Provoke Global Summit: Richard Edelman Says The Carnage In The Sector Is Remarkable
(MENAFN- PRovoke)
CHICAGO - As the PR industry grapples with consolidation, changing client demands and growing distrust of institutions, Richard Edelman believes its future lies in building on the fundamentals of the business while rethinking how communications firms operate.
Speaking with PRovoke Media founder Paul Holmes at the Provoke Media Global Summit in Chicago, the Edelman CEO outlined what he calls the Chicago Principles, a philosophy grounded in trust, earned communications, bottom-up relationships and local relevance, with action at the heart of how companies build credibility.
The principles come as Edelman approaches its 75th anniversary next year, a milestone Richard Edelman said carries particular significance as established agency brands disappear and the industry undergoes a period of significant change.
"The carnage in the sector is remarkable," he said, pointing to a shift in spending away from traditional agencies toward smaller and private equity-backed firms, as well as pressure on PR operations within holding companies.
Edelman argued that the industry's transformation requires investment in new capabilities rather than an overriding emphasis on cost-cutting.
"I think unfortunately the holding companies in search of efficiency have lost the plot about effectiveness," he said.
For Edelman, the answer lies partly in reclaiming the industry's traditional strengths, starting with trust, which he described as central to the role of communications in a world increasingly shaped by disinformation, polarization and declining confidence in institutions.
"I think trust is the central proposition in society," he said. "We can't agree on facts."
Edelman pointed to widening divisions between income groups, growing insularity and declining confidence in institutions. Trust has also become a commercial imperative, he said, citing Edelman research showing that it is now as important as price and quality in purchasing decisions.
But earning that trust requires more than messaging. Edelman argued that PR firms need to take greater responsibility for developing ideas that resonate with audiences, rather than simply securing coverage for campaigns created elsewhere.
"Earned has to be a strategy, not a channel," he said. "We need to do things. We can't just talk about them."
Edelman cited the firm's work with CVS on its decision to stop selling cigarettes in 2014 and REI's decision to close its stores on Black Friday as examples of companies demonstrating their commitments through their behavior.
"I deeply believe in actions," he said.
Edelman also emphasized the growing importance of bottom-up communications, arguing that trust increasingly resides with people who are close to their communities rather than distant experts or institutions.
That means building relationships with trusted voices, from teachers and pharmacists to religious leaders, rather than relying exclusively on messages delivered from the top.
Closely connected is the importance of local relevance, particularly as nationalism and skepticism toward globalization reshape how people view companies.
"PR is a local business. It is increasingly local because of nationalism," Edelman said. "You have to be as local as the locals... in order to win."
He pointed to differences in the creator economy across markets, with US news creators increasingly building their own media businesses while European creators are more likely to be affiliated with established journalism organizations.
For global agencies, he said, success depends on understanding those differences rather than imposing a strategy developed at headquarters.
The same thinking informs Edelman's view that PR firms should be more ambitious about creativity, particularly as communications shift away from traditional campaigns toward an always-on approach rooted in culture, news and creators.
"We should own always-on creative. We should own creative that comes from culture," he said.
Edelman argued that PR firms should not surrender the creator business to specialist agencies or treat creators simply as distribution channels. Instead, they should use their understanding of audiences, relationships and culture to develop the ideas themselves.
That ambition has required Edelman to invest beyond traditional PR, with roughly 25% of its workforce now working in other disciplines, including creative, planning and strategy.
The principles also have implications for how companies navigate an increasingly polarized political environment, particularly around issues such as diversity, equity and inclusion and sustainability.
Edelman suggested that companies need to frame those commitments around business continuity and growth rather than rely on language that has become politically divisive.
He also warned that companies risk losing their position as trusted institutions if they mishandle major transformations, particularly those involving AI.
Rather than relying on impersonal emails or pronouncements from senior executives, he advocated frequent, direct conversations with employees, including opportunities to ask difficult questions and receive candid answers.
For Edelman, the challenges facing the industry ultimately reinforce the need for PR firms to build on what distinguishes them, while adapting those strengths to a changing communications landscape.
