PMK/HBH Competition
Now Viewing PMK/HBH's competition in: Public Relations (primary)
Recent Developments
Revenue Growth Continues Despite Economic Weakness - Revenue at US PR firms increased an average of 7.5 percent in first quarter 2008 compared to first quarter 2007, according to the Council of Public Relations Firms. US economic weakness doesn't seem to be significantly impacting the PR industry: about 70 percent of firms surveyed expect revenue for all of 2008 to exceed 2007 revenue.
More Organizations Pay for News Coverage - The number of PR and marketing professionals willing to pay for news coverage is increasing, according to PR agency Manning Selvage & Lee (MS&L). Of the 252 chief marketing officers and marketing directors who responded to the MS&L 2008 Marketing Management Survey, 19 percent say that their organizations had bought advertising in return for a news story, up from 17 percent in 2007. Many industry experts say that paying for news coverage may reduce the credibility of both the publications providing the news coverage and the organizations paying for it.
PR Firm Sued Over Press Releases - US radio network Westwood One is suing PR firm TransMedia Group and its client Pompano Helicopter for $42 million. Westwood One alleges that the defendants tried to reduce Westwood One stock prices and injure its reputation through a series of defamatory press releases. Experts say the litigation could have a negative effect on PR firms.
Competitive Landscape
Demand is driven primarily by the health of the US economy and corporate profits. The profitability of individual companies depends on the value of the creative services delivered and efficient use of personnel. Large companies have advantages in having multiple subsidiaries that offer different marketing services to large customers and some economies of scale in marketing. Small companies can compete successfully by specializing in a particular industry or geographic market. The PR industry is labor-intensive: average annual revenue per employee is less than $150,000.
Public Relations Industry Forecast
from Hoover's/D&B subsidiary First Research
The output of US advertising and related services, including public relations, is forecast to grow at an annual compounded rate of 4.5 percent between 2008 and 2013.
Advertising and Related Services Growth Slow and Even
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.
First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.
- Demand: Depends on business activity
- Need efficient use of expensive labor
- Risk: Slow economy cuts business needs
Industries Where PMK/HBH Competes
- Business Services
- Advertising & Marketing
- Public Relations (primary)
- Sales Promotion & Specialized Marketing Services
- Talent & Modeling Agencies
- Trade Show Exhibition, Event Planning & Related Support
- Advertising & Marketing
