Effectiveness: The impact of paid and digital owned media on sales
A US study has found clear relationships between share of brand sales in categories and share of paid advertising and also the share of owned platform interaction via brands' websites and social platforms. These findings can help marketers understand the ideal balance of spend and optimise marketing impact.
There have been questions about the relative importance of paid advertising media and digital owned media (websites, social sites) to brands' strength. The hypothesis is that increasing share within the category for both paid and digital owned media will impact a brand's business outcomes in a positive way. This study reviews brands' actual expenditure and share of spend in paid media (online and offline); the actual unique visitor traffic and share of traffic to owned digital media - their websites and their social media sites. We find evidence of the impact from increasing spend/share in paid and digital owned media on sales but the ideal balance of spend in both is dependent on the category type and the brand position with category.