Good relations: Growing corporate profit will enable marketing budgets to continue expanding

The Public Relations Firms industry experienced comfortable growth over the five years to 2017. As economic conditions have improved, industry revenue has increased due to client businesses increasing their marketing expenditure. Industry operators have also benefited from the shift to digital media in recent years. Over the five years to 2022, PR firms will continue to benefit from rising marketing budgets. The expansion of niche and social networking services and the continued development of mobile media are expected to contribute to relatively strong growth. In addition, the industry's largest operators are expected to remain active in their acquisition of mid-sized niche firms, as global advertising agencies look to diversify their service offerings...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Digital media has become a prominent force within the industry during the five-year period
  • Due to the influx of a more specialized workforce, total wages increased over the past five years
  • Downstream clients will invest in PR campaigns to build brand loyalty among consumers
  • Industry Report - Industry Investment Chapter

    The Public Relations Firms industry has low capital intensity because it primarily incurs labor costs. IBISWorld estimates, for every $1.00 spent on wages, industry operators are expected to spend $0.02 on capital. Similar to many service industries, public relations (PR) firms rely less on capital instruments for operations and more on highly skilled labor. PR employees typically have specialized skills in corporate communications, marketing, writing and relationship management. Thus, average wages tend to be high in PR agencies. Furthermore, wages as a share of revenue have been rising over the past five years to 46.0% in 2017, while depreciation has declined to 1.0%. The...purchase to read more.

    Additional Insights for the Public Relations Firms Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Public Relations Firms Industry are

  • Degree of globalization in the firm
  • Having a good reputation
  • Ability to quickly adopt new technology
  • IBISWorld analysts also discuss how external factors such as Total advertising expenditure and Corporate profit in the Public Relations Firms industry impact industry performance..

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    What's in this report

    What is the Public Relations Firms Industry?

    Public relations (PR) agencies manage the communications between an organization and the public to promote favorable relationships and portray a desired image. This includes communication with the general public, employees, investors, customers, analysts and other stakeholders. In contrast to advertising, PR campaigns aim for exposure through public interest and news coverage, rather than paid advertisements, to give their message third-party legitimacy.

    Industry Products
  • Corporate and lobbying services
  • General/full PR services
  • Media relations
  • Event management
  • Industry Activities
  • Public relations
  • Lobbying
  • Image promotion
  • Political consulting
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Total advertising expenditure
  • Corporate profit
  • Consumer spending
  • Number of businesses
  • External competition for the Public Relations Firms industry

  • Current Performance
  • Social media growth
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Social platforms provide growth opportunity
  • Media convergence
  • Growth in specialization
  • Table: Public Relations Firms Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Public Relations Firms Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Manufacturing
  • Advertising Agencies
  • Public Administration

  • Key Selling Industries
  • Computer Stores
  • Furniture Stores
  • Office Supply Stores
  • Real Estate and Rental and Leasing

  • Products & Services
  • General/full PR services
  • Corporate and lobbying services
  • Media relations
  • Event management
  • Other
  • Chart: Public Relations Firms Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retail
  • Other client industries
  • Telecommunications and Information technology
  • Health and medical services
  • Automotive
  • Banking and finance
  • Chart: Major Market Segmentation for the Public Relations Firms Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Public Relations Firms

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Public Relations Firms Industry

  • Industry Globalization
    Omnicom Group Inc., The Interpublic Group of Companies Inc.,
  • Table: Omnicom Group Inc. - financial performance
  • Table: The Interpublic Group of Companies Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Public Relations Firms Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Public Relations Firms Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Corporate profit (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
  • Promotional activities that reach consumers more directly, including direct mail, text messages and e-mail.
  • Blog
  • A type of website maintained by an individual with regular entries of commentary, descriptions of events or other material.
  • Digital Agency
  • An agency that provides creative and technical development of internet (and mobile device) based marketing campaigns.
  • Microblog
  • A very short blog, often 140 characters or less, as is the case with Twitter.
  • New Media
  • Digital media including internet and website advertising, cell phones and iPods.
  • Traditional Media
  • Media formats including TV, radio, newspapers and magazines.
  • Twitter
  • A social network that enables members to micro-blog and have their updates broadcast to friends or constituents.
  • What Our Customers Say

    Why buy this report?

    The Public Relations Firms Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Public Relations Firms:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Public Relations Firms market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Public Relations Firms, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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