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1Sean Corcoran, Senior Analyst, ForresterDavid Armano, Senior Vice President, Edelman DigitalRob Fuggetta, Founder/CEO, ZuberanceTwitter hashtag: #PaidvEarnedPaid vs Earned MediaApril 19, 2011
Paid vs Earned Media2Moderator:David SparkSpark Media Solutions
Paid vs Earned Media3Hashtag for event:#PaidvEarned
4Successful earned media campaign techniquesB2B, mid-size,communication Integration strategy of owned, paid, earnedBest uses of each channel for highest ROI, budget mixROI evaluation, measurement methods, success metrics“Viral lift,” conversion rates, trackingHow to manage, scale, automate earned campaignResources and toolsTrendsYou asked us about…
5Participant Profile:  Title & RoleTitleRole & ResponsibilityN = 336, Online survey, fielded April 12 – 18 2011
6Current Spends and TrendsQ:  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?OwnedBudget shifts from Paid to EarnedEarnedPaid*N = 336; score is a weighted calculation
Marketers believe customers go to owned media channels most*7*N = 336; score is a weighted calculation
8Marketers are evenly divided on viewsQ: Which category has the biggest impact on your business in terms of generating sales, new customers, and revenue from marketing-related efforts?  Why?  Owned media such as your website or blog
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:  Owned9Content is superior. "Content is King."
[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:  Paid10As a challenger brand, awareness driving to a large audience is critical for trial and new customer acquisition. Earned builds loyalty, but comes later in the cycle.
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:  Earned11They are perceived as being independent and unbiased.
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 & trustworthyPeer referencesThird-party influenceN = 336, quantitative and open-ended comment analysis
Paid vs Earned Media12Sean CorcoranSenior Analyst	Forrester Research Inc@seancor
Zuberance - Paid Vs Earned Media
Shifting The Balance Of MediaSean Corcoran, Sr. AnalystApril 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 tooSources: Forrester Social Technographics Survey Q4, 2009
Social networks are really popular59% of U.S. online adults are visiting social networks at least once per month…and 50% of online Metro Chinese adults tooSources: Forrester Social Technographics Survey Q1, 2010
People are VERY active with social mediaNearly one third of US online adults are “Conversationalists” – they post status updates on social sites at least weeklySources: 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 BillionSource: Forrester North Americans Technographics  Empowerment Survery Q4 2009
And It Lives On
 Reviews/Ratings
 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 mixEarned 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 media16% 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 media75 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 adaptAdaptive 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 pullThe Groundswell (social media) is mainstreamAll marketing communication is “always on”Consumers move from passive audience to active participantsBrands must publish and update content on a regular basisIntelligence drives decisions in real timeLoyalty and Influence become the key drivers of success
RecommendationsStart thinking about marketing to peopleMost interactive marketers actually market to browsers, phones, and email addressessIdentify your advocates immediately Use listening platforms to identify the most influential and NPS to identify the most loyalBuild owned media platforms that enable advocates to promote the brandLeverage tools like Facebook Open Graph and Ratings and ReviewsCreate 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 resourcesYou can’t buy earned media, you must empower the organization to cultivate itRethink your metricsInclude earned media metrics in your paid media analysisMeasure the impact paid media has on your owned and earned media assetsIncorporate loyalty and influence as key metrics for any marketing initiative
Thank youSean Corcoran@seancorwww.forrester.com
Paid vs Earned Media35David ArmanoSenior Vice President	Edelman Digital@armano
MEDIA PROPERTIES, OVERLAPS & OWNERSHIPMEANINGFUL ENGAGEMENT IN A CONNECTED WORLDDavidArmano, SVP Edelman Digital  | @armano
DIGITAL MEDIA PROPERTIES & PLATFORMS
DigitalpropertiesWebsitesCustom Built PortalsInternal/EnterpriseOWNEDpropertiesEARNEDmedia38
AdvertisingBannersDisplayPaid EndorsementsDigitalpropertiesWebsitesCustom Built PortalsInternal/EnterpriseRich Media Content OWNEDpropertiesPAIDmedia39
AdvertisingBannersDisplayPaid EndorsementsDigitalpropertiesWebsitesCustom Built PortalsInternal/EnterpriseRich Media Content OWNEDpropertiesPAIDmediaPartnershipsInfluencer networksBranded entertainmentNiche PlatformsEARNEDmedia40
