketers. By value,
respondents mean that agencies need to adopt datedriven PR, be strategic and have a long-term perspective
that takes into account the dynamic needs of the brand.
About 39% said that agencies should demonstrate
how they can add value to their businesses. About onefourth (26%) said PR should shift to the integrated
communication model immediately.
When asked what kind of agencies would survive five years
from now, Harshvardhen Daga, brand manager, Linc Pens
and Plastics, said that for agencies to survive they need to
have a strong digital presence not just in terms of blogs
and e-news but also apps.
About 58% of the respondents said that agencies that
did not offer holistic strategic communication would die.
About 43% continued to trust their advertising agency to
deliver integrated communication services, while 25%
believed their PR agency could do the same.
The research and insights function emerged as a clear
winner. Almost all respondents (98%) agreed that data
and insights would have a greater role in campaigns and
overall communication strategies; 88% said data and
insights would be a must-have for agencies to be selected
by clients. About 43% wanted their agencies to invest in
research and insights, followed by digital/social (39%) and
content (35%).
Research &
insights
Digital/
Social
43%
Content
39%
Public
affairs
35%
Creative
29%
14%
Others
Crisis
Communication
12%
8%
13
Shift to
an integrated
communication
Invest more model by
in talent
adding more
services
Lower
fees
Others
98%
39%
33%
26%
16%
Yes
No
14%
42%
58%
Yes
No
88%
Yes
No
25%
20%
12%
Ad agency
Promotion Agency
PR Agency
14
The perception seems to be changing. At this time, 49% of the respondents said, they rely on their agencies for media
relations. However, 47% said they also expect the agency to manage their overall communication. This is encouraging and
a sign that things are moving in the right direction.
What are your expectations from a PR agency? (Select all that apply.)
47%
49%
Media relations
Managing overall
communication of
the board
37%
29%
15%
Others
Integrated communication is emerging as the unifier for business goals, products and brands across different mediums.
Advertising and PR are the two biggest tools delivering brand messages, each with their unique strengths. While RoI
on advertising can be measured through increase in sales, RoI on PR is tougher to measure. A measurement system
accepted as the industry standard is the need of the hour.
For the industry, it is important to understand that PR is gaining credence as a strategic tool. The onus is on the industry
to make the right investments but, more importantly, to effect a change in mindset that is in keeping with the needs of this
new age of connected and empowered stakeholders.
15
Recommendations
As new PR asserts itself in the communications landscape, it finds itself at an inflection point. The surveys
respondents are clear on what their goals are and what they need from their communication consultants.
The survey speaks loud and clear on what the action points should be for the industry.
16
Section II
17
Execute what
clients want to do
Only 0.4% of
global population
accessed internet
Help clients to
re-calibrate business
strategy based on
results and feedback
Evaluation &
re-calibration
enGagemenT
Journalists
only
5.
Press is the
only channel
Unbound
channels
Only coverage
counts
One-way
communication
Conversation
driver
Creative
content
Various
influencers
involved
Two-way
communication
Creative
storytelling
18
Discovery
Strategy
Ideation
Engagement
Measurement
NGE
Planning
Research
ent
ureM
s
A
me
1.
ImpAct
Gear towards
impact
Client workshop
Focus
group
naVi
gati
o
6.
Review feedback
from measurement
Desktop
research
Social
listening
Analytics
The ability to identify and make strategic
choices
Measuring effectiveness and effecting course
corrections when needed
idEa
tioN
Big ideas
nS
diScoverY
4.
i gh t
2.
i n T e gr a
Tio
Rate
3 . st
MSLGROUP
Purpose Matrix
gY
Quantitative vs.
Qualitative
Analysis
Make choices
Study and
report
SWOT analysis
19
20
Section III
21
Towards industry-academia
partnership
MSLGROUPs 2014 report on the state of the Indian PR industry focused on the impact of the economic downturn.
Even amid the gloom, the industrys optimism on the hiring front was inspiring, with 54% of the respondents
surveyed saying they would increase their employee count. But, with an average industry attrition rate north of 30%,
the issue of managing talent is anything but simple.
Many respondents had agreed that the inability to pay
high salaries would remain a concern. While this has been
a perennial worry for the PR industry, respondents felt
that the downturn had exacerbated it.
Industry veterans have long pointed out that talent was a
make-or-break issue and that urgent steps are required to
attract and retain talent. Not surprisingly, more than half
had said in last years survey that investment in training
would be in the 2%-5% of revenues range, while 17% said
it would exceed 5%.
However, this investment needs a qualitative shift too.
It needs, alongside training, a true partnership with
educational institutions to ensure that the students are
employable and suited to the needs of the industry.
This ranges from joint formulation of syllabi to
regular participation in classrooms by senior industry
professionals, intensive internship opportunities and
students involvement in live projects.
Altering academics
The industry has been continuously evolving and the
changing role of the PR professional has generated
considerable debate. To keep pace with the changing
dynamics of the market, many educational institutions are
offering full-time post graduate courses and specialised
short-term skill development certifications.
Full-time PR courses are fairly new and unfortunately
tend to be restricted to theory. In fact, in most colleges,
PR is merely one module in a mass communication
course. This undermines the value that PR brings to the
table.
22
23
24