Professional Services Category

Marketing and Public Relation Services

Functional Services Group Report

(NAICS 541613, 541810, 541820, 541910)

Contact

Stephanie Kenitzer

Stephanie.Kenitzer@gsa.gov

(253) 931-7873

TABLE OF CONTENTS

Background 2

Overview 3

Industry Associations 4

Vendor Breakdown 6

Top Contractors and Customers 8

The Tiers of Category Management 10

Summary 11

Appendix 12

Page 1

Background

The government-wide professional services category has eight subcategories:● Business Administrative Services● Financial Services● Legal Services● Management & Advisory Services● Marketing & Public Relations ● Research & Development● Social Services● Technical & Engineering Services

The subcategories are broken down further into groupings of unique services. The Functional Service Groups (FSG) are specific, identifiable groups of services aligned with a NAICS code.

This report provides a summary of the current contractors, customers, and common patterns for the top 4 NAICS codes in the marketing and public relations subcategory. The Professional Services Category developed this report to provide the federal acquisition workforce with insights on a specific industrial base and support GSA’s customer engagement initiatives.

Educating GSA’s Federal Acquisition Workforce

FSG reports are designed to provide grounding for new and transferring contracting specialists in a contracting operations division. Products and services on the Multiple Award Schedules are identified by NAICS codes, whereas in the past each product and service grouping had a Special Item Number.

New contract specialists benefit from the report because it is a concise industry overview. More experienced contract specialists and officers can use the report as a quick reference, supporting their intuition with numbers pulled from the Federal Procurement Data System. PSHC contracting personnel are welcome to make recommendations for future research that would support the annual refresh of the FSG reports.

Support GSA’s Customer Accounts and Stakeholder Engagement Division

GSA’s Customer Accounts and Stakeholder Engagement (CASE) Division is charged with pursuing top opportunities for top accounts. An FSG report is useful to CASE representatives because it provides a picture of FAS’ industrial base. A good report prepares those charged with representation by describing an industry’s size and capabilities to federal agency customers. CASE representatives are welcome to make recommendations for future research that would support the annual refresh of the FSG reports.

Page 2

OverviewThe following table provides a brief look at the top four NAICS codes for this subcategory, the aligned PSC codes, and descriptions for the represented services. The descriptions and alignments were sourced from psctool.us, a tool maintained by the Defense Pricing and Contracting (DPC) office, and the government-wide FY18 spend was sourced from the D2D awards exploration tool.

NAICS Description PSC FY18 $

541810

This industry comprises establishments primarily engaged in creating advertising campaigns and placing such advertising in periodicals, newspapers, radio and television, or other media. R701 $1,001.4M

541820This industry comprises establishments primarily engaged in designing and implementing public relations campaigns. R708 $114.5M

541613

This U.S. industry comprises establishments primarily engaged in providing operating advice and assistance to businesses and other organizations on marketing issues, such as developing marketing objectives and policies, sales forecasting, new product developing and pricing, licensing and franchise planning, and marketing planning and strategy. R422 $107.4M

541910

This industry comprises establishments primarily engaged in systematically gathering, recording, tabulating, and presenting marketing and public opinion data. R422 $90.4M

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Marketing and public relations is an expansive subcategory of the professional services category, including directory publishing, marketing consulting, advertising, public relations, market research, and polling. Of these services, the top four described above represent 97 percent of the subcategory’s $1.3 Billion FY18 spend.

Industry Associations

These industry associations are meta-organizations that bring together numerous professionals or companies, organized around a specific economic activity as shown in alignment with the respective NAICS code. These associations often act as advocates for their industry and provide valuable resources for members. Here, information on new and innovative services or practices may be found that GSA might not cover yet.

Industry Associations Aligned with Marketing and Public Relation Services

NAICSIndustry

Organization Size Mission Events

541810 American Association of

Advertising Agencies

600+ Members

"The 4A’s helps empower members to deliver insightful creativity that drives commerce and influences culture, all while moving the industry forward."

AAAA Events

Interactive Advertising

2,200+ Members

"IAB empowers members and the industry through research, education, advocacy, and the

IAB Events

Page 4

Bureau development of technical standards and solutions."

News Media Alliance

2,000+ Members

"The News Media Alliance is dedicated to working with our members, as well as other partner organizations, to advance the industry through advocacy, critical research and resources and events that connect and inspire."

