From time to time, we’re asked, “How do we know we’re getting value for money from our public relations program?”. Success is easily claimed but not always easily proven –especially for a campaign where there’s no budget for research-driven valuation. However, there are reliable indicators that show a program is working.

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Of course, an accurate assessment always depends on having a properly constructed strategy with defined aims and messages. The terms “outputs” and “outcomes” have been around for a while in evaluation and are still useful in looking at results.

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Outputs are fully completed activities in the program, like the blogs posted, media releases distributed, media briefings organised, interviews arranged, and the like.

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‍Outcomes are the results and impacts in areas such as opinion, understanding, attitude, or knowledge, and increased reputation and profile resulting from the outputs.

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Cut-through

A critical indicator is cut-through with messages. For instance, when clients say they have company descriptions repeated back to them at business meetings, we know the program is working.

Someone saying, “Jones Asset Management, isn’t that the fund manager that has performed well with alternative investments?” is an example of cut-through in understanding. Essentially, any sales pitch by the company is going to be easier as it doesn’t start with the question, “Who is Jones Asset Management?”.

Improved understanding

Another indicator is an improved understanding of the business. An example is when a company is well-known in one area but less recognised in others.  As with cut-through, once the market understands the full breadth of expertise of a company’s offering, it’s a sign that the PR program is working.

Business enquiries

While public relations itself isn’t strictly a sales tool, clients sometimes tell us of increased business enquiries following media coverage. More often, however, it is the case that effective public relations activity creates an environment where it’s easier for the sales team to convert leads.

Advertising value equivalent

Even though they are over-simplistic and don’t take everything into account, costing editorial coverage and other content using advertising rates (and sometimes multiples)can be a useful indicator. There are several formulas that include factors like position in media, positive content, and audience reached.

Certainly, boards and C-suite executives like to see some sort of dollar value on coverage using ad valorem equivalents (AVEs) as one indicator. However, we would always caveat it by saying that audiences absorb advertising and editorial in different ways, so it is important to compare apples with apples.

So while some clients request advertising value equivalent, it is not a measure we are comfortable with, as it doesn’t tell the full story.

Measuring outputs

Having clauses in agreements such as “the consultancy will distribute one media release a month ”are more restrictive than productive. Instead, clients should look for agreed aims at the outset and expect regular reports on what has been achieved, including outputs like media releases distributed, interviews arranged, coverage gained, blogs published, and increases in social media followers. But look out for consultancies that spend more time in justifying themselves than in actually achieving results.

Value is outcomes

When you get down to it, the measure of PR success is simply knowing when it is working.  It might be intangible, and it’s difficult to put into a report for the board, but it’s usually pretty clear whether a PR strategy is effective.