The communication, marketing, and advertising sector is actually an industry,
and it has rules, it has schools that train a lot of new students every year,
it has systems and millions of people working on it,
and if we do not understand how communication works
we will always struggle to pass our message.
So with this video, we will dig into the size of the industry first,
and see how communication in the public sector
relates to the global world of marketing.
Let's start with one small industry, the music industry,
which globally in the world is estimated to generate 17.3 billion dollars a year.
It is interesting to know what the music industry is doing
because it's an industry that is trying to catch many people's attention
and make them listen to as much music as possible.
So we're talking about concerts,
we're talking about Spotify and any sort of music platform you use.
The radio industry is very similar to the music industry,
and that's about 27.1 billion dollars a year.
Why is it interesting to relate the two industries together?
Because they obviously have the same material
as they are working on the audio side of things.
An industry I like to put side by side
is an industry we tend to consider a little bit dead
and that's the book publishing industry. 60 billion dollars a year.
That's quite massive, right?
It's almost double the size of these two industries together.
Now, I have a question for you.
What is the size of the film industry
in comparison to the book publishing industry?
Is it bigger or is that smaller?
I would tend to think naturally that it's larger, right?
And it is.
It's 89 billion dollars of revenue generated a year,
all the blockbusters, independent movies, everything together.
But the video game industrie became even bigger in the last decade.
The video game industry is at 115 billion dollars of revenue a year,
and you almost have every entertainment industry you could experience in your life represented here.
But we're still missing one very big proponent of entertainment "TV",
and TV is now estimated to be 467 billion dollars a year.
The five largest entertainment industries are on this particular slide.
So you will obviously think about it
as quite a massive amount of money and business.
Let's continue.
The sports industry, we had the World Cup recently,
sports industry 600 billion dollars a year.
The sports industry has one particular objective:
to retain your attention as long as possible,
so that it can sell advertising.
So your attention is exchanged for advertising time.
You're following a sports match, it's great,
but during that time you are sold products.
So, the marketing, communication, public relation industry
altogether what does this represent?
Well that's this huge part of the chart, 1.2 trillion dollars a year.
We are talking about an industry so massive
that is bigger than all the entertainment sectors together, that's enormous.
The reason why it's so big,
is because all these entertainment sectors
need at one point to promote their products and by promoting their products
they actually feed the marketing, the communication, the advertising industry.
When we work in communication we are part of this industry.
So we have to understand the complexity of it.
How it relies on expertise, on real skills
so that we can do a better job.
Let's dig into the advertising sector now
and relate it a little bit more to the public sector.
So at the bottom right corner we have the EU budget.
That's the proper ratio, 165 billion dollars a year.
And the very small spots you see in this white square
is the actual EU communication budget,
600 million dollars is spent a year
trying to talk to citizens, to people about what we do in Brussels.
In blue, the US communications budget, about three times the EU one.
The US is a large country
and there is more promotion, in general, of their laws
so that people really understand what happens
and what programs are available to citizens.
In yellow: Procter and Gamble, the largest advertiser in the world.
We are talking about 7.2 billion dollars spent a year
on brands such as Always, Ariel, Gillette, Oral-B.
You know the brands, usually you don't know that
Procter and Gamble is actually the company producing them
because each of these brands is spending an amazing amount of money
to try to push their existence into your mind
when you're going to a supermarket or when you're walking in the street
and think maybe you should buy one particular brand of toothbrush.
The PR industry is the next in line.
The PR industry is influencing the press, so that the press talks about your topic.
That's about 15 billion dollars a year,
and if you look at the names in this particular industry
you'll see players very present in Brussels.
Weber-Shandwick, or Fleishman-Hillard, or Ketchum, Burston Marteller.
All these companies are working on PR and they are part of this industry.
In dark blue Social Network.
Guess which one-
Facebook.
Facebook is an advertising network that offers a free service
which is to connect with your friends and learn about the world,
but in exchange sell your attention to advertisers, right.
So we have about 40 billion dollars of revenue every year generated by Facebook
reselling our attention to advertisers.
And in light blue - Google.
Google is providing maybe one of the most useful services in the world on the Internet.
You can look for anything.
Well in exchange for that they earn a hundred billion dollars
every year by reselling our attention.
So here you have a little bit more information
and a granular perspective on what the industry is
and you still see a lot of red space.
So imagine many more actors present in that field.
I'd like to compare that to public sector communication
which is part of the chart I just showed.
The UK spends about $9 per inhabitant.
The UK has a very big tradition in advertising, they are extremely skilled,
and you can see that they are spending
the most money of all countries in the world actually (per capita).
The EU in comparison is spending 9 times less, with about $1 per inhabitant ($1.3 corrected).
So we are trying to convince people of what we do well with quite a low budget.
It is comparable to Canada: $1.6 per inhabitant,
and the culture is if you're a government you don't spend too much
to talk to people about the things you do well
because that's not the European tradition, to oversell what you are doing.
On the contrary, in Australia and the US,
you can see that they are spending much more per inhabitant
and thanks to that sort of spending their population is well aware
of the programs they have put in place and the services that are available to them.
What does that mean for the European elections, coming in May 2019.
Well, a recommendation in this case.
The benchmark in the industry is to spend about
10% of your annual turnover in communication.
The highest performing brands in the world, like Salesforce for instance,
or like Apple, would spend even more of their annual turnover in communication.
But in general what we see is between 3 and 10 per cent,
and in Brussels in particular we are usually under 3%.
And why is it necessary to slightly increase your budget
especially if you are aiming at the European elections?
because the more you spend, the better you are,
and the better you are the more people recognise you.
So it becomes much easier to defend
whatever position you have once people already know you.
For example if you have a €1 million turnover of budget for an NGO
10% is a 100K. A hundred thousand Euros.
That's more or less one full time employee and €50,000 of budget you can spend
on hiring freelancers or service providers or buying tools.
That's not that much.
Or it's about two full time employees with €10,000 of additional budget.
So even with 10% of your entire turnover per year
you are still only dedicating one or two employees to work on that.
The rule is simple, the larger the spending
the more your organisation will be known.
If you don't spend money on communication, no one will know what you are doing.
So spending more means it's easier to find members when you are an association.
It's easier to convince stakeholders when you need to influence them
or policymakers, in particular if you're lobbying here.
It's easier to get press coverage or attract good employees.
Good employees join the brands they like already.
If you do not have the budget, and that will be the case for some of the viewers,
well you will have to be much more creative and strategic.
So you will probably have to follow the series from the beginning to the end
and really think about solutions where you don't need to spend money on providers
or to hire people to do the work in-house, because you will have to do the work yourself
If you follow carefully - my promise to you is that you will understand
a lot more about communication
and how to do that effort with the smallest possible budget.
Thank you very much and see you next week for the next video.