Recently, the three letters PEO (Paid Earned Owned) have joined the buzz words bandwagon as much as they became the cornerstone of any communication strategy. While many people try to understand how Paid Earned and Owned can interact, only a few have really managed to accurately quantify these interactions.
As Brand Content and Social media communications are increasingly important, major brands seize these opportunity to better engage with their audience without losing their legacy, their codes, and their values. But what is the real impact of these actions?
Today, UM, through its department dedicated to the digital strategies of the luxury sector, Dataluxe, partner with Mediabrands Analytics, the entity dedicated to econometric modelling.
Together, they give you a better understanding of the synergies between Paid (Media investments) Earned (Buzz Online) and Owned (Web visits) for the French luxury industry.
9 luxury and fashion brands were analyzed. 18 econometric models were produced. They take into account 936 weeks, more than 500 million euros of media investment and nearly 110,000 mentions to brands on blogs, news, forums and social networks.
Through this modeling we stress the importance of Paid Media in the evolution of Buzz and Interest generated around brands, but also the strength that can represent an optimal interaction between the three variables. The models demonstrate the opportunity of creating a virtuous circle of Paid, Earned and Owned. An ecosystem of synergies can be leveraged for the benefit of engagement, be it Word of Mouth of Website Traffic.
These synergies do not necessarily require the biggest budgets. This is one of the main conclusions of the study. Indeed, certain brands with low media investments have found the right combination to maximize the impact of their digital actions and make people talk about them.
This brand engagement, UM and DataLuxe help you understand how it works and carry out the actions that triggers it.
Our methodology will meet your digital issues, through models of quality and meaningful benchmarks for your business.
Because we know what works.
Curiosity works!
Strategies for Landing an Oracle DBA Job as a Fresher
Peo presentation - UM Paris - Dataluxe [English]
1. The 1st PEO (Paid-Earned-Owned) Digital Research on Luxury sector
23 may 2012
2. Introduction
Understand the full territory of expressions of the luxury brands today….
to be more efficient tomorrow
« The 1st analyze ever realized on the luxury market able to quantify impact and synergies between media investment, e-reputation
and Online Buzz » Stéphane Bodier, President of Mediabrands France
5. Econometrics
A reliable science
Definition
Applied to the Media sector, the goal of econometrics is to establish and measure correlations between
different variables (media investment, buzz, temperature, competition, etc…) and sales (or web visits,
awareness, brand search volume, etc…).
The recurrence of the observed effect will allow us to be accurate in quantifying them, hence the
importance of having reliable historic data.
Our expertise and our proprietary tools allow us to understand and analyze millions of data in a record
time
6. Econometrics
A reliable science
Example of uses
Media
contribution on
Web Visits
8%
Web Visits
Web visits obtained
through our model 20%
Media 15%
investments
7. Evolution
Performance at the center of the process
Evolution of process through time
Frequently used on the past 10 years in the Media sector, econometrics was then an extremely complex and
painful process, several months were needed to obtain strong conclusions that were most of the time already
obsolete.
Today, thanks to technology evolutions, we are able to use many efficient tools to realize our econometric
models with a higher quality and a significantly shorter period of time.
Econometric has finally become an indispensable process for all clients to:
- Isolate and quantify marketing activities effect (and other none media factors)
- Optimize On and Off marketing strategies
- Maximize performances
9. 3 key variables
A full vision on communication strategies of luxury brands
PAID (MEDIA) EARNED (BUZZ) OWNED (INTEREST)
Place of communication in an Assets owned by the brand that give
Endorsement of a brand
environment that belongs to direct contact with consumers
by a third-party
a third-party (generate their interest)
Any Media investment On and Off, TV, Buzz Online on news web sites, blogs, Web site visits, Youtube channel ,
Press, OOH, Cinema, Catch Up, or forums, social networks, Twitter, Facebook page, Apps, Point of sales
Affiliation, Display, mailing, etc… Facebook or Pinterest, etc… visits, Brand search volume, etc…
10. 3 key variables
A strategic analyze through hard-data, real and accessible
PAID (MEDIA) EARNED (BUZZ) OWNED (INTEREST)
With « #Burberry
Beijing », the British brand really
created a state of the art event, we
LIKE!!!
