Measurement 101: Measurement 101: Measuring Public Measuring Public Relations Impact on Relations Impact on ROI by its ROE ROI by its ROE Don W. Stacks, Ph.D. School of Communication University of Miami Coral Gables, FL 33124 The Institute for Public Relations Commission on PR Measurement & Evaluation [email protected]
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Measurement 101 Measuring Public Relations Roe Roi Ms 2008
Measurement 101:Measuring Public Relations Impact on ROI by its ROE
Don W. Stacks, Ph.D. School of Communication University of Miami Coral Gables, FL 33124 The Institute for Public Relations Commission on PR Measurement & Evaluation [email protected]
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Measurement 101:Measurement 101:Measuring Public Relations Measuring Public Relations Impact on ROI by its ROEImpact on ROI by its ROE
Don W. Stacks, Ph.D.School of Communication
University of MiamiCoral Gables, FL 33124
The Institute for Public RelationsCommission on PR Measurement & Evaluation
David Michaelson and Sandra Macleod, The Application of “Best Practices” in Public Relations Measurement and Evaluation Systems, Public Relations Journal, 1 (Fall 2007), www.prsa.org/prjournal/fall07.html.
All public relations actions, whether they be adding a client or preparing for a campaign begin with an analysis of secondary and historical data about the client and its publics.
John W. HillFounder, Hill & Knowlton
1. Benchmark1. Benchmark
BenchmarkBenchmark Data to be evaluated against Available from secondary sources Available from primary sources
Focus Groups Surveys Interviews Participant-Observation
2. ROI?2. ROI? Return on Investment? It’s not your traditional ROI
Financial indicators Sales, Overall Gross, Top Line Growth, etc.
8. Impact of new media8. Impact of new media Traditional reputational evaluation &
measurement was almost static – things didn’t change fast
New media has addressed four new elements in evaluation Speed Real time measurement The “rat’s tail” effect The “Power of 1”
New media New media
Speed: There is less reliance on editorial
review and more on being the first to report
Producing much more error in what is being communicated, often with disastrous effects
Real time measurement: Requires attention to social media on a
continuous basis Outcomes often result in “Dashboard
Analysis” and reliance on numbers without understanding what they mean
New media New media
“Rat’s tail”: There are thousands of people who
consider themselves “educated” with opinions & they use the social media & are often picked up via web-search engines
The good news is that only a few are really influential at any given point in time & they can be identified through systematic social media space & their influence evaluated through their followers
The bad news is that influentials often change over time, often due to what they say not the logic of their analyses
New media New media “Power of 1”:
It only takes one negative or bad report to shift attention from positive to negative
Influencers are now found in both internal & external publics
Monitoring takes on new meaning/legal consequences
Hypothetical social media evaluation example
Client or product
Blogger/Op. Ldr.
Audience
One-way
Two-way asymm.
Two-way symm.
0 +
-
0
- +.2
.1.6
+/0/1 = Msg. position. x= % msg. volume
+ .4
.1.05
.85A
B
C
Physicians
DrugCompany
Interpretation: A is neutral, no relationship, and little impact; B is negative, one-way relationship with minimal negative impact; C is positive , engaged in two-way symm relationship with major impact. On audience (physicians) producing mutual engagement with client. Recommendation: Focus on C while watching A and B
9. Conclusion(s)9. Conclusion(s)1. Without a benchmark, we have no way to
evaluate2. Evaluation is process-oriented: knowledge-
based and behaviorally-driven3. We can evaluate public relations, but what
we evaluate toward is not exactly what some call “ROI”; ROE must be constantly evaluated to better predict ROI
4. We can collect, analyze, evaluation and recommend courses of action
Measurement 101:Measurement 101:Measuring Public Relations Measuring Public Relations Impact on ROI by its ROEImpact on ROI by its ROE
Don W. Stacks, Ph.D.School of Communication
University of MiamiCoral Gables, FL 33124
The Institute for Public RelationsCommission on PR Measurement & Evaluation