Industry Analysis & Industry Trends
The economic downturn did not affect the Public Relations Services industry as severely 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 for money than media advertising. As a result, spending on PR tends to be less volatile and holds up slightly 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. This, along with a longer term trend towards more below-the-line marketing methods, is expected to result in industry revenue growing at a stronger rate than that of the Advertising Services industry... purchase to read more
Industry Report - Industry Investment Chapter
The capital to labour intensity measure outlines the amount of labour used in provision of services by this industry as opposed to capital costs. Using wages and depreciation data from the cost structure section of this report as proxies, the ratio is calculated as 1:41.4, meaning that for every dollar spent on the use and replacement of facilities and equipment, $41.40 is spent on wages. This reflects a low level of capital intensity.
Labour intensity factors
Like most service industries, successful operators in the industry offer high levels of customer service, often on a face to face basis... purchase to read more