All Media Off and Display
For the ON part Mentions on Blogs, News and Forums Brand Search volume
11. The purchase funnel
Google Search: representative for brand consideration
External factors MIX MARKETING (Media+ Other)
Econometric process is able
to integrate every stage of
the purchase funnel
separately or simultaneously,
BUZZ
on the behalf of the client
needs.
AWARNESS CONSIDERATION INTENTION BUY
Quotation requests
Google Search
Awarness Online subscriptions Sales
Website visits
Website visits
12. The purchase funnel
Google Search: representative for brand consideration
External factors MIX MARKETING (Media+ Other)
Econometric process is able
to integrate every stage of
the purchase funnel
separately or simultaneously,
BUZZ
on the behalf of the client
needs.
AWARNESS CONSIDERATION INTENTION BUY In this study, we will focus on
Consideration and its
interaction with Paid (media)
and Earned (Buzz)
Quotation requests
Google Search
Awarness Online subscriptions Sales
Website visits
Website visits
13. The purchase funnel
Google Search: representative for brand consideration
Why Google Search instead of Web visits?
- Real and reliable data, from a single source (comparisons are possible)
- Minimum of 2 years of weekly data available for every brands
- Brand search request (not generics one) most of the time redirect the internet user to the brand web site (so
very similar to website visits)
- Brand search is not influenced by Paid Search, it reflects the real interest from the internet user for the
brand he’s looking for
AWARNESS CONSIDERATION INTENTION BUY
Quotation requests
Google Search
Awarness Online subscriptions Sales
Website visits
Website visits
14. Key information
A powerful analyze integrating many data
Two years of data, represents a total of
936 weeks 9 Brands of the luxury
sector analyzed in France
and fashion
505.000.000 € More than 110.000 Mentions of the
Of Media investments brands on Blogs, Forums and News in
France
….to realize 18 econometric high quality models
15. The brands
9 actors of luxury and fashion sector in France
16. Media
PAID
PAID is in strong progression
Répartition des investissements par
Media en 2011 +11,9% of progression from 2011 vs 2010 thanks
Radio
Display
12%
<1% to TV, Press and Display
TV TV (+20%), Press (+11%) and
37% Display (+7%), Media with a
strong progression
Press
46%
OOH
5%
Jan-2010 Jan-2011
Media investment of the 9 brands analyzed from Jan. 2010 to Déc. 2011 with
17. Media by sector
PAID
Perfumes, the category with highest media investment
Media investment by sector Progression of Media +250% invest. in
2010-2011 investment by sector communication
2010-2011 about website
Autres secteurs 4,6% 5,8%
Autres secteurs 42,9%
Perfume is the
Parfumerie sector with the higher
Parfumerie 1,5% media investment
62,1% 56,0% through the 9 brands
Cosmétique
Cosmétique 35,8% analyzed.
Marroquinerie Cosmetic and
Marroquinerie -0,9%
15,1%
Jewelry/watches
Joaillerie/Montre 12,5% sectors are having
6,7% Joaillerie/Montre 52,4% the strongest
7,6%
6,6% 8,9% progression (and
Couture/Habillement
6,7% 7,5% Couture/Habillement 26,4% website
development)
2010 2011
18. Visits
OWNED
OWNED is following the trend
With a progression of 18% in 2011 vs 2010, it’s obviously easy to connect the
evolution with increase of media investment…it’s common sense.
Jan-2010 Jan-2011
Average of brand search volume of the 9 brands analyzed from Jan. 2010 to Déc. 2011 with
19. Buzz
EARNED
Buzz is even more impacted
Mentions repartition by
Buzz type in 2011 With more than 45% of mentions increase in 2011 vs 2010 thanks to News and
Forums, it is more obvious that the 3 variables are correlated to each other.
