Owned, Bought and Earned Media

[NB UPDATED POST on this topic: http://danielgoodall.com/2009/05/20/owned-bought-and-earned-redux/]

At Nokia we have been using the following simple model for our Digital Media Planning for about a year now.

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Like all good models, it is designed to be very, very simple.

Owned Media
Obviously one of the things available to you is your own web site. With Nokia it gets a bit more complex, since we have so many media that we “own”: http://www.nokia.mobi (perhaps the most visited mobile site in the world?), MyNokia (Nokia’s CRM program), all of our service sites (ovi.com, ngage.com, nokia music), as well as more niche sites like beta labs etc. Quite a few options, before any media has even been bought: my team is currently planning to pull together a kind of internal media bank to keep track of all the options in terms of Nokia’s own media.

Bought Digital Media
This clearly has a role, although often it is overemphasized by agencies who make money out of percentages of media spend. Banners have a role in terms of awareness, but I’m not a fan of buying media in general, except when the creative proposition is great. Mostly, I see it as a necessary evil, except with search marketing, which is more interesting to me as it is less interuptive.

Earned Media
IMO, this is where the action is. This is where you have done something so cool or interesting that people want to use their own media to tell others about it, and hence you earn media. I am currently reading this brilliant analysis of why things spread from the guys at MIT.  They claim that content is shared (and therefore Media is Earned) because of three main factors relating to the dynamics of groups.

  1. To bolster camaraderie and articulate the (presumably shared) experiences and values that identify oneself as belong to a particular community (“bolstering their identity”)
  2. To gather information and explain difficult to understand events or circumstances.
  3. To establish the boundaries of an “in-group”.

Good stuff.

Some people think that Earning Media is about getting free space when budgets are tight. In my experience, Earning Media is a not necessarily a cheap option, and is certainly more time-consuming than buying media with big networks. More importantly, Earning Media is about engaging with consumers on their terms and gaining trust based on genuine understanding. Consumers don’t trust advertising, but they do trust peer recommendation. As long as brands don’t abuse this situation, then this leads to better quality, more authentic and more relevant marketing.

You can of course go into much more detail with each of these. And there are interesting overlaps. But in general, it is a simple model that has been useful in our digital planning.

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43 thoughts on “Owned, Bought and Earned Media

  1. Billy Abbott says:

    Your point about earned media not being cheap is an important one that not enough people seem to get – the number of marketers that think they can ‘buy’ a few bloggers before sitting back and letting the revenue roll in still scares me. As you say, it’s about engagement and becoming part of a community.

    Top stuff, sir.

  2. james says:

    the other thing, of course, is that there’s no guarantee you’ll earn yourself that media space. that goes back to your point about investing time as much as cash. so there’s calculated risk that you take on…which when done right, pays off.

    i guess it helps to have a certain brand history (and experience you get from learning along the way), and (maybe) to keep having the guts to keep going out and earning it.

  3. Jussi-Pekka says:

    I think the age old add-value-marketing-thinking is extremely spot on when it comes to earned media. Offering something that adds value in certain communities is nicely explained in MIT’s split.

    Btw. I thought it was JP’s team ;)

  4. [...] If you are interested how we are planning our digital media activities at Nokia, I recommend you to read Dan’s post about owned, bought and earned media. [...]

  5. [...] of my colleagues posted online the model we’ve been using for planning our digital marketing.  If you are involved in this kind of [...]

  6. [...] on the web. The way to get people’s attention in this most Darwinian of environments is to earn it be creating genuine value. This can be usefulness (think Google Maps and the value it brings to so [...]

  7. [...] The Owned Bought and Earned Media mix model has been useful for explaining why we need to move away from just buying media space, but it sometimes causes people to focus on the quantity of buzz, rather than the quality. The dreaded plague of viral marketing is a symptom of this way of thinking, where size of audience is everything. Consumer engagement is outdated if the aim is just reach: in that case it is really no different to the old PR models. [...]

  8. [...] we have had a go at re-drawing our Media Trinityto reflect some discussions we were having about this. We were discussing how the original Venn [...]

