Edelman, WPP Revenue Decline - Has Much of Public Relations Has Become a Commodity?

O'Dwyer Public Relations reports that both Edelman and WPP have experienced a decrease in raw revenue. This is at a time when the sector is supposedly feeling its way out of the demand darkness of the past few years.

There may be no climb out, unless the sector disrupts just like elite old-line law firms have been doing. Two realities are operating. 

One reality, of course, is generative AI. There's a misunderstanding that Gen AI primarily automates. That's just small stuff. It can figure out that ABC or GHI function is just a cost burden, creating no unique value. Gone will be the unit. Then Gen AI can figure out how to replace that with itself.

Think about it: How about chunks of the investor relations unit at a public company? ChatGPT Plus, which costs only $20 a month (down from $200 a month), gives you access for OpenAI's Deep Research. It not only digs. It will create the report on all that, along with citations. So much for so many humans in financial reporting, including the annual report.  

Another negative development for public relations, as somewhat related to the role of technology, is that parts of the sector are mutating into commodities. In that, public relations has plenty of company. 

Chair of top law firm Paul Weiss Brad Karp, for instance, confirmed that there are aspects of the practice of law which have become commoditized. Last night in coaching a lawyer operating in the niche representing those in a healthcare specialty we discussed adjusting pricing for just that. Or direct clients to lower-priced lawyers for those pieces of service, leaving only the high-value tasks for himself.

Much of public relations as a commodity probably dates back to the dawn of digital. Remember that phrase "We the Media." 

First we bloggers, then the social media guerrillas and more recently added on have been the podcasters and the influencers. Well, collectively we have learned well our way around the fundamentals of public relations. 

Influence? That's no mystery for us. We can also be our own lobbyists. With one of my blogs, networking and communications with elected officials I helped change a pet care policy during disasters. 

Reputation restoration? Change how you make a living and no one will care anymore about your past. If disgraced former "Today" bigwig Matt Lauer launched a startup for retrofitting shipping containers as tiny houses for the homeless much could be forgiven and forgotten. 

To halt the shrinkage of its financial performance public relations agencies will have to return to the drawing board and ask that critical question: What business are they really in. 

Back when the late Ted Levitt was a marketing professor at Harvard Business School he mandated that corporations pose that query to prevent collapse. Had railroads answered transportation they could have thrived. For example, they would have purchased or merged with airlines and auto/truck companies. Here is Levitt's thinking in the Harvard Business Review.

It's not unthinkable that the business of an Edelman or a WPP could be technology. That would be their core advisory service. Already consulting firm Booz Allen has shifted to being identified as a technology firm.

Three years ago, after decades of primarily being a content-creator, I asked myself: What business am I really in. The answer, at least for me, was: To help people present themselves with an edge. That's when I shifted full-time to my sidelines in intuitive career coaching and tarot reading. 

Is the life you’ve known collapsing? As your intuitive career coach/tarot reader I guide you to what could be next. Clients range from lawyers to entrepreneurs to the trades. Free confidential consultation. If we work together, fees are what you can afford. To connect: Jane Genova (text/phone 203-468-8579, janegenova374@gmail.com). In-person and remote.