Earned Media Value Calculator
Understanding Earned Media Value (EMV)
In the dynamic world of marketing and public relations, understanding the true impact of your efforts is crucial. While paid advertising offers direct control and measurable outcomes, earned media—coverage gained through promotional efforts other than paid advertising—often carries greater credibility and influence. But how do you quantify the value of a glowing review, a viral social media post, or a prominent news feature?
What is Earned Media Value?
Earned Media Value (EMV) is a metric used to estimate the monetary value of media coverage that a brand receives through non-paid channels. Essentially, it answers the question: "What would it have cost to achieve the same reach and engagement through paid advertising?" EMV helps marketers and PR professionals demonstrate the tangible return on investment (ROI) of their organic and outreach strategies.
Why is EMV Important?
- Quantifies PR & Marketing Efforts: EMV provides a concrete financial figure for activities like media relations, influencer marketing, and social media engagement, which are often harder to measure than paid campaigns.
- Demonstrates ROI: It helps justify budgets and strategies by showing stakeholders the financial impact of earned media.
- Benchmarking: EMV allows brands to compare the effectiveness of different campaigns, channels, or even competitors' earned media performance.
- Strategic Planning: Understanding what drives high EMV can inform future content creation, outreach strategies, and brand messaging.
How is EMV Calculated?
There are various methodologies for calculating EMV, but most involve benchmarking earned media against equivalent paid media costs. Our calculator uses a common approach that considers both impressions (reach) and engagements, then applies a credibility multiplier to reflect the higher perceived value of earned content.
The formula used is:
EMV = ((Total Impressions * (Average Paid CPM / 1000)) + (Total Engagements * Average Paid CPE)) * Credibility Multiplier
- Total Impressions: The total number of times your earned content was displayed or seen. This could be social media reach, website page views, or publication circulation figures.
- Average Paid CPM (Cost per 1000 Impressions): This is the average cost you would pay for 1,000 impressions if you were running a paid advertising campaign in a similar context (e.g., on social media, display networks).
- Total Engagements: The total number of interactions with your earned content, such as likes, shares, comments, clicks, or reactions.
- Average Paid CPE (Cost per Engagement): This is the average cost you would pay for a single engagement if you were running a paid advertising campaign.
- Credibility Multiplier: Earned media is often considered more trustworthy and impactful than paid advertising. This multiplier (typically between 1.2 and 2.0) accounts for that added value. For example, a multiplier of 1.5 means earned media is considered 1.5 times more valuable than equivalent paid media.
Example Calculation:
Let's say a recent influencer campaign generated the following results:
- Total Impressions: 500,000
- Average Paid CPM: $7.50
- Total Engagements: 25,000
- Average Paid CPE: $0.75
- Credibility Multiplier: 1.5
Using the formula:
Value from Impressions = (500,000 * ($7.50 / 1000)) = $3,750
Value from Engagements = (25,000 * $0.75) = $18,750
Base Value = $3,750 + $18,750 = $22,500
Earned Media Value = $22,500 * 1.5 = $33,750
This means the earned media generated by the campaign is estimated to be worth $33,750, had you achieved the same results through paid advertising with an added credibility factor.
Limitations of EMV
While a powerful metric, EMV is not without its limitations:
- Subjectivity: The choice of benchmark CPM/CPE and the credibility multiplier can be subjective and vary widely between organizations and campaigns.
- Quality vs. Quantity: EMV primarily focuses on quantitative metrics (impressions, engagements) and may not fully capture the qualitative impact of earned media, such as brand sentiment or audience relevance.
- No Universal Standard: There isn't one universally accepted EMV calculation method, making direct comparisons across different reports or agencies challenging.
- Not a Direct Revenue Metric: EMV measures potential advertising cost savings, not direct revenue generated.
Maximizing Your Earned Media Value
To get the most out of your earned media efforts, focus on:
- Creating Highly Shareable Content: Content that resonates deeply with your audience is more likely to be shared and discussed.
- Building Strong Media Relationships: Nurturing connections with journalists, bloggers, and influencers can lead to more frequent and positive coverage.
- Engaging with Your Audience: Actively participating in conversations on social media and responding to comments can boost engagement and reach.
- Monitoring and Amplifying: Track mentions and shares, and then amplify positive earned media across your own channels to extend its reach.
By strategically pursuing earned media and using tools like this calculator, you can gain valuable insights into the impact and financial worth of your non-paid marketing and PR initiatives.