Our Agencies of the Year competition might be best known for the baubles it bestows at the annual SABRE Awards ceremonies, but I often view the process as an invaluable means of taking the current temperature of the various regional PR industries that we cover.
It is qualitative research, no doubt. Yet, the findings can often be counter-intuitive, predicting a downturn before it happens — for example — or illuminating new opportunities and avenues for PR agency investment. A focus group of sorts, but a more focused one than most, given the profile of participants — leaders of some of the region’s top PR consultancies.
In particular, one of the questions on the Agency of the Year form asks entrants for their thoughts on the major trends they are seeing in their market. This year, I have crunched the responses from Asia-Pacific agencies to determine the most popular and pressing trends, supplementing them with observations from the many agency presentations and conversations that help us build a compelling picture of PR agency progress in a markedly volatile environment.
In pure statistical terms, here’s how various trends fared in terms of popularity. AI is far and away the most cited trend by PR agency respondents, alongside broader digital and data-driven transformation. Media, influence and storytelling trends are some distance behind, while geopolitical/government trends and issues involving generational challenge and talent garner less support.
So, let’s explore each trend in further detail, while also noting that they will form the core of the PRovoke Media Asia-Pacific Summit, taking place in Singapore on 19 September.
1. The AI era is taking shape
Unsurprisingly, AI is the trend cited most often by Asia-Pacific agencies, although observations vary widely. One firm notes that that “the emergence of generative AI will have a similar effect on communications as the introduction of robots in auto manufacturing,” by automating functional-level writing and disrupting existing agency models. Another believes this automation will “free up agency capacity for strategic analysis”, potentially elevating the comms role.
But there are concerns too. A tech agency believes that most organizations “are not changing behaviour within organizations to fully benefit from the technology,” calling for more effective communications. Others cite questions over ethics and accuracy, along with the impact on pricing, copyright protection, misinformation and — as one agency head puts it ‚ “the death of original thought.”
Questions about skills and job security are also brought up by more than one participant, along with the potential impact on older agency employees. “We have already seen an impact on our content revenue, as clients take basic writing back in-house with their teams using such tools to create volume,” says a Singapore-based agency head.
“While many remain hesitant about the integration of AI, a young and dynamic workforce of Gen Z dominating the adult population across SEA means we’ll continue to see more innovation and integration to drive positive change in the evolution of agency services,” adds a Southeast Asia-focused PR firm.
Even so, the transformative potential of AI is largely viewed in positive terms, particularly when it comes to its impact on customer/behavioural insights, data analytics, measurement and sentiment/trend analysis. “The synergy between AI and efficiency is undeniable,” says one Japanese PR firm.
Accordingly, a divergence between upstream and downstream uses of AI emerges, with the former focusing on insights and strategy, and the latter positioned around content and distribution. While that suggests an opportunity for automated, AI-driven agencies at the bottom end of the market, one participant believes “a very specialised, bespoke product that harnesses AI insights and integrates them with people’s expertise, relationships and creativity can also thrive and command a premium price.”
And AI may well impact other areas, as one Indian agency head points out: “It is an all-out employee market but we suspect that the situation may change dramatically in the next six months due to impact of ChatGPT and other AI tools to boost productivity.”
Ultimately, most believe that agencies who do not take AI seriously run the risk of becoming obsolete. Specifically, they must be able to consistently prove their value in an increasingly automated world.
2. The changing nature of influence
Changes in the media and influence landscape are another thing that appear to be keeping Asia-Pacific agency heads awake at night. Along with those interminable US business calls, of course.
The rise of influencers is perhaps the most notable driver among many in this category, as micro/niche influencers emerge and KOLs continue to reshape ecommerce spending in China. Indeed the popularity of influencers as an effective paid media channel caused several agency leaders to note that they often find themselves competing with media agencies for these budgets, resulting in a level of commoditisation, to say nothing of ‘influencer fatigue’ and the ‘de-influencer’ trend.
