greek pr in the economic crisis

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GREEK PR IN THE ECONOMIC CRISIS The ongoing crisis in Greece has severe repurcussions for public relations. But it also promises a fresh start. By Anastasia Deligiaouri and Prodromos Yannas

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n the era of global economic recession both public and private entities are under strain. The private sector in modern societies constitutes the backbone of economic activity regardless of the level of market protectionism exercised by the government. Despite its enormous public sector (close to 50 per cent), the Greek economy is highly dependent on the produc02/2012

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tivity of the private sector, which is basically comprised of small- to medium-sized companies and large multinational companies. (For a more detailed picture, see Yannas Prodromos article on Greece in Betteke Van Ruler and Dejan Vercic’s Public Relations and Commu-

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nication Management in Europe: A Nation–by-Nation Introduction to Public Relations Theory and Practice, 2004). The current severe economic crisis – which has been ongoing since 2007 – has caused Greek companies tremendous economic problems and dysfunctions. The principal question we will try to answer here is to what extent and how the public relations industry reacted to this prolonged crisis situation. Another related question is what kind of public relations services are in demand by Greek companies in order to cope with the crisis; or, put differently, how public relations agencies are involved in the ‘rescue plan’ of companies in Greece?

Photo: www.istockphoto.com

THE EVOLUTION OF A PROFESSION Over the last decade, pub-

lic relations services in Greece have been characterised by an increased professionalism. Regarding the profile of public relations practitioners in Greece, studies reveal some interesting features such as their age group (mostly 41-45), their educational background (approximately 41 per cent with university degree) and the length of their relevant professional experience at the point of entering into the public relations business (66.7 per cent with six or more years of professional activity. For more details see George Panigyrakis and Cleopatra Veloutsou’s “Sex-related differences of public relations managers in consumer goods companies in Greece and Italy” in Women in Management Review, 13-2:72-82, 1998, and George Panigyrakis and Zoi Ventura’s Sychroni Diikitiki Dimosion Sxeseon [Contemporary Management of Public Relations] 2001). As far as the geographical allocation of the public relations industry

in Greece, most of the firms (82 per cent) are concentrated in the capital city of Athens and a much smaller proportion (14 per cent) in the second largest city of Greece, Thessaloniki. We should point out though that major Greek companies affiliated with foreign firms prefer to maintain an in-house public relations department.

PUBLIC RELATIONS IN THE ERA OF ECONOMIC CRISIS The effect of the economic crisis on the public

relations market is multifaceted. On the one hand, as expected, public relations budgets in Greece have dropped by almost 30 per cent. On the other hand an increase in demand for crisis public relations and corporate social

It comes as no surprise that major brands have shown a great interest in investing in public relations during the crisis,probably because their communication plans adopt a more long-term perspective. responsibility communications is evident. As the public relations industry has had to adjust and adopt its tactics to the generally grave social condition and recession, public relations practitioners have reappraised their messages, abandoned the “extravagant aspects of public relations activity” and opted for a more down to earth profile, as revealed by PR Week’s Focus on Greece (online at www. prweekglobalthinktank.com/regions-countries/europe/ greece). Within the public relations sector itself several imbalances and upheavals have occurred as well. Some public relations agencies have not survived the economic hurricane while others seem to have taken advantage of the situation in order to establish a strong presence. It comes as no surprise that major brands have shown considerable interest in investing in public relations activities during the crisis, probably because their business strategy and communication plans adopt a more long-term perspective rather than a short-term one. This contrasts with the practice of small to medium-sized companies that are usually looking for immediate, short-term results and show reluctance in embracing the full scope of public relations activities. The recession has even cast doubts on the value that hard-hit small and medium-sized companies ascribe to public relations activities.

AN EMERGING SIGNIFICANCE The relation between public relations experts and the media seems to 02/2012


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be ambivalent. The rather small size of the Greek market is not always thought of as a problem for public relations professionals as it provides them the opportunity to add a personal touch to their relations with the media and helps them reach better results in less time. Another feature of modern media relations is the expansion of public relations strategies in social media. A recent study brings forth the emerging significance of the use of social media in public relations strategies and shows that experts appreciate the potential of social media in public relations; some even call social media the “extension of public relations services” or what we may term ‘digital public relations’. Most of them find the available tools and the essential knowledge for using social media in the Greek market to be at a sufficient level, according to a report on www.marketingweek.gr.

