Comments on: Giving Method to our Madness… More on Media Relations Measurement http://blogs.hillandknowlton.com/brendanhodgson/2006/06/02/giving-method-to-our-madness-more-on-media-relations-measurement/ At the intersection of yesterday & tomorrow Mon, 20 Jan 2014 15:48:33 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Brendan Hodgson http://blogs.hillandknowlton.com/brendanhodgson/2006/06/02/giving-method-to-our-madness-more-on-media-relations-measurement/comment-page-1/#comment-465 Brendan Hodgson Fri, 02 Jun 2006 16:42:03 +0000 http://blogs2.hillandknowlton.com/brendanhodgson/3301.aspx#comment-465 David, that's an interesting concept, and one I had not considered. To that point, however, how does one go about putting a value on that asset, and how does one measure either appreciation and depreciation of that asset? <br> <br>Furthermore, would it not make more sense to value that asset agains overall reputation vs just media? Or do you feel there are multiple assets at play, each with its own value? <br> <br>Heresy though this statement may be, I don't believe that media coverage is as significant determinant of share price (other than in times of crisis)as I think you're suggesting...   <br> <br>And to your PS - Like you, I'm certainly no fan of AVEs, so share your concern. David, that’s an interesting concept, and one I had not considered. To that point, however, how does one go about putting a value on that asset, and how does one measure either appreciation and depreciation of that asset?

Furthermore, would it not make more sense to value that asset agains overall reputation vs just media? Or do you feel there are multiple assets at play, each with its own value?

Heresy though this statement may be, I don’t believe that media coverage is as significant determinant of share price (other than in times of crisis)as I think you’re suggesting…  

And to your PS – Like you, I’m certainly no fan of AVEs, so share your concern.

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By: David Phillips http://blogs.hillandknowlton.com/brendanhodgson/2006/06/02/giving-method-to-our-madness-more-on-media-relations-measurement/comment-page-1/#comment-464 David Phillips Fri, 02 Jun 2006 16:21:23 +0000 http://blogs2.hillandknowlton.com/brendanhodgson/3301.aspx#comment-464 Brendan, If we imagine that a media legacy is an asset, it might be thought that media relations is a service that maintains this (intangible) asset, a balance sheet item. <br> <br>If this is so, then what we really seek is evidence of return on assets deployed (not ROI). <br> <br>This takes some press relations activity out of P&L and puts it on the ballance sheet. <br> <br>Imagine the effect on your clients if they did not get coverage. Their share price would drop. <br> <br>Is PR really a balance sheet matter? <br> <br>PS - How do you count the column centimetres that go towards the AVE measure? Not all stories are a full page placement. In any event, I see the model in the paper and the ROI is not discounted. If these awful practices are to be continued and strange sums are to afflict PR people, they might as well put them onto proper accounting context. Brendan, If we imagine that a media legacy is an asset, it might be thought that media relations is a service that maintains this (intangible) asset, a balance sheet item.

If this is so, then what we really seek is evidence of return on assets deployed (not ROI).

This takes some press relations activity out of P&L and puts it on the ballance sheet.

Imagine the effect on your clients if they did not get coverage. Their share price would drop.

Is PR really a balance sheet matter?

PS – How do you count the column centimetres that go towards the AVE measure? Not all stories are a full page placement. In any event, I see the model in the paper and the ROI is not discounted. If these awful practices are to be continued and strange sums are to afflict PR people, they might as well put them onto proper accounting context.

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