PRIA – Measurement and Evaluation in PRApril 14 2014

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Agenda for this Morning

• AMEC International Business Insights Study– Summary of Findings– Current Industry Trends– The Clients’ Perspective– The Future

• AMEC Measurement Week

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• This report covers the findings of the 2013 AMEC International Business Insights Survey

• This is an online survey of two key audiences which offers unique insight into the research and insights industry at this point in time

– 66 CEO/MD level respondents from AMEC member companies, representing 83% of all member companies eligible to take part

• AMEC member companies were approached directly by the AMEC team

– 65 clients of these AMEC companies• Each participating AMEC member was asked to nominate up to six

clients and provide them with a link to the client survey• Assuming all participating members did this, the client response rate

is a very respectable 16%

• Research was carried out between 25th July and 23rd September 2013

Background

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Summary of findings

• Members say client budgets are more likely to be increasing than decreasing.

• The trend towards simplicity in measurement models is touching most AMEC members

– This is reflected in high client demand for “keep it simple” styles of reporting

• Some members are continuing to see a growth in ad hoc work, but demand for continuous work is also buoyant

– The value ratio of continuous to ad hoc work remains at its historical level of 4:1

• Demand for social media and online news monitoring is increasing across the board

• Consequently, seven in ten AMEC members now believe social media measurement is critical or very important to their business success

• Client demand is highest for measurement of Twitter and Facebook. Industry blogs and forums are also important

Industry trends

Social media

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Summary of findings

• Two-thirds of communications measurement efforts still focus on outputs, according to clients

– However, the proportion of efforts focusing on outcomes and business results has increased somewhat in the past three years

• Key objectives for clients from measurement work include measuring both quantity and quality and transparency/ ability to be replicated

– Social media measurement is the third ranked priority, although AMEC members appear to under-estimate how important this is to clients

• Clients report that the industry performs well on most of the key criteria for successful measurement work:

– Top management reporting, simplicity, brand/reputation tracking and delivering insights

• Areas where industry performance is felt to be lagging behind expectation

– Including social media measurement, including radio and providing online dashboards

Client perspectives

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Summary of findings

• Growth is expected to be strongest in four business categories:– Consultative/ “deeper dive” services– Integration with other marketing analytics– New/ automated forms of measurement– Digital/ social media analysis

• Client budgets are growing across all areas of measurement– Growth is strongest in the budget allocated to social media

listening and measurement

• Survey participants report the highest ever revenue for the industry A$103m

– The year-on-year growth rate stands at 12%, and growth is strong in all business size segments

• At the same time, the AMEC membership profile is evolving:– More clients are reached through the PR consultancy

channel than ever before

The future

Section 1:CURRENT INDUSTRY TRENDS

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Trends in client needs

Members Q1 Please indicate how much you agree or disagree with each of these statements. (Base: all members)

In my business, the volume of ad hoc projects is growing and taking the place of what used to be yearly assignments

Clients at the AMEC Summit in Madrid spoke of a need for simplicity in measurement models, and I have experienced this same demand from my own clients

I am seeing a trend by clients to put increasing emphasis on insights and less emphasis on monitoring

38%

8%

27%

20%

21%

20%

42%

71%

51%

Disagree strongly/slightly Neutral Agree strongly/slightly

SUMMARY• Half of all members are seeing a shift towards more emphasis on insights, with less emphasis on monitoring• A big majority are seeing increasing demand for simplicity in measurement models• Opinion is split over the extent to which ad hoc assignments are replacing continuous work

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Trends in client expectations

Members Q1 Please indicate how much you agree or disagree with each of these statements. (Base: all members)

Clients are asking for more insights reporting because they increasingly believe it is important to demonstrate the business benefits of their work

In my business, we are seeing clients from a wider range of functions than in the past, for example clients from corporate communications as well as marketing functions

Clients are reporting increased interest from their senior management/C-suite level in the use of research and measurement to track the business benefits of communications activity

9%

8%

10%

8%

21%

16%

83%

71%

74%

Disagree strongly/slightly Neutral Agree strongly/slightly

SUMMARY• There is a strong trend towards increased interest at top management levels in research and measurement which

tracks the business benefits of communications• Clients are now likely to be from a broader set of functions, including corporate communications as well as marketing• There is increasing demand for insights reporting to demonstrate the business benefits of communications

