Tuesday, 02 January 2024 12:17 GMT

Middle East PR Business Optimistic For Q4, Despite Challenges


Date:

(MENAFN- PRovoke) ABU DHABI and DOHA-The Middle Eastern public relations business is largely positive about the final quarter of the year, but working through slower client decisions, delayed budgets and economic uncertainty, according to the Q4 Industry Pulse from MEPRA, the region's professional body for public relations and communications.

The survey gathered feedback from MEPRA members including agency networks, large businesses, independent consultancies and individual practitioners with a presence across the GCC.

Among the key findings:

    ●The outlook is positive but guarded. The majority (62.5%) describe their organisation's Q4 outlook as positive: 55% cautiously optimistic and 7.5% very positive. A quarter (25%) are uncertain and 12.5% are concerned. ●Decisions are taking longer. More than two-thirds (67.5%) say client decision-making on new business is slower than 12 months ago, and half (50%) say it is much slower. ●Budgets are under pressure. More than half (55%) of respondents report clients freezing or delaying budgets (42.5%) or cutting them (12.5%). 30% see stable budgets and scopes, and 7.5% report increased investment. ●Payment terms are stretching. 57.5% say client payment terms are getting longer. ●Hiring is selective. 52.5% plan to hire selectively for specific roles. Only 2.5% are expanding permanent headcount, while 22.5% have a hiring freeze in place. ●Uncertainty is the top challenge. 37.5% name economic and market uncertainty as their biggest challenge, ahead of new business generation (27.5%) and client budget pressures (17.5%). Talent concerns are minor, at 7.5% combined. ●The pipeline is there, but slow. 37.5% say opportunities exist but decisions are taking longer, and 17.5% say their pipeline is stronger than expected. 22.5% say it is as expected, 15% report fewer opportunities and 7.5% report a significant slowdown.

“This industry has real reasons for optimism.” says Justin Kerr-Stevens, chair of MEPRA.“Six in ten of us are positive about Q4, and the demand for good communications advice hasn't gone away.

“But optimism isn't a plan, and more can be done to support the industry. Tender and performance bonds on RFPs are long overdue for scrapping, and I'd urge every client with a tender going forward to drop them. And clients need to pay what they owe. When payment terms stretch, it's the agencies, and the people in them, who carry the risk.”


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