“Independent content creators and influencers are becoming pivotal in brand storytelling and consumer engagement,” observes an Indian agency head. “Tapping into the creator economy, brands are leveraging diverse voices and innovative formats to reach wider audiences and foster deeper connections. However, alongside the benefits of the creator economy, the rise of online trolling and de-influencers poses significant threats to brand reputation.”
The continued contraction in media channels across many Asian markets means agencies are having to become more adept at owned media than ever before, with brands stepping up deployment of their own publishing models. At the same time, the proliferation of digital media and short form content channels are reshaping traditional modes of influence.
And while many note that earned media is resurgent — with PR firms often called on to lead social and influence-first campaigns — paid media remains important, according to a number of firms, whether in terms of influencers, trade media, SEO or social media. For some, this is the opportunity that the industry has been building towards.
“This creates a big opportunity (as we have seen at the recent Cannes) for PR agencies and practitioners to lead the way in conceiving and executing on multi-channel, multi-layered campaigns — incorporating every modern marketing element from influencer to earned, social media, advertising, and activations — and change the economics of the industry,” notes one MNC agency head.
Meanwhile, now forms of influence cannot be overlooked — with many firms pointing to rising returns from executive visibility and B2B initiatives. “The ‘celebritization’ of founders, CEOs and senior executives, who are now taking the spotlight more than ever as company image spokespersons,” says an agency head in China. “This trend provides new opportunities, as well as new challenges for executive profiling.”
“There is increasing scrutiny on CXOs and organizational leaders to demonstrate transparency, accountability, and visionary leadership,” adds an India agency leader. “Effective executive communication and crisis management are essential for maintaining trust and credibility with both internal and external audiences. Stakeholders will continue to expect leaders to articulate clear visions and purpose-driven strategies, reinforcing their roles as responsible and forward-thinking stewards of their organizations.”
3. No retreat on purpose
While there has been a noticeable retreat from an overt focus on corporate purpose in Western markets, the backlash from anti-woke ideologues has not — thankfully — travelled to this part of the world. Take this response, for example, from one of India’s fastest-growing PR firms: “Despite backlash in the US and other Western markets, the Indian arms of large MNCs are under immense pressure to showcase purpose related work and are struggling to find agency partners who can scale to the size of their ambitions and requirements. The work requires strategic design of programs, stakeholder engagement and building properties that go way beyond media and communications related work. As an industry, we are ill-equipped to rise to this demand.”
In Japan, meanwhile, agencies report accelerated development, turning the country into the world’s third largest ESG market. “While institutional investors have primarily been the key players in the ESG market, individual investors are increasingly turning their attention to ESG investments,” said a Japanese PR firm. “Consequently, corporate managers are focusing more on ESG management, leading to more active communication activities related to it.”
If anything, corporate purpose is becoming more important in Asia-Pacific. “No matter how society, the economy, or technology evolve, purpose remains the gold standard for brands,” adds another Indian agency head. “In a disrupted world, consumers want brands to help ease their stress. Communications practitioners must keep brands focused on environmental priorities, such as reducing their carbon footprint and achieving net-zero goals, while also promoting diversity and inclusion.”
Even so, many note that trust in brands is diminishing, creating a climate of scepticism that is often enhanced by, for example, ill-judged sustainability efforts that amount to little more than greenwashing. “Transparency is crucial. Consumers demand proof of brands’ commitment to making the world better but are skeptical about their honesty. To counter this, brands should communicate openly, sharing data, employee testimonials, and admissions of shortcomings.”
Agencies can expect increasing scrutiny of their clients progress towards sustainability targets. “This year demands that communicators move beyond aspirational narratives to deliver evidence-based strategies that drive tangible impact and build trust,” says another agency head when describing corporate ESG programmes.
