How to measure ROI of PR

David Rockland of ketchum gave some insights into measuring the Return on Investment ( ROI) of PR. A rather interesting talk, it was punctuated by examples of the work that he and his colleagues have carried out in the recent past.

David pointed out that different clients mean different things when they use the term ROI. To be effective

a) ROI must be measured
b) In all cases ROI can be measured
c) Measurement doesnt cost a lot of money
d) Often the data to measure it already exists. It is a matter of looking for it in the right places

David advises that before we start measuring the ROI, we must start by asking the right questions :
1) What do we mean by ROI and what does the client mean by ROI
2) What are the business goals of the program ?
3) What is the client accountable for and to whom ?
4) What resources do they already have that will produce ROI measurement ?
5) Can our research group talk to your research group ?

Also, it helps to check with the clients if they have an Advertising Tracking study ? One can also include PR in this study if it exists...

ketchum Publicity Algorithm :
The Algorithm measures ROI by assigning metrics to various parameters of coverage

for example :

Type of publication - 0-20 points
Tone - 0-15 points
Messages - 0-30 points
Third party endorsment 0-15 points
Comparison to competition - 0-20 points



ROI on Awareness can be measured by campaign surveys.

Tools of the trade - Katie Paine

Katie shared a few tools of the trade for measuring PR effectiveness.

Signs that things are changing :
1) I spend more time on Twitter than on Email
2) Where are the gatekeepers of information ?
3) A start up company raised $ 6000 in a few hours on Twitter
4) youtube - Obama and HIllary campaign - where Hillary has more negative clips than Obama
5) IBM gets more sales leads from Podcasts than from their Ads
6) P&G is co-creating marketing with its customers - rather than rely on its marketing team
7) Wikipedia is almost as credible as Encyclopedia Britannica
8) Google has replaced short-term memory


The US Elections as a case study of measuring PR effectiveness

Look at the coverage that the elections have received on :
Youtube
Facebook
Twitter
Technorati


Metrics that show engagement in a blog:
- Conversation Index ( how many comments on each post etc..)
- Links to blog
- Forwards
- Time between posts
- Tone of discussion

Ways to measure Outtakes
- Relationship studies
- Opinon Surveys


Some tools to see how popular blogs are
- compute
- Quant cost
- Alexa

Ways to measure outcomes
- Membership
- CRM
- Google Analytics
- Web Analytics
- Donations ( in case of charity etc..)
- Applications (If called for)
- Engagement

How to write measurement Goals - David Rockland, Ketchum

David spoke at length about the need and the method of writing measuremnet goals. Said that Ketchum follows a discover-set goals- strategise- create - deliver - evaluate approach.

The basic questions to ask even before one starts to measure is - How has my Target Audience changed ? Some of the thoughts which go into planning measurement are : What portion of the T.G do you want to reach, What do you want to target, how much comprehension do you want T.G to have, and what belief change should they have ?

David also highlighted the need for clarity in goals which will help in measurement. The kinds of coverage that one can measure are : Coverage by Tier of media, coverage by tone, coverage by Issues, Share of voice in media, and finally the quality of coverage.

PR summit - post 2

Katie Paine - MD, Katie Paine and Partners

Why measure PR ?

Measurement it to find out what is working and what is not and move from what is not working to what is working. It is about optimal resources allocation.

- There is a shift in communication - from linear to a 360 approach
- B2B decisions are also going to be influenced by these conversations


Laws of 21st century PR

1) It is all about Conversations
2) Theres no market for your conversations, you will have to create it
3) It all starts with Google
4) Be who you are, those who need you and like you will come to you
5) Size doesnt matter anymore. Stop screaming, start listening
6) It is not how many Eyeballs see you, but the right ones
7) Spin is dead, long live transparency -as social media can expose all trickery and spin
8) ROI doesnt mean what you think - it could mean different things to differnet clients
9) Media will change - measure the customer, not the media
10) You become what you measure, so make sure you are measuring the right things
11) The one who has more data wins


No more excuses for not measuring. Why measuring is a must :
- It is cheap to measure, less than 200 USD per month to measure PR effectiveness
- Everyone is using PR these days
- Gutfeeling doesnt work anymore
- If you are not measuring, you are not managing your assets adequately
- If research is expensive, then what is the cost of ignorance ?


Outputs, Outtakes and Outcomes

In a PR campaign, look for the Outputs ( what is the coverage, materials produced etc..), the Outtakes ( What did people take away from this campaign, did they believe in the message) and also Outcomes ( what behaviour did it change).