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How demand for monitoring is changing

Members Q8b For each of the media channels please indicate how client demand for monitoring has changed in the past 12 months (Base: all members)

Radio

Magazines

Newspapers

TV

Online news

Social media

18%

7%

5%

11%

3%

2%

18%

11%

12%

17%

55%

71%

71%

56%

29%

8%

9%

11%

12%

17%

68%

91%

Don't measure this channel Demand decreasing Unchanged Demand increasing

SUMMARY• Demand for social media monitoring is increasing for almost all AMEC members – 91% have seen demand growth

during the past 12 months• In addition, 68% report growing demand for online news monitoring• Demand for monitoring of other media channels is stable, except radio, where more members report a decrease than

an increase

Section 2:CLIENT PERSPECTIVES

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Familiarity with Barcelona Principles

Clients Q3 In general, how familiar are you with the AMEC Barcelona Principles for measurement? (Base: all clients)Members Q3 In general, how familiar are your clients with the AMEC Barcelona Principles for measurement? . (Base: all members)

Members' expectations of clients

Clients

27%

65%

53%

17%

13%

18%

Never heard of them Heard of/know a little Very/fairly familiar

SUMMARY• Almost two in every three clients say they have never heard of the Barcelona Principles for measurement• Meanwhile 17% of clients know a little and 18% say they are relatively familiar with the Principles• AMEC members expected 66% of clients to know about the Barcelona Principles, somewhat over-estimating the

profile of the industry standards on the client side

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Focus for communications measurement – change over time

Clients Q4 Please indicate how much of your communications measurement efforts focus on each of the following (Base: all clients)Clients Q5 Please indicate how much of your communications measurement efforts 3 years ago focused on each of the following (Base: all clients)

Clients - now Clients - 3 years ago

15% 12%

20%16%

65%72%

Outputs (i.e. media results)

Outcomes (i.e. change in behaviour)

Business results (i.e. change in fi-nancial metric)

SUMMARY• Clients were also asked to estimate where the focus for communications measurement lay three years ago• There has been a modest shift of focus away from measuring outputs towards measuring outcomes and business

results• However, both three years ago and at present, outputs remain the dominant focus for communications measurement

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Objectives/structure of measurement work

Clients Q6 How often does your measurement work do each of the following? (Base: all clients)

Measure target audience changes result-ing from communications

Determine business results from communications

Include AVEs

Set goals before measuring

Measure social media

Use approaches that are transparent and can be replicated

Measure both media quantity and quality

15%

14%

34%

8%

8%

3%

5%

51%

45%

20%

32%

25%

20%

12%

29%

33%

40%

57%

63%

68%

82%

Never Only rarely/some of the time Always/most of the time

SUMMARY• More than eight in ten clients say their measurement work always/mostly measures both media quantity and quality• Almost seven in ten always/mostly use transparent/replicable measurement approaches• More than six in ten say they always/mostly include social media• One in three says they never use AVEs, but 40% always/mostly do include this kind of measurement• Attempting to measure target audience change and/or determine business results from communications are less

frequently part of the process

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Client priorities when considering communications measurement services

Clients Q7 On a scale of 1 to 5, where 1 = not at all important and 5 = extremely important, how important are each of the following to you when considering communications measurement services? (Base: all clients)

SUMMARY• The two most important aspects of communications measurement services for clients are a) ensuring that the data

creates insights and b) reports which can be shared with senior management across the organization • The ability to track key reputation/brand attributes and simplicity of reporting are also among the highest priorities• The inclusion of social media is the fifth-placed priority, coming in above both TV and radio

Includes paid media such as advertising

Includes owned media such as your website

Focuses on measuring only key media

Cutting-edge methodology

Includes a quality scoring system specific to your organization

Can produce a financial ROI

Provides consistency across multiple geographies

Has an online dashboard

Includes radio

Includes TV

Includes social or other shared media

Simplicity

Can track key reputation or brand attributes

Reports that can be shared with the top echelon of your organization

Creates insights from the data

30%

35%

41%

48%

53%

53%

55%

58%

61%

70%

74%

78%

79%

86%

89%

% scoring 4 or 5 out of 5 (where 5 = extremely important)

