Here's a couple of ways to stretch $1k marketing budget:
* Hire an Indian/East European company on eLance that specializes in internet marketing. Pay them $3-5 an hour x 10 hours a week x 3 months to do their thing. Or, you can pay them by the task.
* Write a letter to English/Business departments at the three closest colleges. Tell them you have a 3 month marketing internship. It's unpaid, but interns will receive a $200 a month stipend. Have them write blog posts, blog comments, submit to bookmarking sites, write press releases, etc... If college kids are your demographic, be sure to give your interns swag.
* Get a bunch of users at once from Amazon's Mechanical Turk service. Set up a job called, "evaluate my new news service", and pay $0.02 a hit. 10000 hits x $0.02 = $200 Ask them to write their impressions in a comments form on your HIT description. Give them an option to submit their email address if they want to be updated about future changes to your site.
* User Amazon's Mechanical Turk service command line tools to script a recurring HIT. You can ask 100 people a day to look at your site, register, comment, etc... 100 hits a day x $0.02 = $2 a day.
* Adwords, but depending on your site, your keywords, you're probably looking at $0.05-.50 a hit.
* Depending on your site, you could hold a competition and submit it to whatever forums and BBS's you'd like to. The winner gets a brand new $200 iPod.
* Buy swag and hand it out to your targeted demographic. Or, give it to your first passionate users. People love free stuff, and you might be able to get some word of mouth/buzz from passionate users that just got a t-shirt from your site. Cost of a custom T-shirts in small batches: $10-15 a piece. Custom stickers in batches of 1000: $75. http://www.stickergiant.com/custom_stickers/