PRCA Agency Barometer Report: Client budgets increasing as PR emerges from pandemic
Half (50%) of client budgets increased last year as the PR agency sector adapted to the pandemic, according to the PRCA’s 2022 Agency Barometer Report.
The nationwide report is a measure of the industry’s mood and expectation. This year’s research offers an upbeat assessment of a growing industry emerging from the economic and societal challenges of the recent past.
The study revealed that, on average, 63% of income for UK PR agencies was derived from retained clients. Nevertheless, when it came to new business income, 19% of agencies found new funding solely from new clients, 22% from existing clients, and 60% from a mixture of both. In terms of new business, most agency leaders described their agency as “busy” or “extremely busy.”
Many of the thought-leaders surveyed by insights agency, Perspectus Global, on behalf of the PRCA believe that recent events have strengthened the value of PR in the business community. More than half (51%) of agency leaders were optimistic about the industry in the next 12 months.
Given the prevailing optimism surrounding the industry, it’s natural that over half of companies (52%) believe that staffing numbers will increase. According to the survey, there’s been a 50% growth in freelance staff employed by UK PR Agencies over the past twelve months and more than one in ten (13%) agency leaders claim they are using more freelancers as they prefer the business model.
However, the future is not as positive for all leaders. One in five agency leaders are concerned about their business. Worries include fears relating to the broader economy and troubling practice of over-servicing. The latter has been a consistent blight on the industry and is the subject of a new PRCA member consultation.
36% of the agency bosses polled said they are marginally over-servicing more in the last year while 17% affirm that in the last 12% they have increased their levels of over-servicing significantly.
PRCA Director General, Francis Ingham MPRCA, said:
“This report paints a highly positive but also highly realistic picture of our industry. This past period has obviously been tumultuous for everyone in society. But PR and communications has emerged from it stronger than ever. The fundamental strength of the profession has been proved. Its incredible value to every organisation has been established beyond doubt. And now we are back to strong growth. Growing budgets once more. Growing teams once more.”
Study of 107 UK PR agency owners, C-suite executives, and financial decision makers, conducted by Perspectus Global and commissioned by the PRCA, in November and December 2021.
