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The Role of Paid, Earned, and Owned Media in Building Entertainment Brands: Reminding, Informing, and Enhancing Enjoyment

Author

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  • Mitchell J. Lovett

    (Simon Business School, University of Rochester, Rochester, New York 14627)

  • Richard Staelin

    (Fuqua School of Business, Duke University, Durham, North Carolina 27708)

Abstract

We study three ways firms can communicate about their brands—paid media (advertising), earned media (word of mouth and online social media), and owned media (brand websites and other owned content)—and the roles these media types play in reminding (i.e., activating memory), informing (i.e., learning their tastes for the brand), or enhancing enjoyment (e.g., gaining additional utility from socializing about the brand). We do this for a new TV show setting using a data set that contains reported viewing, exposures, expectations, and experiences. We present descriptive analyses and results from a new structural model, which indicate that earned media is more impactful than paid and owned media per exposure. However, paid media has far more exposures, so for a given percentage increase, paid media’s influence dominates earned and owned media. Earned media operate primarily through enhancing enjoyment, whereas paid media operate through reminding and owned media through reminding, but discourage live viewing. We find that media exposures help consumers learn about how well they will like the program. However, this learning can either increase or decrease the expected liking, and in our data the average audience effects are negligible. Overall, we find that earned and paid media play a central role in developing and maintaining entertainment brands.

Suggested Citation

  • Mitchell J. Lovett & Richard Staelin, 2016. "The Role of Paid, Earned, and Owned Media in Building Entertainment Brands: Reminding, Informing, and Enhancing Enjoyment," Marketing Science, INFORMS, vol. 35(1), pages 142-157, January.
    • Handle: RePEc:inm:ormksc:v:35:y:2016:i:1:p:142-157
    DOI: 10.1287/mksc.2015.0961
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    Cited by:

    1. Travis Tae Oh & Kevin Lane Keller & Scott A. Neslin & David J. Reibstein & Donald R. Lehmann, 2020. "The past, present, and future of brand research," Marketing Letters, Springer, vol. 31(2), pages 151-162, September.
    2. Beth L. Fossen & Alexander Bleier, 2021. "Online program engagement and audience size during television ads," Journal of the Academy of Marketing Science, Springer, vol. 49(4), pages 743-761, July.
    3. repec:thr:techub:10014:y:2020:i:1:p:310-315 is not listed on IDEAS
    4. Beth L. Fossen & David A. Schweidel, 2017. "Television Advertising and Online Word-of-Mouth: An Empirical Investigation of Social TV Activity," Marketing Science, INFORMS, vol. 36(1), pages 105-123, January.
    5. Andrew T. Ching & Tülin Erdem & Michael P. Keane, 2017. "Empirical Models of Learning Dynamics: A Survey of Recent Developments," International Series in Operations Research & Management Science, in: Berend Wierenga & Ralf van der Lans (ed.), Handbook of Marketing Decision Models, edition 2, chapter 0, pages 223-257, Springer.
    6. Stephan Seiler & Song Yao & Wenbo Wang, 2017. "Does Online Word of Mouth Increase Demand? (And How?) Evidence from a Natural Experiment," Marketing Science, INFORMS, vol. 36(6), pages 838-861, November.
    7. Vasu Unnava & Ashwin Aravindakshan, 2021. "How does consumer engagement evolve when brands post across multiple social media?," Journal of the Academy of Marketing Science, Springer, vol. 49(5), pages 864-881, September.
    8. Penttinen, Valeria, 2023. "Hi, I’m taking over this account! Leveraging social media takeovers in fostering consumer-brand relationships," Journal of Business Research, Elsevier, vol. 165(C).
    9. Santiago, Joanna & Borges-Tiago, Maria Teresa & Tiago, Flávio, 2022. "Is firm-generated content a lost cause?," Journal of Business Research, Elsevier, vol. 139(C), pages 945-953.
    10. Yi-Lin Tsai & Elisabeth Honka, 2021. "Informational and Noninformational Advertising Content," Marketing Science, INFORMS, vol. 40(6), pages 1030-1058, November.
    11. Eigenraam, Anniek W. & Eelen, Jiska & Verlegh, Peeter W.J., 2021. "Let Me Entertain You? The Importance of Authenticity in Online Customer Engagement," Journal of Interactive Marketing, Elsevier, vol. 54(C), pages 53-68.
    12. Lindsey-Mullikin, Joan & Borin, Norm, 2017. "Why strategy is key for successful social media sales," Business Horizons, Elsevier, vol. 60(4), pages 473-482.
    13. Mina Ameri & Elisabeth Honka & Ying Xie, 2019. "Word of Mouth, Observed Adoptions, and Anime-Watching Decisions: The Role of the Personal vs. the Community Network," Marketing Science, INFORMS, vol. 38(4), pages 567-583, July.
    14. Hauke A. Wetzel & Stefan Hattula & Maik Hammerschmidt & Harald J. Heerde, 2018. "Building and leveraging sports brands: evidence from 50 years of German professional soccer," Journal of the Academy of Marketing Science, Springer, vol. 46(4), pages 591-611, July.
    15. Art Shala & Xhevat Sopi, 2022. "Communication channels consumption across awareness building, information search and school choice - perspectives from the VET sector in Kosovo," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 23(1), pages 109-118, June.
    16. Shunyao Yan & Klaus M. Miller & Bernd Skiera, 2020. "How Does the Adoption of Ad Blockers Affect News Consumption?," Papers 2005.06840, arXiv.org, revised Aug 2021.
    17. Bryan Bollinger & Kenneth Gillingham & A. Justin Kirkpatrick & Steven Sexton, 2022. "Visibility and Peer Influence in Durable Good Adoption," Marketing Science, INFORMS, vol. 41(3), pages 453-476, May.
    18. Mitchell J. Lovett & Renana Peres & Linli Xu, 2019. "Can your advertising really buy earned impressions? The effect of brand advertising on word of mouth," Quantitative Marketing and Economics (QME), Springer, vol. 17(3), pages 215-255, September.
    19. Anatoli Colicev & Ashwin Malshe & Koen Pauwels, 2018. "Social Media and Customer-Based Brand Equity: An Empirical Investigation in Retail Industry," Administrative Sciences, MDPI, vol. 8(3), pages 1-16, September.
    20. Weijia Dai & Hyunjin Kim & Michael Luca, 2023. "Frontiers: Which Firms Gain from Digital Advertising? Evidence from a Field Experiment," Marketing Science, INFORMS, vol. 42(3), pages 429-439, May.
    21. Marwan Walid Mohammad Al-Quran, 2022. "Traditional media versus social media: challenges and opportunities," Technium, Technium Science, vol. 4(1), pages 145-160.
    22. Hoppner, Jessica J. & Vadakkepatt, Gautham G., 2019. "Examining moral authority in the marketplace: A conceptualization and framework," Journal of Business Research, Elsevier, vol. 95(C), pages 417-427.

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