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1 Sean Corcoran, Senior Analyst, Forrester David Armano, Senior Vice President, Edelman Digital Rob Fuggetta, Founder/CEO, Zuberance Twitter hashtag: #PaidvEarned Paid vs Earned Media April 19, 2011
Paid vs Earned Media 2 Moderator: David Spark Spark Media Solutions
Paid vs Earned Media 3 Hashtag for event: #PaidvEarned
4 Successful earned media campaign techniques B2B, mid-size,communication  Integration strategy of owned, paid, earned Best uses of each channel for highest ROI, budget mix ROI evaluation, measurement methods, success metrics “Viral lift,” conversion rates, tracking How to manage, scale, automate earned campaign Resources and tools Trends You asked us about…
5 Participant Profile:  Title & Role Title Role & Responsibility N = 336, Online survey, fielded April 12 – 18 2011
6 Current Spends and Trends Q:  How are you currently spending resources on Media? Rank in order of importance.*   Q:  What % of your marketing budget has shifted from Paid to Earned Media? Owned Budget shifts from Paid to Earned Earned Paid *N = 336; score is a weighted calculation
Marketers believe customers go to owned media channels most* 7 *N = 336; score is a weighted calculation
8 Marketers are evenly divided on views Q: Which category has the biggest impact on your business in terms of generating sales, new customers, and revenue from marketing-related efforts?  Why?   ,[object Object]
Paid media such as search engines, banner ads or other advertising
Earned media such as reviews, online forums, other sources for peer adviceN = 336
Biggest impact on business:  Owned 9 ,[object Object]
[I have] control over content in an environment that directly sells my brand
[Owned media] has the most information and details- [and is a] trusted source of accurate info [Owned media] is used as a research tool, it showcases the most information about our brand in one place.   All Paid & Earned Media drive back to our website.
Most of information about what the company does is contained within owned media, giving customers a better understanding of what we're all about.
[It is the] number one area where customers like to book and compare prices.
We drive everyone to the website. Also, people do searches indepenedently, and will be led there. Finally, the obvious reason is that we sell our product on our website through a hosted booking engine. N = 336, quantitative and open-ended comment analysis
Biggest impact on business:  Paid 10 ,[object Object]
Direct response campaigns drive the most the most in-store and onine traffic
Awareness is a key issue in videogames - a launch driven business - and we do not feel Earned or Owned Media gets us enough reach (for most releases).
It's the highest reaching vehicle that creates awareness and drives traffic to your "owned" properties
Very measurable ROI - easy to track how many leads, sales, etc came directly from the investment.
It's measurable and thus gets the most budget N = 336, quantitative and open-ended comment analysis
Biggest impact on business:  Earned 11 ,[object Object]
We're a B2B focused brand, so our customers tend to know who we are in the industry. We really rely on the word of mouth on our technology to sell intricate details of our product to buyers.
Word of mouth recommendations are our largest source of referrals and brand discovery/awareness (new sales). Luckily we are one of the few brands that believes credibility, trust, and limited transparency are crucial to success.
3rd party endorsements, whether from peers, other buyers or critical reviews, have great impact.
Customers are looking at how others use products in similar ways and then make value judgments based on that information. Credible & trustworthy Peer references Third-party influence N = 336, quantitative and open-ended comment analysis
Paid vs Earned Media 12 Sean Corcoran Senior Analyst	 Forrester Research Inc @seancor
Shifting The Balance Of Media Sean Corcoran, Sr. Analyst April 19, 2011
Word-Of-Mouth reigns again
This social media thing is real  More than 4 out of 5 online U.S. adults now participate in social media each month …and nearly 7 out of 10 European online adults too Sources: Forrester Social Technographics Survey Q4, 2009
Social networks are really popular 59% of U.S. online adults are visiting social networks at least once per month …and 50% of online Metro Chinese adults too Sources: Forrester Social Technographics Survey Q1, 2010
People are VERY active with social media Nearly one third of US online adults are “Conversationalists” – they post status updates on social sites at least weekly Sources: Forrester Social Technographics Survey Q1, 2010
Word-Of-Mouth Is Now Media (Earned Media) Word-of-mouth impressions made by people on other people online in the U.S. in 2009: 500 Billion Source: Forrester North Americans Technographics  Empowerment Survery Q4 2009
And It Lives On
[object Object]
 Blog posts & comments
 Listening platforms
 Volume, Sentiment, etc.
