Clients' redoubled expectations for value-added results in these economically-pressured times have put the spotlight on niche, local agencies. PR investment remains reduced, but that's not to say that companies aren't spending.
They're focused and selective in their activities and are often unable to make long term or large-scale commitments.
This trend is driving revenue at boutique agencies. An agency with US$500,000 or less a year in professional fees will find an additional project of $50,000 significant, and will commit senior management and consultant attention. At a larger firm, such an assignment might barely appear on the radar screen. For most multinational companies it is still more suitable to work with international networks.
For some executives at major companies, as well as local enterprises, however, going the specialist agency route can be worth the additional effort that might be needed to justify their choice to management.
Here in Singapore, a number of small agencies are thriving. But they're not all following the same route. Some, such as one-woman outfit, Vital Communications are specialising in particular industries. Others such as Impressions, whose clients are from a diverse range of industries, see themselves as specialists in communication.
At the end of the day, size truly does not matter. The root causes of client satisfaction are grounded in more qualitative distinctions:
- Does the agency have specialist knowledge required by clients?
- Does the account team understand the client's business as well as PR?
- Do the fees represent value for money?
- Could a freelancer produce the same result as a corporation?
- Does the firm have the bandwidth to handle the assignment?
Will boutique agencies pose a threat to the global networks' continuing domination of the Asian PR scene? Probably not, as by their nature they lack the reach and scale of their larger counterparts. As for Upstream Asia, we're in the middle of the PR "Grand Canyon" and challenged by the current trend to try harder for clients.
Healthy competition across the divide among large, medium and small keeps everyone on their toes, and will keep the whole industry nimble and client focused.