1. PRIA – Measurement and Evaluation in PR April 14 2014

2. 2 Agenda for this Morning AMEC International Business Insights Study –Summary of Findings –Current Industry Trends –The Clients’ Perspective –The Future AMEC Measurement Week

3. 3 This report covers the findings of the 2013 AMEC International Business Insights Survey This is an online survey of two key audiences which offers unique insight into the research and insights industry at this point in time –66 CEO/MD level respondents from AMEC member companies, representing 83% of all member companies eligible to take part AMEC member companies were approached directly by the AMEC team –65 clients of these AMEC companies Each participating AMEC member was asked to nominate up to six clients and provide them with a link to the client survey Assuming all participating members did this, the client response rate is a very respectable 16% Research was carried out between 25 th July and 23 rd September 2013 Background

4. 4 Summary of findings Members say client budgets are more likely to be increasing than decreasing. The trend towards simplicity in measurement models is touching most AMEC members –This is reflected in high client demand for “keep it simple” styles of reporting Some members are continuing to see a growth in ad hoc work, but demand for continuous work is also buoyant –The value ratio of continuous to ad hoc work remains at its historical level of 4:1 Demand for social media and online news monitoring is increasing across the board Consequently, seven in ten AMEC members now believe social media measurement is critical or very important to their business success Client demand is highest for measurement of Twitter and Facebook. Industry blogs and forums are also important Industry trends Social media

5. 5 Summary of findings Two-thirds of communications measurement efforts still focus on outputs, according to clients –However, the proportion of efforts focusing on outcomes and business results has increased somewhat in the past three years Key objectives for clients from measurement work include measuring both quantity and quality and transparency/ ability to be replicated –Social media measurement is the third ranked priority, although AMEC members appear to under-estimate how important this is to clients Clients report that the industry performs well on most of the key criteria for successful measurement work: –Top management reporting, simplicity, brand/reputation tracking and delivering insights Areas where industry performance is felt to be lagging behind expectation –Including social media measurement, including radio and providing online dashboards Client perspectives

6. 6 Summary of findings Growth is expected to be strongest in four business categories: –Consultative/ “deeper dive” services –Integration with other marketing analytics –New/ automated forms of measurement –Digital/ social media analysis Client budgets are growing across all areas of measurement –Growth is strongest in the budget allocated to social media listening and measurement Survey participants report the highest ever revenue for the industry A$103m –The year-on-year growth rate stands at 12%, and growth is strong in all business size segments At the same time, the AMEC membership profile is evolving: –More clients are reached through the PR consultancy channel than ever before The future

7. Section 1: CURRENT INDUSTRY TRENDS

8. 8 Trends in client needs Members Q1 Please indicate how much you agree or disagree with each of these statements. (Base: all members) SUMMARY Half of all members are seeing a shift towards more emphasis on insights, with less emphasis on monitoring A big majority are seeing increasing demand for simplicity in measurement models Opinion is split over the extent to which ad hoc assignments are replacing continuous work

9. 9 Trends in client expectations Members Q1 Please indicate how much you agree or disagree with each of these statements. (Base: all members) SUMMARY There is a strong trend towards increased interest at top management levels in research and measurement which tracks the business benefits of communications Clients are now likely to be from a broader set of functions, including corporate communications as well as marketing There is increasing demand for insights reporting to demonstrate the business benefits of communications

10. 10 How demand for monitoring is changing Members Q8b For each of the media channels please indicate how client demand for monitoring has changed in the past 12 months (Base: all members) SUMMARY Demand for social media monitoring is increasing for almost all AMEC members – 91% have seen demand growth during the past 12 months In addition, 68% report growing demand for online news monitoring Demand for monitoring of other media channels is stable, except radio, where more members report a decrease than an increase

11. Section 2: CLIENT PERSPECTIVES

12. 12 Familiarity with Barcelona Principles Clients Q3 In general, how familiar are you with the AMEC Barcelona Principles for measurement? (Base: all clients) Members Q3 In general, how familiar are your clients with the AMEC Barcelona Principles for measurement?. (Base: all members) SUMMARY Almost two in every three clients say they have never heard of the Barcelona Principles for measurement Meanwhile 17% of clients know a little and 18% say they are relatively familiar with the Principles AMEC members expected 66% of clients to know about the Barcelona Principles, somewhat over-estimating the profile of the industry standards on the client side

