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1 | Introduction | 01
i) Background and objectives 01
ii) Scope 01
iii) Methodology 02
iv) Participants 02
v) Nomenclature 02
8 | Digital expertise | 34
i) Consultancy versus in-house 34
ii) The use of specialist digital agencies 34
11 | Remuneration | 43
12 | Background and experience of existing HDCs | 44
13 | Digital budgets | 45
14 | Interesting blogs, articles and books | 47
1 | Digital Communications and Social Media – the challenges facing the PR industry | © Watson Helsby
1 | Introduction
i) Background and objectives
Traditional media has lost its monopoly Rather than targeting audiences through
on news. TV and radio coverage and ‘media gatekeepers’, it is now possible
much more is now available on demand, for organisations to engage directly with
with broadcast and print content often consumers, using any number of online
consumed through hand-held devices. New channels. As a result, the communications
media is fast converging with traditional industry needs to understand the changes
media and becoming mainstream. Indeed in technology and shifts in consumer
the traditional media is now taking its cues attitude and behaviour in order to adapt for
from new media which is acting as an echo the future and to exploit the opportunities
chamber for consumer opinion. The last few that are emerging.
years have also seen the democratisation
of the media – anyone with a computer and Against this backdrop, Watson Helsby –
an opinion can now be a media owner or the executive search firm which recruits
publisher. In 2009 over 70% of households in into senior corporate communications
the UK had access to the internet1. Millions roles – decided to commission research
of people now act as online commentators, to explore the impact of digital
creating their own news and broadcasting communications on the PR function,
their personal opinions (about individuals, both in-house and within consultancies.
companies and organisations), comments
and views in real time. And this information ii) Scope
(and misinformation) can be accessed
instantaneously by anyone via the internet. The aim of this research is to establish
What is more, unlike traditional media, how digital communications is impacting
online content doesn’t currently have and redefining the role, responsibilities,
to pass any editorial controls. activities and thinking of today’s senior
communications professionals. Whilst we
Added to that, the recent downturn has touch on some of the issues around training
had a profound effect on the environment and development for entry-level digital
in which companies operate – trust in PR communicators, we have focused our
business is at an all time low. Public trust in research on those practitioners operating
traditional forms of media has also declined at a senior management level, both
while faith in peer recommendations, blogs in-house and within PR consultancies.
and user-generated content (UGC) has
increased according to a recent poll by the Although there is some significant cross-
PRCA2. All of this means that the power has over between digital activities in the PR
now shifted firmly towards the consumer. arena and those activities undertaken
by the marketing, advertising, customer
These technological and societal changes services and the CRM functions (and
are having a far-reaching impact on the which we reference in the main body
PR/communications discipline and are of the research), we have limited our
presenting huge challenges as well as study to those roles, responsibilities and
opportunities to the industry. Every aspect activities currently housed within in-house
of how, when and where we share and communications teams or within specialist
consume information is being affected. digital PR or generalist PR consultancies.
iii) Methodology
In-House
During 2009, we conducted face-to-face American Express (UK & USA)
interviews with approximately 40 senior AOL Europe
communications professionals, the vast Arcelor Mittal
majority of whom are involved, to a greater Associated British Foods plc
or lesser extent, in digital communications. Bebo
Most either had oversight of the discipline British Red Cross
within an organisation or were heading Dell Corporation
up digital practices in consultancies. Diageo plc
We also interviewed a number of authors Hutchison 3G
and academics. InterContinental Hotels Group plc
Kingfisher plc
iv) Participants Nimbuzz
Nokia plc
We would like to thank the senior
communications practitioners who have The Coca-Cola Company
participated in this research and given of The Conservative Party
their time so generously. The majority of the T-Mobile UK
interviews we carried out for this study were Unilever plc
face-to-face, and included participants Vodafone Group plc
from a wide range of industries including Yahoo Europe
telecommunications, travel and leisure,
fmcg, new media, retail and financial Agency
services. On the agency side we spoke with 33 Digital (previously Hotwire)
CEOs, MDs and practice heads of the larger, Bite Communications
international PR consultancies as well as Blue Rubicon
MDs of the smaller, specialist agencies. Citigate Dewe Rogerson
College Hill
v) Nomenclature Consolidated PR
CST Advertising
Although most participants in this research Edelman PR Worldwide
were involved in setting and managing Fishburn Hedges
digital PR strategy for their organisations Fleishman-Hillard UK
or clients, as was expected job titles Kindred Communications
varied hugely. In-house these included M Communications
Head of New Media, Head of Corporate
Porter Novelli
Broadcast & Digital Media and VP Online
Precise
Communications. For those participants
Resonate/Icon
within agencies, titles ranged from CEO
through MD, Director of Digital Strategy and Shine Communications
Head of Social Media to simply Director. For Snapper Communications
the purpose of this report, and for ease of Staniforth
reference, we have used the title Head of The Group
Digital Communications (HDC) throughout.
