The biggest shift in PR history is not AI

When I was 15, I studied economics at school. At the core of the curriculum were the laws of supply and demand—a simple yet effective concept. Forty years later and after more than—three decades in the PR industry, mostly on the agency side, I think we are facing a radical, once-in-a-generation shift in supply and demand for the PR agency world. And we’ve only just begun to see the implications. Current discussions about AI are important, but we mustn’t ignore these fundamentals.

Let’s start with supply. The expectations and approaches of the talent that we rely on to serve our clients and grow our agencies are now hugely different. There used to be some unwritten rules in agency life for younger talent that gave it balance. Work for an agency for not very much money and you would learn from people around you, do interesting work, probably get to travel a bit and you could get promoted rapidly. Above all, you would have fun. Lots of it. In places like London and New York, you had the trendy job among your friends—and it was fulfilling in many ways. 

And now? I think we need to get real. PR is not a trendy industry any longer. Many employees—particularly at the bigger agencies—are seeing that the balance is now way off.  

The work remains hard, frequently stressful and the wages are not increasing. You cannot absorb some of the key skills we need in the same way on a Teams call. You are unlikely to travel. Financial pressures are very real and pretty constant. And what about the demand from our clients? I think that is also going through a period of radical transformation.  

Smaller, more nimble, specialised agencies have levelled the playing field more than ever against the bigger full-service players. The strong growth of many of the agencies and networks in areas such as financial PR, strategic consulting, public affairs and other specialisms tells us all we need to know. Clients are looking for talent that provides a consistently high level of service wherever they may be —who understand and are passionate about their business.

Online meetings are the same whatever the size or location of the agency, after all. Pre-COVID-19, the offices of agencies would be buzzing with client meetings every day—now there are perhaps one or two a week. Some teams don’t ever meet their clients face to face. So what do agencies do about this fundamental shift?

First, focus on culture. It is not about forcing people back into the office but creating an office environment that people want to be in by offering real learning opportunities, focusing on travel and team meetings, and engaging with your team through empathy and honesty. Bring the fun back into work.

Second, develop expertise in your focus areas. Being a generalist isn’t enough anymore; find specialists in various fields, as clients are more open to this than in the past.

And finally, remember the basics that drive success. While financial metrics are important, strong client service, creativity and solid relationships are essential for better financial outcomes.

Oh, and have an AI strategy. That will probably help.

Jim Donaldson is the non-executive chair of Instinctif Partners and Woodrow Communications – and a non-executive adviser to several other PR agencies.