Commenting on the outlook for the PR industry in 2010, Gay Collins, Chief Executive Officer at Penrose Financial, said:

"2010 will be a year of belt tightening and is unlikely to herald the return of pre-credit crunch fee levels. Oh for the days when PR agencies charged appropriately for services rendered! Though glimmers of growth may appear next year, the PR industry's culture of accepting over-servicing as standard will continue in the difficult market climate, as budgets remain under scrutiny.

"Although fewer PR agencies closed or merged in 2009 than we expected, consolidation within the industry may gain pace in 2010. International capabilities will remain important, though the demand for specialist knowledge and local expertise will persist. Opportunities for new business will present themselves in 2010, but the climate will remain competitive amongst agencies, with clients increasingly likely to review their current provider.

The following three key developments will shape the PR industry in 2010:

1.    The importance of providing value for money will remain paramount, as clients and prospects put the spotlight on fees. The economic climate will remain tough, causing agencies to undercut each other. Agencies will be called upon more than ever to prove how they add value to their clients.

2.    Competition for journalists' airtime will remain fierce. The techniques through which PRs communicate with journalists will perpetuate further in 2010, with Twitter, Facebook, LinkedIn and other social media becoming increasingly mainstream. Face time will remain important for fostering relationships, but increasingly hard to come by. PRs will have to ensure that their limited airtime with journalists is value-added. They will also have to prove their understanding of the client, spot the angle and communicate it quickly to the journalist in a compelling manner. Differentiating your client's story from the mass of information bombarding a journalist every day will be essential.

3.    2010 will bring further contraction in the media, with fewer journalists on the ground, covering more beats. Pressure within editorial teams will increase: journalists will be expected to cover more, while developing multiple areas of specialist expertise. Not only will the journalist's beat expand, but he will also be required to write for several outlets: web, print, blog and Twitter.

"PRs will have to work even harder in 2010—to win new business, retain current clients and successfully pitch stories to journalists. Competition between agencies will remain fierce and contraction within the industry may take place, with the strongest players faring best."

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