 Paid Search
 Display ads
 Video ads
 Sponsorships
 Web site
 Mobile site
 Facebook
 Twitter
 YouTube“Earned, Owned, Paid” redefines the marketing mix Earned Media “The Result” Paid Media “The Catalyst” Owned Media “The Portable Brand”
Brands can now build long term socially-enabled platforms, rather than just short term campaigns
Marketers have a tremendous opportunity to energize their advocates and create earned media 16% of the online consumers generate 80% of online word-of-mouth impressions
Paid media (advertising) is the catalyst
Social media has become the interactive platform for TV
The “true reach” of the Super Bowl includes both earned and paid media 75 million total online views with 55,000 comments and over 185,000 ratings
O + P = E
What It Means: An up hill battle for marketers
Marketers have been on the hunt
…but the hunters have become the hunted
Marketers must adapt Adaptive Marketing: A flexible approach in which marketers respond quickly to their environment to align consumer and brand goals and maximize return on brand equity.
In the adaptive marketing era… ALL of marketing evolves from a focus on push to pull The Groundswell (social media) is mainstream All marketing communication is “always on” Consumers move from passive audience to active participants Brands must publish and update content on a regular basis Intelligence drives decisions in real time Loyalty and Influence become the key drivers of success
Recommendations Start thinking about marketing to people Most interactive marketers actually market to browsers, phones, and email addressess Identify your advocates immediately  Use listening platforms to identify the most influential and NPS to identify the most loyal Build owned media platforms that enable advocates to promote the brand Leverage tools like Facebook Open Graph and Ratings and Reviews Create cross-team processes  Share real time data and processes for acting on it across marketing, PR, customer service, IT, etc. Recognize the true cost is in resources You can’t buy earned media, you must empower the organization to cultivate it Rethink your metrics Include earned media metrics in your paid media analysis Measure the impact paid media has on your owned and earned media assets Incorporate loyalty and influence as key metrics for any marketing initiative
Thank you Sean Corcoran @seancor www.forrester.com
Paid vs Earned Media 35 David Armano Senior Vice President	 Edelman Digital @armano
MEDIA PROPERTIES, OVERLAPS & OWNERSHIP MEANINGFUL ENGAGEMENT IN A CONNECTED WORLDDavidArmano, SVP Edelman Digital  | @armano
DIGITAL MEDIA  PROPERTIES & PLATFORMS
Digital properties Websites Custom Built PortalsInternal/Enterprise OWNEDproperties EARNEDmedia 38
AdvertisingBannersDisplayPaid Endorsements Digital properties Websites Custom Built PortalsInternal/Enterprise Rich Media Content  OWNEDproperties PAIDmedia 39
AdvertisingBannersDisplayPaid Endorsements Digital properties Websites Custom Built PortalsInternal/Enterprise Rich Media Content  OWNEDproperties PAIDmedia Partnerships Influencer networksBranded entertainmentNiche Platforms EARNEDmedia 40
AdvertisingBannersDisplayPaid Endorsements Digital properties Websites Custom Built PortalsInternal/Enterprise Rich Media Content  OWNEDproperties PAIDmedia Partnerships Influencer networksBranded entertainmentNiche Platforms EMBASSIES EARNEDmedia SOCIAL platforms outposts RELEVANT Message boards blogosphere Influencer engagement 41
THE “CLOVERLEAF” WHERE MEDIA LIVES TODAY
43
SEARCH & SOCIAL: HOW DIGITAL MEDIA SPREADS
45 Search: Information based + 1. Digital participant initiates search(information) 3. Traffic directed & media sharedvia social networks and e-mail  2. Results ranked by authority/quality  Source: David ArmanoEdelman 2011, edelmandigital.com
46 Search: Information based + 1. Digital participant initiates search(information) 3. Traffic directed & media sharedvia social networks and e-mail  2. Results ranked by authority/quality  Source: David ArmanoEdelman 2011, edelmandigital.com Social: Influence based 3. Conversations & social sharing about media influence search results and rankings 2. Media digested, conversed aboutand shared 1. Digital participant views mediafrom social connection (relationships)
