In-house PR practitioners How well PR strategy supports the organisation’s overall strategy

1. Unlocking the Potential of Public Relations A best practice study conducted by the Institute of Public Relations and Department of Trade and Industry, UKProf Anne Gregory FIPR, IPR PresidentGerald Chan AMIPR, IPR Public Affairs & Education Officer

3. Unlocking the Potential of Public RelationsA report by the DTI and the IPRwww.ipr.org.uk/unlockpr

4. In-house PR practitionersHow well PR strategy supports the organisation’s overall strategy

5. 1 = not at all, 6 = completely/absolutely Main purposes of PR and how effectively they are achieved PR Consultancies

6. What constitutes good PR practice? 120 elements of good PR practice identified covering: • Strategy making • Structure and organisation • Commissioning and resources • Research and planning • Professionalism • Creativity • Technology • Evaluation

7. Effectiveness of audience research

8. 1 = not at all, 6 = very important Importance of individual competencies for PR professionals

9. 1 = all internal, 6 = all external Activities outsourced to PR agencies/ consultancies and to what extent

10. Organisations running formal training and development programmes for PR professionals Consultancy In-house

11. Future directions?

12. Maximising the Potential of PRProfessor Anne GregoryPresident, Institute of Public Relations & Director, Centre for PR Studies, Leeds Met. UniversityandDora McCabeHead of Group Public RelationsCadbury Schweppes plc

13. www.ipr.org.uk/unlockpr • DTI funded study of PR competitiveness • @1,000 senior respondents • Lots of best practice… • But highlights some areas for major concern…

14. Return on Investment (ROI):The ratio or percentage of how much profit or cost saving is realised from an activity against its total cost

15. Measuring &Reporting in Public Relations An IPR and CDF study conducted by Metrica Research Ltd May 2004

16. Method & Sample • Semi-structured phone survey of 100 senior Communication Director and CEO respondents • 80 private sector • 20 public sector • Desk and web-based research on best practice & case studies

17. Benefits of PR …long-term • raise awareness • build reputation • improve business standing • improve positioning against competitors …short-term • raise awareness • build reputation • contribute to increased sales • improve internal morale • support other marketing activities

18. Public sector In response to pressure for uniformity Combining internal teams & external agencies Using broad range of tools and techniques Private sector 44% conduct regular, planned & proactive measurement 31% conduct sporadic & reactive measurement 25% conduct one-off measures Measuring PR

19. Improving PR Measurement • 59% intend to improve PR assessment and monitoring butplans vague, poorly thought through and some just ‘tinkering’ • Only 4 respondents cited firm and definite plans in place to improve PR measurement

20. Measuring PR as ROI • Half referred to some form of financial measure but… • Significant proportion not confident about PR performance in terms of revenue or profit • 8 out of 10 referred to ‘reach and frequency’ or ‘effect on audiences’ as main forms of measurement

21. Measuring PR as ROI • Only 6% claimed to measure PR in ROI related terms • 34% did consider PR budgets in ROI terms • 6 in 10 would use ROI to measure PR to… • Measure performance • Justify existing PR spend • Prove need for additional PR spend

22. PR ROI versus other communication measures • Over 50% believe that PR ROI would lead to bigger budgets and create more opportunities for PR • Up to 35% believe that PR ROI could be a threat and encourage budget restrictions • > 15% believe that only AVEs can provide necessary ROI measures • Others measure coverage (e.g. media analysis), reach and frequency or effect on audiences

24. Recap: Measuring PR as ROI • Majority believe in • Tangible PR assessment • Reporting • Universal form of PR ROI Main issue is choosing what to measure and how to measure and report in ROI-type terms

25. Does PR ROI make sense? • ROI: Ratio or percentage of how much profit or cost saving is realised from an activity against its total cost • Confusion over an agreed definition of ‘PR ROI’. Some examples of cost-savings and increased revenue • Cost-benefits, where identified, defined in different ways • Different perceptions about how to measure PR • Translated into cost or revenue • …but does not conform to strict definition of ROI

26. IPR concludes… • Industry largely still too defensive • ROI terminology in PR • undervalues PR work • perpetuates false comparison with advertising • poor substitute for basic and rigorous PR measurement and evaluation

28. Linking PR outputs & outcomes to Organisation objectives & outcomes www.ipr.org.uk www.cdf.com

29. Timberland: PR sales to boot • Research identifies the market gap • Feb 01 - Jan 02 OTS 107,001,000 across ABC1 18-24 yr old market • Effect of PR campaign systematically tracked • 26% UK store sales increase over same period = PR effect

30. Hadrian’s Wall National Trail Path – 7 years - £6bn • Print OTS 20million and TV OTS 8million • Visitor number up 50% on previous year • 70% more bus passengers • 25,000 trail information leaflets sold, requiring re-print of 30,000 • 4,000 guidebooks sold out in 3 weeks • Website traffic up 50% on previous year • Information Line calls x 4 times volume

31. Volvo XC90 Launch • Overall UK 4x4 market up 400% • PR impact = 45% XC90 sales • Advertising cancelled: saving £2.5million

32. Miller: disaggregating the PR effect • Over 2 1/2 years communication analysis identified that PR generated 1.2% of base product sales, or 4% of incremental product sales • Cost-effectiveness of PR understood against TV adv. effect

34. IPR industry aspirations • Learn from and educate practitioners about meaningful PR programme planning (this includes measurement and evaluation) • Educate clients/employers about PR   • Not ‘PR ROI’ but Evidence-Based PR • the difference made to business and organisation objectives made as a result of PR (PR outputs and outcomes)

35. Evidence-Based PR:PR outputs and outcomes • Media evaluation: no.of messages sent, coverage obtained, messages featured, OTS, against competitors • Qualitative & quantitative research: message understood and/or acted upon by audience, new and repeat behaviours • Attitudinal change: across audiences, against messages and competitors • Audience change: cognitive, affective, conative ???? • Quality of relationships: achieved, maintained, protected - by audience group, against messages • Reputation: benchmarked by audience group, against messages and competitors • Cultural/social/political change: dialogue, partners, licence to do X, change law • Financial measures, share-price, volumes sales, calls made, web traffic, attendees …delivering organisation outcomes

36. Evidence-Based PR • Managerial effectiveness .e.g. delivering strategy, staying within budget, client handling efficiency… • Monitoring effectiveness .i.e how are we going along the way: out-take measures to modify PR programme to deliver organisation outcomes • Measuring effectiveness .i.e. how did we do in the campaign to deliver PR outcomes and business outcomes • Organisation contribution .i.e what is our contribution and value to the organisation

37. Evidence-Based PR:tailoring tools • Surveys: tracking, benchmarking, qualitative research, panels • Clippings and media analysis • Quarterly/annual reviews, meetings and reports • Benchmarking and tracking media coverage or progress on other specific objectives …leading to the balanced PR scorecard encompassing Key Performance Indicators for programme delivery…

38. Evidence-Based PR

39. Thank you! Prof Anne Gregory, IPR PresidentGerald Chan, IPR Public Affairs & Education Officer