I am a woman of strong opinions. My “Yes” and my “No” are loud and clear for most things but here is a question that has two many shades of grey for me to give a straight answer.
PR Week reported on a BIGfrontier study which looked into Startups and Pr. Apparently,
Startup companies that engage in PR campaigns are 30% more successful in getting funding within one to three months than those that don’t (…) Forty-four percent of the respondents who used PR outreach received funding in the one-to-three-month time period versus 14% of those that did not. The survey also found that 78% of respondents who said PR helped in their funding efforts are planning to use some of their venture capital for additional PR.
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Paul Graham also reckons that PR is worth it (thumbs up to Colin Ross for sending me there) – even though I don’t know if he would stand by that position during the current difficult financial climate:
Our startup spent its entire marketing budget on PR: at a time when we were assembling our own computers to save money, we were paying a PR firm $16,000 a month. And they were worth it. PR is the news equivalent of search engine optimization; instead of buying ads, which readers ignore, you get yourself inserted directly into the stories.
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However I am still sceptical. Reporting such as PR Week’s above might be helping PR people feel a bit better or quote the numbers during their pitches but it’s not helping us understand exactly what we mean by PR in relation to Startups. What sort of Startups where successful? Which country? What sort of campaigns did the PR agencies run for them? I’m sorry but 30% doesn’t tell me anything until I get down to the nitty gritty.
It’s not that I am totally unconvinced. Having experience both in PR and in a Startup environment I truly think that Yes, Startups really do need PR. Even if I do have a series of “buts” to go with this.
But: What do I mean when I say PR?
I don’t mean advertising and I don’t mean PR agency juniors counting column inches. That’s not how it works anymore – I doubt it ever did. Startups don’t need an expensive campaign and they don’t need traditional advertising. They need networks and interest and word of mouth and early adopters. So when I say that startups need PR I mean PR that is engaging, that goes over and above the fluff, that builds connections, that helps the Startup people to represent their product/ service better.
But: Why does the Startup need PR?
If the Startup is still just looking for a reason then they don’t need PR. If you have a purpose very clear in your head then PR can help you get there in a targeted way.
But: Not necessarily from an agency
PR does not equate a PR agency. You can have a PR strategy and the Startup itself can run it. I know that time is of the essence but if money is tight and your purpose will be better served by keeping the function in-house it’s advisable to do it that way. The point is that in a Startup environment you are the specialist and the best person to represent the product. Have a team member do the PR work and get every member of the team ‘out – there’ to build relationships and introduce what you’re doing. They don’t have to be a “PR person”.
But: As long as you think PR in everything you do
PR is not a scary, shady beast. It is Public Relationswhich is what we all do every day when we say good morning, when we have a chat over coffee, when we gossip with friends. If you feel you don’t have the need for a full blown PR campaign then get out there and do it for yourself. You are the best advocate.
Jason Calacanis was a bit more polemic than me.
My philosophy of PR is summed up in six words: be amazing, be everywhere, be real.
You don’t need a PR firm, you don’t need an in-house PR person and you don’t need to spend ANY money to get amazing PR (…)
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Sure, you don’t need any of that but I still think you need a plan. Working in a startup environment, we tend to live in a bubble. We live and breathe the product and there is always the danger that we loose focus on how to represent it. Having a PR strategy – even if it only puts down in writing the who we are and what we do issues – will help team members to represent the product better.
Read On:
Why dont technology startups leverage PR even if its more effective?by BuzzGain
Friendfeed conversation with Louis Gray
Friendfeed conversation with myself
no
ah. another man of strong words.
PR is an essential ingredient of a successful startup, the way that you correctly describe it above, as far as you find the proper dosage in each separate case …
I would love to have some PR (Mobnotes.com is a real startup), but I mean someone who has proselitysm and charisma, like Robert Scoble or Jason Calacanis. The real meaning to us to have a PR is to have someone who acts as “trend setter” who enjoys your product, that’s top of the heap !
My 2 cents, Christian Grassi
philos>
Christian> There’s nothing stopping you from pitching to people like Scoble and Calacanis. I know what you mean – you’d like the creme de la creme to pay attention. Since these people know about startups and social media it would be easier for you to do it.
However when you move beyond early adopters and tech savvy people then wouldn’t you need a more general (and less ‘techy’) comms strategy for your product? For example: How about parents wanting to know where their kids are (not that I approve of the practice) – they are not extremely likely in their majority to read Scoble and Calacanis (sorry boys). When you get to that point I think you’ll need something more.
This is the first post from your ‘new era’ that my radar spotted. Thrilled!
nikan> delighted to see you in (the new) Digital Era.
I think it really depends on the type of startup. There are so many keen bloggers spreading the word, a startup with a good product may sneak by without a PR agency. maybe… =P
PS nice site
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