47
EARNING MEDIA  THROUGH OUTREACH
FIRST DETERMINE WHO HAS THE RIGHT INFLUENCE 49
Source: Edelman 2011, edelmandigital.com 50
THE FOUR C’S FORMEANINGFUL ENGAGMENT IN A CONNECTED AGE

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Zuberance - Paid Vs Earned Media

  • 1. 1 Sean Corcoran, Senior Analyst, Forrester David Armano, Senior Vice President, Edelman Digital Rob Fuggetta, Founder/CEO, Zuberance Twitter hashtag: #PaidvEarned Paid vs Earned Media April 19, 2011
  • 2. Paid vs Earned Media 2 Moderator: David Spark Spark Media Solutions
  • 3. Paid vs Earned Media 3 Hashtag for event: #PaidvEarned
  • 4. 4 Successful earned media campaign techniques B2B, mid-size,communication Integration strategy of owned, paid, earned Best uses of each channel for highest ROI, budget mix ROI evaluation, measurement methods, success metrics “Viral lift,” conversion rates, tracking How to manage, scale, automate earned campaign Resources and tools Trends You asked us about…
  • 5. 5 Participant Profile: Title & Role Title Role & Responsibility N = 336, Online survey, fielded April 12 – 18 2011
  • 6. 6 Current Spends and Trends Q: How are you currently spending resources on Media? Rank in order of importance.* Q: What % of your marketing budget has shifted from Paid to Earned Media? Owned Budget shifts from Paid to Earned Earned Paid *N = 336; score is a weighted calculation
  • 7. Marketers believe customers go to owned media channels most* 7 *N = 336; score is a weighted calculation
  • 8.
  • 9. Paid media such as search engines, banner ads or other advertising
  • 10. Earned media such as reviews, online forums, other sources for peer adviceN = 336
  • 11.
  • 12. [I have] control over content in an environment that directly sells my brand
  • 13. [Owned media] has the most information and details- [and is a] trusted source of accurate info [Owned media] is used as a research tool, it showcases the most information about our brand in one place. All Paid & Earned Media drive back to our website.
  • 14. Most of information about what the company does is contained within owned media, giving customers a better understanding of what we're all about.
  • 15. [It is the] number one area where customers like to book and compare prices.
  • 16. We drive everyone to the website. Also, people do searches indepenedently, and will be led there. Finally, the obvious reason is that we sell our product on our website through a hosted booking engine. N = 336, quantitative and open-ended comment analysis
  • 17.
  • 18. Direct response campaigns drive the most the most in-store and onine traffic
  • 19. Awareness is a key issue in videogames - a launch driven business - and we do not feel Earned or Owned Media gets us enough reach (for most releases).
  • 20. It's the highest reaching vehicle that creates awareness and drives traffic to your "owned" properties
  • 21. Very measurable ROI - easy to track how many leads, sales, etc came directly from the investment.
  • 22. It's measurable and thus gets the most budget N = 336, quantitative and open-ended comment analysis
  • 23.
  • 24. We're a B2B focused brand, so our customers tend to know who we are in the industry. We really rely on the word of mouth on our technology to sell intricate details of our product to buyers.
  • 25. Word of mouth recommendations are our largest source of referrals and brand discovery/awareness (new sales). Luckily we are one of the few brands that believes credibility, trust, and limited transparency are crucial to success.
  • 26. 3rd party endorsements, whether from peers, other buyers or critical reviews, have great impact.
  • 27. Customers are looking at how others use products in similar ways and then make value judgments based on that information. Credible & trustworthy Peer references Third-party influence N = 336, quantitative and open-ended comment analysis
  • 28. Paid vs Earned Media 12 Sean Corcoran Senior Analyst Forrester Research Inc @seancor
  • 29.
