The Real ROI of Public Relations
June 11th, 2007 posted by Lorena CrowleySo often, public relations professionals are asked to quantify and determine a figure that represents the ROI of ongoing public relations and media relations programs. Although there are multiple accepted measurements to track the quality of a program, the truth is that the real worth and success that comes from strategic communications is much more abstract than ad equivalencies and impression numbers. In fact, the most powerful programs may even have alarmingly low, and inaccurate, measurements based on these traditional formulations.
Ad equivalencies present a problem because editorial coverage rarely translates neatly into an advertising rate. A mention in an article can be far more valuable than a self-endorsing advertisement. Some coverage includes images, others only text. Some clips extend across multiple mediums (print and online), unlike most standard advertisements. The reality is that no matter how much an organization wants to treat media coverage like an ad, they just aren’t the same.
The same problem becomes evident when judging impressions. There is no way to quantify how a reader perceives what is in print or on the computer screen in front of them.
To pose an even larger discrepancy in determining ROI, many of the most successful PR programs would have significantly lower quantities of placements. That is because their PR efforts are focused on generating quality coverage that is targeted properly and approached strategically. Quality placements take time and are results of ongoing relationships between an organization, key industry figures and appropriate media. Unfortunately, getting the right message to the proper people, with added third-party endorsement, can’t be assessed by a rate card.
As an agency, we do provide clients with the results they need to justify their program because that is often what they want to hear. As a practitioner, I understand the true wins a client should celebrate: being sought out by a prominent member of the media to comment on a particular topic, being mentioned positively and candidly in non-traditional media, having company-created messaging adopted by others in the industry, and being identified as an industry leader by someone outside of an organization. These examples, among others, don’t carry a unit in reports, yet they are the best indicators of a thriving program. Priceless.
June 12th, 2007 at 2:27 pm
You are absolutely right. I have heard various equivalency formulas for PR vs. advertising, anywhere from three to seven times the value. But they are different animals, and formulas cannot account for the differences. Often clients do not understand how long it takes to see results from a PR campaign. Unlike advertising, public relations requires cultivating media contacts, finding the right angle and pitching appropriate reporters, and becoming a resource to reporters. All it takes to get media for an advertizer is to write a check. Advertising and PR both have their places, but you cannot exchange one for the other.
June 13th, 2007 at 3:07 pm
Absolutely. But for those clients who can’t have it all, an interesting predicament arises. Writing out checks for advertising can cause quite a bit of damage to a marketing budget. But for those new to PR, waiting months to see beginning results can be very trying. It’s a balance, but marketers open to strategic uncontrolled messaging and relying on long-term measurements, as opposed to short-term, can truly benefit.
June 21st, 2007 at 10:35 am
Another problem we struggle with daily is how to show ROI for online publicity. We know there is value, but how can one “prove” the value of a media with a seemingly endless shelf life and elusive audience? How can one measure the influence that multiple impressions (from ongoing online and conventional publicity) has on a potential buyer? The prospect may not respond directly to any one of the publicity items, but the collective experience may inspire them to accept a sales call that they might not have otherwise, leading to a multi-million dollar deal. Also priceless.