2. INTRODUCTION Public relations in Spain Activity that has been entering in the Spanish market in a consistent manner One of the fastest growing in recent years There is still a long way to walk before its full recognition and consolidation. Activity required by enterprises

3. SOME HISTORY General Franco’s dictatorship from 1939 to 1975 prevented the possibility (at least from the end of the second world war) of any public relations in the strictest sense. Public Relations appeared in Spain in 70s with the arrival of democracy. First PR companies were born with the support of Advertising Agencies, American multinationals and Public administrations. Arising and consolidating of many companies during 80s and 90s.

5. SECTOR SITUATION Ranking of the best communication and PR consultants in Spain according to the volume of business: 1. Burson-Marteller 2. Grupo Sanchís Comunicación 3. Weber Shandwick Ibérica 4. J.A. Llorente & Cuenca 5. Comunicación Empresarial Porter Novelli 6. Ketchum S.E.I.S. 7. Inforpress141 8. Bates Comunicación

6. SECTOR SITUATION Continuing with the research of The Association of Consultant Enterprises in Communication and PR 100% of agencies surveyed agreed that the activity of communication and public relations will increase in coming years Actually 6 percent of the total investment in advertising and corporate communication is spent in public relations. For the future it is expected investments of 17 percent, almost three times more.

8. SECTOR SITUATION

9. SECTOR SITUATION

10. SITUATION IN FINANCIAL CRISIS Following the announcement made at the last Council of Ministers, the Ministry of Presidency of Spain published the Plan of Institutional Communication and Advertising Public Relations suffered shock: 28 campaigns designed to 2008 N ow 13 (less than ten percent of the total claimed the services of PR agencies) Only 9.7% of the 134 campaigns that will launch the Government of Spain during 2009 are related with public relation = sharply contrast with the 17.4% recorded during 2008 Worrying situation for many consultants

11. FUTURE SITUATION Communication and public relations in Spain still have a long way to go, many hurdles to overcome market and much to gain. The challenge is to know how to identify customer needs and offer creative solutions and consistent with a high added value and a good return on their investment. The public relations sector in Spain is growing slowly. 72% of Spanish companies have increased significantly the budget for this area in the past three years. (research : "The State of Public Relations in Spain”)

12. FUTURE SITUATION But… There are still many companies, which ignore part or all of corporate communication. 58% of companies still do not have hired a public relations area 22% does not have an internal communications department. 27% of companies operating in Spain does not currently have any of the two strands.

13. FUTURE SITUATION Progressive importance and independence of the role of communication in the company Clearly reflected in that 71% of business communication department reports directly to the general direction, rather than sales or marketing department, as was the general trend in the past. Only 17% of these departments are still reporting to marketing. This is a trend that has been consolidated in absolutely every business.

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