Learning Outcomes
You will understand how AVE is calculated.
You will learn which data sources the AVE metric can be applied.
You will understand how you can use AVE for you Media Monitoring.
Understanding Advertising Value Equivalency (AVE)
AVE stands for Advertising Value Equivalency and is used to reveal the monetary value of unpaid content. Through a variety of metrics and calculations, AVE estimates the cost it would have been to advertise a particular article, piece of content, or interview, had it been paid for. These metrics and calculations take into account the size and reach of an article as well as the prominence of the publication. Understanding AVE is essential in obtaining a valuable evaluation of the effectiveness of public relations outreach and media relations programmes.
How is AVE Calculated?
AVE is calculated by dividing the equivalent dollar cost (in advertising) of a particular media opportunity by the number of column inches it occupied, or its airtime length. This figure is then compared to the rate card cost, which is the rate a publisher charges for advertising. AVE is then broken down into what is known as a cost-per-thousand (CPT) exchange rate, which is the cost per thousand impressions. This gives an estimate of what the article may have cost had it been an advertisement rather than a piece of editorial content.
Which Data Sources are AVE Available For?
AVE is only available for media monitoring data sources, such as Print News, Radio, TV, Podcast, and Online News. Generally, AVE is only used for content that is in a media outlet owned by the publisher, not any other content that references the publisher’s product or service.
📊 Metric Insight: AVE is an essential tool when executing any public relations strategy, as it allows communicators to calculate the cost of these earned opportunities compared to what they would have cost if they had been paid. This gives a more accurate assessment of the success of public relations programs in terms of their reach and impact within a particular target audience or market. AVE also permits comparison of earned media to other media buying options, providing insight into the cost efficiencies of each. Finally, AVE can track whether a publication’s coverage is increasing or decreasing over time and allows companies to more accurately calculate the value of their earned opportunities.
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