I’m honored (or honoured) to have written a guest post on one of the best blogs in all of PR/Communications — PRConversations — thanks to Judy Gombita, who recruited me. The topic is my tripartite professional association affiliation — IABC, PRSA and the Institute for PR. Namely, are they valuable, necessary and a good value? The comment stream alone is worth reading, with several luminaries weighing in (and no cursing or objects thrown so far, thankfully.) Give it a read and tell me what you think!
Posts Tagged ‘ROI’
Talking About PRSA, IABC, IPR on PRConversations Blog
Monday, July 12th, 2010Communicators too often out the door in hard times
Monday, March 8th, 2010I’ve been a regular reader of the New York Times’ Corner Office series, where they interview a senior executive, usually a CEO, about how they hire, how they lead and manage and what they do. There is a central theme that runs through literally all of these interviews: communication excellence.
Every exec talks about how important communication is to their work — both by them and with them. Of course, there is a bit of the “usual” about that kind of statement. No one would ever say, “communication is not important at all in my work.” But what I find striking about this observation is that ostensibly, we public relations people are the experts in communication, but get too easily dismissed from the leadership table. We are welcome during times of crisis (the one time, it seems, that the mahogany row types understand our value) but aren’t regularly consulted about the communication dynamics of decisions.
Additionally, financial pressures often lead to cuts in the communication staff that could help the company deal with the financial issues, particularly internal communication. It’s a fact that internal communication pros earn less than their media relations colleagues and tend to be lightly regarded. I’ve encountered this in my own career. I feel reasonably comfortable saying that generally, businesses don’t care about internal communication very much at all. They care about “getting the word out” internally, or “making sure we’re all rowing in the same direction.” But honest improvement in the process of communication within the enterprise? Not so much.
Why?
Some of the issue emerges from a distinct lack of communication curriculum in colleges of business. Marketing, management theory, finance and operations, but no communication theory that could help leaders understand their workers (and customers) better. More of the blame goes to convenient financial thinking. It’s easier to impose across-the-board cuts than dig into an income statement and excise the real waste, duplication and nonessentials.
One company had a largely decentralized communication structure that permitted significant duplication in communication infrastructure. Some such duplication is inevitable in a multi-national company, but why have 40-something different intranets, run on multifarious platforms? Why not unify newsletter design under a singular brand? This company really has no idea what it spends on communication, because the units are autonomous — the financials are opaque.
Canada’s Bombardier (a few years ago) published a paper newsletter that permitted regions to wrap their own around the corporate version. All the design elements reinforced the brand. You knew it was a Bombardier newsletter whether you were in Montreal or Dublin, Ireland. That kind of consistency is economical.
How about automating manual processes on the intranet? Sounds like it should be an easy sell, but companies look at the up-front costs and decide to forget it.
I fault us. As the putative experts, we should have a deep understanding of how moving communications levers will create value for the business.
But too many of us don’t have a clue, and that means, when the going gets tough, we’re the ones who get told to get going…out the door.
Still stuck on AVEs
Monday, November 23rd, 2009The continuing debate over advertising value equivalency reached the pages of the New York Times 22 Nov., with a “Soapbox” piece saying Hollywood studios are cutting ad budgets and using public relations as an alternative. One anecdote:
Disney recently went so far as to develop a computer program to help it determine how much monetary value was coming from such publicity efforts. It can quickly plug in data — “Access Hollywood” had a 30-second interview with a star of “The Middle,” a new ABC comedy — and the program spits out what that same 30 seconds would cost to buy.
AVEs are a sore spot in PR circles these days. KD Paine, measurement maven extraordinaire, has campaigned against them for years as bogus figures that don’t quantify the value of media hits. The Institute for PR Measurement Commission (of which I am a member) officially condemned the practice in October, and PRSA has formed a blue-ribbon panel to address measurement generally — looking to a world without AVEs.
I believe there are certain circumstances where AVEs are useful — product publicity, for one, where features and benefits are the subject. But AVEs need to be net of cost, be based on actual charges, not simply “book rate,” and the publication has to be targeted to the specific business need. My example is Goodyear, the tire company. If they get a product review in Road and Track, it’s going to be relevant to their audience, include features and benefits, and in nearly all cases quite similar to an advertisement. What’s unaccounted for is the reader’s perception of value — AVEs are limited by an inability to include the weight of third party independence.
Look, notwithstanding this last paragraph, AVE is a bad metric 90 percent of the time, and there are other ways of evaluating media coverage that are better.
So, why does it appear that so many firms are stuck on this difficult metric? Well, AVEs are simple to understand. Here’s what it would have cost us to buy this time or this space — that’s a lot easier to grasp for a lot of people. There also is the pressure on PR agencies levered by their clients — “I understand you don’t like AVE, but I have to have a dollar figure to tell my CEO, so if you don’t give it to me, I’ll find someone who will.”
Still, I wish that more companies would stop using AVE. Oh, and that more people would understand that PR isn’t limited to publicity and press agentry. Perhaps the best reason not to use AVE is that it doesn’t measure the reputation work that represents most of what PR work is in business these days. For every stunt PR trick, there are months of quiet conversations with centers of influence, months of work on helping employees better understand their industries and organizations, and programs designed to help people grasp the significance of a company’s role in the community. There is more to our profession than being a low-cost replacement for marketing.
ss marketing/advertising in favor of “marketing to a segment of one” right this very minute.