6 Steps to planning your measurement of PR campaigns

1. Define measurement Goals
2. Understand audiences and also what motivates them
3. Define KPI's
4. Determine what you are benchmarking against
5. Pick a tool and undertake research
6. Analyse results, gain insights and take action, measure again

From Cave men to Katie paine !

From Cave men to Katie paine !
- Measuring PR effectiveness

Excuse me for borrowing this phrase from David Rockland, of Ketchum – but this more or less sums up the spirit of the PR Measurement summit, which was inaugurated at the Habtoor Grand Resort today. For those who do not know, Katie Paine is a “Guru” of PR measurement based in the USA. ( Check out her blog http://kdpaine.blogs.com/ for more). The phrase of the title means how PR measurement has evolved from a very basic ( AVE Measure) to highly evolved statistical methods and also value based measuring systems.
What I will attempt to do is give a few key highlights of what each of the speakers spoke – and hopefully you, the reader will be able to glean the information that is relevant to you.


Inauguration speech – Mazen Hahawi, President, Media Watch.
PR measurement is a moral obligation in many ways and it also has operational obligations. While the global role of companies in the Arab World is growing, it is also important that their role is measured and documented using PR. The interconnectivity that social networks and Internet offer is chaning the Arab world in more ways than one.

- The Ethical foundation for PR comes in because of accountability. It is all about managing the company’s assets as PR professionals. Also, measurement offers us a transparent evaluation of PR’s performance
- PR Measurement also solves the issue of staff retention. Measurement will help PR get the attention it deserves. Measurement also produces specialization. Measurement also brings in focus to the communications process.
- Some examples to showcase how the Arab world is moving into the centre stage of world business
o Petra Seven wonders campaign - http://www.new7wonders.com/classic/en/about_us/
o Aramco buys GE plastics - http://www.portfolio.com/news-markets/top-5/2007/05/18/Sabic-In-Talks-to-Buy-GE-Plastics
o DP world purchases P&O
o ADIA invests in Citibank - http://www.ameinfo.com/139989.html

A sense of accountability will not squander the limited resources available, and also ensure success.
Why is PR Important ?
- Interactivity is gaining dominance
- 45 million Arabs are online
- Freedom of press is becoming a reality in the region
- Reputations and relationships are being built in record time
- If you are a Danish company, you do not want to be in the Arab world now !
Some trends in the region – in PR Measurement
- More people are measuring than before
o Media Watch is used by 400 % more clients
o Government usage of PR measurement has gone up

- Ad values are in retreat
- Spotlight on bloggers
- Field studies approach is going up too

What is the future of PR Measurement ?
- Will become mandatory in pitches
- Creation of a global measurement commission
- Increased use of field studies
- Death of AVE
- Increase in measurement spending
- Creating of new PR opportunities through measurement
- Shift from retainer based billing to measurement linked planning and performance

Saudi Arabia the most "trend setting" country in the Middle East

Considering the way the youth across the middle east are behaving, it comes as a surprise that Saudi Arabia could well be the "trend setter" in the region. This applies not only to lifestyle but also social trends. In an insightful study of youth across the Middle East, carried out by global research firm TNS Global, titled "Shabab Tek", the emerging trends were brought out clearly and the pointers are clearly towards Saudi becoming a more liberal society and one that is most ready to embrace change.

consider the fact that probably the only graffiti park is in Saudi (Jeddah) and not in UAE ( considered the most liberal), the youth are willing to experiment and flirt with different cultures and challenge assumptions of their own. The study also found an inverse correlation to the amount of conservativeness imposed versus the willingness to preserve their culture. The more the external pressure to conform, the more the rebelliousness, as found in Saudi. While the UAE youth are free to do what they want ( well almost ! ), they tend to have more conservative views and are more inclined to preserve their own cultural heritage.

Shabab Tek followed 80 "future-shapers", youth who had high social currency and those who followed trends the most for more than four months and recorded very many details fo their lives through ethnographic research. This was compiled and analysed by a team which is well versed in the middle eastern dynamics. The team has identified trends - both social and cultural which will shape the future of the region. One of them is the emergence of a moderate Arab face. Also, women are demanding greater freedom from their families ( Emancipation of Eve), Greater need for self-expression among youth - as observed through blogs, websites and other means of communication ( mobile phones included).

The study should be of interest not only to marketing professionals, but also to anyone who is interested in following how societies shape and move forwards. For sure, this study opened my eyes about Saudi arabia and opened my eyes to a new way of looking at the Arab world. What one is seeing is the birth of a new complex Arab identity and one which will alter the course of the future in many ways.