Agency Watch: Profitability Returns to ’08 Level


StevensGouldPincus’ annual Best Practices Benchmarking survey of PR agencies, released July 2011, finds that agency profitability in 2010 rebounded from a 2009 four-year low of 13.5% of revenues back to exactly what it was in 2008, 15.6%.

In addition, SGP “Model Firms”—12 agencies consistently meeting or exceeding the SGP model performance target criteria—continue to remain far above average during tough times. In 2010, they averaged an operating profit margin in excess of 20%, partly due to their ability to hold professional staff salaries to under 40% of revenues, total labor cost at 50% and operating expenses at under 30%.





Comments Off

Deals of the Week

Get $150 Off PR News' Social Media Summit

Social Media Summit with Taste of Tech 2015Join PR News at the Marriott Marquis in New York on Oct. 5 for the Social Media Summit, where expert communicators will share in-depth case studies from their social efforts. “Taste of Tech,” a unique element of the Summit, will feature partners who “get PR” and can help you make your social initiatives more impactful.

Use code “150” at checkout to save $150 on the regular rate.

Get $50 off PR News' Crisis Management Guidebook

PRNews-Crisis-guidebook-180x150-sb

Crisis management is an art, not a science. In this edition of PR News’ Book of Crisis Management Strategies & Tactics, you will discover many different views on this art, and you are certain to find takeaways that will transform the way your organization handles crises. 

Use code “50off” at checkout.

Save $100 on a PR News Subscription

cover5.18

 

Let PR News become your weekly, go-to resource for the latest PR trends, case studies and tip sheets. Topics covered include visual storytelling, social media, measurement, crisis management and media relations.

Use code “SUBDEAL” at checkout.

Comments are closed.