NMA Events

541820

PR Council110+

Members"Helping grow talent, revenue, profit and reputation for Member agencies and the industry."

PRC Events

Public Relations Society of America

30,000+ Members

"PRSA is dedicated to professional development, accreditation, advocacy, and ethics for its members and the industry."

PRSA Events

541910

American Marketing

Association70+

Chapters

"The American Marketing Association strives to be the most relevant force and voice shaping marketing around the world, an essential community for marketers."

AMA Events

Insights Association

450+ Members

"The Insights Association strives to effectively represent, advance, and grow the research profession and industry. Specifically, the organization provides advocacy, public relations, sets professional standards, develops best practices, and supports the development of members.

IA Events

Page 5

Vendor Breakdown

The graph above shows the total number of firms in each NAICS code, based on data from IBISWorld reports. Of these firms, approximately 2,500 perform federal professional services. For FY18, 34 percent of the $654.5 million subcategory spend on GSA schedules was obligated to mid or large-tier businesses. The following graph shows the distribution for the 66 percent of spend that was obligated for small businesses, based on data from Schedule Sales Query.

● WOSB: Women Owned Small Business ● EDWOSB: Economically Disadvantaged Women Owned Small Business ● HUBZone: Historically Underutilized Business Zone● SDB: Small Disadvantaged Business● SDVOSB: Service Disabled Veteran Owned Small Business● VOSB: Veteran Owned Small Business

Page 6

Page 7

Top Contractors and CustomersTop 10* Contractors on Schedules in FY 2018

NAICS Vendor DUNS Value

541613 - Marketing Consulting Services

541613 General Dynamics Information Technology 067641597 $25,667,232

541613 Rock Creek Publishing Group Inc 603437377 $8,772,557

541613 IQ Solutions Inc 876875154 $7,733,460

541613 Barbaricum LLC 827620308 $6,659,395

541613 Family Health International 067180786 $5,665,300

541613 Media Fusion LLC 938036704 $4,365,783

541613 Horne Creative Group 928362300 $4,155,847

541613 Aptive Resources LLC 828890751 $3,595,083

541613 Huge LLC 840858554 $1,952,491

541613 Gallup Inc 616502050 $943,537

541810 - Advertising Agencies

541810 GMMB Inc 184861235 $14,875,556

541810 Elevation Ltd 144184392 $6,307,781

541810 Lempugh Inc 120832787 $5,808,033

541810 Betah Associates Inc 802894832 $4,712,239

541810 Schatz Publishing Group LLC 838756963 $2,213,705

541810 Ecu Communications LLC 362702065 $2,060,303

541810 York Telecom Corporation 131658445 $1,998,566

541810 Sage Communications LLC 180363751 $1,587,300

541810 Jmh Education Marketing Inc 118500289 $1,075,825

541810 Mcandrew Company Inc 797370897 $1,043,592

541820 - Public Relations Agencies

541820 True North Communications Inc 602458721 $72,803,541

541820 Ogilvy Public Relations Worldwide 116191875 $15,820,262

541820 Crosby Marketing Communications 077406270 $15,818,721

541820 Palladian Partners Inc 961413028 $11,363,713

Page 8

541820 Westat Inc 049508120 $10,062,348

541820 Professional And Scientific Association 627717424 $8,679,222

541820 A Bright Idea LLC 002833684 $7,844,279

541820 J.R. Reingold & Associates Inc 185056942 $7,365,507

541820 Hager Sharp Inc 077810323 $6,412,330

541820 McNeely Pigott & Fox Public Relations 183142371 $6,243,302

541910 - Marketing Research and Public Opinion Polling

541910 Porter Novelli Public Services Inc 828641642 $18,935,924

541910 District Communications Group LLC 965032878 $13,669,353

541910 JWT Specialized Communications 028630689 $10,140,410

541910 CommunicateHealth Inc 825136117 $6,394,388

541910 Booz Allen Hamilton Inc 006928857 $3,736,550

541910 CMGRP Inc 148054088 $3,195,107

541910 Fors Marsh Group LLC 129842667 $3,069,052

541910 CIC Research Inc 004966917 $2,896,871

541910 Daniel J Edelman Inc 072324379 $2,439,176

541910 Metropolitan Group LLC 613030659 $1,967,688

* Top 10 or available contractors who performed work on schedules in the NAICS codes. ** These tables do not include information on OASIS due to lacking D2D data, indicating either a weakness of GSA data systems or an absence of procurement on OASIS for these services.

