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Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
Measurement 101  Measuring Public Relations Roe Roi Ms 2008
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Measurement 101 Measuring Public Relations Roe Roi Ms 2008

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Measurement 101: Measuring Public Relations Impact on ROI by its ROE …

Measurement 101: Measuring Public Relations Impact on ROI by its ROE

Don W. Stacks, Ph.D.
School of Communication
University of Miami
Coral Gables, FL 33124
The Institute for Public Relations
Commission on PR Measurement & Evaluation
don.stacks@miami.edu

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  • 1. Measurement 101: Measuring Public Relations Impact on ROI by its ROE Don W. Stacks, Ph.D. School of Communication University of Miami Coral Gables, FL 33124 The Institute for Public Relations Commission on PR Measurement & Evaluation [email_address]
  • 2. Overview of the Evaluation Process
    • ROI/ROE or ROE+ROI?
    • Best Practices
    • Benchmark
    • Realistic Goals & Measurable Objectives
    • Set Timeline
    • Establish Method s
      • Qualitative
      • Quantitative
      • “ Triangulate”
    • Measure
    • Evaluate
      • Against Benchmark
    • Recommend Action
  • 3. What to measure? OUTPUTS What companies/agencies do OUTCOMES What stake-, stockholders & customers do OUTTAKES What stake-, stockholders & customers understand
  • 4. Best Practices David Michaelson and Sandra Macleod, The Application of “Best Practices” in Public Relations Measurement and Evaluation Systems, Public Relations Journal, 1 (Fall 2007), www.prsa.org/prjournal/fall07.html .
  • 5.
    • All public relations actions, whether they be adding a client or preparing for a campaign begin with an analysis of secondary and historical data about the client and its publics.
    • John W. Hill
    • Founder, Hill & Knowlton
    1. Benchmark
  • 6. Benchmark
    • Data to be evaluated against
    • Available from secondary sources
    • Available from primary sources
      • Focus Groups
      • Surveys
      • Interviews
      • Participant-Observation
  • 7. 2. ROI?
    • Return on Investment?
    • It’s not your traditional ROI
      • Financial indicators
        • Sales, Overall Gross, Top Line Growth, etc.
      • Nonfinancial indicators
        • Credibility, Trust, Relationship, Reputation
      • Impact of Expectations (ROE)
    • Based on business assumptions
  • 8. ROI (cont’d)
    • Decision-making is basically the same in all organizations
    • All communication ( messages ) should
      • Set objectives
      • Determine strategies to meet objectives
      • Implement strategies to bring strategies to life
    • Research can be divided into three general phases
      • Developmental
      • Refinement
      • Evaluation
    • Communication research is behavior-driven and knowledge-based
    Donald K. Wright, as cited in Don W. Stacks, Primer of Public Relations Research, 2 nd ed. New York: Guilford Press, in press.
  • 9. Traditional Thought Marketing Advertising Public Relations ROI
    • Sales Units
    • Gross Profits
    • 800 call tracking
    • Reach
    • Ad Equivalency
    • Placement
    • Clips
    • Promotion
    Marketing impacts on Advertising which impacts on Public Relations Don W. Stacks, Primer of Public Relations Research, 2 nd ed. New York: Guilford Press, in press.
  • 10. Contemporary Thought
    • Financial
    • Indicators
    • Unit sales
    • Gross profits
    • Expenses
    • Nonfinancial
    • Indicators
    • Credibility
    • Trust
    • Reputation
    • Relationships
    • Confidence
    Stakeholder-Stockholder Expectations (ROE) ROI
  • 11. A Public Relations Model: Return on Expectations* Credibility Relationship Reputation Trust Outcome Stakeholders Stockholders ROE ROI C o n f i d e n c e Don W. Stacks, Primer of Public Relations Research, 2 nd ed. New York: Guilford Press, in press.
  • 12. Defining Expectations
    • Credibility
      • The underlying concept that establishes how people rate trust, relationship, and reputation
    • Trust
      • A perception that the evaluation object is dependable
    • Relationship
      • A perception of association between people and some entity
    • Reputation
      • The historical relationship between people and some entity
    • Confidence:
      • An expectation of an outcome
  • 13. 3. Goals & Objectives
    • Goal: General outcome expected by campaign end
    • Objective: Very specific projected outcome
    • Outputs: individual communication elements
      • Impact of specific tactics
      • Written
      • Visual
      • Verbal
    • Objectives are
      • Cause & Effect related
      • Specific to the problem
    • Types
      • Informational
        • General and specific knowledge
      • Motivational (expectation)
        • Attitudinal and belief oriented
      • Behavioral (most important!)
        • Actual counts, $$$, and so forth
  • 14. Objectives (cont’d.)
