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PR Agency Profitability Reaches 18.6 Percent in 2011

Annual benchmarking research conducted by M&A consultancy StevensGouldPincus finds that PR agencies reported 18.6 percent profitability in 2011. The numbers are an improvement from the prior year (15.6 percent) and a big leap from 13.9 percent profitability reported in 2009, the time in which the economic meltdown was wreaking havoc.

A total of 105 firms from across the revenue size spectrum — from less than $3 million to more than $25 million — in the U.S. and Canada were included in the survey.

The research also found that average monthly minimum fees were up, from $8,385 last year to $9,867. Firms between $10 million and $25 million in revenue were a little lower ($9,291) and those above $25 million were much higher ($15,340).

Overhead also dropped three percent to 25.5 percent, and staff turnover averaged 22.5 percent, a small drop from the previous year.

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