Black presentation

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How to measure PR ROI
(Next week how to nail a jelly to the ceiling)
Paul Hender, Media Analysis Director, Metrica
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Increased need for results driven PR
Percentage of respondents
Percentage of organisations where PR works with
other management departments
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Increased use of AVEs
Percentage of respondents
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Print media
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AVEs in print media
The Guardian Mono Page Rate 11,400
AVE 11,400 X 0.5 5,700
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Online media
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Banner advertising
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Online AVEs
Guardian Online CPM (CPT) 30 Audience
data Page impressions 127,919,916
(ABCe) Unique users 12,973,753 (ABCe),
1,955,000 (Nielsen/NetRatings) AVE for Guardian
Online Based on page impressions 3,837,600
Based on ABCe unique users 389,220 Based on
Nielsen unique users 58,650 AVE for 1 page in
Guardian newspaper 11,400
CPM Cost per thousand impressions
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The problem with online AVEs
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6
25
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Number of articles
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Return on Investment
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R.O.I.
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Return on Investment
Ask ten PRs to define ROI and youll get ten
different answers. - Colin Farrington, Director
General, CIPR
ROI is not so much understood as waved about as
a totem to ward off evil spirits, namely those
trying to cut expenditure - Tim Ambler, senior
fellow, London Business School
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Return on Investment
Return on Investment (ROI) is the ratio of money
gained or lost on an investment to the amount of
money invested.
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A problem with ROI
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Results driven PR

• Number of articles 346
• OTS 41 million
• AVE 2.5m
• Shes a Vision single charts at 64!
• Uplift in footfall amongst target demographic

• Number of articles 605
• OTS 115 million
• AVE 1.25m
• Sales targets broken and now exceeds 1.8m

• Reach 24.8 million
• AVE 2.5m
• ROI 5.51
• 10 increase in footfall in shopping centres
• Directories market share increase from 6 to 10

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Results driven PR

• Number of articles 39
• OTS 26.4 million
• 184,436 microsite visits
• 7,239 downloads of Nokia shorts films

• Number of articles 432
• AVE 2m
• GRPs 442
• Reach 87 or target audience
• Message analysis
• Econometric modelling to be done to disaggregate
  PR effect on sales data

• Number of articles 194
• AVE 1.8m
• OTS 201
• Message analysis
• 420 entries to firm friends competition
• Sales of Dove firming increased by 700

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Issues with measuring PR ROI

• Definition of ROI flawed
• Often difficult to assess true cost of PR
  programme
• How can you prove that sales resulted from media
  coverage?
• What about other effects other marketing
  channels, price sensitivity, seasonality?
• Long term as well as short term effects brand
  equity
• How do you put a value on attitudinal changes?
• What about non-commercial objectives e.g.
  stopping smoking?

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Output, Out-take and Outcome
Outcome
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Many specific audiences
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Return on investment
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Return on investment - core audience reached per
spent
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Out-take
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Media coverage and Website traffic
Advertising
Advertising
Apr May Outdoor May only Radio
Oct Nov TV
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Aviva Challenge
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PR
Advertising
Direct Marketing
Sales
Website hits
Call centre activity
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Website traffic and multiple communication
channels
Index of each data source
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Econometric modelling web visitors
Variations in website visitors explained by
each marketing activity
Web visitors
Week number
Integrated communication model web visitors
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Econometric modelling financial donors
Variations in donor activity explained by each
marketing activity
Integrated communication model financial donors
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Ask.com econometric modelling
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Ask.com econometric modelling
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