  9. [...] Holmgren jakoi median kolmeen osaan: maksettu, omistettu ja ansaittu media. Maksettua mediaa ovat esimerkiksi televisio, radio ja printtimedia. Omistettua mediaa ovat yrityksen omat syötteet, blogit, yhteisöt, verkkokauppa, suora posti, jotka maksavat nekin. Ansaittua mediaa ovat esimerkiksi vertailut, asiakaspalaute ja PR. Teemu Arina visersi Twitterissä myös alkuperäisen lähteen. [...]

  10. [...] statt, sondern (dezentral) an verschiedenen “Plätzen” im Web. Siehe hierzu auch den Beitrag von Daniel Goodall. FÜr die Web-Erfolgsmessung stellt sich hierbei die Frage, was sind die KPIs und Methoden zur [...]

  11. [...] If you’re not familiar with the Bought / Owned / Earned model, I’d strongly recommend this excellent post by Daniel Goodall for a clear and succinct overview. Earned ‘media’ (I think media is a [...]

  12. [...] the media options they have today. Nokia was an early pioneer in this space (see Dan Goodall's posts on the subject). They now categorize all of their global interactive media as earned, owned or [...]

  13. [...] media options they have today. Nokia was an early pioneer in this space (see Dan Goodall’s posts on the subject). They now categorize all of their global interactive media as earned, owned or [...]

  14. Your blog is excellent. I m gonna read more, ty for info. Continue working on blog.

  15. [...] U tom kontekstu, u nekoliko prethodnih meseci iskristalisala se jednostavna podela svih medija na sopstvene medije, “zaslužene” medije i plaćene medije, koju je za potrebe definisanja svoje strategije korišćenja savremenih medija među prvima iskoristila komp…. [...]

  16. [...] varagic –  Sopstveni, zasluženi i plaćeni mediji CITAT: ……U tom kontekstu, u nekoliko prethodnih meseci iskristalisala se jednostavna podela svih medija na sopstvene medije, “zaslužene” medije i plaćene medije, koju je za potrebe definisanja svoje strategije korišćenja savremenih medija među prvima iskoristila komp…………. [...]

  17. [...] introduced the concept of/differences between Bought, Owned and Earned media and the value/role of each one.  IMO, as marketers , we REALLY need to ‘get [...]

  18. [...] It Earns Media. Lots of people have Tweeted about it, and it was one of the rare marketing-led ideas [...]

  19. [...] is the cause of that spike you see in April 2009), as well as Nokia’s Daniel Goodall’s piece on it, are definitive initial thoughts of the topic. Both are great reads. Without going too in depth, [...]

  20. Hi Daniel

    Really appreciate you posting on this topic and sharing insight.

    For a concept that suppose to be so simple, I’m having a hard time wrapping my head around it and figuring out the advantage of using it.

    Is this more of a strategic way of referencing various aspects of the online/digital/interactive marketer or can it be used to draw up detailed plans?

    I think a lot of my confusion stems from the large overlaps- so much overlap that I’d argue simplicity is thrown out the window and I’m not seeing how this model helps bring order to the jungle.

    Social media efforts exist on owned properties but generate earned visits? Who gets the credit? Is it not about credit?

    Thanks again for your insight!

    _Casey

  21. dagood says:

    Hi Casey,

    Sorry about the late reply.

    The overlaps are definitely a complication, which is one of the reasons I re-drew the diagram:
    http://danielgoodall.com/2009/05/20/owned-bought-and-earned-redux/

    The diagram above implies that the activities are distinct, with some overlap. Actually I would say now that by doing own and bought media activities well (plus, having a good product of course!) a company earns media. Especially if it exceeds expectations.

    When we originally drew this diagram at Nokia in 2008, not many people in digital marketing were really talking about Social Media or Earned Media. Most digital campaigns were bought (banners and SEM) driving to a desitnation web-site. Earned media was more about talking to bloggers and getting third parties to review your product etc; even corporate Facebook presences were in their infancy The diagram was merely trying to express what now basically everyone knows: digital marketing is most effective when people around the web discuss it and share your message because it is interesting or useful (propagation planning).

