NEW YORK—Despite current economic uncertainties, the majority of U.S. public relations firms believe they are headed for another record year in revenues and profits according to a survey—released before this weekend’s collapse of Bear Stearns—by StevensGouldPincus, a merger and management consultant to the communications industry.
Eighty-three percent of the 156 agencies responding to the survey reported that client budgets have not yet been affected by the current economy and are holding steady. Three out of four (75 percent) said their revenues would increase this year. And 70 percent said that the current economic volatility is having no effect on their bottom line.
The larger agencies, those with net fee revenues in excess of $25 million, were even more optimistic. A hundred percent of these agencies said that client budgets were holding steady and 88 percent predict increased 2008 revenues.
“The good news is that client budgets are strong, agencies continue to grow and most see their bottom line heading into record territory,” said Art Stevens and Rick Gould, co-managing partners of StevensGouldPincus.
California PR agencies are slightly less certain that the current economy won’t affect them negatively but the majority—between 84 percent and 93 percent—believe client budgets will hold steady. Midwest PR agencies will show the largest increase in revenues (with 88 percent predicting growth) while agencies in northern