Measuring the ROI of Public Relations: A Guide for Startups

• How do you align your PR Strategy with your Business Goals?

• How to look at Share of Voice (SOV)

• How do you evaluate the value of coverage?

• What is the use of 'sponsored' or 'owned' media?

Aligning PR Strategy with Business Goals

One of the biggest mistakes companies make is relying on cookie-cutter measurements when evaluating the impact of PR. These measurements often don’t reflect whether the activities move your company closer to its goals.

Start by asking what you want from PR and set related KPIs. Are you trying to establish your brand? Overtake a specific competitor? Set the stage for an IPO? Or leverage PR to recruit and retain talent? Different goals require different strategies and, therefore, different KPIs.

For instance, we had a client whose goal was discovery by a specific title in large technology organizations. We achieved far greater impact by pitching original data analysis each month to one reporter as an exclusive. In this case, quality was far more important than quantity.

For clients seeking general brand awareness, broader campaigns might be more impactful, where the goal shifts to quantity.

Understanding Share of Voice (SOV)

SOV Alone Lacks Context

Many companies rely on SOV to determine whether their campaigns are impactful and assess how their results compare to the competition. However, media monitoring platforms don’t weigh online references based on quality or impact. They also don’t differentiate between earned media, press releases, and pickups.

For example, a competitor's crisis could lead to a massive spike in SOV due to negative news coverage. But that's not a desirable type of SOV increase.

Beware of Miscalculations

SOV is a quantitative measure and can be highly misleading. To get an accurate portrayal of brand resonance, coverage needs thorough analysis and context. Qualitative analysis must complement the raw numbers.

For instance, Cision and Muck Rack will count stock quote mentions as coverage. If your company isn't publicly traded, you're comparing apples to oranges if you don't parse out stock news.

The Press Release Dilemma

Press releases can artificially inflate SOV. Since you decide how many press releases to publish and the level of distribution, paying for wider distributions prompts more pickups and higher SOV. However, press release pickups aren’t articles, and many only appear temporarily on news sites.

If you or your competitors push out numerous press releases at high distribution levels, that will cause SOV to rise but won’t reflect actual reach to your target audience.

Evaluating Coverage Value

Not All Coverage Delivers Equal Value

Earned media—coverage by third-party sources like reporters, analysts, and influencers—holds far more credibility and resonance than owned media or sponsored content. Identifying genuine articles written by reporters and published on news sites gives a much more accurate reflection of SOV.

Take Your Brand Pulse

Whether you’re a startup disrupting established players or a market leader, Si14 Brand Pulse imparts critical insights on challenges and opportunities related to media, analysts, and general brand awareness. We provide the data and context, along with strategic intelligence and recommended actions.

The Power of Owned and Sponsored Media

Control Your Narrative

The advantage of press releases, blog posts, and other content your company owns is that you determine timing and narrative. Sponsored media placements let you share specific messages and include links. The downside is lower credibility than third-party coverage.

Mix It Up!

We recommend a combination of earned, owned, and sponsored content. Audience attention spans are short these days, and there’s so much noise out there. Creating numerous touchpoints helps raise your profile.

Conclusion: Measuring PR Effectively

In conclusion, measuring the ROI of public relations is a nuanced process. By aligning your PR strategy with your business goals, understanding the context of SOV, evaluating the true value of coverage, and mixing different media types, you can gain a clearer picture of your PR impact.

So, are you ready to take your PR strategy to the next level? Let's get started!