Thursday, August 11, 2005

Second wave

Call it an after shock from the 2000 crash of the tech market if you like but I think we are starting to see another wave of challenges facing the tech PR market. Don't read in to this that my businesses are having problems, thankfully they are not. However, events of the last few months have pushed a few agencies perilously close to the edge and I fully expect to see one or maybe two firms crash out in the next few months. The firms won't be small fry, they'll be businesses that have been around a while and have taken steps to build up internationally. Their demise will be a result of two equal and opposite forces: a drive in one direction to go global while at the same time being driven in the other direction to be more local. These are tough pressures for medium sized businesses to take on at the best of times. The agencies I see being at risk are ones that became too dependent on one or two clients and equally a handful of their staff. If this mix changes even slightly in such businesses, the results are not pretty. Take a look at the big pieces of business in the tech PR market to move and then also at what staff moves have taken place and you might see what I mean. I won't name names right now as I'd actually prefer it if these businesses stay alive but let's put it this way, if they're still alive in six months I'll be shocked.

Good to be back....

107 comments:

Peter Himler said...

Tim,

I hope you're wrong, but I don't disagree that the changed and changing PR landscape makes it harder for mid and even larger firms to compete financially and qualitatively with smaller, more nimble/focused tech shops and consultants. The defection of one or two major accounts may not spell doom, but will no doubt result in downsized and demoralized staffs.

HunkyMouse said...

The problem, Tim, is that the media is in disarray, and that's because the new generation of publishers isn't here yet.

At the risk of destroying our friendship, can I point you at what http://www.theikew.co.uk/2005/08/well_he_would_s.htmlGuy Kewney wrote?

HunkyMouse said...

Or, to make that link actually work, look at what Guy Kewney wrote...

jemp3ybkw15mzqd said...
This comment has been removed by a blog administrator.
Tom Foremski said...

Tim, I'm hearing the same things, I wonder if it's the same companies?
BTW, why do you want them to survive six months? Does it take that long to make acquisitions or are you hoping for a lower price :-)

-Tom

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