Key Takeaways from The Industry Blend: How PR Leaders Are Rethinking Revenue, AI, and Talent

Recently, Anchin, CommPRO, The PR Council and O’Dwyer’s PR hosted The Industry Blend – PR Roundtable, an intimate, candid discussion that brought together decision‑makers from across the public relations, marketing, and media industries. The conversation was timely, forward‑looking, and honest, reflecting the evolving realities agencies face today as economic pressure, AI innovation, and talent dynamics continue to reshape the industry.

Below are the key themes and insights that emerged from the discussion.

Revenue Pressures and the Push for Flexibility

Participants highlighted that tariffs and broader economic pressures are increasingly impacting revenue, not just costs. As margins continue to tighten and AI advances, agencies are under growing pressure to adopt a more creative approach to client billing while also reducing expenses without compromising quality or client service.

There was broad agreement that agencies must be more flexible and open to experimenting with different revenue models. Participants discussed the importance of fairness in pricing increases over time, as well as the strategic use of discounts, particularly volume‑based discounts for larger budgets. Rebates were also raised as a potential lever, though many emphasized the need to clearly define boundaries and understand where to draw the line to protect profitability.

The Evolution of Pricing and Performance‑Based Models

Changing pricing structures was a key focus of the conversation. Several agencies are beginning to shift away from traditional time‑and‑materials billing toward more performance‑based, results‑driven models. While appealing, these models raise important questions: How is success defined? Is it measured by brand recognition, deal activity, or another objective metric? And how does this impact financial reporting and contract structure?

Participants noted that performance‑based models are still in their infancy and will continue to evolve. Collaboration between agencies and clients is critical to establish realistic expectations and industry standards. Many agencies are gravitating toward hybrid approaches, including packaged services, product‑based pricing, and clearly defined deliverables, which feel safer and more predictable for both sides.

Success fees, particularly those tied to M&A outcomes or deal closings, were discussed as a familiar concept with potential applications beyond transactions. The group explored whether similar value‑based structures could be applied to other services such a advertising, media and legal.

Across all pricing models, participants emphasized the importance of understanding break‑even points, upside potential, and ensuring contracts include appropriate termination clauses.

Technology Fees, Earned Media, and the Expanding Scope of PR

Technology fees are becoming more prevalent, particularly as AI‑enabled tools are increasingly embedded into agency workflows. Earned media itself is evolving, with influencer outreach now viewed as part of the core offering rather than an adjacent service.

These changes are fueling broader conversations around how services are packaged, priced, and communicated to clients, especially as the scope of PR continues to expand.

AI: Opportunity, Risk, and Responsibility

AI was a dominant topic throughout the roundtable. Agencies are actively exploring how to use AI to increase efficiency, improve workflows, and deliver greater value, but not without caution. Participants discussed evolving AI policies, client‑specific restrictions (including some clients who prohibit AI use altogether), and the growing recognition that AI is not just a technology issue, but a legal one.

Key themes included:

• The importance of selecting the right tools and fully understanding how they work
• Testing and refining AI‑enabled workflows through a “test and learn” approach
• Considering strategic hires or advisory board members focused specifically on AI
• Ensuring all AI‑generated content is reviewed and edited by humans

A significant number of firms emphasized an “AI‑enabled but human‑led” mantra, reinforcing that technology should augment, not replace, human judgment. Contracts are also becoming more granular, including provisions around AI use, authorship, and bylines.

Talent, Compensation, and Leadership Development

Talent and compensation challenges were another major focus. The cost for talent is higher than ever, and agencies are balancing rising compensation expectations with profitability pressures. Deferred compensation plans emerged as a strategy to help retain key talent, align incentives with long‑term growth, and maintain institutional knowledge.

There was also strong support for continued investment in junior and mid‑level talent. While operational efficiency is critical, clients still want to speak with people, not just platforms. Junior employees play a vital role, and developing them into future leaders by enhancing their soft skills, communication, and ethical development was cited as an essential component of long‑term success.

Participants also noted that potential acquirers are increasingly focused on next‑level management strength when evaluating exit strategies.

Compliance and Workforce Considerations

As agencies rely more heavily on freelancers and 1099 workers, compliance risks are growing. Understanding where workers are located, where clients operate, and how state and local tax rules apply is critical. Missteps in this area can have significant tax and regulatory implications.

Final Thoughts

What emerged clearly from The Industry Blend was a shared willingness to evolve. Agencies are experimenting with new pricing models, rethinking talent strategies, and cautiously embracing AI, all while striving to remain compliant, competitive, and client focused.

Conversations like these, grounded in real‑world experience, are essential as the industry continues to navigate change. While the adoption of the concepts discussed is still taking shape, the consensus was clear: collaboration, transparency, and thoughtful experimentation will define the next chapter of the PR industry.

For more information, please contact Michael Belfer, Partner and Leader of the PR, Media and Advertising Group; Matthew Rosenblatt, Partner; or your Anchin Relationship Partner.