Before delving into the strategy in dealing with P.O. & E media let’s put this in context and define what they are.
Over time, we’ve seen the choice of channels go from fairly slim pickings, to an explosion of new channels and devices. Devices which are converging and accelerating in growth at an enormous rate and allowing us access to consumers in different places at various moments of receptivity. From social media channels, to mobile, ,art TVs, and even Google glasses, which in itself open up a whole new world in converging Paid Owned and Earned channels. We are also seeing more traditional media (like TV and OOH) become digitsed, and therefore allowing us to better track and understand consumers.
This explosion means that consumers are across many different touchpoints and expecting a consistent and engaging experience from brands. Advertisers are having to differentiate their competitive position in order to meet these demands and connect with your customers, or potential customers.
And this means that agencies must also adapt our approach within our domains of expertise; as well as our understanding of other disciplines; offering new services; and being able to collaborate well with multiple 3rd parties. By achieving this, we will be able to meet this the evolving needs of our clients.Using the more advanced levels of Pine and Gilmore’s model, we can draw a comparison to a model for agency maturity in which agencies are progressing from delivering services to creating platforms for experiences for the customers of their clients, and finally to guiding transformation within the client organisation itself and with the relationship that client has with its customers. This progression of value necessarily changes the tools and technologies required by the agency, the collection and application of data, the skills and culture the agency requires. Delivering services Agencies are commissioned to deliver traditional marketing and advertising services; a linear, one-way, broadcast model using paid media. Staging experiences The role of the agency shifts towards creating, curating and managing customer experiences on behalf of the client. This involves a two-way, interactive model using paid, owned and earned media, and a move toward longer-term platforms, operational involvement, optimisation and iteration using the smart application of data. Guiding transformations Agencies move to creating real change within organisations, helping them adapt to rapidly changing customer needs. This requires a more sophisticated single customer view, joined-up data and systems, an integrated approach with client data and far more agile and iterative approaches. This is where POE media comes in…
That’s why brands are moving away from old models which view marketing channels in silos, with their own KPIs and objectives.
And adopting the Paid Owned and Earned universe which accommodates this proliferation of devices and growing set of advertiser assets.Owned can be any asset an advertiser possesses. It used to be just your website but these days we are seeing more and more assets brands need to take ownership of. Paid does exactly what it says. It’s bought media, such as Adwords advertising, Ad Exchange trading, Sponsored Stories. Earned is the conversation generated, i.e. the customer becomes the channel. We think of the outdated term “viral”.
Their roles vary but Owned is there to build long term relationships, by entertaining and informing their customers via Earned media. Paid acts as a catalyst in feeding the Earned conversation and driving to your Owned assets. While Earned is about listening and responding.Each of these channels have their individual challenges and benefits and it’s because of this that they must work in harmony. One channel feeds the other. Brands need to create a ‘virtuous cycle of consumer involvement’ in order to drive consumer loyalty and ultimately sales. Each channel is not mutually exclusive and they feed one another. Facebook announced an imminent update to the look and feel of its newsfeed which plays further in to the hands of POEM. As you can see from the chart above Facebook operates in Paid, Owned and Earned space. With it’s apps being the owned, sharing newsfeed being the earned, and sponsored posts (or stories) in the paid. Facebook also announce Graph Search (in beta in the US) which is Search based on relationships, giving further value to the POEM conversation.And we’re also seeing these channels converge. This chart illustrates that the channels are not mutually exclusive and one channel feeds the other.brands need to create a ‘virtuous cycle of consumer involvement’ in order to drive consumer loyalty and ultimately sales. What that means is that successful brands leverage the power of consumer participation to grow involvement in earned and owned media, and that successful brands find a distinct recipe for driving this participation.
As in the following example. Google incorporates Social Signals more and more into it’s organic results, but you can also see this with its +1 buttons across video, Display, PPC ads and also websites. And here you have an example of the owned Google+ page being shown alongside a map and the Paid Search results when searching for “toyota”. If you update your Google Post frequently, Google rewards you by showing the G+ page alongside the search query, giving the brand more page real estate and opportunity to grow its community and display further messaging.And part of what makes Paid Owned and Earned so effective as a strategy is the advocacy provided by peers and this doesn’t have to be shared from just Owned assets – it can also be delivered from Paid. As we can see in this example from BizarreVoice. They feed the advocacy of Earned media into the Paid ads.