  • 30. Shifting The Balance Of Media Sean Corcoran, Sr. Analyst April 19, 2011
  • 32. This social media thing is real More than 4 out of 5 online U.S. adults now participate in social media each month …and nearly 7 out of 10 European online adults too Sources: Forrester Social Technographics Survey Q4, 2009
  • 33. Social networks are really popular 59% of U.S. online adults are visiting social networks at least once per month …and 50% of online Metro Chinese adults too Sources: Forrester Social Technographics Survey Q1, 2010
  • 34. People are VERY active with social media Nearly one third of US online adults are “Conversationalists” – they post status updates on social sites at least weekly Sources: Forrester Social Technographics Survey Q1, 2010
  • 35. Word-Of-Mouth Is Now Media (Earned Media) Word-of-mouth impressions made by people on other people online in the U.S. in 2009: 500 Billion Source: Forrester North Americans Technographics Empowerment Survery Q4 2009
  • 37.
  • 38. Blog posts & comments
  • 49. YouTube“Earned, Owned, Paid” redefines the marketing mix Earned Media “The Result” Paid Media “The Catalyst” Owned Media “The Portable Brand”
  • 50. Brands can now build long term socially-enabled platforms, rather than just short term campaigns
  • 51. Marketers have a tremendous opportunity to energize their advocates and create earned media 16% of the online consumers generate 80% of online word-of-mouth impressions
  • 52. Paid media (advertising) is the catalyst
  • 53. Social media has become the interactive platform for TV
  • 54. The “true reach” of the Super Bowl includes both earned and paid media 75 million total online views with 55,000 comments and over 185,000 ratings
  • 55. O + P = E
  • 56. What It Means: An up hill battle for marketers
  • 57. Marketers have been on the hunt
  • 58. …but the hunters have become the hunted
  • 59. Marketers must adapt Adaptive Marketing: A flexible approach in which marketers respond quickly to their environment to align consumer and brand goals and maximize return on brand equity.
  • 60. In the adaptive marketing era… ALL of marketing evolves from a focus on push to pull The Groundswell (social media) is mainstream All marketing communication is “always on” Consumers move from passive audience to active participants Brands must publish and update content on a regular basis Intelligence drives decisions in real time Loyalty and Influence become the key drivers of success
  • 61. Recommendations Start thinking about marketing to people Most interactive marketers actually market to browsers, phones, and email addressess Identify your advocates immediately Use listening platforms to identify the most influential and NPS to identify the most loyal Build owned media platforms that enable advocates to promote the brand Leverage tools like Facebook Open Graph and Ratings and Reviews Create cross-team processes Share real time data and processes for acting on it across marketing, PR, customer service, IT, etc. Recognize the true cost is in resources You can’t buy earned media, you must empower the organization to cultivate it Rethink your metrics Include earned media metrics in your paid media analysis Measure the impact paid media has on your owned and earned media assets Incorporate loyalty and influence as key metrics for any marketing initiative
  • 62. Thank you Sean Corcoran @seancor www.forrester.com
  • 63. Paid vs Earned Media 35 David Armano Senior Vice President Edelman Digital @armano
  • 64. MEDIA PROPERTIES, OVERLAPS & OWNERSHIP MEANINGFUL ENGAGEMENT IN A CONNECTED WORLDDavidArmano, SVP Edelman Digital | @armano
  • 65. DIGITAL MEDIA PROPERTIES & PLATFORMS
