To Make an Agency Relationship Pay, Use PESO.

What is the PESO Model? And How Do We Use It?

PESO stands for “paid, earned, shared, owned,” and serves as a means of segmenting all of the marketing channels at a brand’s disposal into discrete groups. It allows us to look at our efforts through any one of these four lenses (paid, earned, shared, owned), to see if there are opportunities to integrate additional channels into our new or existing programs. The model also allows us to make sense of and to organize the channels in which we are currently investing.

Let’s break down what the individual channels mean:

  • Paid: Exchanging money for distribution, whether an ad or content
  • Earned: Trading valuable content for an established authority’s audience
  • Shared: Amplifying content through your own audience
  • Owned: Aggregating an audience that seeks you out for content and then distributing your content to that audience

Here is a great graphic to outline examples within each channel and where they intersect:

PESO infographic

Credit: Gini DietrichSpin Sucks

How to apply the PESO Model

Each of the four channels has its pros and cons. By organizing our efforts into these four channels, it’s easier for us to see how integrating multiple channels can compensate for the weaknesses of one channel with the strengths of another.

Let’s have a look at these benefits and pitfalls for each channel:

PESO Pros and Cons

PESO is what ABd Uses

Our people are comfortable in all media. In PR that means traditional public relations or influencer marketing. In advertising, we use paid channels. For inbound and content marketing, owned channels are what we exploit.

The real success of the PESO model lies in combining the four outlined channels. You will benefit from the PESO model by taking a big step back and posing the question: “How can my brand accomplish it’s objectives using the other components of the PESO model?”