Marketing: What Is POE?

We learned a very important media concept: POE. In POE, P stands for Paid Media, such as advertising in newspapers; O stands for Owned Media, like a company’s own WeChat official account; E stands for Earned Media, referring to spontaneous spreading by others, for example, retweets on Weibo.

“POE” stands for Paid, Owned, and Earned Media. In this context:

Paid Media (P): This refers to media exposure gained through paid advertising. For example, placing an advertisement in a local newspaper involves paying for media space.

Owned Media (O): This refers to media channels that a company owns and controls. For instance, a company’s own website or its official social media accounts are considered owned media.

Earned Media (E): This refers to media exposure that a company gains organically through word of mouth and publicity. It is not paid for or owned by the company but is earned through customer reviews, social media shares, and other forms of free publicity.

In the given scenario, the focus is on “Paid Media” and the challenge of optimizing advertising spending to reach a more targeted audience. The concept introduced to address this challenge is Precision Delivery

Precision Delivery: This involves utilizing detailed data and insights to precisely target the desired audience with advertisements. The example provided involves Shell Oil conducting research to understand the habits of their target audience (truck drivers) and then strategically placing ads on platforms such as Tencent News and WeChat public accounts during specific times when the audience is most likely to engage.

The key components of Precision Delivery include:

User Analysis: Understanding the demographics, behaviours, and preferences of the target audience.

Media Selection: Choosing the most relevant and effective media channels to reach the target audience.

Delivery Strategy: Developing a strategic plan for when and how to deliver advertisements to maximize impact.

The example emphasizes the shift from traditional advertising methods, where advertisers may not have a clear understanding of who is seeing their ads, to a more data-driven and targeted approach enabled by the availability of detailed user data.

In the context of a wedding photography business in Nanjing, the suggestion is to adopt Precision Delivery by collaborating with paid media platforms such as Baidu, WeChat Moments, or Today’s Headlines. The business can then utilize specific targeting criteria such as time, location, interests, and behaviours to optimize the effectiveness of their advertising efforts.