But these ads need to be driven by and drive to meaningful content. Content Marketing is so important to generating a good community base and this is why Content Marketing is the number one focus of advertisers in 2013.
And you can do this through content curation,crouwdsourcing, etc..Many are looking at UGC, but content curation is a fast growing trend. This uses technology in conjunction with human editorial resource to help find, filter and prioritise relevant content. It can also be socialised to become “social curation”, such as the MTV Music Meter which provides a ranking of the Top 11 artists based on “real-time buzz” on the web, tweets, social mentions, blogs, etc.. Companies such as Intel are doing this well. Their IQ Social publishing is an industry first for integrated media curation. It’s based on algorithms and then curations. It discovering content with an algorithm that recommends it for various purposes. Intel’s own employees are then curating that content and pushing the button and creating this new platform that is resulting in a huge amount of resonance on social platforms.
So if you get create and curate meaningful content you make it more shareable and develop a communicate that advertises on your behalf, removing reliance on paid media.Something not unnoticed by the the big brands like Toyota and Unilever.
Here we see Unilever’s strategy to reduce Paid media expenditure to 60% by 2015, with an increase in Earned media.
And this is a trend many advertisers are waking up to. Many advertisers are shifting their focus to Earned/Owned, with Paid digital still prominent for now, and traditional media taking a hit.Advertisers across the board are starting to take notice. Monies continue to be shifted from traditional, expensive tactics toward digital – especially earned media – though it’s rarely a one-to-one exchange. More often, a dollar lost from TV and print budgets becomes 20 cents of digital.While only 22% of client marketers are forecasting increases in traditional media spends in 2012, 50% projected an increase in paid digital media and two thirds say they expect to increase earned media efforts in 2012.
…making Earned Media the King, Owned the Queen and Paid the Jester.Earned driven by Word of Mouth and publishing content into free channels;Owned prioritised by Natural Search and Social brand platforms;And Paid primarily powered by PPC, enabling people to find their brand and information, as well as drive awareness, but also video ads which are highly engaging.So we can see that Earned media has become king. In 2012 Soda report, Digital marketers ranked their priorities between POEM and then indicated their focus within each category.The ‘build it and they will come’ adage no longer applies. With marketers continuing to make major investments in brand sites, social platforms and branded content in 2012, facilitating the discovery of that content via search efforts and establishing a responsive, consumer-centric approach in the social realm have become increasingly important priorities.Brands plan on turning to more compelling tactics for storytelling, such as integrated sponsorships, branded content and the sight, sound and motion of video. Interest in web display, mobile banners and in-game ads has declined.
So many advertisers appreciate that this needs to be embraced but what are the obstacles from implementing a strategy around it right now? The Teams are Too Far ApartMany marketing sub-groups are too “territorial, competitive and political”.Many times, the group handling social media sees the need to integrate first, but don’t have the pull to make it happen. Additionally, the silos mean integrated deployments are cumbersome, if not impossible.2. Agencies are Too SpecializedMany of the agencies marketers focus on what they know. They might specialize in a specific channel like email, direct, broadcast or social. The result is they struggle to offer fully integrated campaigns. And with new channels and tools constantly emerging, they have a hard time keeping up.One of the challenges that agencies face is that it is exceptionally difficult to achieve a level of mastery in both strategy and execution across all forms of digital marketing across all markets. The level of complexity involved when managing multichannel, multimarket campaigns and the continual change within this space means that goalposts are both distant and moving. Despite their ability to plan and deliver on a large scale, global agency networks can lack the local and specialised knowledge to succeed within individual markets. On the other hand, local and specialised agencies do not have the ability to scale campaigns, while underdeveloped management systems may mean that they fail to win the trust of major clients. The sum value of local and global agencies working together in the interests of clients is greater than the parts; those who work in this way are more likely to succeed in challenging conditions. Rather than prioritising resources too thinly, agencies are more likely to succeed if they build relationships with trusted partners that can increase their capabilities. When looking to provide an integrated approach to solving client problems, agencies should build up a network that helps support them in delivering the best value for their clients. 3. The Tools are Too NarrowAs new platforms and channels emerge, many businesses are offering unique products and features for making the most of your marketing investment. But inventiveness isn’t the issue; integration is. The tools often don’t talk to each other, resulting in piecemeal delivery and measurement.