BLOGS
17%
NEWS
45%
News (+100%),
FORUM Forums (35%), the
38% strongest progressions
Jan-2010 Jan-2011
Total Mention of the 9 brands analyzed in Jan. 2010 to Dec. 2011 with
20. Twitter
EARNED
with insufficient history
Mentions repartition by
Buzz type in 2011 including Twitter mentions
Twitter represents 21% of the brand total mentions on the web.
Still it has a to short historical data available to be able to integrate it in the
analyze
BUZZ
TWITTER
Jan-2010 Jan-2011
Total Mention of the 9 brands analyzed in Jan. 2010 to Dec. 2011 with
21. Facebook
EARNED
not enough historical data and complex to integrate
FB fan talks Ratio
FB Fans* Language
about* Fan/Share
Facebook, difficult media to integrate
Burberry 10 943 371 215 410 51 Eng
Dior 6 911 902 120 866 57 Eng
Which variable should we use? Number of Fans is
not always representative of brand interest (can
Chanel 5 829 839 133 411 44 Eng buy them), so does the sharing/like variable
Hermes 512 865 8 660 59 Fr
No historical data available
Longchamp 464 531 7 113 65 Fr
Zadig & Voltaire 232 522 4 551 51 Fr Comparisons are difficult (global vs local pages)
Lancôme Expert 226 377 703 322 Fr
Lancôme 223 695 5 897 38 Fr
Could be integrated if clients share
The Kooples 148 266 2 625 56 Fr
data, but comparisons with other
Eric Bompard 18 050 56 322 Fr brands then impossible
*Facebook March 2012
22. Trends
PEO variables: conclusion
A sector investing more and more in Media
Evident correlation between the progression of media investment, increase of
brand request and buzz
Need to go further into the correlation analyze through a specific methodology to
quantify precisely all the synergies: Econometric!
24. PEO Model
Questions answered
How to optimize my Does my media activities Do I reach optimal Finally, what should be my
marketing activities to have any direct effect on synergy between Buzz and next brand strategy to be
maximize brand interest? word of mouth? Website visits? more efficient?
25. PEO Model
Two complementary modeling for a brand
Model
I want to trigger traffic to my website
Model
I want people to talk about my brand
Sources photos: www.Flickr.com
26. PEO Model
Variables in details
Modèle Owned
PAID EARNED
=
TV OOH Radio
Display Press Cinema
+ News
Blogs
Forums
Modèle Earned
PAID OWNED
TV
Display
OOH
Press
Radio
Cinema
+ Search
=
27. PEO Model
Quality everywhere
Predicted results by the model vs real data
(Brand A)
Our 18 models allow us to explain 80%* of the
requests and mentions weekly variance for
every of the 9 brands
Actuel Modèle
Ownedt = β0 + � βi × Ti (xit ) + � βj × Tj (xjt )
Formula of a multiple régression model:
i∈Inc j∈Base
i = Paid, Earned
j = Base (Seasonality + Other factors)
*Average of Adjusted R2
28. PEO Model
The PEO Methodology
High quality models, reliable, transparent and accessible to all
Search and Buzz both integrated
Hard data available, real compartmental data
Possibility to compare results through different brands of different sectors, even
internationally
An essential support to develop a digital strategy to be more efficient in your day to
day decision making process
32. OMG, j'aurais pas du regarder la pub qui précède la vidéo en entier, maintenant il me
faut un ROUGE IN LOVE de Lancôme
Kate Winslet, qui a réalisé pour Lancôme une collection capsule pour sa fondation
Golden Hat, met en lumière un look ultraglamour, au raffinement indémodable.
J'ai pas résisté, j'ai maintenant le nouveau teint miracle de Lancôme en ma
possession!!
L’expérience du maquillage virtuel avec Lancôme: Cool!
