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Coming out of this recession, PR agencies fall into 3 categories

Seems to me that PR agencies fall into 3 categories in coming out of this recession. Category 1 Those that have performed well and retained pre-recession revenue levels/ shown a small growth. These agencies have tended to have strong crisis/issues management teams, or have been ahead of the curve in their digital offering. There also seems to have been a tendency for agencies for an international offering to have been more robust than those with only a UK/US presence. My finger in the wind prediction is that less than 10% of PR agencies are in this category. Category 2 Agencies whose income has decreased by between 10 and 30%. Fee reductions, client losses and client over-servicing have lead to significant revenue reductions. Many of these agencies have made redundancies (as you would expect) but they are reasonably robust companies who are decently placed to take advantage of any upturn. I reckon 60% of agencies are in this category. Category 3 Agencies for whom the floor has given way. Often mid to small sized operators, whose niche has been hit by the recession. These guys are in no position to argue with their clients over fee reductions (they fear losing the accounts), and as a result yields have decreased and over servicing has increased. The best people may have moved on and some will have been made redundant. Some of these agencies have quietly gone under, or as it is now called, “gone virtual”, and some are struggling on, ever more desperately waiting, hoping for the upturn. So my percentage calculations mean I reckon 30% of agencies are in this category. What do you think of my thoughts? Fact, scaremongering or just a load of cobblers?

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