Slide 1 -- May 26, 2010

May 26, 2010

Tim Marklein

Executive VP, Measurement & Strategy

tmarklein@webershandwick.com

Twitter: @tmarklein

Integrated Measurement:

Linking PR to SalesNext Practices for Evaluation + Strategy

The Long, Winding Road

Go to the wrong airport

Wait in line 45 minutes to rebook

“We can’t get you to Aspen today”

“The last bus leaves before 6:00”

Ignore signs: “Independence Pass CLOSED”

Backtrack 2.5 hours to Aspen

Slide 2 -- May 26, 2010

Don’t Let This Happen to You…

Slide 3 -- May 26, 2010

Linking PR to Sales Requires…

Determination

Persistence

Creativity

Strategy

Methodology

Slide 4 -- May 26, 2010

Industry snapshot:

Current state of PR measurement

Everyone agrees: Measurement is important

Basic standards, tools in place for measuring media

CMOs, CFOs and CEOs are asking for more

TH

E G

OO

D

Still lots of lip service without investment

“What tool should I use?” – wrong question

Quarterly reports are shelfware, don’t drive decisionsTH

E B

AD

PR metrics aren’t translated into executive terms

Not enough definition or accountability for outcomes

“Random acts of measurement” – not enough integration

TH

E U

GLY

Source: Weber Shandwick

Measurement & Strategy practiceSlide 5 -- May 26, 2010

Watershed moment: Moving beyond AVE

• Oct’09: IPR Measurement Commission “condemns the name, concept and practice of ad value equivalencies”

• No evidence that earned media space = paid media space

• Simply measures media “cost,” doesn’t measure the “value”

• Misused as a cheap proxy for ROI – distracts from outcomes

• IPR and AMEC working on alternatives, transition plans

• Shift focus to business outcomes – awareness, understanding, attitudes, behaviors, engagement, sales, market share, etc.

• Always evaluate media quality and message, not just quantity

• Options for comparative “cost” evaluation: CPM, targeted reach, “weighted media cost,” engagement/CPE, market mix analysis

Slide 6 -- May 26, 2010

Proving PR’s value: Watch your language

Typical PR metrics

• Total clips

• Total clips in top-tier media

• Total circulation/impressions

• Share of voice

• Media sentiment

• Message pull-through

• Ad equivalency

• Cost per thousand

• Influence on stakeholder awareness

• Influence on stakeholder opinion

• Influence on employee attitudes

• Influence on corporate reputation

Key business metrics

• Contribution to sales

• Contribution to market share

• Contribution to profitability

• Influence on stock performance

• Influence on stakeholder awareness

• Influence on stakeholder opinion

• Influence on employee attitudes

• Influence on customer consid/pref

• Influence on customer satisfaction

• Influence on customer loyalty

• Influence on brand equity

Source: Adapted from GAP V report, Annenberg

School of Communication, “Fifth Annual Public Relations

Generally Accepted Practices” study, Q1’08

“It will be difficult for PR to get a larger share of the total

communications expenditure without quantitative means that

go well beyond measurement of media outputs.”

Slide 7 -- May 26, 2010

Proving PR’s value: Focus on outcomes

• Define clear, precise and measurable goals in business or marketing terms

• Borrow from outcomes inventory published by PRSA and IPR (left)

• Don’t worry whether you can prove PR’s impact – assume you can, and then work backwards to determine how

• Anecdotal evidence

• Data-based evidence

• Correlation

• Contribution

• Causation

Slide 8 -- May 26, 2010

http://comprehension.prsa.org/?p=628

Anecdotal evidence

Slide 9 -- May 26, 2010

The customer said they read a magazine

review, and that’s why they called us to

buy the product.

Data-based evidence

Slide 10 -- May 26, 2010

9.7% of the customers we surveyed last

quarter said they called us because they

read a magazine review.

Correlation

Slide 11 -- May 26, 2010

Every time our competitive media share

goes up, our sales in that region go up for

the next two months.

Contribution

Slide 12 -- May 26, 2010

Based on our marketing mix model, we

determined that PR contributed 2.7% to

our sales goal last quarter.

Causation

Slide 13 -- May 26, 2010

720 customers that read about us online,

then went to our site, bought the product

at an average sales price of $675.

Proving PR’s value: Integration is critical

• Old world, meet new world

• Integration of traditional, digital and social media

• Integrating WOM and other new influence patterns

• Silo #1, meet silo #2, silo #3, etc.

