How to effectively leverage PR for your Crowdfunding Campaign!

Summary

In this webinar, Sid from Indiegogo's marketing team interviews Jackson, founder of Proper Propaganda PR agency, about public relations for crowdfunding campaigns. Jackson shares insights on the importance of PR for building brand equity, the unique challenges of crowdfunding PR, and how to leverage media coverage effectively. He emphasizes the value of a performance-based billing model and the long-term benefits of PR, including credibility and trust building, which are crucial for startups and consumer tech companies.

Takeaways

• 📢 PR is a strategic communication tool primarily aimed at building brand equity and trust, which is especially important in the tech industry.
• 🚀 A performance-based billing model for PR agencies can align interests with clients, as compensation is tied to media coverage outcomes.
• 🛠️ Having a working prototype or sample is crucial before engaging in PR activities for a crowdfunding campaign, ensuring a strong foundation for media engagement.
• 💡 PR's role in a crowdfunding campaign is to provide credibility and support long-term brand building, rather than driving immediate sales.
• 🔍 A clear differentiation from competitors is vital for a successful PR campaign, especially when pitching to media outlets.
• 🗓️ PR requires lead time and strategic planning, with significant efforts needed pre-launch, including building materials, targeting media, and outreach.
• 💰 Allocating a PR budget for a crowdfunding campaign typically ranges from $7,000 to $20,000, contingent on the potential for media coverage and brand impact.
• 📉 Focusing on the founder's story or launching on a crowdfunding platform alone may not be newsworthy; the narrative should be compelling and tied to a unique product offering.
• 🔄 The value of PR extends beyond the campaign's duration, with media coverage serving as a lasting asset for the brand, useful in various future business aspects.
• 👥 Building relationships with journalists early on can be beneficial for long-term brand visibility, especially when they show genuine interest in the product or brand.
• 🎯 Targeting the right journalists by understanding their past coverage and interests can significantly increase the chances of successful media outreach.

Q & A

What is the primary purpose of PR in the context of crowdfunding?

The primary purpose of PR in crowdfunding is to build brand equity. It serves to establish trust and credibility with consumers by leveraging third-party endorsements from media outlets, which can indirectly influence sales and contribute to the long-term success of a campaign.

Why is having a working prototype important before engaging in PR for a crowdfunding campaign?

A working prototype is crucial because it demonstrates that the product is viable and functional. Journalists and media outlets are more likely to cover a story if they can see and test a tangible product, which can lead to more authentic and convincing coverage.

What is the recommended timeline for starting PR efforts before a crowdfunding campaign launch?

It is recommended to start PR efforts around eight weeks pre-launch. This timeline allows for building materials, targeting media, crafting the message, conducting outreach, and ideally, setting up demos or sample reviews under embargo before the official launch.

How does the billing model of Proper Propaganda differ from traditional PR agencies?

Proper Propaganda uses a performance-based billing model, which means that the majority of their compensation is tied to the media coverage they generate. This model aligns the agency's interests with the client's success and shares the risk associated with PR outcomes.

What is the role of PR in building relationships with journalists during a crowdfunding campaign?

PR plays a significant role in establishing long-term relationships with journalists by introducing them to the company and its products at an early stage. These relationships can be beneficial for future coverage and can help maintain a positive brand image throughout the company's growth.

Why is it not advisable to focus on press releases as the primary PR strategy for a new crowdfunding campaign?

Press releases, while useful for search engine visibility, are often not the most effective way to secure press coverage, especially for new and unknown brands. Media outlets are more interested in tangible products and stories that resonate with their audience rather than formal announcements.

What is the significance of building brand equity in the context of a crowdfunding campaign?

Building brand equity is significant because it adds value to the brand and contributes to its long-term success. A strong brand equity can lead to increased customer loyalty, higher return on ad spend, and better chances of securing retail partnerships and future investments.

How can a company determine if PR is the right strategy for their crowdfunding campaign?

A company can determine if PR is right for their campaign by assessing the readiness of their prototype, differentiating their product from competitors, and understanding their budget for PR activities. It's also important to consider whether the campaign has the potential to generate newsworthy stories that will resonate with the media and the audience.

What are some of the misconceptions about the role of PR in driving direct sales for a crowdfunding campaign?

One common misconception is that PR can directly and immediately drive sales, similar to performance marketing. However, PR's primary role is to build brand equity and credibility, which can indirectly influence sales over time through increased brand awareness and trust.

How can a company leverage AI tools in their PR strategy without over-relying on them?

A company can use AI tools for research, drafting, and editing assistance, but it's crucial to have a human oversee the process to ensure the content is authentic, engaging, and free from errors. AI should be considered as a tool to enhance the PR process rather than a replacement for human judgment and creativity.

What is the importance of understanding the media landscape and journalists' interests when pitching a story?

Understanding the media landscape and journalists' interests is crucial for crafting targeted and relevant pitches. It helps in identifying the right outlets and journalists who are more likely to be interested in the story, increasing the chances of securing coverage and building meaningful relationships with the media.