Chris Savage: ‘Half of Australia’s independent PR agencies could close in the next five years’
Half of Australia’s small independent public relations agencies could close in the next five years, one of Australia’s most seasoned PR professionals has warned.
Savage: Half of the PR industry will be gone in five years time.
Delivering the closing keynote at the Commscon conference in Sydney yesterday Chris Savage, the former COO of STW Communications and founder of Ogilvy PR Australia, warned: “My view is that there are some 400 public relations agencies in the Sydney yellow pages – 90% of them have 10 people or less.
“I believe there in five years time there will be 10% that will be thriving. There be then 40% – so around 160 firms – eking out a living and the rest will have closed. Half of our industry will be gone in five years time.”
Note to self: don’t listen to anyone who sources the yellow pages, especially when they get it wrong:
“400 public relations agencies in the Sydney yellow pages”
…There are 411 you bastard.
Another Agency… really? Grab a chockie Easter egg and chill.
Correction: not Zen. I said “Zing” . Zing is doing amazing things with virtual reality. Brilliant stuff. Chris
Hi Chris,
Thanks for flagging, that’s updated now. And thanks for the great presso as well.
Cheers,
Alex, editor, Mumbrella
Great overview Chris
Was an interesting insight until I got to the bit about his new business advising agencies on growth – which is obviously advising them on providing PR services – it was then just a snake oil pitch.
If you’re investing in Yellow Pages – especially when there are already 410 others doing the same – then you deserve to go bye-bye.
disagree. the good boutiques, mid-sized players, and indies will do well because they are faster and don’t have large overheads, offshore bosses, and unrealistic P/L’s to service. plus many clients don’t want to get ripped off anymore.
Thanks Chris, I appreciate the feedback.
This is an incredibly narrow view of how things are operating, all I hear is complaints about these agencies you mention. Boutiques, freelancers are the way forward for value at a senior level. I’m all the way with DC NZ. I run my own shop on a boutique freelance basis and clients have never been happier they don’t have to pay for PR agency overheads i.e. fancy offices, far too many staff in meetings and muffins…..
I’m sure many agencies will close, and more will pop up to replace them.
New PR Agency opening? Take a drink.
Bigger is not better. Just two of us in our business (after selling our large consultancy) and our clients like the fact they’re dealing only with us, the consultancy principals. We don’t need a lot of clients, which means we can focus on quality of output. Having collaborated with large agencies in the past I know how bureaucratic they can become. Remaining flexible, responsive and proactive is the way of the future whether large or small. Having been in both camps, I’d rather the latter.