The press release has traditionally been a vital tool in the announcement armory of the IR professional. But with the rise in social media, where does the traditional press release sit within the importance of IR announcements?
Mark Dowd, managing partner at Forefront Communications, a New York-based boutique marketing and PR firm specializing in capital markets, is in no doubt. ‘Press releases are more important than ever,’ he says. ‘Given the proliferation of social media and industry news aggregation sites, many announcements will be posted and shared, which allows you to communicate directly with your audience.
‘Also, with editorial staff having been cut so dramatically over the last 10-15 years, journalists are thinly stretched and consequently much more likely to lift out significant portions of your press release verbatim.’
Given both trends, Dowd stresses the importance of the language used in any release. ‘It’s imperative that your release be clear, concise and free of hyperbole, at least if you want it to be of value to those reading it,’ he says. ‘Ask yourself: are you avoiding excessive jargon and writing in plain English? Is there any context necessary for the announcement to make sense? Have you anticipated any logical questions a reader might have and answered them?’
His view are shared by Elliot Frankal, director of ESG Communications, a London-based PR agency. He notes that findings from Greentarget, a New York-based PR firm, show that journalists spend less than one minute reading a press release. ‘So keep it punchy, jargon-free and get it all on one page if you can,’ Frankal advises. ‘Use ‘pyramid writing’ to ensure the most newsworthy bits of information – the who, how, what, when and why – all feature in the first couple of paragraphs.’
There is also a real need to provide some validation for whatever claims you are making in the release, says Dowd: ‘Adding a quote from an end-user or industry analyst is helpful, as are any analyst statistics, which can position your news as part of a larger trend.’
A direct quote from a company spokesperson is an essential part of a press release and gives the journalist something to build an article around, adds Frankal. ‘Your quotes should be the icing on the cake,’ he says. ‘So don’t use quotes to provide information – use them to give insights or memorable comment. Quotes should also sound like a real person might have said them, with short sentences and no technical jargon.’
Frankal also says the use of simple techniques can catch the eye of a journalist. ‘Use your headline and email subject line to stand out from the crowd,’ he suggests. ‘Instead of a headline that reads, Report says investor relations teams tend to overreact to short-term market events, make it, IR teams should avoid ‘freak-out factor’, says report.’
A simple approach like personalization works well, too. ‘Journalists are much more likely to respond if they feel the press release is personalized for them and their publication,’ says Frankal. ‘So avoid mass mailshots where you can, and tweak your cover note accordingly for each journalist.’
And when you’re ready to issue the release, make sure you are getting the maximum impact. ‘Providing it’s significant enough, try reaching out in advance to a relevant reporter or two and provide them with the news under embargo,’ says Dowd. ‘If you are willing to give them the story exclusively, even better. If you can have ready for them an executive, end-user and industry analyst all ready to talk, or at least have approved quotes from each, you should be able to land a well-rounded news story to supplement your release.’
