A May 15 press release notes that: “The majority of Austria’s PR agencies expect strong growth in fee revenues during 2008, with more than 80% of agencies saying they were (very) satisfied with the first quarter. Austrian PR agencies see worsening economic conditions, increasing pressure by clients to cut costs and the image of PR as current issues. Public tenders are still seen as unpopular and are bid for by only a few agencies in the industry.” These are the results of the annual PR Monitor survey conducted by the PRVA and PR Quality Austria (PRQA), together with the IGF (Institut für Grundlagenforschung) research institute.
While revenues are expected by a majority of survey participants to increase throughout 2008, forecasts are more conservative than in 2007 with expectations apparently dampened by a gloomy outlook for the world economy. It is also true that larger Austrian agencies are more satisfied with the year’s results to date and more optimistic about the future when compared with their smaller competitors.
The most pressing challenges cited by Austrian firms, beyond the macro-economic picture, are: client-side cost pressure, the image of public relations as a discipline, dumping by competitors, and a lack of qualified PR professionals in the market. Peter Hörschinger, President of the PRVA umbrella association notes that: “Despite the fact PR budgets are growing, competition is becoming more intense due to the large number of newly established agencies. It remains to be seen how long the market can hold out….”
Given this competitive environment, new business is right at the top of the agenda of Austria’s public relations firms. However, the survey shows that public tenders are of no real interest to the majority. The most important reasons cited for not bidding were “high costs” (52%) in relation to “low success rates” (40%). Smaller agencies said they also felt they had slim chances of success (37%), while about one third of those surveyed suggested that tenders were “tailored to specific agencies” and did not submit bids for that reason.
For further information about PR Monitor research, contact Dr. Peter Hörschinger, President PRVA Agency Group (
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) or Andrea Schneider, Managing Director PR Quality Austria (
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