PR consultancies optimistic for 2009

London, 15 January 2009 - The PRCA PR Leaders' Panel has highlighted a general optimism among PR agency managing directors. Over 60% of respondents believed that, relative to 2008, their consultancy turnover would remain the same or grow in 2009. The industry experts were also optimistic about profit margins, with almost 50% believing that they would either maintain or grow their margins this year.

Francis Ingham, PRCA director general commented “Many clients have become more cautious about committing budget in the current climate. We are seeing the lag from pitch to conversion to commencement increasing and a shift from retainers to project work. However all of this should be put in context and the PR industry has performed fantastically over the last five years in spite of inconveniences such as TUPE”

Jonathan Choat of Nexus PR commented “Excessive caution is the death of spontaneity and robust marketing, both of which are as important now as when the economy was growing. Companies who invest in their reputation and profile will see it pay dividends.”

Francis cautioned clients against trying to drive down the price agencies quote “Clients who find agencies are willing to drop their rates should question why the agency is willing to do so and whether the quality of work will be affected. Before taking on a consultancy you should request confirmation that it is a well run and viable business. PRCA members have to go through the Consultancy Management Standard, for example, ensuring that their business models are sustainable.”

- ENDS -

Notes to editors

1. HOW DO YOU EXPECT YOUR TURNOVER IN 2009 TO DIFFER FROM YOUR TURNOVER IN 2008?

  • Decrease >20%:  4.65%
  • Decrease 11-20%:  4.65%
  • Decrease 1-5%:  4.65%
  • Decrease 6-10%:  25.58%
  • Increase >20%:  6.98%
  • Increase 11-20%:  2.33%
  • Increase 1-5%:  11.63%
  • Increase 6-10%:  13.95%

2. WHAT DO YOU EXPECT TO HAPPEN TO YOUR PROFIT MARGINS?

  • Decrease significantly 13.95%
  • Decrease slightly 37.21%
  • Increase significantly 2.33%
  • Increase slightly 20.93%
  • Remain the same 25.58%

Quotes from PR Leader Panel Members

  • Kirsty Barr, mi-comms PR: “We noted initial concern and client cutbacks in early Q4 last year, which moved towards a generally more optimistic and 'determined' outlook by the end of 2008”
  • Mark Stringer, Pretty Green “During the good times, more people are encouraged to set-up, and there's more competition, squeezing margins. During the bad ones, there's less money and margins are being squeezed. It's about grasping the opportunities and delivering outstanding work.”

About the PRCA

  • The Public Relations Consultants Association (PRCA) is the trade association for the UK PR consultancy industry. 
  • The Association exists to raise standards in PR and to help members be better organisations. 
  • The Association grew by over 33% during 2008 
  • Founded in 1969 the PRCA promotes all aspects of public relations consultancy. 
  • PRCA members differentiate themselves from other PR consultancies by achieving the Consultancy Management Standard (CMS), a professional accreditation that has been adopted by PR agencies in more than 11 countries around the world. 
  • All PRCA member organisations are bound by a Professional Charter and Codes of Conduct.

As part of its commitment to excellence in PR, the PRCA carries out a number of functions:

  • PR training and qualification: the PRCA organises a range of bespoke, inhouse & online courses as well as general training and qualifications. Course subjects range from: how to write a press release: to how to manage your agency. 
  • Find A PR Agency: this free service helps clients find a reputable PR consultancy for their brief. 
  • Industry surveys: the PRCA undertakes a number of surveys every year including the most comprehensive benchmark of industry performance. 
  • Networking and best practice groups: the PRCA organises a number of groups to help members stay ahead of industry trends and raise general industry issues. 
  • Promotes the value of PR and the need for standards: the PRCA provides a strong voice on a range of issues relating to PR. 
  • Lobbies government on key issues: the Association represents members' interests in areas with Government and other relevant organisations such as the FSA.

For more information please contact:
Richard Ellis, PRCA communications manager
T: 020 7233 6026
E: richard.ellis@prca.org.uk

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