33. Art of the Trench Burberry Acoustic
Le premier « social network » lancé par une marque Promotion d’artistes (Juin 2010)
Tweetwalk Piccadilly Circus Gifts
Défilé sur Twitter (Sept. 2011) Retransmission du défilé (Sept. 2011) Echantillons sur Facebook (Sept. 2011)
34. Observation#1
Media strategy of luxury brands generates stronger digital
benefits than other sectors
Campaigns have higher impact on Buzz and Search
35. Impact of PAID
Luxury brands, more efficient when generating buzz and web visits
Luxe
Strong simultaneous impact on Earned and Owned
20 % PAID 22 % On 100 brand requests on Google, 22 have been
stimulated before by Media activity.
On 100 brand mentions on the web, 20 have been
EARNED OWNED influenced by Media exposition before.
Source: Megastar, Mediabrands Analytics
36. Impact of PAID
Luxury brands, efficient on EARNED
Automobile TV constructors
Luxe
20 % PAID 22 %
Similarities
Strong media activity
EARNED OWNED Powerful launches, highly present on Media
High cost of the products promoted
Needs to discuss about it before going on the brand website
Differences
Low impact of the Media investments on website visits for the other two
sectors
Source: Megastar, de Mediabrands Analytics
37. Impact of PAID
Luxury brands, efficient on OWNED two
Telecomunication operators
Luxe
20 % PAID 22 %
Similarities
EARNED OWNED • Strong seasonality (fashion shows, new phone launches and offers, etc..)
• High buying frequency
• Interest to inform at the source, directly from the client website
Differences
• Low impact on Buzz when Telecom operators communicate in Media
Source: Megastar, de Mediabrands Analytics
38. Impact of PAID
Conclusions – Luxury PAID Media have a simultaneous impact on Earned and Owned
Automobile Téléviseurs Opérateurs Téléphoniques
Luxe
20 % PAID 22 %
Conclusions
EARNED OWNED Media of Luxury sector is generating simultaneously strong effect on
digital activities
The digital pathway realized by the clients is different by sector for many
reasons, that is why it is important to quantify and compare it, to better
understand them!
Source: Megastar, de Mediabrands Analytics
39. Observation#2
> It is not because you have a smaller media budget that
you’ll be less efficient
It is possible to strongly impact buzz or web visits thanks
to smart media investment, content, creativity or support.
40. Impact du PAID
David and Goliath, possible story for brands of the luxury sector
Best impacts of Media on Owned
Average weekly media investment
Dior
Chanel
Lancôme
Hermes
Burberry
Longchamp Best impacts of Media on Earned
Zadig & Voltaire
Eric Bompard
The Kooples
0 500 1000 1500 2000
*Average media investment calculated on the full period 2010-2011
41. Obvservation #3
Luxury Brands, a more important synergy between
Earned and Owned, and more balanced than other sectors
Marketers Graal: the more synergies are important and
balanced, the more a virtuous cycle is created
Clients engagement is the force that makes the brand live
by itself on the web
42. Synergies EARNED - OWNED
Strong synergies between Owned et Earned
Luxe
Web visits generally generate a lot of discussions on
the web
PAID
On the other side, discussions (or web news) invite a
bit less the internet user to go and visit the website of
18 % the brand
EARNED OWNED
37 %
Source: Megastar, de Mediabrands Analytics
43. Synergies EARNED - OWNED
Luxury brands, more efficient and balanced between Owned and Earned
Luxe Interactions between Buzz and
Website visits are not always
that strong in every sector.
PAID
Luxury brands is more efficient
to attract people to their
18 % website from the buzz.
EARNED OWNED Luxury brands are closer to
create the virtuous cycle,
37 % fluent and balanced.
Source: Megastar, de Mediabrands Analytics
44. Observation #4
Luxury brands can be separated into 3 segments
depending on their Owned/Earned synergy levels
For each segment, we will be able to define actions to
improve brand strategy and maximize performance.