So what’s the right approach to succumb these challenges and make it happen?
The correct mix of POEM is not something which is standardised. Brands need to configure this weighting according to YOUR audience, consumer interaction touchpoints, geography, and industry! There isn’t necessarily the same weighting between each channel. This varies dependent on your strategy (whether it’s always on or campaign based), geography, consumers, objectives and industry, as you can see from the illustration above. Initiative’s analytics work for its clients around the world has consistently shown us how consumer involvement links to brand growth. In the US we found a very strong link between earned media and sales for a mobile brand - 10% of mobile handset sales were driven directly by the amount of word of mouth that existed among shoppers and customers, showing the power of consumer involvement. In electronics, they found owned media was a huge driver of brand growth. Across Europe, traffic on the brand website for our electronics brand was a powerful predictor of sales. In fact, growing customer involvement with the site by 1% meant a half a point sales growth. So the ROI on customer involvement can be very high.To further understand the relationships between paid, earned and owned media, we studied the top three brands in three categories: mobile network providers in the UK, cars in Germany, and home electronics in the US. We also analyzed the leading shampoo brand in AustraliaThe success of these brands is in part due to their ability to effectively manage the paid, earned, owned relationship We created a total of 67 models across these categories which examined the link and interaction among paid, earned and owned channels and found some very interesting and powerful relationships. Overall, 50% of earned activity was influenced by paid and owned. This is a clear demonstration of how successful marketing can drive consumer participation. From our analysis, we discovered that each category has its own set of behaviours. Among top car brands in Germany we found that 37% of earned (online word-of-mouth) was created by visits to the brand website (owned media). However, the shampoo sector in Australia showed that paid media was driving 60% of word-of-mouth - also a powerful relationship, but this time driven by paid, as opposed to owned. And in the mobile phone category in the UK, our analytics models showed us the ability of advertising in TV, print and online to motivate people to go to the brand website, a valuable sales channel for the category. Different types of paid media were seen to be more or less influential. In the mobile phone category, press and TV had a very similar incremental effect on earned and owned activity. In the car category, press drove1.6 times more owned activity than TV. And, in consumer electronics TV accounted for over 80% of media investment and was therefore the most significant media channel.“Earned media” via content marketing is seen as more effective than “bought media” as: l It is usually cheaper to create. l Distribution online is “free”. l Word of mouth is still the most effective form of marketing so peer-to-peer endorsement is ideal. l Ad skipping technologies (online, TV etc.) mean increasing amounts of bought media are not being seen. l Earned media delivers inbound links online which is now the key factor in a brand’s search engine rankings and improved search results = direct ROI. l Content, and earned media, have a long „shelf life‟. Unlike advertising or marketing campaigns, which are ephemeral, content can be considered an asset which „keeps on giving‟ via continued direct traffic from links and indirect traffic via improved search rankings. l Content marketing can also target the „Long Tail‟ i.e. niches, including valuable ones, which are hard to reach with mass advertising or many forms of „traditional‟ bought media. Optimising content against particular keyphrases and using targeted online distribution can deliver laser-like targeting. Many organisations have launched „social media‟ or „online customer engagement‟ initiatives but rapidly find that these are not sustainable when treated as „campaigns‟. They are an ongoing commitment which, crucially, requires *content* (in its various forms), to fuel the engagement and conversation. Thus, again, a rapid rise in organisations investing in online content.
Altimeter has a great model which is well worth looking up.Converged media is really about mixing things together to create something new and better. There are at least criteria today that companies need.First is strat; and then what you need to do to organise internally and your agencies and vendors; third is building things together all coming together; finally, to analyse and see what works.
