What is the PESO Marketing Model?
The PESO marketing model is an excellent technique to organize our ideas and efforts in order to cover all aspects of marketing. Despite its origins in the area of public relations, this model can be an invaluable tool for all marketing professionals, regardless of marketing background or specialty.
Introduction:
PESO stands for “paid, earned, shared, owned,” and it is a method of categorizing all of the marketing channels available to a brand. It enables us to examine our efforts through any of these four lenses (paid, earned, shared, and owned) to determine whether more channels may be included into our new or existing programs. The methodology also allows us to organize and make sense of the channels in which we are currently investing.
Let’s break down what each channel means:
Paid: The exchange of money for distribution whether of an advertisement or content.
Earned: Earned by exchanging valuable information for the audience of a well-known authority.
Shared: Increasing the reach of your material through your own audience.
Owned: Gathering an audience that seeks out your content and then distributing it to that audience.
When was the PESO Model created?
The PESO Model™ officially launched in 2014, by Gini Dietrich, the creator of the PESO model and founder and author of Spin Sucks.
Why is PESO important in marketing?
The PESO model is important in marketing for a number of reasons:
Comprehensive Strategy:
It takes an integrated approach to marketing by incorporating several types of media (paid, earned, shared, and owned) into a single strategy. This guarantees that marketing activities are distributed across a wide range of channels, maximizing reach and effectiveness.
Credibility and Trust:
The PESO approach helps develop credibility and trust with the audience by incorporating earned media (e.g., favorable reviews and news coverage). Third-party information is frequently more reliable than paid marketing.
Audience Engagement:
It stimulates engagement through shared media (such as social media), allowing businesses to interact directly with their audience. This interaction has the potential to yield useful insights and strengthen consumer relationships.
Control and Consistency:
Owned media (e.g., company site, social media profiles) gives control over messaging and advertising. Marketers may ensure that their brand is portrayed consistently across several platforms.
Adaptability:
The PESO model takes into account the changing media landscape. It enables marketers to respond to changes in customer behavior and technology, ensuring that their plans stay productive.
In short, the PESO model is essential in marketing because it provides a formal structure for marketers to design well-rounded and integrated strategies that effectively reach, engage and influence their targeted audience while adjusting to the ever-changing media landscape.
How does the PESO Model work?
The PESO model is a strategic framework for planning and executing integrated communication and marketing initiatives that use a variety of media types including Paid, Earned, Shared and Owned media. This is how it works:
Paid Media:
How it works: Companies set aside funds to run paid advertising campaigns. This can include online advertising (for example, Google Ads and Facebook Ads), print advertising (for example, magazine ads), TV commercials, sponsored content and other forms of media.
Purpose: Paid media is used to swiftly reach a larger audience and promote specific messages or items. It allows for exact positioning and timing.
Earned Media:
How it Works: Earned media is generated by positive coverage and mentions received by an organization from journalists, bloggers, influencers, customers and the general public. It is frequently the outcome of a compelling story, product or service.
Purpose: The goal of earned media is to provide brand credibility and authenticity. It can be difficult to control but it is extremely valuable because it originates from reliable third-party sources.
Shared Media:
How it works: Organizations create and share stuff on their social media platforms and their followers connect with it by liking, sharing, commenting or engaging with it.
Purpose: The goal of shared media is to help develop a community and raise brand recognition. Through social sharing, it expands the reach of content to a larger audience.
Owned Media:
How it works: Organizations develop and maintain owned media which includes their website, blog, social media profiles, email newsletters and other online platforms.
Purpose: The goal of owned media is to provide a foundation for the organization’s digital presence. It gives you complete control over your messaging and branding as well as a platform for communicating with your audience.
What media are used in the PESO Model?
The PESO model includes four types of media:
Paid Media:
It refers to advertising and promotional content purchased by businesses such as web advertisements, print ads, TV commercials and sponsored content.
Earned media:
It is publicity and exposure gained through sources other than paid advertising such as news coverage, social media mentions and recommendations from others.
Shared Media:
Content shared by individuals or organizations on social media platforms such as posts, shares, likes, comments and other interactions is referred to as shared media.
Owned Media:
Owned media includes material and channels over which organizations have direct control such as their websites, blogs, social media profiles, email newsletters and other online platforms.
The PESO model promotes the incorporation of these four types of media in order to develop a comprehensive and effective communication plan.
Peso Model Example:
In a PESO model, a corporation may employ paid media such as Facebook advertisements to promote a new product. They gain media attention when prominent bloggers review their products. Positive feedback is posted on social media by the company (shared media) and the product’s features and benefits are explained on the company’s website (owned media). This integrated strategy increases brand visibility and credibility.
FAQ:
Is the PESO business model appropriate for small businesses?
Yes, the PESO concept is adaptable to small businesses. It provides inexpensive opportunities through shared and owned media. Also, earned media can assist in creating a reputation on a limited budget.