Agency Health Improves as Billing Rates Rise


Agency Billing Rates Increase: If you’re a PR agency, the following is good news; for their clients, the jury is out. The nation’s PR agencies increased their hourly rates slightly in 2011 according to the second wave of a June 2012 survey released exclusively to PR News by StevensGouldPincus, the merger and management consulting firm specializing in the PR field (see "Charting the Industry: Agency Revenues Reach Four Year High" for more findings).

Based on responses from 105 PR agencies, billing rates are now averaging $517 per hour for CEOs of agencies with $25 million or more in revenues, and $300 among smaller agencies.

Other findings include:

  • Among 13 categories identified, rates are the highest among agencies specializing in sports/entertainment, healthcare and public affairs.

  • Account executives averaged $183 per hour in billings in 2011 versus $178 per hour in 2010.

  • Productivity—measured by billable time utilization—billable time utilization—was far below optimal levels for senior VPs, who billed out only 66% of their yearly capacity of 1,700 hours. However, account executives averaged in excess of 91% in every one of the 13 agency categories.

     


Source: StevensGouldPincus    


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About Scott Van Camp

Scott Van Camp is editor of PR News, an executive-level, reader-supported publication that helps enhance the business impact of PR. Scott has a rich background in both journalism and PR/marketing. He has more than 15 years of experience as a writer/editor at various consumer and trade publications. Scott was with VNU Business Publications for five years, including stints as managing editor at IQ News and Technology Marketing magazines and senior editor at Brandweek. In the PR/marketing sphere, he has served as corporate communications manager at MarketBridge, a marketing and sales consultancy, and as editorial director for the Chief Marketing Officer (CMO) Council. While at the Council, Scott led several high-profile marketing research projects. He has also operated his own communications and media consulting firm, SVC Communications.



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