  • 66. Digital properties Websites Custom Built PortalsInternal/Enterprise OWNEDproperties EARNEDmedia 38
  • 67. AdvertisingBannersDisplayPaid Endorsements Digital properties Websites Custom Built PortalsInternal/Enterprise Rich Media Content OWNEDproperties PAIDmedia 39
  • 68. AdvertisingBannersDisplayPaid Endorsements Digital properties Websites Custom Built PortalsInternal/Enterprise Rich Media Content OWNEDproperties PAIDmedia Partnerships Influencer networksBranded entertainmentNiche Platforms EARNEDmedia 40
  • 69. AdvertisingBannersDisplayPaid Endorsements Digital properties Websites Custom Built PortalsInternal/Enterprise Rich Media Content OWNEDproperties PAIDmedia Partnerships Influencer networksBranded entertainmentNiche Platforms EMBASSIES EARNEDmedia SOCIAL platforms outposts RELEVANT Message boards blogosphere Influencer engagement 41
  • 70. THE “CLOVERLEAF” WHERE MEDIA LIVES TODAY
  • 71. 43
  • 72. SEARCH & SOCIAL: HOW DIGITAL MEDIA SPREADS
  • 73. 45 Search: Information based + 1. Digital participant initiates search(information) 3. Traffic directed & media sharedvia social networks and e-mail 2. Results ranked by authority/quality Source: David ArmanoEdelman 2011, edelmandigital.com
  • 74. 46 Search: Information based + 1. Digital participant initiates search(information) 3. Traffic directed & media sharedvia social networks and e-mail 2. Results ranked by authority/quality Source: David ArmanoEdelman 2011, edelmandigital.com Social: Influence based 3. Conversations & social sharing about media influence search results and rankings 2. Media digested, conversed aboutand shared 1. Digital participant views mediafrom social connection (relationships)
  • 75. 47
  • 76. EARNING MEDIA THROUGH OUTREACH
  • 77. FIRST DETERMINE WHO HAS THE RIGHT INFLUENCE 49
  • 78. Source: Edelman 2011, edelmandigital.com 50
  • 79. THE FOUR C’S FORMEANINGFUL ENGAGMENT IN A CONNECTED AGE
  • 80.
  • 81. CONNECTION: EBAY SOCIAL MEDIA SELLERS 53
  • 82. CONTENT: HUGGIES HIGH CHAIR CRITICS 54
  • 83.
  • 84. HC averaged 440 comments on promotional giveaway posts each week (during the commercial program), spurring thousands of positive, personal endorsements from moms, many of whom cited the shaped-to-fit feature as their favorite product benefit55
  • 85. CAMPAIGN: CLINIQUE Directing to Facebook competition 3,365 competition entries 9,000 votes 39,440 visits to the Facebook competition 42,053 YouTube video views 56
  • 86. CAMPAIGN: EDGE #SOIRRITATING “The #soirritatinghashtag has been used about 6,800 times, and attention from numerous media outlets has contributed to mounting buzz — all of which likely contributed to Edge’s decision to continue the campaign throughout 2011” (Mashable) 57
  • 87. COORDINATION: BLACKBERRY GLOBAL SOCIAL BUSINESS 58
  • 88.
  • 89. Paid vs Earned Media 60 Rob Fuggetta Founder/CEO Zuberance @RobFuggetta
  • 90. Leveraging Earned MediaRob Fuggetta, Founder/CEO, ZuberanceApril 19, 2011
  • 91. 62 About Zuberance Social Marketing Company focused on Brand Advocates Turn Brand Advocates into powerful marketing force Generate qualified leads, traffic, sales, positive WOM
  • 92. 63 Where Zuberance Fits In Social Media Marketing Products & Services Listen Engage Sell Zuberance
  • 93.
  • 96.
  • 97. 66 How to Leverage Earned Media Brand Advocacy System
  • 98. 67 Identify Brand Advocates… How likely are you to recommend our brand or product to your friends? 50%
  • 99. 68 Ask Ultimate Question in Many Places Email Call Center Web Product Social Packaging
  • 100. …Energize Brand Advocates… Advocate Ratings & Reviews Advocate Stories Advocate Answers Advocate Offers 69
  • 101.
  • 102. Leads
  • 104. Sales70 ►Earned Media is Measurable!
