Public Relations Industry Showing Strong Revenue Gains so far in 2007, According to Council of Public Relations Firms

NEW YORK--(BUSINESS WIRE)--An overwhelming majority of public relations firms are off to a fast start in 2007, according to a business benchmark survey conducted by the Council of Public Relations Firms (Council). Surveyed firms averaged an 8.8% increase in first quarter revenues over Q1 2006. Additionally, 90% of those firms expect revenues to increase again in 2007.
Revenues increased an average of 13.9% in 2006, according to a different Council survey conducted in January.
The sectors generating the most revenue for firms in 2006 were, in order, consumer products and services, technology and healthcare. More than half of firm revenues were generated in marketing communications (51%), followed by corporate communications (26%) and public affairs (11%).
“For public relations firms, these are really good times,” said Kathy Cripps, President of the Council of Public Relations Firms. “The industry as a whole has benefited from the emergence of social/interactive media as a viable channel to reach consumers. Add to that the fact that firms are doing a great job running their businesses, and it’s easy to understand why there has been sustained growth across the industry for the past several years.”
The Council’s Business Practices Benchmarking Study, conducted in March and April, and was completed by 72 public relations firms.
Other findings included:
New business is strong: 73% of firms reported an increase in the number of Requests for Proposals (RFP) in 2006 vs. 2005.
Average profitability increased for the fourth consecutive year: Double digit profit margins were reported.
The U.S. cities with the most representation in the study include, in order: New York, Washington D.C., San Francisco, Los Angeles, Chicago, Boston and Dallas. (This refers to the cities where Council members have offices.)
The Council of PR Firms is comprised of America’s leading public relations firms. Its 100 members represent the premier global, mid-size, regional and specialty agencies across every discipline and practice area. The Council is dedicated to strengthening the recognition and role of public relations firms in corporate strategy, business performance and social education, serving as an authoritative source of information and expert comment and helping set standards for the public relations industry. For more information about the Council of Public Relations Firms, call 1-877-PRFIRMS or visit our website at www.prfirms.org.