FiftyOneZeroOne

Posts Tagged ‘AMEC

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?

In a cross between crowd-sourcing and Eurovision voting, the 100+ delegates at the European Summit on Measurement in Lisbon voted for five draft statements of needs that may end up in the Measurement Agenda 2020.

This will be the next stage of international policy development in PR measurement and evaluation, following on from the seven Barcelona Declaration of Measurement Principles agreed last year.

The statements are:

  • Create and adopt global standards for social media measurement;
  • Identify how to measure the Return on Investment of PR [a crowd source suggestion];
  • Measurement of PR campaigns and programs needs to become an intrinsic part of the PR toolkit;
  • Institute a client education program such as clients insist on measurement of outputs, outcomes and business results from PR programs;
  • Define approaches that show how corporate reputation builds/creates value.

The statements will go to conference delegates in mid-July for further comment. They were chosen from statements prepared from responses to an informal survey of delegates and other practitioners undertaken in recent weeks.  The wide range of academic research on PR measurement wasn’t taken into account.

This seems to be a less-than-robust method of data collection for policy-making when, for instance, a Delphi study amongst leading practitioners could have developed the propositions with greater certainty of future application.  Perhaps Barcelona Principle 7: “Transparency and replicability are paramount to sound measurement “, should have been kept in mind.

Recently Prof Ansgar Zerfass of Leipzig University used the terms ‘rituals of measurement’ and ‘rituals of verification’ to describe the demands for numerical proof of communication effectiveness. He was making the point that what was being measured was what could be measured in a quantitative manner, not what needed to be judged such as outcome and value-links. Often process is measured in PR, not whether communication strategies have reached the objectives.

At AMEC’s 3rd European Summit on Measurement in Lisbon, a major discussion about social media measurement has started. In a wide-ranging discussion today, the 170 delegates made their first contributions on whether there was a need for standards in social media measurement.

Three factors were identified – Engagement, Influence and Sentiment. Richard Bagnall made the point that these were often judged with widely varying criteria. The discussion that followed for an hour or more revolved about defining these terms and the types of data that could be applied to them. No decisions have been made but I wonder whether the discussion “can’t see the wood for the trees.”

Surely the main judgement is whether the communication activity, which uses social media amongst its strategies, is effective in reaching its objectives. The AMEC discussion was focused on mining data on the social media-led conversation from user traffic and the level of participation. For example, is there a difference in ‘engagement’ between clicking on an online link and looking at it(read), opening the link and commenting about it (respond) and sending it on to others (share)? Is this ‘engagement’ or ‘grazing’ information? Is it an active or passive process? And can this data on ‘engagement’ indicate future action, advocacy or behavioural change?

Rather than define these terms by a discussion amongst technical users of data, it would make long-term sense to invert the process and approach it from the user point of view. The definition of engagement could then be both more valid in terms of communication psychology and indicate outcomes rather than intermediary processes. Without this perspective, the definitions could become additional ‘rituals of measurement’.

In addition to the discussion, some interesting ‘nuggets’ of social media usage came forward:

– 30-40% of social media users offer up substantial information on their demographics and geographical position which can be used for monitoring and targeted messages;

– Social media, especially Twitter, is farmed by companies for data on customer attitudes towards them and their products rather than analysed for effective communication;

– Many large corporate in the US use Twitter as a listening tool, rather than take an active part in it;

– In addition to AMEC, there are at least seven other communication organisations looking to define methods of social media analysis, with the PR sector trailing behind promotional communications.

Recently, the combined worthiness of AMEC, CIPR, PRSA and PRCA pronounced that Advertising Value Equivalents (AVEs) are dead. First it came in the Barcelona Declaration of Measurement Principles finalised in July and then this jumble of acronyms met again in London in mid-November to reiterate their belief that AVEs must be replaced.

As readers of DummySpit and of Paul Noble’s and my book Evaluating Public Relations will know, I have criticised and opposed AVEs for a very long time. In summary, they tell us nothing and are based on a false calculation.

The Barcelona Declaration’s Principle 5 says “AVEs are Not the Value of Public Relations”. It goes on to say that AVEs “do not measure the value of public relations and do not inform future activity; they measure the cost of media space and are rejected as a concept to value public relations.”

This is the PR equivalent of the Christian baptismal promise to “reject Satan and all his works” and it was positive to see immediate statements from CIPR and PRCA supporting the move away from AVEs. The speakers at the London Measurement Conference are also well worth reviewing for their views.

What will happen now? AVEs continue to be very popular with 2009 research finding that they appear in over 40% of evaluations.

An immediate step would be to bar them as supportive evidence in industry award entries, thus denying their legitimacy. When industry leaders were asked directly to do this, there was some foot-shuffling but general assent that judging criteria should recognise more robust evaluation methods. That’s a good step forward. Already PRSA weights evaluation methods as 25% of the score in its Silver Anvil awards, with AVEs given little credit. Let’s hope other industry awards follow that lead and roll back decades of unprofessional practice.


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