Brands/Products
Beyond AVE: The Pitfalls of Using Advertising Equivalency in PR Measurement
By Philip Odiakose
In public relations (PR) measurement and evaluation, one metric has long been a topic of debate and scrutiny: Advertising Value Equivalency (AVE). For over a decade, AVE has been used by PR professionals and organizations as a means to assign a monetary value to earned media coverage by equating it with the cost of equivalent advertising space. However, as a Chief Media Analyst with more than a decade of experience in PR measurement and evaluation, I have come to understand the inherent flaws and limitations of AVE, and it is crucial to shed light on why relying on this metric can be detrimental to accurately assessing the impact of public relations efforts.
The Flaws of AVE
Misalignment of Objectives: PR and advertising serve fundamentally different purposes within the marketing mix. While advertising is a paid form of communication aimed at promoting products or services, PR is centred around building relationships, managing reputations, and influencing perceptions through earned media coverage. Attempting to equate the two overlooks the unique value proposition of PR and can lead to misguided interpretations of its effectiveness.
Inaccurate Valuation: AVE relies on simplistic calculations that assign a monetary value to PR coverage based on equivalent advertising rates. However, this approach fails to consider crucial factors such as negotiated rates, audience engagement, message credibility, and the qualitative aspects of media coverage. As a result, AVE often provides inflated or misleading estimations of PR impact, undermining the credibility of measurement efforts.
Lack of Contextual Understanding: AVE disregards the contextual nuances of media coverage, including tone, sentiment, and relevance. Without considering these factors, it is impossible to gain a comprehensive understanding of the impact of PR efforts on audience perceptions and behaviour. By reducing PR outcomes to mere monetary values, AVE fails to capture the qualitative dimensions of PR effectiveness and provides limited insights for strategic decision-making.
Practical Challenges of AVE Implementation
Difficulty in Calculation: Calculating AVE requires access to advertising rates for equivalent media placements, which may not always be readily available or accurately reflective of the value of PR coverage. This can lead to inconsistencies and inaccuracies in measurement practices.
Inconsistent Methodologies: Different organizations and practitioners may use varying methodologies for calculating AVE, leading to discrepancies and a lack of standardization in measurement approaches. This inconsistency undermines the reliability and comparability of AVE data across different contexts.
Focus on Quantity over Quality: AVE tends to prioritize the quantity of coverage over its quality, incentivizing PR practitioners to prioritize securing high-volume media placements rather than focusing on strategic messaging and engagement with target audiences. This emphasis on quantity over quality can distort measurement efforts and detract from the strategic objectives of PR campaigns.
Embracing Alternative Approaches to PR Measurement
To overcome the limitations of AVE and accurately assess the impact of PR efforts, organizations must embrace alternative approaches to measurement and evaluation. Some alternative metrics and methodologies to consider include:
Outcome-Based Measurement: Shift the focus from outputs such as media mentions to outcomes such as changes in brand perception, customer behaviour, and business results. By measuring the tangible outcomes of PR activities, organizations can gain a clearer understanding of their impact on achieving strategic objectives.
Quality Metrics: Utilize metrics such as sentiment analysis, message resonance, and share of voice to assess the quality and effectiveness of PR coverage. These qualitative metrics provide valuable insights into audience perceptions and engagement, enabling organizations to gauge the resonance of their messaging and positioning strategies.
Integrated Measurement Approaches: Integrate qualitative and quantitative methods, such as media monitoring, media analysis, and surveys, to gain a comprehensive understanding of PR impact and audience engagement. By combining multiple data sources and measurement techniques, organizations can triangulate insights and validate findings, leading to more robust and reliable measurement outcomes.
Moving Beyond AVE for More Effective PR Measurement
In conclusion, AVE represents a relic of outdated measurement practices that fail to capture the true value and impact of PR efforts. By relying on simplistic calculations and overlooking contextual nuances, AVE undermines the credibility and effectiveness of PR measurement and evaluation. To advance the field of PR measurement and ensure more accurate and meaningful assessments of PR impact, organizations must move beyond AVE and embrace alternative approaches that prioritize outcomes, quality metrics, and integrated measurement methodologies. By doing so, organizations can gain deeper insights into the effectiveness of their PR initiatives and make more informed strategic decisions, ultimately driving greater success and impact in their PR endeavours.
Philip Odiakose is the Chief Media Analyst and Consultant at P+ Measurement Services and TMKG Consulting, members of the Media Monitoring and Audit Group (MMAG). Both agencies are members of AMEC and PAMRO
By Aduragbemi Omiyale
The Ecobank Pan African Centre (EPAC) in Lagos, venue of the ongoing 2025 Design and Innovation Exhibition, is bubbling with activities as top young innovators from across the country are showcasing their arts.
The event, running from Tuesday, February 25 to Sunday, March 2, showcases the immense potential within Nigeria’s manufacturing and creative industries.
The exhibition, themed Building a Made-in-Nigeria Brand, aims to emphasize the creativity, innovation, and craftsmanship of Nigerian designers while highlighting the importance of industrialization and export.
