This document is part 3 of an analysis of navigation tools for a media driven world. It discusses members seeing an increased interest from clients in reporting the outcomes of communications activity and demonstrating the financial return on investment of communications. Examples are given of campaigns that achieved high returns on investment. The Barcelona Principles of measurement are also mentioned, emphasizing the importance of measuring outcomes over outputs and demonstrating the effect on business results where possible.
1. Analysis: navigation tools for a media driven world
Part 3: Return on Investment
Paul Hender, Head of Insight and Analysis
E-mail: paul.hender@gorkana.com
Twitter: #GorkanaAnalysis
YouTube: www.youtube.com/GorkanaGroup
5. 5
76%
members are seeing clients report an increased
interest from their senior management in reporting
the outcome of communications activity
67%
of members are seeing clients ask for a defined
financial ROI to demonstrate the business benefit
of communications
9. Barcelona Principles
9
MMX
1. Importance of Goal Setting and
Measurement
2. Measuring the Effect on Outcomes is
Preferred to Measuring Outputs
3. The Effect on Business Results Can and
Should Be Measured Where Possible
4. Media Measurement Requires Quantity
and Quality
5. AVEs are Not the Value of Public
Relations
6. Social Media Can and Should Be
Measured
7. Transparency and Replicability are
Paramount to Sound Measurement
28%
14. Analysis Manual
Home office - immigration
14
20%
19%
26%
23%
20%
21%
19%
22% 22%
26%
29%
0%
10%
20%
30%
40%
0
20,000
40,000
60,000
80,000
%ofpublic
Socialmediametnions
Immigration in general Immigration as a % of mentions in Ipsos Mori Issues Index
Social media mentions vs market research
Correlation: +0.80 (p < 0.05)
15. 15
Number people who drowned by falling into a swimming-pool
correlates with
Number of films Nicolas Cage appeared in
Correlation: +0.67 (p < 0.05)
23. 23
• Temperature
• Air pressure
• Wind speed and direction
• Humidity
• Satellite images
• Commodity prices
• Interest rates
• Employment
• Inflation
Weather Economy Sport
• Temperature
• Distance from London
• Altitude
• Referee from Europe
• Colour of Shirt
“All models are wrong but some are useful” – George Box
24. Analysis Manual 24
Multivariate regression model on website hits
Websitehits
SocialMedia Mainstream Media Amazon iPlayer + Horizon Website Hits
11%
35%
39%
15%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Goodness of fit (R squared) = 98%
27. 27
“Inspired envy! I want to convince more clients to
believe in PR ROI and conduct this kind of
measurement to PROVE what works. Well beyond
tracking coverage into connecting it to sales.”
29. Analysis: navigation tools for a media driven world
Part 3: Return on Investment
Paul Hender, Head of Insight and Analysis
E-mail: paul.hender@gorkana.com
Twitter: #GorkanaAnalysis
YouTube: www.youtube.com/GorkanaGroup