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Advertising Value Equivalency Is Going Out Of Style

advertising value equivalency

Advertising value equivalency (AVE) may have been the standard for measuring PR campaign success in years past, but times are changing. Businesses and PR pros alike recognize that AVE is inadequate when it comes to accurately gauging performance, so what's next? We’ll examine why this well-worn metric has fallen out of favor and explore some more precision-based alternatives businesses can use going forward!

What is Advertising Value Equivalency (AVE)?

AVE is an innovative way to measure the monetary worth of a company's earned media coverage. Instead of traditional, expensive advertising fees and services, it allows businesses to calculate how much their press or other appearances would cost if they were advertisements—like getting $5,000 in marketing for free!

Why is AVE Going Out of Style?

PR professionals who have relied on AVE for decades might find it difficult to grapple with the fact that this metric is slipping out of relevance in our rapidly digitalizing world. With limitations becoming all too apparent, marketers are finding other ways to evaluate their campaigns' success and progress.

  1. It’s Not Accurate - AVE may not be the perfect metric when it comes to gauging earned media coverage, as it doesn't account for its inherent advantages over paid advertising. Because people view earned media more favorably and trust it more than ads, this method of promotion is often far more valuable than conventional advertising.
  2. It’s Outdated - As the world has embraced digital media, AVE remains rooted in a bygone era where print reigned supreme. With its blind eye to social media, blogs, and podcasts—crucial components of today's online presence—it is clear that this long-established metric can no longer provide an accurate reflection of earned coverage for businesses.
  3. It’s Arbitrary - AVE is an ineffective metric for gauging the success of earned media, as it overlooks key details such as audience size and quality of coverage. Ignoring these important factors can vastly overestimate or underestimate true reach and influence, making this measurement inaccurate at best.
  4. It’s Misleading - Measuring the value of earned media isn't a straightforward task; AVE (Advertising Value Equivalency) suggests it can be done with one neat number, but that's not always true. That figure depends on things like what outlet covers you, who reads or sees your story, and how much impact it has in terms of influencing readers or customers. All these variables make assigning a monetary value to PR coverage tough!

going out of style

Alternatives to AVE

There are several alternatives to AVE that businesses can use to measure the value of their PR campaigns. Here are a few examples:

  1. Reach and Engagement Metrics - Measuring the true impact of media coverage has always been a challenge, but reach and engagement metrics provide a reliable solution. By accounting for impressions, clicks, shares, and likes rather than simply relying on AVEs, these measurements offer an accurate snapshot into the effectiveness of particular press pieces.
  2. Sentiment Analysis - Companies can use sentiment analysis to gauge the public opinion of their brand, track how it is being portrayed in media outlets, and measure the success of reputation management strategies. By understanding the sentiments surrounding a company's image, businesses have valuable insight into its overall standing with customers and potential future growth opportunities.
  3. Brand Awareness and Perception - PR campaigns can be accurately evaluated to determine the success of their impact by measuring brand awareness and perception metrics. These measures, such as recall, recognition, and sentiment, provide an insightful look into how customers perceive a brand after seeing promotional materials—far more revealing than traditional AVEs. Knowing this information gives companies invaluable knowledge on what resonates with audiences when crafting future strategies.

Conclusion

As digital channels have quickly become a primary source of communication for businesses, it is time to move away from outdated analytics like AVE. PR professionals should use more accurate metrics such as reach and engagement rates, sentiment analysis, or brand awareness and perception measurements to get an insight into the success of their campaigns. By doing this, they can better understand how effective their strategies are at reaching their intended audiences—unlocking powerful insights that will help shape future campaigns.

going out of style advertising value equivalency

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