How to Measure the ROI of Earned Media

So you’ve invested time and effort into earning media coverage for your business, but how do you know if it’s actually paying off? In this article, we’ll explore the elusive concept of measuring the return on investment (ROI) of earned media. Discover the key metrics and strategies you can use to determine the impact and effectiveness of your earned media efforts. With these insights, you’ll be able to make data-driven decisions and optimize your marketing strategies for maximum results.

1. Definition of Earned Media

1.1 What is earned media?

Earned media refers to the exposure and coverage that a brand receives through word-of-mouth, public relations efforts, social media shares, online reviews, and other organic means. Unlike paid or owned media, earned media is not directly controlled or created by the brand itself. It is the result of positive interactions and interactions between the brand and its audience.

1.2 Types of earned media

There are various types of earned media that brands can benefit from. Some common examples include:

• Media mentions: When a brand is featured or mentioned in news articles, blogs, or podcasts.
• Social media mentions: When users share, comment, or tag a brand’s social media posts.
• Influencer endorsements: When influential individuals or personalities promote or recommend a brand’s products or services.
• Online reviews: When customers share their opinions and experiences with a brand on review platforms or forums.
• User-generated content: When customers create and share their own content featuring a brand, such as photos or videos.

1.3 Importance of measuring earned media ROI

Measuring the return on investment (ROI) of earned media is crucial for several reasons. Firstly, it allows brands to understand the value and impact of their earned media efforts. By quantifying the results and outcomes, brands can assess whether their strategies are effective and worth the resources allocated to them.

Secondly, measuring earned media ROI helps businesses allocate their marketing budget more efficiently. By identifying which channels or tactics generate the highest returns, brands can optimize their marketing spend and focus on activities that yield the greatest results.

Lastly, measuring earned media ROI can provide valuable insights into customer sentiment and behavior. By analyzing the metrics and data, brands can gain a deeper understanding of how their audience perceives their brand, what content resonates with them, and how they interact with the brand across different touchpoints.

2. Key Metrics for Measuring Earned Media ROI

2.1 Impressions

Impressions refer to the number of times a piece of content, such as a social media post or an article, is seen by an audience. It provides a measure of the potential reach and exposure of the brand’s message. While impressions alone do not indicate engagement or impact, they serve as a foundational metric for understanding the scale of a brand’s earned media efforts.

2.2 Reach

Similar to impressions, reach measures the size of the audience that was exposed to a brand’s content or message. However, reach focuses on unique individuals rather than the total number of views. It helps brands understand the breadth and diversity of their audience and evaluate the effectiveness of their targeting strategies.

2.3 Engagement

Engagement metrics measure how actively and deeply an audience interacts with a brand’s content. This can include actions such as likes, comments, shares, retweets, and clicks. By tracking engagement, brands can gauge the level of interest and involvement their content elicits from their audience. High engagement often indicates that the content is resonating and generating positive sentiment.

2.4 Brand mentions

Brand mentions quantify the number of times a brand is mentioned or referenced in various forms of earned media, such as news articles, social media conversations, or influencer content. By monitoring brand mentions, brands can assess the overall visibility and awareness of their brand in the public sphere. It also allows them to identify potential opportunities for collaboration or partnership with influencers or media outlets.

2.5 Social media shares

Social media shares track the number of times a brand’s content is shared and distributed by users on social media platforms. This metric highlights the reach and amplification of a brand’s message beyond its own social media channels. High social media shares indicate that the content has resonated with the audience and has the potential to go viral or reach a wider audience.

2.6 Website traffic

Website traffic measures the number of visitors and the level of engagement on a brand’s website that can be attributed to earned media efforts. By analyzing website traffic, brands can identify the effectiveness of their earned media in driving traffic and generating interest in their products or services. This metric is particularly important for assessing the impact of PR efforts or media coverage on website performance.

2.7 Conversion rate

The conversion rate measures the percentage of website visitors or users who take a desired action, such as making a purchase, signing up for a newsletter, or requesting more information. It provides insights into the effectiveness of the brand’s website and the impact of earned media in driving conversions. By tracking conversion rates, brands can assess the overall return on investment for their earned media efforts.