• Integration of PR with other communication disciplines

• Integration of PR with other marketing disciplines

• Integration across business units, products, geographies

• Measurement, meet strategy

• Integration of metrics, data sources, tools, dashboards

• Integration of data and insights into decision-making flow

Slide 14 -- May 26, 2010

Old world, meet new world:

New metrics, data sources, concepts

measures: Assess how content is accessed, shared, adapted, amplified across various sites and media properties

measures: Assess the volume, engagement, sentiment and reach of content shared via the web.

measures: Assess the paid and organic search rankings for company content, brands and keyword associations

measures: Assess the volume, engagement, feedback and reach of content shared via company’s web properties

measures: Analyze volume, content, sentiment of conversations about company/brands across sites, media

measures: Assess audience, reach and “touch points” of company content/conversations across sites, media

• Outcome measures: Assess how the content, conversation and community measures correlate with desired outcomes

Source: Weber Shandwick Measurement & Strategy

practice, “Inline” measurement frameworkSlide 15 -- May 26, 2010

Old world, new world:

Digital/social outcomes

Slide 16 -- May 26, 2010

Source: Altimeter Group and Web Analytics

Demystified, http://bit.ly/dldIHf

Old world, meet new world:

Analyzing WOM conversation volume, quality

Source: Weber Shandwick Measurement & Strategy analysis,

based on Keller Fay TalkTrackTM survey data Jan’08-Dec’08

AIG

Industry

Average

State Farm

All State

Prudential

Nationwide

High Volume / High QualityLow Volume / High Quality

High Volume / Low QualityLow Volume / Low Quality

Share of Conversation (%)

Qu

alit

y o

f A

dvo

ca

cy (

%)

Metric Score Industry

Share of Conversation 10% 4%

Net Favorability -62% 18%

Net Recommendation -24% 29%

Propensity to Relay 31% 50%

Slide 17 -- May 26, 2010

Old world, meet new world:

Shifting media changes criteria and scale

• What’s more valuable?

• Chicago Tribune print story

• WSJ.com online story

• Industry blog post with lots of comments

• Customer recommendation via Twitter

• Depends on objective, audience, message, tone, influence

• Not all easily measured or compared across media channels

• Key considerations

• Total impressions vs. targeted impressions – efficiency matters

• Earned CPM vs. Social CPM – very different scales, don’t equate

• Engagement, CPE and Conversion – varies by channel, outlet

• Comparative Media Cost – inconsistency of source data

Slide 18 -- May 26, 2010

Silo #1, meet silo #2, silo #3, etc.:

Cross-media evaluation shows mutual impact

Slide 19 -- May 26, 2010

MediaAnalysis

(traditional)

MediaAnalysis(social)

WebAnalytics

(site)

KeywordAnalysis(search)

WOMAnalysis(surveys)

BrandTracking(surveys)

CustomerSatisfaction(surveys)

EmployeeSatisfaction(surveys)

Lead Gen& Sales data

(CRM)

Events &DM data(CRM)

Analyst Data & Reports

(third party)

Ind. Awards& Scorecards(third party)

Source: Weber Shandwick Measurement & Strategy practice –

ARROW Measurement Suite, February 2009

Silo #1, meet silo #2, silo #3, etc.:

Cross-discipline metrics are key to insight

Slide 20 -- March 23, 2010

Measurement, meet strategy:

Flexible + repeatable + integrated metrics

Source: Weber Shandwick Measurement &

Strategy practice, “ARROW” measurement model

activities reach relevance outcomes worth

What activities

were performed

to achieve

results?

Did you reach

your audience?

How many

impressions,

web visits,

reports,

attendees, etc.

were

generated?

Were you

relevant to your

audience? Were

you credible?

Did your ideas

and messages

resonate? Did

you drive

conversation?

What business

results did you

achieve?

Awareness?

Engagement?

Reputation?

Leads? Sales?

Loyalty?

Advocacy?

What is the

estimated dollar

value of your

communication

efforts? What

was the ROI?

Communications Team Marketing Team Executive Team

Quantity/Output Quality/Outtakes Business Impact Value/Efficiency

Slide 21 -- May 26, 2010

Measurement, meet strategy:

Sample dashboard for “inline” programs

Slide 22 -- May 26, 2010

Activities47 Media, Blogger & Influencer Interviews

Reach170 Earned & Social Media Placements

Relevance64% Earned & Social Message Penetration

Outcomes14% Increase in Brand Engagement (via web data)

Worth$4.72 Earned CPM (Cost Per 1K Impressions)

94 Facebook, YouTube, Blog & Twitter Posts

3.9M Earned & Social Media Impressions

27% Earned & Social Media Share

27% Category Sales Share (source TBD)

$8.22 Social CPE (Cost Per Engagement)

Measurement, meet strategy:

Sample dashboard for global leadership

Slide 23 -- May 26, 2010

Measurement, meet strategy:

Advocacy drives sales

their competitors

Advocates can

help a company grow an

average rate of

Slide 24 -- May 26, 2010 Source: Bain & Company

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Thank You!!!

Email:

tmarklein@webershandwick.com

Blog:

www.allaboutadvocacy.com

Twitter:

twitter.com/tmarklein