It’s that time of the year that we all look forward to.  Snow is falling and festivities flowing as we prepare to say goodbye to 2009.  It’s been quite a year.  Not least remembered for a heavy downward pressure on budgets; in turn fanning the flames of the eternal debate about how much should be spent on PR measurement.

Back in 1998, the CIPR, PRCA, Public Relations Standards Forum (PRSF) and AMEC put their heads together and produced best practice guidelines on the use of planning, research and evaluation within the industry.  The aim of the campaign, known as PR Week’s Proof campaign, was to encourage companies to allocate 10% of PR budget to measurement.  Over ten years on and, although the 10% figure is often cited, the reality is rather different.  Metrica Insights found that over half (52%) of respondents spend between 1-5% on measurement.  The respondents do, however, believe they should be spending more on evaluation: almost half the participants currently spending between 1-5% recognise that they should be spending between 6-10%.

So, herein lies the conundrum. When budgets are being squished and results are under close scrutiny does it pay to hold fast and continue dedicating 10% to measurement?  Here at Metrica (heavily vested interest aside!) we would argue that the answer is yes.  As long as it’s done properly.  There’s little point spending swathes of money on measurement if it doesn’t demonstrate PR’s contribution to the success of the business.  Counting clips and presenting AVEs won’t make the money spent worthwhile; generating ROI metrics that help prove and improve the effectiveness of PR will.  If you can use your measurement for well-informed planning, tweaking and improving then the budget really starts to sing hard for its supper. 

Interestingly, while more respondents’ 2009 PR budgets decreased (30%) than increased (20%), the majority (46%) stayed the same.  This was a very encouraging result during a global recession.  The widening remit of PR in the social media realm may well have had something to do with this.  Even more reassurance came as 28% of respondents were confident of an increase in overall PR budgets coming into 2010.  Is this result a reality?  Have your budgets been decided yet? And, most importantly, have you put aside a set amount for measurement? 

Next time we’re looking at opinions around ROI – the catch of the day, the phrase du jour, the Holy Grail. At long last there’s been increased demand for PR ROI.  How are our respondents satisfying this demand?  We’ll be back in the New Year to find out. Happy Christmas everyone!