FiftyOneZeroOne

Archive for the ‘ROI’ Category

Getting ready for a blast of papers and industry promotion on PR ROI: The vexed issue of Return on Investment got special focus on the final day of the European Summit on Measurement in Lisbon. I was the academic member of a panel of six that chewed it over.

Although there is a general view amongst practitioners that ROI must have a place in PR, mainly because some clients want to express all organisational activities as financial returns, there is debate as to whether ROI should only be expressed in a financial manner (mainly US) or whether it is applied more loosely to include intangibles (Europe).

In the US, the Council for Public Relations Firms (CPRF) is moving rapidly to offer a definition of ROI with assistance from AMEC. The aim of these organisations is that the ROI formula is adopted world-wide so that there is common language – and clients can see that PR does offer a return on investment. It may be ready by the end of this year.

I still have doubts as to whether ROI, other than in a strictly financial format, can be re-purposed into a more general expression of value creation or contribution to organisational efficiency.  Business managers understand what ROI is, so why would they accept a mixed-concept PR ROI. What’s your view?

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Tom Watson

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