Is PR value a way to justify marketing spend?

Last month, MARKETING-INTERACTIVE spoke to a number of public relations professionals about the relevancy of PR value.

PR value is an age old method to measure the monetary value of media coverage secured through PR or pitched efforts. This value is tied to the "advertising equivalent" value of securing a similar piece of media coverage through paid advertisement. However, with the immense fragmentation of media today, there are different versions of PR value with organisations using different calculation methods.

While the term is well embedded in the world of communications, according to PR professionals MARKETING-INTERACTIVE spoke to, such as Abraham Christopher, head of PR and social media at Mutant Communications, any communications professional above the age of 30 will "probably shudder" when they hear the words 'PR value'. That's largely because PR value can be considered an old-school way of doing things. 

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"The archaic version is a dollar measurement of a piece of coverage based on the article's advertising value equivalent (AVE) and then multiplied by a magic number three (that no one really knows the origin of)," explained Christopher.

"This measurement led to ridiculous KPIs, such as achieving PR values in the millions of dollars from just sending out one press release. Today, PR value is measured in many different ways, but its essence remains the same: a quantifiable measure of the impact a piece, or collection, of coverage for a brand," he added. This can include a combination of factors, such as message penetration, sentiment, use of quotes and insertion of links. A dollar value equivalent, however, is not quite possible, especially with media’s transition to digital platforms and moving from news and articles to content.

Pamela Tor Das, vice president, Singapore and emerging markets at TEAM LEWIS added to his point by saying:

The thinking was that people consume media for content and not ads, thus stories and articles are of higher value.

Saying that, clients are still very much demanding that PR value be calculated.  "We would like to think that the days of measuring PR value through advertising value equivalency (AVE), which tries to put a dollar figure on earned media, is outdated. But the truth is there are still a lot of stakeholders who look for this particular number," said Patricia Malay, general manager at Bud Communications. 

"It's good though that many more want to look at a mix of metrics—media reach, sentiment, engagement, and how PR ties back to key business objectives such as awareness, reputation, and even sales," she added.  With the mixed bag of reactions PR value tends to generate, MARKETING-INTERACTIVE sat down with some industry professionals to find out more about the advantages, disadvantages and relevancy of the metric in this day and age. 

What are the benefits of calculating PR value in today's day and age?

Continuing to measure PR value is still important, said some PR professionals, because it helps agencies and clients understand the real impact of their efforts and keeps PR accountable as what we can measure, we can often manage. Clients also deal with multiple stakeholders internally that need to be convinced of what PR can actually do, how to quantify the ROI, and its ultimate impact on business goals.

"It's also important to continue reading the data and regularly measure PR performance to ensure strategic alignment. If something is working, we can intensify efforts. If it isn't, we can drop and pivot quickly," said Malay. She added that many PR consultants say that PR takes time and tracking PR value helps in just that. This may also help in justifying the spend and resources needed.

"By sharing PR results regularly, we can reinforce the role that PR plays in brand-building, strengthening credibility, and establishing trust. All of which will certainly not be achieved by paid media alone," she said.

Agreeing with Malay, Joey Gan, country lead, PRecious Communications, Malaysia said that one benefit is that it gives clients a clear, easy-to-understand number. For business leaders, it helps justify PR spending by translating coverage into a dollar value, which makes sense in budget discussions. "It’s quick, simple, and gives a sense of return on investment," she said.

No longer a cookie cutter solution

On the flip side, the fragmentation also makes the measurement of PR value outdated. Unlike paid media or digital ads where clients can directly track clicks or conversions, PR impacts areas such as brand perception, trust, and relationships, which are inherently more intangible, said Malay. Trying to put a number on these aspects things can be tricky and may not tell the full story.

"If there is an over-emphasis on the numbers, this can shift the focus away from the bigger picture. Not everything that’s valuable in PR can be easily measured, and relying solely on metrics could lead to overlooking qualitative insights like the strength of relationships or shifts in reputation," she said. 

Unfortunately, there’s also no one-size-fits-all approach to measuring PR. Different tools, platforms, or agencies might use different metrics, which makes it difficult to have consistent, industry-wide standards. This can create confusion or even doubt about the accuracy of the measurements.

"Focusing too much on metrics can lead to a pressure cooker situation where the only goal that matters is short-term, quantifiable results. PR, by nature, often requires a long-term strategy. A constant focus on measuring value could push teams toward quick wins at the expense of more meaningful, lasting outcomes," she added.

From a media analysis, Andrew Nicholls, managing director, CARMA argues that there are no benefits at all, but for some practitioners it provides a simple answer to a complex question. "In terms of media analysis there are no benefits at all, but for some practitioners it provides a simple answer to a complex question. I can understand that, but as an industry we should strive to be better," he said.

"PR Value simply doesn’t take into account the quality of the coverage, threatens credibility in reporting and distracts from metrics that can demonstrate genuine business outcomes and impact," he added. 

Is PR value a way to justify marketing spend?

Mutant's Christopher certainly argues so. "Many times, PR value is made to justify marketing spend - and this is when the whole system can fail. PR value cannot be a measure of marketing ROI, because PR simply cannot be measured in the same way we do digital buys or advertising, where output can be calculated against input," he said.

"That would be like asking to measure the amount of rizz someone had against the amount of time they spent dressing up that morning. The two are mutually exclusive," he added.

Many a times, the results are also not immediate, and it can be hard to connect the dots between campaigns and the overall success of your business. "It's like trying to measure the ocean with a teaspoon - you can get a sense of its size, but it's hard to get an exact measurement," said Ashvin Anamalai, chief executive officer, DNA Creative Communications.

A downside in making it part of the marketing spend is also that it misses the real value of PR. "PR isn’t just about how much coverage you get—it’s about shaping perception, managing reputation, and building long-term trust with your audience. These are things that can’t be fully measured by ad value," said PRecious Communications' Gan.

"When we focus only on the size of the article or its dollar equivalent, we ignore the deeper work PR does in creating meaningful connections with stakeholders," she added. Today, what matters more is how PR influences perception, strengthens reputation, and shifts public opinion. These are the real indicators of success. While PR value gives you a number, the true measure is the impact PR has on how people feel about your brand, and that’s harder to quantify but far more important.

What is PR worth really?

The worth of PR is undeniable, but can an accurate value really be placed on it? "The challenge most companies have is what PR is really worth. Those who understand it well know that all organisations live and die by the type of stories they are able to create. The true value of it is what stakeholders of the organisation think of them, and that can't really be measured in terms of media coverage alone. A good business owner understands this, and measures a good PR consultant based on their ability to create narratives that build trust with their stakeholders," said Edwin Yeo, general manager, Strategic Public Relations Group.

He adds that a good PR team's value is the narratives they are able to help the organisation build, so that they consistently increase their network of stakeholders who want to work with them, whether they are customers, partners, regulators and so on. "PR was never about sales per se, but the impact of good PR would invariably translate to an increase in customers," he added.

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