Managing Public Relations:  Insights into hiring public relations agencies

Published in February - March 2007

Pr agency use by large organisations in the US continues to be primarily driven between a need for extra resources to complement those internally and the external perspective that an external agency can bring.

These are the findings from the fourth annual Public Relations Generally Accepted Practices Study (GAP IV) published by the USC Annenberg Strategic Public Relations Centre (SPRC).

While the scale of the business in the US is very different to that in Australia the insight into why agencies are hired is still relevant to Australia where most large organisations employ a mix of internal pr capability and external agency resources.

The reasons for hiring agencies, as provided by 483 respondents were (not multiple reasons are included).

• 51 percent - additional arms and legs
• 47 percent - complement our internal capabilities
• 41 percent - unique experience
• 40 percent - strategic/market insight and experience
• 30 percent - objective point of view
• 20 percent - cheaper than adding staff
• 20 percent - limits on internal headcount
• 12 percent - ability to quantify results

The study noted that “while ‘additional arms and legs’ which implied no intellectual or strategic added value, remained the number one reason clients worked with agencies, the continued strength of ‘complements our internal capabilities’ can be seen as an indicator of the importance clients place on turning to agencies for specialised and/or deep expertise, or staff breadth and depth that they cannot otherwise obtain”.

The study also ranked the reservations respondents had about working with agencies which were ranked as follows:

1         Cost

2         Lack of knowledge/insight into our business

3         Return on investment

4         Junior level of assigned team

5         Staff turnover

6         Ability to quantify results

7         Ability to execute projects

8         Current/potential conflicts of interest

As to who is involved in the decision-making process of selecting an agency or adding an assignment to an existing agency the study revealed (again, note multiple answers):

•     70 percent - PR Department
•     62 percent - Corporate Communications
•     50 percent - Marketing
•     42 percent - C-Suite
•     11 percent - Procurement/resourcing
•     10 percent - Legal

 PR Influences is produced by Network PR, a Sydney-based pr agency which specialises in business, technology and digital communication. For further general information view Network PR’s website, or email us network.syd@networkpr.com.au  for specific assistance.