Despite the difficult economic conditions, the Swedish PR market is predicted to grow and is, in fact, one of the fastest growing PR industries in Europe.

The overall trends within the Swedish PR market over the last few years have been growth and development. The Swedish PR industry has exploded in both size and quality over the past ten years, and today is a well-respected and professional industry that provides significant value for its customers within all disciplines - from advanced consultation on financial matters and strategic and tactical advice during crises, to creative viral campaigns and brand development.

Swedish PR agencies are also becoming increasingly international, are active in countries far-removed from Sweden and are ranked highly in international comparisons. Evidence of this fact is that a number of Swedish PR agencies are in demand internationally, that a growing number of them have become central in well-known, high-quality international networks and that still others create prize-winning PR campaigns with an impact far beyond Sweden's borders.

First Choice

PR consultants and PR initiatives in general have also become better known, and the profession has become both better defined and more attractive. Today, there are many students who see PR consultancy as their first career choice and the profession is increasingly attracting top politicians and high-profile business people who had not previously considered the industry.

Another of the key factors for this success is the fact that Sweden is an excellent breeding ground for talented communicators. Swedish advertising agencies and web agencies are both internationally recognised and award winning. Today you can see growing evidence that Swedish PR agencies are well matched to compete with other agencies when they are put in the ring together. Many Swedish PR agencies have been nominated for international awards during 2008 and 2009. 

Not Publicity

In the past, most Swedish PR-firms carried out publicity work for their clients, not PR as such. Publicity is still important for most agencies and it's a core service to get unpaid media to pay attention. But more and more PR agencies and clients view PR as the strategic crafting of  a story. It's an examination of the interactions, tactics, products and pricing that, when combined, decide what and how the public talk about you.

The influences

The basis for the development is the continual improvement shown by Swedish PR agencies, and the fact that they now offer services across the entire PR spectrum. Another central element in this positive development is that clients have become more aware of what a PR consultant can contribute and what role they have to play when working with communications and branding. PR consultancy has also become increasingly recognised and understood within society. Despite the fact that awareness among the general public is still low, it's much higher than it was five years ago.

Another key influence behind the development is that Swedish companies and authorities are more focused on how they are regarded by their stakeholders. They understand that a solid reputation is of great importance when it comes to attracting clients, employees and money. PR today is regarded by many as an important tool to use when attempting to repair a damaged reputation. The expanded and new expertise flowing into the PR industry has also naturally improved the quality of work it offers. 

Growing industry

The total investment in communication and PR in Sweden amounted to approximately SEK 4.9 billion in 2008. Twenty-two percent of the total investment is related to spend on communication and PR activities emanating from marketing departments. Fifty-five percent of the total investment is related to employee costs. Figures for 2008 show a five-percent increase in fee income for Swedish PR consultancies compared to 2007.

Given that Swedes are one of the world's most connected people, it is crucial that Swedish PR agencies incorporate new media into their strategies. On the whole, though, new media opportunities in Sweden are the same as those in the rest of the western world. More platforms are used universally, ideas are spread instantly and local solutions are quickly copied and offered in Sweden - just as some technologies and solutions also originate here and are applied elsewhere.

Simply put, one can say that there is a dual development within Sweden: one group of agencies are streets ahead of others and are responsible for pushing development forward, while the other group sits back and observes development, not yet fully embracing the new opportunities.

The agencies in the first group compare favourably with their international counterparts. Clients' understanding of what the new opportunities can offer naturally plays a role in how cutting edge PR agencies can be, but the situation is rapidly developing even here, thanks to clients who are highly-versed in new media. Considering that Swedish buyers are still not fully versed in, and are relatively unwilling to test new approaches, there are great possibilities fore those Swedish agencies at the forefront to broaden their horizons further.

The future

The PR industry is growing faster than many other communication sectors in Sweden. Many Swedish agencies are also active in the industry's internal development and are working very hard to spread awareness of PR's potential and possibilities.

Despite the difficult economic situation ahead of us, the Swedish PR industry is expected to grow during the coming years unlike other sectors and indeed is likely to be one of the fastest growing in Europe as it has been for the past ten years.

Anders Hult is partner of the Prime-Group.