2.8 Sales attribution

Sales attribution measures the extent to which earned media activities contribute to actual sales and revenue. It involves tracking and analyzing the customer journey from initial exposure to a brand’s content to the final purchase. By attributing sales to specific earned media activities, brands can understand the direct impact on their bottom line and make informed decisions about resource allocation and investment.

2.9 Cost per acquisition (CPA)

Cost per acquisition (CPA) calculates the cost of acquiring a new customer through earned media efforts. It involves dividing the total expenses associated with earning media by the number of new customers acquired. By measuring CPA, brands can determine the efficiency and cost-effectiveness of their earned media strategies and compare them against other marketing channels.

2.10 Return on investment (ROI)

Return on investment (ROI) measures the overall profitability and effectiveness of earned media efforts. It is calculated by subtracting the cost of investment from the revenue generated and dividing it by the cost of investment. ROI provides a comprehensive view of how earned media activities contribute to the overall business goals and financial performance of a brand.

3. Setting Objectives and Goals

3.1 Identifying objectives

When measuring earned media ROI, it is essential to establish clear objectives that align with the brand’s overall marketing and business goals. Objectives can vary depending on factors such as brand awareness, audience engagement, lead generation, or sales growth. Some common objectives for measuring earned media ROI include:

• Increasing brand visibility and awareness
• Generating positive sentiment and brand perception
• Driving website traffic and user engagement
• Increasing lead generation and conversion rates
• Improving customer retention and loyalty

3.2 Aligning objectives with business goals

To ensure that earned media efforts are strategically aligned with the overall business goals, it is crucial to identify how specific objectives contribute to the broader objectives of the brand. For example, increasing brand visibility and awareness can be linked to the goal of expanding the customer base or entering new markets. Similarly, improving customer retention and loyalty can contribute to the goal of maximizing customer lifetime value.

By aligning objectives with business goals, brands can prioritize their measurement efforts and allocate resources effectively.

3.3 SMART goal setting

To set meaningful and actionable objectives for measuring earned media ROI, it is recommended to follow the SMART goal-setting framework:

• Specific: Objectives should be clear and specific, addressing the who, what, when, where, and why.
• Measurable: Objectives should be quantifiable and measurable to track progress and assess success.
• Achievable: Objectives should be realistic and attainable within the available resources and timeframe.
• Relevant: Objectives should be aligned with the purpose and priorities of the brand.
• Time-bound: Objectives should have a specific timeframe or deadline for achievement.

By setting SMART goals, brands can ensure that their measurement efforts are focused, meaningful, and provide actionable insights.

4. Defining KPIs

4.1 Choosing the right KPIs

When measuring earned media ROI, it is crucial to choose key performance indicators (KPIs) that directly align with the objectives and goals established. The right KPIs will capture the relevant data and insights necessary for evaluating the success of earned media activities. Some common KPIs for measuring earned media ROI include:

• Impressions: to measure the potential reach and exposure of earned media efforts.
• Engagement rate: to assess the level of audience interaction and involvement.
• Traffic sources: to track the contribution of earned media in driving website traffic.
• Conversion rate: to measure the effectiveness of earned media in driving conversions.
• Revenue attribution: to determine the direct impact of earned media on sales and revenue.

By selecting the right KPIs, brands can track and evaluate the specific metrics that are most relevant to their objectives and goals.

4.2 KPIs for different stages of the customer journey

The customer journey consists of various stages, from initial awareness to final purchase and beyond. When measuring earned media ROI, it is important to consider the different touchpoints and metrics that are relevant to each stage of the customer journey.

• Awareness stage: Metrics such as impressions, reach, and social media mentions are key indicators of the brand’s visibility and awareness among the target audience.
• Consideration stage: Metrics such as website traffic, engagement rate, and brand mentions provide insights into the level of interest and consideration among potential customers.
• Decision stage: Metrics such as conversion rate, sales attribution, and ROI are essential for evaluating the impact of earned media on the final purchase decision.

