PR among most profitable marketing disciplines according to the PRWeek Top 150

PR is one of the most profitable disciplines in the marketing sector, according to analysis of the PRWeek Top 150 agencies' profit margins.

For this year's league tables, PR agencies were asked to submit their operating profit figures before tax. PRWeek calculated the average profit margin for those agencies that supplied profit figures, but did not belong to a big marcoms group. Combined profits were £20.6m on an income of £144.6m, a margin of 14.2 per cent.

This compares favourably with the 16.1 per cent average profit margin of the PR divisions of the larger marcoms groups, such as Chime, Huntsworth, WPP and Next Fifteen.

Accountant and RealWire CEO Adam Parker, who analysed the figures in the supplement, said this suggested that size was not a critical factor in adding value.

He also compared the 16.1 per cent and 14.2 per cent margin figures with the overall profit margin figures of Publicis, WPP, Aegis, Havas and Omnicom.

While these marcoms groups made most of their income from other marketing disciplines such as advertising, the PR profit margins exceeded the overall margins by 0.9 per cent and 2.8 per cent respectively.

To see the Top 150 2011 click here