This document summarizes a presentation on using paid, owned, and earned media to build brands. It discusses how brands can use different combinations of these three categories of media (POE) in their strategies. The presentation reports on a study that measured the effects of four POE combinations on brand equity for eight brands over six months. It found that using a combination of paid and owned media had the largest positive effect on brand awareness and impression. While earned media added trust, it also seemed to disrupt a clear brand image. The most effective media strategies used paid, owned and earned media together rather than in isolation.

1. EAA’s13th International Conference on
Research in Advertising
A BRAND POEM HOW TO BUILD BRANDS COMBINING PAID, OWNED & EARNED MEDIA
Presenting: dr. Marnix van Gisbergen I NHTV University of Applied Sciences I Gisbergen.M@nhtv.nl
Research: DVJ Insights (L. Hulsebos; R. Jansen) I Sanoma Media (D. Hoogervorst, S. Kreek & R. Witteman) I NHTV

2. Complex media landscape
Too many (new) media, old ways to measure reach not sufficient
Definitions are outdated: what do we mean with “did you watch television yesterday?”

3. How to simplify?
Useful media typology or categorization? Help understand the process
In doing so, we always will see only part of the whole ‘media ecosystem’
Paid, Owned and Earned Media Distinction
It helps dividing budget and based on control (brand strategy)
a) Content (control and media ownership)
b) Content reach (investment)
c) Content creation (brand itself, the consumer or both)
See also Baetzgen and Tropp, 2013; Corcoran, 2009; De Bakker, 2009; Goodall, 2009; Lieb and Owyang, 2012); Stephen and Galak, 2012

4. Distinction by media channel, useful but still problematic
For instance Facebook can be owned as well as Earned

5. Distinction by Content Reach (investment): only part of the equation
Usefull but also problematic: for instance customers are also reached via paid media and it is not only fans that engage in earned media

7. How to spend my money?
Our study: How to build strong brands via Paid, Owned & Earned Media?
We did not measure the effect on Reach (we assumed equal reach)
We did not measure the effect on ROI (buying behavior)
Brands use different POEM
strategies, but it is unclear
whether these strategies
result in different brand
effects.

8. We did not create a Paid and Earned (or Earned only) group as brands that not use, or have not
made use, of owned media almost not exist.
Most brand still use paid or profit from paid activities in the past
No brands that only make use of earned media (without having owned media)
‘Paid only’ does not exist, however many brands only reach (potential) consumers via paid
OWNED
+
+ +
PAID PAID
EARNED
OWNED
PAID
EARNED
+
OWNED
Owned + Earned only brands almost do not exist

9. Comparing the four groups is a challenge
Challenge: media selection (earned = fans), media confrontation, measuring brand change (takes time)

10. Design
Brand confrontations
Facebook: 75%
YouTube : 50%
Twitter : 29%
LinkedIn : 27%
Hyves : 21%
Join the next research meeting
+ Extra online survey
Explanation of findings
Participants: 859
Age: 20-49 I 49% female
Participants: 1831
ONLINE: 18,7 hours per week
7.3 hours on social media

11. Brand confrontations
Confrontations outside questionnaire (assignments)
Confrontations within questionnaire

12. Brand selection
EIGHT BRANDS
2 x car
2 x mobile phone
2 x energy supplier
2 x meal mixes
Strong and ‘weak’
counterparts
Energy Supplier Example
Eneco versus Greenchoice
strong weak
Brand user : 18% 6%
Brand familiar : 3.8 2.5
Brand attitude : 4.0 3.7

13. Brand effects
Brand effects based on the customer-based brand equity (CBBE) model (Keller)
items were adopted from scales used in CBBE effects studies
We composed a brand score out of the 7-point Liker scales (added scores and calculated the
difference between 3 measurements)

14. MEDIA frequency, evaluation and behavior
BRANDbehavior and involvement (+ likes)
PRODUCTUsage and buying behavior
Control variables

15. Results (aggregated Brand scores)
Brand impact score: the increase between M1 and M3 (increase within 6 months)
+ 221
+ 261
+ 216
+ 227
All media types can be used to build and maintain strong brands
POEM activities have the largest positive effect on salience (awareness)
PO scored best on all brand building blocks

16. Better brand effects for low involvement products
High involvement: Cars and Mobile Phone Providers
Low involvement: Energy Supplier and Meal Mix brands
.
400
350
300
250
200
150
100
50
0
Paid Paid Owned Paid Owned Earned Owned Earned
Low High

18. Best brand
impression
Most trustworthy
Source
1. Brand website 1. Info friends
2. Commercials 2. Online review
3. Brand magazine 3. Brand website
4. Magazines 4. Seller (shop)
5. Info friends 5. Magazines
Interpretation
Self reports: POEM behavior and Brand effects
50%not interested in brand recommendations made
by friends (46% use websites more often for brand info)
25%use social media more often to see what other
consumers have to say about brands

19. Conclusion
Paid + owned = clarity and consistency
Earned = trust but negative and disruptive
 Advertising and media effort is worth the effort
 PO showed the largest increase in brand equity
It creates a good overall brand impression.
 Earned media add trust to the brand
But seem to disrupt a clear brand image
 Media planning is essential
 Simply using more media seems a waste of money
? Efficient
? Reach
? ROI
Contact: email marnix van gisbergen