In the Age of Discovery, what youth say is more important than what your creative agency says. Paid Media is traditional marketing (such as TV advertising) that was purchased. Paid Media choices focus on purchasing media mixes and optimizing the potential return on each channel. Earned Media is marketing created by dialogue – young customers spreading word-of-mouth. Unlike Paid Media, brands exercise less control on Earned Media.
Peer recommendations are the biggest enabler when it comes to generating earned media. Recommendations from young people affect preferences and opinions of others. Overall earned media is twice as more effective as paid media in influencing youth purchase decisions of mobile handsets and services. 62% of youth handset purchases are driven by friend recommendations.
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