What is AVE
AVE (Advertising Value Equivalency) is a common PR industry valuation method, converting news coverage into equivalent advertising value.
Why calculate AVE?
- Quantify PR results: Give news coverage concrete "value" numbers
- Budget reports: Explain PR investment returns to executives or clients
- Media comparison: Compare different media coverage values
AVE Limitations
- News ≠ Advertising: News credibility usually higher than advertising, purely using ad value may underestimate
- Cannot reflect qualitative effects: Cannot show coverage content, emotional tone, key messages
- Needs other metrics: Recommend also referencing reach, shares, sentiment analysis
PR Multiplier Meaning
Many PR companies apply "PR multiplier" (typically 1.2–2.0x), reasoning that news credibility and persuasiveness usually exceed advertising. This tool provides this option, users can decide based on industry practice or conservative estimates.
Calculation Formulas
Mode A: Print Media
Effective Column-Cm = [ Direct Column-Cm input OR Layout Height(cm) × Columns ] Base AVE = Effective Column-Cm × Rate Per Column-Cm × Insertions Final AVE = Base AVE × PR Multiplier
Mode B: Digital Impressions
Base AVE = (Impressions ÷ 1000) × Reference CPM Final AVE = Base AVE × PR Multiplier
FAQ
What is column-centimeter?
Newspaper/magazine ad pricing unit. "1 column-centimeter" = 1 column width × 1 cm height. For example "20 col-cm" could be 2 columns wide × 10 cm high, or 4 columns wide × 5 cm high.
What if I don't know the media's rate card price?
You can: (1) Request rate card from media sales (2) Reference peer experience (3) Use "full page ad price ÷ full page column-cm" to reverse-calculate
What should PR multiplier be?
Conservative estimate: 1.0 (equals advertising), General recommendation: 1.5 (news more credible), Aggressive estimate: 2.0–3.0 (some industries believe news far outperforms advertising). Recommend establishing unified standard with clients or management.
What CPM for Mode B?
Can reference tool-provided common values, or check platform ad backend (like Facebook Ads Manager), inquire with digital ad agencies, reference industry reports (like eMarketer, MIC).
Can AVE be used directly as ROI?
No. AVE is only "equivalent advertising value," not actual investment return. Calculating PR ROI requires: PR ROI = (AVE - PR Cost) ÷ PR Cost × 100%. Example: Spent $100K on PR, obtained AVE $500K, ROI = (50-10)/10 = 400%
Why "reader" and "circulation" CPMs?
Print CPM: calculates "how many printed" (circulation); Reader CPM: calculates "how many actually read" (readership). Usually reader CPM closer to actual reach, but requires estimating "pass-along rate" or "reading rate".
How to calculate AVE for free newspapers, metro papers?
(1) If media has rate card: use Mode A normally (2) If no rate card: switch to Mode B, estimate impressions using "circulation × reading rate," apply reasonable CPM (like $50–100)