For several years, earned media value (EMV) has been a fundamental metric for marketers aiming to evaluate the effectiveness of their social media initiatives, particularly in influencer marketing and organic social media activities. However, in our current data-centric environment, where we can monitor everything from website interactions to conversions, is EMV still a significant measurement?
The response, like many inquiries in marketing, is slightly more intricate than a straightforward yes or no. While EMV is an excellent resource for grasping your brand’s online presence, it remains just that—a resource.
This blog post will delve into the details, outlining its advantages and limitations. It will also clarify why a holistic approach to evaluation is crucial for demonstrating social media return on investment (ROI).
What is earned media value?
Earned media represents any content that references your brand without any financial contribution from your business. Simply put: Earned media refers to the engagement generated by your “digital word of mouth,” distinct from engagement facilitated by your own media channels or acquired through paid promotions or advertisements of content.
Earned media is particularly relevant in social media, where user-generated content, influencer partnerships, and online discussions can greatly influence brand perception. Additionally, it applies to public relations, content marketing, and event marketing. Today, we will concentrate on earned media value specifically within the social media landscape.
Earned media value, or EMV, quantifies the various actions individuals take when interacting with various social media content. These engagement actions encompass comments, likes, shares, and mentions. Each of these actions is subsequently translated into a numerical dollar amount for your business.
For instance, if a creator garners 1,000 likes on an Instagram post, utilizing a tailored EMV benchmark of $0.10 per like, the estimated value of that post would be $100.
Should you measure EMV for your brand?
While earned media value can offer insightful information regarding the effectiveness of your social media actions, it is not the sole metric to be taken into account. It is vital to monitor additional key performance indicators, such as reach, engagement rate, and conversion rate. This comprehensive tracking will enhance your understanding of your social media achievements.
Ultimately, employing EMV alongside other metrics can still assist in assessing the efficacy of your social media strategy.
Earned media value can serve as a beneficial metric for:
- Benchmarking: Monitor your brand’s performance over time and make comparisons with competitors.
- Identifying trends: Detect increases in EMV that may signify effective campaigns or viral content.
- Reporting to stakeholders: Present a high-level summary of your social media influence.
Nonetheless, it’s essential to recognize that EMV has its drawbacks. It does not have a direct connection to business outcomes such as sales or leads, and may be swayed by uncontrollable factors (like platform algorithm changes).
What to consider when calculating earned media value
When presenting information to stakeholders about your social media influence, providing a high-level overview of your earned media value is beneficial.
Although earned media value can be a helpful metric for assessing the success of your social media efforts, it’s vital to remain aware of common pitfalls associated with earned media value calculations.
Here are several key considerations regarding how earned media value is determined:
- Common calculation discrepancies: The primary challenge with EMV calculations is the absence of a universal method to allocate a monetary figure to social media engagements. Some approaches depend on advertising equivalents, such as cost-per-click (CPC) or cost-per-engagement (CPE), while others utilize arbitrary multipliers based on perceived worth. Moreover, the method of calculating earned media value can differ greatly between various social media platforms and partners, leading to inconsistencies that hinder comparison across platforms.
- Lack of transparency: Be cautious of partners who are ambiguous about their EMV calculation methodology. Some may assert that their formulas are based on a “proprietary algorithm” or a “trade secret.” This opacity makes it difficult to assess the validity and dependability of their results.
- Misaligned KPIs: Confirm that the EMV calculation aligns with your specific objectives. Misalignment can produce distorted earned media value figures and complicate the accurate evaluation of a campaign’s success. It is essential for companies to carefully select and align their KPIs with their EMV calculations to achieve a clearer understanding of their campaign’s impact.
- Over-dependence on EMV: Avoid the mistake of relying exclusively on earned media value. In today’s advanced marketing environment, we have access to a wealth of detailed data and attribution frameworks that can provide a more holistic view of ROI than this singular calculation.
Looking for an effective way to accurately collect your social media data across different platforms for calculating social ROI and overall EMV?
Enter: Sprout Social, the comprehensive social media management platform.
With Sprout Social’s Premium Analytics, Sprout effortlessly integrates reporting across various social media platforms, providing you with a clear overview of your social media engagements across multiple accounts and networks. This allows for precise data analysis necessary for accurate EMV calculations. Furthermore, with Sprout Social’s reporting tools, you’ll gain access to a wealth of vital data tracking and visualization to effectively present your social media ROI to stakeholders.
Interested in discovering Sprout Social? Begin with a 30-day free trial today.
How to compute earned media value
As highlighted earlier, the calculation of earned media value varies from one instance to another. However, a common method we can easily suggest is as follows:
- Identifying your average cost-per-engagement (CPE) for paid social media. This establishes a standard for valuing organic engagements.
- Assigning weights to various types of engagement. For instance, a share might bear more weight than a like.
- Multiplying the number of engagements by their corresponding weights and your CPE.
Let’s consider an example. We’ve determined that our average CPE is $0.50.
You receive 100 likes, 50 comments, and 20 shares on a post.
You assign weights of 1 to likes, 2 to comments, and 3 to shares.
- Likes: 100 likes x 1 x $0.50 = $50
- Comments: 50 comments x 2 x $0.50 = $50
- Shares: 20 shares x 3 x $0.50 = $30
Total EMV for the post: $50 + $50 + $30 = $130
Important Note: This is a simplified situation. More intricate calculations might consider reach, content type, and other factors.
Utilize robust social media analytics to demonstrate ROI
In conclusion, earned media value is a helpful metric for benchmarking, trend identification, and stakeholder reporting. Nevertheless, it is not the definitive measure of social media assessment. To truly enhance your social media strategy, it is crucial to integrate EMV with additional metrics that provide a broader perspective on your initiatives. By comprehending the intricacies of EMV calculations and utilizing tools like Sprout Social’s reporting tool, you can ensure that your social media efforts are data-informed and aligned with your organizational objectives.
The post Earned media value: How to compute it and what to consider in the calculation process first appeared on Sprout Social.
Recent Comments