As one of only two South African members of PROI Worldwide, Dialogue received early access to the latest global PR industry data prepared by Davis+Gilbert in their 13th Annual PR Industry Trends Report. These insights reflect how global agencies performed in 2025, and more importantly, what those numbers signal as we move into 2026.
As we prepare our strategies for 2026, Dialogue has compiled our interpretation of the key trends, grounded in the statistics presented, and what they practically mean for the year ahead.
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Growth expectations declined, signalling a more cautious 2026
The data shows a clear softening in confidence:
- Only 50% of firms expect revenue growth (down from 57%)
- Only 44% expect profit growth (down from 50%)
- 35% expect a decline in revenue – a significant jump from 22%
- This marks the lowest expected increase in revenue and profit since 2021
- Uncertainty has risen from 22% to 30%
- Anxiety has nearly tripled over five years (from 5% to 14%)
What this means for 2026
The numbers point to a more cautious operating environment. Agencies will need:
- Clearer forecasting
- Stronger commercial discipline
- More predictable delivery models
- Communications programmes built around value demonstration
The stability of 2026 will depend on how effectively 2025’s uncertainty is addressed.
2. Talent costs increased, making workforce efficiency a 2026 priority
Compensation continues to be the industry’s largest cost pressure:
- 37% of firms now spend 60%+ of net revenue on compensation
- This figure has risen 5% in the past year and 9% over five years
Importantly, top-performing agencies, those with 10%+ revenue/profit growth, were far less likely to exceed the 60% threshold.
What this means for 2026
The correlation is clear: high performers are controlling compensation ratios more effectively.
2026 will require:
- Efficiency-focused team structures
- Stronger utilisation
- More deliberate role design
- Scalable systems supported by technology
Efficiency is becoming a differentiator, not an internal metric.
3. Staffing models shifted, indicating a structural change in how agencies operate
2025 saw significant workforce restructuring:
- 51% managed out weaker performers
- 46% increased freelancer use
- 44% did not replace staff who resigned
- 20% increased layoffs (up from 12% the year before)
What this means for 2026
These are not one-off adjustments – the numbers show a systemic shift.
Agencies are leaning into:
- Leaner core teams
- Flexible resourcing
- More intentional performance management
- Strategic use of external specialists
Talent models are evolving and 2026 will accelerate this shift.
4. DEI momentum declined, a key watchpoint for 2026
The most striking reversal was in Diversity, Equity and Inclusivity-focused hiring:
- Only 21% increased representation hiring
- Down sharply from 60% in 2022
What this means for 2026
The decline is factual – and significant.
As DEI hiring decreases, agencies risk losing internal diversity of perspective, which is central to message resonance, decision-making and cultural relevance.
2026 should be a year of rebuilding a sustained, measurable DEI commitment.
5. AI adoption became nearly universal but governance lagged behind
2025 marked the industry’s most dramatic operational shift:
- 99% of agencies use AI
- Only 45% have an internal AI policy
Client expectations remain mixed:
- 11% ask agencies to use AI
- 63% are open to its use
- 18% prefer agencies not use AI
AI is being used extensively:
- Writing: 79%
- Meeting notes: 75%
- Research: 61%
- Social listening: 54%
- Media monitoring: 53%
- Visual work: 53%
- Reporting: 58%
- Ideation: 58%
- Data/insights: 51%
What this means for 2026
The numbers show high enthusiasm but inconsistent governance.
2026 will require agencies to:
- Develop AI policies
- Standardise usage
- Train teams on safe and accurate application
- Integrate AI into workflows with clear quality controls
AI maturity will define competitiveness.
6. Mergers & acquisitions slowed but demand for specialist agencies remained strong
Key Mergers & Acquisition findings: 62 deals completed YTD (17 fewer than the prior year) and
Most sellers have less than $6M in revenue
- Buyer types:
- 47% independent (up 4%)
- 35% private equity
- 18% public companies (down 4%)
- Most sought-after seller categories:
- Integrated/full-service
- Healthcare
- Public affairs
What this means for 2026
While total deals declined, demand remains strong in specific categories.
2026 will likely see continued interest in:
- Specialist expertise
- Integrated service models
- Agencies with strong operational discipline
The direction is clear, even if deal volume slowed.
7. Long-term incentives are becoming a performance marker
Top-performing agencies are far more likely to use:
- Long Term Inventive Programmes – 57% vs 45% in others
- Phantom / contract equity – 50% vs 39%
What this means for 2026
Retention structures matter.
The highest performers are using long-term incentive models to:
- Hold senior talent
- Maintain continuity
- Strengthen leadership stability
2026 will reward agencies that align talent retention with long-term value.
What Dialogue is taking into 2026
The 2025 figures, taken together, point to six clear imperatives for the year ahead:
- Build predictability into every aspect of delivery
- Strengthen workforce efficiency and compensation discipline
- Adopt flexible, performance-led staffing models
- Recommit to measurable DEI progress
- Formalise AI governance and elevate AI maturity
- Nurture senior talent through long-term structures
2026 will be shaped by the agencies that pair evidence-based operations with strategic creativity and use data like this to plan ahead rather than react.
