How does mobile marketing change the spend on Paid, Owned and Earned Media?

If we were to revisit paid, owned and earned media and the impact on mobile marketing.

Most marketers are now building custom mobile applications (owned) for Android / iOs and will soon start to build them for Win Phone 7. Most are already ignoring the Symbian and Blackberry RIM.

During the days of television, print and radio paid was the choice of campaign spend, whereas earned was relatively small (less than 10%). Meaning, you paid for advertising alone and worked on your PR strategy to get your message out alternatively without paying for placement.

The days of the web changed that mix from only paid and earned to spending on your website (owned) which I think reduced the percentage of paid to 70% (from 90%) with 15% being spent on owned and earned slightly increasing to remaining constant.

With mobile applications being developed by marketers and social media engagement the owned portion of marketing spend is increasing even more to close to 25% of marketing budgets, and PR at a constant 15%, the spend towards paid media has further dropped to 65%.

The challenge with every marketer trying to develop their “owned” media channels is that they need

a) more resources (social media analysts & marketers and app developers) instead of campaign spend and

b) more “viral” techniques are being adopted to promote the owned properties.

Lets assume the viral techniques are getting more ineffective as more people try them.

Marketing budgets are increasing at a pace of about 5-7% annually for large companies and more marketers are being asked to spend more money on “owned media”.

What impact does this have on the future of marketing and more specifically mobile marketing?

1. I see the mobile advertising (both display and search) largely being used for promoting marketers “owned” applications – the main reason for that is the instant gratification that comes with an ad to download an application that possibly helps you more than just an ad for branding purposes. It is a lot more measurable.

2. I see many marketers being asked to “get more technical” and start building more “owned” properties since in the long run they are cost effective, easier to control and provide measurable value to the company.

3. Mobile ad networks such as inMobi, Google Admob, etc. will start to focus on helping marketers build, deliver and then promote these owned “applications and properties” since its in their best interest to get marketers to spend more money and make it a lot more accountable.

Update: Nick Burcher has written a book on this topic, and the except is available to review.

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5 thoughts on “How does mobile marketing change the spend on Paid, Owned and Earned Media?”

  1. I have no doubt that content is becoming more important, both in fulfilling Paid Media activity and as a way of engaging / enchanting consumers in order to drive greater ‘time spent with’ and to act as fuel for Earned Media comments. There are clearly ways of using mobile to deliver paid campaigns and content campaigns that drive Earned Media, but mobile is most interesting when it acts as a glue / conduit between different areas of Paid Owned Earned:

    – the TV content (program or ad) that is viewed with mobile in hand – allowing Twitter / Facebook commentary to be made in near real time or the ads to themselves to be tagged through services like IntoNow or Shazam

    – the mobile app (aligned with the broadcast activity) that offers further brand experience and in many cases utility

    – mobile optimized websites designed to offer content customised to mobile phones – activated by an ad seen on the go (eg QR code on a poster)

    – location specific couponing aligned with an Owned Media property such as a store or dealership

    There are many more ways in which everything links up, but, as you say, Owned / Earned media activity is not free (setup and management time has to be taken into account.) Owned and Earned activity also needs to be promoted properly and there is still something to be said for Paid Media being used – it is the only element where delivery / effectiveness can be modelled in advance.

    1. Nick
      You are the expert on this topic given your expertise and the book you are writing. I was thinking more along the lines of impact to Mobile advertising and wondering out loud if I should double down on the company I have invested in or just pass.

      Thanks for the comment.

  2. Mukund – love your thinking on this one — particularly “impact #1.” I’m not 100% sure all marketers realize that driving toward “owned” properties, especially those with social components, is the right way to win. But I’m seeing more and more thinking sway that way.

    Thanks for getting the creative juices flowing.

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