San Francisco: PR is considered the most effective marketing tool
by start-up technology companies, and formed the largest single
marketing investment for them in 2001, according to a survey released by
Launch Pad and Blanc & Otus.
In 2001, the average marketing budget increased from $2.2 million
to $2.8 million, although as a percentage of total spending they
fell from 20% in 2000 to 15%.
"PR was also considered the second-biggest area in which companies think
they under-invested in during 2000," said Shelley Harrison, CEO of
Launch Pad. Most respondents thought they over-invested in
"What is also happening is that every dollar that goes to marketing
spending has to show measurable results," said Harrison. "That's why we
saw a dramatic increase in direct marketing, and a distaste for large
The number-one marketing challenge cited was generating awareness. "Last
year, this was also number one, but this year it was number one by
double the number of respondents," Harrison said.
The study targeted marketing executives in 32 b-to-b companies during
the second quarter of 2001, across a range of industries including
retail systems, internet infrastructure, and global management systems.