The county’s public relations agencies saw a steep drop in business and people in the past 12 months, but they are hoping recent promising signs are an indication of a true turnaround.
The 35 largest public relations agencies in the county saw a 16% decline in local public relations jobs to 339 people in the past year, according to this week’s Business Journal list.
Total local employment,which includes human resources, administrative and other employees,dropped by 17% to 361 people, according to the list, which is ranked by local public relations employees.
The downturn likely was steeper than our list indicates, as there are several Business Journal estimates for companies that declined to provide figures. As a rule, we estimate in line with industry statistics but err on the conservative side.
In all, 11 companies reported declines in local employment. Thirteen said they were flat. Three reported higher employment.
Perhaps in a sign of the times, eight companies,three more than last year,declined to provide numbers and were Business Journal estimates.
A year ago at this time, the public relations agencies on our 2008 list saw a 5% increase in local jobs just as the downturn began to bite.
The agencies provide media relations, crisis control and handle most communications for businesses in all types of industries.
Irvine-based PainePR topped the list again this year with 29 local workers, down by 11 people, or 27.5% from a year earlier.
The firm’s total local employment dropped by 28% to 34.
PainePR likely is the best representation of the trend in the past year for the companies on the list, which is one of the most difficult to produce.
Every year, public relations executives accuse others of inflating or downplaying their figures.
In the past year, PainePR has seen clients drastically cut back spending and marketing budgets,the lifeblood for public relation agencies.
“People use the word contraction, but there was an actual clenching of spending where clients literally took a break and stopped spending,” Chief Executive Daryl McCullough said. “It was across the board for all of our clients and across all of their industries.”
The agency, part of Canada’s Cossette Communication Group Inc., counts Brea’s American Suzuki Motor Corp., Irvine-based FreeCreditReport.com, a unit of Britain’s Experian Group Ltd., and Irvine’s Toshiba America Business Solutions Inc. as clients.
Like PainePR, most agencies reported de-clines in marketing budgets amid the recession.
“The economy has been so pervasive and the general malaise of the economic situation has put a tremendous amount of pressure on the industry,” said Doug Freeman, partner at No. 3 Irvine-based Freeman/McCue Public Rela-tions.
Freeman/McCue lost one public relations employee in the past year for a total of 16.
No. 23 Mission Viejo-based Maples Communications Inc. saw the biggest percentage decline on the list,it reported a 63% drop in local public relations workers to seven.
Last year, Maples Communications was No. 3 on the list.
The employment drop was due to the loss of an undisclosed account and the economy, the agency said.
No. 15 Costa Mesa-based ASG Renaissance also saw a big percentage drop, slipping 53% in local public relations workers to 8.
The firm, which does events and public relations for the automotive industry, saw the majority of its Land Rover account move to New Jersey.
In June 2008, automaker Jaguar Land Rover North America, now is part of India’s Tata Motors Ltd., said it was moving its U.S. headquarters from Irvine to New Jersey.
Social Media Boost
Despite the slashed marketing budgets and dropped accounts, many agencies say a new emphasis on social media campaigns, which often are handled by public relations firms instead of advertising agencies, helped make what could have been a disastrous year merely a painful one.
While interest in social media has been growing for a while, the down economy spurred many clients to take the plunge because of the relatively low costs involved.
“Social media has been the saving grace in budgets cuts this year,” PainePR’s McCullough said. “Clients were seeing they could get a lot of results for a fraction of the investment.”
No. 5 Tustin-based WunderMarx Inc., No. 5 Tustin-based Echo Media Group, Tustin’s No. 11 HKA Inc. Public Relations and No. 23 Morgan Marketing and Public Relations LLC of Irvine also have clients stepping up interest in social media.
“Social media interest grew thanks to its low barrier to entry,” said Cara Good, president of No. 5 WunderMarx. “Our clients are seeing that it is a way to enhance their marketing without adding a lot of dollars.”
The social media push and other promising signs have some agency owners predicting a turnaround is in the offing.
“We’re feeling the pickup in business as recently as the last several months,” PainePR’s McCullough said. “I’m sensing the industry has turned a corner after a very slow nine months.”
No. 8 Costa Mesa-based Idea Hall also is feeling the stirrings of a rebirth of the industry.
“It feels busier than ever,not necessarily revenue generating busyness, but (there have been) lots of meetings and proposals with clients interested in talking, which for the last year wasn’t the case,” said Rebecca Hall, president.
Ideal Hall reported losing 35% of its local public relations employees,or seven,for a total of 13.
