Financial Services
Thought Leadership
PR for Analysts – Is it worth it?
Many financial institutions have, at one time, considered the need for a PR program for their securities analysts. The truth is, it’s not for everyone—in fact, many respected analysts choose to not participate in any media (Of the 10 analysts with the best stock recommendations in 2007 as chosen by the Wall Street Journal, only 2 had been quoted in the paper within the past year). But that doesn’t mean that it’s not beneficial for some firms—it just depends on the company’s marketing needs.
Typically, PR for analysts is used to:
- Increase brand recognition:
Regular commentary in outlets such as Barron’s and CNBC canraise a firm’s profile and pay big dividends for the rest of the business. One of our clients swears, “Every time one of our analysts is on TV, our sales and trading phones immediately start ringing.”
- Expand research coverage:
If a firm expands coverage of new industries or issues, the first thing it needs is credibility. Consistent media coverage in a new area quickly builds authority.
- Attract and retain Senior Analysts:
Analysts with a “voice” for the media are often attracted to firms with a robust PR program. Recognition is portable, so analysts that come from other firms will easily be able to pick up where they left off.
The above is fairly straight forward—but in order to get the analysts on board, you must show that you can:
- Give them what they want:
Analysts generally value media opportunities that highlight their expertise and the depth of their industry knowledge. Each analyst has different priorities that PR should learn—while auto analysts may privilege the Detroit Free Press, others will only focus on the Wall Street Journal. Top-tier media exposure sends a positive message to clients and competitors underscoring that they are the media’s “go-to” source.
- Respect their boundaries:
Media isn’t for everybody—and that’s okay. PR’s role is to educate the analysts, and use tools such as media training to increase their appetite. But we also have to respect the fact that not everyone wants to share their wisdom so publicly.
- Value their time:
Time is of the essence for analysts. They are extremely focused on the markets during the trading day, and trying to pull them away from the desk for a quick interview can be difficult. Working with analysts requires balance—and we’ve learned the importance of efficiency. We focus solely on outlets that the analysts value and work hard to accommodate the hectic schedules of both the analysts and the reporter.
Over the years we’ve gained an arsenal of intelligence from working with equity analysts, and find it can be a great tool to meet marketing objectives.
KK and CG
