NEW YORK—More than four out of five public relations firms generated top line growth in 2005 and even more firms are expecting to increase revenue yet again in 2006, according to a year-end survey of Council of Public Relations Firms members.
The Council’s quarterly “quick survey” revealed that 83 percent of participating firms are projecting revenue growth of approximately 12 percent for the year ending 2005. Looking ahead for 2006, 95 percent of firms are projecting revenue growth, at an average rate of more than 14 percent.
The top performing industry sectors, according to participating firms, were consumer products and services and healthcare, with professional services also showing steady growth.
“Clients are increasingly finding that public relations firms can fulfill a myriad of communications needs; this trend should continue as the marketing landscape continues to adapt to the 21st century consumer,” says Kathy Cripps, president of the Council of Public Relations Firms. “The industry has been gaining momentum for the last three years and all signs point to another strong year ahead for the public relations industry.”
Many of the quick survey’s finding confirm a study conducted last year by private equity firm Veronis Suhler Stevenson, which forecast PR spending to grow by almost 9 percent a year through the end of the decade.
Other key findings from the Council’s quick survey include:
• Nearly 90 percent of firms are currently hiring
• 57 percent of firms added staff in 2005
• The top priorities and concerns for firms are generating new business and staff recruitment and development.