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"Last week I was shocked to read the PRCA’s critisicm of the PBR model in
PRWeek…
For an established PR association like the PRCA to come out and
criticise payment by results is simply outrageous. Especially as they are
basically saying the industry isn’t competent enough to evaluate properly.
Their argument devalues what we do as professionals and makes us look decidedly
amateurish, vis a vis other marketing disciplines and the business world where
‘gain share’ models are becoming the norm.
Trying to dismiss the PBR model because of outdated evaluation
techniques is a fallacy. If clients are increasingly requesting payment by
results, which they are, consultancies must step up and adapt. Rather than
dismiss the model out of hand, what the PRCA should be calling for is specific
PBR based evaluation guidelines which can be set against realistic fees which
can be levied.
I agree that the model of simply charging for coverage is rarely useful
nowadays and this type of commoditisation should be consigned to history.
Nowadays PBR should be offered, but only when based on clear communications and
business-oriented metrics. Digital advancements have allowed progress in
certain areas, but solid evaluation will always require a good portion of
budget and sizeable time investment. It is also important to focus on outcomes
not just outputs of PR metrics.
As a consultancy it is important that you are able to put your money
where your mouth is and achieve return on investment for both you and your
client.