PRWeek Global Thinktank | Americas

VitalStatistics

Population: 310,062,000
Monetary unit: dollar (U.S.$)
Capital city: Washington, D.C
Major languages: English
Major religions: Christian 83.3%, of which independent Christian 23.2%, Roman Catholic 19.6%, Protestant (including Anglican) 18.9%, unaffiliated Christian 16.5%, Orthodox 1.8%, other Christian (primarily Mormon and Jehovah’s Witness) 3.3%; Jewish 1.9%; Muslim 1.6%; Buddhist 0.9%; New Religionists 0.5%; Hindu 0.4%; traditional beliefs 0.4%; Baha)i 0.3%; Sikh 0.1%; nonreligious 9.8%; atheist 0.5%; other 0.3%
Ethnic composition: non-Hispanic white 65.6%; Hispanic 15.4%; non-Hispanic black 12.8%; Asian and Pacific Islander 4.6%; American Indian and Eskimo 1.0%; other 0.6%
Age breakdown: under 15, 20.2%; 15–29, 21.1%; 30–44, 20.0%; 45–59, 20.7%; 60–74, 11.9%; 75–84, 4.3%; 85 and over, 1.8%
Life expectancy: male 75.1 years, of which white male 75.7 years, black male 73.2 years; female 81.9 years, of which white female 82.4 years, black female 79.2 years
Education: Percentage of population age 25 and over having: unknown/primary and incomplete secondary 13.4%; secondary 31.2%; some postsecondary 26.0%; 4-year higher degree 19.1%; advanced degree 10.3%
Urban/Rural split: urban 82.0%; rural 18.0%.
Income per household (USD): -
Broadband internet users (%): -

Source: Encyclopedia Britannica

Introduction

PR should be big in the US. Aside from the obvious fact of the largest economy in the world with more than 300 million consumers and 28 million businesses, as well as one of the largest and most news-hungry media industries in the world, there is the added advantage that a free press is enshrined in the First Amendment to the US Constitution. Indeed, the US is widely acknowledged as the birthplace of PR.

In recent years crises of corporate reputation have further added to the industry’s importance. “The ongoing issue of diminished public respect for and trust in government and business has had an effect,” says Rosanna Fiske, chair and ceo of the Public Relations Society of America. “Ever since the BP oil spill last year, and all the crises in the financial sector, companies have been highly sensitive to how they appear in the public’s mind.”

So, it should come as little surprise that, while the economy as a whole has taken a battering in the past three years, the PR industry continues to grow. The US economy shrank by around 4% in 2008 and by nearly 1% in 2009, then grew by around 3% in 2010, before slipping back in the first half of 2011 to minimal growth. Yet, Kathy Cripps, President at the Council of US PR Firms estimates that the US PR industry grew by between 7 and 10% in 2010.

Fiske adds that it looks positive for 2011 too. “We are not seeing as strong a dip in US spending on PR services as the global advertising industry is experiencing at the moment,” she reports. “As of early this year, the US PR industry was still projected to grow around 5-6%, to around US$5 billion annually. This is on track with the recent estimate by Veronis Suhler Stevenson that PR expenditures in the US will hit US$8 billion by 2013.”

Despite this, Mike Sprouse, Chief Marketing Officer at Epic Media Group & Epic Marketplace believes that PR continues to struggle for budget share. “PR still faces challenges in securing greater chunks of marketing budgets,” he says. “It has improved, largely because of online and social media which is more quantifiable, but there is still a way for the industry to go.”

Media

Like the country’s government, the American media is relatively decentralised. So, aside from the major news networks - ABC, NBC, CBS and Fox - and major newspapers like USA Today, the New York Times and the Wall Street Journal, each campaign targets different media based on its location. The LA Times is important for celebrities and Fortune and Business Week are two very important business titles, but by and large campaigns have a state, or regional, focus.

With 245m Americans online and a penetration rate of nearly 80%, social media is fast transforming the PR industry. Fiske estimates that brands are allocating 10 to 30% of their budgets to this area, and predicts that within five years PR professionals may be spending more time on social media than on traditional services. Sprouse at Epic Media Group agrees. “I believe the most significant development in PR recently has been the rise and ubiquity of social media,” he says.

Major Brands

The US contains most of the world’s bellwether brands, but those that stand out for their PR work are Coca-Cola, Apple and Starbucks. Coca-Cola manages to connect the history of the company to the modern needs of its customers. Apple managed to counter the rather brusque

communications style of inspirational leader Steve Jobs with an aura of open communication in its stores and it has produced remarkably high customer satisfaction. And Starbucks is famous for its reliance on, and astute use of, PR.

Agencies

According to the PRWeek (U.S.) 2011 Agency Business Report (http://www.prweekus.com/2011-agency-business-report/section/2161/) there are 38 PR firms in the US with annual revenues over $10 million. Many of these are the global groups such as Edelman, Waggener Edstrom and MWW Group.

However there are also numerous smaller agencies that are leading the industry in important ways. Airfoil Public Relations has established itself as a leading technology PR firm. Schwartz

Communications, which was just bought by MSL, is well established as a leading firm in the Northeast and for tech companies in Silicon Valley.

The US is one of the few markets where no one firm – or even a small group of firms – dominates. With around 220,000 public relations professionals the US PR industry has a depth and breadth of talent that remains the envy of the world.

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