Q & A
Orange County marketing executives are holding on to their seats in 2008. It could be a wild ride.
The troubles in the housing and mortgage markets and a softening economy have most public relations and advertising shops watching clients and being cautiously optimistic about business this year.
I asked a few executives to sound off about what they’re projecting. Here’s a look at what they had to share:
What is your 2008 outlook? What are you expecting from clients’ spending?
David Paine, president of PainePR, Irvine:
The outlook for 2008 specific to OC clients is cautious. While we expect our clients to do well in 2008, most are looking to trim costs overall in anticipation of a slowing of the economy.
Melinda Morgan, president of Morgan Marketing & Public Relations LLC, Irvine:
2008 is going to be another year of positive growth for Morgan Marketing & Public Relations. The majority of our clients have increased their 2008 budgets. In addition we landed the national public relations account for Santa Monica-based Fatburger.
Rick Eiserman, North America managing partner of Young & Rubicam Brands Inc., Irvine:
Uncertainty combined with the desire for aggressive growth will put 2008 spending levels flat versus 2007. The focus is increasingly on how to spend the ad dollars more effectively, not on where should we cut.
Hilary Kaye, president of Hilary Kaye Associates Inc., Tustin:
I can sum up my 2008 outlook in two words: cautiously optimistic. So far, I have not seen any signs of a downturn in our business. We have been busy all the way up through the end of year, both with clients wanting to finish specific projects before the year’s end, and others wanting to talk about getting started right away in January. Our projected workload in January is very strong. We are considering hiring an additional staff member or two in the very near future to meet the demand. One trend that emerged in 2007, and will likely continue into 2008, is having a larger number of clients with smaller budgets, rather than the reverse. Budgets do not seem to be growing in size, even as the number of companies seeking outside PR counsel increases.
What percentage increase or decrease are you projecting to see in billings?
Morgan of Morgan Marketing:
I anticipate a 10% to 20% annual increase in our billings.
Paine of Paine PR:
Nationally and locally, despite the challenging economic times, we expect our business to be up 10% as a result of growth in some of the new areas that are our focus this coming year, specifically increased governmental/public education work for the state of California, new media (Internet blogging and online related assignments) and multicultural communication.
Charlie Granville, chief executive of Capita Technologies, Irvine:
Capita is very bullish and is expecting 100% growth for 2008. We are starting the year with our largest backlog of work. Our company has three sources of revenue: e-marketing services where we build Web sites, online and wireless promotions, and more; a new enterprise marketing management product called EM? and making custom software for government and large businesses. Our success comes from having some diversity in revenue sources.
Kaye of Hilary Kaye:
Even though we have not seen a downturn here, we do see warning signs all around us. We can see that many businesses and individuals are hurting. And the mortgage industry meltdown is absolutely rippling through the rest of the business environment here. I keep meeting people who have been laid off, after having spent many prosperous years in the mortgage industry, or related companies. That will have an effect on all of us, even if we haven’t felt it yet. I believe our billings will match or exceed 2007, but ultimately, it may depend on just how badly OC is impacted.
What kinds of changes do you expect to make to stay competitive?
Morgan of Morgan Marketing:
Recession or no recession, our clients are in extremely competitive businesses and they realize the importance public relations plays in their marketing plans. During an economic downturn our clients depend on us more than ever to be strong business partners with them, increasing awareness among their customers, developing community partnerships and boosting team morale. Another pivotal area we are addressing in 2008 is staffing. I am bringing on additional associates with strategic expertise.
Paine of Paine PR:
Our strategy is to continue to diversify our offering, providing a greater blend of integrated communications services, and leveraging our key strengths in segments such as automotive, women’s products and services, B2B technology, consumer electronics and general consumer products.
Granville of Capita:
Although the marketing industry overall is weak, we believe we have some unique offerings that will help us be successful through this slow period. Capita’s success has come from our extensive experience in large project management, our in depth technical skills, and a large knowledge primarily in the criminal justice area, and with case management applications. Criminal justice expertise is in high demand.
Kaye of Hilary Kaye:
We are using a wider range of PR strategies to bring attention to our clients. Certainly use of the Internet,whether through using blogs or social networking sites or even just making companies’ own Web sites more powerful,is critical. We are also planning on zeroing in on outreach vehicles in our clients’ respective industries to help them weather their own economic slowdowns. Targeting will be key to our success, and their success.
