Crafting a compelling press release is crucial for any small-cap publicly traded company to engage with the investor community and meet the demands of continuous disclosure obligations. A well-crafted press release can help you convey important company news effectively. This comprehensive article will guide you through creating an attention-grabbing press release and share some tips. Whether sharing major milestones or ensuring continuous transparency, mastering the art of writing press releases is a valuable skill for all small-cap companies.
What Is a Press Release?
A press release, or news release, is a formal written document or statement issued by an organization, company, government agency, or individual to provide information to the media and the public. A press release aims to inform the public about recent events or developments related to the company. Press releases are typically distributed to journalists, news outlets, and media organizations to generate news coverage and inform the public about significant activities such as financings or public offerings, new partnerships, corporate milestones, product launches, mergers and acquisitions, hiring of directors & executives, financial results, corporate developments, or material events related to your company's specific industry.
For public companies, press releases are vital for meeting continuous disclosure requirements and ensuring transparency of your operations. This form of communication provides shareholders and the investment community with timely updates and insights into the company's activities, financial performance, and strategic initiatives, helping them make timely and informed investment decisions.
A well-written press release follows a standardized format, including a headline, sub-headline, date, contact information, and body text, and often includes multimedia elements like images or videos. Press releases are a valuable tool for public relations, investor relations, and marketing efforts, as they help organizations control and shape the narrative surrounding their news and reach a broader audience through media coverage.
Part 1: Preparing for Your Press Release
Before drafting a compelling press release, thorough preparation is essential to convey your message effectively and reach the right audience.
1. Identify the Type of News:
Before crafting your press release, it's crucial to identify the nature of the news you wish to share. Determine whether it falls under continuous disclosure, represents a material event, or pertains to a significant development. This distinction is essential as it dictates the level of disclosure required and tone.
Regardless of the news type, always ensure the information is genuinely newsworthy and pertinent to your target audience, including shareholders and the investment community. Your press release should provide value and insights, whether about routine disclosure or a major corporate milestone.
2. Identify Your Target Audience and Regulatory Requirements:
When preparing your press release, defining your target audience is imperative. Will your release primarily reach journalists, investors, industry experts, brokers, or the general public? Understanding who you are targeting is essential for drafting a message that resonates and meets regulatory requirements.
Put yourself in the recipient's shoes, tailor the message to their interests, and answer their questions. Whether addressing the financial community's matters or providing valuable information to the broader public, striking the right balance is essential.
3. Gather Key Information and Assets:
Before drafting your press release, ensure you have all the essential information and assets ready for your announcement. This includes data, quotes, background details, charts, links, images, videos, or other relevant assets that enhance your press release's readability and impact.
A comprehensive set of facts and supporting materials makes the writing process smoother and ensures that your press release is well-rounded and informative. These elements can add depth to your message and provide a more complete picture to your audience.
Part 2: Writing a Compelling Press Release
The art of writing an attention-grabbing press release is a vital skill for any organization. This part discusses the essential elements of crafting a compelling press release, from the headline to the supporting details.
1. Write a Compelling Headline:
Your headline is the first thing readers and journalists see, so make it captivating. Use action verbs, be specific, and keep it concise. A strong headline can entice people to read further. But avoid using clickbait headers.
2. Add More Context with a Sub-headline:
While the headline grabs attention, the sub-headline provides additional context. It should summarize the essence of your press release in a single sentence, supporting the main headline.
3. Convey the News Value to the Press:
Make sure your press release is newsworthy by following the reverse pyramid formula. Start with the most important information (who, what, where), then explain why and how. Journalists appreciate this concise and organized structure.
4. Thought-Provoking Quotes, Images, Videos, Charts, and Links
A well-crafted press release, including thought-provoking quotes, multimedia elements, and relevant links, can significantly enhance its impact and engagement. Here's why these components are vital:
Thought-Provoking Quotes: Quotes from key personnel within your company, such as executives, project leaders, or subject matter experts, serve as powerful storytelling tools. They provide a human touch to your press release and add depth and credibility to your story. Thoughtful and relevant quotes make the content more relatable and help convey the significance and context of the news or announcement. Quotes can articulate the vision, mission, and impact of your company's actions, making it easier for readers to connect with your message personally.
