By Arun Sudhaman
GLOBAL: A comparison of the PR revenue results of the key holding groups
reveals that Edelman comfortably outperformed its rivals in the first
half of 2010, a period where most networks saw a return to
growth.
The graph below, produced in conjunction with chartered accountant and chief executive of PR distribution specialist RealWire Adam Parker,
offers a useful way of illustrating how PR operations at the key
holding groups performed over the past three halves. While its rivals
grew their PR income by low single digit percentage points in the first
half of this year, Edelman surged by 16 per cent.
[* Chime's figures are not like-for-like. Interpublic figures are
for CMG division, which includes PR and event marketing. Edelman's
figures based on submitted financials.]
Compared to WPP, Omnicom and Interpublic Group, Edelman’s growth
clearly comes off a smaller base. Yet it remains significant, and there
is little to suggest that the bulk of its rivals at an agency level have
seen a comparable upturn.
Last year’s star perfomer Chime Communications, which delivered a
2009 performance of impressive growth, cooled down somewhat to five per
cent in 1H 2010, although it should be noted that this is the only
figure which is not reported on a like-for-like basis.
Huntsworth Group, meanwhile, saw its PR revenues contract two per
cent in the first half of this year. This differs from the headline
Huntsworth figure of 13.7 per cent growth because only PR brands
Grayling, Red Consultancy and Citigate Dewe Rogerson – and not
Huntsworth Health – are included. This is consistent with the other
holding groups, which do not include healthcare marcomms within PR
revenues.
In addition, the figure of two per cent is a like-for-like one that
excludes currency fluctuations and acquisitions/disposals. On this
basis, Huntsworth’s overall revenues grew by 0.4 per cent in the first
half of 2010.
A better understanding of Huntsworth’s figures can be gleaned from
within its interim report, which states that Citigate and Red grew their
revenues this year. However, Grayling – which accounts for
approximately two thirds of PR revenue – dropped by almost five per
cent, no doubt a result of the brand rationalisation that combined three
agencies into one at the beginning of this year.
It is also worth noting that Huntsworth is predicting overall revenue
growth of more than seven per cent for 2010, and already has 89 per
cent of the year’s revenues committed. So, a strong second half can be
forecast.
Judging from the results of the other groups, it is probably safe to
conclude that the global PR market is growing in the low single digits
for the year so far. Accordingly, Edelman puts its success down to
aggressive acquisition of market share.
Using reported figures from the 2009 calendar year, meanwhile, it is
possible to calculate that the global PR market accounted for by these
six groups is worth almost $4 billion. Bear in mind that some important
players, such as Publicis Groupe, Havas, and Next Fifteen are not
included. The first two do not break out PR, while Next Fifteen reports
on a different schedule.