How Do You Calculate the Value of PR?
Calculating the value of PR can be a complex task, so we've gathered insights from five industry professionals, including founders, CEOs, and a digital PR expert, to help you better understand how to quantify PR for your brand or agency. From combining qualitative and quantitative metrics to examining multiple PR factors, discover the top five methods these experts use to measure the impact of their PR efforts.
- Combine Qualitative and Quantitative Metrics
- Use Meltwater's Web View Formula
- Track Success Rates and Metrics
- Software Company PR Metrics
- Examine Multiple PR Factors
Combine Qualitative and Quantitative Metrics
Quantifying the value of Breachsense's PR is complicated, as its impact extends beyond monetary metrics. To calculate PR value, we measure media coverage quantity and quality, analyze sentiment from media mentions and customer feedback, track website traffic and engagement metrics, assess lead generation and conversions, and conduct surveys to evaluate brand awareness and perception.
However, it's important to note that PR's true impact is often reflected in long-term reputation, relationship building, and customer loyalty, which can be challenging to quantify. Thus, a combination of qualitative and quantitative metrics should gauge the value of PR for a brand.
Use Meltwater's Web View Formula
For quantifying web views, I use this formula from Meltwater to quantify an approximation of financial value related to web hits. PR Value = (Potential Viewership) x (.0025) x ($0.37)
It's super approximate and depends on the accuracy of your PV measurement, which depends on the accuracy of the reporting system. Sometimes there are discrepancies, so I always assume a pretty huge margin of error and use the resultant number of discussions and rarely report it as an exact figure.
This is also approximate and arbitrary, however, because it really depends on how prominently you were featured in the segment, what the context was, and what the sentiment of the piece was towards your client. It's never going to be an exact science, and we can never fully quantify PR value, but those are a few tips to get some kind of ballpark value for your board.
Track Success Rates and Metrics
Quantifying PR involves tracking metrics that show the success of a public relations campaign. This process includes measuring various aspects like the number of media placements, the publicity generated, frequency and reach of PR messages, return on investment, earned value, sentiment analysis, social media interaction, and other related metrics.
To measure the value of PR, the first step is to understand and track the rate of success for your agency. By setting achievable objectives and goals and tracking appropriate metrics, it is easy to ensure that the exposure created will be helpful in achieving your goals.
After identifying the rate of success, it will be easier for you to quantify the value of PR through different tools like tracking software, analytics dashboards, and customer surveys.
Software Company PR Metrics
Considering every industry business has almost different PR outlines, it means different businesses prioritize different metrics and approaches to calculating the value of the PR. These metrics encompass a wide range, including media impressions, earned media value (EMV), social media engagement, referral data, and share of voice, among others.
As a software company, our approach to calculating PR value primarily revolves around media impressions, earned media value, and share of voice. For us, EMV can be computed using the formula: EMV = impressions x cost per 1000 impressions x adjustable variable. The adjustable variable can be chosen based on our specific tracking needs, such as engagement or impressions.
The values obtained through these calculations can also differ from one project to another, as the context and objectives of each project may vary. So, it's crucial to adapt the measurement approach based on the specific circumstances.
Examine Multiple PR Factors
We calculate the value of our PR by taking into consideration all kinds of factors, including examining press coverage, keeping tabs on social media activity, gauging website traffic, and keeping track of brand sentiment.
We also evaluate how PR initiatives affect lead generation, customer growth, and overall business expansion. By using these metrics, we can determine the worth of our PR campaigns for our business.
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