Measure What Matters

A Real-World Approach to
Public Relations Evaluation
Alice H. Brink, ABC, APR
Vollmer Public Relations
 Before We Begin…

 A little pre-test
 What We Will Cover
 PR Measurement in the real world: ideal and reality
 The ROI question: how do we demonstrate value?
 What are we trying to accomplish and how will we
know when we get there?
 Practical measurement tools
 New twists on ad value – pro or con?
 Examples and case histories
Measurement in the
Real World
 The ideal: Measure in financial terms the
impact of public relations efforts on a
company’s reputation, bottom-line and ability
to conduct business
 The reality: Clip counting and ad value
equivalency
 The challenge: Move from current reality
toward ideal
Measurement is a Reality
 In a recent survey, PR pros gave reasons to
measure:
 Improve communications planning – 89%
 Establish use of key messages – 86%
 Prove value of PR – 81%
 Benchmark vs. competition – 57%
Source: “Reality Check 2001”
Strategic Measurement
Is Rare
 Measurements include:
 Clips/circulation/impressions
 Ad value equivalency
 “Publicity value”
 Content analysis/evaluation of coverage
 Surveys of audience
 Hard data (esp. for IR, events)
 Proprietary measurement processes
Other Findings
 86% of PR pros surveyed are held
accountable for demonstrating results
 70% have less than 10% of budget allocated
for M&E
 26% say budgets have increased in the last 3
years
Source: “Reality Check 2001”
That Pesky ROI Thing

 How do we show “return” on the dollars

spent on public relations?
The Crux: Defining “return”
 Define the value we are trying to
demonstrate
 Did we move the needle?
 Direct/outcome measures
 Did we accomplish the task?
 Indirect/output measures
 Did we gain new knowledge?
 Feedback/planning measures
 A Thought about Value:

“To have meaning, communication

measurement must assume the value of
communication and focus on effectiveness
with respect to the organization’s
strategic direction.”
 Thomas J. Lee in Journal of Employee Communication
Management, 1998
 ROI: The Simple Answer

We demonstrate ROI by linking our

measurements to the strategic objectives of the
business

Next question:
How?
So What Are We Trying To
Accomplish…
…AND HOW WILL WE KNOW
IF WE GET THERE?
What Do You Want to
Accomplish?
 Set objectives up front
 Identify the audience
 Ask the question:
What do you want the audience to do as a
result of your communications?
 Gain consensus on objectives!
 Agree on measurement process
Clear objectives are:
 Audience-focused
 Specific
 Measurable
 Achievable
 Concrete

Interim/indirect objectives should be identified as

such
Six Basic Public Relations
Objectives
 Reputation/awareness
 Sales/attendance/web traffic
 Sales support (recall awareness)
 Recruiting/retention
 Investment perception
 Persuasion/issues management
Examples
 Hospital: “Build awareness of five main service lines
and physicians among our target market.”
 Chemical company: “Position company as a leader
in its market. Target audiences should identify
company as a provider of value-added services to
their end-use markets.”
 Plastics producer: “Use public relations to support
increased sales and market share.”
Two Ways to Measure
 Direct measurement:
 Outcome-based: measure the results

 Indirect measurement:
 Output-based: measure the media
Direct Measurement Methods
 Perception management studies – the
ultimate
 stakeholder (audience) research
 evaluates change in stakeholder viewpoints
 Ideally before-and-after studies
 Can be done on small or large scale
Getting the data
 Use data that exists elsewhere
 Sales data
 Web traffic/event attendance
 Incoming calls
 Stock activity/PE multiple
 Votes/legislation/public opinion polls
Getting the Data
 Develop your own data
 Survey audience
 Conduct focus groups
 Track sales leads
 Gather sales force feedback
 Ask, “How did you hear about us?”

 Start with benchmark data

Practical Ways to Measure
 Use a “control” test (by project or media)
 Screen incoming calls
 Separate toll-free number or web URL
 Phone script
 Survey sales force
 Track spikes in calls, sales, web visits vs.
media coverage
Indirect Measurement:
Yes, It Has Validity
 As interim benchmarks to support outcome-
based measures
 Answers: Did we accomplish the task?
 Did we get the word out?
 Did we work effectively with media?
 Did we produce materials on time?
 Did we work within budget?
Indirect Measurement Tools
 Basic performance evaluation:
 Budget met?
 High quality concepts/materials?
 Timeliness?
 No opportunities missed?
 Effective media relationships?
 Effective client/management relationships?
 These measures should correlate with
outcome. If not, why not?
Media measures do count
 Research shows that editorial coverage
generally correlates with public opinion
 News does impact perceptions
 2001 “shark attack” scare
Media Measures: Quantity
 Column inches
 Audience impressions
 Standardized numbers essential
 Focus on target demographics

Quantitative measure with little qualitative

information
 Media Measures: Quality
 Media analysis
 Positive or negative tone
 Placement/dominance
 Tiered media
 Use of key messages
 Message trend analysis: client vs. competitors
 Informal/formal feedback from journalists
EXAMPLE: Hospital
 Objective: Build awareness of five main service
lines and physicians among our target market.