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3 | Digital Communications and Social Media – the challenges facing the PR industry | © Watson Helsby
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Many are struggling to make sense
of digital media and the disorder
it has generated. For many it is
more ‘thought in progress’.
5 | Digital Communications and Social Media – the challenges facing the PR industry | © Watson Helsby
to a certain extent, on whether respondents With the growing use of online social
were based in-house or within consultancy, media tools by politicians and political
the industry sector in which they worked, commentators, and with the UK’s recent
and whether they operated at a group, election, which was fought both online as
brand or business unit level. well as offline, the integration of online into
public affairs monitoring and campaigning
Two final points raised were the ongoing is inevitable.
‘land grab’ being fought with advertising and
marketing colleagues as to which discipline Our research shows that the current ‘no go’
should ‘own’ digital communications; and area for digital communications is financial
the fragmentation of the media which has PR and investor relations. Whilst at first
meant that there are now literally thousands glance this appears to make sense – these
of media outlets to contend with, making it disciplines have to operate within onerous
ever more difficult to determine how to legal and regulatory frameworks – there
best reach and engage with stakeholders. is a marked reluctance amongst many in-
house and agency financial PR specialists
Impact on the key in-house to even consider the use of social media
communications disciplines within their City PR strategies. Yet our report
carries clear evidence of the increasing use
We examined the impact of social media on of online social media tools by shareholders
four of the key communications disciplines; and investors, as well as the growth in
media relations, internal communications, traditional media sourcing City stories online.
financial PR and investor relations, and
public affairs. The use and uptake of social
media tools
Given the explosion in the number of online
media outlets, media relations is the area The extent to which social media tools are
where digital communications can have being exploited and activated by in-house
the most impact, but paradoxically, most communicators and their agency advisors
media relations practitioners continue to varied widely and is largely dependent on
focus their efforts on the traditional media. the size of the organisation and its budget,
However, prioritising the integration of social the sector in which it operates, the scale
media with traditional media activities will of its influence and the audiences with
become a key focus for respondents going which it has to communicate and engage.
forward. This will bring a fundamental Consumer-facing organisations and those
shift in the modus operandi of many media whose customers and stakeholders are
relations professionals; the ability to craft already active online are much more likely to
messages for multiple platforms, from be proactively incorporating digital PR into
press releases through blogs, Facebook and their communications strategy than their
Twitter to chat rooms – and the ability to do b2b peers. Those communications directors
this quickly – is becoming an essential tool operating at a group level were less likely
in their armoury. to adopt proactive digital communications
than those operating at a brand or business
Internal communications is also being unit level.
affected; interviewees are working hard
on introducing social media guidelines for We found that companies’ digital
their staff in the knowledge that the best communications activities fell into four
advocates – as well as the most vocal critics separate phases which we have defined as
– for their business online are often their ‘crawling’, ‘toddling’, ‘walking’ and ‘running’.
own employees. The public affairs discipline Activities range from creating and hosting
is also being affected by the rise in digital the online press office site (crawling) to
communications, and increasingly so. addressing the company-wide structural
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8 | Digital Communications and Social Media – the challenges facing the PR industry | © Watson Helsby
The skills outlined above apply to all and governance framework which is
of the key disciplines; media relations, embedded across the organisation.
