Average billing rates at PR firms fell in 2012, likely the result of a flat economy and stagnant revenue growth across the industry, according to a report by M&A consulting firm StevensGouldPincus.
Regionally, large markets saw the largest declines in A/E billing rates. In the New York/New Jersey market, rates fell from $152 to $149, while D.C. saw a $7 drop to $140 and northern California plunged $17 to $159.
SGP reported last month that average minimum PR fees declined nearly 3% last year to $9,609.
Billings rates for A/Es at large agencies ($25M+) fell from $164/hour in 2011 to $152 last year, while slightly smaller firms ($10M-$25M) cut billing rates from $155 to $150, according to the survey. Overall, the A/E average dipped from $151 to $150, given a large sample of A/Es at firms in the $3M-$10M range, where the rate actually ticked up one point to $148. Smaller firms (less than $3M) reported A/E rates flat at $153.
At the upper levels, billing rates at the president/CEO level declined from $361/hour in 2011 to $356, while EVPs fell from $315 to $304 and VPs slipped from $263 to $258.
SGP managing partner Rick Gould said productivity, or the utilization of billable time, is far below optimal levels as evidenced by senior VPs reporting only 64% of their theoretical yearly capacity of 1,700 hours. That figure is down from 78% in 2011.
Smaller, growth markets like the southeast (+$4 to $147) and Midwest (+$5 to $151) showed gains.
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