PR IS HELPING UK BUSINESS BOUNCE BACK. BUT THE BOOM WILL BE MORE COMPETITIVE THAN EVER.
Katie Clift MBA, director of may:be agency, gives her predictions for the future of the PR industry in the UK.
Across the UK, the forecast for PR is booming.
After a significant reduction in PR spending and drop in communications confidence across industries during COVID-19 and post-Brexit, it appears investment in PR is now back on the rise – and rapidly.
Over the five years to 2025, IBISWorld reports there will be a 4% increase in the number of PR businesses operating in the UK, leading to an almost 8% increase in the number of employees (totalling 43,000+), and the industry yielding more than 4.7 billion in revenue.
Evolving media landscapes in recent years have left businesses debating on where to allocate their communications spend, and how much to invest. Traditional media is still relevant, but the emphasis is shifting in the majority to digital, allowing for tailored, direct PR messaging with target audiences.
The UK’s PR industry resurgence is not dissimilar to patterns internationally. Businesses globally are recovering, with organisations eager to reconnect with their target audiences in a meaningful way and boost their public reputations.
On-the-ground in London this week for client visits, I spent a significant amount of time reading the room on PR with a range of stakeholders – nonprofits, the private sector, PR and media monitoring services, trade media and universities.
Here’s what I discovered about the current state and future predictions of the PR industry in the UK, which I’ve found mirrors trends unfolding internationally (the PR work and research we undertake spans Australia, Switzerland, the EU and US):
- Competition is high, innovation is key
Competition is heating up across the UK backed by strong industry growth figures, meaning gaining and maintaining competitive advantage in the market will be key. The sheer volume of PR agencies (let alone freelancers) means innovation and unique value propositions will become increasingly more important for organisations to win accounts, build client bases and ensure ongoing growth.
- Earned media is becoming significantly more important
All of the stakeholders I spent time with in London – on both sides of the public and private sectors – cited reduced budgets for paid media, and a greater strategic focus on earned media. This is good news for PR. Whether that means some organisations will reinforce their resources in-house or look externally for project / strategic support – the message is that the value of PR in earning organisations media coverage, brand awareness and strong reputation is being recalled and reinforced.
- Novel approaches are needed
Client demand for new and novel approaches to PR is building. I witnessed this sentiment in my meetings with nonprofits and commercials in the UK – and it remains the case for private sector and international organisations operating globally. The old model of high retainers with mixed deliverables appears to be shifting – with project-based work becoming more common, and clients demanding fresh thinking and efficient results.
- AI is an add-on, not yet a dominator
The UK PR industry is following the same trends we’re seeing internationally – AI is being used as an add-on within agencies, a level-up to their existing approaches and strategy – but it is not yet dominating PR activities. Clients are wanting a general level of transparency on the use of AI – and it is commonly being used to enhance PR approach. It’s early days yet, and much of the industry is concerned about the potential of AI to dominate in future, reducing the need for account directors or general copywriters. For now, across the industry, shared learnings on the application of AI are a hot topic, and collaboration is leading to greater confidence in new technologies.
Overall, in my experience, excitement about the future direction of the PR industry in the UK is high. The discipline is in demand across industries, and growing, with a renewed emphasis on the ROI of earned media. As is the case across the international PR industry, the influence of AI will be one for organisations to watch, and innovation will become increasingly more crucial for PR agencies to maintain competitive advantage.
PR in the UK weathered the storms of COVID-19 and Brexit, maintaining resilience, and it is back at the forefront. Our insights show the boom will be more competitive than ever.
