Public Relations Firms in the US - Industry Market Research Report

Sharper image: A positive economic outlook is expected to benefit agencies as clients increase their marketing budgets, driving the need for new campaigns

Public relations (PR) firms manage clients' image, publicize a product or service and communicate with stakeholders. The industry has faced moderate volatility as it is affected by consumer trends and corporate budgets. PR firms faced some revenue volatility, as it experienced revenue losses in 2019 and slow growth in 2020. Agencies are affected by fluctuations in need for public service campaigns and the broader business cycle. As a result, advertising expenditure increases when corporate profit and the number of businesses grow. Higher levels of consumer spending also affect demand for PR services, although it is not always an accurate indicator. These trends have led to revenue growing at a CAGR of 2.7% to an estimated $20.3 billion over the past five years, including a projected increase of 0.5% in 2023 alone.

Public relations (PR) agencies manage the communications between an organization and the public to promote favorable relationships and portray a desired image. This includes communication with the general public, employees, investors, customers, analysts and other stakeholders. Compared with advertising, PR campaigns aim for exposure through public interest and news coverage, rather than paid advertisements, to give their message third-party legitimacy.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry's key players and their market shares.