Veronis Suhler Stevenson

PR, Alternative Marketing To Grow as Advertising Shrinks

Better days lie ahead for the communications industry. This according to a new report by Veronis Suhler Stevenson (VSS), a leading private equity firm dedicated to the information, education and media industries.

The VSS Communications Industry Forecast found that while total communications spending will decline 1% in 2009 to $882.6 billion, the industry is poised to grow at a rate of 3.6% per year over the next five years to over $1 trillion. This will make it the third fastest-growing sector of the U.S. economy over that period.

According to the Forecast, 2008 and 2009 witnessed a major shift in communications spending patterns. Advertising became the smallest of the four major sectors in 2008—a first since VSS began tracking the industry in 1986. Public relations and word-of-mouth marketing is expected to grow 9.2% annually as they benefit from companies and brands seeking new ways to engage with audiences who are increasingly skipping ads.

With the help of Stanton Public Relations & Marketing, the report received widespread media coverage, including a feature in The New York Times.