PR Measurement: from output to outcome - AMEC - International

PR Measurement: from output to poutcome

Andre ManningVice President and Global Head of External Communications Royal Philips ElectronicsRoyal Philips Electronics

June 2010

CONFIDENTIAL December 03 , 2009

“A global company of leading businessesleading businesses creating value withcreating value with meaningful innovationsgthat improve people’sh lth d ll b i ”health and well-being”

CONFIDENTIAL December 03 , 2009 2

A l di lti ti lA leading multinational company

Founded in 1891Headquartered in Amsterdam, the Netherlands

Sales over EUR 23 billion (USD 33 billion) Over 30% in emerging economies

116,000 employeesSales and service outlets in 100 countries

€1 6 billi i t t i R&D 6% f l€1.6 billion investment in R&D, over 6% of sales55,000 patent rights – 33,000 registered trademarks –49,000 design rights

150 Communications professionals around the globe


The journey of measurement in the last 10 years

Measurement circa 2000

Measurement

Cli B k

in 2010

O li P t lClip Books…Messy

Online Portals…Sleek

4

Cumbersome

Time Consuming

User Friendly

Data at the Click of a Button


4

The journey of measurement in the last 10 years


AVEs: History and change of UseAVEs: History and change of Use• For many years, PR professionals struggled to assign a value to clips. This led to Advertising Value Equivalency (AVE) or valuing clips as paid advertisements.

• Essentially, an AVE places a monetary value on a public relations placement by using the dollar amount paid for an equivalent advertising space.

• AVEs are derived from these advertising rates based on certain metrics, which varies by outlet type. (Print: column-inches or single-column centimeters; Broadcast: segment duration or word count; Online: word count)

Ad Cost:

$100,000

AVE Cost:

$100,000

Paid Advertisement PR Placement

7


7

Digital Media Measurement: Making Sense of the Changing Landscape

• It is not a myth

• It needs to be defined

• It is not that different from other media

• It often can be accomplished with• It often can be accomplished with existing tools


8

PR 2.0Th PR d l i li lThe new PR model is cyclical:

– Brands no longer have full control over their messagesMeasurement must be adapted to reflect the various meaningful ways– Measurement must be adapted to reflect the various meaningful ways in which PR can have impact on the customer

pr/advfirm

companymedia

9

consumer/end user


Digital Media Measurement: Tools You Can UseDigital Media Measurement: Tools You Can UseYou can sign up for a variety of tools—some that are free and others that are subscription based—to help you aggregate andothers that are subscription based to help you aggregate and analyze online coverage.


10

Corporate Reputation Management: The Fundamentals

Understand reputational Provide a guide to i tistanding relative to

competitive and aspirationalcompanies among the target

communications planning toward improving reputation p g g

audience(s)

D t i l t d i f

p g pand business behaviors, while optimizing resourcesDetermine relevant drivers of

overall perception and desired behaviors

optimizing resources spent in this area


11

Why media measurement at PhilipsWhy media measurement at Philips• To establish a better link between communications andTo establish a better link between communications and

the business– To challenge business and management with outcome (forward

looking) versus output (looking back)

T id l b l i ti t k ith• To provide our global communications network with one common set of Key Performance Indicators

• To further professionalize the communications function

• And to reflect the changing communications ecosystem we are part of: dialogue versus monologue (communications versus advertising)


Theory vs reality at Philips: measurement at our fingertipsmeasurement at our fingertips

• Together with our OneVoice PR agency we developed a measurement system that provides insight, leadership and consultation on output goal-setting and measurement for Philips using a customizable web-based media measurement system

Online content

Print content

Dedicated team of “editors”

responsible for

Analyzed content continuously

published to a Web-based portal

(Broadcast content

reading and analyzing coverage

(accessible to all Philips and OneVoice staff, as appropriate)

KOLOther Data

• Our measurement system will oversee the entire output measurement process from clip retrieval to analysis and reporting


Media measurement at (y)our fingertipsMedia measurement at (y)our fingertips• The Philips Media Measurement System is intended to:

– Create and provide consistent measurement across all business sectors, corporate activities, and geographies

– Measure a fixed set of KPI’s:• Overall tone• Volume of coverage among A-list media (number of articles, total impressions)• Share-of-voice with competitive set

M t ti• Message penetration• Algorithm and net promoter scores

– Replace the current ad-hoc measurement approach, eliminating the need for CARMA i to i Research Do Jones Insight and other ario s meas rementCARMA, i to i Research, Dow Jones Insight and other various measurement providers

• The primary content sources for the measurement system include Factiva and Moreover News to provide print and digital coverage and Sysomos an online socialMoreover News to provide print and digital coverage and Sysomos, an online social media feed to gauge conversations within social networks and consumer-generated media.


