How Synergy Effects of Paid and Digital Owned Media Influence Brand Sales

Abstract

Research is ongoing about how investment in paid media and digital owned media drives changes in brand sales. The advertising-intensive curve ([Jones, 1990][1]) suggests that paid-media investment is correlated to brands' market position in the repeat-purchase packaged-product category. Building on that framework, the authors analyzed 838 brands in 14 product and service categories for share of spend in paid media and share of digital owned media—unique visitor traffic and traffic to social media—taking into account their relationship with share of sales. Investment in digital owned media was correlated to brands' long-term sales growth rates and to the balance between paid-media and owned-media investment. [1]: #ref-11