Exclusive data collated by PRmoment, in partnership with The Pulse Business found that over half of PR agency leaders are fairly confident with the stability of the PR sector, despite citing challenges from clients who are impacted by market uncertainty.

The first PRmoment/The Pulse Business Quarterly Confidence Tracker, which surveyed 52 UK-based PR agency leaders between 16 December 2024 and 20 January 2025, found that over half (52%) of PR leaders are “quite confident” in the future growth and stability of the sector over the next 12 months.

Commenting on the results, Imogen Osborne, founder at The Pulse Business said: “Caution, uncertainty and understandable frustration with the current market environment provide a clear thematic for this Pulse. But amidst all this, the opportunities for new ideas on how the industry manages the reputations of businesses and individuals is as wide as it is deep. Always focus on the positives."

UK PR agency leaders confident in business outlook for 2025

Those expressing confidence highlighted their agency's ability to “adapt” to the changing landscape, embrace new technologies and demonstrate PR’s value in a “crowded” media environment.

One respondent, who answered “quite confident” to the survey said: 

“The past year has been challenging, but the global economic outlook for the year ahead indicates some growth, and that's always a good sign. Regardless of the economic situation, it’s essential to position PR as a business necessity regardless of the wider economic situation. That is the best way to secure growth and stability in the sector.”

Another said: 

“While we are operating in a very difficult economy and the full impact of the last budget has yet to be felt, there's an overwhelming feeling that business transcends politics and we just need to get on with it. We all stopped while we waited for the UK Budget and the American election [outcome]. Now we just need to roll up our sleeves and make do with the situation we have been dealt.”

PR agency leaders’ experiences vastly differ

However, the results indicate a mixed bag of opinions for the outlook of the sector’s growth and stability.

Under a third of respondents (27%) expressed a neutral stance or cited "uncertainty" because of economic fragility, geopolitical pressures, and technological disruptions – chiefly from AI. While one fifth (19%) indicated they are “not very confident” as shrinking budgets and a shift towards project-based work instead of retainers are causing concern.

One respondent, who answered “not very confident” commented: 

“I think the industry as it is currently won’t see significant growth, and needs to adapt beyond just ‘doing’ AI. Unless client budgets also open up, next year will be difficult.”

While another said: 

“So many big boys [are] merging, redundancies [are] becoming the norm [and] budgets shrinking.”

Client challenges hinder progress

Meanwhile, the data highlighted agency challenges with clients as budget uncertainty and changing client dynamics have impacted overall growth of the PR sector over the past three months.

PR agency leaders ranked general market uncertainty (27%) as the highest, followed by lack of budget sign-off (20%) and clients reducing the PR budget for 2025 (14%).

One respondent, struggling with market uncertainty from clients in Q4 of last year, said: 

“Many prospects were unwilling to commit to retainers because of various uncertainties around the global economy. There was also the added complexity of the economic challenges in African markets. These were the biggest challenges for us in 2024.”

Feedback from the survey indicated that clients are delaying budget sign-offs, or reducing budgets altogether due to the unpredictable economic climate. This makes it difficult for agencies to secure new business and plan for the future.

Additionally, clients are taking longer to make decisions, involving more stakeholders, and changing decision-makers frequently. This leads to project delays, scope creep, and frustration for agencies.

A further impacting factor is clients, especially those with junior staff or those from technical backgrounds, lack a fundamental understanding of PR's value and how it works. This requires agencies to spend more time educating clients and managing unrealistic expectations.

One responded, who cited a lack of budget sign-off for 2025 as a major challenge, commented: 

“Not through a lack of willing but either because they [the client] are waiting on something bigger that impacts their comms spend, or because they are so stretched they are worried about committing [to spending money].”

Another bemoaned the lack of certainty with client budget sign-off in Q4 of last year: 

“Too often clients come to us with a brief and at the eleventh hour the goal posts change and there are either delays, changes or pauses. This was a trend we saw in 2024.”

Positive signs ahead

While these challenges are significant, the survey yielded some positive feedback from agency leaders, who are experiencing growth.

Despite the difficulties, some agencies are reporting an increase in new business opportunities and a more collaborative relationship with clients. Encouragingly, despite the challenging environment, some say clients still recognise the value of PR in navigating uncertainty and building trust.

One respondent said: 

“We had an absolutely bumper December for new business, which saw four new client wins, all of which will be onboarded this month [January 2025],” with the caveat, “two of those [clients] we'd been talking to for more than six months, a sign of the lengthening decision-making process, and challenges to getting firm budget sign-off.”

One respondent who answered “other” to the survey, added: 

“We've seen consolidation whereby big agencies are scooping up smaller UK accounts by bundling alongside other markets, we've seen budget delays and indecision albeit there was an uptick in number of pitches held, which hopefully is a good sign.”

Overall, the PR landscape remains dynamic and challenging. PR agency leaders remain positive in outlook for the sector and are attempting to push through challenges with the wider UK economy and clients.

Agencies that can adapt to changing client needs, demonstrate clear value, and embrace new opportunities will be best positioned for success over the next three months.