Pay to much to acquire a customer and disaster ensues. Pay not enough and the quality of your leads drop or worse – you don’t get any.
The problems don’t end with custom acquisition cost oh no. Which channels to use? Which tactics? Where does the audience hang out?
Ultimatly the question begins or ends with ‘where should we allocate your marketing budget for maximum ROI?’
Should we use Paid, Owned or Earned media channels?
The questions are the same — always the same — ‘ where do I invest my limited marketing money for the largest return?’
Social media, SEO, radio, magazines, yellow pages, content?
Very confusing and everyone offers free advice with their best formula for success.
Marketing is important, but, where to invest?
…because the purpose of business is to create a customer, the business enterprise has two–and only two–basic functions: marketing and innovation. Marketing and innovation produce results; all the rest are costs. Marketing is the distinguishing, unique function of the business. – Peter Drucker
The Traditional Marketing Playbook – Paid Owned Earned Media
Classically a business paid for advertisement, got their message in front of people, and sometime later revenue was realized.
This is ‘Paid Media’ model. Paid media is around for a hundred years or more.
PR builds brand awareness and advertisement, at least direct marketing part, foster demand for goods and services.
What is POEM?
POEM is an acronym and stands for Paid, Owned, Earned Media. The POEM framework crosses all industries and allows for a common language among ad agencies, venture capital firms and business.
- Paid — is media you buy — e.g. advertisements and product placements. A business pays to get their message in front of audience they do not own. Think as if paying to get access to an audience. With paid media you have total control of the messaging, reach and frequency of the messages. Examples of paid media are newspapers, magazines, television, radio, outdoor advertising or some direct mail. Paid media includes online banner ads, LinkedIn ads, and Facebook ads etc. You pay to get a message in front of an audience. Paid media is renting an audience.
- Owned — owned media is the pages your brand owns on the internet. This is your media, you own it. You control the messaging, but, not whether anyone reads or views it. Examples are your websites, Facebook Pages, Twitter Pages, YouTube, Snapchat, blogs, podcasts, videos, and newsletters. Your company blog, your branded vehicles, your email list are examples of owned media.
- Earned – earned is what others say about your brand – Earned media is the holy grail of marketing. Earned media is the conversation customers and user are having about your brand and business! Either good or bad consversations. Examples are articles in the media, newspapers, TV, or mentions in other blogs. You cannot control what others say (usually), but, you can influence the outcomes. E.g. when a person mentions your brand, shares an email, or FB “likes” some content. You can enter the conversation and thank them.
Paid Organic Media
- Think Facebook Ads. Paid organic is the new black! The idea is where you pay to get a piece of your owned media (images, blog post, ideas, etc) in front of people in the Facebook news feed. It is a mash-up on organic and paid.
- Shared Media sits in the middle of the overlapping circles of Paid, Earned and Owned media. Shared media is the sharing of content (media) on sites like Facebook, Twitter and YouTube. Shared content can propagate across an individual’s network to other networks. Paid and Owned Media can inspire Shared Media. Shared Media can inspire Earned Media. And a virtuous circle is complete.
Transforming The POEM
Traditional media is loosing revenue from advertisers. The money is moving away from TV, radio, and print media.
This shift is occurring because of many factors including the rise of the internet, social networking and trust in advertisements has reduced. Our attention spans are wavering from to the internet. We skip ads with our TIVO and Sky+ DVR boxes, and we get unbiased, undiluted information and knowledge from the internet.
The popular “paid, owned, earned” media models — is in need of updating.
Convergence of Paid, Owned, Earned Media
The amount of owned media has increased with the ease of blog publishing platforms. Also earned media is transforming paid media. Therefore, the paid media model is no longer the “foundation” of marketing programs and is “evolving into a catalyst that at key periods of the owed and earned media process to drive engagement”.
Altimitar Group has a nice report on the converging media idea
Why is POEM Important?
Marketing is complex and often confusing.
The Paid, Owned, Earned, model classifies the outputs of marketing into groups for understand, measurement and improvement. In some ways it’s a bucket listing thing.