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 - Industry Investment Chapter
Capital intensity measures the amount of labour used to provide industry services compared with capital costs. To calculate capital intensity, IBISWorld uses data from the industry cost structure. Depreciation is used as a proxy for capital, while wages are used as a proxy for labour. In 2015-16, depreciation is estimated to account for 2.4% of industry revenue, with wages at 59.9%. These show that for every dollar required for wages, approximately $0.04 will be spent on the use and replacement of computers and equipment in the industry. This reflects a low capital intensity level.
Like most service-based industries, successful PR operators offer significant customer service, often on a face-to-face basis... purchase to read more