International
A view from Slovakia
Two years ago, Slovakia had one of the highest economic growth rates in the EU since joining in 2004, mainly thanks to investments in export-oriented industries such as automotive and electronics. The country attained a 10.4-percent economic growth. Inflow of foreign direct investment was facilitated by business-friendly policies such as labour market liberalisation, cheap and skilled labour force, or the 19-percent flat rate tax. Slovakia's introduction of the common Euro currency on January 1st, 2009 capped the decade of rapid economic development. The global economic crisis is hitting everywhere and Slovakia is no exception. The "Tatra Tiger", as the country has once been nick-named for its unprecedented economic growth, is currently slowing down roughly at a pace of its Central European neighbours. Unemployment is currently over 12 percent, but analysts say that stronger impact of the economic downturn is yet to be seen.
Slovakia’s PR industry is changing too. Increasing pressure on cost-effectiveness, budget revisions, and emphasis on key services (i.e. those which bring immediate return on investment) are commonplace across all sectors. At the same time, communication with stakeholders is evolving rapidly; media landscape has been touched by the crisis and rich-content online media (including social networks such as Facebook) are taking charge. Our stakeholders communicate differently and we must adapt. “Survival of the fittest” seems to be true now more than ever.
"...as a member of PROI and regional networks, we continue to share business leads, and facilitate exchange of people, knowledge and best practices across countries..."
From a general point of view, large and well-established PR agencies shift towards strategic consultancies. The market demands more senior insight and less junior work. Public relations as a communication discipline is becoming a standard management function that identifies and assesses opinions, addresses relevant stakeholders, and helps businesses and organisations grow. Media relations has been dominating the most sought-after activities among PR services for some time now, but with their share falling in favour of strategic advisory, new media and public affairs. PR people must work harder to show that what they do is not cheap advertising, but building long-term relationships.
At Seesame, although we feel a significant drop in marketing and communication in Slovakia, we have succeeded in stabilising our business: we have maintained our clients by providing services of real value to them. Also, as a member of PROI and regional networks, we continue to share business leads, and facilitate exchange of people, knowledge and best practices across countries, as evidenced by my recent visit to Lansons Communications, one of our PROI partners.
Looking to the future… so how does 2010 look for us. The quality of Slovak PR is set to grow along with expectations of both clients and stakeholders: pressure on the quality of services delivered, as well as public demand for a more open and direct communication is going to drive the agencies’ performance. Bringing innovative yet cost-effective tools will be among the toughest challenges. Because smart is the new sexy.
To find out more about Lansons International contact international@lansons.com
For further information about the PROI network, visit their website by clicking here.
‘A view from Slovakia’ photograph provided by Eole