The communications sector faced a tough year in 2024, driven by various challenges. Many PR firms, including Edelman, saw stagnant or declining revenue as they navigated shifting market dynamics and economic pressures.
Two of the holding companies, Dentsu and IPG, shrank. IPG announced its intention to merge with Omnicom, with substantial headcount reduction expected in the run-up to the deal closing. Publicis merged with Leo Burnett as a means of cost savings. Omnicom brought its three ad agencies under one roof for the same reason. I expect further consolidation and change across the industry driven by external and economic forces. As competitors navigate mergers, Edelman has reduced barriers and is operating as a more integrated team. It’s our moment to charge, to continue to lead.
There was also significant uncertainty on the client side. There were 50 elections involving half of the world’s population; this froze spending. At the same time, clients found it hard to pass along further price increases to hard-pressed consumers, so they achieved profit by cutting costs, including spending on marketing.
Lastly, there was continued softness in the pharmaceutical and technology sectors. Tech companies poured their investment into AI, building data centers and programming teams. Drug companies are only now recovering momentum in new product launches.
I like our position going into this year. Here are the reasons to believe:
- Our Staff— My confidence in your ability to deliver innovative, award-winning work has never been stronger. I see how incredibly hard you are all working. You are fearless and tenacious, and I couldn’t be prouder of what we achieved for our clients in 2024.
- AI Investment— We are the only agency with a proprietary LLM—ArchieAI. Integrated into TrustStream, it delivers real-time, trust-building recommendations with up to 96 percent accuracy, empowering brands to act instantly.
- One Edelman— We made missteps, overcomplicating our structure with boutique and specialty shops. We folded the SSAs and EGA back into the main house of Edelman because clients want to buy the full capabilities of the firm. We are unique in being able to offer political advice to brands or creative concepts to corporate clients.
- Creative Has Broken Through— It has taken us a decade to get here but we are now deemed by clients the ‘Agency of the Future’, with unique understanding of Earned Creative in the Creator Economy. A Titanium and four Gold Lions at Cannes is no small feat.
- Trust— We launched our most important piece of IP ever with the 2025 Trust Barometer, the Crisis of Grievance. We see through the haze to guide Business in this challenging environment on issues such as DEI, Sustainability and geo-politics. We are the House of Trust operating at the intersection of commerce, culture and society.
- Focus on Clients—We have every opportunity to be an increasingly important partner on their most urgent needs and opportunities.
2025 is the comeback year for communications firms. We are using earned creative in a fundamentally changed media ecosystem with dispersion of authority to podcasters and creators. We have a deep responsibility for truth in a time of disinformation. We must justify innovation such as AI to a deeply skeptical public who see more risk of job loss than gains in public health or education. CEOs are grappling with DEI, sustainability, and other societal challenges, doing the work in a way that improves business outcomes. Edelman intends to lead in this time of profound change.
Richard Edelman is CEO.
