The nation’s PR agency field grew by 8.2%, according to a survey released this week by StevensGouldPincus, the merger and management consulting firm specializing in the PR field.
The results of this survey were slightly better than the results of the annual Best Practices Benchmarking report released at the end of May, showing that Operating Profit increased from 18.2% to 18.8% and the Billing/Utilization report issued in mid-June, which showed that billing rates did not increase during 2012.
Based on stats from 218 PR agencies coast to coast and in Canada, the firms between $10 million and $25 million had the largest growth in net revenues at 13.1%. The under-$3 million group had a growth rate of a disappointing 5.0%.
Another interesting stat was the average annual net revenues for each net revenue class. Firms under $3 million averaged $1.7 million in net revenues. Firms from $3 million-$10 million averaged $5.5 million. Firms over $10 million-$25 million averaged just under $15 million and firms in excess of $25 million averaged just over $54 million, said Rick Gould, managing partner and director of the survey, in a news release.
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. Although Edelman participated in the survey, that firm’s stats were excluded because they, admirably, skewed the averages. The results were most enlightening.
The survey is the first annual poll focused on Net Revenue Growth by StevensGouldPincus, which has been conducting other industry wide surveys for 20 years, including the recently released Best Practices Benchmarking Report and the Billing/Utilization Report.
In addition to Rick Gould, SGP Partners include Art Stevens in New York and Mike Muraszko, based in L.A.
StevensGouldPincus is the nation’s foremost and only consultancy exclusively for mergers and acquisitions in the PR, advertising and media industries. SGP also focuses on agency management, profitability and growth.
Edited by Richard Carufel