Five Massive Marketing Mistakes Small Caps Make Number Two - Not understanding the value of the media


Five Massive Marketing Mistakes Small Caps Make  Number Two - Not understanding the value of the media

Five Massive Marketing Mistakes Small Caps Make

Number Two - Not understanding the value of the media

Louise Elyse, principal Small Caps PR http://www.smallcapspr.com


It has been demonstrated in research studies that a good corporate reputation, considered an intangible asset, brings considerable benefits to a small cap company.

Research indicates that positive perception of a company by the broader public can result in at least four favorable outcomes: lower cost of capital, an ability to attract new investors, increased market capitalisation and stronger resistance to volatility.

According to Forbes Magazine intangible assets account for as much as 75% of a public company’s market capitalisation.

There is always an opportunity to add value in small caps due to poor analyst coverage, which leads to poor market pricing efficiency, meaning many are undervalued.

Therefore, it is crucial that small cap companies are proactive in increasing their profile via marketing and public relations.  It is not enough to rely on investor relations.

Small cap companies must actively promote themselves to the investment community, potential shareholders and general business community.

Yet many are neglecting this vital element and here is where they are going wrong:


Number Two - Not understanding the value of the media

Being featured in major, credible newspapers, magazines, radio programs, online media, television programs is enormously valuable. 

Unlike paid advertising, the readers and viewers of these publications know that a journalist has researched your company and is recommending it. 

Therefore, the credibility value is massive.  

This type of credibility, being featured in a major high profile, renowned publications can not be bought.

An article in the Australian Financial Review, Financial Times, The Australian, Wall Street Journal and similar will vastly increase a small caps profile and reputation.

Current shareholders, analysts, brokers, fund managers, potential shareholders will stand up and take major notice. 

These publications reach many hundreds of thousands of readers and viewers in their print and online versions.

Paying for an article to be written on some small cap website, which is viewed by a few hundred to a few thousand, is just not going to cut it. It’s a complete waste of money.

But be featured in the Australian Financial Review, The Australian, Financial Times, Washington Post and watch the share price and market capitalisation increase.