A new era of PR metrics
Not too long ago, PR reporting was a straightforward affair. Success was measured simply by the amount of media coverage generated and the total circulation of those publications, often with little regard for the actual impact on business outcomes. But today’s PR world demands more – clients want to see how this coverage translates into tangible business results.
The role of Econometrics in PR
Econometrics, a field sitting between economics and statistics, offers a way to bridge this gap. By utilising statistical and mathematical modelling, Econometrics examines the relationships between different variables over time. In a marketing context, this means understanding how PR activities correlate with changes in key business metrics like sales or web traffic.
Marketing mix modelling, a popular Econometric technique, allows PR professionals to analyse how various marketing activities, including PR, contribute to desired outcomes. This approach considers external factors including economic shifts, as well as internal factors such as pricing strategies, to provide a comprehensive view of what drives business success.
Jamie Crane, Organic Media Lead at Jaywing said: “Proving PR’s commercial value is becoming increasingly important as our client discussions now regularly involve stakeholders who control the marketing purse strings. With budgets tighter than ever, Econometrics gives us clear justification for marketing spend, with PR finally able to demonstrate a financial return on investment.”
Transformative insights
The integration of Econometric tools into PR reporting has revolutionised how the industry measures success. By moving beyond vanity metrics, PR teams can now demonstrate the real value they bring to clients.
An Econometrics approach to PR reporting allows teams to showcase the number of online sessions generated as a result of media coverage. By combining this figure with the average conversion rate and order value, PR teams can estimate how much their activity has earnt for their clients.
This shift not only validates the work of PR teams but also strengthens their position in budget discussions. By proving their impact on sales and revenue, PR professionals can more effectively advocate for their role in the overall marketing strategy.
Continuous improvement
As Econometric models become more sophisticated, the potential for PR reporting continues to expand. Future advancements may include more automation and customisation, allowing for even more precise analysis of how different types of PR coverage affect business outcomes, informing future strategies. By integrating PR metrics into a broader marketing mix model, organisations can gain insights into the effectiveness of their entire marketing funnel.
Matt Triggs, Head of Analysis and Modelling at Jaywing, said: “The evolution of PR reporting through Econometrics is a significant development in being able to understand the effectiveness of this key marketing channel. It empowers PR professionals to demonstrate their strategic and commercial value and makes it easier to secure the resources needed to continue driving business success. Embracing these advanced analytics is key to our clients’ success in staying ahead of the competition.
“By utilising the power of Econometrics, PR professionals can transform their reporting, proving beyond doubt that their efforts are not just valuable, but essential to achieving business goals.”