Overall fee revenue at US firms increased 11% in 2010 after showing a 5% decline in 2009. Contributors to the growth include consumer communications, increased attention to social media, and regulatory changes in Washington, such as online endorsements and testimonials and financial regulatory reform.
The report projects that the corporate communications, public affairs, and crisis management practice areas at many agencies will continue to expand in 2011, mainly due to demand from the healthcare and energy industries, both of which proved to be influential growth sectors in 2010. Consumer goods, finance, healthcare, and technology are reported to be the US industries with the best growth prospects in the coming year.
Many PR agencies overseas have responded to the increase in consumer and corporate use of social media by integrating digital and social media expertise into their business offerings. However, when it comes to the talent pool, the report found both the US and UK seem to be short on candidates with both digital and client service experience. The report also noted that attracting and retaining talent is one of the largest areas of concern for PR consultancies worldwide.