With advertising schedules on the wane, more and more marketing dollars are flowing to PR agencies. But whether agencies are capitalizing on the trend is another story.
▶ A New Bill for PR? From late December through June, top-line revenue grew for 74 percent of PR agencies responding to an exclusive study conducted by Gould+Partners. However, monthly retainers grew for just 33 percent of the agencies responding to the survey. “The PR industry continues to grow, but the majority of firms are not raising their billing rates and/or retainers proportionately when they give raises,” said Rick Gould, managing partner of Gould+Partners. The study includes responses from 46 PR agencies, with total net revenue of $400-plus million in 2013. Highlights from the survey are below.
METHODOLOGY: The objective of this survey was to determine key trends in the industry geared toward growth, increased labor costs and resulting increase/decrease in operating profit.
This article originally appeared in the September 8, 2014 issue of PR News. Read more subscriber-only content by becoming a PR News subscriber today.