Part 1 of a 2-part feature
The grim economic outlook has most market watchers yearning for the good ol' days of high-rolling dotcoms and conspicuous consumption. But for many media relations
professionals, the bust has been a boon. This year's economic slump means companies are churning out less news -- leaving more space for savvy PR pros who know how to manipulate a
bad situation to their advantage.
Despite the carnage in the dotcom industry, online brokerage firm Datek has not only survived the fallout, but gotten ink for stories that might never have seen the light of
day 18 months ago. When the firm recently began to allow customers to trade in tenth of a cent increments, WSJ.com and other business media flocked to cover the new development.
"We're the first online broker to let customers trade in decimals rather than fractions," says Mike Dunn, VP, public relations. "It's a true innovation, and I think we would have
gotten some coverage [before the downturn] but we got more [now] because there were so few things going on."
Slow news and a realistic - if pessimistic - economic outlook have forced PR practitioners to return to a basic media relations approach, which is currently achieving as much
as the most astronomical promotional budget did during the dotcom boom. "You don't need a $50 million round of funding any more," says Heather Allen, senior manager of public
relations for Martin Fletcher, a healthcare staffing firm. "Reporters just want news."
PR NEWS asked media relations experts to uncover their top tactics for getting the best coverage with the slimmest resources. Here's their advice for beating the slump:
- Be realistic. The dotcom era is over, and small, untested companies are no longer scoring ink in The Wall Street Journal for winning their latest round of venture capital.
"We work with clients to set their expectations properly," says Sabrina Horn, president of the Horn Group in San Francisco. Make the most of targeted pitches to reporters who are
more likely to be within your reach. "We're only focusing on people within our arena," says Allen. "We're much more targeted on pitches." - Supporting materials are more critical than ever. Companies that don't have data aren't going to get coverage, Horn says. "Find the angle and the data. The press is much more
interested in real return on investment, real customers using the software, companies showing a profit." Horn suggests doing informal research or surveys among customers to find
the best spokespeople for your product. - What better excuse than a flagging economy to cut back on expenditures for flashy media kits and press materials? Take advantage of the slump to bring your media relations
materials online with a Web-based press room. Get more out of your PR staff by encouraging them to share knowledge online. "Share information about what [you] are doing and what
editors are looking for so that it's one person calling [with a pitch] instead of three," Horn says. - Lean on media databases for up-to-date information on media layoffs and downsizings. There's no excuse for not knowing a key industry reporter has left or been replaced, says
John Schlieman, a media relations exec working in the high tech arena at Brodeur Worldwide. "It's not like this is a new phenomenon." - Reporters are particularly wary of startups -- they're waiting for companies to prove themselves before staking journalistic reputation on them. Rather than pitch a new
company -- or even an unproven product -- pitch insightful senior managment executives as industry experts. A journalist is more likely to quote your CEO than he is to cover a
company launch in today's environment. - Jump on the trends. Because news has slowed to a trickle, many stories have been dramatically played out. In the healthcare industry, for example, a nationwide nursing
shortage has been covered exhaustively. "Reporters don't want to hear anything related to nurses," Martin Fletcher's Allen says. Instead, she has turned to other news hooks, like
the aging of baby boomers and the resulting demand for orthopedic surgeons and other medical specialties that treat well-worn parts.
While the dotcom downturn has increased the media's skepticism, it has also left journalists more receptive to legitimate good news. "People are tired of writing about layoffs
and the downturn in the economy," says Datek's Dunn. Pitch success stories -- as long as they're genuine. "A while back, no one cared if you hit Street estimates," Schlieman
says. "What's the difference between posting a loss of 70 cents a share and 71 cents a share? Now the fact that someone is turning a profit [is] the stuff you see in Fortune and
Forbes. They're covering the ten companies that have never missed the Street estimates."
(Contacts: Brodeur: John Schlieman, 617/587-2096; Datek: Mike Dunn, 201/761-8767; Horn Group: Sabrina Horn, 415/905-4000; Martin Fletcher: Heather Allen, 972/257-8706)
Editor's Note
Have you discovered some great cost-cutting tactic that your peers should know about? Send us your tip(s) for surviving an economy gone south. If we use your idea in the
newsletter, we'll contribute $50 towards your whole team's reg-istration for the PR NEWS PR Strategies Forum, featuring Innovative Techniques for Today's Communicator, September
20-21, International Trade Center, Washington, DC. Send your contribution to [email protected].