Three Ways to Measure ROI 1. Audience Response We can assume that direct mail and advertising have about a 1% response rate and that editorial PR carries more weight with a potential audience that blatant advertising based on most of the marketing research available. Most sources agree that if an editorial piece has at least a 2-sentence mention of a company or product, PR has a 2-5% immediate response rate of potential buyers if there are no barriers to action and that 20% of potential buyers will consider the company or product next time they are looking for its category. The trick? How do you determine the number potential buyers? Look at their advertising data for demographic information and the usability and price of your product – How affordable is it? Who is likely to use it? How many of those people actually read this magazine (not just total circulation)?
2. Compare it to Advertising You can often justify spending or not spending on PR if you look at how much a display ad or commercial in a given media would cost. When budget season rolls around, look at how much PR you got and how much the same advertising would have cost. If you can measure how effective your advertising was, use that as your control measurement for PR costs.
3. Use Your Gut There is NO universally accepted way to measure the ROI of a PR campaign. Try changing just one factor at a time to see how it effects sales, but there are so many factors outside of your control, it really comes down to what’s in your gut!
To learn more about this author, visit Sarah Waffle's Website.
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Sarah Waffle
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At No Retainer PR, we believe in helping
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