Numis Securities analyst Lorna Tilbian said that PR was ‘benefiting from a secular change in demand'. Tilbian pointed to strong growth in India and China across the WPP group as an indication of ongoing success.
WPP posted a 12.4 per cent increase in PR revenues in its unaudited results for the 2006 fiscal year.
WPP Group CEO Sir Martin Sorrell told PRWeek: ‘YouTube, Flickr and MySpace have emphasised to clients that editorial publicity is stronger than paid-for publicity.'
He added: ‘If bloggers are saying nasty things about you, you can indulge yourself in a campaign to try to improve what they are talking about. PR has become more important structurally as a result.'
IPG's Constituency Management Group, home to the bulk of its PR firms, reported organic revenue growth of 2.8 per cent.