using paid owned and earned media to create strong brands

A BRAND POEM HOW TO BUILD BRANDS COMBINING PAID, OWNED & EARNED MEDIAPresenting: dr. Marnix van Gisbergen I NHTV University of Applied Sciences I Gisbergen.M@nhtv.nlResearch: DVJ Insights (L. Hulsebos; R. Jansen) I Sanoma Media (D. Hoogervorst, S. Kreek & R. Witteman) I NHTV

EAA’s13th International Conference onResearch in Advertising

Complex media landscapeToo many (new) media, old ways to measure reach not sufficientDefinitions are outdated: what do we mean with “did you watch television yesterday?”

How to simplify? Useful media typology or categorization? Help understand the processIn doing so, we always will see only part of the whole ‘media ecosystem’

Paid, Owned and Earned Media DistinctionIt 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

Distinction by media channel, useful but still problematicFor instance Facebook can be owned as well as Earned

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

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.

Owned + Earned only brands almost do not exist

PAID PAID

OWNED

PAID

OWNED

EARNED

+ +

+EARNED

OWNED+

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 pastNo 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

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

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Participants: 859Age: 20-49 I 49% female

+ Extra online surveyExplanation of findings

Participants: 1831ONLINE: 18,7 hours per week7.3 hours on social media

Facebook: 75%YouTube : 50%Twitter : 29%LinkedIn : 27%Hyves : 21%

DesignBrand confrontations

Confrontations outside questionnaire (assignments)Confrontations within questionnaire

Brand confrontations

Paid: tv ad + print ad

Earned: Facebook + Forum or Twitter

Ow

ned

: Facebook + w

ebsite

EIGHT BRANDS 2 x car2 x mobile phone2 x energy supplier2 x meal mixes

Strong and ‘weak’ counterparts

Energy Supplier ExampleEneco versus Greenchoice

strong weak

Brand user : 18% 6%Brand familiar : 3.8 2.5Brand attitude : 4.0 3.7

Brand selection

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

MEDIA frequency, evaluation and behavior

BRAND behavior and involvement (+ likes)

PRODUCT Usage and buying behavior

Control variables

+ 221

+ 261

+ 216 + 227

Results (aggregated Brand scores)Brand impact score: the increase between M1 and M3 (increase within 6 months)

All media types can be used to build and maintain strong brandsPOEM activities have the largest positive effect on salience (awareness) PO scored best on all brand building blocks

Better brand effects for low involvement productsHigh involvement: Cars and Mobile Phone ProvidersLow involvement: Energy Supplier and Meal Mix brands

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50

100

150

200

250

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350

400

Paid Paid Owned Paid Owned Earned Owned Earned

Low High

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

InterpretationSelf 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

ConclusionPaid + owned = clarity and consistencyEarned = 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

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