Good publicity: Large PR firms gain economies of scale through mergers and acquisitions

The Public Relations Services industry has performed well over the past five years, benefiting from mixed consumer sentiment and flat business profit growth. While marketing budgets tend to be one of the first items targeted in cost-cutting efforts, public relations (PR) services are often seen as being 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. This, along with a longer-term trend towards more below-the-line marketing methods, is expected to increase industry revenue at an annualised 4.0% over the five years through 2017-18...read more.

Industry Statistics & Market Size
Revenue
$565m
Annual Growth 13-18
4.0%
Forecast Growth 18-23
Profit
Employment
4,743
Businesses
444

Industry Threats & Opportunities

  • Industry profit has steadily increased over the past five years due to strong demand
  • Activities such as viral video production have blurred the line between PR and advertising
  • Larger players are expected to gain greater economies of scale through mergers and acquisitions
  • Industry Report - Industry Analysis Chapter

    The Public Relations Services industry is partly counter-cyclical, and has benefited from fluctuating business profit and mixed consumer sentiment over the past five years. Due to some uncertainty across the economy, some client companies and organisations have preferred PR activities to advertising campaigns. A growing proportion of marketing budgets has been allocated to public relations, rather than traditional media advertising. This has also been a result of media fragmentation, which has made audiences harder to reach and has prompted marketers to pursue more targeted communication methods. Com...purchase to read more.

    Additional Insights for the Public Relations Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Public Relations Services Industry are

  • Highly trained workforce
  • Having a loyal customer base
  • Optimum capacity utilisation
  • IBISWorld analysts also discuss how external factors such as Demand from advertising agencies and Demand from internet publishing and broadcasting in the Public Relations Services industry impact industry performance..

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    What's in this report

    What is the Public Relations Services Industry?

    Public relations agencies manage communication between an organisation and its public and stakeholders to promote favourable relationships and portray a desired image. This includes communication with the general public, employees, investors, customers, analysts, governments and other related parties. In contrast to advertising, PR campaigns aim for exposure through public interest and news items rather than paid advertisements to give their message third-party legitimacy.

    Industry Products
  • Consumer PR services
  • Business-to-business communications services
  • Crisis communications services
  • Public affairs communications services
  • Financial PR services
  • Other PR services
  • Social media communications services
  • Industry Activities
  • Public relations services
  • Image promotion services
  • Lobbying services
  • Political consulting services
  • Issues management services
  • Crisis communications services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from advertising agencies
  • Demand from internet publishing and broadcasting
  • Total business profit
  • Consumer sentiment index
  • Demand from business process outsourcing in Australia

  • Current Performance
  • Revenue and profit growth
  • Media and PR trends
  • Other key factors
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue growth drivers
  • Structure and competition
  • New PR demands
  • Table: Public Relations Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Public Relations Services Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Mining
  • Finance
  • Professional Services
  • Advertising Agencies

  • Key Selling Industries
  • Advertising Agencies
  • Computer and Computer Peripheral Wholesaling

  • Products & Services
  • Consumer PR services
  • Public affairs communications services
  • Social media communications services
  • Financial PR services
  • Other PR services
  • Business-to-business communications services
  • Crisis communications services
  • Chart: Public Relations Services Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Commercial and business sector
  • Government sector
  • Non-profit sector
  • Other sectors
  • Chart: Major Market Segmentation for the Public Relations Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Public Relations Services

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Public Relations Services Industry

  • Industry Globalization
    WPP AUNZ LTD, Omnicom Media Group Australia Pty Ltd,
  • Table: WPP AUNZ LTD - financial performance
  • Table: Omnicom Media Group Australia Pty Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Public Relations Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Public Relations Services Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Astroturfing
  • An artificial grassroots movement. In PR, this relates to communication by a PR agent on behalf of a client, often through social media, under the guise of an independent individual's opinion.
  • Below-The-Line Advertising
  • Promotional activities that reach consumers more directly, including direct mail, text messages and email.
  • Main Media
  • Incorporates advertising in the traditional media areas of TV, radio, newspapers and magazines.
  • New Media
  • Digital media that includes internet, website, smartphone and tablet media services and advertising.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Public Relations Services market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Public Relations Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Public Relations Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Public Relations Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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