45. Synergies EARNED - OWNED
The 3 segments
Drive to Earned Drive to Owned Earned = Owned
Innovative website and Discussions invite client to go They created the virtuous cycle
content… and see the website thanks to an innovative
…that makes people talk Create the need to search more marketing strategy
about it information about the brand
Internet users travel between
…that make you want to
buzz discussion and websites,
discuss, ask and interact with
interact everywhere with it
others Once they come to the website,
the don’t always go back and Capacity to generate brand
Not always manage to make the talk about the brand on the engagement, affective capital
link to bring influencers to their blogs, news or forums with consumers.
websites again
Source: Megastar, de Mediabrands Analytics
46. Synergies EARNED - OWNED
The brands inside each segment
Every segment is composed by many brands that are pretty different, but they probably have a lot of similarities to,
maybe because of their strategy or objectives
Synergies Owned-Earned by brand
Owned Drive to Earned
Earned Drive to Owned
47. Synergies EARNED - OWNED
The brands inside each segment
Every segment is composed by many brands that are pretty different, but they probably have a lot of similarities to,
maybe because of their strategy or objectives
Synergies Owned-Earned by brand
Drive to Earned
Owned Drive to Earned
Earned Drive to Owned
48. Synergies EARNED - OWNED
The brands inside each segment
Every segment is composed by many brands that are pretty different, but they probably have a lot of similarities to,
maybe because of their strategy or objectives
Synergies Owned-Earned by brand
Drive to Earned
Owned Drive to Earned
Drive to Owned
Earned Drive to Owned
49. Synergies EARNED - OWNED
The brands inside each segment
Every segment is composed by many brands that are pretty different, but they probably have a lot of similarities to,
maybe because of their strategy or objectives
Synergies Owned-Earned by brand
Drive to Earned
Owned Drive to Earned
Earned = Owned
Drive to Owned
Earned Drive to Owned
50. Synergies EARNED - OWNED
The brands inside each segment
Drive to Earned Drive to Owned Earned = Owned
Source: Megastar, de Mediabrands Analytics
51. Synergies EARNED - OWNED
Some clues of the recomandations we could have by segment
Drive to Earned Drive to Owned Earned = Owned
Go to find internet users where Develop innovative platform, Keep the synergies growing :
they are, re-orient them to your quality content, that will make
Go deeper in the marketing
website: generate buzz:
mix modeling to optimize
Display (Adexchange) Mini websites media investment
Facebook Ads Youtube chanel Keep an eye on new digital
SEM (Paid Search) Social Media Management trends to stay on top
PR Bloggers Brand content Have a strong reporting to
follow your trends day by day
Source: Megastar, de Mediabrands Analytics
52. Synergies EARNED - OWNED
Best synergies between Earned-Owned
This time, the most famous brands are on top, they managed to create the virtuous cycle, powerful and balanced, that
make their clients engaged with their brand
*Sum of the 2 rankings of synergies Owned on Earned and Earned on Owned, and ranking of the most balanced synergies brands
54. Understand
Luxury brands and PEO
Luxe
With our PEO model on luxury brands, we wanted to understand
20% PAID 22%
how brands manage to optimize their engagement with public
audience through Paid, Earned and Owned, to create a privileged
relation with them.
18%
Through that study, we can observe different kinds of engagement,
EARNED OWNED focused on Earned or Owned, or both of them.
37%
Source: Megastar, de Mediabrands Analytics
55. Pilote
Luxury brands and PEO
The Dataluxe offer, is to work with you through a similar approach of the
one presented today to understand what are the synergies between your
three key pillars of media development, PEO
Pilote PAID We could eventually go further into the analyze developing deeper
models with your own data and make specific conclusions by media or
buzz variables.
Listen We could use our proprietary tools and expertise to optimize your actions
on all or some part of your brands strategy.
EARNED OWNED
Piloting effectiveness off your Paid activity
Listening to your universe, keeping an eye on your Earned Media
Transform Transforming interest of your audience into actions on your owned media
With Dataluxe, we offer the possibility to fully understand what’s working.
because Curiosity Works.