Section 3:THE FUTURE

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Single greatest potential to drive business growth

Members Q13b Which area of business activity offers the greatest potential to drive business growth during the next 12 months? (Base: all members)

Other area of business activity

Online news monitoring

Print media monitoring

Broadcast monitoring

Print media analysis

Manual measurement technologies

Digital/social media monitoring

Online news analysis

Projects with international scope

Consultative/ “deeper-dive” services with clients

Integration with other marketing analytics

New/automated measurement technologies

Digital/social media analysis

5%

2%

2%

2%

2%

2%

3%

5%

8%

13%

15%

21%

23%

SUMMARY• Members were asked to indicate the business activity with the single greatest potential for growth in the coming year• Top if the list, mentioned by 23%, is digital/social media analysis, followed by new/automated measurement

technologies (21%)• Integration with other market analytics and consultative/ “deeper dive” style services are also mentioned by more than

one in ten

Section 4:AMEC MEMBER BENCHMARKING

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Continuous vs ad hoc

Members Q16a Please indicate the value of all research and insights business undertaken in 2012 as continuous work? Members Q16b And now please indicate the value of all research and insights business undertaken in 2012 as ad hoc projects? (Base: all members answering)

SUMMARY• Despite the widely-held belief that the proportion of ad hoc assignments to continuous work is growing, the balance

between the two remains very similar now to the levels reported five years ago – 80% continuous, 20% ad hoc

Continuous work: 80%

Ad hoc work: 20%

Survey year 2008 2009 2010 2011 2012

Continuous 81% 81% 80% 84% 80%

Ad hoc 19% 19% 20% 16% 20%

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Direct end clients: 66%

• AMEC members taking part in the 2013 survey have

16,700 clients between them

Client base by origin

Members Q18 Thinking now about the research and insights business you carried out in calendar year ending December 31st 2012 which was originated by PR consultancies, how many end clients did you carry out work for? Members Q19 How many direct end clients did you carry out research and insights business for in calendar year ending December 31st 2012 (Base: all members answering)

SUMMARY• The AMEC members participating in the 2013 survey report a total client base of approaching 17,000 organizations• Two in three of this total are direct end clients for AMEC members, while the remainder are originated by PR

consultancies• The proportion of clients originated through PR firms has jumped this year – probably a reflection of the changing

profile of the membership base

End clients originated by PR consultancies: 34%

Survey year 2009 2010 2011 2012

Direct 84% 81% 79% 66%

Via PR 16% 19% 21% 34%

#amecatwork

Measurement Weekw/c 15th September, 2014

An AMEC Global Education Programme initiative

The strategic directionWhat is it?

• Measurement Week is a key strategic initiative from AMEC to fill the gap between understanding the value of PR measurement and doing something about it!

• Measurement Week is a high profile international programme to help achieve greater adoption of measurement techniques.

• International week of AMEC member-led events unified via social media to raise awareness and excitement around the latest thinking in measurement.

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Launch ideas

• Strategy is to target the groups who are most vested in the concept rather than promote too heavily among the wider marketing community.

• Year 1 objective is to build a solid but perhaps not spectacular foundation for future success and keep the concept slightly below the line until momentum has been generated.

• Encourage AMEC members to spread the word through WoM and through their channels using #amecatwork.

• AMEC to provide content for publication as stand-alone or as part of broader measurement material to AMEC members at launch and during the week (& published to the Measurement Week holding page.

 

Next steps

How will AMEC members be involved?

• Each AMEC International Chapter will promote Measurement Week within its geography.

• Each Chapter to look for one flagship property to run during Measurement Week – e.g. collaboration with PR membership group, trade partner, etc.

• PLUS Special delegate creative session for delegates at International Summit in Amsterdam in June!

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For further information on the survey:

Contacts for AMEC:

John Croll+612 9318 4004john.croll@isentia.com

Barry Leggetter + 44 7748 677504 barryleggetter@amecorg.com