internal communications, public affairs,
financial/city communications, corporate However, recruiting a senior level HDC is
responsibility. Which means that proving to be a key challenge as there is a
practitioners of all types have to adapt, dearth of talent. Suitably experienced senior
evolve their skill-set and integrate digital level digital communications specialists who
into their activities. From our perspective it combine both traditional communications
seems that media relations (consumer and skills with solid digital expertise are in short
corporate) and internal communications supply; a situation that will likely continue
have begun to integrate digital into their until such time as today’s young digital
planning and programmes, though this is by natives mature and start taking up senior
no means widespread. The public affairs and posts in communications. In the interim,
financial PR disciplines, with some notable organisations will have to continue to fight
exceptions, are further behind and need to for the limited pool of talent available; or
urgently review their activities to establish make the difficult choice between hiring a
how digital communications can augment communications expert (and teaching them
and support their traditional and, at times, digital) or a digital expert (and teaching
formulaic approach. them communications). In our experience,
it is the former approach which is currently
On the evidence of the research, and other proving the more successful.
conversations we have had, agencies are
leading the thinking on digital. But this is The emergence of digital communications
to be expected since organisations have has not, and will not change the
always tended to ‘buy in’ innovation and fundamental contribution of senior
advice on best practice from consultancies communications professionals. Indeed
in new specialist areas. Those organisations the ability to identify issues, craft relevant
which do have in-house digital support have, and impactful messages, distribute
on the whole, recruited junior to mid-level those messages, engage with multiple
social media managers who are primarily stakeholders, and monitor and amend
focused on tactical online activities. responses accordingly, will continue to be at
However the research suggests that this the heart of good communications. However,
is a transitional period and that these skills now need to be over layered with
organisations will increasingly move away better technical knowledge and an improved
from their reliance on agencies and start understanding of how to engage across
appointing senior level dedicated digital multiple platforms (both offline and online).
experts who are able to advise on the
bigger, integrated picture. Social media is a development that is forcing
the communications and PR industry to
Does digital communications require a evolve its traditional areas of expertise, flex
dedicated in-house professional? In our its skill set and develop new knowledge –
view yes, albeit as a short to medium term for the first time in years. If it successfully
answer rather than as a permanent solution. capitalises on the synergies between its
The appointment of a senior level ‘digital traditional skill set and the characteristics
ambassador’ to drive the digital agenda of digital, there is a real opportunity for the
and educate across the organisation PR and communications industry to lead
should be seen as a key step in addressing the field in digital communications, taking
the myriad functional, cultural and ever more responsibility – and budget –
technological challenges presented by from their advertising and marketing peers.
digital communications. The key remit However, when it comes to fully integrating
of this ‘digital ambassador’ should be to digital activities into longer term strategic
establish, over the short to medium term, communications planning, the PR and
a company-wide digital operating model communications industry still has a very
long way to go.
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10 | Digital Communications and Social Media – the challenges facing the PR industry | © Watson Helsby
3 | Digital PR
i) Definition of digital However, the majority of participants
communications did have their own descriptions for
the discipline, although there was no
As one would expect of an embryonic consistency of opinion about what activities
discipline, there is still no commonly agreed were – or weren’t – included within these:
definition of digital communications. Indeed,
a brief foray into the online encyclopaedia
Wikipedia to search for ‘digital PR’ uncovered “The convergence of traditional media and
“No page with that title exists”. To illustrate blogs, forums, podcasts, chat rooms, wikis
this fact, when we asked the 40 participants and websites.”
in this study for their definition of digital
PR, we received over 50 different responses
(some interviewees gave a number of
definitions) and two who said they weren’t “An interactive form of communication where
even going to attempt to describe this you are able to be both the broadcaster as
“amorphous” discipline: well as the receiver of information, and where
there is an equal balance of power between
all participants. In other words, your voice is
“I don’t think as an industry we have really equal to the voice at the other end.”
defined what ‘digital PR’ is – I believe it’s all
about listening to people and engaging online;
it’s about personalised communication.”
