March 19, 2019
80% of marketers believe that earned media is more effective than paid media, according to a study by Outsell. However, an analysis by Burton Taylor shows that a huge part of marketing investment by companies is spent on paid media (95%), just 4.5% on own media and tiny 0.5% on earned media. So why is the most effective way not the most utilized and invested in? What about meaning. Own media is a kit of own tools for engaging new clients and suppor...ting existing ones (content on a website, blogging, preparing and participating in events, news generating, etc.). Paid media relates to all other methods and services that are paid directly or through agencies (advertising, influencers, paid content and articles, etc.). An example of earned media is consumers that share ideas of brand and good comments because they satisfied with products, services and support, they like new advertisements and/or new articles, they want to participate in social media groups and tell friends and neighbours. For own and paid media a company knows its targets and key metrics for understanding the effectiveness of results. But the problem of earned media is the lack of a target for investment. And also CMO cannot measure the real effects of earned media on sales. By doing business well a company can provide incentives to increase the good effects of earned media, but wrong actions lead to bad experiences and negative comments, so the effect of earned media can be negative, too. Investment in earned media involves a whole company developing at all levels (ideas, production, sale process, support) and providing better consumer experiences than exist at the present time, and is not responsibility only of the CMO.