Top 5 Customers in FY 2018

Department Of Health and Human Services $1.6 Billion

● Tier 0: 6.4% of subcat spend, 297 contracts● PSS: 10.1% of subcat spend, 471 contracts

Department Of Army $1.2 Billion● Tier 0: 13.2% of subcat spend, 616 contracts● PSS: 0.5% of subcat spend, 21 contracts

Department Of Navy $627 Million

● Tier 0: 2.4% of subcat spend, 113 contracts● Tier 1: 2.7% of subcat spend, 124 contracts● PSS: 0.4% of subcat spend, 17 contracts

Department Of Commerce $454 Million

● Tier 0: 2.0% of subcat spend, 92 contracts● PSS: 0.8% of subcat spend, 36 contracts

Department Of Air Force $396 Million

● Tier 0: 4.9% of subcat spend, 228 contracts● PSS: 0.7% of subcat spend, 33 contracts

Page 9

The Tiers of Category Management

Tier 0: Unaligned spending by the agency, which involves purchasing in a decentralized manner and not conforming to category management principles, including strategic oversight and disciplined consideration of performance data to understand prices paid by other Federal customers or metrics to improve results.

Tier 1: Spending managed at the agency-wide level with supporting mandatory-use policies and strong contract management practices, including data analysis, information sharing across the agency, and use of metrics that are defined, tracked and publicized; The dashboard will also be reviewed by PMC members quarterly as part of the Cross Agency Priority Goal process.

Tier 2: Spending managed at Government-wide level through multi-agency or Governmentwide solutions that are not BIC solutions but reflect strong contract management practices, including data and information sharing across agencies, and use of cross-agency metrics. (Example: PSS)

Tier 3 (Best in Class): Spending managed at the Government-wide level through use of BIC solutions that have been identified through a collaborative interagency process by acquisition category experts within the Government as offering the best pricing and terms and conditions within the Federal marketplace and reflecting the strongest contract management practices. (Example: OASIS)

Page 10

Summary

The intent of this report is to educate PSHC staff on the industry associated with these specific NAICS codes. Marketing and public relations is a broad subcategory of the professional services category, including directory publishing, marketing consulting, advertising, public relations, market research, and polling. Of these services, the top four highlighted in this report represent 97 percent of the subcategory’s $1.3 Billion FY18 spend. For GSA schedules, the total spend for the four NAICS codes was split 66/34 between small and large businesses. And for the federal government overall, the largest subcategory customers were the Department of Health and Human Services, the Army, the Navy, Department of Commerce, and the Air Force.

This report should be updated annually with the latest FY data and industry information. Please tell us how you are using the information on this report and how it could be improved with the PSHC Supplier Relationship Management Specialist.

Page 11

Appendix

Data gathered from the Schedule Sales Query tool. Data to Decisions. GeneralServices Administration.

Data gathered from the Awards Exploration tool. Data to Decisions. General ServicesAdministration.

Data gather from the OASIS Storyboard Dashboard (FPDS Data). Data to Decisions.

General Services Administration.

Eberle, Scott. 2019. “Professional Services Schedule Breakdown”. General ServicesAdministration, Office of Professional Services and Human Capital.

Gambardella, Anthony. 2019. “IBISWorld Industry Report OD5848 MarketingConsultants in the US.” IBISWorld.

Miller, Anna. 2019. “IBISWorld Industry Report 54181 Advertising Agencies in the US.”IBISWorld.

Miller, Anna. 2019. “IBISWorld Industry Report 54182 Public Relations Firms in the US.”IBISWorld.

Miller, Anna. 2019. “IBISWorld Industry Report 54191 Market Research in the US.”IBISWorld.

Professional Services Category Selection Tool. https://psctool.us/mappings. Defense

Pricing and Contracting (DPC) Office.

Weichert, Margaret M. “Memorandum For the Heads of Executive Departments andAgencies. Category Management: Making Smarter Use of Common ContractSolutions and Practices”. Executive Office of the President, Office ofManagement and Budget.

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