Images and Videos: Visual content, such as images and videos, can make your Press release more engaging and shareable. Whether photos of a product launch, a video message from your CEO, or infographics explaining key data points, multimedia elements can capture the audience's attention and provide a more comprehensive understanding of your news. Visuals break up the text to help convey emotions and effectively illustrate your announcement's impact.
Charts and Graphs: For press releases that involve data or statistics, charts and graphs can be invaluable. They transform complex information into easily digestible visuals, enabling readers to grasp the significance of your news quickly. Charts and graphs clarify and reinforce your key points, making your Press release more informative and persuasive.
Links to Additional Information: Including relevant links within your press release can allow readers to explore further. Whether it's a link to your company's website for more details, a link to a related news article, or relevant research, these hyperlinks can provide additional context and credibility to your news. They allow readers to access comprehensive information conveniently, enhancing their understanding of the topic.
Incorporating these elements into your press release makes it more compelling and increases its shareability and impact. Thought-provoking quotes, multimedia content, and informative links enrich the storytelling aspect of your press release, ensuring that your message resonates effectively with your target audience.
5. Provide Valuable Background Information:
In the final paragraphs, strengthen your narrative by offering additional details. Discuss creative aspects of your company's development process or comment on the future implications of your announcement.
6. Disclaimers and Forward-Looking Statements:
When writing your press release, including disclaimers and addressing forward-looking statements is crucial. These disclaimers protect your company and the readers by providing transparency about the potential risks and uncertainties associated with future projections and statements.
Disclaimers: Depending on the nature of your press release and regulatory requirements, you may need to include disclaimers related to financial or investment advice, regulatory compliance, or other relevant legal aspects. Ensure that your disclaimers are clear, concise, and aligned with the applicable laws and regulations governing your industry.
Forward-Looking Statements: If your press release includes forward-looking statements about your company's future plans, performance, or expectations, it's essential to identify these statements as such. Forward-looking statements are inherently uncertain and may be subject to variables that could cause results to differ from those projected. Include language highlighting the speculative nature of such words and encouraging readers to review your company's filings with regulatory authorities for more information on potential risks and uncertainties.
Seek guidance from your legal counsel or compliance experts to ensure that your disclaimers are clear, concise, and aligned with the applicable laws and regulations governing your industry.
7. Layout, Formatting, and Design: Crafting the Visual Appeal
While the content and messaging of your press release are critical, the way it is presented visually can significantly impact how it's received by your audience. Your press release's layout, formatting, and design aspects play an important role in making it informative, visually appealing, and user-friendly. Here's why paying attention to these elements is essential:
Readability and Clarity: An organized and well-structured layout ensures your press release is easy to read and understand. Proper formatting with clear headings, subheadings, and bullet points helps break down information into digestible chunks. A clean and professional design enhances the overall readability of your content, making it more accessible to your audience.
Brand Consistency: Your press release should reflect your company's brand identity. Consistency in font choices, colors, and logo reinforces your brand image and helps readers instantly recognize your company. This consistency across all communications fosters trust and familiarity with your audience.
Visual Elements: Incorporating images, videos, charts, and graphs seamlessly into the layout enhances the visual appeal of your press release. These elements make the content more engaging and provide additional context and support for your news. Well-chosen visuals can convey emotions, illustrate critical points, and effectively capture the audience's attention.
Call-to-Action (CTA): A well-placed CTA within your press release can guide readers on the next steps. Whether encouraging them to visit your website, sign up for updates, or contact your company, a strategically positioned CTA can drive desired actions and engagement.
Professionalism: A well-designed press release conveys professionalism and attention to detail. It reflects the seriousness and significance of your announcement, leaving a positive impression on your audience, including journalists and investors.
Incorporating these layout, formatting, and design considerations into your press release will make it more reader-friendly, visually appealing, and aligned with your brand, ultimately enhancing its effectiveness in conveying your message to your target audience.
