The Public Relations industry has long grappled with its metrics. It can be simpler to focus on metrics that shimmer but don’t truly illuminate success. Enter the Advertising Value Equivalency (AVE), or Equivalent Advertising Value (EAV), a metric that attempts to assign a financial value to media coverage.
On the surface, AVEs / EAVs seem like a godsend for quantifying PR’s impact. But delve deeper, and you’ll find a metric riddled with flaws and prone to manipulation. The metric has been heavily criticised within the PR industry, with the late PRCA director general Francis Ingham referring to AVEs as an “entrenched vanity project” and not a proper measurement, while the CIPR banned the use of AVEs by its members.
The pressure and expectations of clients play a significant role in why PR agencies might still cling to AVEs.
Here are some key reasons why clients might request AVE-based reporting:
Misguided understanding of PR value: Not all clients grasp the multifaceted nature of PR and its impact beyond mere media coverage. They might mistakenly equate high AVEs with success, attributing a campaign’s effectiveness solely to the dollar value assigned to placements.
Traditional mindset: Some companies, particularly those stuck in traditional marketing models, prioritise tangible metrics like AVEs for their ease of comparison and perceived objectivity. They might be unfamiliar with, or hesitant to adopt, more sophisticated outcome-driven measurement methodologies.
Internal pressure: Clients themselves might face internal pressure from stakeholders to demonstrate the ROI of their PR investment. AVEs, despite their flaws, offer a seemingly quantifiable metric to satisfy these demands.
Competitive comparison: In competitive industries, companies might use AVEs to benchmark their PR efforts against peers. This creates a race to the bottom, prioritising high AVEs through tactics like chasing irrelevant placements, rather than focusing on impactful communication strategies.
Legacy systems and reporting: Some agencies and clients might be reliant on legacy reporting systems and tools that heavily feature AVEs. Transitioning to a more comprehensive and nuanced measurement approach might require significant technical and procedural changes, creating inertia towards relying on familiar, albeit flawed, metrics.
So, how can we help clients move beyond these ‘vanity metrics’ and embrace a more meaningful approach to measuring PR success?
Here are some key steps:
Open and Transparent Communication:
Start by having an honest conversation with your clients. Explain the limitations of AVEs, highlighting their subjectivity, potential for manipulation, and disconnect from actual business outcomes. Use clear and concise language, avoiding jargon, and provide real-world examples to illustrate your points.
Focus on Outcomes, not just Outputs:
Shift the focus from media coverage and its assigned dollar value to measurable business outcomes. Open the conversation about website traffic, leads generated, brand sentiment changes, and sales conversions. Show clients how your PR efforts directly contribute to their bottom line.
Embrace Data-Driven Insights:
Invest in and utilise sophisticated analytics tools. Track campaign performance across various channels, gathering data on audience engagement, sentiment, and conversions. Present your findings in clear and visually appealing dashboards, demonstrating the real impact of your work.
Offer Alternative Measurement Frameworks:
Develop comprehensive reporting models that go beyond AVEs. Incorporate data on engagement, sentiment, conversions, and other relevant metrics. Tailor these reports to each client’s specific goals and objectives, demonstrating a customized approach to measurement.
Showcase Success Stories:
Use case studies and client testimonials to showcase how a data-driven approach to PR has delivered tangible results. Share quantifiable improvements in website traffic, leads generated, brand perception, and ultimately, business growth.
Industry-Wide Collaboration:
By working together, the industry can move beyond AVEs and establish a more credible and impactful approach to demonstrating the value of PR.
Conclusion
By moving beyond ‘vanity metrics’ and embracing this more holistic approach, PR agencies can build stronger relationships with clients, demonstrate the true value of their work, and contribute to measurable business success.
Remember, the goal is to move away from surface-level numbers and focus on the deeper impact of PR. By measuring what truly matters and communicating effectively, we can ensure that PR not only shines, but also illuminates the path to achieving business goals.
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