ASSOCHAM yesterday released a report on the Indian PR industry, which came as a bit of a surprise. I though they aptly called it a ‘random’ survey. It came out of nowhere.

On one hand, this report is a positive development with industry associations now starting to conduct studies on the PR industry. PR researchers have been yearning for a PR industry report and this seemed like one that authenticated a lot of trends and issues that we in the industry are witnessing and discussing about.

And then before I completed my smile, a conspicuous figure in the report attracted my attention. ASSOCHAM has boldly put the size of the Indian PR industry at USD 3 bn currently. While I would have loved to believe this figure and bask in the glory of being part of a fast growing industry, I have my doubts. Are we really that big? A USD 3bn means around INR 12,000 crores. And that is a huge amount.

From the not-so-perfect finger-counting that we do usually, the PR consultancy business in India is supposed to be around INR 150-200 crores only. We have around half a dozen ‘big’ PR agencies that rope in the majority, read 70-80%, of the revenues for the industry. Each can have a revenue of around INR 12-15 crores with the highest going to around INR 20 crores from pure PR fee (not calculating the expenses). Even if you calculate the expenses, the total revenue of the biggest PR firm is supposed around INR 40 crores. The rest perhaps bring in a just as much as one or two combined of these ‘big’ agencies.

Let’s do some more guess work. What could be the total PR spend by the organised corporate say in the top 1000 companies in India through one or the other agency or directly? Can we quote a figure of around INR 500 crores. Add around INR 125 crores from the PR spends by the unorganised sector in mini cities. Would even all these combined reach that ASSOCHAM figure of USD 3 bn?

Or is there something else that I am not aware of in the industry, I would definitely love an explanation into that figure.

Other key findings from the report:

1. Growing opportunity cost in PR industry is one reason for constant job shuffles

2. Over 90% PR professionals come in at the entry level with enthusiasm and passion for their work but within a year shift to greener pastures

3. Brand building and image management are emerging as key areas where corporates seek services of PR firms to enhance visibility and promote services/ products/ top management

4. Majority of PR professionals confirmed that during the economic boom, huge competition emerged for brand building as a result of which PR agencies are in demand and quoting high market driven prices for services

5. PR sector registered growth of 22-25% in last few years which further went up to 32% in 2007 and by 2010, size of PR industry is expected to grow to more than $6 billion

6. Indian PR industry comprises 1200-1500 agencies with manpower strength of 30,000 to 40,000

7. In terms of vertical markets, healthcare is the fastest-growing sector; however, public sector, environment and corporate social responsibility are emerging as growth areas for PR

8. Overriding concern of industry is skills shortage; almost all agencies are hiring, a trend that is indicative of growth, and some are looking outside the PR industry to bring in new skills

9. Although there are thousands of small agencies and individual consultants serving very local markets, larger agencies are forging partnerships across the globe to meet demand from clients

10. Retainer fee on an average can be anywhere between Rs2.5 to Rs 5 lakh

11. Reasons for high attrition could be the temptation of moving to the higher pay master; leadership crisis within the industry; inability of PR outfits to meet evolving needs of companies/ clients and to understand the dynamics of the present-day market place

Read media reports on the study here: The Hindu, Mint, IndiaInfoline