Rising demand from new businesses will contribute to price increases for press release services.
Los Angeles, CA (PRWEB) January 14, 2014
Buyers considering investing in press release services have moderate bargaining power with suppliers, with a balanced 3.17 score on a scale of 1 to 5. In particular, buyers posting a high volume of press releases or willing to sign long-term contracts can leverage their potential account size to bargain down their price paid per release, explains IBISWorld research manager Savannah George. On the other hand, a buyer posting a single press release will have no negotiating power and can simply pay a one-time fee online for the press release service.
Improving communications channels are mitigating the rising demand for information. “Although improving business sentiment and the rising number of companies are boosting demand,” says George, “the proliferation of new communication technologies like mobile applications is making it easier for buyers to reach an audience more directly than through a distribution service.” Case in point, a recent regulator decision has permitted public companies to disseminate operations information to investors via social media. As a result, some traditional press release buyers are opting out of their contracts.
Press release providers are also harnessing improving communications technologies to enhance services through larger market reach and new offerings like search engine optimization. In turn, such products are drawing buyer attention to the benefits of using press release services. As a result of the balanced factors that are influencing the supply and demand for press release services, pricing is stable, which can further incentivize frequent or high-volume buyers to seek long-term contracts. Current major providers of press release services include Business Wire, GlobeNewswire Inc., Marketwire Inc. and PR Newswire. For more information, visit IBISWorld’s Press Release Services procurement research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of press release services, which are also called news wires or wire services. Providers typically operate a distribution platform that facilitates the creation and optimization of customized news content, which enables buyers to easily distribute proprietary news to a general or targeted audience. Such platforms usually also include tracking capabilities that enable buyers to understand audience reach. Press release writing services, news syndicates, advertising or marketing services, and special interest newsletter services are not included in this report.
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