"...The site traffic numbers PRNewswire sends you in their post-release report are front door numbers as records verification if the SEC does a disclosure audit, it doesn't represent actual eyeballs on your release..."
i"m having a little trouble interpeting that Atticus11. is this analogous to a magazine promising a potential advertiser a certain number of potential buyers because of the magazine's prescence in doctor's offices and the like ?
Not exactly ... certain events in a company's life cycle are required to be "widely publicized" and made simultaneously available to all investors. This includes Q4s, 8-Ks, 10-Ks, departure of C-level officers, etc. Similar rules in other countries also mandate a process of wide publicity. In Europe, this is the "Transparency Obligations Directive." Wire services like MarketWire, BusinessWire and PRNewswire meet the minimum publicity requirements. Each of these outlets charge between $500-$2000 to post a press release to their own website and then simultaneously archive it to several hundred other websites with whom they've contracted.
For example, today, Alere Corporation had a corporate life event occur, and distributed a press release titled "Alere Inc. Announces Pricing of Senior Subordinated Notes Offering" via PRNewswire. It, along with hundreds of similar releases, was archived into the regulatory disclosure archives of Reuters (and hundreds of other sites, including wsj.com, CNBC, etc.), here -
Alere Inc. Announces Pricing of Senior Subordinated Notes Offering<ALR.N>| Reuters
To be clear, however, this never appeared on the front page of Reuters or in any section of Reuters to which one could navigate. It's basically at an unconnected/unlinked page at reuters.com (you might be able to navigate to it through a few steps if you really tried, I'm not sure frankly, because no one does that). It meets the wide publicity requirements because market analysts (or anyone, really - though I'm not sure who other than an analyst or funds manager would) are able to track these releases by NYSE/NASDAQ ticker symbol or industry keyword through tracking services like WestMonitor. The total site traffic is provided by PRNewswire to the release purchaser to demonstrate they have archived it on enough sites of wide reputability that the minimum disclosure requirements were met.
Occasionally, non-corporate life events or marketing-focused press releases are released by companies or PR agencies via the wire services. This is done because, when you pitch media, it's easier to direct them to a specific URL to view your press release rather than attaching a word document to an email. But, the release doesn't draw attention in the absence of you calling attention to it and, of course, media don't "run" or "print" press releases - press releases simply serve as a means of putting your written communication in a single place so a reporter doing a story on XYZ could, perhaps, incorporate a quote from your release (easier than scheduling an interview), or lift a couple stats from it.
Many fly-by-night publicists operating outside the ethical guidelines established by the PRSA use this system to scam people. "For $X I'll get you into Reuters!" Well, technically, I suppose they are but not in any manner that anyone will ever see. A legitimate hit on AP or Reuters is a big deal and will generate attention of millions of people - we've scored a few for our clients in the last year. I'll just say that if all it involved was spending $800 to upload something to a website, real estate on Madison Avenue would be known for its used car dealerships and Quiznos.