The new PR economy…let’s make a deal

I was recently in a luggage specialty store shopping for a rolling carry-on (one of the greatest inventions of the latter half of the 20th century…should any of us have thought of it first, we’d never be laboring in the PR mineshaft again.) As I asked the store clerk about various brands and sizes, I was struck by his not only giving me this information, but his insistence on disclosing the discounted price for each as well. I inquired as to why; and he said, “no one is paying retail any more, so why chance losing the sale. Better to cut to the chase.”

Indeed. Are we are all looking to play “Let’s Make a Deal” in our daily lives these days, even when it comes to PR?

The evidence is certainly pointing in that direction particularly in light of the fact that money is harder to come by (unless of course you’re a major financial institution) and therefore each dollar must stretch further in spreading your good word. The good news, if there is any, appears to be that the need and desire for PR is staying strong to a degree because of the recession, i.e., PR is often considered a credible promotion tool of lesser cost than advertising. Advertising Age magazine recently stated…“While the recession showed its teeth in December—the U.S. economy shed 577,000 jobs—the public relations industry added 1,200 jobs. Meanwhile, advertising and media companies eliminated 18,700 jobs in December. Ad and media industry job losses total 65,100 since the recession began” according to the publication.

And while PR is demonstrating a resurgence in attractiveness in these tough times, (if not in quality…please refer to my earlier rants on the PR’s wastefulness of the media’s time on Blago, Jessica, et. al.) the industry’s costs of providing it’s services are seeing a downward pressure commiserate with it’s increase in need. In many cases this is absolutely justified and is a natural reaction to years of bloated hourly fees and retainers. But I believe it is more than a natural pushback to traditional PR firm’s charging for their own self-designated importance than their client’s actual needs. This drive for a “deal” when discussing PR compensation is becoming part of the fabric of the recession itself. “Everyone is dealing these days, from auto dealerships and luggage stores to the government itself…so why not PR?”

It’s a valid question and is particularly relevant given the often abstract and obtuse nature of the service our industry provides. Thank goodness that there continue to be enough media left to receive our outreach, and we still seem to be a better “deal” than wasteful advertising. And those of us that have been preaching accountability while being compensated under a “pay-for-performance” structure all along, it’s even smugly gratifying to see clients demanding more “value” for their tightening budgets. But we can’t get too complacent congratulating ourselves with how much better our accountability factor is over those fat hourly fee folks. Value as it’s now being defined in recessionary terms means less cost but with the same service/result.

“Pay-for performance” PR may have to make a few deals of its own to survive.