Partner Article

Capital Gains: Why regional PR agencies are a serious alternative to their London counterparts.

It’s no secret that London has historically been thought of as the epicenter of the media industry, especially within the disciplines of marketing and public relations. With the capital city being the heartland of the UKs financial institutions and business in general, it is clear to see why London has long since been the choice of many businesses, especially given the vast quantity of big name agencies to choose from within the region. And, whilst Manchester, Birmingham, Leeds and Newcastle have made significant strides in playing catch up with their rivals in the big smoke, there has still been something of a misconception about London elitism, particularly within the PR sector. There’s no question that on a regional level, the chasing pack more than hold their own, however London has continued to be the choice of leading brand names, particularly in the corporate, technology and financial services sectors.

Yet, whilst the economic downturn may have brought with it budget cuts and despondency, one thing it has emphasised is the need for value for money – without compromising on the quality of service. With this in mind, the attention has turned to PR agencies outside the London area and how their offerings fair up to those within the M25. At a recent trade show, I raised this point with an internal comms manager from a global IT vendor, she told me that traditionally there was a conceived skills gap between London and non-London agencies, caused by lower earning potential out in the regions. Geography has also played a part, with many clients preferring an agency in close proximity to the thriving London business district.

In the eye of the recession, the tide is very much turning, on one hand forced by economics, businesses looking at existing PR projects and retainers and those seeking out an agency for the first time are increasingly considering non-London options. In Newcastle, the cost of staff, rent and general business expenses are unquestionably lower, and astute agencies in the city are able to pass on those savings to clients directly. However, there are more than financial reasons at play. In response to the skill set point, two of the top agencies in the North East can now boast an almost entirely London-trained employee base. Their skills and experience have been honed at some of the top agencies in Europe, working on PR strategy and implementation for leading global names. Property prices in London and the improving quality of life available in Manchester, Newcastle et al has seen a skills migration, and it is the regional agencies that have benefitted from this.

Improvements in the UK transport infrastructure, particularly the rail network means that the once inconceivable Newcastle/London commute can now be cut down to a meager two hours and forty minutes. Teleconferencing, WebEx and Skype all remove some of the communication challenges between client/agency, helping make location virtually irrelevant and driving cost effective PR.

PR is historically first to go when budgets are being cut, yet lower cost agencies do not necessarily equate to a budget service. As we at Admiral PR have discovered over the last eight weeks, big brands are not so afraid of turning North for their PR needs, and this is a trend that we expect to continue as word of the great work we do spreads throughout the industry.

Stephen Dunne is an account director with Admiral PR. As part of his role, he heads up the Newcastle firm’s growing technology practice. He cut his PR teeth with London agencies, including AxiCom, Hill & Knowlton and Hotwire.

This was posted in Bdaily's Members' News section by John Harrison .