Industry Analysis & Industry Trends
Mixed economic conditions in the past five years, such as lower consumer confidence and low growth in business profit, have not affected the Public Relations Services industry to the same degree as traditional advertising. While marketing budgets tend to be one of the first items targeted in cost-cutting efforts, public relations (PR) services are often seen as more focused and therefore better value than media advertising. As a result, spending on PR tends to be less volatile and holds up better when budgets are cut. Additionally, some aspects of PR, such as communication with stakeholders, can be crucial in a downturn to allay fears and manage crises... purchase to read more
Industry Report - Starting a New Business Chapter
Barriers to entry are factors that prevent or limit a new operator from entering the industry. Key factors when entering the industry include regulatory requirements, qualifications or educational needs of staff, economies of scale, capital intensity and business networks.
No specific regulatory or staff educational requirements hinder the entry of new firms to the industry. However, staff experience and knowledge are important when establishing and operating a PR firm. Furthermore, the industry has a low capital intensity level as labour inputs are high. Low capital requirements contribute to the industry’s low entry barriers.
Increasing economies of scale provide minimal benefits to the industry... purchase to read more