Although there remains a significant gap between talking about PR measurement and actually doing it, measurement is still the biggest concern among PR execs as they head into
2005, according to an exclusive PR News/Counselors Academy survey.
The survey, conducted earlier this month, queried PR News subscribers and Counselors Academy members (who run their own PR agencies) on a bevy of issues that are
likely to be on the front burner next year, including enhancing CEO relationships and the greatest threat to business revenue next year: measurement (see tables).
While many corporate PR execs continue to drag their feet on measurement - mainly because they have such a difficult time getting buy-in from top managers who often think
it's some sort of freebie - several blue-chip companies have taken the lead in bringing science to what is inherently an art form.
PR is not "an output game but an influence game," says Dean Davison, senior VP/Public Relations & Communications for GE Insurance Solutions (Kansas City, Mo.).
"And how do you know your influencing anybody without measurement?" Davison admits he's puzzled by the reluctance among senior managers to cough up the cash to pay for measurement
services, saying, "Spending $100,000 to $200,000 on an agency and not spending $10,000 on some sort of measurement is troubling."
Never mind dropping that kind of coin on measurement; the amount allocated for what, we're constantly told, is the most pressing challenge for PR execs seldom goes higher
than around $2,000 (see PR News, Dec. 15, 2004). Even so, 58% of the respondents said measurement is Job One for 2005. Whatever.
Nann Miller, a PR consultant who founded the PR firm now called Miller Geer Arizmendez Inc. (Cerritos, Calif.), says the problem with taking PR to a new (and more
measurable) level is that, despite all the chatter among marketing executives for quantifiable returns on their investments, it's not going to happen until corporate America
addresses the status quo.
"There's too much division among advertising and PR, and the financial managers. No one has learned that, for everybody to win, you have to work together," she says. "And
legal thwarts a lot of creativity and puts fear into PR execs. [The PR profession] has to figure out a way to educate the legal profession about understanding PR."
But with only 3% of respondents saying compliance with Sarbanes-Oxley and Reg FD is a priority heading into 2005 - regulations that require PR, legal and IR execs to work
hand-in-glove - that prospect seems unlikely anytime soon.
Contacts: Dean Davison 816.448.7604, [email protected]; Nann Miller, 408.866.7798, [email protected]
Measurement On The Brain
What, In Your Opinion, Is The Burning, Top-Of-Mind Issue For PR Execs In 2005?*
- Show measurement/ROI of PR efforts
- Corporate Social Responsibility (CSR)
- Reputation management
- The economy
- Rising healthcare costs
Source: PR News/Counselors Academy
What's On The [PR] Horizon?
A Look Back...And Forward
| 1. How often did you consult with your CEO throughout the year? | ||
|---|---|---|
| Response Percent | Response Total | |
| Regularly |
57%
|
179
|
| Frequently |
27%
|
84
|
| Seldom |
12%
|
36
|
| Never |
5%
|
15
|
| Total Respondents: 314 | ||
| 2. How does that level compare with the volume of meetings with your client CEO in 2004? | ||
|---|---|---|
| Response Percent | Response Total | |
| Same |
69%
|
207
|
| More |
21%
|
62
|
| Less |
11%
|
32
|
| Total Respondents: 301 | ||
| 3. Among the following issues what is your biggest concern heading into 2005? | ||
|---|---|---|
| Response Percent | Response Total | |
| Measurement and ROI of PR |
58%
|
133
|
| Compliance with Sarbanes-Oxley, Reg FD |
3%
|
6
|
| Improving Crisis Management |
15%
|
35
|
| Employee/Internal Relations |
24%
|
54
|
| Total Respondents: 228 | ||
| 4. What is keeping your agency's mid-level practitioners up at night? | ||
|---|---|---|
| Response Percent | Response Total | |
| Better understanding of clients' business |
37%
|
78
|
| Better grasp of financial, sales issues |
29%
|
61
|
| Enough clips and the ability to measure output |
35%
|
74
|
| Total Respondents: 213 | ||
| 5. What is the greatest threat to business revenue in 2005? | ||
|---|---|---|
| Response Percent | Response Total | |
| Growing clout of mega supermarkets |
4%
|
8
|
| Worsening of War in Iraq |
20%
|
41
|
| Global competition |
34%
|
72
|
| Outsourcing |
17%
|
36
|
| Poorly skilled job candidates |
25%
|
53
|
| Total Respondents: 210 | ||
| 6. What is the greatest threat to client retention in 2005? | ||
|---|---|---|
| Response Percent | Response Total | |
| Growth of Procurement |
9%
|
18
|
| Inexperienced executives executing plans |
37%
|
73
|
| Churn on both sides of the table |
38%
|
75
|
| Losing PR for direct, event marketing |
17%
|
34
|
| Total Respondents: 200 | ||
| 7. Have you seen any up-tick in PR's role within client organizations? | ||
|---|---|---|
| Response Percent | Response Total | |
| Yes |
57%
|
119
|
| No |
43%
|
91
|
| Total Respondents: 210 | ||
| 8. Conversely, has the rise of procurement in the past year jeopardized PR's leadership role? | ||
|---|---|---|
| Response Percent | Response Total | |
| Yes |
22%
|
43
|
| No |
78%
|
154
|
| Total Respondents: 197 | ||
| 9. What is the greatest threat to staff retention in 2005? | ||
|---|---|---|
| Response Percent | Response Total | |
| Improving job market |
14%
|
25
|
| Staff burnout |
26%
|
48
|
| Lack of professional development and training |
6%
|
11
|
| Lured away by better pay |
14%
|
25
|
| Lured away by better benefits |
1%
|
2
|
| Not enough opportunities for advancement |
16%
|
29
|
| Hours or work location not to their liking |
3%
|
6
|
| Not enough rewards, bonuses, ownership opportunities or other financial incentives for extraordinary performance |
18%
|
32
|
| Mergers and acquisitions |
3%
|
5
|
| Total Respondents: 183 | ||
| 10. What had the most negative effect on agency revenue in 2004? | ||
|---|---|---|
| Response Percent | Response Total | |
| Staff turnover |
10%
|
17
|
| Client miscommunication |
6%
|
11
|
| Client failure |
5%
|
8
|
| Economy |
17%
|
30
|
| The Presidential Election |
2%
|
4
|
| Client turnover |
6%
|
10
|
| Increased competition |
7%
|
12
|
| Shrinking budgets |
30%
|
52
|
| Bad Debt (Clients not paying) |
4%
|
6
|
| Over servicing clients |
13%
|
22
|
| Total Respondents: 172 | ||
Source: PR News/Counselors Academy