Hotwire revenue dips as clients focus on AI
Hotwire's revenue has slipped as clients redirect attention and budgets to AI initiatives. Parent company Enero said an "ongoing focus on margins and cost initiatives are expected to deliver continuing savings" in H2.
For PR and communications leaders, this is a signal. Client priorities are moving to efficiency, automation and measurable outcomes. Agencies that adapt service design, pricing and delivery to reflect AI-driven expectations will keep their footing - and win share from slower competitors.
What this shift means for agencies
- Budgets are being tested against AI-enabled alternatives. You'll be asked to prove speed, scale and outcome gains - not just activity volume.
- Procurement will scrutinize margins and tool stacks. Expect tougher questions on unit economics, data use and security.
- Pilots will replace some traditional retainers. Clear OKRs and short payback periods will be the norm.
Move now: a practical plan for the next two quarters
- Reframe proposals around outcomes clients care about: qualified coverage, message pull-through, share of voice and pipeline influence.
- Productize "AI-assisted" services (media monitoring, issues scanning, content drafting, measurement) with clear scope, SLAs and QA steps.
- Price with unit economics: per-asset, per-campaign or per-outcome - and show the cost/time delta versus your pre-AI baseline.
- Standardize prompts, style guides and review workflows to reduce rework and protect brand voice.
- Automate reporting and admin. Free senior time for strategy, relationships and storytelling that machines can't replicate.
- Tighten data governance: client consent, source transparency, fact-check gates and red-team reviews for sensitive topics.
- Run small vendor pilots with exit criteria. Keep your stack lean; consolidate overlapping tools.
How to frame the client conversation
- Where are you investing in AI this quarter, and what outcomes are you targeting?
- Which workflows do you want faster or cheaper - and which require seasoned counsel?
- What data, compliance or brand risks should our workflow mitigate?
- What does "good" look like in 30, 60 and 90 days - and how will we measure it?
Metrics that defend your fees
- Cost per qualified mention and time-to-first-placement.
- Message pull-through and accuracy rates (human-verified).
- Share of voice versus set competitors and topics that matter.
- Content cycle time: brief-to-draft, draft-to-approval, approval-to-publish.
- Attribution signals: assisted site traffic, demo requests, SEO lift on priority terms.
Protect margin without hurting quality
- Scope ruthlessly. Write down what's out of scope and stick to change orders.
- Use templates and reusable assets for briefs, spokesperson QAs and campaign kits.
- Set utilization targets and reduce meetings without clear decisions or outputs.
- Quarterly tool audit: keep what's used weekly, cut the rest.
- Channel budget to a small backlog of high-upside tests; sunset anything that doesn't pay back fast.
Risks to manage with AI-enabled work
- Confidential data leakage and IP ownership. Use approved tools and client-safe modes.
- Factual errors and source bias. Add human fact-check gates and citation rules.
- Measurement inflation. Separate assisted output from human editorial decisions.
- Overpromising automation. Be clear where expert counsel and relationships drive results.
For context on adoption trends, see independent research on enterprise AI adoption from McKinsey's State of AI report: read more here.
If you're building team capability, start with practical workflows and governance. This curated hub is a helpful kickoff point: AI for PR & Communications.
Bottom line
Clients are prioritizing AI, and budgets are moving with them. Meet that demand with outcome-based offers, lean delivery and clear safeguards - while keeping a firm grip on margin. Do that, and a soft quarter becomes a springboard for the next one.
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