AdvertisingBannersDisplayPaid EndorsementsDigitalpropertiesWebsitesCustom Built PortalsInternal/EnterpriseRich Media Content OWNEDpropertiesPAIDmediaPartnershipsInfluencer networksBranded entertainmentNiche PlatformsEMBASSIESEARNEDmediaSOCIALplatformsoutpostsRELEVANT Message boardsblogosphereInfluencer engagement41
THE “CLOVERLEAF”WHERE MEDIA LIVES TODAY
43
SEARCH & SOCIAL: HOWDIGITAL MEDIA SPREADS
45Search: 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
46Search: 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.comSocial: Influence based3. Conversations & social sharing about media influence search results and rankings2. Media digested, conversed aboutand shared1. Digital participant views mediafrom social connection (relationships)
47
EARNING MEDIA THROUGH OUTREACH
FIRST DETERMINE WHO HAS THE RIGHT INFLUENCE49
Source: Edelman 2011, edelmandigital.com50
THE FOUR C’S FORMEANINGFUL ENGAGMENTIN A CONNECTED AGE
Zuberance - Paid Vs Earned Media

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Zuberance - Paid Vs Earned Media

  • 1. 1Sean Corcoran, Senior Analyst, ForresterDavid Armano, Senior Vice President, Edelman DigitalRob Fuggetta, Founder/CEO, ZuberanceTwitter hashtag: #PaidvEarnedPaid vs Earned MediaApril 19, 2011
  • 2. Paid vs Earned Media2Moderator:David SparkSpark Media Solutions
  • 3. Paid vs Earned Media3Hashtag for event:#PaidvEarned
  • 4. 4Successful earned media campaign techniquesB2B, mid-size,communication Integration strategy of owned, paid, earnedBest uses of each channel for highest ROI, budget mixROI evaluation, measurement methods, success metrics“Viral lift,” conversion rates, trackingHow to manage, scale, automate earned campaignResources and toolsTrendsYou asked us about…
  • 5. 5Participant Profile: Title & RoleTitleRole & ResponsibilityN = 336, Online survey, fielded April 12 – 18 2011
  • 6. 6Current Spends and TrendsQ: 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?OwnedBudget shifts from Paid to EarnedEarnedPaid*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. 8Marketers are evenly divided on viewsQ: Which category has the biggest impact on your business in terms of generating sales, new customers, and revenue from marketing-related efforts? Why? Owned media such as your website or blog
  • 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. Biggest impact on business: Owned9Content is superior. "Content is King."
  • 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. Biggest impact on business: Paid10As a challenger brand, awareness driving to a large audience is critical for trial and new customer acquisition. Earned builds loyalty, but comes later in the cycle.
  • 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. Biggest impact on business: Earned11They are perceived as being independent and unbiased.
  • 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 & trustworthyPeer referencesThird-party influenceN = 336, quantitative and open-ended comment analysis
  • 28. Paid vs Earned Media12Sean CorcoranSenior Analyst Forrester Research Inc@seancor
  • 30. Shifting The Balance Of MediaSean Corcoran, Sr. AnalystApril 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 tooSources: Forrester Social Technographics Survey Q4, 2009
  • 33. Social networks are really popular59% of U.S. online adults are visiting social networks at least once per month…and 50% of online Metro Chinese adults tooSources: Forrester Social Technographics Survey Q1, 2010
  • 34. People are VERY active with social mediaNearly one third of US online adults are “Conversationalists” – they post status updates on social sites at least weeklySources: 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 BillionSource: Forrester North Americans Technographics Empowerment Survery Q4 2009
  • 38. Blog posts & comments
  • 49. YouTube“Earned, Owned, Paid” redefines the marketing mixEarned 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 media16% 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 media75 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 adaptAdaptive 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 pullThe Groundswell (social media) is mainstreamAll marketing communication is “always on”Consumers move from passive audience to active participantsBrands must publish and update content on a regular basisIntelligence drives decisions in real timeLoyalty and Influence become the key drivers of success
