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How has the earned, owned and paid media landscape changed over the last five years
The last five years have seen a shift towards integrated marketing strategies, where marketing professionals are being advised to pursue a mixed strategy that incorporates paid, owned and earned media to a common end, tied to a company's brand strategy. As far back as 2012, companies were already being counseled to pursue this type of plan, and that has only increased since then. Experts predict that the lines between digital and traditional media will be erased over time, in favour of a comprehensive approach, where messaging is communicated through all means.
Although the emphasis has been placed on earned media in recent years, experts in the field make the case that paid media still has an important role to play in the marketing mix, and that this is likely to continue. One of the newest and most important trends is that of Geolocation, which drives customers to a specific location and can offer an enhanced experience.
The sources that I found were mostly based in the United States, and use examples from the United States, however they make no geographical distinction in terms of how these trends will affect brands.
DEFINING PAID V. OWNED V. EARNED
In order to answer your question, I went back to 2012, to see how industry experts were talking about these media types. All three terms were already in use, and were being defined roughly as follows:
Paid Media: The traditional form of media, where a brand places paid content in any of a number of media forms (printed publications, television and billboards, but also online advertising, which was already common at the time).
Owned Media: A channel that is owned by the brand itself, and thus controls every aspect of content, as well as the method in which media is consumed (blogs, newsletters, corporate websites, etc.).
Earned Media: This is where the consumers themselves become the marketing channel, through viral campaigns and word of mouth, among other methods.
At that time, marketers were already recommending that businesses look at using a mix of these advertising methods, with a move towards "convergence" (i.e., a plan that incorporated all elements towards a defined end). Paid media was already being flagged as the least credible in the minds of consumers, whereas earned media was seen as the most trustworthy.
THE SHIFT FROM PAID TO OWNED CONTENT
Although paid media is well-liked by marketing departments for being the easiest to track, and because it has the least chance of being hijacked by opponents of the brand, consumers are not so welcoming. Marketing analytics firm Cision notes that online consumers are using technology specifically to exclude advertising from their web experience: 37% of those surveyed had used ad blocking software, while 42% said they had not, but would be interested in doing so in the future. Filtering systems like advertising algorithms are also making it more difficult for advertisers to reach new customers.
With television viewing, there is a similar pattern. Advertising and Public Relations company Meltwater notes that, when it comes to paid media, many companies are still pursuing television advertising as an ultimate goal. However, consumers are shifting towards cord-cutting, with Over-the-Top video services nearly quadrupling between 2014 and 2017. With this trend expected to continue for the next few years, traditional television advertising will show decreasing returns on investment. Industry sources indicate that brands will and should respond by moving to Owned Media as a way of capturing these consumers, becoming content creators of editorials and especially short-form video (7 minutes or less) that is accessible from a variety of devices and reflects how consumers are viewing content.
PARTNERSHIPS
One aspect of Owned Media that seems promising is that of partnerships between complementary brands. It seems that consumers are more receptive to this type of content than to straight paid advertising; within the last two years, companies that worked together to promote both their brands saw 19% faster income growth and 15% more profit. Of course, this also allows companies to split their costs, making it a more efficient method of reaching potential customers.
CHANGES IN SEARCHING
When it comes to searching online, there have been key shifts in how customers have approached their use of search engines, and how those searches are being handled. In 2015, Google introduced RankBrain, a machine learning system that acts as a filter for results, and that helps to target users based on their observed online interests, and shifting site rankings accordingly.
During that time, there has also been a sharp increase in voice searches, which now comprise 25% of Google searches. These searches tend to be shorter- mostly five words or fewer- which requires important information to be given in the most concise form possible.
GEOLOCATION
One of the most important trends that is happening in the advertising landscape is Geolocation. Fortune Magazine stated in 2017 that it is the next buzzword in marketing, affecting nearly every aspect of a consumer's interaction with a brand, including:
— Driving traffic to specific physical locations, such as through limited-time offers, rather than relying on passive consumption
— Creating an augmented experience by allowing audiences at live events to capture different perspectives, which then moves into the sphere of Earned Media when those perspectives are shared. Millennials in particular want to have a sense of participation in an event, and transforming it into a greater experience.
Geolocation also gives insight for advertisers as to how regional differences may come into play, by identifying what different search terms are used in different areas.
When it comes to live events, word of mouth is particularly powerful, with 19% of millennials surveyed- the largest group- saying that this was their primary source for finding out about them. (Twitter came a distant second with 8%.)
CONCLUSION
When it comes to reaching an audience, the best approach is to integrate all forms of media under a defined "umbrella" message. For live events, key considerations are incorporating Geolocation to encourage customers to be in a specific place and time and allowing them to actively shape their own experience, and investing in marketing research that shows how people search for specific subjects in different regions, and creating content partnerships with complementary brands.