A il 2010 M thl D hb dApril 2010 Monthly DashboardThis Month Last Month Net Change (+/-)

Total # of articles 209 192 +17Total # of articles 209 192 +17Total # of impressions 123,360,073 58,968,825 +64,391,248

Average AMS (from -100 to 100) 66.6 62.5 +4.1

Average Promoter Score* 8.33 8.12 +0.21Message Penetration(% with 2+ messages)

61.2% 46.4% +14.8%

l b i

3%1%

ToneVery Positive

S h

Volume by Sector

Corporate4%

3%2% 2%

Volume by Region

Benelux

North America

45%

19%

32%Somewhat Positive

Neutral

Somewhat N ti

61%19%

15%5%

Lighting

Consumer Lifestyle

42%

12%

10%6%

5%International

France

UK

DACH

*Average Promoter Score is the conversion from the Average AMS to a Promoter Score

Negative

Very Negative

Healthcare 14%12%

Iberia

APAC

India

Brazil


April 2010 Dashboard 15

Average Promoter Score is the conversion from the Average AMS to a Promoter Score

April 2010 Monthly DashboardApril 2010 Monthly DashboardCorporate• Overall, Corporate coverage in April was generally positive and

Lighting• The majority of Lighting coverage in April was positive in tone. The

dominated by Philips’ strong Q1’10 financial performance. The media highlighted that Philips reported an unexpected boost in sales exceeding expectations in Q1’10 compared to a loss during the same period last year. The strong results were buoyed by solid sales in its Lighting and Healthcare divisions as well as a strong recovery in emerging markets

Lighting sector was lauded in several stories concerning the announcement of Philips Q1 figures . From the Associated Press, “Philips swung into a better than expected net profit in the first quarter thanks to a good performance by its lighting division.”

• Lighting CEO Rudy Provoost was very visible in the media during and some strategic cost-cutting. This story was picked up in a number of top international outlets including Fox News, The Associated Press, Reuters and a number of key local market sources.

• Despite strong Q1’10 results, media noted CEO Gerard Kleisterlee caution about the second half of the year. Eindhovens Dagblad

g g y y gApril, being quoted or mentioned in numerous publications and outlets like Fox News, Cinco Dias, De Tijd, Handelsblatt, Eindhovens Dagblad, and Reuters. In many cases, Provoost discussed the future of the lighting market, and how Philips plans to outperform the markets expected growth over the next decade. In an interview with

mentioned that although analysts are unsure that Philips can achieve the main goal of its Vision 2010 plan which is to double profit share, Philips is still keeping that target in sight. Coverage mentioned that strong growth in emerging markets may help Philips reach its goals.

• CEO Gerard Kleisterlee‘s decision not to extend his contract with Philips

Cinco Dias, when talking about Philips LED lighting solutions, he said “we accomplished our dream of bringing digital lighting to homes.”

• Philips participation at the Light and Building Show in Germany received positive press coverage as well, with Thailand’s The Nation noting “it [Philips] expects 50 percent LED penetration in the market p

when it expires in 2011 still received coverage in April. This month Andrea Ragnetti, who was thought to be a main contender as Kleisterlee’s successor, announced that he would be leaving the company. Now the most likely candidate to replace Kleisterlee is Rudy Provoost. Media’s coverage on the story ranged from neutral to slightly

g [ p ] p p pby 2015 and 75 percent by the end of the decade.” Eindhovens Dagblad also ran a piece about the show and Provoost’s high expectations for the company's performance in the LED market.

• Philips LED lighting products continued to receive media attention across several geographies, being topic discussions in publications

negative due to rumors that Ragnetti was not well-liked at Philips and chose to step down because he was unable to succeed Kleisterlee. Eindhovens Dagblad noted that the succession decision seems to be ongoing.

g g p , g p plike the Financial Times, Inhabitat.com, LEDs Magazine, JoongangIlbo, Handelsblatt, and Le Figaro.


April 2010 Dashboard 16

April 2010 Monthly DashboardApril 2010 Monthly DashboardConsumer Lifestyle• Consumer Lifestyle coverage focused on a variety of topics in April including

financial news, product reviews and announcements. The consumer division was highlighted for its strong performance, turning a profit in Q1.