Neither can they ignore the impact that DEI issues, specifically, have on client’s employer brands, tying in with the next trend on this list. “Companies are increasingly focusing on employee advocacy programs and diversity and inclusion initiatives,” said an MNC agency head. “By empowering employees to act as brand ambassadors and sharing content that highlights a positive workplace culture, organizations are enhancing their employer brand. More recently, showcasing efforts towards diversity, equity, and inclusion (DEI) has been crucial in attracting diverse talent and building a positive reputation.”
For one Japanese agency head, the trend heralds a broader rethink of PR’s role in society. “PR thinking and perspectives can be seen as ways to generate empathy,” she said. As societal awareness of sustainability grows, it has started to significantly influence consumer behavior, marking an era where a company’s values and ethos are regarded as highly as its products and services. The ability of PR to promote environmentally conscious practices, a commitment to sustainability, inclusivity, and empathy-driven communication becomes essential for companies to thrive.”
4. Performing under pressure
Underpinning all of these trends is a difficult economic environment, which is reshaping the perennial challenges agencies face in terms of demonstrating their value amid consolidation and integration. The “long arm of procurement” is increasingly being felt in Asian PR assignments, and one independent agency head notes that “budgets have not increased in many years — clients expect more for less. Sadly, all other costs have increased, so this puts a huge strain on margin.”
This kind of short-termism is hardly anything new, especially in Asia. But the implications for brands are perhaps better understood than they were a decade ago, in terms of both corporate reputation and brand building.
“While many organisations had to make tough decisions last year with layoffs and budget cutting, those that stuck to their marketing guns reaped the rewards of some of the best PR ever done in terms of brand awareness and recall,” notes an Australian agency. “That just goes to show that marketing ought not to find itself top of the list of budget cuts, and instead be seen as extremely valuable during difficult times.”
As ever with Asia, a localised lens is required. In Greater China, a prolonged PR slowdown continues unabated — with budgets remaining under pressure. This was a recurring theme in all of my conversations with China PR agency heads, and will be examined in further detail in a forthcoming feature. “The weak economy is leading to budget constraints across Greater China, with clients asking for reduced budgets for existing scopes,” observes an Greater China agency. “This puts pressure on agencies and increases competition in the sector.”
In Hong Kong — once the hub for the regional PR industry — middle-class and expatriate emigration, coupled with a mediocre post-Covid tourism rebound is forcing firms to pivot in different directions. Several firms report better returns from local conglomerates, along with a focus on “performance-driven activations.”
By contrast, Japan and India have emerged as more positive growth stories. In the former, “an escape from deflation” evidenced by a 30-year high in wage increases is helping to bring a measure of optimism back to PR firms, supported by — for example — government initiatives to boost individual investors.
And, in India, a relatively vibrant economy is increasing “the need for credibility, trust and accountability for corporates and governments,” as one agency head puts it. “This in turn is driving growth for the PR industry in India. Regional markets are expanding thanks to infrastructure development, technological advancements, and rising consumer aspirations — this has had a positive impact on our industry.”
5. Geo(politics) & globalisation
It may raise a few eyebrows that geopolitics ranks garners as little support as it does as a relevant trend, given the amount of column inches attracted by the rising tensions involving China, the US and several other nations. If nothing else, the slowdown in MNC spending in China can be at least partly attributed to elevated caution amid an increasingly inhospitable environment.
But it might also be that geopolitical issues, having gripped the region since well before the Covid-19 pandemic, are simply viewed these days as business as usual. Or, a little more pessimistically, that these issues are not necessarily driving the kind of agency demand that some might have expected and may instead be hampering expansion.
“With geo-political tensions on the rise, clients will need senior counsel, subject-matter experts, offering deep sector expertise and strategic counselling – even if they don’t know this yet,” notes one independent agency network.
“Geopolitics raises communication challenges with clients showing a marked caution in their communications approaches,” adds another Hong Kong agency head.
