Earned Media Value is a way to measure the worth of publicity generated through unpaid channels, such as social media, news articles, and industry blogs. To calculate this value accurately, one must consider four key entities: Impressions, Engagement, Advertising Equivalency, and Media Outlet Prestige. Impressions refer to the number of individuals reached by the content, while Engagement measures the level of interaction with it, such as shares and comments. Advertising Equivalency compares the reach of earned media to the potential reach of paid advertising, and Media Outlet Prestige assesses the credibility and influence of the platform where the content appears.
Calculating Earned Media Value
Earned media value (EMV) is a metric used to measure the value of publicity or word-of-mouth marketing. It’s calculated by multiplying the number of people who have seen your message by the amount of money it would have cost to reach the same audience through paid advertising.
Formula
The formula for EMV is:
EMV = Number of people reached * Cost per thousand (CPM)
Number of people reached: This is the number of people who have seen your message. It can be difficult to measure precisely, but there are a few methods you can use, such as:
- Website traffic: If you’re promoting your message through your website, you can track the number of people who have visited your site.
- Social media engagement: If you’re promoting your message through social media, you can track the number of people who have liked, shared, or commented on your post.
- Media mentions: If your message is mentioned in the media, you can track the number of people who have read or seen the article or broadcast.
Cost per thousand (CPM): This is the amount of money it would cost to reach 1,000 people with your message through paid advertising. You can find CPM rates for different types of advertising from websites like AdAge and MediaPost.
Example
Let’s say you have a blog post that gets 10,000 views. The CPM for blog advertising is $20. So, the EMV of your blog post would be:
EMV = 10,000 * $20 = $200,000
Benefits of Calculating EMV
Calculating EMV can help you:
- Measure the impact of your marketing efforts: EMV can help you track the return on investment of your marketing campaigns.
- Compare the effectiveness of different marketing channels: EMV can help you compare the effectiveness of different marketing channels, such as social media, email marketing, and paid advertising.
- Identify and target your most valuable audience: EMV can help you identify and target your most valuable audience, based on their demographics, interests, and behavior.
Limitations of EMV
EMV is not a perfect metric. It has a few limitations, including:
- It can be difficult to measure the number of people reached. This is especially true for offline marketing efforts.
- It doesn’t take into account the quality of the audience. EMV simply measures the number of people reached, not the quality of the audience.
- It doesn’t take into account the impact of the message. EMV only measures the reach of your message, not the impact it has on your audience.
Despite these limitations, EMV can be a useful metric for measuring the value of your marketing efforts. By understanding the limitations of EMV, you can use it wisely to track the success of your marketing campaigns.
Question 1:
What is the formula for calculating earned media value (EMV)?
Answer:
EMV = [(Potential Impressions of Coverage) x (Cost per Impression)]
Question 2:
How do you determine the potential reach of earned media coverage?
Answer:
Potential Reach = (Total Audience of Media Outlets) x (Percentage of Audience Exposed to Coverage)
Question 3:
What are some factors that influence the cost per impression (CPM) for earned media coverage?
Answer:
CPM = (Cost of the Coverage) / (Number of Impressions Generated)
Factors that influence CPM:
– Prestige of the media outlet
– Size of the audience
– Placement of the coverage
– Industry or niche of the coverage
Well, there you have it, folks! Now you’re armed with the knowledge to calculate your earned media value like a pro. Remember, it’s not an exact science, but it’s a valuable tool to gauge the impact of your PR efforts. Thanks for reading! If you have any more questions or want to dive deeper into the world of media measurement, feel free to swing by again later. Cheers!