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Public Relations ROI:
  Definitions, Language & Change
                     Tim Marklein
    Practice Leader, Technology & Analytics, WCG
Co-Chair, Measurement Committee, Council of PR Firms




 Web: www.prfirms.org
 Twitter: @CouncilPRFirms
The Challenge & Opportunity
•  Public relations ROI is a key issue for clients and agencies, as it
   determines investment levels and priorities
•  ROI is used very loosely as a term within PR, often referring to results
   or other returns that haven t been quantified
•  Non-financial returns are understood by most PR pros, but PR s impact
   on financial returns are less understood
•  PR regularly invests in media and output measurement, but doesn t
   invest enough in outcomes measurement
•  ROI methods are actively discussed in PR measurement circles, but not
   by the mainstream PR community
CPRF Measurement Committee POV


             ROI = ROI
             Results   ≠ ROI
           227 Stories ≠ ROI
            400K Fans ≠ ROI
       ROI = Money In, Money Out


   Total Value of PR > ROI
Total Value of PR = Tangible + Intangible
 Total Value of PR = Near-Term + Lasting
CPRF ROI Workgroup Plans
•  Q2 11: Outline a clear definition, POV and set of methods for ROI
   evaluation that can be used across the PR industry
•  Q3 11: Partner with IPR, AMEC, PRSA, CIPR and others to publish and
   promote definitive guide to public relations ROI
    •  Guide to include definitions and principles, best practices and case studies,
       sample methodologies, bibliography with links
    •  Leverage existing venues: AMEC European Measurement Summit (Lisbon,
       Jun 11); IPR/PRSA 9th Annual Measurement Summit (Philadelphia, Sept 11);
       CPRF Critical Issues Forum (NYC, Oct 11)
•  Q3 11: Partner with business school leaders as contributors to the
   process, and pursue published pieces in HBR, etc.
•  Q4 11: Create ready to use training materials for agencies
    •  Package content into a webinar, PowerPoint deck and podcast/video tutorials
       for PR practitioners at all levels
    •  Make the materials mobile and social – accessibility is key
Prior Works from CPRF
•  Measuring the Impact of Public
  Relations on Sales, published
  in 2005 (available at prfirms.org)
•  Demonstrating the Value of
  Public Relations, published in
  2003 (not available in PDF)
Public Relations ROI: Definitions, Language & Change

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Public Relations ROI: Definitions, Language & Change

  • 1. Public Relations ROI: Definitions, Language & Change Tim Marklein Practice Leader, Technology & Analytics, WCG Co-Chair, Measurement Committee, Council of PR Firms Web: www.prfirms.org Twitter: @CouncilPRFirms
  • 2. The Challenge & Opportunity •  Public relations ROI is a key issue for clients and agencies, as it determines investment levels and priorities •  ROI is used very loosely as a term within PR, often referring to results or other returns that haven t been quantified •  Non-financial returns are understood by most PR pros, but PR s impact on financial returns are less understood •  PR regularly invests in media and output measurement, but doesn t invest enough in outcomes measurement •  ROI methods are actively discussed in PR measurement circles, but not by the mainstream PR community
  • 3. CPRF Measurement Committee POV ROI = ROI Results ≠ ROI 227 Stories ≠ ROI 400K Fans ≠ ROI ROI = Money In, Money Out Total Value of PR > ROI Total Value of PR = Tangible + Intangible Total Value of PR = Near-Term + Lasting
  • 4. CPRF ROI Workgroup Plans •  Q2 11: Outline a clear definition, POV and set of methods for ROI evaluation that can be used across the PR industry •  Q3 11: Partner with IPR, AMEC, PRSA, CIPR and others to publish and promote definitive guide to public relations ROI •  Guide to include definitions and principles, best practices and case studies, sample methodologies, bibliography with links •  Leverage existing venues: AMEC European Measurement Summit (Lisbon, Jun 11); IPR/PRSA 9th Annual Measurement Summit (Philadelphia, Sept 11); CPRF Critical Issues Forum (NYC, Oct 11) •  Q3 11: Partner with business school leaders as contributors to the process, and pursue published pieces in HBR, etc. •  Q4 11: Create ready to use training materials for agencies •  Package content into a webinar, PowerPoint deck and podcast/video tutorials for PR practitioners at all levels •  Make the materials mobile and social – accessibility is key
  • 5. Prior Works from CPRF •  Measuring the Impact of Public Relations on Sales, published in 2005 (available at prfirms.org) •  Demonstrating the Value of Public Relations, published in 2003 (not available in PDF)