â–¶ Agency Woes: An annual Advertising Age report for 2009 reveals that revenue and jobs are at a 16-year low in the agency sector. Revenue for U.S. marketing-communications agencies—advertising, marketing services, media, health care, and public relations—tumbled 7.5% to $28.4 billion in 2009. Hopefully the slight increase already observed in 2010 is the start of a an upward trend. Findings include:
• PR’s revenue slice of the $28.4 billion dollar pie was $3.08 billion, an 8.9% drop from 2008. This is the fourth-biggest drop after Promotion (13.1%), Media (10.1%) and Advertising (9.3%).
• PR agencies had the greatest number of job losses since 2005, with 3,500 job losses in 2009. Since the beginning of the recession, 4,400 PR agency jobs have been cut.
• Edelman was ranked first among PR agencies in 2009 worldwide revenue with around $440 million (a 2.3% drop). Omnicom’s Fleishman-Hillard placed second with $405 million (% change undisclosed), and WPP’s Burson-Marsteller third with $385 million.
Source: Ad Age