13. 13 Focus for communications measurement – change over time Clients Q4 Please indicate how much of your communications measurement efforts focus on each of the following (Base: all clients) Clients Q5 Please indicate how much of your communications measurement efforts 3 years ago focused on each of the following (Base: all clients) SUMMARY Clients were also asked to estimate where the focus for communications measurement lay three years ago There has been a modest shift of focus away from measuring outputs towards measuring outcomes and business results However, both three years ago and at present, outputs remain the dominant focus for communications measurement

14. 14 Objectives/structure of measurement work Clients Q6 How often does your measurement work do each of the following? (Base: all clients) SUMMARY More than eight in ten clients say their measurement work always/mostly measures both media quantity and quality Almost seven in ten always/mostly use transparent/replicable measurement approaches More than six in ten say they always/mostly include social media One in three says they never use AVEs, but 40% always/mostly do include this kind of measurement Attempting to measure target audience change and/or determine business results from communications are less frequently part of the process

15. 15 Client priorities when considering communications measurement services Clients Q7 On a scale of 1 to 5, where 1 = not at all important and 5 = extremely important, how important are each of the following to you when considering communications measurement services? (Base: all clients) SUMMARY The two most important aspects of communications measurement services for clients are a) ensuring that the data creates insights and b) reports which can be shared with senior management across the organization The ability to track key reputation/brand attributes and simplicity of reporting are also among the highest priorities The inclusion of social media is the fifth-placed priority, coming in above both TV and radio

16. Section 3: THE FUTURE

17. 17 Single greatest potential to drive business growth Members Q13b Which area of business activity offers the greatest potential to drive business growth during the next 12 months? (Base: all members) SUMMARY Members were asked to indicate the business activity with the single greatest potential for growth in the coming year Top if the list, mentioned by 23%, is digital/social media analysis, followed by new/automated measurement technologies (21%) Integration with other market analytics and consultative/ “deeper dive” style services are also mentioned by more than one in ten

18. Section 4: AMEC MEMBER BENCHMARKING

19. 19 Continuous vs ad hoc Members Q16a Please indicate the value of all research and insights business undertaken in 2012 as continuous work? Members Q16b And now please indicate the value of all research and insights business undertaken in 2012 as ad hoc projects? (Base: all members answering) SUMMARY Despite the widely-held belief that the proportion of ad hoc assignments to continuous work is growing, the balance between the two remains very similar now to the levels reported five years ago – 80% continuous, 20% ad hoc Continuous work: 80% Ad hoc work: 20% Survey year 20082009201020112012 Continuous81% 80%84%80% Ad hoc19% 20%16%20%

20. 20 Direct end clients: 66% Client base by origin Members Q18 Thinking now about the research and insights business you carried out in calendar year ending December 31st 2012 which was originated by PR consultancies, how many end clients did you carry out work for? Members Q19 How many direct end clients did you carry out research and insights business for in calendar year ending December 31st 2012 (Base: all members answering) SUMMARY The AMEC members participating in the 2013 survey report a total client base of approaching 17,000 organizations Two in three of this total are direct end clients for AMEC members, while the remainder are originated by PR consultancies The proportion of clients originated through PR firms has jumped this year – probably a reflection of the changing profile of the membership base End clients originated by PR consultancies: 34% Survey year 2009201020112012 Direct84%81%79%66% Via PR16%19%21%34%

21. #amecatwork Measurement Week w/c 15 th September, 2014 An AMEC Global Education Programme initiative

22. The strategic direction What is it? Measurement Week is a key strategic initiative from AMEC to fill the gap between understanding the value of PR measurement and doing something about it! Measurement Week is a high profile international programme to help achieve greater adoption of measurement techniques. International week of AMEC member-led events unified via social media to raise awareness and excitement around the latest thinking in measurement.

23. 23 Launch ideas Strategy is to target the groups who are most vested in the concept rather than promote too heavily among the wider marketing community. Year 1 objective is to build a solid but perhaps not spectacular foundation for future success and keep the concept slightly below the line until momentum has been generated. Encourage AMEC members to spread the word through WoM and through their channels using #amecatwork. AMEC to provide content for publication as stand-alone or as part of broader measurement material to AMEC members at launch and during the week (& published to the Measurement Week holding page.

24. Next steps How will AMEC members be involved? Each AMEC International Chapter will promote Measurement Week within its geography. Each Chapter to look for one flagship property to run during Measurement Week – e.g. collaboration with PR membership group, trade partner, etc. PLUS Special delegate creative session for delegates at International Summit in Amsterdam in June!

25. 25 For further information on the survey: Contacts for AMEC: John Croll +612 9318 4004 john.croll@isentia.com Barry Leggetter + 44 7748 677504 barryleggetter@amecorg.com barryleggetter@amecorg.com