Even so, geopolitics and government secured a 20% share of voice amid key trends, thanks to a compelling mix of factors. “Policy changes, societal pressures and geopolitical shifts will impact the way our clients do business and communicate,” said a Singapore-based agency chief. “Increasingly, practitioners will need to be savvy about advising clients on how to navigate policies over politics for their business and storytelling to thrive in turbulent and uncertain times.”
For an industry that has relied heavily on globalising forces to hasten its advance across the Asia-Pacific region, the implications of a more insular mindset should be carefully monitored. In China, for example, an agency head points to “growing nationalism, class conflict and the resulting pressure on all enterprises, including multinational corporations and private companies,” calling for a heightened focus on “shared interests and commonalities”.
That goes for agencies too, in an era when a number of the big multinational PR networks appear to be getting smaller in this region. “Traditionally, agencies have serviced multi-market accounts using the hub-and-spoke model where one office (typically the US or UK) dictates direction, and other markets execute,” says a global tech firm. “It’s a logical, cost-effective model, and was once enough for companies to get global coverage. But those days are long gone. The more that APAC grows and innovates, the more fragmented and individualistic its markets become. The more these markets demand to be recognised and to be catered to.
“With this in mind, there is a shift in how global programmes are operating to allow for greater local market autonomy and contributions — for example, follow-the-sun programmes where cross-border teams collaborate to deliver continuous servicing. Or rotating lead markets on projects to allow for creative ideation to emerge from all four corners of the world. We believe there is much more of this to come.”
“We also believe that despite political overtures to the contrary, we continue to live in a more borderless society than ever,” counters another independent PR agency. “If you’re not truly global in your approach to client work and talent, you will stagnate.”
Neither should we focus all of our attention on the geographic component of the political equation. PR firms hardly need to be reminded that all politics is local, with domestic concerns often attracting more attention than regional issues. In India, for example, more than one participant pointed to the emergence of the Modi administration as a key stakeholder, given its focus on mega projects.
6. New generation, new expectations
No list of this kind could be complete without considering the generational change that continues to vex industry leaders. Most of these concerns were framed in terms of their impact on agency talent, which will be explored in further detail when we reveal more findings from the Best Agencies to Work For research.
Regardless, the anecdotal comments from the Agencies of Year study paint a picture of an agency workplace in flux, even if a more difficult economic environment has somewhat eased the war for talent. “By 2025, Gen Z is expected to make up 27% of the working population,” notes an MNC agency. “Winning the war for young talent — with new ways to reach and motivate them effectively — will be more critical than ever in a people business like ours.”
“While a tough year has reduced some of the excessive growth in salary expectations, the long-term trend of communications becoming a supply-led business continues unabated,” adds an independent agency. “Agencies need to both sharpen their employee value propositions and back them up with real action. At the same time, we need to manage ever-increasing expectations of employees to work on their terms while supporting both career growth and mental wellbeing. It’s never been harder – or more important – to be an excellent employer.”
Those expectations are not only bringing agency cultures into sharper focus, but are causing some agencies to rethink “the rules of operations and ways of working in the industry.”
“There is no room for agencies to expect young talent to pay their dues or wait their turn,” says a Southeast Asian PR firm. “The Gen Z workforce expect immediate credit and recognition, alongside a working environment that offers balance and prioritizes its people over its clients.”
As usual, that might be easier said than done, given the nature of public relations work in fast-moving markets. One Indian agency head describes the “relentless” nature of the work as a serious concern, in “a country in a rush.”
“Bold ambition, powered more by intent and ambition and lacking on infrastructure and a strong foundation on which we can build in a sustainable way. The result is burn-out, promotion of hustle culture and survival of the fittest. While the PRCAI is making positive steps in standardising basic industry protocols between clients and agencies, there is much to be done to make this profession a career of choice rather than chance.”
These issues will form the core of the PRovoke Media Asia-Pacific Summit, taking place in Singapore on 19 September. Book your place now.
