Thursday, July 20, 2006

PR Newswire is auctioning off some national news releases...

The old model is no longer what it seemed.

I am grateful to Adventures in Business for alerting me to this news. This is another case of disintermediation. PR Newswire has disconnected the relationship between the product and its price. Through eBay, It has invited people to look at the value of its service instead.

The consequence of its action is that the 'Marketing' inside PR Newsire is now dependant on relationships and not the value chain.

The extension of this idea is that PR consultancies will offer ideas and programmes to clients who can bid a price for the work in advance.

Equally, one can imagine a news agency bidding to distribute stories generated by PR departments which would mean that news stories would really have to be newsy but would also mean that there would be advanced notice of a story that everyone will be waiting for.

Auctioning off your service may have been and interesting idea as a promotion but now the genie is out of the bottle. News release distribution costs are no longer what they seem - they are negotiable.

Picture: Fire is Feminine