Funding for PR 2.0 to Dry Up in '07Posted by Amanda Chapel Show you the money? Forget it. Show me the ROI!
Among specific study findings:
“The era of brand-centric marketing is giving way to a new breed of CMO focused on measurable performance and business results,” said Donovan Neale-May, executive director of the CMO Council. The study concludes that the number one challenge will be to quantify and measure the value of marketing programs and investments, followed by improving efficiency and effectiveness, growing customer knowledge, and improving the ROI of expenditures. The measurability mandate can be seen clearly in the systems and solutions in which top marketers will invest in 2007. Seventy-five percent of respondents from companies with revenues of more than $500 million plan to deploy a marketing performance measurement dashboard this year, almost twice the number who will invest in the next highest category of system deployment, which is lead generation and qualification. Marketers from smaller companies said lead generation and qualification and email campaign management would be their two top areas of system or service deployment. Oh, well... looks like the PR 2.0 zealots are again relegated to their parents' basements and will just have to go Twitter with their little buddies on their own time. Bookmark This
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These figures relate to marketing, where it is absolutely reasonable to look at a link to sales - and those in PR who seek to achieve marketing goals should rightly prove return on investment in PR (which is likely to be more cost effective than some other tactics).
But, those who don't reduce PR to promotion and a subset of marketing, will realise they need to deliver return on investment in other areas. These relate to a wide range of corporate objectives - where the value of PR can be assessed against measures other than sales. These might cover internal relations, crisis management, community relations, etc etc etc.
Good try, Heather. Now explain how you plan to measure ROI on community relations, internal, crisis, etc. without hitting the client up for an expensive, phoney baloney survey done your own utterly conflicted research profit center? Admit it, your clients are on to you.
Re>Seventy-five percent of respondents from companies with revenues of more than $500 million plan to deploy a marketing performance measurement dashboard this year,<
Dashboard, eh? I don't believe 75 percent of anybody volunteered this info, and I believe the survey was cooked from the beginning. Which is not to say that PR 2.0 means anything, either. Marketirs, like the owners of this web site, would be well advised to make the type big enough to read, Once they accomplish this, evrything else about messages is easy. BAK
The ROI on marketing is known as net income - what these executives are talking about (or should be) is measuring the relative effectiveness of marketing tactics and focussing on those that prove most effective.
In my opinion, there is no such thing as PR2.0 as a practice, it is a mantra. And, PR2.0 is not Web 2.0. To see opportunistic PR people out there pushing PR2.0 services is absurd.
It is all about PR redux in a new game that unites traditional and online media and influencers. The only thing that has changed (and the reason we started to use the term PR 2.0 in the mid-to-late 90s) are the tools that we use to reach people. It forced a shift in the practice and level of expertise among those who wanted to rise above the flack label. It still comes down to knowing what you're talking about, writing well, and building relationships. There are just new tools and ways, in addition to what already exists, to do our job. Re: ROI on traditional and new media...it's a hot topic. In fact, every service provider is jumping all over Social Media. Buzzlogic, Dow Jones, among others claim to show the value of "participating in online conversations." And now wire services also offer social packages with dashboards for you to see metrics of their reach... I think these new services are confusing executives more than they are demonstrating new forms of metrics and value, while also capitalizing on trends and all things 2.0. Although, Jeremiah Owyang seems to have created a complicated series of metrics and value points when he was working at Hitachi. He had to convince traditional management to let him engage and he spent quite a bit of time tying new with old. I'm very curious to discuss this with him. Add Comment
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This just in... According to the findings of survey of more than 3,000 top marketing executives worldwide, PR 2.0 will be toast in '07!