Rough Financial Patch for PR Agencies


Exclusive report produced by StevensGouldPincus on behalf of PR News shows disappointing financial results for the PR field this year, with revenue per professional staff down in every category.

▶ A Brutal Winter for PR, in More Ways than One: It’s not pretty earnings-wise for PR agencies right now. Operating profit this year fell to an average of 16.1%, from 18.8% last year, according to an exclusive report produced by StevensGouldPincus on behalf of PR News. The report is based on the first 50 responses from SGP’s annual best practices benchmarking survey. Among the first 50 respondents, revenue ranged from under $3 million to $10 million-plus. Rick Gould, managing partner, who put the study together, said the decrease in earnings is due to agencies mismanaging their fees as they relate to spikes in staff salaries. PR agencies “have to give good people raises,” Gould said, “but won’t concurrently raise fees for clients” due to a fear of pushback. One remedy: be more transparent with both existing clients and prospects. “You need to show clients how you’re paying your staff and why you need to raise their billing rates and increase their fees, which should go right to the bottom line,” Gould said.

 charts

Source: StevensGouldPincus

This article originally appeared in the March 31, 2014 issue of PR News. Read more subscriber-only content by becoming a PR News subscriber today.

 


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.