Measuring Earned Media Value: We Can Do Better!
How to calculate your earned media value
Use the following procedures and the formula EMV = impressions x CPM x adjustment variable to determine your EMV:
1. Determine the number of impressions
You must ascertain the values of each component in the equation in order to apply the formula. Your impressions include the frequency with which the articles and other media you publish appear in readers’ newsfeeds. For instance, the total number of impressions for an advertisement on a social media platform is determined by how many times users view the advertisement.
User actions like interacting with the advertisement or clicking on a link are not included in impressions. Many social media and content publishing platforms offer metric features that let you track the number of impressions you get for particular content, posts, and media that you publish. If you find that a specific social media post has received 12,500 total impressions, enter that quantity into the formula as follows:
EMV = 12,500 x CPM x adjustment variable
2. Calculate your cost per 1,000 impressions
The cost per 1,000 impressions, or CPM, you pay for the media or content you publish is the sum you pay for each 1,000 impressions the content receives on the platform. To calculate your CPM, use the following formula:
CPM = 1,000 x (cost / total impressions)
The cost in this formula is equal to the money you spend on your advertising or social media campaign, and the total impressions represent the impressions you hope to create. When calculating your CPM, you can use the current number of impressions if you are aware of it. For instance, if you spend $25 on advertising fees and receive 12,500 impressions, your CPM is 1,000 x ($25 / 12,500) = $2 for every 1,000 impressions. Use these figures in the formula with 12,500 impressions and a $2 example CPM:
EMV = 12,500 x $2 x adjustment variable
3. Identify your adjustment variable
Depending on the activities of your marketing and public relations activities, the adjustment variable changes. Although this component of the equation for calculating EMV is frequently ambiguous, you can frequently use more trustworthy metrics like engagement and share of voice.
The engagement value of a social media post is, for instance, 125 if it receives 1,000 impressions and 125 users respond to it by clicking on a link, liking the post, or sharing it. Plug all values into the equation using the examples from above and an example engagement metric of 300 as the adjustment variable:
EMV = 12,500 x $2 x 300
4. Multiply the three values in the formula
After changing your metrics in the formula, multiply: to finish your EMV calculation.
EMV = 12,500 x $2 x 300 = $7,500,000
5. Evaluate your results
If your outcome is $7,500,000, your entire marketing budget is represented by this as an EMV. You can estimate the monetary value of your content, media, and advertisements by analyzing this result. While this gives your campaign efforts value, it does not project how much money your company or brand will make from advertising.
However, as your content gains views and engagements, it helps to understand the impact of your earned media value. You can analyze aspects like the kind of content users interact with most using this data. After that, you can develop social media and digital marketing plans that suit the needs of your target markets.
What is earned media value?
Marketing and PR experts use earned media value, or EMV, as a metric to assess the effectiveness of the earned media strategies they employ. EMV can be difficult to calculate, but you can use metrics like impressions, media reach, engagement, and cost per thousand views to estimate the value of the various pieces of social media content you post.
Most companies and brands use EMV as a monetary value to gauge the caliber and worth of the content users interact with most frequently. Despite the fact that EMV can be arbitrary for the company or brand using it, you can gain from assessing this metric in relation to the effectiveness of your overall digital and social media marketing campaigns.
FAQs about earned media value
The following frequently asked questions may provide additional information on earned media value:
How can you increase your earned media value?
By creating value for your audience through the content you publish, you can earn media value. Implementing strategies that compel and inspire your audience to engage with and share your content is crucial. The more users who share, like, or comment on the content you’ve published, the more value your earned media will be. Consider publishing more content tailored to your audience’s preferences to increase your EMV. Working with brand ambassadors can also help you produce more shareable content and broaden your audience, which will increase your reach and generate more impressions and earned media value.
What are some examples of earned media content?
Earned media includes a variety of content types that can be found on social media sites, blogs, livestreaming services, and other digital channels. Product reviews, blog comments, social media likes and shares, shares and comments on video blogs, social media advertisements, references to your brand, and audience interactions are a few typical examples of earned media. You can use a variety of strategies to see which content generates the most organic engagements due to the variety of content that can become earned media.
Are there other ways to calculate EMV?
There are a few ways to calculate your earned media value (EMV), which can be subjective and dependent on the particular metrics that businesses and brands want to measure. You can multiply the quantity of organic and viral impressions by your CPM and typical customer lifetime value to determine your EMV using these impressions as your basis.
Divide the percentage of customers with at least one engagement by the average number of engagements to arrive at your EMV using this method. Then, multiply the result by the average customer lifetime value. You can use the technique that gives you the most accurate representation of content value depending on the performance metrics you track for your content strategies.
Why earned media is important?
The advantages of earned media Since earned media is free, its return on investment is always higher than that of any other media investment. In comparison to owned or paid media tactics, it’s also a more natural way to increase brand awareness and your credibility.
What does media impact value mean?
Launchmetrics created a proprietary algorithm called Media Impact Value to evaluate the impact of placements and mentions in various media outlets for the Fashion, Luxury, and Cosmetics (FLC) sector.
What is total media value?
Since you cannot and do not have control over earned media, it stands out from the other two. Earned media examples include a mention on Instagram when a customer stops by your store, an unprompted Yelp review, and even a share of your blog post.