survey - StevensGouldPincus by liuqingyan

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									               NEWS FROM STEVENSGOULDPINCUS



                                               FOR JANUARY 4TH RELEASE
                                                                    Contact:
                                                                  Rick Gould
                                                         Main: 212-779-2800
                                                         Direct 212-896-1909
                                                   StevensGouldPincus, LLC
                                                             One Penn Plaza
                                                                   Suite 5335
                                                        New York, NY 10119


HIGHER REVENUES IN 2010 SAY 64.1% OF US PR AGENCIES
                    SURVEYED

ONLY 14.1% SEE CONTINUED DECREASES, SAYS SGP POLL


  January 4, 2010, NEW YORK, NY –

         Responding to a survey on their 2010 outlook vs. 2009 preliminary

  results, 64.1% percent of PR agencies coast to coast project higher revenues

  in the new year, and only 14.1% percent see a continued slump, it was

  reported today by Rick Gould, a managing partner of Stevens Gould Pincus,

  who has been conducting the surveys for many years. 21.8% reported no

  change.

         The record 157 responding agencies, of all sizes and locations,

  reported that their preliminary yearend estimates for 2009 show that only
22.9% percent achieved higher revenues vs. 2008, and 63.7% per cent

suffered declines. They also disclosed that their operating profit margins

shrank to an average of 11.6 per cent, far below last years "normal"

benchmark of 19.2% percent for the industry, Gould said.

Additional highlights of the survey were reported as follows:

      December 2009 survey results

       63.7% reported Net Revenues Decreased

       13.4% reported No Change

       22.9% reported Net Revenues increased.

      The over $25 Million group was the least affected with a 54.1%

       increase in net revenues. Almost 2/3 of the firms under $25Million in

       net revenue reported decrease in net revenues.

      Of the 101 firms that showed a decrease in net revenues almost half

       showed a decrease of at least 20%.

      Operating Profit 2009 through 9/30/09

          At a dismal 11.6% average of all firms with Southern California

           taking a big hit, with an average of 2.1% operating profit.

          The four Canadian firms as well as the four northwest firms

           showed the highest profitability. (20.0% & 15.9% respectively).

          Our opinion is that the results are even more negative in that

           several firms did not participate in this survey & when called

           indicated their net revenues and profitability were significantly

           down.
             Net Client Turnover

               An average of 6.4% net turnover indicates that clients may not be
                  moving as much as in robust times and/or firms are replacing lost

                  clients. The “Net” effect is minimal.

                 Net Staff Turnover

                 With net staff turnover of 12.0% it appears that PR staff are

                  holding onto their jobs. It also appears that those that do leave

                  are easily replaced. Southern California again had the highest net

                  turnover at 15.9%.

       StevensGouldPincus conducted the survey to determine what extent the PR

industry was hurt since the same survey was conducted earlier this year. Their

tabulation of the 157 firms was by Size and Region. StevensGouldPincus is the

leading merger & management consulting firm specializing in the PR Agency

industry. Previous surveys/reports have ranged from the comprehensive annual

Benchmarking survey to issues as billing rates, staff turnover, client turnover and

other timely, relevant issues. StevensGouldPincus is headquartered in N.Y.C with a

presence in seven other cities. Surveys are administered by Rick Gould CPA, J.D. a

Managing Partner along with Ted Pincus, Art Stevens and Mike Muraszko.

For the full report contact Rick Gould rgould@stevensgouldpincus.com
                                                                                                                   3. Average     4. Average Net 5. Average Net
                                                                                                                   Operating      Client Turnover Staff Turnover
                                          1. Net Revenues 2009 v. 2008       2. Projection for 2010 vs. 2009      Profit % 2009         2009            2009
                            # Firms    Increase    Decrease No Change    Increase       Decrease      No Change

Less than $3Million           78        19.2%       64.1%     16.7%      56.4%          11.5%         32.1%          10.5%             8.2%           10.9%
$3Million to $10Million       55        21.8%       69.1%      9.1%      70.9%          16.4%         12.7%          12.7%             2.9%           12.9%
>$10Million to $25Million     17        29.4%       64.7%      5.9%      68.8%          25.0%          6.2%          13.8%             5.0%           13.7%
>$25Million                    7        54.1%       14.3%     28.6%      85.7%           0.0%         14.3%          15.2%            13.8%           13.0%
                    Total    157        22.9%       63.7%     13.4%      64.1%          14.1%         21.8%          11.6%            6.4%            12.0%



Of the agencies showing Increase (Decrease)
Average
                                        Average    Average
                                        Increase   Decrease
Less than $3Million                      13.1%      20.0%
$3Million to $10Million                  14.0%      15.3%
>$10Million to $25Million                13.1%      12.3%
>$25Million                              22.8%      26.0%
                                                                                                                       4. Net Client   5. Net Staff
                                                                                                        3. Operating     Turnover       Turnover
                                    1. Net Revenues 2009 v. 2008     2. Projection for 2010 vs. 2009   Profit % 2009       2009            2009
                       # Firms   Increase Decrease No Change       Increase     Decrease No Change

1. NY & NJ               50      20.0%      66.0%       14.0%      61.4%       18.2%        20.4%         11.2%           6.1%           13.3%

2. D.C & Suburbs         7       20.0%      60.0%       20.0%      50.0%       25.0%        25.0%         10.8%           1.6%           14.0%

3. Northeast             13      15.4%      76.9%       7.7%       75.0%       25.0%        0.0%          11.5%          11.3%           13.8%

4. Southeast             20      30.0%      65.0%       5.0%       77.8%        0.0%        22.2%         15.6%          11.4%           11.0%

5. Midwest               23      27.3%      63.6%       9.1%       66.7%       14.3%        19.0%         11.7%           4.1%           9.3%

6. Southwest             11       20.0%     80.0%       0.0%       90.0%        0.0%        10.0%         9.7%            9.6%           14.9%

7. Southern CA           12       16.7%     75.0%       8.3%       41.7%       50.0%        8.3%          2.1%            9.0%           15.9%

8. Northern CA           13       38.5%     38.5%       23.0%      66.7%        0.0%        33.3%         12.9%           2.0%           14.4%

9. Northwest             4         0.0%     50.0%       50.0%      100.0%       0.0%        0.0%          15.9%          10.5%           5.0%

10. Canada               4        50.0%     25.0%       25.0%      66.7%        0.0%        33.3%         20.0%          10.3%           8.8%

               Total    157      22.9%      63.7%       13.4%      64.1%       14.1%        21.8%         11.6%           6.4%           12.0%

								
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