'Agencies: be brave, hold firm on client fees' - PRWeek podcast

What's happening to margins at PR agencies? And how can agencies be more profitable? PRWeek's latest podcast takes a look.Our guest on Beyond the Noise this week is Esther Carder, media specialist partner at accountancy and business advisory firm Moore Kingston Smith.Beyond the Noise, which is published on alternate weeks, looks at some of the biggest issues affecting comms and PR. Download the podcast via Apple, Spotify, or listen in the browser above or on your favourite platform.Late last year Moore Kingston Smith published its Annual Survey that analyised Companies House data on 40 of the UK's biggest comms agencies. The research found that the UK's high inflation rate has severely dented 'real terms' fee income growth at major PR agencies, while profit margins have also dipped.Speaking to podcast host Frankie Oliver, the founder of New Society, and PRWeek UK editor John Harrington, Carder discusses the findings in more detail.She looks at some of the biggest trends in recent months given the changing rates of inflation and subsequent cost pressures.Carder offers advice to agencies about how to mitigate rising costs and become more profitable businesses. She stresses the need for "bravery", urging agency to "hold firm" on fee increases.Carder also offers predictions for the rest of 2024 and beyond.We also ask whether, given the recent squeeze on margins, PR firms are still attractive investment opportunities.DepartureThis will be Frankie Oliver's final appearance as host on Beyond the Noise. She is stepping down after 40-plus episodes and more than a year and a half.She explained: "I’ve so enjoyed hosting the PRWeek podcast for the last 18 months with John [Harrington, UK editor] and Danny [Rogers, editor-in-chief] and I hope our listeners have enjoyed it too. It’s been such a great experience and I’m really grateful to all the wonderful guests that have come on the show."The time has come however for me to hand over the gauntlet as I shift New Society, the consultancy I set up to tackle the climate communications problem, into being a not-for-profit. We are winning really exciting philanthropic funding and I am therefore fully focusing all my time on delivering the critical campaigns we so urgently need in the world to drive rapid action on the climate crisis. I wish PRWeek the very best with the podcast and have no doubt the show will go from strength to strength."Harrington said: "Frankie has been a great host of Beyond the Noise since it launched back in May 2022, helping to steer its direction during another tumultuous period for the PR industry."I'd like to offer a big thanks to Frankie for all her work. We wish her all the best with New Society and whatever else the future holds." Hosted on Acast. See acast.com/privacy for more information.