Wednesday, July 1st, 2009
MARKETING/P.R.
P.R.iceless?
Translating the value of public relations into dollars and cents isn’t always easy.
BY RACHEL MERANUS, VICE PRESIDENT OF PR NEWSWIRE
ILLUSTRATION BY MICHAEL CAMARRA
MOST COMPANIES APPRECIATE the inherent benefits that public relations offers. However, when assessing the value of corporate activities, PR often falls a rung below more straightforward tactics like sales because it does not translate well to the bottom line.
Where an article is published, for example, who reads it and, most importantly, the way in which messages are perceived do have tangible impacts on a company’s fortunes. However, without a method for accurately collecting and analyzing such information, it’s difficult to weigh the “book value” of public relations.
Black and white measurements are preferable to most business people. The Advertising Value Equivalency offers a basic method for weighing the monetary value of coverage by comparing it against the cost of related advertising on the media outlet’s rate card.
But while AVE may be able to give a cash equivalent to exposure, it fails to recognize how the news was actually reported. Was the company portrayed in a favorable light? What was the overall tone of the article?
This kind of qualitative data is needed to gain a true understanding of PR’s bottom-line value. For example, consideration should be given to the tone of the editorial (was it positive, negative or neutral), whether the key corporate messages were communicated, the article’s placement, and the quality of the publication itself. It’s not easy to measure this information systematically, however.
Thankfully, new breeds of measurement tools have been developed that are able to capture, categorize and assess the qualitative aspects that are critical to appreciating the impact of PR. These systems objectively weigh the value of company-specific coverage, competitor articles and the industry at large by utilizing a series of algorithm-based measurements that are able to bring shape to the amorphous world of PR. They automate the process and present data in easily digestible forms, like pie charts and graphs. Predetermined criteria makes it easy to compare PR efforts from different time periods. And best of all, since they are computerized, the results are objective.
There is little question that strategic, proactive public relations can have a positive impact on a company’s bottom line. If your boss and your boss’ boss are dollars-and-cents people, being able to demonstrate the success of your work by translating its value into numbers is almost as important as the campaign itself.
