2016 PR Industry Growth 4.8%, Down From 6.6% in 2015 and 7.8% in 2014
By Matthew Schwartz
NEW YORK, August 16, 2017 — The U.S. PR industry grew by just 4.8%, according to a survey released today by Gould+Partners, the merger and management consulting firm specializing in the PR field. The results of this survey were consistent with the results of the annual Best Practices Benchmarking report released in June, showing that Operating Profit decreased from 15.3% to 15.2% and the Billing/Utilization report issued in July which showed that billing rates did not increase during 2016 at the same pace as salaries and costs.
Based on stats from 226 North American PR agencies, most categories of firms had less growth than the prior year. The $3 Mill to $10 Mill group had negative growth rate of 1.4%. Another interesting stat was the average annual net revenues for each net revenue class. Firms under $3 Mill averaged $1.51 Mill in Net Revenues. Firms from $3 Mill – $10 Mill averaged $6.02 Mill. Firms with more than $10 Mill- $25 Mill averaged just under $14.97 Mill and firms in excess of $25 Mill averaged just over $162.07 Mill, said Rick Gould, CPA, J.D., managing partner of Gould+Partners, who conducted the survey.
The second part of the study focused on industry growth in the 10 regions of our focus and average net revenues for each of the regions.
The survey is the fifth annual poll focused on Net Revenue Growth by Gould+Partners, which has been conducting other industry wide surveys for 20+ years, including the recently released Best Practices Benchmarking Report and the Billing/Utilization Report.
Click on the link to view the full report: Gould+Partners 2017 Net Revenue Growth Report
Rick Gould CPA, J.D.
Gould+Partners provides consulting services for Public Relations Firms and Creative Services Agencies for increased profitability and is the PR industry source for key profitability benchmarking statistics/insights and successful mergers & acquisitions (M&A) transactions. From our experience gathering and evaluating relevant statistics and insights, we are uniquely qualified to advise and counsel our clients on what is needed to grow and become best in class. Consulting Digital and Public Relations Firms to a new level of success is our specialty and privilege.