8. Proof Read and Final Approval by the Board of Directors
Before finalizing your press release, ensuring accuracy and alignment with your company's objectives is essential. This involves a thorough proofreading process to catch any errors and verify the consistency and clarity of the message.
Moreover, for public companies, it is often a regulatory requirement that the Board of Directors or a designated committee review and approve significant press releases. This additional layer of scrutiny helps maintain transparency and accountability in communications with shareholders and the broader public.
Proofreading: Assign proofreading tasks to skilled individuals within your organization or consider employing professional proofreaders. Check for grammatical errors, spelling mistakes, and any ambiguities in the text. Ensure that the information presented is accurate and supported by credible sources.
Board Approval: If your press release pertains to a material event or important corporate announcement, seek approval from the Board of Directors or the relevant governing body within your organization. This step ensures that the release aligns with the company's strategic goals, complies with regulatory requirements, and maintains consistency with your corporate messaging.
Incorporating these steps into your press release process can enhance your communications' quality, accuracy, and compliance, which is especially crucial for public companies with regulatory obligations.
Do public companies you are involved with typically obtain board approval before disseminating significant press releases?
Yes, all the time.
Most of the time.
Rarely.
Part 3: Distributing Your Press Release Effectively
To maximize the reach of your press release, it's vital to master the art of distribution. Ensure you use a news disseminator (see list of providers below) that meets the regulatory minimum dissemination standards. In this section, we'll guide you through the strategies to ensure your press release reaches its destination and gets the attention it deserves.
1. Choose the Right Distribution Channels:
Selecting the proper distribution channels is key to reaching your target audience. Consider using a mix of channels like newswire services, your company website, social media, email, and investor relations platforms, posting it on your website, and sharing it with your mailing list. (see list of providers I have worked with below.)
2. Tailor Your Distribution:
Customize your distribution list based on the nature of your news. For financial updates, focus on financial news outlets, while for product launches, target industry-specific publications and bloggers.
3. Timing Matters:
Consider the timing of your press release. Avoid releasing it during significant news events that might overshadow your announcement. Also, consider the day of the week and the time of day for maximum visibility.
4. Use Multimedia:
Enhance your press release with multimedia elements like images, infographics, or videos. Visual content can make your Press release more engaging and shareable.
5. Monitor and Follow-Up:
After distributing your press release, monitor its performance. Track how many views, shares, and mentions it receives. Additionally, follow up with journalists and media outlets to ensure they received your release and inquire if they need more information or interviews.
6. Consider Paid Promotion:
Consider investing in paid promotion in highly competitive industries or for significant announcements. Options include sponsored content on social media, boosting your press release through digital advertising, or working with influencers, media outlets, and podcasters to increase visibility. Engage with these key voices to share your news and encourage re-shares within their networks to maximize the reach of your press release.
If you follow these steps, you will distribute your press release and help it reach its full potential regarding visibility and impact. This strategy enables you to engage with your target audience, including the investor community, the media, and the public, on a broader scale and generate greater interest in your company's news.
Conclusion: Empowering Small-Cap Public Companies with Effective Press Releases
Effectively communicating news and milestones is a powerful asset for small-cap public companies. Crafting a compelling press release goes beyond sharing information; it's about creating a lasting impression, engaging with the investor community, and promoting your company's growth. In this process, consider the importance of framing a compelling corporate narrative and leveraging storytelling techniques. By following the comprehensive guide presented here—from thorough preparation to skilled writing, strategic distribution, and storytelling—you can harness the potential of press releases to propel your small-cap public company forward.
News Disseminators:
Here is a list of providers I have used for press release dissemination. Note that the cost may vary.
These services transmit, by wire or other electronic imaging means, news releases on a commercial basis to a network of securities regulatory bodies, brokerage firms, news media, financial publications, and investor/business media outlets:
NewsDirect
Cision
AccessWire
Canada Stockwatch (*May edit release unless a fee is paid.)
NewsWire
Pease note that the information provided here is for reference purposes only. Ensuring you use approved dissemination services that comply with your reporting jurisdiction's reporting regulations and guidelines is essential.
Thank you for joining us on this journey to unlock the power of press releases for small-cap public companies. We wish you success in your communications and endeavors.
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