More Meaningful Ways to Measure PR
(and Why AVEs Don’t Work)
Public relations (PR) has exploded far beyond your television and local newspaper, with digital marketing providing new online platforms — and with them, a dizzying array of new, online PR metrics. However, not all metrics are created equal.
PR value or Advertising Value Equivalent (AVEs) is an approach that is increasingly criticized for its failure to fully capture the impact of PR campaigns. As a PR agency based in Bangkok, we appreciate the importance of communicating performance clearly and succinctly to our stakeholders, but simplicity is not the same thing as transparency.
Here, we explain why PR value or AVEs are misleading and offer alternatives that your organization should use when measuring your PR performance or establishing key performance indicators with your agency.
The tale of PR value and AVEs
The notion of PR value, as expressed through AVEs, has long held a prime seat at the table of marketing strategy, spinning an enchanting tale of return on investment (ROI) that seems both tangible and desirable. For a time, it answered a common problem: how can I know that this PR campaign was worth the budget?
AVEs therefore, seek to answer this question by comparing media coverage earned through PR efforts to the cost of equivalent advertising space and using an arbitrary “PR factor” to assign value to different types of media. The formula goes:
AVE = (size of coverage) x (publication’s advertising rate card) x (PR factor)
The reality is that PR value has overstayed its welcome. A single dollar value is easy to digest and compare, but the full story of the PR campaign is far more intricate than what AVEs can capture. This metric operates on an antiquated assumption that every mention, every column inch in print or second on air, holds an intrinsic value equivalent to its advertising counterpart.
“There is no evidence to suggest that advertising and editorial space hold equivalent value… AVE subjugates the value of the messages delivered through public relations simply to the cost of the space and/or time occupied by advertising, not the impact or effectiveness of public relations in its broadest definition.”
Institute for Public Relations
Report of the Advertising Value Equivalency (AVE) Task Force
At PAPER & PAGE, we acknowledge that it’s time to politely show AVEs the door and make room at the table for more nuanced and diverse ways to measure earned PR coverage.
Better ways to measure PR performance
Source: Bartolomiej Pietrzyk / Shutterstock.com
As recognized by industry experts, there are many alternative methods to AVEs that offer a more accurate depiction of PR impact. At PAPER & PAGE, we aim to give our clients better insights into how their campaigns are performing and focus on placements, reach, and engagement — some of the core elements in shaping the digital footprint of a brand.
Placements, or clippings, refers to any editorial content published on third-party publications directly related to your campaign. This is the first step to getting more insightful metrics. In our clipping reports, we compile all platforms that publish your campaign press release or related campaign content. We also conduct audits to evaluate the quantity and quality of backlinks to your desired landing page that were generated by the campaign.
Reach evaluates the potential audience of the content’s placement. In traditional PR, you might look at newspaper circulation numbers or TV ratings, but online, we track a publication’s social media followers and unique visitors to its website. It’s essential to remember that while having a wide reach is important for brand awareness, that’s not the same thing as brand perception.
Engagement reveals the level of interaction between your audience and your content and is considered a more meaningful indicator of PR performance. We measure likes, comments, shares, and organic mentions. Engagement rate — number of engagements divided by the number of impressions — can say volumes about the quality of a publication’s audience. Through platform-specific analytics, we can identify the type of content your audience enjoys and tailor our strategies accordingly, optimizing your PR efforts over time.
Conversion refers to the number of desired actions taken by your target audience, which can depend on the goals of your PR campaign. Conversions are usually measured in terms of certain events that take place on your website, such as the number of contact form submissions, and this can take longer to measure. Conversions can be more directly correlated to campaign performance, but are by no means the entire picture of a successful PR campaign.
Going beyond metrics
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While there’s a strong overlap between the way marketers measure paid advertising and public relations performance, the quality of earned coverage is more important and not easily quantifiable. We believe that great PR is about more than numbers — it’s about making an impact.
“Advertising is purchased and affords complete control to the advertiser for content, placement and frequency and is almost always positive. In contrast, publicity, or earned media, is only semi-controllable after ceding the final output to the medium that may result in positive, neutral or negative messages.”
Institute for Public Relations
Report of the Advertising Value Equivalency (AVE) Task Force
Effective PR efforts result in earned coverage that is both positive and relevant, meaning that your organization or project is not only perceived favorably but in a way that’s true to your key messages. This becomes especially important in social marketing, where public perception of a social issue is just as important as public awareness.
As the PAPER & PAGE team continues to innovate and adapt to Southeast Asia’s dynamic markets, we are committed to faithfully communicating the true value of PR. We invite you to join us in embracing a more holistic approach to understanding PR & marketing, one that values resonance over reach and substance over statistics.