Strategy is first understanding what type of customer you are trying to reach; understanding their touchpoints and behavioural trends and then what the right mix of channels is to reach them.Organization is hugely important, especially for driving the Earned conversation. All parties involved must be aligned & incentivised in message & execution.Then content & creative needs to be aligned across channels. And ensure production can be nimble enough to shift to wherever your customers are migrating as you do real-time listening of channels & devices.In order to do the analysis you must have social listening tools in place. And mine for proactive insights to inform what you do next.
Once you’re done, do it all over again. As you can see, real-time insights & measurement should site at the hub of this continuous process.This is just one model. There are many more.
And while you will need an ‘always on’ and consistent approach to your POE media strategy occasionally you will have campaign focused initiatives and channel selection will vary.
This is an example of a campaign based approach. When you launch a product, for example, you need to understand what the right channel mix might be. Different strategic objectives require varying solutions.
There are also a host of tools coming out which deal specifically with this strategy…too many to mention here. These are great tools but have the API feed into a data hub which will allow you to view all data in a way that is customised to meet the needs of various members of your company and your agencies.Unified Reporting / POEMThe exponential growth of social media means more data, more complexity, and more fragmented reporting. Combining disjointed reports from paid campaigns, owned audiences, and earned media is difficult, and often limits insights.Unified's Strategists use the Social Operating Platform to enable brand marketers' true POEM (Paid, Owned, Earned Measurement) strategies. In a single real-time reporting dashboard, brands see the impact of social campaigns on their owned audiences along with their earned media growth. These reports translate social activity into dollars and cents, allowing for ROI measurement across multiple platforms.Unified's reporting dashboard empowers marketers with the insights they need to become social experts. Now marketers have one view into true POEM and can apply actionable insights to their future campaignsLet’s translate this into Social Media. Your biggest fans are called advocates and they have the power to influence the decisions of countless others. To activate your advocates you need to find them and give them reasons and resources to support your cause. Marketers commonly approach this from the perspective of seeking out whoever is retweeting brand content or posting on brand Facebook pages. That’s a good and necessary start, but you’ll quickly find that advocates are everywhere. Finding them and assessing how best to engage with them is a full time job in and of itself. Of course, there are tools out there that can speed things up. Dachis Group has “Advocate Insight,” which automates the process of identifying your most passionate and influential advocates. Your list might look something like the graphic below:Once you have a list of your advocates, reach out to them. Create highly engaging content that they can gravitate around. Talk to them when they make comments on your content. Make your biggest fans feel special and watch the amplification. If you are passionately engaging your advocates, your efforts will be multiplied many times over by the shares, retweets, and blog posts written about you. This is called “earned media,” and it’s the holy grail of marketing. People trust others more than they trust you. If you have fans spreading your message, you’re getting some serious ROI on your time.
Map your brand’s touchpoints. This is the number of ways that consumer interact with your brand. Some of the most influential touchponts may exist in areas in which brand marketers don’t give much focus. Brands should invest in undertaking a rigorous and disciplined audit of all their touchpoints across paid, owned and earned, map out how they connet and understand which ones have the most influence. Connect to the consumer to at every touchpoint in the purchase path. As consideration for brands increases, purchase decision-making is extending into new areas online and offline. Brands need to be everywhere consumers are considering their products and are receptive to the brand messaging. This generally requires a diversification of the marketing mix to connect with consumers in new ways. Track and measure consumer involvement. Marketers in search of metrics Use local insights to drive local plans.Give consumers an experience, not a rotation of messages.
Paid owned earned adtech chris d
PAID OWNED EARNED MEDIAEngaging Content & Leveraging the Mass Consumer Market By Chris Dutton Media Director, Hothouse
Explosion of devices and channels Posters /1980s OOH RadioMedia Consumer Press Direct TV / Cinema
. Brands must differentiate to connect with consumers
PAID EARNED• Typical corporate media spend. • First person commentary and• Drives people to Owned Media content about the brand posted and shared across a variety of venues. • “Social Media” outlets also support Bought and Owned media. Radio Product Mags Site(s) Newspapers Corporate „Advertising‟ Website Online ads Outdoor Television Natural Search Campaign OWNED Affiliates Campaign Video sharing Site(s) Social networks Blogs Community Social Media Forum Email Personal pages