Agencies split on 2009 optimism

Top PR agency managing directors are split on how 2009 will affect their cash.

Ingham: PRCA director
Ingham: PRCA director

40 per cent of the PRCA PR Leaders’ Panel believe that relative to 2008, their consultancy turnover would decrease in 2009. Most - 26 per cent - believe that their turnover will decrease by 6 to 10 per cent.

The industry experts were even more split on profits, with 49 per cent believing that they would either maintain or grow their margins this year and 51 per cent believing their profits would fall. But most – 37 per cent – believe they will decrease only slightly.

PRCA director general Francis Ingham said: ‘Many clients have become more cautious about committing budget in the current climate. We are seeing the lag from pitch to conversion to commencement increasing and a shift from retainers to project work.’

Nexus PR chief Jonathan Choat said: ‘Excessive caution is the death of spontaneity and robust marketing, both of which are as important now as when the economy was growing. Companies who invest in their reputation and profile will see it pay dividends.’

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