Advertising Value Equivalency (AVE) Calculator
Calculate the estimated advertising value of earned media coverage. Enter the size of the coverage and the standard advertising cost per unit of size in that media outlet.
Calculate AVE
Understanding Advertising Value Equivalency (AVE)
What is AVE?
Advertising Value Equivalency (AVE) is a widely criticized metric that attempts to measure the value of earned media coverage (like news articles, mentions, reviews) by comparing it to the cost of buying an equivalent amount of advertising space or time.
**Formula:** The basic calculation is straightforward:
AVE = Size of Coverage × Advertising Cost Per Unit
For example, if a news article is 50 column inches long and the standard advertising rate for that publication is $10 per column inch, the AVE would be 50 * $10 = $500.
Limitations and Criticism
While simple, AVE is considered by many PR professionals and bodies (like AMEC) to be an outdated and unreliable metric. Key criticisms include:
- It doesn't account for the credibility difference between earned media (often seen as more trustworthy) and paid advertising.
- It ignores the tone, placement, and relevance of the coverage (a negative article the same size as a positive one would have the same AVE).
- Advertising rates vary widely and are often negotiated, making the "standard cost" subjective.
- It focuses purely on output (space/time) rather than outcomes (impact on reputation, sales, etc.).
- It cannot measure online engagement, sentiment, or the impact of social sharing.
Many in the industry advocate for more sophisticated metrics that measure communication outcomes and impact rather than just equivalent cost. Use this calculator with an understanding of its significant limitations.
AVE Calculation Examples
These examples demonstrate the basic AVE calculation (remembering the limitations discussed above).
Example 1: Print Article
Scenario: An article about your company appears in a local newspaper.
Known Values: Size = 80 column inches, Standard Advertising Cost = $15 per column inch.
Calculation: AVE = 80 inches × $15/inch
Result: AVE = $1200
Conclusion: The estimated advertising value of this article is $1200.
Example 2: Radio Mention
Scenario: Your product is mentioned in a 30-second segment on a radio show.
Known Values: Size = 30 seconds, Standard Advertising Cost = $20 per second for that time slot.
Calculation: AVE = 30 seconds × $20/second
Result: AVE = $600
Conclusion: The estimated advertising value of this radio mention is $600.
Example 3: Small Online Mention
Scenario: A small blog post mentions your service, estimated equivalent to a 100-pixel ad space.
Known Values: Size = 100 units (e.g., pixels or custom unit), Standard Advertising Cost = $0.50 per unit.
Calculation: AVE = 100 units × $0.50/unit
Result: AVE = $50
Conclusion: The estimated advertising value of this online mention is $50.
Example 4: Magazine Feature
Scenario: A two-page feature story in a magazine.
Known Values: Size = 2 pages, Standard Advertising Cost = $10,000 per page.
Calculation: AVE = 2 pages × $10,000/page
Result: AVE = $20,000
Conclusion: The estimated advertising value of the magazine feature is $20,000.
Example 5: TV News Clip
Scenario: Your organization is featured in a 45-second segment on a local news broadcast.
Known Values: Size = 45 seconds, Standard Advertising Cost = $150 per second for that broadcast.
Calculation: AVE = 45 seconds × $150/second
Result: AVE = $6750
Conclusion: The estimated advertising value of the news clip is $6750.
Example 6: Online Article (Using Word Count Equivalence)
Scenario: An online article about your event, where the publication sometimes sells space based on word count equivalence.
Known Values: Size = 500 words (equivalent), Standard Advertising Cost = $0.20 per word.
Calculation: AVE = 500 words × $0.20/word
Result: AVE = $100
Conclusion: The estimated advertising value based on word count is $100.
Example 7: Industry Newsletter Mention
Scenario: A brief mention in an industry-specific email newsletter, estimated equivalent to 5 column inches.
Known Values: Size = 5 column inches, Standard Advertising Cost = $40 per column inch in the newsletter.
Calculation: AVE = 5 inches × $40/inch
Result: AVE = $200
Conclusion: The estimated advertising value of the newsletter mention is $200.
Example 8: Podcast Mention
Scenario: Your brand is discussed for 90 seconds in a popular podcast episode.
Known Values: Size = 90 seconds, Standard Advertising Cost = $10 per second for a host-read ad.
Calculation: AVE = 90 seconds × $10/second
Result: AVE = $900
Conclusion: The estimated advertising value of the podcast mention is $900.
Example 9: Trade Publication Article
Scenario: A technical article about your new product in a trade magazine.
Known Values: Size = 1.5 pages, Standard Advertising Cost = $8,000 per page.
Calculation: AVE = 1.5 pages × $8,000/page
Result: AVE = $12,000
Conclusion: The estimated advertising value of the trade publication article is $12,000.
Example 10: Website Review (Using Banner Ad Equivalence)
Scenario: A review of your software on a tech review website, estimated equivalent to a standard large banner ad placement.
Known Values: Size = 1 unit (representing equivalent banner space), Standard Advertising Cost = $2500 per unit (average cost for that ad space equivalent).
Calculation: AVE = 1 unit × $2500/unit
Result: AVE = $2500
Conclusion: The estimated advertising value based on banner equivalence is $2500.
Frequently Asked Questions about AVE
1. What does AVE stand for?
AVE stands for Advertising Value Equivalency.
2. How is AVE calculated?
The most basic calculation is AVE = Size of Coverage × Standard Advertising Cost Per Unit of Size (e.g., column inch, second, page).
3. What units should I use for size and cost?
You must use consistent units. If your size is in "column inches," your cost must be "per column inch." If size is in "seconds," cost must be "per second," and so on.
4. Is AVE a good measure of PR success?
Most modern PR and communication professionals consider AVE a poor measure. It's widely criticized by industry bodies like AMEC for not reflecting true value or impact.
5. Why is AVE criticized?
It doesn't account for credibility differences between earned and paid media, ignores tone (positive vs. negative coverage), relies on often subjective advertising rates, and focuses on output rather than meaningful outcomes like behavior change or reputation.
6. What does "Size of Coverage" mean in practice?
It depends on the media type: column inches for print, seconds for broadcast, or sometimes equivalent ad units, pixel counts, or even word counts for online media.
7. What does "Advertising Cost Per Unit" mean?
It's the standard rate that media outlet charges for one unit of advertising space (e.g., the cost of a single column inch ad, the cost of a one-second radio spot, etc.). This can be hard to determine accurately.
8. Are there better metrics than AVE?
Yes. Modern PR measurement focuses on outcomes like changes in awareness, understanding, attitude, and behavior among target audiences, as well as impact on business objectives (sales, leads, website traffic, etc.). Frameworks like the AMEC Integrated Evaluation Framework offer alternatives.
9. Can I use this for social media?
Calculating a meaningful "size" and "cost per unit" for social media is extremely difficult and subjective, making AVE particularly unsuitable for social channels. Engagement metrics are typically preferred.
10. Does this calculator account for multipliers (e.g., 3x multiplier)?
No, this calculator performs the basic, simple AVE calculation (Size * Cost Per Unit). Some outdated AVE practices added multipliers (e.g., multiplying by 3 to account for earned media's higher credibility), but these are arbitrary and further invalidate the metric. This tool sticks to the basic formula.