  • 61. RecommendationsStart thinking about marketing to peopleMost interactive marketers actually market to browsers, phones, and email addressessIdentify your advocates immediately Use listening platforms to identify the most influential and NPS to identify the most loyalBuild owned media platforms that enable advocates to promote the brandLeverage tools like Facebook Open Graph and Ratings and ReviewsCreate 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 resourcesYou can’t buy earned media, you must empower the organization to cultivate itRethink your metricsInclude earned media metrics in your paid media analysisMeasure the impact paid media has on your owned and earned media assetsIncorporate loyalty and influence as key metrics for any marketing initiative
  • 63. Paid vs Earned Media35David ArmanoSenior Vice President Edelman Digital@armano
  • 64. MEDIA PROPERTIES, OVERLAPS & OWNERSHIPMEANINGFUL ENGAGEMENT IN A CONNECTED WORLDDavidArmano, SVP Edelman Digital | @armano
  • 67. AdvertisingBannersDisplayPaid EndorsementsDigitalpropertiesWebsitesCustom Built PortalsInternal/EnterpriseRich Media Content OWNEDpropertiesPAIDmedia39
  • 68. AdvertisingBannersDisplayPaid EndorsementsDigitalpropertiesWebsitesCustom Built PortalsInternal/EnterpriseRich Media Content OWNEDpropertiesPAIDmediaPartnershipsInfluencer networksBranded entertainmentNiche PlatformsEARNEDmedia40
  • 69. AdvertisingBannersDisplayPaid EndorsementsDigitalpropertiesWebsitesCustom Built PortalsInternal/EnterpriseRich Media Content OWNEDpropertiesPAIDmediaPartnershipsInfluencer networksBranded entertainmentNiche PlatformsEMBASSIESEARNEDmediaSOCIALplatformsoutpostsRELEVANT Message boardsblogosphereInfluencer engagement41
  • 71. 43
  • 72. SEARCH & SOCIAL: HOWDIGITAL MEDIA SPREADS
  • 73. 45Search: 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. 46Search: 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.comSocial: Influence based3. Conversations & social sharing about media influence search results and rankings2. Media digested, conversed aboutand shared1. Digital participant views mediafrom social connection (relationships)
  • 75. 47
  • 77. FIRST DETERMINE WHO HAS THE RIGHT INFLUENCE49
  • 78. Source: Edelman 2011, edelmandigital.com50
  • 79. THE FOUR C’S FORMEANINGFUL ENGAGMENTIN A CONNECTED AGE
  • 81. CONNECTION: EBAY SOCIAL MEDIA SELLERS53
  • 82. CONTENT: HUGGIES HIGH CHAIR CRITICS54
  • 83. CONTENT: HUGGIES HIGH CHAIR CRITICSTwo months after launch, Highchair Critics (HC) outpaced the growth of Huggies’ Facebook Page – the brand’s most active and engaged online community to date. HC had 67,000 page views compared to Facebook’s 13,500 page views during the same time period
  • 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: CLINIQUEDirecting to Facebook competition3,365 competition entries9,000 votes39,440 visits to the Facebook competition42,053 YouTube video views56
  • 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
  • 89. Paid vs Earned Media60Rob FuggettaFounder/CEO Zuberance@RobFuggetta
  • 90. Leveraging Earned MediaRob Fuggetta, Founder/CEO, ZuberanceApril 19, 2011
  • 91. 62About ZuberanceSocial Marketing Company focused on Brand AdvocatesTurn Brand Advocates into powerful marketing forceGenerate qualified leads, traffic, sales, positive WOM
  • 92. 63Where Zuberance Fits InSocial Media Marketing Products & ServicesListenEngageSellZuberance
  • 93. 64Zuberance Brand Advocate Solution“Advocate E-S-P”Advocate ExpertiseAdvocate ServicesAdvocate PlatformAdvocate Apps
  • 96. Advocate Insights65Brand Advocates, DefinitionHighly-satisfied customers who pro-actively recommend brands or products without being paid to do so. ►60 Million Brand Advocates in U.S.Source: Multiple
  • 97. 66How to Leverage Earned MediaBrand Advocacy System
  • 98. 67Identify Brand Advocates…How likely are you to recommend our brand or product to your friends?50%
  • 99. 68Ask Ultimate Question in Many PlacesEmailCall CenterWebProductSocialPackaging
  • 100. …Energize Brand Advocates…Advocate Ratings & ReviewsAdvocate StoriesAdvocate AnswersAdvocate Offers69
  • 102. Leads
  • 106. 72Q: How Compete Against “Big Boys”?$50M+Vonage$200MOoma<$2MSource: Vonage annual report, 2010
  • 108. 74Ooma Acquisition Costs Drop 54%Customer Acquisition Costs (CAC)$146$78BeforeAfter
  • 109. 75Problem: Negative WOM►Yet 54% of Norton customers highly likely to recommend
  • 110. 76Solution: Norton Advocates to Rescue!Before energizing Norton Advocates:After energizing Norton Advocates:►Norton sales increased $26 million on Amazon.com
  • 111. 77750,000 Chili’s Advocates1M+ Recommendations50,000+ Email Club Sign-UpsChili’s Peppers in Earned Media
  • 112. 7810X Higher Conversion Rate25%2.5%Earned MediaPaid MediaSource: FireClick Index, Zuberance Customer Data
  • 113. 79Do not pay or coach Brand AdvocatesMake it easy for AdvocatesTrack and optimize resultsGet an Advocacy systemBest Practices
  • 114. 80Thank You!Rob Fuggetta, Founder & CEOZuberancerob@zuberance.com650.369.2002Follow 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