’99 PR growth up less than thought

NEW YORK: Double-digit growth in US fee income was no big deal in 1999, but the 30% figure that has been regularly quoted is a falsely inflated one, according to analysis by PRWeek in its Agency Rankings 2000 supplement.

NEW YORK: Double-digit growth in US fee income was no big deal in 1999, but the 30% figure that has been regularly quoted is a falsely inflated one, according to analysis by PRWeek in its Agency Rankings 2000 supplement.

NEW YORK: Double-digit growth in US fee income was no big deal in

1999, but the 30% figure that has been regularly quoted is a falsely

inflated one, according to analysis by PRWeek in its Agency Rankings

2000 supplement.



A rampant bull economy and an unprecedented number of mergers and

acquisitions fueled a 28% increase in fee income - from dollars 2.1

billion to dollars 2.7 billion - for the nation’s 300-plus PR agencies.

But after subtracting income from acquisitions, PRWeek calculated that

organic growth was between 13% and 15%. Of the dollars 600 million in US

revenue growth recorded in the rankings, at least dollars 320 million

was accounted for by acquisitions.



The market share of the Top 10 PR agencies increased from 47% to 48%,

while the share of the Top 50 remained constant at 77%. Global income of

the Top 20 agencies is now as large as the entire US market: dollars 2.7

billion.





- See editorial, p8, and supplement inside.



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