    It’s not really about credit, and I would say the diagram itself cannot be used to draw up detailed plans. But it can be a decent way to structure your thinking and make sure that you are covering the three main aspects of a successful campaign.

    But then the devil is in the details, as they say ;)

  22. [...] Daniel Goodall, All that is good in the world of Digital Media: Owned, Bought and Earned Media [...]

  23. santoso says:

    Did there any books or literature that has theory of paid, own and earn media in digital media? i should read it to make my thesis :(

    anyone can help me?

  24. [...] kategoriesiert heute alle Medienpräsenz nach earned, owned und paid. Sehe hierzu einen Post von Dan Goodall. David Armano von Edelman, Pete Blackshaw von Nielsen schrieben ebenfalls über die Bedeutung von [...]

  25. [...] model first originated from Daniel Goodall in his post; owned, bought & earned media, back in 2009. Here’s the [...]

  26. 先にEarned/Paid/Ownedメディアという区分の起源をお尋ねしたが、京大の若林先生から以下の情報を頂戴した。こちらのDaniel Goodall記事は2009年3月でもとNokiaで使われていたとある。

  27. [...] is no longer limited to three groups (earned, owned and paid, as coined by Forrester or first by Nokia some years ago), but instead categorized into five key segments: Paid, Promoted, Owned, Shared, and [...]

  28. Provide the information which people want to know.
    This information should be share with each other to update the other and your friends.
    Anaheim Boot Camp

  29. [...] the web, it is almost impossible to predict what will be have a large “earned” impact. I freely admitted that I would not have predicted the success of the T-mobile dance [...]

  30. [...] been a few years since I posted the original Own, Bought and Earned media model and the slightly updated version a little while [...]

  31. [...] very difficult.  Here’s an example of easy change. Five years ago people did not talk about owned, bought and earned media. Now it is so commonplace that owned, bought and earned are thought of as “traditional” [...]

  32. [...] find very difficult.  Here’s an example of easy change. Five years ago people did not talk about owned, bought and earned media. Now it is so commonplace that owned, bought and earned are thought of as “traditional” [...]

  33. [...] for a long time, and it has significantly evolved from its earlier incarnations (for reference see 1, 2, 3 & 4). While the thinking behind the models has been very useful to me when planning and [...]

  34. [...] to Séan Corcoran, earned media is often the result of well executed Owned and Paid Media. Daniel Goodall, who works for Nokia, is of the opinion that ‘Earned Media’ is the best kind of media there is. [...]

  35. [...] Daniel Goodall from Nokia segmented his marketing options initially into three components. [...]

  36. The following blog post, “Owned, Bought and Earned
    Media | ALL THAT IS GOOD” shows the fact that u know precisely what you r communicating about!

    I actually 100 % agree with your blog. Thank you ,Nina

  37. […] this concept was first aired by Daniel Goodall in 2009 the exciting part for clients has always been earned media. With social networks delivering […]

  38. […] Online Marketing has, for a number of years, categorized their digital media / publishing options into 3 main types or channels. According to Forrester, Nokia was actually a pioneer of this and my former colleague Dan Goodall wrote on the subject back in 2009. […]

  39. […] model inmiddels steeds vaker gebruikt. Het model dat pas in 2009 voor het eerst verscheen op een weblog wordt nu al door vele grote en kleinere bedrijven […]

  40. […] model inmiddels steeds vaker gebruikt. Het model dat pas in 2009 voor het eerst verscheen op een weblog wordt nu al door vele grote en kleinere bedrijven […]

  41. […] This taxonomy evolved from a traditional regard for media. From what I can tell, Nokia was an early pioneer of this taxonomy, albeit expressing it as Owned, Bought and Earned. […]

  42. Esteban says:

    Hello, all is going sound here and ofcourse every one is sharing facts, that’s truly fine, keep up writing.

  43. Johng160 says:

    Very interesting topic , appreciate it for posting . The friendship that can cease has never been real. by Saint Jerome. kkfgcfbkffkf

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