NEW YORK–(COMMERCIAL THREAD) – A new study from Davis + Gilbert LLP, widely regarded as the leading law firm among public relations and marketing communications firms, shows marked improvement in financial performance year over year – and a Growing optimism for the future – among PR firms. Specialty companies have been particularly successful, with 100% of companies surveyed in healthcare, technology and business / finance reporting increased profits from 2020, according to the Davis + Gilbert Public Relations Industry 2021 Survey Trends + Highlights.
The full report is available here.
Overall, 77% of responding PR firms plan to increase revenue and 72% plan to increase profits in calendar year 2021 compared to last year. For some, the improvement in financial performance has been substantial. As of August, more than a third of companies reported revenue gains of more than 15% from 2020. The industry is even more optimistic for the year ahead, with 95% of respondents anticipating an increase in income in 2022.
âIt is interesting to note, however, that unlike other segments of the marketing communications industry, public relations M&A activity in the first ten months of 2021 has been relatively stable compared to the previous decade. same period of 2020. This is likely the result of the buyer’s focus on acquiring âhigh growthâ assets, âsaid Brad Schwartzberg, co-chair of Davis + Gilbert’s Corporate + Transactions practice group.
âAn interesting statistic, however, is the increase in transactions involving larger PR firms. Transaction activity for these large firms more than doubled in 2021. This seems to indicate the willingness of buyers to pursue PR firms that have reached a certain level of critical mass, even if their growth has not been as strong. robust than other companies within the marketing services industry, âadded Schwartzberg.
Other takeaways from the report indicate that the size, compensation plans and culture of PR firms have played a role in their success over the past year:
- Cut: For businesses with 30-49 and 50-99 employees, none reported declines in revenue or profits in 2021. For all categories of small and large businesses, at least 10% reported declines in revenue and profit. profits.
- Compensation: 90% of companies with long-term incentive plans saw their profits increase in 2021.
- Culture: Among the companies with the best financial performance, more than 40% have increased their BIPOC staff by at least 5%.
Impact of COVID-19:
57% of those surveyed who have increased their income expect more than half of their workforce to continue working remotely until the end of the year.
The main profitability metrics businesses expect to keep in place relate to managing entertainment expenses, reducing travel, and improving performance and management of current staff.
âThe public relations industry, as a microcosm of society as a whole, has reacted to the lessons learned over the past two years,â said Michael Lasky, president of the Davis + Gilbert Public Relations practice group. âOur annual report provides an overview of how top performing companies have implemented these lessons and incorporated them into their new normal. ”
About Davis + Gilbert
Davis + Gilbert has helped guide the development of the marketing communications ecosystem over the past century. Today, we apply that same big picture to clients in real estate, financial services, hospitality, technology and other service industries across the country and around the world. And it’s not just about the law; With in-depth knowledge of industry issues, our legal strategies work in tandem with business realities to reduce risk and make a real competitive difference. We focus on Advertising + Marketing, Benefits + Compensation, Business + Transactions, Insolvency + Finance, Intellectual Property + Media, Labor + Employment, Litigation + Settlement disputes, confidentiality + data security, private client services, public relations and real estate. Davis + Gilbert is regularly ranked in Rooms United States and The Legal 500 United States. Learn more about dglaw.com.