PESO stands for Paid, Earned, Shared, and Owned. It refers to the four different types of media that a company can utilize to market itself and promote its brand.
Owned media is content that is created within the company. It is not just the descriptive text you have on your website; it is the value-added information and educational material that you provide your customers and clients. It is a blog, white papers, how-to video—the sort of thing that enhances your business but is not necessarily your business. Paid media is exactly what it sounds like—advertising. Anything marketing-related that you pay for falls into this category. Both Owned media and Paid media are types of media that are controlled within the company.
Earned media is essentially publicity. It often consists of editorials, reviews, or other promotional material that is generated by a third-party, thereby giving it more credibility than an ad generated from within the company. Shared media, the newest type of media, is a confluence of Owned, Paid, and Earned media. It is when something—a review, a blog post, a funny ad—catches the attention of social media outlets and is spread through those networked connections. A company can try to influence them, but both Earned media and Shared media are out of the direct control of the company.
Each media element has its own benefits and detractions, but when properly planned out and executed, the PESO elements combine to achieve the optimal return by being scalable, creditable, and cost efficient. You will probably not use each element equally, but creating a marketing plan that is spread across all four media can be a powerful tool in growing your business.
At The YGS Group, we have found that each of the different PESO elements can be effective in its own way. We evaluate the needs of each company we work with to come up with a plan that utilizes each media type.
Next week’s blog will go into further detail about how to make PESO work for your company.