This time last year we asked PR chiefs for their predictions for 2011, and they agreed that it would be a big year for digital PR. They weren’t wrong. So how’s 2012 looking? Well, there’s good news and bad news. The good news is that there are still exciting digital developments. The bad news is, you’ve guessed it, the economy.

Here’s what this year’s chiefs foresee:

Stefan Stern, director of strategy, at PR firm Edelman says 2012 will be tough:

“What can we say for sure about 2012? The economy looks likely to be subdued. Unemployment will rise. Consumers will spend less. And that’s just the hopeful scenario. An actual disorderly collapse of the eurozone will bring about chaos – but exactly what kind of chaos no one can possibly know.

“Politics in the UK will be unstable too. A worsening economy will test the coalitions’s competence and nerve. It will present the Labour party with an opportunity to offer a convincing alternative approach.

“Hard-pressed customers will be impatient with companies who ‘overclaim‘. This will be a time for businesses to concentrate on offering value for money. And telling it straight. Bad trading conditions will make business a battle for survival. It always is, of course. But 2012 will be particularly tough.”

Helen Nowicka, UK head of digital at consultancy Porter Novelli, sees opportunities:

“I’ve picked out three challenges facing agencies and in-house teams, all of which present opportunities.                          

“First, skills. People who cut their teeth on press sell-ins might have personal Facebook and Twitter profiles, but they’re still learning how to be accomplished community managers. We all need to keep learning.

“Second, simplicity. For some clients, digital can still feel like uncharted territory compared to the neatly-defined traditional media environment. Agencies can help, we have tools to simplify the landscape by delivering clear and actionable insights.

“Third, spend. The economic climate will get tougher next year. Unsurprisingly, social media budgets have become battlegrounds as PR, ad, digital, and media agencies all wrestle for them. PR firms are more likely to win if they can integrate digital and traditional comms; have robust metrics to show results; and combine creative thinking with executional excellence.”

Jane Ainsworth, managing director of agency Willoughby PR, says lobbying tactics must change:

“2012 is going to be year of highs and lows. The impact of the current economic turmoil takes effect in Q1, but the Olympics and Jubilee should lift our spirits. The football – probably not so much!

“There will be increasing pressure to regulate lobbying after Lobbygate broke in December. More regional newspapers are going to move onto a weekly format – which we need to see as a good thing. National newspapers will continue to see a decline in sales and online will rule the roost.

“It’s not going to be an easy year, but it’s going to be tougher for PROs who have built businesses on dubious lobbying tactics or who rely on delivering column inches for clients. It will be a better one for agencies who can demonstrate an ROI for consumer clients – or ones who have a strong B2B offering, as clients in that sector appear to have more of a can-do attitude.

“However, the agencies that understand why PR is so vital to SEO success will be the happiest ones of all. Of that, I am sure.”

Graham Goodkind, founder of consultancy Frank PR, sees agencies closing:

"I think 2012 will be the year when business skills in the PR industry will be more crucial than PR skills. There is going to be a wake-up call with regards to costs associated with running a consultancy. These costs are going to grow faster than fees and there will be more pressure on profit margins. Those agencies who don't approach PR life in 2012 with their business heads firmly screwed on will suffer. And sadly, I also predict that we might see a few that will come a cropper."

Soundbites

What are your predictions for 2012?

Ross Furlong, founder of digital PR agency Furlong PR:

“Social media will continue to hot up, brands with established social media presences will still be looking for additional strategic and creative input and will have allocated budgets to these activities. Video is going to be an important component as is online content generally. Social media creative allied to strategy is key.”

Samantha Howard, freelance communications consultant:

“The problem PR agencies will be struggling with in 2012 is how to get paid a sensible fee for a sensible day’s work. Margins in this business are slim at the best of times, in the worst of times there is only so far you can be pushed into over-servicing before the business model stops making sense.”

Bill Penn, founder and chairman of agency Aspectus PR:

The Euro crunch will hit in terms of economic impact even if the currency survives. And that will affect budgets across the board. Decisions will become more protracted as nervousness increases. But this is an opportunity for the PR industry to demonstrate its value – creativity, quality thinking and great writing will count like they never have before.”