MANAGEMENT SLANT

  • At a macro level, “share of digital owned media to share of market” corresponds to the “share of paid media to share of market” mapped out in past studies.
  • The effectiveness of digital owned media is influenced by the long-term trend of brand sales and the balance between paid media and owned media.
  • There is synergy between paid and digital owned media that varies in effectiveness by category and in effectiveness of paid and owned media.
  • When brands that invest less in paid media shift more of their marketing efforts to owned media, both owned media and paid media will influence sales.

INTRODUCTION

The surge in digital platforms in the 21st century has disrupted the media-spend equation. That disruption has prompted questions about how brands’ investment in paid and digital owned media affects brand sales. “Paid media” refers to media activities that a company or its agents generate and pay for. “Owned media” refers to activities that a company or its agents generate in channels it controls—for example, a blog, a website, or a Facebook page.