Understanding Earned Media Value: What It Is and Why It Matters
Earned media value (EMV) is one of the most widely used metrics in evaluating how your company is doing on social media. It’s also an important tool to measure the effectiveness of your marketing and PR efforts to increase awareness. When calculated correctly, it can be used to rank and analyze where your company stacks up against the competition.
There are differing opinions on the value of EMV as a KPI and, mainly due to the different methods of calculation, it can often be misinterpreted. To better understand what this metric could mean for your company or brand, let’s take a look at the basics of EMV.
How to Define Earned Media Value
Earned media value (EMV) is a metric used to measure the value of publicity generated for a brand or product through earned media channels, such as social media, online news articles, blog posts, and other forms of third-party coverage.
The measurement is quantified as a monetary value based on the engagement of the social media content created by basically anyone other than the brand. This could be an influencer endorsement, blog post, customer review, social post, or anything that did not come from your owned and paid channels. Think of it as word-of-mouth.
The resulting EMV metric, after calculating the costs of all of these social media exposures, represents the amount of money you would have had to pay to get the same level of engagement through owned or paid branded channels.
How to Calculate EMV
EMV calculates the monetary value of earned media placements by comparing the space or time a brand is mentioned in an article or social media post to the cost of advertising in the same medium. For example, if a brand receives a mention in a high-traffic online publication that charges $10,000 for a full-page ad, the EMV would be $10,000.
EMV is typically calculated using a formula that takes into account several factors, including the size and relevance of the audience, the level of engagement, costs per engagement, the frequency and reach of the mentions, the social platform used, and the overall quality of the coverage. This metric can help brands understand the impact of their earned media efforts and compare the effectiveness of different campaigns or channels.
How to Use EMV
EMV is often used to evaluate the effectiveness of third-party influencer campaigns by putting a dollar amount on the engagement that is earned on these campaigns.
By having a specific number to look at, you can start to understand the value of different audiences through social media, PR, and marketing initiatives. Additionally, knowing your EMV also provides a better grasp of where budgets should be allocated for paid campaigns to maximize reach and engagement.
It is important to note that EMV is just one of many metrics used to evaluate the success of a marketing or PR campaign. Other important measures include brand awareness, customer lifetime value, cost per acquisition, and conversion rates.
If you have any further questions about EMV you can reach out to email@example.com for a consultation.