"I don't think that we should try to replicate being a big holding company," he said. "I think we should do what we do well."
His ambition, he added, is to build "a communications firm, but a future communications firm."
Speaking with PRovoke Media founder Paul Holmes at the Provoke Media Global Summit in Chicago, the Edelman CEO outlined what he calls the Chicago Principles, a philosophy grounded in trust, earned communications, bottom-up relationships and local relevance, with action at the heart of how companies build credibility.
The principles come as Edelman approaches its 75th anniversary next year, a milestone Richard Edelman said carries particular significance as established agency brands disappear and the industry undergoes a period of significant change.
"The carnage in the sector is remarkable," he said, pointing to a shift in spending away from traditional agencies toward smaller and private equity-backed firms, as well as pressure on PR operations within holding companies.
Edelman argued that the industry's transformation requires investment in new capabilities rather than an overriding emphasis on cost-cutting.
"I think unfortunately the holding companies in search of efficiency have lost the plot about effectiveness," he said.
For Edelman, the answer lies partly in reclaiming the industry's traditional strengths, starting with trust, which he described as central to the role of communications in a world increasingly shaped by disinformation, polarization and declining confidence in institutions.
"I think trust is the central proposition in society," he said. "We can't agree on facts."
Edelman pointed to widening divisions between income groups, growing insularity and declining confidence in institutions. Trust has also become a commercial imperative, he said, citing Edelman research showing that it is now as important as price and quality in purchasing decisions.
But earning that trust requires more than messaging. Edelman argued that PR firms need to take greater responsibility for developing ideas that resonate with audiences, rather than simply securing coverage for campaigns created elsewhere.
"Earned has to be a strategy, not a channel," he said. "We need to do things. We can't just talk about them."
Edelman cited the firm's work with CVS on its decision to stop selling cigarettes in 2014 and REI's decision to close its stores on Black Friday as examples of companies demonstrating their commitments through their behavior.
"I deeply believe in actions," he said.
Edelman also emphasized the growing importance of bottom-up communications, arguing that trust increasingly resides with people who are close to their communities rather than distant experts or institutions.
That means building relationships with trusted voices, from teachers and pharmacists to religious leaders, rather than relying exclusively on messages delivered from the top.
Closely connected is the importance of local relevance, particularly as nationalism and skepticism toward globalization reshape how people view companies.
"PR is a local business. It is increasingly local because of nationalism," Edelman said. "You have to be as local as the locals... in order to win."
He pointed to differences in the creator economy across markets, with US news creators increasingly building their own media businesses while European creators are more likely to be affiliated with established journalism organizations.
For global agencies, he said, success depends on understanding those differences rather than imposing a strategy developed at headquarters.
The same thinking informs Edelman's view that PR firms should be more ambitious about creativity, particularly as communications shift away from traditional campaigns toward an always-on approach rooted in culture, news and creators.
"We should own always-on creative. We should own creative that comes from culture," he said.
Edelman argued that PR firms should not surrender the creator business to specialist agencies or treat creators simply as distribution channels. Instead, they should use their understanding of audiences, relationships and culture to develop the ideas themselves.
That ambition has required Edelman to invest beyond traditional PR, with roughly 25% of its workforce now working in other disciplines, including creative, planning and strategy.
The principles also have implications for how companies navigate an increasingly polarized political environment, particularly around issues such as diversity, equity and inclusion and sustainability.
Edelman suggested that companies need to frame those commitments around business continuity and growth rather than rely on language that has become politically divisive.
He also warned that companies risk losing their position as trusted institutions if they mishandle major transformations, particularly those involving AI.
Rather than relying on impersonal emails or pronouncements from senior executives, he advocated frequent, direct conversations with employees, including opportunities to ask difficult questions and receive candid answers.
For Edelman, the challenges facing the industry ultimately reinforce the need for PR firms to build on what distinguishes them, while adapting those strengths to a changing communications landscape.
"I don't think that we should try to replicate being a big holding company," he said. "I think we should do what we do well."
His ambition, he added, is to build "a communications firm, but a future communications firm."
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