The State of the Valley's PR Firms: Winners and Losers

As I provide a tease prior to this blog's grand opening this Friday, there was an excellent, well-written article in a recent edition of the R-J (via the Las Vegas Business Press) which discusses the state of the Valley's PR firms, in terms of how they are doing and how they are holding up in this economy.

Of particular interest is that fact that many mom-and-pop PR shops have sprouted and multiplied as of late.

R-J:

The news is far from all bad for small and sole-proprietor PR firms; most say they expect to survive the recession. Finding a niche is the secret to success for some. Tami Belt formed Blue Cube Marketing Solutions after working in-house for St. Rose Dominican Hospital and the Las Vegas Review-Journal. She has since taken on, and retained, big clients such as 7-Eleven.

The convenience-store chain was referred to her years ago by The Firm Public Relations and Marketing owner Solveig Thorsrud, Belt recalled.

"It's really cool because all the PR firms help each other. It is more like friends," Belt said.

Even as those referrals may be getting harder to come by, professionals who can hang onto the clients they have -- and specialize -- seem to have an edge.

With Belt, that specialty is in philanthropy.

"I do the charities," as she puts it, with a slight laugh. "I try to show companies how to get involved with the community, and showcase a plan."

I was also struck by this quote:

The number of mom-and-pop PR shops continues to grow -- at least by some accounts. No formal year-over-year figures were available. The Public Relations Society of America's local chapter keeps track of its members, but that doesn't account for nonmembers.

Las Vegas is home to 14 sole proprietor or small PR agencies and 15 larger firms. "Small" in this case is defined by PRSA as three people or fewer, local PRSA President Diane Gibes said. Individual membership is 135.

She sees signs of hope and reason for caution in her industry.

"I did see one of our members get a job recently," Gibes said. "And I saw one person go out of market to get a job."

Public relations is downsizing locally, much like practically any other industry, Gibes added.

Sarah Procopio knows firsthand about consolidation. She had to cut the staff of her 4-year-old True Marketing firm almost in half a year ago, after the recession first hit. Going from 12 to six employees made her keenly aware of the industry's current fragility.

"It's challenging, but we are hanging in there," she said.

Still, True Marketing's sales are down about 40 percent from mid-September last year.

I think finding a served niche, along with social media marketing will be the ultimate key as to which firm survives and thrives in this economy, and which firm tanks. Of course, none of us in this business wants anyone to tank. 

E.C. :)