Analysts as Category Creation Partners: Beyond the Pay-to-Play Myth

Writing checks to analyst firms is easy. Building genuine influence is hard. For founders creating new categories, this distinction matters more than most realize. In a recent episode of Category Visionaries, Eric Olden, CEO of Strata Identity and three-time category creator, challenged conventional wisdom about analyst relations and shared a framework for building authentic influence.

The Uncomfortable Truth About Analyst Relations

“Analysts and the media relations, I think are one of the most under invested in things that I think founders should look at prioritizing,” Eric explains. But he’s equally quick to address the elephant in the room: “Get over it. Because guess what? That’s just the world that we’re in. And you could argue about it, cry about it and say, oh, we wish it were different. We wish it was all on the merits alone. That’s just not the way the world works.”

Beyond the Pay-to-Play Myth

A common misconception is that analyst coverage can simply be bought. Eric’s experience at Oracle dispels this notion: “Even when I was at Oracle, we had infinite budgets. It doesn’t matter how much money you spend with the analysts, they’re not going to write stuff just because you’re paying them.”

This reality leads to a more nuanced approach to analyst relations – one that prioritizes genuine value creation over mere financial relationships.

The Specialist Advantage

When selecting analyst relations partners, domain expertise trumps general capabilities. “If you’re not working with someone as a specialist in your niche, then you’re really not going to get the same kind of return on things as you would if you’re dealing with someone who’s a specialist in an area like security,” Eric advises.

This specialization becomes particularly valuable when creating new categories, as specialists can better understand and articulate the nuances of emerging markets.

Evolution of Influence

The analyst landscape has fundamentally changed. “It’s not about big magazine coverage. No one cares about product launches anymore,” Eric notes. “It’s all about the micro analyst, the influencer, the individuals who cover things on a more niche boutique basis. You want to have a really deep network there.”

Investment Strategy

For founders questioning where analyst relations should fit in their priorities, Eric is unequivocal: “If it’s not in the top five things that you’re doing from a marketing standpoint, it really should be, I would say top three.”

The Research Foundation

One of Strata’s most effective tools for analyst engagement has been their “State of Multicloud” report. What began as customer development evolved into a powerful asset for market education. “We do it every year, and that allows us to show the evolution of this problem over time or a longitudinal analysis,” Eric explains.

This research serves multiple purposes:

• Provides valuable market insights to analysts
• Demonstrates deep understanding of customer problems
• Creates credible, quotable data points
• Shows market evolution over time

Managing Competitive Dynamics

A common concern when working with analysts is competitive exposure. Eric takes a pragmatic view: “I more of a mind to take the upside that the analyst is going to know or the media person is going to know that space better than to divulge my secrets to help them launch a product, because you can do that once. You’re never going to have a repeat customer.”

Building Long-term Authority

Category creation through analyst relations isn’t a sprint. “Over a long, many years of time, you start to build authority in that space,” Eric notes. This patience has paid off – some of Strata’s early content from 2020 continues to drive significant engagement.

The ROI of Third-Party Validation

While analyst relations requires investment, the returns can be substantial. Speaking about their work with Forrester, Eric notes: “They come in and they interviewed all of our customers and they got all of their metrics and details from them directly. We had no involvement in the creation of the report.”

This arm’s length validation helps establish credibility in ways that direct marketing cannot.

Practical Implementation Framework

Based on Eric’s insights, here’s how founders should approach analyst relations:

1. Invest in Specialized Partners “Getting a really good AR and media relations person is one of the best investments you can do,” Eric advises. He’s worked with the same firm since the 1990s because they understand his market deeply.
2. Create Valuable Research Original research like Strata’s “State of Multicloud” report provides analysts with insights they can’t get elsewhere.
3. Focus on Long-term Relationships Eric’s multi-decade relationships with analysts across multiple companies create what he calls his “unfair advantage.”
4. Embrace the New Influence Landscape Success requires understanding that influence has shifted from traditional analysts to a broader ecosystem of specialists and micro-influencers.
5. Prioritize Genuine Value The goal isn’t to buy coverage but to become a valuable source of market insights and customer understanding.

For founders creating new categories, analyst relations isn’t optional – it’s a fundamental part of market creation and validation. As Eric’s experience shows, the key isn’t having the biggest budget, but rather creating genuine value through market insights, customer understanding, and specialized expertise.

The most successful category creators view analysts not as gatekeepers to be paid, but as partners in market education and validation. This perspective shift, combined with patient investment in relationships and valuable market insights, creates the foundation for lasting category leadership.