By tracking KPIs at each stage of the customer journey, brands can gain a holistic understanding of how earned media influences customer behavior and decision-making.

4.3 Tracking KPIs

To effectively measure earned media ROI, it is essential to establish a robust tracking system that captures the relevant data and metrics. This can be achieved through a combination of tools and methods, including:

• Media monitoring and sentiment analysis tools: These tools help track brand mentions and sentiment across various media channels, such as news articles, social media platforms, and online forums.
• Social media analytics tools: Platforms like Facebook Insights, Twitter Analytics, and Instagram Insights provide valuable data on audience engagement, reach, and social media shares.
• Web analytics tools: Tools like Google Analytics enable tracking of website traffic, referral sources, and user behavior, providing insights into the impact of earned media on website performance.
• CRM and sales attribution tools: Customer relationship management (CRM) systems integrated with sales attribution tools can track and attribute sales to specific earned media activities.
• Surveys and customer feedback: Conducting surveys and collecting customer feedback can provide qualitative insights into brand perception and sentiment.
• Case studies and A/B testing: Analyzing case studies, conducting A/B testing, and experimenting with different strategies can provide valuable insights into the effectiveness of earned media activities.

By utilizing a combination of tools and methods, brands can gather data from multiple sources and ensure comprehensive measurement of earned media ROI.

5. Tools and Methods for Measurement

5.1 Media monitoring and sentiment analysis

Media monitoring and sentiment analysis tools are essential for tracking and analyzing earned media coverage. These tools help brands monitor brand mentions, sentiment, and trends across various media channels, including traditional news outlets, online publications, blogs, and social media platforms. By monitoring media mentions and sentiment, brands can assess the overall visibility and perception of their brand in the public sphere.

5.2 Social media analytics tools

Social media analytics tools provide valuable data and insights into audience engagement, reach, and social media shares. These platforms allow brands to track metrics such as likes, comments, shares, retweets, and click-through rates. By analyzing social media metrics, brands can assess the effectiveness of their earned media efforts on different platforms and optimize their social media strategies accordingly.

5.3 Web analytics tools

Web analytics tools, such as Google Analytics, offer comprehensive data on website traffic, referral sources, user behavior, and conversions. By tracking website metrics, brands can understand the impact of earned media on website performance, such as the number of visits, time spent on the site, and the conversion rate of visitors. Web analytics tools also provide insights into the specific landing pages or content that drive the most traffic and conversions.

5.4 CRM and sales attribution tools

Customer relationship management (CRM) systems integrated with sales attribution tools enable brands to track and attribute sales to specific earned media activities. These tools help brands understand how earned media efforts contribute to revenue generation and customer acquisition. By linking earned media activities to customer data and purchase behavior, brands can gain a deeper understanding of the customer journey and the role of earned media in driving sales.

5.5 Surveys and customer feedback

In addition to quantitative metrics, surveys and customer feedback provide valuable qualitative insights into brand perception and sentiment. Brands can conduct surveys to gather feedback from customers about their awareness of the brand, their perception of the brand, and their experiences with earned media content. Surveys and customer feedback can also help identify areas for improvement and optimize earned media strategies based on the insights gained.

5.6 Case studies and A/B testing

Case studies and A/B testing allow brands to experiment with different earned media strategies and measure their impact. By analyzing case studies from other brands or conducting their own A/B tests, brands can identify best practices and optimize their earned media approaches. These methods provide real-world examples and actionable insights into what works and what doesn’t in terms of measuring earned media ROI.

6. Data Collection and Analysis

6.1 Collecting relevant data

To measure earned media ROI effectively, it is crucial to collect and analyze relevant data from various sources. This includes data from media monitoring tools, social media analytics platforms, web analytics tools, CRM systems, surveys, and customer feedback. By collecting data from multiple sources, brands can ensure comprehensive coverage and a holistic view of their earned media efforts.

