What is the Difference Between Paid Owned and Earned Media

The main difference between paid owned and earned media is that a paid media is a media that requires payment to gain exposure. While an owned media is any online property a brand or company owns and controls. Whereas an earned media is any type of content created about the brand, but without the brand’s involvement.

In digital marketing, we can categorize the channels or media that help brands to increase their visibility, engagement and performance into three forms. They are paid media, owned media, and earned media. However, sometimes there is some overlap between these media.

Key Areas Covered

1. What is Paid Media
     – Definition, Features, Examples
2. What is Owned Media
     – Definition, Features, Examples
3. What is Earned Media
     – Definition, Features, Examples
4. What is the Relationship Between Paid Owned and Earned Media
     – Outline of Common Features
5. What is the Difference Between Paid Owned and Earned Media
    – Comparison of Key Differences

Key Terms

Digital Marketing, Paid Media, Earned Media, Owned Media

What is Paid Media

Paid media refers to any form of media that requires payment to gain exposure. TV ads, newspaper ads, radio ads, and billboards are examples of paid media in traditional marketing. In digital marketing, paid media involves display ads, paid search, social media ads (Facebook ads, Instagram ads, etc.), influencer marketing, and online video ads are some examples.

As its name suggests, paid media requires money. You’ll get traffic to your website or social media pages as long as you pay. But when the payment stops, the media, as well as the traffic, also stop. Out of these three types of media, paid media is the media that show immediate results, which are measurable. Moreover, it is scalable and easy to test.

What is Owned Media

Owned media is any online property that a brand or a company owns and controls. Company website, blog, official social media pages, email marketing campaigns, and mobile applications are examples of owned media. The company has to initially invest to build this property. But later, the company can get additional exposure without spending any money. Moreover, in this form of media, the company owns what they publish.

In owned media, the cost is the initial effort, but visibility and traffic continue even when the cash flow stops. Therefore, owned media is cost-effective and has longevity. Owned media also provides ease of targeting.

What is Earned Media

Earned media involves any type of content created about the brand but without the brand’s involvement. We can also describe it as the publicity, promotion and coverage by outside agencies or publications. This involves the media exposures the brand gets as a result of other people talking about the brand. Moreover, there is no cash outflow for additional exposure. Likes, comments, and shares on social media, customer reviews, testimonials, ratings, word-of-mouth recommendations are examples of earned media. Earned media can also include magazines articles and blog posts created by third parties (not commissioned by the brand).

Earned media has many benefits. It does not require any cash flow-out, so it’s cost-effective. It also helps to build trust and promotes loyalty and advocacy.

Relationship Between Paid Owned and Earned media

In modern digital marketing, these media sometimes overlap. For example, when paid promotions increase sharing and engagement of earned media, this is an overlap of earned media and paid media. Similarly, driving traffic to a website with social media ads and PPC ads is an overlap of paid and earned media. 

Difference Between Paid Owned and Earned media

Definition

Paid media is media that requires payment to gain exposure. Owned media is any online property that a brand or a company owns and controls. Meanwhile earned media is any type of content created about the brand but without the brand’s involvement.

Examples

Display ads, paid search, and social media ads are examples of paid media while Company website, blog, official social media pages, email marketing campaigns, and mobile applications are examples of owned media, and Likes, comments, and shares on social media, customer reviews, testimonials, and ratings are examples of earned media.

Cost

Paid media always require a cash out-flow, while owned media initially requires a payment. Earned media, on the other hand, does not involve payments.

Control

In paid media, the brand has some control of the media, and in owned media, the brand completely owns and controls the media; however, in earned media, the brand has no control of the media.

Benefits

Furthermore, paid media is scalable, measurable and gives immediate results, while owned media is cost-effective, has long term effects, provides quality visits, and provides ease of targeting. Earned media, on the other hand, is extremely cost-effective, results in loyalty and advocacy and helps to build trust.

Conclusion

Paid media is media that requires payment to gain exposure, and owned media is any online property owned and controlled by a brand or company, while earned media is any type of content created about the brand but without the brand’s involvement. Thus, this is the main difference between paid owned and earned media.

Reference:

1. “The Only Earned Media Strategy You’ll Ever Need.” Sprout Social, 4 Sept. 2020, Available here.
2. “What Is Paid Media?” BigCommerce, 6 Apr. 2021, Available here.

Image Courtesy:

1. “5771066” (CC0) via Pixabay
2. “Have you heard the POEM – Paid, Owned, and Earned Media” By Walter Lim (CC BY 2.0) via Flickr