 Measure by:
 Monitor coverage and share of discussion
 Measure appearance of key messages
 Have physicians track feedback for 30 days after
interviews appear
 EXAMPLE: Plastics Producer
 Objective: Use public relations to support
increased sales and market share

 Measure by:
 Increased media mentions of toll-free number or
website
 Increase in incoming calls and site visits
 Sales force feedback
 Sales data
Example: Chemical Co.
 Objective: Position company as a leader in its
market. Target audiences should identify company
as a provider of value-added services to their end-
use markets.
 Measure by:
 “Leadership positioning will be reinforced by increasing
appearance of key messages, including service
description, customer or case history description, or
positive qualitative evaluation of company or technology.”
 Customer survey
Sample
Tracking Report Graph
Qualitative Media Analysis

0 10 20 30 40 50

Pos tive coverage 12

26

Neutral coverage 29
42
0
Negative coverage 1
Cus tom er m ention 9
7
Product/service des cription 22
34

Corporate s trategy 8
25

ALAC photo 5
7

ALAC quote or interview 10

21
800 # m ention 1
1
Webs ite m ention 4
4 Q1 2001
Q2 2001
 EXAMPLE: Frozen Food Brand
 Objectives: Build sales in key markets; build
leadership positioning

 Measure by: Sales increase; media visibility

 Results to date: Sales increases of more than

95% in key markets; 6 million impressions
About Ad Value Equivalency
 Problems:
 Not a “value” but a “cost”

 Doesn’t account for message content or strength

 Some media have no ad rates (or impressions figures)

 Multipliers for “PR value” are inconsistent

 If you measure PR in terms of ads, how do you

measure ads?
Where Ad Values May Add Value:
Measuring Share of Discussion
 Share of Discussion tracks visibility within topic –
compares vs. competitors
 New research shows SoD correlates with sales data in
historic comparisons
 In research, SoD correlations were made based on
three readily available data metrics:
 Story counts
 Impressions
 Ad Value
 Greatest correlation was with ad value
EXAMPLE: Menopause Therapy

 In 1Q 1996, virtually all available menopause treatment information

(95%) discussed traditional hormone replacement therapy (HRT).

 By 2Q 1999 HRT’s “Share of Discussion” had dropped to 58%.

 Today a woman is as likely to hear about alternatives as traditional

HRT.
 SoD Correlates with New Rx
“Scripts per menopausal woman” shows a clear decline beginning in
1997, just as “share of discussion” declines.
TRx per Menopausal Woman (females, age 51)
Vs.
HRT Articles as Percent of Total Articles
TRx per Population HRT Percent of Total Visibility

4.5 120%

4.3
100%
4.1

3.9
80%
3.7

3.5 60%

3.3
40%
3.1

2.9
20%
2.7

2.5 0%
 EXAMPLE: OTC Vitamin Sales
Problem:
• OTC vitamin category is declining.
Sales Versus Discussion
Observation: Total Multivitamins / Calcium / Herbals

• Level of discussion in category

Sales Discussion
$2,020,000 54,000

(Visibility) is down significantly. $2,000,000

53,000

Sales correlates with level of 52,000

51,000

discussion. $1,980,000
50,000

# o f A rti c l e s
S a le s
Conclusion:
$1,960,000 49,000

48,000

• Level of discussion is clearly a

$1,940,000
47,000

major sales driver in this category.

46,000
$1,920,000
45,000

Implication: $1,900,000
1999 2000 2001
44,000

• Develop strategies to increase

category and brand discussion.
If You Use Ad Value…
 Use it in planning to evaluate and rank target
media
 Use it to weight media quantity vs.
competitors (share of discussion)
 DO NOT present it as an absolute value
 DO NOT multiply it by a “credibility” or
“publicity” value
Vollmer Measurement Model
 Proprietary process
 Objective-setting worksheet
 FOCUSES ATTENTION!

 Custom periodic report

 Track results against objectives
 Direct measures
 Indirect measures
What Makes the Process Work?
 Agreement on objectives
 Client/management: willingness to invest in
measurement
 PR team: willingness to commit to achieving
results
 Follow-through
 The real-world solution
 Ultimately, measure against business
outcomes
 In reality, output measurement is part of
the process
 Real issue is when PR measurement is
missing
 Questions?
Contact info:

Alice H. Brink, ABC, APR

Vollmer Public Relations
alice@vollmerpr.com
713-546-2230