A WIDER PERSPECTIVE Looking at the landscape beyond Greece, the economic crisis has certainly altered the portfolio of services provided by public relations agencies. As Jeremy Galbraith, the CEO of EMEA Burson-Marsteller, states in the same Marketing Week report, while crisis communication, public affairs and change communication show a significant rise during the economic crisis, marketing public relations is on the decline. This assessment is corroborated by the empirical findings of a study conducted by the International Communications Consultancy Organisation (ICCO) across 18 countries in Europe, Asia-Africa and the Pacific during the first trimester of 2012. Also noteworthy is the widespread optimism of public relations professionals regarding the future of their industry and their belief in a rapid growth, as evinced in a recent report on www. advertising.gr.

Because of the recession, companies have had to invent new activities for supporting their brand more effectively in the already shrinking Greek market.

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CANVASSING THE OPINIONS OF THE PROFESSIONALS In order to disclose how Greek companies have

dealt with public relations in the midst of a prolonged economic crisis, we constructed a questionnaire and addressed it to public relations professionals of large independent agencies in Greece. The answers we received depict the multifaceted impact of the economic crisis on public relations activities in Greece. All respondents 02/2012


EXECUTIVE SUMMARY Crisis as opportunity The current crisis has been ongoing in Greece since 2007 In Greece and further afield, crisis communication, public affairs and change communication show a significant rise during the crisis, while marketing public relations is on the decline Budgets have been cut, though demand for public relations and corporate social responsibility has increased In times of crisis, low cost digital services and the use of social media hold the potential of great market impact The crisis has provided an opportunity for public relations professionals to be more creative in their approach, and has stressed the need for communications to prove its value

concur that the economic crisis has posed a challenge to the Greek public relations industry: because of the severe economic recession, companies have had to invent and invest in new activities for the purpose of either relating to consumers in a more appropriate way or for supporting their brand name and products more effectively in the already shrinking Greek market. This means that the communicative dimension of public relations and their importance in preserving a good company profile was reappraised and appreciated even by small-size companies. This turn to public relations activities was further supported by low cost digital services with the potential of great market impact.

CRISIS IS A TWO-SIDED SWORD The economic crisis has had a dual effect on agencies. On

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the negative side, respondents mention budget cuts, the decrease in the number of employees and the decline in profits. On the positive side, they emphasise the new communicative strategies that have emerged and that the cuts in advertisement budgets have driven Greek companies to seek more focused and strategic communicative methods. Due to this spin in companies’ preferences a clearing (“catharsis”) oc-

New communicative strategies have emerged and that budget cuts have driven Greek companies to seek more focused strategic communications.

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curred within the public relations industry since only agencies that offered professionalism, specialisation and high-quality services could satisfy the demands of companies that nowadays hold on to the return on investment principle more than ever. An additional promising element is that an interviewee alludes to the revival and evolution of public relations, with digital being the most promising focus area. Certainly the development of specific public relations activities does not cover the whole spectrum of services. Interviewees stress the difference between high cost investments and investor relations that are currently ‘frozen’ and other public relations forms like media relations, lobbying, strategic marketing, econsulting, guerrilla marketing and risk management that are further developed and are elevated in companies’ preferences.

NECESSITY: THE MOTHER OF INVENTION An important feature that accrues from the participants’

answers is their optimism and positive thinking about public relations even during the economic crisis. Almost all of them used the word “opportunity” rather than “threat” to describe the way agencies have encountered the economic recession. Respondents have analysed this opportunity in the terms of flexibility, further specialisation and expansion of the services provided by agencies for the purpose of successfully meeting the demands of Greek companies that operate on tight budgets. Some respondents opined that a good way to face cuts in the public relations budgets of companies was to offer “integrated communication services”, a “package” of communication Anastasia Deligiaouri services including public relaTEI Western Macedonia tions. What is also constantly underscored in the answers Dr Anastasia Deligiaouri is an we have received is the inadjunct senior lecturer at the Department of Public Relacreasing significance accordtions and Communication of ed to online public relations the Technological Institute of strategies and techniques. Western Macedonia., Greece.

THE SEARCH GOES ON In general what stems from the responses to our questionnaire is a reserved optimism regarding public relations in the Greek market, in spite of the fact that Greek companies are in the midst of a prolonged recession now in its fifth year. The final conclusion that emerges from our research is that the economic crisis can be perceived as an opportunity to change existing communication strategies and tactics. Public relations and communication professionals are actively searching for new and more innovative, productive and efficient ways to reach their business while at the same time demonstrating the value of public relations in hard times. 02/2012

She is also a lawyer in private practice. During the summer of 2010 she was invited as a visiting research fellow at the Centre for the Study of Democracy at Westminster University,UK.

Prodromos Yannas TEI Western Macedonia Prodromos Yannas is professor of public relations and communication and dean of the Kastoria Campus at The Technological Institute of Western Macedonia, Greece. He is a senior editor of the Journal of Political Marketing and sits on the editorial board of the International Journal of Electronic Government Research.


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