Sales growth is now a benchmark for PR agencies in China

The role of public relations (PR) in China is evolving rapidly as brands demand more measurable outcomes. According to R3’s 2024 China PR Agency Scope Study, 9.4% of brands now consider sales growth a key performance indicator (KPI) for evaluating PR agency performance.

The study, conducted between June and September 2024, surveyed over 200 PR and marketing professionals across more than 100 brands, offering valuable insights into the changing PR landscape. Participants included senior marketers (70%), procurement professionals (10%), and agency representatives (20%). Multinational corporations made up 81.1% of respondents, followed by locally owned companies (14.7%) and state-owned enterprises (4.2%). Industries ranged from automotive and healthcare to luxury and consumer goods, with notable contributions from global brands like L’Oréal, Coca-Cola, and General Motors. The study also analysed over 50 PR agencies, encompassing international networks and prominent local firms.

Key findings:

1. Decentralised touchpoints challenge control over public opinion

Decentralised media platforms are complicating public sentiment management, as fragmented content distribution makes it harder to respond in a timely and accurate manner. This challenge underscores the need for PR agencies to adapt with greater agility and stronger frameworks for managing public discourse.

2. PR’s scope expands, enhancing integration across marketing sectors

PR is increasingly integrated with broader marketing efforts, encompassing areas like digital transformation and strategic brand management. Functions such as KOL procurement and social content distribution now overlap significantly with marketing teams, highlighting the merging boundaries between PR and marketing.

3. Consumption decline drives efficiency concerns

Economic uncertainty and consumption downgrades are prompting brands to prioritise cost efficiency in their PR investments. PR agencies are being challenged to deliver maximum value with limited budgets, often making strategic planning and measurable outcomes a top priority.

4. Improving strategy execution and performance evaluation

As media ecosystems decentralise, standardised performance frameworks are becoming essential. Metrics like stakeholder feedback (63.5% basic KPI, 10.6% key KPI) and sales growth (9.4% key KPI) are being integrated into evaluation systems to optimise PR effectiveness.

5. PR Teams are increasingly adopting integrated AI and Big Data solutions

Digital transformation is a major focus for PR teams, with 39.2% prioritising AI and big data for content optimisation and consumer behaviour analysis. An additional 11.8% seek multi-channel digital marketing technologies to enhance strategic decision-making, reflecting the growing reliance on data-driven insights.

6. Key qualities of the ideal agency include good execution and stability

When evaluating agencies, 78.8% of respondents prioritise media coverage quantity, and 24.7% focus on quality as key metrics. Additionally, 30.7% of clients are “very satisfied” with their PR agencies, an increase of 13.2% since 2022. Agency-client relationships are stable, averaging 3.0 years in length.

7. PR client-agency collaboration continues to trend toward centralisation and long-term engagement

Long-term partnerships remain a hallmark of PR, with fewer than 5% of respondents actively seeking to change agencies. This focus on centralisation fosters deeper collaboration and better alignment with brand goals over time.

8. Agency KPIs have diversified and now include sales metrics

The use of sales metrics to evaluate PR agency performance is on the rise, with 20% considering it a basic KPI and 9.4% treating it as a key indicator. Traditional metrics such as media coverage and engagement still dominate, but the shift toward ROI-driven KPIs signals an evolving PR landscape.

9. Corporate culture and employee rights are now core CSR topics

Corporate Social Responsibility (CSR) priorities are shifting. Local firms emphasise corporate culture and employee rights (70.6%), while multinationals focus on environmental sustainability and climate change (65.5%). Both groups are aligning CSR strategies with broader societal expectations.

10. PR agencies need to differentiate offerings for local and international clients

For brands exploring international markets, agencies must provide tailored strategies that combine local expertise with global networks. This ability to navigate diverse market environments is increasingly valued as Chinese brands expand globally.

Sabrina Li, Managing Director of R3 China, highlighted the growing demands on PR: “PR agencies should not only focus on optimising brand image for clients; they should also pay attention to how they can help brands achieve their marketing goals.”

The findings from R3’s study reflect a transformative moment for PR in China, as agencies navigate a landscape increasingly defined by ROI-driven metrics, decentralised media environments, and complex client expectations. For PR professionals, the challenge lies in balancing traditional communication strengths with the ability to deliver measurable business outcomes.