There's a generally optimistic outlook among the region's public relations and advertising agencies.
After a year in which one merger did not work out as planned (Wallis Tomlinson by Palmer Hargreaves), a few old faces moved from familiar territories and the newest major agency was taken over (Hatch Group by Peter Gummer's Huntleigh), professionals have been assessing the prospects.
Claire Oliver at McCann-Erickson in Solihull, one of the region's largest practitioners, says there's a greater awareness amongst clients. "Clients are becoming increasingly savvy in terms of their expectations for delivery from PR," she says. "There will continue to be much more focus on the commercial contribution that the discipline can bring, as opposed to the feel-good factor that PR sometimes used to have the luxury of hiding behind." She adds that 'best bang for my buck' is likely to continue in the vernacular of many briefs, either formally or informally.
"New business opportunities will continue to be hard-fought, and holding onto existing clients will require more skill - both greater levels of creativity in terms of quantifiable ideas, plus strong client relationships that can stand the test of increasingly fluid in-house departments," she concludes.
At the smaller Quantum PR, managing director Edward Carter says that there are already signs that the better news from stock markets and the improved prospects for economic growth are having a positive effect. He says: "As the corner is turned, budgets will no doubt be relaxed but companies also have the opportunity to make reputation a priority and take a new look at how they spend their resources in this area. "For example, smaller quoted companies could achieve more by recognising that financial and corporate PR can be brought closer together, reaching the various external audiences in a co-ordinated way. "Even for the larger unlisted companies in the West Midlands, there are signs that PR has moved up the board-room agenda as there is a greater realisation of how much corporate reputation impacts profitability. "In 2004, this will provide market opportunities for experienced PR practitioners, who have the capability to operate at a boardroom level. "More significantly, a greater focus on branding and corporate reputation will help the West Midlands economy by boosting the brands and reputation of the region's companies".
One key driver for a new focus on reputation will be the new emphasis on corporate social responsibility (CSR), where new reporting requirements for plcs will mean a greater emphasis on relationships with stakeholders and the community.
Anne Parry, Quantum's deputy managing director, and a member of the Midlands committee of the Institute of Public Relations, said: "Corporate social responsibility is now a 'need to do' rather than a 'nice to do'. "As communication specialists, PR practitioners will play an increasing role advising on promoting and implementing CSR policies."
Boutique agency The PR Shop was started by former in-house PR woman Caroline Boots and is one of the many micro practices which commonly act as coordinating agencies. "I've certainly had a very successful first year," she says. "As an independent, I have been able to keep overheads down to an absolute minimum.
"This has enabled The PR Shop to thrive during the recent slump as I can be more flexible on budget. "However, as companies' marketing budgets become healthier, I expect the competition will become fiercer. In preparation for this, I've taken steps to differentiate myself from competitors in
2004." An honourable mention is the 2003 PRPride awards was a bonus in the first year.
Sarah Hughes left Harrison Cowley to form her own agency and after its first year Giraffe Communications counts Marketing Birmingham amongst its clients.
She says: "By using a flexible resource of consultants, Giraffe Communications is able to provide highly experienced professionals without the overheads and fees of large agencies."
Meriden-based RBH moved from pure advertising work to add a PR offshoot, boosting employment from 70 to 104 and annual billings are now in excess of £40 million.
However, managing director Debra Hepburn is cautious. "It disappoints us that we remain one of a small ever-decreasing clutch of agencies of note," she says.
She feels that the regional vibrancy that existed when we launched in 1995, when Big Communications launched, when Wallis Tomlinson (merged this year with Palmer Hargreaves) were at their peak and Cogent was still a national force seems to be in short supply as we move in to 2004.
"RBH cautiously finds itself up against other out-of-region and, increasingly, London agencies," she says.
"We're producing the kind of work for the kind of clients many London Agencies would give their eye teeth for, and our work for clients like Bullring, Central Trains and Jaguar/Land Rover is testimony to this."
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