Born Peter Schmidt in New York City, Pete Smith got a job after graduating business college with The Player magazine and later with Billboard magazine. That led to his being hired as a publicist for Famous Players-Lasky and Artcraft Pictures, and he was later appointed publicity director at Paramount Pictures. Director Marshall Neilan hired Smith to be the publicist for his own production company, and Smith left New York for Hollywood. After Neilan's company closed, Smith freelanced for a short period before being hired by MGM in 1925 as the head of its publicity department, a position he held until 1930.