“Anything online, or anything that relates
to my brand online – it’s all to do with online
brand reputation, brand building and good
“Just call it ‘communications’, after communications.”
all, it’s just another channel.”
Publish
MMO Share
Social Discuss
Games
Social
Media
Virtual Social
Worlds Networks
Livecast Microblog
Lifestream
Courtesy of FredCavazza.net
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12 | Digital Communications and Social Media – the challenges facing the PR industry | © Watson Helsby
20%
of those in-house are
60%
of those in PR agencies are
confident about their digital confident about their digital
communications plans. communications plans.
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“We have loose guidelines for our Many interviewees insist that governance
employees, for example, we advise in the digital world is about giving guidance
employees to clear any content with and advice on usage rather than banning
their manager if they’re blogging access. Whilst they acknowledge that one
about our company.” of the biggest challenges for organisations
is letting go of a certain amount of control,
The extent of these guidelines range from they claim that allowing employees to
a total ban on the use of social networking use their initiative online, whilst providing
sites through to the opposite extreme of user-friendly guidelines, will increase
actively encouraging online participation not only innovation but also loyalty and
across the organisation. The Coca-Cola staff retention.
Organisation, for example, has recently
introduced a group-wide set of online social “The new rule is relevance, not governance.
media principles5 which aim to empower Relevance sparks control and debate.”
and encourage staff to participate in
online conversations with a wide variety of “We want our people to do it, NOT third
stakeholders. Interestingly, these guidelines parties. You need authenticity and
make the important distinction between a named person from your company
employees commenting online ‘on behalf’ as it helps put a personal face to the
of the company’ and speaking ‘about’ organisation. I certainly don’t want to
the company. devolve that relationship to an external
body such as an agency.”
Almost half (48%) of the companies
we spoke to take an informal and non- “To a certain extent, you have to give your
prescriptive approach and do not have people a relatively free rein – if you are to
guidelines on blogging in the office if it is maintain the spirit of online engagement,
personal and does not mention the company there is a natural loss of control within
name. However they do have a set of rules this space.”
if employees are contributing to a blog
that either mentions the company, covers “How can you ban employees from
the industry or if staff are commenting engaging online? What if they’re on their
‘on behalf of’ the organisation. In these lunch break and want to go into their
instances, online engagement is generally Facebook page? If they are at home on
restricted to their in-house corporate their own computer, we wouldn’t be able
communications, marketing or customer to dictate what they can and can’t say
services teams. online about our company.”
48%
make their organisation more open to
employees engaging online were coming
up against resistance from their in-house
of companies interviewed take legal departments. Legal teams are
a non-prescriptive approach to concerned about not only the unauthorised
dissemination of company material by
blogging in the office.
employees but also the risk inherent in
using the web at work, such as data
38%
leaks, viruses and hackers.
“I’ve had a few problems with our general vii) Privacy and corporate security
counsel but I am gradually turning them
around to my way of thinking.” Two further challenges raised by
respondents, which we have grouped
Interestingly, 38% of HDCs, mainly from together into a single category since
FTSE organisations, were in favour of a they are interlinked, were online privacy
total ban on employees using any types (or rather the lack of it) and corporate
of social media in the workplace, which security. The lack of privacy inherent in
shows that the subject is starkly polarising. social media – the almost automatic ‘opt
in and share everything’ ethos – means
“This is dangerous territory. At the that organisations are struggling to
moment, I’d rather ban everything that protect both their employees’ privacy
runs the risk of sensitive company and their company’s.
information being sent out from the
organisation without my knowledge.” “Whatever information a company or
individual disseminates online can be
“My company is not a democracy there forever and found by virtually
– it is there to serve its shareholders.” anyone with access to a computer.”
