Public Relations Firms in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: February 2024
NAICS 54182Revenue
$20.4bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
96,705
Businesses
48,736
Wages
$X.Xbn
Public Relations Firms in the US industry analysis
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 the need for public service campaigns and the broader business cycle. Advertising expenditure increases when corporate profit and the number of businesses grow. Higher levels of consumer spending also influence demand for PR services, although it is not always an accurate indicator. These trends have led to revenue growing at a CAGR of 2.4% to an estimated $20.4 billion, including an incline of 0.5% in 2024 alone, as profit reaches 14.0%.
Trends and Insights
- The widespread use of social media leads to an increase in the need for public relations agencies. Having the ability to create multiplatform campaigns often allows companies to reach a broader consumer pool.
- The COVID-19 pandemic led to higher demand for public relations services from healthcare companies. Healthcare organizations became the media's focus as people expected accurate updates about the ongoing pandemic.
- Public relations agencies base operations in proximity to major clients. This results in companies establishing themselves in large metropolitan areas, such as New York and California.
- The industry is highly price competitive, particularly among smaller agencies. Many agencies can offer similar results for the same price, placing downward pressure on profit.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 2.4 % over the past five years, to reach an estimated $20.4bn in 2024.
Trends and Insights
The pandemic disrupts demand for PR companies
- Pandemic-induced losses in corporate profit resulted in slower growth in PR revenue. Some of this loss of income was offset by new flourishing demand from the healthcare market. Pharmaceutical companies increased spending on PR services as the pandemic created a need for accurate and timely information regarding COVID-19.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
A positive economic outlook supports PR agencies
- Corporate profit levels will likely increase due to stabilizing economic conditions, with interest rates regressing. This enables companies to expand their marketing budgets, increasing the need for PR services.
Biggest companies in the Public Relations Firms in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Computershare Limited | 1,625.1 | 201.5 | 12.4 | |
Interpublic Group Of Companies, Inc. | 907.0 | 46.1 | 5.1 | |
Hogan Lovells International LLP | 771.9 | 154.4 | 20.0 |
To view the market share and analysis for all 16 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including General PR services for businesses, General PR services for other clients and Public affairs. General PR services for businesses is the largest segment of the Public Relations Firms in the US.
Trends and Insights
General public relations services bring in the most revenue
- Public relations (PR) firms work alongside the marketing department to boost a company's brand and image. PR services improve the profile and image of a company, assist consumers' understanding of its products or services and inform shareholders of company activities.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Advertising Agencies in the US
Complementors
- Law Firms in the US
- Management Consulting in the US
- Telemarketing & Call Centers in the US
International industries
- Global Public Relations Agencies
- Public Relations Firms in Canada
- Public Relations Services in Australia
- Consulting Services in New Zealand
- Public Relations & Communication Activities in the UK
Table of Contents
About this industry
Industry definition
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.
What's included in this industry?
Public relationsLobbyingImage promotionPolitical consultingCompanies
Computershare LimitedInterpublic Group Of Companies, Inc.Hogan Lovells International LLPPurchase this report to view all 16 major companies in this industry.
Related Terms
BELOW-THE-LINETRADITIONAL MEDIANEW MEDIATWITTERMICROBLOGBLOGDIGITAL AGENCYIndustry Code
NAICS 54182 - Public Relations Firms in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
The widespread use of social media leads to an increase in the need for public relations agencies. Having the ability to create multiplatform campaigns often allows companies...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The COVID-19 pandemic led to higher demand for public relations services from healthcare companies. Healthcare organizations became the media's focus as people expected accur...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Public relations agencies base operations in proximity to major clients. This results in companies establishing themselves in large metropolitan areas, such as New York and C...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The industry is highly price competitive, particularly among smaller agencies. Many agencies can offer similar results for the same price, placing downward pressure on profit...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Major companies aim to improve their brand positioning. Many companies have shared their stand on events like the COVID-19 pandemic and the Ukraine War, creating strong brand...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Computershare Limited's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Interpublic Group Of Companies, Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Hogan Lovells International LLP's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 13 additional companies
Detailed analysis
- Description and key data for Computershare Limited, and factors influencing its performance in the industry
- Description and key data for Interpublic Group Of Companies, Inc., and factors influencing its performance in the industry
- Description and key data for Hogan Lovells International LLP, and factors influencing its performance in the industry
- Description, key data and performance trends for 13 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Privatly-owned organizations set the standard. The industry is not closely regulated by any government, resulting in private organizations creating a code of ethics.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Wage expenses are high and will continue growing. Public relations companies require employees to have a wide skill set, ranging from soft skills, such as client communicatio...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Public Relations Firms in the US industry in United States in 2024?
The market size of the Public Relations Firms in the US industry in United States is $20.4bn in 2024.
How many businesses are there in the Public Relations Firms in the US industry in 2024?
There are 48,736 businesses in the Public Relations Firms in the US industry in United States, which has grown at a CAGR of 0.7 % between 2019 and 2024.
Has the Public Relations Firms in the US industry in United States grown or declined over the past 5 years?
The market size of the Public Relations Firms in the US industry in United States has been growing at a CAGR of 2.4 % between 2019 and 2024.
What is the forecast growth of the Public Relations Firms in the US industry in United States over the next 5 years?
Over the next five years, the Public Relations Firms in the US industry in United States is expected to grow.
What are the biggest companies in the Public Relations Firms in the US market in United States?
The biggest companies operating in the Public Relations Firms market in United States are Computershare Limited, Interpublic Group Of Companies, Inc. and Hogan Lovells International LLP
What does the Public Relations Firms in the US in United States include?
Public relations and Lobbying are part of the Public Relations Firms in the US industry.
Which companies have the highest market share in the Public Relations Firms in the US in United States?
The company holding the most market share in United States is Computershare Limited.
How competitive is the Public Relations Firms in the US industry in United States?
The level of competition is high and steady in the Public Relations Firms in the US industry in United States.
