2011 PRCA Benchmarking Survey

April 15th 2011

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Background

• 229 PRCA members contacted in total

• Complete surveys returned:– 124 MD/CEO surveys (94 in 2010)– 79 FD surveys (69 in 2010)– 84 HRD surveys (76 in 2010)

• Size bands defined by income:– Small: up to £850K– Medium: £851K to £2.5 million– Large: £2.51 million to £5 million– Very Large: more than £5 million

2PRCA Benchmarking Survey 2011

MD FD HRD

Small 61 25 31

Med 30 24 23

Lar 18 18 16

V Lar 15 12 14

Total 124 79 84

Bases sizes by size band are:

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Business type – 2011 sample profile

PRCA Benchmarking Survey 2011 3Base: 79 FDs

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Average profit 2009/2010

£299

£361

2009 2010

PRCA Benchmarking Survey 2011 4

Figures in ‘000s

Base: 79 FDs

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Average operating margin 2009/2010

9%

12%

2009 2010

PRCA Benchmarking Survey 2011 5

Figures in ‘000s

Base: 79 FDs

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Over-servicing rate

PRCA Benchmarking Survey 2011 6Base: 79 FDs

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Hours worked – contracted vs. actual

PRCA Benchmarking Survey 2011 7Base: 84 HRDs

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Staff retention strategies implemented in 2010

PRCA Benchmarking Survey 2011 8Base: 84 HRDs

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Redundancies

PRCA Benchmarking Survey 2011 9Base: 84 HRDs

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Destination of leavers

PRCA Benchmarking Survey 2011 10Base: 84 HRDs

Moved to another consultancy for…

2010 PRCA Survey

14%

12%

5%

15%

16%

14%

13%

3%

8%

0

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Employment prospects

PRCA Benchmarking Survey 2011 11Base: 84 HRDs

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Key threats over time2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Economic downturn 3 1 1 4 3 4 9 1 1 1 1

New clients selecting consultancies on price*

N/A N/A N/A N/A N/A N/A N/A N/A N/A 2= 2

Shortage of skilled consultants 1 4 8 3 1 1 1 2 9 7 3

Other marketing disciplines encroaching on PR budgets

N/A N/A N/A 8 12 8 7 6= 5 4= 4

Existing clients refusing to accept fee increases*

N/A N/A N/A N/A N/A N/A N/A N/A N/A 2= 5

Competitors buying business N/A 9 4 2 7 7 8 5 3 3 6=

Lack of evaluation 2 3 7 5 4 3 3 4 4 4= 6=

Shift from retained to project-based work

N/A N/A N/A N/A N/A N/A N/A N/A N/A 8 7

Instability of client relationships N/A 7 6 6 5 6 6 10 6= 11 9

Too much focus on measuring output

N/A N/A N/A N/A N/A N/A N/A N/A N/A 9= 10

PRCA Benchmarking Survey 2011 12*Asked as one statement in 2010 survey: “Clients exercising commercial pressure (e.g. negotiating costs downwards)”

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Digital strategy

PRCA Benchmarking Survey 2011 13

Does your business have a formal digital strategy?

Base: 124 MDs, except * where based is 84 HRDs