We recently came across this video on the O’Dwyer blog of Marketing Pilgrim blogger and creator of social media monitoring service trackur, Andy Beal, being interviewed at a recent search engine conference talking about changes to the newswire industry.
One point Beal brings up is that of “performance-based” pricing. “I would rather pay extra if I get my story picked up by The New York Times or Techcrunch, as opposed to paying $300 and having it go out there and maybe not get picked up by anybody,” he said.
PRNewser spoke with Jason Kintzler, founder of an “upstart” wire service of sorts, Pitch Engine, to get his take. “Andy raises some valid issues facing PR,” Kintzler said. “However, I’m not sure the ‘pay-for-performance’ solution can better the industry. Changing the pricing model won’t fix an outdated method of PR distribution.”
An executive at another wire service company said performance pricing would be a disadvantage to some big companies. “Imagine the cost for a product launch at CES by Apple or Microsoft,” they said.
The executive also said not all content put on the wire is meant for pick up and that it is unfair to put the burden on the wires, since many companies put out releases that simply aren’t news.
“So we wouldn’t get paid to send out your release when the news isn’t news?” the executive asked. “What about media alerts? Those don’t get ‘picked up.’” We’re interested in hearing your take. Leave your thoughts in the comments.