In 2007-2008 – rapid developmentPR market (budgets for PR firms + internal departments): 43% growth from $1,75 bn to $2,5 bnActive use of outsourcing (38% of communications is done by PR agencies)Western corporations working in Russia outsource up to 90%

28% decrease of PR Market

Unemployment :over the last 3 months 600 PR-managers in Moscow were fired; 6 large PR firms closed

Over-saturated market (in 2008 Moscow’s recruiting firms got 3000 resumes of young PR-people)

BUT deficit in the market of HIGHLY-qualified professionals

Turnover of PR firms – $1 bn (compared to US PR firms - $4 bn)

3rd in the world in terms of speed of PR services development (after Turkey and India)

2009 – decrease of PR services market (down to $700 mln)

“Communication kits”

Launch Pro: communications support of a new product launch

Compass Pro: support of entering the new market

Fame&Familiar: brand positioning and recognition

Client in love: communications to increase the loyalty of clients

Turnover+experience+professionalismI.Fleishman-Hillard Vanguard II. Pro-Vision Communications III.R&I Group IV.Agency НЬЮТОН.PR &

COMMUNICATIONSV.“Michailov and partners"

Adobe Systems , Coca-Cola, Danone, Procter and Gamble, UNICEF, Singapore Airlines

Festival of Japanese Culture

Corporate culture (mission, values, history, traditions)

Employee Relations

Media relations

Investor relations (full info on the website, transparency)

Social responsibility (sponsorship and charity; support of

social projects; environment projects)

IABC Russia

RASO

• Silver Archer (since 1997) Best project of 2008: Motivation of blood

donorship (Healthcare Ministry of the Russian Federation)

• Chrystal Orange (students)

• White Wing (regional - Ural)

• Pr-“PROBA” (regional – St. Petersburg)

Elena Vasiltzova, IABC Russia director

Olesya Gorbunova, independent consultant

Alexey Glazyrin, “Newton” director and RASO President

Challenge: youth of the profession. “ When young professionals come to work, they meet ‘old school’ directors of communications departments without any relevant education, who don’t want to change or adapt any new practices”

Need to prove “the right to exist” : lack of understanding by management, technician role, low compensations

Low ethical standards :non-market mechanisms (bribing, paid placement of info in the media)

Success of business PR: corporations have money for internal PR department/PR services. Interested in all aspects of PR (especially customer and investor relations)

Controversial Government PR: “The traditional western lobbying mechanism doesn’t work. You cannot really influence the government’s decisions unless you know “the right people.” If you have friends in government, it’s better.”

Propaganda Model still employed. “The government at all levels tries to show that it is more open and its actions are more transparent. But this openness is superficial – the government still controls its messages and gives no chance to two-way communication”

Weak non-profit organizations PR

Peculiarities of Russian PR

Strengths emerging from weaknesses: unstable and unpredictable market makes practitioners think quickly and creatively.

“Creativity is the true virtue of Russian communications. PR people have the talent to come up with unconventional decisions”

Messages emotional, appealing “to the soul rather than to the brain” and delivered in person

Special “how-to-survive” skills: ability to resist stress, flexibility , patience, ambitions. ! Importance of personal connections !