    • Informational Objective(s)
    • Motivational Objective(s)
    • Behavioral Objectives
    • Business objective(s)
  • 15. 4. Timeline Time Development (Evaluation) Refinement (Evaluation) Final Evaluation Secondary/ Benchmark Informational/Evaluation Motivational/Evaluation Behavioral/Evaluation Planned benchmarked evaluations
  • 16.
    • Surveys and Polls
      • Descriptive
      • Explanatory
      • Attitude
      • Opinion Polls
    • Content Analysis
      • Descriptive
      • Readability
      • Readership
    • Communication Audit
    • Delphi Study
    • Focus Group
    • Field Observation
      • Participant-Observe
      • Interview
    • Case Study
    • Triangulation
    5. Public Relations Methods
  • 17. Qualitative or Quantitative Methods?
    • Qualitative: Questions of definition, value and policy
      • Intense, but small sample
      • In-depth knowledge vs. Generalizability
      • Examples
        • Focus Groups
        • Participant-Observation
        • Informal Observation
        • In-depth Interviewing
        • Case Study
  • 18. Methods (cont’d.)
    • Quantitative: Questions of definition and fact
      • Scientific
      • Large samples
      • Generalizability vs. In-depth understanding
      • Reliable, representative sampling
      • Examples
        • Surveys (descriptive, explanatory, attitude)
        • Opinion polls
        • Delphi studies
        • Experiments
  • 19. Triangulation Secondary Qualitative Quantitative
  • 20. Methods (cont’d.)
    • Triangulation
      • Use both qualitative and quantitative methods to better describe, understand, predict, and control public relations campaigns
      • Provides both representative sampling and in-depth knowledge of the publics or audiences under study
      • Takes the case study into the “real” world
  • 21. 6. Roadmap to Measuring Behavior Behavior Opinions Attitudes Beliefs Values Motivation to Behave Influenced by Messages Aimed At:
  • 22. Measurement Matrix Objective/ Phase Information Motivation Behavior Benchmark Developmental Refinement Final
  • 23. 7. Sample ROE Evaluation* *Source: Don W. Stacks, Ph.D. All rights reserved Core or Brand Values Public/Target Audience Yourself Your Family Your Friends Others Like You Others who might use
  • 24. 8. Impact of new media
    • Traditional reputational evaluation & measurement was almost static – things didn’t change fast
    • New media has addressed four new elements in evaluation
      • Speed
      • Real time measurement
      • The “rat’s tail” effect
      • The “Power of 1”
  • 25. New media
    • Speed:
      • There is less reliance on editorial review and more on being the first to report
      • Producing much more error in what is being communicated, often with disastrous effects
    • Real time measurement:
      • Requires attention to social media on a continuous basis
      • Outcomes often result in “Dashboard Analysis” and reliance on numbers without understanding what they mean
  • 26. New media
    • “ Rat’s tail”:
      • There are thousands of people who consider themselves “educated” with opinions & they use the social media & are often picked up via web-search engines
      • The good news is that only a few are really influential at any given point in time & they can be identified through systematic social media space & their influence evaluated through their followers
      • The bad news is that influentials often change over time, often due to what they say not the logic of their analyses
  • 27. New media
    • “ Power of 1”:
      • It only takes one negative or bad report to shift attention from positive to negative
      • Influencers are now found in both internal & external publics
      • Monitoring takes on new meaning/legal consequences
  • 28. Hypothetical social media evaluation example Client or product Blogger/Op. Ldr. Audience One-way Two-way asymm. Two-way symm. 0 + - 0 - + .2 .1 .6 +/0/1 = Msg. position . x= % msg. volume + .4 .1 .05 .85 A B C Physicians Drug Company Interpretation: A is neutral, no relationship, and little impact; B is negative, one-way relationship with minimal negative impact; C is positive , engaged in two-way symm relationship with major impact. On audience (physicians) producing mutual engagement with client. Recommendation: Focus on C while watching A and B
  • 29. 9. Conclusion(s)
    • Without a benchmark, we have no way to evaluate
    • Evaluation is process-oriented: knowledge- based and behaviorally-driven
    • We can evaluate public relations, but what we evaluate toward is not exactly what some call “ROI”; ROE must be constantly evaluated to better predict ROI
    • We can collect, analyze, evaluation and recommend courses of action
  • 30. Measurement 101: Measuring Public Relations Impact on ROI by its ROE Don W. Stacks, Ph.D. School of Communication University of Miami Coral Gables, FL 33124 The Institute for Public Relations Commission on PR Measurement & Evaluation [email_address]

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