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 $200 Off PR News' Digital PR Conference

 digitalpr2015-180x150_updated
Join us June 1-3 where you'll hear from top brands such as Walmart, Miami Heat, Verizon and Ritz-Carlton on PR and communication best practices for the next wave of digital trends.

Use code “200off” at checkout to save $200 on the regular rate.

Get $50 off PR News' Book of Employee Communications

employeecommunications-180x150

In this 5th volume of PR News’ Book of Employee Communications, our authors cover more than 45 articles on crisis communications, social media policies, human resources collaboration, brand evangelism and more.

Use code “50off” at checkout.

Save $100 on a PR News Subscription

 

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.