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Interviewees cited three key areas of information days, if not weeks, after
concern, namely: a situation has arisen online. This is
because ownership of data is housed
a) Outdated evaluation methods used by in other departments, making timely
external agencies. Many metric companies and effective response impossible.
are still generally geared towards measuring
one-off campaigns, rather than the linear “My IT department currently use Google
activity which is a more prevalent, if not Analytics to analyse online usage and
the distinguishing characteristic, of online sentiment across the organisation and
communications. There is a need to make I often don’t get the information from
analysis more relevant to the ongoing them until it’s too late to act upon it.”
dialogue used in social media projects.
Participants from PR consultancies
“Online PR campaigns are now much more also recognise the current challenges
about continuous communications (very of analysing online communications
linear) rather than the peaks and troughs campaigns and agree that there needs to be
of traditional PR campaigns. Therefore, new methods of measurement. However a
research and evaluation needs to be an number commented that they themselves
on-going assessment rather than based were struggling to get clients to move away
on the old fashioned ‘campaign’ model, from the traditional ways of measurement
where there’s a beginning, middle and and to agree to a more effective means of
an end.” monitoring online campaigns:
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b) Consultancy:
PR agencies too are being affected as a
plethora of different agency specialists
encroach further onto the digital turf. They
are increasingly having to pitch against
advertising firms, media buyers, SEO (search
engine optimisation) agencies, integrated
agencies and digital specialists in order
to win some of the lucrative digital spend.
Many PR agency participants see this as an
opportunity for their industry, commenting
that the web is a conversational medium,
much more relevant to PR. By playing to
these strengths, they see an opportunity
to gain market share from their colleagues
in the advertising and marketing agencies.
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80%
This move towards integrating social media
opportunities into the wider media relations
remit will inevitably result in a fundamental
of in-house respondents are shift in the modus operandi of many media
yet to successfully integrate relations professionals. The ability to craft
digital activities into their messages for multiple platforms, from
press releases through blogs, Facebook and
wider communications plans. Twitter to chat rooms, etc. – and the ability
to do this quickly – is becoming an essential
tool in their armoury.
The general consensus amongst
interviewees was that, whilst they are “We’re years away from getting this
making some modifications to how they right. Many traditional communicators
manage their communications (including don’t understand that you can’t just
changes in tone of voice, speed and focus), send a press release to everyone in
it was still very much business as usual. the digital space – it shows a lack
The overall view amongst respondents is of critical thinking.”
that the fundamentals of communications
(identifying the issue, developing a narrative, “If you can’t Twitter your company
communicating that narrative to a range messages [ie. in 140 characters], you’re
of stakeholders and monitoring and not communicating clearly enough.”
responding to feedback) have not changed.
It is just that these are now overlayered
with speed and channel diversity.
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big overarching goals like sales growth and “The majority of financial PR agencies
customer service, social media is able to just don’t understand the potential
speed the flow of work and power employee implications of digital communications
productivity. As a result, many respondents in the City. With one or two notable
are now fast-tracking internal digital exceptions, they just don’t get it.”
communications guidelines and focusing
more attention on engaging and mobilising Social media and digital PR is, at best, an
their employees as advocates for interesting supplement to their traditional
the organisation. media efforts. There is recognition however
that the blogosphere needs – as a bare
iii) Financial PR/investor relations minimum – to be actively monitored from
a City perspective, particularly because:
Financial PR and investor relations
professionals have to operate within i) The web is being used as a research tool
inflexible and onerous legal and regulatory by investors and others looking to acquire
frameworks which govern the content, or to take a position on companies. These
timing and distribution of price-sensitive investors are surfing the web looking
information to ensure a company is meeting at companies which have large digital
public disclosure requirements. The footprints for possible investment. Online
verification process that most materially- research is now part of their due diligence
sensitive information has to go through process, reviewing blogs and chat rooms to
is stringent and time-consuming. A stock provide additional insight into the reputation
exchange announcement, for example, and health of the business in which they
often requires sign-off from all manner of are interested.