6.2 Analyzing data for insights

Once the data is collected, it is important to analyze it for actionable insights. This involves identifying patterns, trends, and correlations in the data to uncover meaningful findings. Data analysis techniques can vary depending on the type of data and the objectives of the measurement. Analyzing data from media monitoring tools may involve tracking sentiment and identifying key themes or topics of discussion. Web analytics data can be analyzed to understand website traffic patterns, user behavior, and conversion rates. By analyzing the data, brands can gain insights into the effectiveness of their earned media strategies and make data-driven decisions.

6.3 Applying statistical techniques

In addition to basic data analysis, statistical techniques can be applied to measure the statistical significance and correlation between different variables. This can help validate findings and provide more accurate insights. Statistical techniques can include regression analysis, correlation analysis, and significance testing. By applying statistical techniques, brands can ensure that the insights gained from data analysis are reliable and robust.

6.4 Benchmarking and comparing results

Benchmarking refers to comparing the performance and results of earned media efforts against industry standards or competitors. By benchmarking, brands can understand how they measure up and identify areas for improvement. Benchmarking can involve comparing metrics such as impressions, engagement rates, conversion rates, and ROI. By comparing results, brands can identify strengths and weaknesses in their earned media strategies and make data-driven decisions to optimize their ROI.

7. Attribution Models

7.1 First-touch attribution

First-touch attribution assigns full credit for a conversion or sale to the first touchpoint or interaction that a customer has with a brand. In the context of earned media, this means that the initial exposure to a brand’s content or message is considered the most significant in driving the conversion. First-touch attribution is often used to understand the impact of awareness and brand visibility.

7.2 Last-touch attribution

Last-touch attribution attributes full credit for a conversion or sale to the last touchpoint or interaction that a customer has with a brand. In the context of earned media, this means that the final interaction before the conversion is considered the most influential. Last-touch attribution is often used to measure the impact of customer decision-making and the role of earned media in driving the final purchase.

7.3 Multi-touch attribution

Multi-touch attribution takes into account all touchpoints and interactions that a customer has with a brand throughout the entire customer journey. It recognizes that multiple touchpoints contribute to the decision-making process and assigns credit accordingly. Multi-touch attribution provides a more holistic view of the impact of earned media on the customer journey and allows brands to understand the cumulative effect of different touchpoints.

7.4 Custom attribution models

Custom attribution models are tailored to the specific needs and objectives of a brand. They can involve a combination of different attribution models or create entirely new models based on unique factors and considerations. Custom attribution models allow brands to allocate credit to different touchpoints based on their specific marketing strategies, customer behavior, and industry dynamics. By developing custom attribution models, brands can gain a highly personalized understanding of how earned media contributes to their ROI.

8. Calculating Earned Media ROI

8.1 Determining value of earned media

To calculate earned media ROI, it is important to determine the value associated with earned media activities. This can be challenging as earned media often does not involve direct costs or payment. However, various methods can be used to estimate the value of earned media, including:

• Advertising Equivalent Value (AEV): This method equates earned media coverage with the cost of purchasing equivalent advertising space or placement.
• Audience Value Equivalency (AVE): AVE assigns a monetary value to earned media based on the potential reach and exposure to a target audience.
• Social Media Equivalents (SME): SME calculates the cost of generating similar reach and engagement on social media through paid advertising.

By estimating the value of earned media, brands can quantify the return on investment and evaluate the effectiveness of their strategies.

8.2 Calculating ROI

Once the value of earned media is determined, ROI can be calculated by dividing the net profit generated by the earned media activities by the cost of investment and multiplying it by 100 to express it as a percentage. The formula for calculating ROI is:

ROI = ((Net Profit – Cost of Investment) / Cost of Investment) * 100

Net Profit can be derived by subtracting the cost associated with earned media activities from the revenue generated as a result of those activities.

For example, if a brand invested $10,000 in earned media activities and generated $50,000 in revenue, the net profit would be $40,000. Using the formula mentioned above, the ROI would be calculated as:

ROI = (($40,000 – $10,000) / $10,000) * 100 = 300%

8.3 ROI benchmarks

Benchmarking is a valuable practice for understanding the relative performance of earned media efforts. ROI benchmarks can be established by comparing the ROI of a brand against industry standards or competitors. This allows brands to identify areas for improvement and set appropriate targets for their earned media ROI. Benchmarking can take into account factors such as industry norms, target market, and marketing spend to ensure accurate and relevant comparisons.

