There are enough studies done to gauge the impact of PR on company’s products and services and more importantly their reputation. In fact, an InterBrand study found that 27 percent of a brand’s value is tied to how often the brand name appears in the press. In industries that involve more research before purchases are made, public relations can account for nearly half of the brand value. It is also a well established fact that good editorial coverage is considered 6x to 8x as influential as advertising. Despite these facts, budgets for PR remain abysmally low and no investments are made for measurement of PR either by companies or by PR Agencies.
To the best of my understanding, the challenges that remain for measuring the impact of PR are 2 fold and interrelated.
- Since the budgeted spends on PR are very low, the budgets for measuring PR either do not exist in the budgets allocated or are so low that nothing much can be done in that money besides, Advertising Value Equivalents (AVE) calculations.
- The problem is also compounded by the fact that other measurement techniques and services come at an exorbitant rate in comparison to measurement in advertising. For example, in advertising usually a company spends about less than 3% of their advertising budgets for measurement.