What Is the PESO Model for Marketing?
Those in the marketing and agency world are familiar with paid, earned and owned media. However, this familiar model has changed to include shared media as well, now making it the PESO model.
PESO stands for the different types of media and break down like this:
Paid media: buying a 30-second Super Bowl spot
Earned media: getting free coverage in AdWeek
Shared media: your post being shared on social media
Owned: publishing across your company’s website, blog and social media accounts
Today, the lines between these four types of media have become blurred, as one piece of content could be published by a trade journal, advertised on Facebook, shared by users and then cross-promoted on your blog.
When working collaboratively, the PESO model can help develop industry-leading brands, expansive reach and SEO growth.
A brand could buy an ad and then call it quits – but that would fail to continue the conversation, engage the audience and generate an opportunity to earn media. Social media marketing has become more of a pull medium than a push, as the audience is active and engaged, transforming marketing into a two-way street.
Because of this, brands and their agencies are using PESO to rethink their approach to success.
What Is Shared Media?
Shared media is content generated for circulation, especially on social media, that leads to likes, comments and shares. This documented engagement between a user and a brand’s social media is known as shared media. After you engage with a brand your interaction is displayed to your social media friends, which can then help the brand to gain followers, which is another reason why shared media is so important.
The Increasing Importance of Earned Media
Of the four buckets, “earned media” is the current Holy Grail. Earned media can be most easily described as the free impressions that result from paid and owned media — you buy a Super Bowl ad (paid) or you run a promotion on your brand’s Facebook Page (owned), and then your followers and people in the media talk about it (earned) and you begin to receive comments and shares on your social pages about that topic (more shared). Earned media is some of the most valuable – and hardest to get – exposure because of its credibility/authenticity and potential reach.
Earned media often requires a paid spark; a kick-start from paid media could be the difference between a conversation and complete silence.
How Paid, Earned, Shared and Owned Play Together
You don’t really begin to understand the accelerative impact that PESO (paid, earned, shared and owned) is having unless you look at the numbers and analyze the data to see where traffic is coming from and what is spurring engagement.
The raw numbers, such as 546 “likes” and 293 comments in a week on a Facebook page don’t provide much insight. But if you notice that a specific topic got a lot of shares and sparked conversation between your followers, you can look at that insight as what your audience wants to be learning and talking about and build content around that topic for future marketing efforts.
Digging into the numbers and figuring out what people responded to will help a brand optimize all forms of media, therefore enabling the brand to create the deepest and most meaningful relationships with consumers.
The important thing to remember is that social media is not a vertical, like advertising or PR — it’s a horizontal layer that touches every part of your business from customer service to customer acquisition to customer retention.
Key Takeaway for Paid, Earned, Shared and Owned Media
There can’t be silos anymore — the teams at the agency, other vendors and the brands themselves must play well together to come up with an idea that can dip into all forms of media. The best marketing strategy delivers a well-defined media mix that takes target audiences on a journey through paid, owned, earned and now shared media.
Tying channels together maximizes marketing spend around tactics that are working well. The PESO strategy increases consumer engagement and loyalty, provides better insights into consumer behavior, multiplies the effects of each channel, improves ROI, and helps your brand succeed in a crowded market.