Practical Approaches to Generating and Demonstrating Communication ROI

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Practical Approaches to Generating and
Demonstrating Communication ROI

• Michael Renderman
• VP Business Development, Cision

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Issues, Trends, Challenges and Voice
Which one of the following do you consider to be
the professions greatest, single challenge?
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CEO Perceptions of PR
How much do you agree or disagree that the top
management/CEO at your organization believes that
PR contributes to moving the organization forward
in terms of each of the following?
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Has your organization experienced an increase or
decrease in PR spending this year (2006)?
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The Climate Shift

• The Marketing Climate shift-last 4 years
• Large Marketers reducing their TV Ad budgets
• Network Cable TV no longer draw a sufficient
  ROI
• April 2006, Forrester Research and The
  Association of National Advertisers
• Surveyed 133 National Marketers
• 78 agreed TV Ads are less effective over last
  2 years
• In 2006, 60 will spend less on TV Ads as DVR
  penetration grows
• In 2004, 78 said they would spend less
• In 2002, 76 said they would spend less
• NOT Newspaper Advertising
• Newspaper readership continues to shrink
• Print Circ dropped 50 over the last 20 years
• Circ dropped 2 in a six month period in 2005
• Source Advertisers Face TV Reality, Forrester,
  14 April 2006
• Source Humpty Dumpty Media, Brazell, Jan 2006

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The Climate Shift

• Where are Marketers reallocating that budget?
• Metric Driven Media
• Online Ads, Video On Demand, Product Placement,
  Cell Phones
• Point of Purchase, Direct Marketing, Event
  Marketing
• Alternate TV Experiments
• Tivo CBS Deal/preview 4 new CBS programs on
  your Tivo
• BUDTV.com (advertiser starts their own
  channel)
• The Office episode most downloaded video on
  iTunes.com
• Source In a TIVO World Television Turns
  Marketing Efforts to New Media, New York Times,
  5 Sept 2006
• Source Budweiser to launch BUD TV on the
  web, CNN, 6 Sept 2006
• Source, Humpty Dumpty Media Rob Brazell,
  TheIdeaEconomy.com, Jan 2006

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The Climate Shift

• Where are Marketers reallocating that budget?
• Public Relations.sort of.
• In 2005 PR Budgets grew 4 on average across all
  company types
• Increase at Public Corps was 23 higher than
  Private Cos.
• BUT, experts argue the increase evaporates due to
  Cost of Business Increase
• Source 4th Annual P.R Generally Accepted
  Practices Study, Annenberg School of Journalism,
  USC 2006

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The Fears

• Why is PR NOT getting a Real Budget Lift?
• Theory We Fear Measurement
• Theory We are not a Metric Driven Discipline

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The Fears

• Theory We are not a Metric Driven Discipline
• Problem Senior management, now more than ever
  before, is examining all Marketing Disciplines
  with Metric Driven decision-making.

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The Fears

• Why bring Measurement on myself?
• If we learn how to measure in a metric driven
  language that resonates with Sr. Management, we
  can begin to answer more compelling questions
• Can I show PR supports Company Goals/Objectives?
• Will that knowledge help future strategic
  planning?
• How can I make a case for more PR budget?
• How can I elevate the role of PR in my
  organization?
• Isnt a measured shortfall a path to improvement?

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The First Steps

• Realize these Truths
• News Influences the Publics attitude about my
  company/client
• The Publics attitude about my company, forms its
  Reputation
• My Companys Reputation influences My Companys
  Value
• Good Reputations.
• attract the top employees
• attract brand loyalty and customer retention
• help companies weather News Storms
• support Stock Price/Access to Capital
• If I can measure how my companys reputation is
  portrayed in the news, I can report how PR
  contributes value to metric-driven Senior
  Executives.

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The First Step 10 Questions to Answer

• What are your organizations objectives? Vision?
• What are your departments objectives?
• What are your key messages?
• Who is (are) your target audience(s)?
• Who influences that audience?
• Which media do they read, watch or listen to?
• What other programs are currently underway?
• Who are your internal clients/audiences?
• How will you use the research findings?
• What other departments will be affected?

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Spectrum of Measurement Methods

• Basic
• Volume of Coverage
• Coverage by Media Type
• Coverage by Region
• Total Impressions (Reach)
• Ad Value Equivalency
• Advanced
• Media Content Analysis (demonstrates quality and
  value)
• Story attributes such as placement, tone, images,
  headlines, spokespeople, dominance in the story,
  etc
• Key Message penetration
• Key Subject penetration
• Key Media penetration
• Surveys (show quantitative value and qualitative
  strategy)
• Complex
• Marketing Mix Models (draws Statistical
  Correlation PR to Sales)

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Implementation Media Measurement
Gather News Content Print Broadcast
Web-based
Define Measures/Benchmark Analysis
Ongoing Media Content Analysis
Gain a more actionable perspective on outcomes in
order to

• Manage for continual improvement
• Support strategic decision making
• Maximize PR - ROI

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Implementation Media Performance

• Frequency
• Total Impressions (Reach)
• Presence of Key Messages
• Spokespeople
• Tone
• Impact of Story
• Front page / Lead story
• Extent of mention
• Visuals

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Tracking Media Performance- In-House
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Outsourcing

• Solves issues such as
• Lack of time
• Lack of expertise
• Lack of content
• Speed of content
• The Cons
• Requires some budget dollars put aside
• Understanding of the experts

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Selling PR Research Internally

• PR is as much a science as it is an art
• Changes are happening with you or without you
• Impress on Them or Imposed on You

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Selling PR Research Internally

• Barrier
• Lack of senior management interest or support
• Solution
• Track the Goals of Company in News Messages
• Pitch the Goals of Company in News Releases
• Monitor and Report those News hits

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Selling PR Research Internally

• Barrier
• Lack of research expertise within the PR staff.
• Solution
• Start with the Do-It-Yourself model
• Ask for outside help
• Set the pace in emphasizing the need for good
  research and others will get the message.

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Selling PR Research Internally

• Barrier
• The commonly held myth that PR cant be measured.
• Solution
• CEOs and senior executives know that everything
  can be measured PR is no different. Results
  arent always revolutionary, but they can form
  the basis for continual improvement. Again, take
  the lead.

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Actionable Next Steps

• Address those Fears with Knowledge
• Answer those Important 10 Questions
• Get More Good Free Information
• Try a Lunch-and-Learn
• Ask for an overview presentation
• Speed Dating with Vendors
• Free Whitepapers and future Webinars are
  available at www.us.cision.com

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QUESTIONS ANSWERS

• Michael Renderman
• Michael.renderman_at_cision.com
• 312-986-3616
• An Observer AB Company