PR agency growth is local, specialist, independent and small

The agency market is tough, but the latest Agency by Agency 2025 growth report contains some optimistic insights for local, specialist, independent, and small agencies.

The data puts the bigger is better growth myth to rest: big agencies aren’t the ones driving growth. Agencies with 250 or more employees make up a small fraction of the market and an even smaller share of high-growth performers.

In contrast, agencies with three to ten employees account for nearly half (45.4%) of all high-growth agencies. This is your growth zone. You’re big enough to build capabilities and take on substantial work. But you’re still agile, able to pivot, move quickly, and stay close to your clients.

Stop apologising for your size. Start leveraging it. Use your flexibility to move faster, specialise deeper and own a niche.

Specialist public relations is a growth area

Public relations, as a general category, is one of the least dynamic in the report. Only 5.5% of all newly founded agencies sit in communications and public relations. The growth rate for the sub-sector is significantly lower than the industry average of 7.3%.

Now compare that to emerging areas:

• Social purpose and sustainability: 22%
• Amazon/Marketplace: 20.4%
• Influencer: 16.4%
• Data and analytics: 13.9%

There is now no doubt that clients are looking for value in the current market, but they also want specialists. Generalist public relations offers are struggling to cut through the noise. Lead with specialism, whether that’s digital advocacy, sustainability storytelling or behaviour change.

Geography is not a constraint

Growth isn’t confined to London. Wales (11.6%), Scotland (11.2%) and the north-west (11.1%) all outpace the capital. These markets may be smaller, but they’re hungrier, and technology has levelled the playing field for how agencies show up and win work.

That said, these areas are also more volatile. High growth here often comes with risk. The lesson? Be bold but be built for change. If you're regionally based, double down. If you're not, consider expanding into growth regions remotely or in a hybrid setting.

New doesn’t mean young

Only 17.5% of agencies have been founded in the past five years. That signals maturity, but also a less saturated environment for independents with a clear proposition.

What matters more than being new is being focused. The high-growth agencies in the report aren’t chasing trends. They’re clear on where they excel and why clients choose them.

Clarify your story. Whether you’ve been around five years or 15, communicate your relevance, not your age.

The winners are few, but they’re clear

Just 11.7% of agencies are classed as high growth, yet they account for almost a quarter of total industry turnover. Many are lean teams with three to 10 people. What sets them apart isn’t size. It’s focus. They’re strategically positioned, specialised, and built to scale where it matters: in value delivered, not just revenue booked.

They’re not talking about impact. They’re delivering it. Benchmark your growth and operational model not against sector averages, but against the high performers.

The Agency by Agency report makes one thing plain: growth is a product of focus, fit and foresight. Independent public relations agencies, especially those with three to ten employees, have never been in a better position to grow.

Stop trying to be all things to all clients. Get precise, regional and specialist.

Stephen Waddington is the founder and managing partner of Wadds Inc. Read the original post.

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