Public Relations Firms in the US
Public relations (PR) firms manage clients' image, publicize a product or service and communicate with stakeholders. The industry has faced moderate volatility as it is affected by consumer trends and corporate budgets. PR firms faced some revenue volatility, as it experienced revenue losses in...
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| Format: | Market Research |
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| Language: | eng |
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| Summary: | Public relations (PR) firms manage clients' image, publicize a product or service and communicate with stakeholders. The industry has faced moderate volatility as it is affected by consumer trends and corporate budgets. PR firms faced some revenue volatility, as it experienced revenue losses in 2019 and slow growth in 2020. Agencies are affected by fluctuations in the need for public service campaigns and the broader business cycle. Advertising expenditure increases when corporate profit and the number of businesses grow. Higher levels of consumer spending also influence demand for PR services, although it is not always an accurate indicator. These trends have led to revenue growing at a CAGR of 2.4% to an estimated $20.4 billion, including an incline of 0.5% in 2024 alone, as profit reaches 14.0%.
The pandemic affected client industries, hurting demand for PR services. During this time, agencies experienced an uptake in demand from healthcare companies, driven by a need to distribute information about COVID-19 and its vaccine. Similarly, consumer goods companies benefited from the pandemic as spending shifted from activities and travel to purchasing products. Sectors that experienced demand drops were forced to cut costs, lowering budgets for PR services. Over recent years, PR firms have expanded their capabilities across social media platforms, combining their usage with data analytics tools and improving the effectiveness of campaigns.
Moving ahead, demand for PR services is poised to continue to grow at a CAGR of 1.8% to an estimated $22.2 billion. A positive economic outlook benefits agencies as clients increase their marketing budgets, driving the need for new campaigns. Similarly, consumers are becoming more aware of a brand's values, purchasing goods and services from brands whose values align with their own. This will enhance demand for PR services as brands aim to reposition themselves. The United States will be affected by major events in the coming five years, including a presidential election and the FIFA World Cup, which require PR services and will strengthen the average profit margin. The increasing use of data analytics and digital services will drive the need for PR services, contributing to industry growth. PR firms looking to remain relevant will focus on diversifying their product portfolio and improving integrated marketing capabilities, becoming a one-stop shop for marketing, advertising and PR services. |
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