Ad equivalency measures have their share of critics, but some say the practice still deserves a place within the arsenal of PR measurement tools. The challenge is for
proponents to fess up to where the measures hold weight and where they fall short.
Ad equivalencies seek to gauge PR's worth by comparing ink coverage or airtime to what the same chunk would have cost in advertising dollars.
As a diagnostic tool, an ad equivalency measure can help practitioners chart correlations between the amount of time they spent on media relations and the results they
achieved. The equivalency meter is also a benchmark commonly requested by senior managers for the purpose of evaluating PR performance over time. Another benefit: it's
inexpensive.
"Any measure is better than no measure at all," says Ron Levy, president of North American Precis Syndicate. "Ad equivalency numbers give the PR team guidance on what got them
the biggest bang for the buck."
Roberta Carlton, director of corporate relations for software developer Cognos, disagrees. She says the ad equivalency is not only imperfect, but tragically flawed. "It gives
no qualitative meaning and is not worth the time it takes to calculate it," she says. "My time is better spent getting out and doing PR."
Those who choose to stick with the equivalency route say there are boundaries regarding how ink coverage should be attributed to media relations efforts. Angela Jeffrey,
principal of jeffrey communications, says equivalency proponents sometimes exaggerate outcomes. As such, she recommends the following ethical guidelines in measuring placement:
- If you are the sole source in the story, you can count the entire story in your report.
- If you are one of several sources, you can either measure as much of the story as applies directly to you, or divide it up by the total number of sources.
- If you are mentioned once in a story that has very little to do with you, it's best to count only an inch or so on your report.
- If the item you wish to measure is a "free ad" or promotional item, it should be logged on your report in terms of its true "advertising value." It should not be multiplied
for a "publicity value" since it is not true editorial.
B.S. Monitor
There are limits to what ad equivalencies truly measure in terms of quantitative data. Common sense may hint that the positive ink captured in the local paper increased sales
for three weeks following the placement, but an ad equivalency can't prove the correlation.
"A huge peril of the method is if your management shows your numbers to the advertising department and they don't buy it," says Levy.
Furthermore, ad equivalencies will assign a numerical value to the amount of ink you received, but won't calculate how the message was slanted or whether or not your key brand
messages were communicated. For that you need a method that plunges into the context of the story.
"We look at the individual messages of a story to see if the [PR] campaign's objectives are being met," says Mark Weiner, executive VP at Delahaye Medialink. "Just because your
company gets mentioned in a story doesn't mean your message was a part of it. You have to look at the context."
Some research suggests that multiplying the ad value of a PR campaign to better equate PR with advertising is misrepresenting PR's worth.
"In certain circumstances and at a single point in time, positive [PR] coverage is as influential as advertising," says Bruce Jeffries-Fox, director of public relations
research at AT&T and chairman of research and development for the Institute for Public Relations. "They have the same amount of magnitude."
Meaning, PR can be as effective as ads in swaying public opinion. But, Jeffries-Fox's findings in his "News and Advertising Interaction Study" go against the commonly held
assumption that PR is, by rote, more effective because it secures third-party endorsements. His findings indicate that PR departments that are calculating their PR value by
multiplying ad rates are basing their numbers on arbitrary factors.
"I know some companies multiply their ad values by eight," Weiner adds. "They apply the pass-along rate."
Open Rates
Another contentious issue in the ad equivalency debate is applying ad rates to the space PR campaigns capture. Many departments use the highest possible ad value (the open
spot rate) as a unit of measure. This amount is what a company would pay for advertising if it didn't negotiate discounts for frequency-buys with advertisers. "Companies commit
to a calendar with their ads," says Weiner. "They never pay the full price."
For PR to use the open rate means its effect is overstated. It is equating itself with a higher dollar figure than what most companies' advertising costs. "If PR departments
took 15% off the open rate, it would be a better measure against advertising costs," says Jeffrey.
Bottom Line
At best, advertising equivalencies only paint half of the measurement picture. They can chart, but they can't help strategize. The challenge for PR counselors is convincing
CEOs that more expensive research initiatives are warranted. Especially when "tried-and-true" equivalency measures have been used for years and can subsist on a shoestring
budget.
(Carlton, 781/313-2446; Jeffrey, 713/956-0948; Jeffries-Fox, 908/221-8191; Levy, 212/867-9000; Weiner, 203/899-1600.)
How Equivalency Proponents
Are Calculating Time & Space
Newspaper: Articles are always measured by the column inch.
- Determine the size of the standard columns in the paper's format.
- Count (horizontally) the number of columns, and (vertically) the number of actual inches the story covers. Then, multiply the two numbers.
- Multiply the column inches by the B&W advertising rate for the publication. If the story is in color, add the one-time cost to the B&W.
Radio: Spots are usually priced in 60-second segments. Costs vary depending upon time of day, day of the week, and season of the year. Day parts are defined as follows:
- 5 a.m. - 6 a.m.
- 6 a.m. - 10 a.m.
- 10 a.m. - 3 p.m.
- 3 p.m. - 7 p.m.
- 7 p.m. - 12 a.m.
- 12 a.m. - 5 a.m.
Determine how many minutes and seconds the story aired and multiply the total by the spot cost for that time segment.
Television: Ads are sold in 30-second increments, and are also priced by time of day, day of the week, and season of the year. Contact your local TV station sales reps for
rates and audience reach figures for news and public affairs show periods. The cost of a story is determined by the number of seconds it was on the air multiplied by the cost-per-
30-second spot during that time period. (Angela Jeffrey, 713/965-0948.)
Magazine: Ads are sold in sizes such as "full page," "half page," "quarter page," etc., and based on black & white, 2-color, 3-color or 4-color.
- Horizontally count the number of standard columns in the magazine. (Or, use the standard SAU column inch width of 2 9/16 inches). Vertically, measure the number of
inches of type. Multiply the numbers. - Obtain the "full page" ad rates for b/w, 2-color, 3-color and 4-color ads. Simply divide the "full page" rates by the number of total column inches to get your "per-column-
inch" rate.