It also reflects a commitment to developing a sustainable industrial ecosystem that supports local talent and fosters economic growth across Africa. The exhibition is featuring 58 designers, including collaborations between manufacturers and designers, offering a glimpse into the future of Nigerian design.
The Minister of Art, Culture, Tourism, and the Creative Economy, Ms Hannatu Musa Musawa, who attended the programme, stressed the importance of strengthening the synergy between Nigerian creativity and manufacturing.
“By leveraging our country’s rich creative resources, we can modernize products, promote locally-made furniture, and build stronger economic connections,” Ms Musawa said, reaffirming the federal government’s support for such initiatives.
The Managing Director and Regional Executive of Ecobank Nigeria, Mr Bolaji Lawal, represented the Head of SME, Partnerships, and Collaboration at Ecobank, Omoboye Odu, said, “The success of SMEs is key to transforming Nigeria’s economy, and we recognize the importance of collaborating with the right partners. Titi Ogufere and Design Week Lagos are the perfect fit for us to help elevate Nigerian creatives and provide a platform to scale their businesses.”
On her part, the founder of Design Week Lagos, Ms Titi Ogufere, said, “This exhibition is a testament to the talent and hard work happening in Nigeria’s creative industries.
“We’re here to celebrate and showcase the potential of our local designers and manufacturers. The global design industry offers immense opportunities, and with more support, Nigerian designers can truly thrive on the world stage.
“We have a wealth of untapped creative potential in Nigeria. It’s time for us to shift focus from foreign markets and showcase what we can do right here at home. The global furniture market alone is valued at over $700 billion, and Nigerian designers can carve out a significant share of that.”
Leading pay television service provider, MultiChoice Nigeria, plans to offer a support package for DStv and GOtv subscribers.
In a message to subscribers on Monday, the company stated that starting from March 1, 2025, the new tariffs would apply to DStv and GOtv packages.
According to the company, DStv and GOtv subscribers who renew their subscriptions before the expiration date will be exempt from the new rates for a specified time as a reward for their loyalty.
Additionally, subscribers on both platforms can take advantage of extra benefits through the Step Up offer, which began in January and will continue until March 31.
The Step Up offer expands access to premium content by enabling both active and disconnected DStv and GOtv subscribers to enjoy content beyond their current package through an automatic upgrade to a higher package on payment for a package above their current subscription.
As part of the palliative package, MultiChoice will announce a reduction in the subscription for Showmax, its streaming service, on February 28. This aims to provide customers with more affordable access to live sports, movies, and general entertainment.
The latest price review puts the cost of the DStv Compact bouquet N19,000 and the Compact Plus at N30,000. DStv Premium subscription will rise to N44,500.
Similarly, GOtv Supa customers will henceforth pay N16,800, while those on Supa will pay N11,400. The tariff on GOtv Max moves to N8,500, while that of GOtv Jinja moves to N3,900.
These adjustments come as MultiChoice seeks to balance operational costs with continued access to premium entertainment for its subscribers.
By Adedapo Adesanya
The Federal Competition and Consumer Protection Commission (FCCPC) has summoned MultiChoice Nigeria over its move to hike subscription rates for DStv and GoTV services.
The call came as the broadcaster hiked its DStv premium bouquet to N44,500 from the N37,000 price, subscribers on the Compact+ would start paying N30,000 as against the current fee of N25,000 among others.
According to MultiChoice, the new rates take effect from March 1, 2025.
Now, the consumer rights agency has stepped in and summoned MultiChoice Nigeria and its chief executive to a hearing at the agency’s headquarters on Thursday, February 27.
According to a statement signed by FCCPC’s Director of Corporate Affairs, Mr Ondaje Ijagwu, it is deeply concerned over the pay-TV company’s proposal amid accusations that MultiChoice applies different pricing strategies in other markets.
“The Federal Competition and Consumer Protection Commission (FCCPC) has summoned MultiChoice Nigeria to explain its proposed subscription price increase, set to take effect on March 1, 2025,” a part of the statement on Tuesday evening disclosed.
“Exercising its mandate under Sections 32 and 33 of the FCCPA, the FCCPC directed the Chief Executive Officer of MultiChoice Nigeria to attend an investigative hearing at the Commission’s headquarters on Thursday, February 27, 2025.
“This action follows MultiChoice’s formal notification of the price adjustment, which raises concerns about recurrent unilateral price hikes, potential market dominance abuse, and perceived anti-competitive practices in the pay-TV industry,” it added.
The FCCPC also promised to “impose regulatory penalties, sanctions, or other corrective measures” on MultiChoice should it “fail to provide satisfactory explanations or be found in violation of fair market principles.”
The agency said this is to “protect Nigerian consumers” and that is it already “engaging the sector regulator and other relevant agencies to ensure fair competition and consumer protection within Nigeria’s broadcasting and digital subscription landscape”.
Multichoice decision to hike its prices comes amid inflationary challenges in core markets.
In Nigeria, a sharp decline in the Naira led to a 32 per cent decline in its Dollar revenue in 2024.
This is as it faced a broader 9 per cent decline in total active subscribers across Africa with subscriber numbers dropping by 13 per cent in Nigeria, Angola, Kenya, and Zambia.
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