Client needs forced PR agency Porter Novelli to develop expertise in social media marketing. Just 2 ½ years later, social media work represents about 25 percent of the business in its Austin office.

According to the Austin Business Journal, the agency’s work now includes developing and managing blogs, Facebook, LinkedIn, Twitter, YouTube videos, Webcasts, Web sites and search engine optimization.

Significantly, the company grew 35 percent year-over-year in 2008.

As the article points out, social media is one reason the agency is getting new clients at a time when many businesses are cutting PR budgets.

Small- and medium-sized advertising agencies likewise have an opportunity to grow through social media expertise at a time when many clients are cutting advertising budgets. Social media is going to continue to drive demand, and ad agencies will either lead the way for their clients or be left in the dust.

Don Beehler provides public relations consulting services to small- and medium-sized advertising agencies and businesses.