stakeholders (management board, brokers,
advisors, legal, risk etc.). As a result, most In support of this view, Brunswick Group6
listed companies follow a tried and tested recently surveyed nearly 500 institutional
media communications strategy in support investors and sell-side investors in the US
of their financial results, focusing almost and Europe examining if and how new media
entirely on the traditional media (newswires, (defined as blogs, message boards and
print, broadcast etc.). social network sites such as Facebook, and
microblogging services like Twitter) plays a
This somewhat formulaic approach to role in their investment recommendations
financial PR, one adopted by most companies and decisions. A key finding of the survey
and their advisors, means that it is virtually was that the investment community [still]
impossible to proactively prepare and overwhelmingly looks to companies as their
distribute financial PR information online primary source of information, with the
at the speed the medium requires. Our influence of new media playing a limited,
research showed that only a handful of albeit growing, role. The survey goes on to
HDCs involved in managing their company’s state some of the reasons for investors’
financial results are proactively using digital limited use of new media today, including
PR or social media as part of their financial [new media] information not being reliable
PR announcements. enough to serve as a basis for an investment
decision. However, the survey did confirm
“At the moment, the current no-go area that, whilst investors do not rely on new
for social media is financial PR.” media information to make an investment
decision, they do regularly read blogs for
“Corporates are not fit for purpose in the business information that prompts them to
digital age – the speed of response is investigate an issue further with a view
simply not there.” to potentially investing.
71%
– Setting the day’s news agenda; real time
communication of the company’s results,
establishing core corporate messages
early on in the day
of UK parliamentary staff first
– Ability to track response and amend
messaging; online feedback enables the learn of policy issues online.
company to adapt messages or respond
to misinformation almost instantaneously
47%
– Targeting of diverse audiences; ability
to actively locate and target key niche
stakeholders who would often be
impossible to reach via the traditional of UK parliamentary staff use
press blogs to research policy issues.
– Adding colour and context to the story;
use of webcasts and video add vibrancy
and visual context to an otherwise
colourless and dry set of results
– Direct targeting of consumers; ability to
converse with customers directly rather
than through third parties
– Increase in online visibility; multiple
online platforms generating tangible
debate about the company improves the
organisation’s search engine ranking
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The integrated use of both
traditional and new media is
essential to managing a crisis.
27 | Digital Communications and Social Media – the challenges facing the PR industry | © Watson Helsby
52%
YouTube
32%
The research showed that over half of For example, The Group found that whilst
FTSE100 organisations are using Facebook, 42% of FTSE100 organisations have a
with Twitter almost as popular at 42%. Twitter account, 11% hadn’t used their
YouTube usage came in at 32% and accounts at all and 14% hadn’t used their
corporate blogs, somewhat surprisingly, account in the last few months. Moreover,
are used by only 19% of organisations. The Group also found that most companies
However the way in which these tools are seem to be using Twitter as a broadcast
being used corporately (rather than for channel, pumping out information but
brand communications) varies widely. showing little interest in using the platform
to engage with stakeholders.
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“You need three key things – a thorough iii) Training and development
understanding of communications, the
ability to relate to people (not computers) Training, or rather the lack of it, was also
and a love for the unknown. A combination identified as a barrier to resourcing digital
which is as rare as hens’ teeth.” communications, particularly in-house.
The lack of robust training and development
ii) Demographics opportunities in digital communications
is seen in large part as a result of the
Whilst some of the luminaries in the digital embryonic stage of the discipline. Despite
space are over 40 years of age, they are the introduction of a number of conferences
the exception to the rule. Many mature PR and training sessions around social media
practitioners are labouring with the new in the past year or two, participants felt that
challenges of digital communications. As there was still a lack of senior level training
one participant noted in embarrassed tones: in the discipline.
“First thing every morning in the office I “… lots of courses telling me how to use
read the newspapers, as does my CEO. Twitter, but not much out there advising
I know I need to start monitoring the how to incorporate digital PR into my
blogs on a regular basis, but I don’t. communications strategy, or how it
A failing I know and it’s something can help with corporate reputation.”
