PR Predicted to Fare Positively in Economic Recession

Annie Terracina
March 7, 2008

PR Predicted to Fare Positively in Economic Recession

The Labor Department announced today that 63,000 jobs were lost in February due to the current economic recession. As college seniors preparing to enter the workforce, this is troubling to say the least.

What exactly is a recession? According to dictionary.com, a recession is when the state of the economy declines and there is a widespread decline in gross domestic product and employment. Recessions generally last six months to a year.

Fortunately, a recent article from the PRSA by Chris Cobb reports that PR agency professionals are prepared for this turbulent economic time. 

Cobb states that despite the current recession, many agency professionals view this time as an opportunity to grow rather than a potential career disaster. Through surveys on the PRSA web site, two prominent pieces of advice have arisen. Agencies need to diversify and do aggressive public relations for public relations in the business world.

Thomas J. Madden, founder and chairman of TransMedia Group in Boca Raton, Fla. says, “I see this as an opportunity for PR firms to be remind the corporate world that PR is a much more effective way of branding than advertising.” He adds that studies have repeatedly shown that messaging transmitted through the media have more credibility among consumers than advertising.

Kelli Parsons, managing director of the New York office of Hill & Knowlton says her agency had strong growth last year and the beginning of this quarter. “Things can change quickly but we have reason for our optimism,” she says. “Much of the downturn has been contained to the financial-services sector, which is not a significant outsourcer of public relations and communications services. That could change if the downturn impacts other sectors. If it does, and I think it probably will, we are well-positioned because we have a global footprint and offer diversified services.”

However, some firms have seen the negative effects of the recession. Lyria Howland, APR President of Howland PR in Dallas says, “Our agency certainly has felt the economic downturn. I have chosen not to replace at this time two [of four] employees who left in December.”

On the contrary, Parsons of Hill and Knowlton in New York says her agency continues to hire aggressively. “This type of situation can make great talent available, so, while we watch our bottom line, one area we want to continue to invest in is attracting young talent and training,” Parsons says. “We learned that in a downturn, when money is tight, the firm with the best talent wins.”

There is the tip of the week, everyone. Don’t lose sleep over the current recession, and if you want to move to New York, apply at Hill and Knowlton.