Revisiting Paid versus Earned Media: Now Enter "Blended" Media

Yesterday, during a spirited panel discussion I moderated at Cincinnati's Digital Hub Conference featuring P&G's Dave Knox, Empower's Kevin Dugan, and former P&G digital leader Suzanne Tosolini, we talked a fair amount about how to balance "Paid" versus "Earned" media, a question I've been thinking about constantly at Nielsen and beyond. It's a mission critical question -- one with massive implications for both marketing and operational investment -- and it was no coincidence that I used this as a foundational slide to prod and catalyze the conversation on the topic of using social media and digital to build great brands.  

We're finally at a true crossroads in marketing.  There is so much evidence across the web that "earned media" -- consumer-generated media, social media, conversation, variants of PR -- is creating meaningful lift and value for brands that we now need to think more critically about resource and spending allocations.  Empirical evidence makes clear, for example, that customer service is a major driver of "earned media," but fixing or improving customer service takes real investment. Where does it come from?  Do we slice it off the "paid media" side of the equation.  And who makes that decision?  The CMO as currently defined, or some new hybid role that combines marketing, PR, and service?  Alas, the big questions.

Then again, it's not that simple, which is one reason the latest iteration of my paid/earned grid (which draws its initial inspiration from Dachis's David Armano's very early industry prodding on this framework) includes a third wheel called "blended media."  Here is an attempt to acknowledge that paid media often serves as a critical stimulus or even vitamin for "earned media."  Moreover, in a world of crowdsourcing and co-creation, "earned media" is increasingly becoming a core input into the paid equation.  Yes, we must always accomodate that fuzzy middle.  

Needless to say, our discussion on the matter was lively and spirited, and I hope it continues to drive and advance the conversation during the second day of this event which features keynotes from Peter Kim and Bob Gilbreath and presentations from many others, from Jason Falls and Jack Graydon.  BTW, if you want to follow this excellent conference, the Twitter hashtag is #dhi09 or just click this link.  

Thanks again to Dave, Kevin, and Suzanne for a most excellent panel.  And congratulations to all the event organizers, especially Jack Streitmarter or ScreamingBob Media and the Cincinnati Ad Club.  Outstanding!!!

- Pete (twitter.com/pblackshaw)