• About Us
  • Privacy Policy
  • Contact Us
  • Advertise With Us
  • Home
Metrowatchonline
Sunday, May 25, 2025
  • Home
  • News
  • Security
  • World
No Result
View All Result
  • Home
  • News
  • Security
  • World
No Result
View All Result
Metrowatchonline
No Result
View All Result
Home Highlights

‘How Sales, Finance, and Marketing Rescue PR from the ROI Dilemma’

A fundamental mistake many PR practitioners make is attempting to justify PR’s success using ROI without understanding the financial principles behind it.

Emmanuel Babs by Emmanuel Babs
February 11, 2025
in Highlights, Opinion, Top News
0
‘How Sales, Finance, and Marketing Rescue PR from the ROI Dilemma’

Over the years, the conversation around PR measurement has evolved, yet one persistent challenge remains — how to prove the financial return on investment (ROI) of public relations efforts. I have shared my thoughts on this topic across multiple LinkedIn posts, and I felt compelled to provide a structured education on the subject. Measurement education is a core pillar of AMEC Measurement and Evaluation , and as a strong advocate for data-driven PR, I believe it is crucial to guide PR professionals through this recurring challenge. The reality is simple: If sales are not part of your key performance indicators (KPIs), then Return on Objective (ROO) should be your holy grail, not ROI. However, for PR campaigns where sales are indeed a primary goal, PR professionals cannot work in isolation — they need to engage with the “three wise men”: Sales, Finance, and Marketing.

A fundamental mistake many PR practitioners make is attempting to justify PR’s success using ROI without understanding the financial principles behind it. ROI, in its true form, is a financial metric that calculates the profitability of an investment using the formula: ROI (%) = (Net Profit / Cost of Investment) x 100. For PR professionals aiming to showcase ROI, collaboration with the Finance team is essential to align media metrics with revenue generation. However, in most cases, PR is not a direct sales function, which means using ROI as a blanket metric leads to misinterpretation and misplaced expectations. This is why AMEC’s Barcelona Principles (which emphasize outcome-based measurement over outdated methods) encourage PR professionals to focus on measurable objectives rather than vanity metrics like Advertising Value Equivalency (AVE). For those unfamiliar with these principles, I strongly recommend exploring them as a foundation for modern PR measurement.

One of the most misleading approaches in PR measurement is relying on AVE to demonstrate ROI. To put this into perspective, AVE in PR is like measuring the quality of a meal based solely on the price of its ingredients. Just because a dish contains expensive components does not mean it tastes good or satisfies the customer. Similarly, AVE assigns a monetary value to media coverage based on ad rates but fails to measure the true impact, sentiment, or effectiveness of PR efforts. If a PR professional presents AVE as ROI, they are essentially equating visibility with tangible business outcomes, which is a flawed and outdated perspective. The goal should always be to measure what matters — impact, sentiment, engagement, and business outcomes — rather than placing a fictitious monetary value on earned media.

As a PR measurement specialist with over a decade of experience, I have consistently advocated for the prioritization of ROO over ROI for PR campaigns that do not have direct sales objectives. PR’s role is often about shaping perception, building credibility, and enhancing reputation — elements that do not always have an immediate or direct financial impact. ROO provides a structured framework for evaluating PR performance based on predefined, measurable objectives. By aligning PR efforts with specific business goals — whether it be increasing brand awareness, driving website traffic, improving customer sentiment, or strengthening stakeholder relationships — PR professionals can provide meaningful insights without force-fitting sales metrics where they do not belong.

ALSO READ...

NSIB Probes Ilorin Aircraft Crash-landing, Recovers Data Card

NNPC Ltd Shuts Down Port Harcourt Refinery

For PR to demonstrate true ROI when necessary, it must integrate seamlessly with Sales, Finance, and Marketing. Without correlating PR metrics with their data, PR teams cannot accurately tell the story of their contribution to revenue generation. Marketing provides valuable insights into lead generation, Sales tracks conversions, and Finance ensures financial accountability. When these three functions work together, PR professionals can move beyond justifying their efforts with media impressions and start proving their impact in terms of business growth. This is why aligning client or executive expectations from the onset is critical. By setting realistic measurement parameters, PR professionals can avoid the trap of being asked to prove ROI on campaigns that were never designed to drive direct sales in the first place.

The path to effectivePR measurement is rooted in education, collaboration, and the right frameworks. We must continue advocating for methodologies that reflect PR’s strategic value — beyond press clippings, beyond AVEs, and certainly beyond misaligned expectations. Measurement is not about justifying PR’s existence; it is about demonstrating PR’s impact with the right metrics that align with business goals. As PR professionals, our focus should always be on setting SMART (Specific, Measurable, Achievable, Relevant, and Time-bound) objectives that align with organizational priorities. This way, measurement becomes a tool for strategy rather than just a reporting mechanism.

As we move forward, I encourage PRprofessionals to embrace continuous learning, engage in industry conversations, and challenge outdated measurement methods. PR measurement is not static — it evolves with trends, technology, and business needs. Let us elevate our practice by ensuring that measurement is not an afterthought but an integral part of our communication strategy from the start.

Would love to hear others’ thoughtson this!

Philip Odiakose is a leader and advocate of PR measurement, evaluation and media monitoring in Nigeria. He is also the Chief Media Analyst at P+ Measurement Services, a member of AMEC, NIPR, AMEC Lab Initiative and AMCRON

Tags: Philip OdiakosePRSales
Previous Post

2027: Caution Your Tribesmen or Lose Like Jonathan — El-Rufai tells Tinubu

Next Post

Senate’s Report on N54.2trn 2025 National Budget Ready This Week, Says Akpabio

Emmanuel Babs

Emmanuel Babs

Related Posts

INSIGHT | Nigerian Media: Key Players, Specialities and Need for Association, By Philip Odiakose | METROWATCH

Crippling Absence of Audit Bureau of Circulations in Nigeria: A Setback for Media Professionals, By Philip Odiakose | METROWATCH

July 16, 2024
INSIGHT | Nigerian Media: Key Players, Specialities and Need for Association, By Philip Odiakose | METROWATCH

INSIGHT | Nigerian Media: Key Players, Specialities and Need for Association, By Philip Odiakose | METROWATCH

June 13, 2024
P+ Measurement Services Announces 7th Consecutive Hosting of AMEC Measurement Month | METROWATCH

P+ Measurement Services Announces 7th Consecutive Hosting of AMEC Measurement Month | METROWATCH

November 20, 2023
Next Post
Godswill Akpabio

Senate’s Report on N54.2trn 2025 National Budget Ready This Week, Says Akpabio

  • About Us
  • Privacy Policy
  • Contact Us
  • Advertise With Us
  • Home

© 2024 Metrowatch Online Published by Miraculous Media Connect Limited. All rights reserved

No Result
View All Result
  • Home
  • News
  • Security
  • World

© 2024 Metrowatch Online Published by Miraculous Media Connect Limited. All rights reserved

Go to mobile version