I need to address.”
iv) The recruitment dilemma
Conversely those under 30 years of age have
grown up surrounded by new technology When it comes to sourcing digital talent
and as a result are fully conversant – and there is a marked difference between
comfortable – in the digital age. the methods used by in-house teams
and their consultancy counterparts. In
“It’s a generational thing. Younger people fact, our research uncovered a new form
get it, but most mid-level to senior of recruitment being used by the agency
operators don’t.” sector. Whilst the majority of in-house
organisations use the traditional hiring
“Kids from the ‘80s understand it as they routes (recruitment agencies, executive
have grown up with it, but I don’t want search and direct advertising), an increasing
a 25 year old in front of my client.” number of PR and digital agencies are
bypassing these methods and utilising
However, respondents recognised that these social media networks as the favoured
demographic challenges will gradually recruitment channel. These agencies are
decline in the coming years as today’s young getting around the recruitment challenge
digital natives mature and start taking up by identifying potential employees online –
senior posts in communications. reviewing their blogs, examining their digital
footprints and making contact through
network groups on social media channels.
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Many mature PR practitioners are
labouring with the new challenges
of digital communications.
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8 | Digital expertise
i) Consultancy versus in-house “We’re hiring agencies to start the ball
rolling, but they won’t necessarily be the
It is no surprise that agencies (both ones that continue to manage our digital
generalist and digital) employ the majority offering in the longer term.”
of digital PR professionals at present. Very
few dedicated in-house HDC roles exist These interviewees are undertaking digital
and those that do tend to be at a junior to audits to establish where their organisation
mid-management level. Apart from the fact sits on the digital spectrum and what
that agencies of all types have traditionally resources (people, budgets etc.) they need
provided the expertise and manpower for to fill the gaps. In the interim, they are
the execution of specific market services learning as much as they can from their
activities, the lack of dedicated in-house agencies so that they can exploit that
digital PR specialists can be attributed knowledge to help them establish their
to a number of factors: own senior level digital capability.
–R eluctance to change. In-house “I plan to use an agency for the next 18
communications professionals have, months and suck them dry of information
in general, been slow to integrate digital so that I can bring that knowledge
activities into their function and are now in-house by 2011.”
playing ‘catch up’. Consultancies, on the
other hand, were quick to embrace the ii) The use of specialist digital agencies
discipline, particularly as they saw it as
an additional revenue stream Much debate took place amongst
– Return on investment. Organisations are participants about the value that specialist
struggling to make the business case digital PR agencies and, to a lesser extent,
for digital PR, especially when, in this generalist PR agencies are adding in the
current recession, their communications digital space. As mentioned above, most
headcount and budgets are being cut large organisations are buying in digital
–T he need for in-house expertise. expertise, be it from either specialist digital
Debate continues as to whether digital or the larger PR agencies. This expertise
communications requires dedicated includes online monitoring, to track and
resource. A number of in-house respondents assess online debate and to flag up online
believe that digital PR is not a stand-alone issues on a timely basis. The majority voiced
role and instead should be integrated into concerns that their accounts are not being
every communication team members’ remit. properly serviced and that some agencies
are either ‘blinding them with science’ or
“We wouldn’t have a Head of Broadcast, selling them services that they don’t
why should we have a Head of Digital?” actually need.
As a result of the above, we are yet to reach “We were sold a Bentley when all we really
a point where in-house communications needed to buy was a Ford Escort.”
teams are as advanced as their agency
peers in the digital space. However, this “Digital PR agencies are flash in the
situation is likely to change in the near future. pans and not for the long term – in my
Many in-house respondents stated their experience they don’t have the capability
intention to bring these digital skills in-house, to manage long term engagements.”
either through a dedicated digital resource
or through digital training for their teams.
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Organisational/
team structure
Agency MD
Head of Digital
Editorial Creative
Management Implementation
(content) (look & feel)
(eg. writing for (graphic design, (client liaison, etc.) (placing content across
websites, internal video) social media outlets)
comms and print)
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“Effort has to be sustained. It is more
detrimental to start something and not
to maintain it than not start it at all.”
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– Digital strategist
A clear vision of what the company will
look like in the future. Strong strategic
thinking skills and proven ability to develop
and execute an effective digital strategy
in support of that vision.
