The news of a second phony release in as many years distributed by Los Angeles-based Internet Wire last month has many communications pros taking a harder look at wire
services. At a time when corporate trust and credibility are key, PR practitioners want nothing less from the services responsible for distributing their news to thousands of
journalists and analysts. Having a solid newswire for distribution of press releases and earnings information is something most PR practitioners have taken for granted. Media and
investor relations pros focus on the complex tasks of building and maintaining relationships with journalists and analysts, and they depend on the wire service as a basic tool to
provide broad distribution of news and meet key disclosure regulations mandated by bodies like the SEC.
But according to some savvy communications execs - and senior officials with the wire services themselves - taking proactive steps to ensure that your newswire provides the
security, service and credibility you need is a key role for any PR professional.
Breach of Trust
Internet Wire has had the most widely-publicized distribution gaffes, but CEO Jim McGovern says they have been blown out of proportion and distorted in the media. "We certainly
had a problem two years ago with a false release and then again a few weeks ago with this incident," he says. "They're both unfortunate, but that's not a rash of incidents."
McGovern assures us that Internet Wire is looking anew at its security procedures. "We have security that is truly unparalleled, and we actually are now looking at further
improvements."
Although other wire services may not have had such widely-publicized (or serious - both of Internet Wire's phony releases had false impacts on stock prices) mishaps, they have
lost clients over issues of trust.
Ken Montgomery, director of corporate communications with LRN, an L.A.-based company that provides online legal compliance and ethical awareness training services, naturally
considers ethics a key characteristic in any vendor. He changed wire services over a practice commonly known as "ticker spamming." The practice involves inserting the ticker
symbol of a competitor into a press release so that various Web sites and reporters will pick up the release believing it includes news on the competitor company.
Several years ago, one of Montgomery's competitors began routinely releasing news with a few sentences on his company including his company's ticker symbol. When reporters
visited Nasdaq's site and clicked on his company's ticker symbol, they would get press releases from the competition. Montgomery reported the practice to Business Wire but says he
received no response at the time. Business Wire President and CEO Lorry Lokey assures us that his company now prohibits the practice.
"It's a total abuse of the press release process," Montgomery says. "It's what alienates press from PR people, and for a wire service to be facilitating that is inexcusable."
Other tales of broken trust include a wire service that hired employees away from its client. "That's one of those things that destroys partnerships quickly," says Glen Orr, VP
with Edelman's Dallas office.
Doing Your Research
Most communicators say finding the right service comes down to building a trusting relationship. But you have to do a little research and a little legwork to get there.
"Everybody hates the sales phone call," says Orr. "But we've found it very beneficial and educational to have wire services come in and tell us what's new out there." Orr, who
has worked with PR Newswire and Business Wire, says he not only gets to hear about new products and services, but he can ask the questions he needs answered in order to select the
right service for his clients.
"PR people should welcome [sales professionals from the wires]," Lokey says. "They might have something to help you to keep up with your education."
Lisa Miles, VP with Eisner, Petrou and Associates, takes opportunities to cull new ideas from sales pitches and approach her usual newswire with them. "I go to them and say, 'I
got this from somebody else, and it looks different or cheaper.'" That information allows her the leverage to get the best value out of existing relationships, or explore
ancillary partnerships.
Gayle Goodman, project manager for public relations with Centex Corp., takes a proactive approach to finding the right wire and building an ongoing relationship with the
employees who work on her account. "I'm a hands-on person. I trust the wire service to do its job, but I took the time to go and meet their folks and walk through the process from
the minute I send my release so I'm aware of what they do and so I understand their safeguards. I would recommend that anyone go and meet the editors [at the newswire] at
least."
Meeting the editors and account executives who will work on your releases (whether in person or by phone) can give you a better idea of how the wire service works and whether
you trust the individuals who will have access to your information. Ron Wolf, one of the founders of AScribe, a public interest newswire whose clients are primarily colleges,
universities, research labs and medical facilities, says you should look for editors who have strong experience and a background in the industry. "We check the references [of our
editors] and we pay them the salaries they should receive," Wolf says. "You can't have people being paid minimum wages." He also recommends that you look for a relatively low-
stress copy desk: "You don't want to have copy editors who are playing beat-the-clock on releases."
Miles agrees that getting to know editors and account execs ahead of time is the best way to find a relationship that works for you. She looks for experienced professionals who
are willing to call her not just on copy errors but on content. "Sometimes we get too close to a subject, and we write it the way we know it, but not the way everybody else knows
it. [My editors] occasionally come back with editorial comments. You want someone who's not afraid to tell you, 'There's a better way of doing this.'"
The work up-front to develop a relationship pays off, Miles says. "You don't just want a vendor. You want a partner." (Contacts: McGovern, 310/846-3720; Montgomery, 310/209-
3897; Lokey, 415/986-4422; Orr, 214/443-7558; Miles, 410/843-3096; Goodman, 214/981-6054; Wolf, 510/653-9400)
Wire Service Shopping List
We asked our experts what to look for in order to find a service that's the perfect fit for your organization. Here's what they recommend:
- Look for the newswire that targets the journalists and analysts you need to reach. If you're interested in meeting the demands of Reg FD, your choices will likely be PR
Newswire or Business Wire. But if you want to reach the press covering labor unions and government agencies, for example, you'll probably use U.S. Newswire, says Brian Taylor, VP
of marketing communications for that company. - Look for security systems that include a strong physical component, a system for screening employees, and methods of ensuring they have the resources to "smell a rat," says
AScribe's Wolf. Many services allow only a select few people (two or three is a good number) from your organization to send or upload a release. If someone on that short list
leaves your company, update your newswire immediately, says Dave Armon, president of PR Newswire. - Ask about the service's media site, says Edelman's Orr. "I'm a big fan of the more the better as long as [the archived releases] are organized."
- Lastly, look for the services you need at a price you can afford. "Whether you're buying an airplane ticket, a meal or PR distribution, you want value," says Internet Wire's
McGovern. (Taylor, 202/347-2770; Armon, 212/282-1930)