9. Optimizing Earned Media ROI

9.1 Identifying areas for improvement

To optimize earned media ROI, it is important to identify areas for improvement and make data-driven decisions. By analyzing the data collected and measuring the relevant KPIs, brands can identify any gaps or weaknesses in their earned media strategies. This can include areas such as low engagement rates, inadequate brand mentions, or suboptimal conversion rates. By identifying these areas, brands can focus on implementing strategies and tactics that can maximize their ROI.

9.2 Experimenting with different strategies

To continually improve earned media ROI, brands should not be afraid to experiment and try new strategies. A/B testing and experimentation can help identify what resonates best with the target audience and what generates the highest ROI. By testing different messaging, channels, and tactics, brands can refine their strategies and optimize their earned media efforts for better results.

9.3 Continuous monitoring and adjustment

Earned media ROI measurement should be an ongoing process. It is important for brands to continuously monitor the relevant KPIs, track the performance of their earned media activities, and make adjustments based on the insights gained. By regularly reviewing and analyzing data, brands can ensure that their earned media strategies remain effective and aligned with their objectives and goals. Continuous monitoring also allows brands to spot any emerging trends, challenges, or opportunities that may require timely adjustments.

10. Case Studies and Best Practices

10.1 Real-world examples of successful earned media ROI measurement

Numerous brands have successfully measured and optimized their earned media ROI. For example, a clothing retailer implemented a media monitoring tool to track brand mentions and sentiment across social media platforms. By analyzing the data, the retailer identified specific influencers with a high engagement rate and collaborated with them to create sponsored content. This resulted in increased social media shares, website traffic, and ultimately, a significant boost in sales attributed to the earned media efforts.

Another example is a software company that used web analytics tools to track website traffic and conversion rates. By monitoring these metrics, the company identified that a specific blog post generated a high number of website visits and conversions. This insight led the company to invest in more similar content and channels, resulting in increased brand visibility, lead generation, and ultimately, improved ROI.

10.2 Lessons learned and best practices

Based on successful cases and industry experience, there are several key lessons and best practices for measuring earned media ROI:

1. Establish clear objectives: Clearly define the objectives and goals of earned media efforts to ensure measurement activities are aligned with the brand’s overall strategy.
2. Choose relevant KPIs: Select KPIs that directly reflect the objectives and provide meaningful insights into the effectiveness of earned media.
3. Use a combination of tools: Utilize a combination of media monitoring tools, social media analytics platforms, web analytics tools, and other relevant tools to gather comprehensive data for measurement.
4. Analyze data for actionable insights: Analyze data to identify patterns and correlations, validate findings with statistical techniques, and extract actionable insights that can inform decision-making.
5. Benchmark and compare results: Compare earned media performance against industry benchmarks or competitors to identify areas for improvement and set realistic targets.
6. Continuously monitor and adjust: Regularly review and analyze the performance of earned media efforts, make adjustments based on insights gained, and embrace experimentation to optimize ROI.
7. Learn from case studies and best practices: Study real-world examples and best practices to gain inspiration and practical insights for measuring and optimizing earned media ROI.

10.3 Industry-specific considerations

While the general principles of measuring earned media ROI apply across industries, it is important to consider specific factors and dynamics within each industry. For example, the metrics and KPIs relevant to a retail brand may differ from those relevant to a tech company. Similarly, the value and impact of earned media activities may vary depending on the target audience and market. By taking industry-specific considerations into account, brands can tailor their measurement approach to effectively evaluate earned media ROI in their specific context.

In conclusion, measuring earned media ROI is essential for understanding the value and impact of organic brand exposure. By defining objectives, selecting the right metrics, and utilizing tools and methods, brands can effectively measure and optimize the ROI of their earned media efforts. Through continuous monitoring, analysis, and adjustment, brands can drive better results and align their earned media strategies with their overall business goals.