New Survey Says Start-Ups Believe in the Value of PR
By Julia Hood

October 29, 2001

PR is considered the most effective marketing tool by start-up technology companies, and formed the largest single marketing investment for them in 2001, according to a survey released by Launch Pad and Blanc & Otus.

In 2001, the average marketing budget increased from dollars 2.2 million to dollars 2.8 million, although as a percentage of total spending they fell from 20% in 2000 to 15%. 'PR was also considered the second-biggest area in which companies think they under-invested in during 2000,' said Shelley Harrison, CEO of Launch Pad. Most respondents thought they over-invested in advertising.

'What is also happening is that every dollar that goes to marketing spending has to show measurable results,' said Harrison. 'That's why we saw a dramatic increase in direct marketing, and a distaste for large trade shows.'

The number-one marketing challenge cited was generating awareness. 'Last year, this was also number one, but this year it was number one by double the number of respondents,' Harrison said.

The study targeted marketing executives in 32 b-to-b companies during the second quarter of 2001, across a range of industries including retail systems, internet infrastructure, and global management systems.

©Copyright PR Week