Healthcare• The Healthcare sector continued to earn favorable, quality coverage

with all measured clips being positive or neutral in tone.• In April the financial success of the entire sector was highlighted • Philips partnership with Videocon Industries—to make and sell TVs in

India—also received media attention in April. The agreement was recognized for ensuring consumers in India would “get access to the best that the Philips brand can offer.” Other product mentions were less frequent, including the Philips Senseo, Sonicare and headphones.Globally several of Philips LCD TVs received coverage last month The

• In April, the financial success of the entire sector was highlighted. CMIO and Diagnostic Imaging Europe both noted that there was a 20 percent growth in equipment orders in Q1, and a 7 percent jump in overall healthcare sales. Media attributed the growth to increasing imaging system sales and general expansion in emerging markets.

• Medgadget com included Philips in a review of products that provide • Globally, several of Philips LCD TVs received coverage last month. The Philips 21:9 LCD TV received several mentions in the media for its use of Ambilight technology. One UK publication stated that the product is “the cream of the crop,” and that its LED backlighting reduces energy by 50 percent. The consumer viewing experience initiative also garnered media attention. A handful of outlets discussed Philips successful release of

• Medgadget.com included Philips in a review of products that provide consumers ways to track their daily health habits. Referring to the DirectLife, the reviewer noted, “Philips is putting significant effort into marketing the device to various companies as an employee health benefit and, from what I can tell, it has been a successful product.”Nikkei Shimbun ran a positive piece that disccused Philips several online videos (one of which won a publicity award) that showcased

the 21:9 LCD TV. The Philips 9000 series LCD TV (47”) was lauded for its quality and mentioned as a great flat screen to watch the World Cup on.

• Other products mentioned in April included:– Philips Robust Collection, which one media outlet described as

b i “ t t d f t d l i d t i l t l ”

• Nikkei Shimbun ran a positive piece that disccused Philips partnership with Mitsubishi UFJ to sell medical equipment in Japan.

• In recognition of “Philips’ people-focused design in creating valuable simplified solutions in the area of health and well-being,” Middle East Health noted that the company was honored with 13 iF design

dbeing “constructed from sturdy aluminum and stainless steel.” However, the product’s high price was also mentioned.

– Philips Senseo received scant, yet positive, attention because a portion of the product proceeds benefit environmental organizations.Sonicare was mentioned in the Netherlands for giving “smooth

awards.• Consistent with previous quarters, sector coverage appeared mainly

in Healthcare trade publications.

– Sonicare was mentioned in the Netherlands for giving smooth, white and very clean teeth that you can’t keep from touching with your tongue.” The article said it could save a few trips to the dentist. The Philips Brilliance monitor was called out for its high price for “an otherwise pedestrian monitor.” The product was criticized for its poor viewing angles and technology flaws.


17

What Worked vs. What Didn’t WorkWhat Worked vs. What Didn t WorkWhat Worked Well:• Media on Philips strong Q1’10 financial performance dominated Corporate coverage. Media

highlighted the company’s unexpected profits and noted its strength in a down and recovering economy Much of Philips Q1 success has been attributed to sales in its Lighting and Healthcareeconomy. Much of Philips Q1 success has been attributed to sales in its Lighting and Healthcare sectors.

• Consumer Lifestyle media coverage that noted its CL product’s differentiating features—in particular those that are environmentally friendly—received favorable media attention. Leveraging key moments in time such as the World Cup helped to create buzz around Philips’ CLkey moments in time, such as the World Cup, helped to create buzz around Philips CL products.

• Leveraging Philips’ position as a leader in the healthcare space and displaying proof, such as its improved financial performance and its iF design awards worked well. Coverage that highlighted th H lth t ’ th ht l d hi i t tl hi h litthe Healthcare sector’s thought leadership was consistently high quality.

• The visibility of Lighting CEO Rudy Provoost worked very well in positioning Philips as the leading provider of innovative lighting products and solutions, particularly when he discussed Philips’ stance and vision for LEDs.

What Didn’t Work Well:• Articles that negatively mentioned Philips’ CL products typically focused on product design and

price point Leveraging the more positive features such as product lifespan should help toprice point. Leveraging the more positive features, such as product lifespan, should help to counterbalance negativity around price.

• Philips should continue to use new partnerships, product reviews, and launches to push company messages that align easily with the sector, such as “well-being” and “sense and simplicity.”


18

A

Open Discussion, Q&A


PR Measurement: from output to outcome - AMEC - International

Documents

Transcript of PR Measurement: from output to outcome - AMEC - International