  • 106. 72 Q: How Compete Against “Big Boys”? $50M+ Vonage$200M Ooma <$2M Source: Vonage annual report, 2010
  • 107. 73 Answer: Ooma Unleashes Advocates
  • 108. 74 Ooma Acquisition Costs Drop 54% Customer Acquisition Costs (CAC) $146 $78 Before After
  • 109. 75 Problem: Negative WOM ►Yet 54% of Norton customers highly likely to recommend
  • 110. 76 Solution: Norton Advocates to Rescue! Before energizing Norton Advocates: After energizing Norton Advocates: ►Norton sales increased $26 million on Amazon.com
  • 111. 77 750,000 Chili’s Advocates 1M+ Recommendations 50,000+ Email Club Sign-Ups Chili’s Peppers in Earned Media
  • 112. 78 10X Higher Conversion Rate 25% 2.5% Earned Media Paid Media Source: FireClick Index, Zuberance Customer Data
  • 113. 79 Do not pay or coach Brand Advocates Make it easy for Advocates Track and optimize results Get an Advocacy system Best Practices
  • 114. 80 Thank You! Rob Fuggetta, Founder & CEO Zuberance rob@zuberance.com 650.369.2002 Follow Zuberance on Twitter: http://twitter.com/zuberance

Editor's Notes

  1. Do you feel Paid can be a catalyst for Earned? If so, what are the requirements for this to take affect? What do you think about BuzzFeed&apos;s &quot;Viral Lift&quot; - that is the metric comprised of &quot;total number of views&quot; / &quot;the number of views that were organically clicked from buzzfeed&apos;s page&quot; (usually expressed as a multiplier - i.e. 1.3x). Would this be a good definition for an earned media success metric to use for brands (i.e. total views / views who got their organically via on-site media)?
  2. How are you currently spending resources on Owned vs. Paid vs. Earned media? Please rank in order of importance.What percentage of your marketing budget has shifted from &quot;Paid Media&quot; to &quot;Earned Media&quot;?
  3. Delete second Name/Title if not needed, but be sure to keep the Month Day, Year information. For a teleconference, after the date, add a period and “Call in at XX:55 p.m. Eastern time” (change the time to five minutes prior to the start of the teleconference).
  4. EU pia data – impressions (1.1 billion influence posts x 152 impressions added to 120 billion influence impressions = 287.2billion)
  5. There are for constructs where public engagement can be activated in the digital spaceOwned:These are properties that an organization has some degree of ownership over such as their own Website or their official Facebook “embassy:Paid:These are media opportunities which require a fee to be exchanged in order to participateEarned: These are media opportunities where visibility, mentions etc. are not paid but occur organicallySocialThese are the platforms where social behavior and engagement greatly influence the ecosystem (Facebook, Twitter, Blogosphere, Forums).There is a great deal of OVERLAP in between these spaces and while Edelman can work in all of them, community management is focused in the social sphere.
  6. There are for constructs where public engagement can be activated in the digital spaceOwned:These are properties that an organization has some degree of ownership over such as their own Website or their official Facebook “embassy:Paid:These are media opportunities which require a fee to be exchanged in order to participateEarned: These are media opportunities where visibility, mentions etc. are not paid but occur organicallySocialThese are the platforms where social behavior and engagement greatly influence the ecosystem (Facebook, Twitter, Blogosphere, Forums).There is a great deal of OVERLAP in between these spaces and while Edelman can work in all of them, community management is focused in the social sphere.
  7. There are for constructs where public engagement can be activated in the digital spaceOwned:These are properties that an organization has some degree of ownership over such as their own Website or their official Facebook “embassy:Paid:These are media opportunities which require a fee to be exchanged in order to participateEarned: These are media opportunities where visibility, mentions etc. are not paid but occur organicallySocialThese are the platforms where social behavior and engagement greatly influence the ecosystem (Facebook, Twitter, Blogosphere, Forums).There is a great deal of OVERLAP in between these spaces and while Edelman can work in all of them, community management is focused in the social sphere.
  8. There are for constructs where public engagement can be activated in the digital spaceOwned:These are properties that an organization has some degree of ownership over such as their own Website or their official Facebook “embassy:Paid:These are media opportunities which require a fee to be exchanged in order to participateEarned: These are media opportunities where visibility, mentions etc. are not paid but occur organicallySocialThese are the platforms where social behavior and engagement greatly influence the ecosystem (Facebook, Twitter, Blogosphere, Forums).There is a great deal of OVERLAP in between these spaces and while Edelman can work in all of them, community management is focused in the social sphere.
  9. Edelman’s Unique POV: Social, Economic and Technical conditions have created a stakeholder society.
  10. Connection: How to connect participants and those with influenceContent: leveraging relevant and and engaging contentInitiating campaigns which integrate multiple media properties. Transmedia storytellingCoordination between multiple properties at scale