There is significant growth in PR agency revenues across the world

According to a recent study of the global public relations industry, there has been a significant gain in PR consultancy revenues across the world. The report from the International Communications Consultancy Organisation (ICCO), shows that in some parts of the world (Brazil, Russia, India and Australia) consultancy revenues expanded by around 20 per cent. Northern Europe, the Nordics, Turkey and the US grew by up to 10 per cent. However, the Euro crisis is having some impact, particularly in Southern Europe. There was a decline of as much as 20 per cent in Portugal, Spain and Slovenia.

The generally positive figures reflect a rebound in the global economy after the crises and collapses of 2008. Virginia Hague. executive director at ICCO says: “Business performance in 2010 and again in 2011 has been buffered by more resilient than expected financial markets and rapid growth in the consumption of digital media. Despite a persistent Eurozone crisis, some budgetary setbacks for the US economy and the nuclear disaster in Japan in 2011, the world economy grew by an estimated 3.8 per cent.”

Growth

Source: The ICCO World Report 2012

Looking at the UK, Hague says that London continues to “flourish” as an international hub for PR campaigns. A core part of the UK’s success Is down to consumer/brand marketing activity, from which UK PR firms derived one third of their revenues in 2011. This area should expand even further in 2012, partly boosted by the 2012 Olympics.

There is one particular issue of concern for the worldwide PR industry, and that is an enormous staffing problem. Hague says the problem for many PR organisations is finding ways to downsize their personnel while trying to attract and retain the right talent.

Looking at how national employment levels present both opportunities and threats for PR firms, Hague says: “On the one hand, high unemployment rates mean wider availability of talent and workers willing to accept lower compensation. It can also mean the ‘right’ talent is less willing to leave an existing job owing to greater insecurity about the market or because a current employer has gone to extra lengths to retain that person. On the other hand, low unemployment produces a situation in which there are not enough workers to meet hiring needs, and salaries become more expensive. It may, however, allow skilled professionals the flexibility to pursue their interests and change jobs in the right offer comes along.”

Unemployment

Source: The ICCO World Report 2012

The table shows the most recent available unemployment figures for countries studied for the report. Spain and Portugal have two of the highest unemployment rates, where fiscal collapse has resulted in a majority of consultancies operating on smaller budgets and so unable to take advantage of the number of people looking for work. Countries like Austria and Switzerland have the opposite problem. High employment levels make it exceptionally difficult to staff PR firms.

Methodology
 

The ICCO World Report 2012 includes data from national PR trade associations in 23 countries spanning Europe, North and South America and Asia-Pacific. Data was collected from April to June 2012 through a written questionnaire.

Complete information and commentary can be found here. Past reports can also be downloaded from the ICCO website.