It’s my twice yearly chat with W Communications founder and CEO Warren Johnson and today it’s our 2024 PR Agency Year in Review.
It’s been quite the year. Some have described it as the year that never was! But could it have been worse? And has PR in this the latter half of Q3 and into Q4 actually come good?
Warren founded W Communications in 2009. It now has global revenues of £20m and a headcount of 200, with 140 in London and 60 across the rest of the world.
Over the next half hour or so Warren and I will discuss the ups and downs of agency life over the last 12 months.
Before that, the breaking news is that the PRmoment Awards final entry deadline is the 17th January. Don’t miss the opportunity to create proof points of the quality of your agency’s work.
Thanks so much to the PRmoment Podcast sponsors the PRCA.
2 mins Warren, on how has 2024 been for W.
“The dismantling of the retainer model accelerated this year.”
“We and the rest of the industry are having to re-tool into a more management consultancy style project based business”
“We’re seeing a greeter and greater appetite to buy more services from PR consultancy businesses.”
“It’s busy, I wouldn't say it's as profitable as it has been.”
“We’re having to work harder than ever to maintain our strong margin.”
“You can often have clients bump a project with little or no notice and also no penalty and that’s a drag on margin. Until we get that fixed.”
“If you don’t know what the world looks like in 3 months, let alone 6, why would you plan for 9 months out.”
9 mins Why is retaining PR agency margins tougher than ever?
10 mins What are the implications of the move towards project based fees on the talent profile of PR agencies?
11 mins Is a retainer relationship ever better for the client?
“If you want to partner with an agency properly, then a retainer is always better.”
13 mins In which sectors is PR spend up/down?
“Love a bit of B2B. No one is ever going to cut budgets driving CEO fame or lead gen.”
“Sport for us has been huge. Biggest growth area. Insatiable appetite for briefs coming in.”
“Travel has been strong."
“We’ve had some very good wins over the last 5 days. It’s been nice to go into Christmas with some wins under our belt."
17 mins Warren’s top tips for any independent PR agency CEOs out there on how to manage their businesses in this new project lead income, more agile business environment.
“Challenge every way of working. Make sure it’s match fit.”
“Agency bosses need to get out. Get into the office. Spend time with your staff IRL, go out and see clients.”
“PR agency owners are making money but not enjoying it.”
20 mins What talent trends have you seen this year?
“Lots of big senior names have become available, particularly client side.”
“At a lower level there’s bound to be a slight reduction in grad level intake just because of the cost of bringing them in and the quite often poor quality of talent coming in. The costs versus talent quality is beginning to become imbalanced.”
23.30 mins Warren’s thoughts on the Omnicom, IPG merger. Historically these holding companies mergers happen because of the ad agencies and the PR firms either innocent bystanders, or potentially innocent victims, depending on how cynical you’re feeling at the time. Is this one the same?
“The PR agencies are a rounding error of that deal.”
25 mins Warren reflects on the busyness of PR’s 2024 pitching Golden Quarter.
27 mins How does Warren think PR will fair 2025?