Pathos Communications (LSE:NEWS) is positioning itself for further growth by combining a pay-on-results approach to media coverage with proprietary AI technology, opening access to PR services for a much broader international customer base.
The company’s growth opportunity was highlighted in a recent Financial Times feature, with Pathos recognised as the UK’s fastest-growing business in its sector.
Speaking on the ADVFN Watch List, Pathos Communications CEO Omar Hamdi outlined how the company is changing the traditional PR model and using technology to make media coverage more accessible, scalable and measurable.
Changing the traditional PR model
For many smaller businesses, securing meaningful media coverage can be challenging. Traditional PR services can involve significant retainers, with companies paying upfront for the opportunity to generate coverage without certainty over the results.
Pathos is taking a different approach.
Its pay-on-results model is designed to align the cost of PR with the delivery of outcomes, potentially making professional media exposure accessible to businesses that may otherwise be reluctant to commit to a traditional PR retainer.
Hamdi explained that Pathos has been working to take many of the tasks traditionally delivered by a small team of highly experienced PR professionals and “virtualize” them through processes, tooling and technology.
That approach is allowing the company to address a much larger potential market.
According to Hamdi, the global opportunity extends across hundreds of millions of small and medium-sized businesses, many of which have a story to tell but may not want to commit to the cost and uncertainty associated with conventional PR.
Proprietary AI creates scalability
A key part of the Pathos growth story is its use of proprietary AI technology.
By combining technology with established PR processes, the company is looking to make its service more scalable while maintaining a focus on delivering measurable results for clients.
This creates an opportunity to expand beyond the traditional PR agency model, with technology helping Pathos serve a larger number of businesses across multiple markets.
The timing is also significant as businesses increasingly recognise that media coverage can play a role far beyond traditional brand awareness.
PR becomes increasingly important in the AI era
One of the most interesting areas highlighted by Hamdi is the changing relationship between PR, search and artificial intelligence.
He described Generative Engine Optimisation (GEO) as an important emerging opportunity, arguing that “PR is the new SEO” as businesses look to improve their visibility across AI-powered search and answer platforms.
As AI systems increasingly provide users with answers based on information available across the internet, being referenced by credible third-party media can become an important component of digital visibility.
Hamdi cited an estimate that a significant proportion of citations used by AI platforms originate from PR and media coverage, highlighting what could become an increasingly important market opportunity for businesses seeking to establish their authority online.
For Pathos, this potentially expands the role of media coverage from simply generating publicity to helping businesses build a stronger digital footprint in an increasingly AI-driven online environment.
International expansion
Pathos is already operating internationally, with Hamdi stating that the company has clients in around 90 countries.
The next phase of growth is expected to include a greater focus on international markets, with the Asia-Pacific region identified as a particular area of opportunity.
The company has established an APAC team and is looking to build on the progress already being made in the region.
International expansion provides another potential growth driver as businesses around the world increasingly seek cost-effective ways to communicate their stories, attract customers and establish credibility.
A large addressable market
The underlying opportunity for Pathos is supported by a continual flow of potential customers.
Businesses are launched, raise capital and enter periods of growth every year. Each of these milestones creates a potential need for communications and media exposure.
Pathos believes its model can appeal particularly strongly to companies that want the benefits of PR but remain cautious about committing to large upfront retainers.
By linking its commercial model more closely to results and using proprietary technology to increase scalability, the company is seeking to broaden the addressable market for its services.
Building on growth
For Pathos Communications, the combination of AI, a pay-on-results commercial model and international expansion provides three important pillars for its next stage of development.
The recognition from the Financial Times provides further visibility around the company’s growth, while the opportunity to serve a much larger SME market gives Pathos significant scope to continue expanding.
With businesses increasingly competing for visibility across traditional search engines, social platforms and AI-powered services, the importance of credible media coverage is also evolving.
Pathos is positioning itself at the intersection of these trends, using technology to make PR more accessible while seeking to deliver measurable outcomes for clients.
With an established international customer base, continued investment in its AI platform and an expanding presence in markets such as APAC, the company sees significant opportunities ahead as it works to scale its model globally.
For more information visit https://pathoscommunicationsplc.com/
