Marketing, Ad Agencies Now Calling Themselves PR Firms?

I've noticed an uncomfortable trend.  Perhaps you have too.  Advertising agencies and marketing firms, marketers, etc. have suddenly become PR firms.  Now I'm not against that, as long as they are what they say they are.

This new situation is certainly creating confusion with clients.  Now, if a good old fashioned PR firm is asked to bid for some work against ad agencies - which are now saying they are PR firms - the client expects the same flash and pizazz, highly expensive presentation in order to win the bid.  This is disheartening.   

In today's PRSA Issues and Trends:  "Doug Spong, president of Carmichael Lynch Spong, said the process has changed because of a number of factors, including the economy. He said the attention PR continues to get as an effective alternative to advertising brings to the lot potential buyers who spend a lot of time kicking tires but don't always sign on the dotted line.

'It's good that marketers are looking at PR as a way to make their limited dollars stretch further, but it's a double-edged sword," Mr. Spong said. "They're acting like it's an ad-agency search and as if PR firms are $400 million-billings ad agencies with 15 people in research and planning, a 50-person creative department and 12 people in broadcast production. Most PR firms aren't staffed like that.' "

What do you think of this new trend? I welcome your input.