Why AVEs are the wrong PR metrics

If you’re measuring the success of your PR activity, it may be tempting to focus on just one number: Advertising Value Equivalents (AVE). But PR impact is far more than what it would have cost to buy the same amount of advertising space, so let us explain more.

What are AVEs?
When we first started working in the PR industry over 20 years ago, AVEs were used to show clients the value of the media coverage generated. We would collate all media coverage achieved that month or quarter into a report, measure its physical size and use the publications’ advertising rate cards to calculate how much it would have cost our clients to buy that space as advertising. We would then multiply that figure by three to represent the added value of the story being told by a journalist rather than as a straightforward paid-for advert. It was a quick and dirty way to show Return on Investment (ROI) of a client’s budget and often showed how good value PR was in comparison to paid advertising.

The problem
AVEs could provide a useful indication of the potential media value generated by PR coverage but it never tells the whole story. And let’s be honest, not all business goals can be measured with quantitative metrics anyway.

AVE’s do not measure the credibility that comes from being featured in a trusted media outlet, the increased awareness of your brand, improved reputation or the influence a piece of coverage can have on potential customers and other key stakeholders.

And this is exactly what the Chartered Institute of Public Relations (CIPR) says and takes a clear stance against the use of AVEs. It states: “AVEs do not measure the value of PR or communication, outcomes, or the business results achieved through them. They don’t take account of the quality of coverage, the credibility of editorial compared with advertising, or the negative as well as positive effects of PR.”

The solution
Effective PR reporting should always look at the bigger picture and there are lots of metrics you can use. This can range from the quality and relevance of the media coverage secured, audience reach, website traffic, social engagement, backlinks, share of voice, key messages and photography achieved. And where possible, enquiries or leads generated as a result of a PR campaign.

Good PR measurement should demonstrate the real business impact of PR and not simply put a price tag on column inches. Want to know how we pull together evaluation reports for our clients then drop us a line.