What is the PESO Marketing Model?

What is the PESO Marketing Model?

A Comprehensive Paid, Earned, Social and Owned Media Strategy Can Supercharge Your Franchise Company’s Outreach

Franchisors looking to boost their brand image should consider implementing a PESO strategy. Never heard of a PESO strategy? No, it’s not Mexican money. The PESO marketing strategy consists of four areas: paid media, earned media, shared media and owned media.

A well-thought-out PESO strategy can help elevate your business profile, create greater visibility and increase relevant, inbound leads. This strategy is particularly effective for franchisors seeking to expand their franchise operations, franchisees aiming to attract local customers, and suppliers wanting to connect with more brands.  

The PESO model integrates different marketing techniques and activities to establish a robust presence across all media types. Employing the PESO model ensures that your content is strategically optimized across all platforms, from content distribution to customer interaction, maximizing effectiveness. Applying all four of these tactics is the best approach.

Paid Media

PESO Marketing Strategy

Paid Media refers to any form of advertising that requires payment to place your business in front of potential customers. This can include digital ads on websites and social media, outdoor advertising like billboards, broadcast placements on TV and radio, and traditional formats such as print and direct mail. Paul Inman from Billboard agency 75 Media notes that an adult in a metropolitan area may encounter anywhere from 50 to 400 advertisements per day. That’s a lot of information! 

Pros

  • Control: Paid media allows for complete control over the content, timing and placement of your message.
  • Precision: Advertisers can target specific audiences with tailored messages designed to meet the campaign’s objectives.
  • Scalability: The reach of paid media can be expanded based on budget, from local targets to global audiences.

 Cons

  • Ad Fatigue: With hundreds of ads bombarding consumers daily, people may become numb, making it harder for a single ad to stand out.
  • Credibility Issues: Ads are inherently self-serving, which can lead to skepticism especially among younger demographics who prefer authenticity.
  • Budget Constraints: The scope and duration of a paid media campaign are often limited by budgetary restrictions.

Earned Media

PESO Marketing Strategy

Earned media encompasses public relations efforts that lead to third parties — such as news outlets, bloggers, or influencers — highlighting your business. This coverage is initiated by a PR agency or internal team and features a compelling story with genuine news value to grab the attention of these entities.

A Harvard Business School article reveals that earned media is effective because consumers often trust personal recommendations versus advertisements. According to Nielsen’s Trust in Advertising survey, 88% of respondents said they most trust recommendations from people they know.

Pros 

  • Credibility: Earned media benefits from the perceived integrity of third-party endorsements.
  • Cost-Effective: Generally incurs less expense than paid media since it relies on natural coverage rather than paid placements.
  • Extended Reach: Can potentially go viral, extending beyond the original audience without additional expenditure.
  • SEO Benefits: Positive mentions in reputable publications can enhance search engine rankings.

Cons

  • Timing and Control: The timing of earned media coverage is unpredictable and the messaging is not controlled by the advertiser, posing challenges in consistency and planning.
  • Effort Intensive: Requires substantial effort in building relationships and crafting compelling stories that resonate with media outlets and their audiences.
  • No Guarantees: There is no guarantee that the efforts in PR will result in media coverage.
  • Risk of Negative Coverage: If the public or the media reacts negatively to a story, it can harm rather than help the brand’s reputation.

Social Media

What is the PESO Marketing Model?

Social media marketing involves posting content on your social media channels, aiming for engagement and the possibility of going viral. However, building a solid following requires time and consistency. But it could be worth the effort if you capture the right audience, which is vast on social media. According to Forbes, 4.9 billion people use social media platforms worldwide — that’s a huge potential customer base. 

Pros

  • Cost-Effectiveness: Social media is an economical option for disseminating news and information quickly.
  • Timeliness: Allows for immediate communication and updates, which is vital in a digital age where timing can be crucial.

Cons

  • Uncertain Reach: There’s no assurance that posts will be shared widely or receive significant engagement.
  • Lack of Control: Brands are at the mercy of the social media platforms, which they do not own. For example, if Mark Zuckerberg wakes up one day and decides to ban links or close Facebook altogether, all the content created on that unowned platform is gone.

Owned Media

What is the PESO Marketing Model?

Owned media refers to any communication platform that you directly control, including the content, messaging, and timing of publications. Examples of owned media include your website, blog and mobile applications. These platforms allow for complete governance over how and when your content is presented to your audience. “Owned media is the most valuable and most misunderstood asset for the long game of any communications program,” says Monica Feid, co-founder and COO of BizComAssociates, a leading public relations firm that specializes in franchising. “While all media is critically important and should work together, everything should drive an audience to owned media (like a website) that you control indefinitely.”

Pros 

  1. Complete Control: You have full control over the content, messaging, timing and aesthetics of your media platforms.
  2. Cost Efficiency: After initial development and setup costs, owned media can be cost-effective to maintain, allowing unlimited content updates without additional charges.
  3. Customization: Enables personalized and targeted content tailored specifically to the needs and preferences of your audience.
  4. Long-Term Value: Provides a durable asset that delivers value over time, increasing your brand’s digital footprint and SEO ranking.
  5. Credibility and Authority: Helps establish your brand as a credible authority in your industry by allowing you to publish thought leadership articles, detailed product information, and company news.

Cons

  1. Resource Intensive: Requires significant time, effort, and money for creation and upkeep, from content production to technical maintenance.
  2. Slow Build: Growing your audience organically on owned platforms typically takes longer than on paid or earned media.
  3. Skills Required: Necessitates a range of skills from content creation and graphic design to technical web development and SEO expertise.
  4. Limited Reach Initially: Newly created platforms may suffer from low visibility and require significant promotional efforts to generate traffic.
  5. Risk of Obsolescence: Technology and consumer preferences evolve quickly; owned platforms must be regularly updated to stay relevant and effective.

Integrating the PESO Marketing Strategy

Integrating paid, earned, shared, and owned media is essential for franchise companies looking to elevate their market presence. This comprehensive approach boosts visibility, enhances credibility and drives targeted leads, maximizing outreach across all channels. Adopting the PESO marketing model leverages the full spectrum of media to ensure dynamic growth and a strong competitive edge. And while it shares a name with Mexican currency, this PESO could significantly enrich your franchise company’s bottom line!

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Gene Sower is the director of brand management and PR for FranchiseWire.com. As founder of the digital marketing company Samson Media, LLC, Sower brings knowledge and expertise to national franchise brands looking to leverage content marketing to increase relevant leads, build credibility, and increase their online visibility via SEO.
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