– Understanding of technology
An understanding of the underlying
technology behind social media and digital
communications, whilst not essential,
was deemed desirable. Candidates ideally
should have an appreciation of how digital
platforms are built so that they can offer
informed guidance and counsel around
budgets/timeframes etc.
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11 | Remuneration
The size of the sample of those heading – The inconsistency in the size of digital
up digital communications within corporates teams across agencies
was not sufficiently robust to merit – The relative importance (or lack of it)
remuneration analysis. Consequently we attributed to the digital function within
have focused our attention on the base consultancies
salary of those HDCs within the – The wide range of experience and differing
consultancy sector. backgrounds of current HDCs
– The different responsibilities and
As can be seen from the chart on the left, accountabilities.
the range of salaries for HDCs varies widely,
with around £85,000 to £90,000 being the Despite the wide range of salaries, the
average. The highest salary was £160,000 findings do confirm our initial observations,
and the lowest £70,000. The wide spread of namely that because of the dearth of talent
remuneration can be attributed to a number in this area, digital skills are at a premium
of factors: within consultancies. Consequently a
handful of digital specialists at director level
and above earn more than their equivalent
non-digital directors. The combination of
increased demand and a limited pool of
potential candidates mean that salaries will
continue to increase over the medium term.
% of sample
40
39%
35
30
25 26%
20
19%
15
10
10%
5
3% 3%
60–70k 71–80k 81–90k 91–100k 101–120k 121k+
Salary range £
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13 | Digital budgets
The task of establishing budgets and “The [digital] budget is way larger than
therefore making budget comparisons traditional PR. This scares some people as
within digital communications is difficult. they are used to just looking at headcount
Digital budgets within organisations and agency costs.”
are often allocated across a variety of
functions (marketing, customers services, i) D
igital spend as % of overall
IT, communications, HR) as well as within communications budget
different operating structures (group,
regional, local). A company-wide digital Whilst total digital spend within
budget is a distant dream for most organisations is impossible to assess, our
organisations not least because most research shows that expenditure in this
organisations do not yet have a company- area has increased substantially over the
wide digital strategy in place. As a result, past few years. How much HDCs should
digital budget setting is often piecemeal, be allocating to their digital spend as a
allocated to multiple internal stakeholders proportion of the total communications
and generally limited to specific budget was a controversial subject matter
one-off projects. amongst respondents, with suggested
spend ranging from 5% through to 30%.
The amount of time and budget required Some respondents stated that digital spend
of companies introducing digital was now accounting for between 10% and
communications to their organisations can 20% of their total communications budget
be high. New IT systems, website hosting, and that they forecast this increasing
new software, specialist agencies and exponentially over the coming years, to
suppliers, comprehensive metric analysis, around 25% to 50% within five years. By
dedicated staff, training etc., are crucial to way of example one respondent (based in
the successful implementation of digital a large, international organisation) spent
communications, but can be expensive. £100,000 on digital activities in 2007 and
Securing this budget is not helped by the estimates that her 2010 expenditure will
common misconception that social media be around £400,000, an increase of 400%.
and digital PR is cheap. Some companies These figures include digital content and
believe that, because many online tools functional development, ongoing counsel
are free (eg. email, blogging etc.), social and consultancy, SEO, specific online
media is an inexpensive route. Nothing projects and hosting, but exclude
could be further from the truth argued website design.
many HDCs, who cited the high set-up
costs (building the infrastructure) as well
5%–30%
as the extensive investment in time and
people (implementation and ongoing
management of campaigns) as reasons
for digital being a more expensive route current digital spend as
than traditional communications. a proportion of the total
communications budget.
“Contrary to popular opinion, it’s not
cheap. It’s time consuming and ongoing
25%–50%
communications to bloggers, for example,
has to be personalised, relevant and you
have to understand what they want –
that takes time and people, digital spend as a proportion of
and therefore costs far more than
the total communications budget
traditional communications.”
expected within five years.
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£36k–£240k £10k–£24k
approximate annual spend approximate annual spend
by organisations on digital by organisations on online
agency support. metric analysis.
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