Communication is key: Global advertising agencies will diversify their service offerings, boosting industry revenue

The Public Relations Firms industry experienced strong growth over the five years to 2018. The industry's performance depends on the number of businesses and the size of company marketing budgets, which are largely determined by the level of corporate profit. As economic conditions have improved, industry revenue has increased due to rising corporate profit and therefore spending on advertising and PR services. Digital media has become a prominent force within the industry during the five-year period. With the rising power of social media, PR agencies are providing clients with targeted campaigns to reach an increasingly fragmented consumer market. Over the five years to 2023, PR firms will continue to benefit from rising marketing budgets...purchase to read more.

Industry Statistics & Market Size
Revenue
$16bn
Annual Growth 13-18
5.2%
Forecast Growth 18-23
Profit
Employment
92,832
Businesses
48,013

Industry Threats & Opportunities

  • PR firms will continue to benefit from rising marketing budgets
  • Due to increases in employment and the influx of a more specialized workforce, total wages are estimated to increase
  • Growing corporate profit will enable marketing budgets to continue expanding
  • Industry Report - Industry Key Buyers Chapter

    The Public Relations Firms industry has a low level of market share concentration. IBISWorld estimates that the four largest PR firms will account for 15.7% of total industry revenue in 2018, which is considered by IBISWorld to be a low level of market share concentration. According to the US Census Bureau, there are a large number of small PR firms, with 87.9% having fewer than 10 employees. At the other end of the scale, there are a small number of large firms that operate on a national and international level. These firms focus almost exclusively on large, high-value clients and are often the subsidiaries of international advertising or brand management agencies. Ove...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 Consumer spending 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
  • General public relations services
  • Lobbying services
  • Media relations services
  • Event management services
  • All other services
  • 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
  • Consumer spending
  • Corporate profit
  • Total advertising expenditure
  • Number of businesses
  • External competition for the Public Relations Firms industry

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

  • Industry Outlook
  • Social platforms provide growth opportunity
  • Service integration
  • 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 public relations services
  • Lobbying services
  • Media relations services
  • All other services
  • Event management services
  • Chart: Public Relations Firms Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Retail and consumer goods
  • Telecommunications and Information technology (TMT)
  • All other private sector clients
  • Nonprofit organizations
  • Healthcare and pharmaceutical market
  • Automotive manufacturers
  • Banking and finance sector
  • All other clients
  • 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
    The Interpublic Group of Companies Inc., Omnicom Group Inc.,
  • Table: The Interpublic Group of Companies Inc. - financial performance
  • Table: Omnicom Group 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
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Corporate profit (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Below-The-Line
  • 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 market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

    IBISWorld industry market research reports enable you to:
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    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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