Yesterday, during a spirited panel discussion I moderated at Cincinnati's Digital Hub Conference featuring P&G's Dave Knox, Empower's Kevin Dugan, and former P&G digital leader Suzanne Tosolini, we talked a fair amount about how to balance "Paid" versus "Earned" media, a question I've been thinking about constantly at Nielsen and beyond. It's a mission critical question -- one with massive implications for both marketing and operational investment -- and it was no coincidence that I used this as a foundational slide to prod and catalyze the conversation on the topic of using social media and digital to build great brands.  

We're finally at a true crossroads in marketing.  There is so much evidence across the web that "earned media" -- consumer-generated media, social media, conversation, variants of PR -- is creating meaningful lift and value for brands that we now need to think more critically about resource and spending allocations.  Empirical evidence makes clear, for example, that customer service is a major driver of "earned media," but fixing or improving customer service takes real investment. Where does it come from?  Do we slice it off the "paid media" side of the equation.  And who makes that decision?  The CMO as currently defined, or some new hybid role that combines marketing, PR, and service?  Alas, the big questions.

Then again, it's not that simple, which is one reason the latest iteration of my paid/earned grid (which draws its initial inspiration from Dachis's David Armano's very early industry prodding on this framework) includes a third wheel called "blended media."  Here is an attempt to acknowledge that paid media often serves as a critical stimulus or even vitamin for "earned media."  Moreover, in a world of crowdsourcing and co-creation, "earned media" is increasingly becoming a core input into the paid equation.  Yes, we must always accomodate that fuzzy middle.  

Needless to say, our discussion on the matter was lively and spirited, and I hope it continues to drive and advance the conversation during the second day of this event which features keynotes from Peter Kim and Bob Gilbreath and presentations from many others, from Jason Falls and Jack Graydon.  BTW, if you want to follow this excellent conference, the Twitter hashtag is #dhi09 or just click this link.  

Thanks again to Dave, Kevin, and Suzanne for a most excellent panel.  And congratulations to all the event organizers, especially Jack Streitmarter or ScreamingBob Media and the Cincinnati Ad Club.  Outstanding!!!

- Pete (twitter.com/pblackshaw)

Within a half-hour of Mad Men winning a coveted Emmy (yet again) for best television drama, New York's "Advertising Week," a five day celebration of the advertising industry, officially kicked off.  In surveying the program content, one can quickly detect the significant changes and groundshifts in this industry, from digital transformation to social media strategy to the proliferation (and necessity) of service-grounded iPhone Apps.   Even the website for the event reflects a new world order in communication -- what with "sharing" utilities, digital media kits, mobile "utility" downloads, and the like.  It's a far cry from what my father, Bill Blackshaw -- one of the the orginal Mad Men -- experienced.  

Still, the ad community remains challenged (if not overwhelmed) by the new rules and dynamics of consumer control.  Of course social media is an "opportunity," but it's also a cross-current that threatens to dilute messaging and desired impact, or even put distrust on viral steroids.  Indeed, consumers have greater leverage to "advertise" their attitudes toward brands, and a significant percentage of them remain highly guarded and skeptical.  Marketers need to focus -- nay, obsess -- with how to renew, re-invigorate, or perhaps even redefine the trust covenant between consumer and brand. 

Importantly, we need to keep asking: are we just selling or are we serving the needs of consumers? Are we branding or bonding?  Are we embarking upon what Bob Gilbreath, CMO of BridgeWorldwide and a fellow P&G alum, refers to in his forthcoming book as "Meaningful Marketing?"  (He defines meaningful marketing as the 'marketing itself add[ing] value to peoples’ lives.' ) Or are we all, as Bob Garfield implies (not so subtly) in his provocative, arguably must-read book, The Chaos Scenario, just toast.  I'm actually convinced there's a world of potential for marketing and advertising, but we need to reset many of our core assumptions and operating principles. I'm equally convinced that this unprecedented bubbling of consumer conversation (from online communities to Twitter) is a well-spring of free and thoughtful advice to marketers about which roads and direction to take to secure the long term loyalty and advocacy of consumers.  But we first need to check or respective agenda at the door, and tune in to what the conversation is telling us. Listen first, then engage!  

Toward that end, I thought I'd "prime the pump" a wee bit.  A little over a year ago, around the time I published my book "Satisfied Customers Tell Three Friends, Angry Customers Tell 3000", I started writing a column for Advertising Age magazine (mostly online) on a range of topics related to future trends in advertising, the relationship between service and marketing, and the broader impact of social media.  I just skimmed my content archive and pulled ten columns that might serve as a useful "primer" going into Advertising Week. These are themes and topics that are especially meaningful to me, but I suspect they might resonate with others. As always, I welcome feedback.

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Earned Media May Be Efficient But It's Far from Free: Getting the full divident of "earned media" requires much more that setting up Twitter and Facebook accounts.  Meaningful product and operational investment (e.g. customer service) pay the biggest dividends.

'Social Media Dad' Sees an iPhone-Powered New World Order:  It took a birthday party for my twins to help me appreciate the power and impact of the "all in one" service device.

Is Customer Service a Media Channel: Ask Zappos:  Zappos built a model Amazon ultimately acquired on an almost fanatical belief in the power of word-of-mouth, employee advocacy, and "no questions asked" service (all all kinds). 

It's Time for a Slow Marketing Movement:  Is social media pushing us into the "exuberance" zone? Maybe we need to slow down and revisit some of the fundamentals before we lunge forward.

Marketers Love a Conversation Unless the Consumer Starts It:  Why are brand feedback interfaces (e.g. Contact Us) so ugly, uninviting, and at complete odds with all marketing exhuberance over the "conversational" aspects of social media. 

In Time of Crisis, Sexy and Flashy Don't Count:  When Swine Flu broke, government agencies, especially the CDC, got it right.  Speed, functionality, and answers converged quickly.  We can learn from this.  

Is the Future of Marketing About Marketing to Marketers?  We need to sift marketer from consumer conversation, and many of the biggest brand brohaha's of the year have been triggered by tens of thousands of "marketers" who use social media.  New influencer channel?

When Calculating Twitter's ROI, Don't Ignore Its Change on Organizations:  Remember, social media is as much about business process innovation (especially driving internal cultural change) as marketing outreach.

Underwriting Your Super Bowl Spot:  You just can't think about TV the same anymore.  Much of the value in TV advertising comes through the "multiplier effect" across digital expression venues, and the digital trail.  How do we think holistically about TV?

The "Contribution Revolution" is More Important Than You Think:  Social media isn't just about messaging and advocacy; it's also about the tangible economic impact (potentially cost savings) of "user-contribution systems," whereby the most loyal customers become a de facto work-force.

Spanish Language Content Surprisingly Lacking on the Web: Marketers talk up a storm about the importance of Hispanic/Latino marketing (lots of it on the agenda for Ad Week) but it's hardly reflected on websites or social media strategies. 

- Pete (Twitter)