In the 21st century, when everything from soaps to software is "shared" on social media, it's easy to forget that not everything is truly free. Earned, owned and paid media are terms often used interchangeably to describe the various types of advertisements that companies purchase. However, the three forms of advertising aren't created equal.

Earned media refers to the buzz or word-of-mouth that a business generates simply by virtue of providing great products and services. Owned media is any type of marketing that a business controls directly, such as a website, blog or social media account. Paid media includes any type of advertising that doesn’t fall into either category, such as ads on TV, in magazines or online. All three methods can be used in combination with each other to achieve maximum results for your business as each type has its own advantages based on your business's needs and goals.

To help you decide what would benefit your business most, here are some important facts about each type of advertisement:

Earned Media:
To be put quite simply, this is the process of building brand awareness through word of mouth, including any press that is not paid for by the company. It’s one of the most effective ways to reach new customers. When someone recommends your business to friends and family, they can provide a personal endorsement that builds trust and increases brand loyalty. This type of positive exposure can drive business extremely well because it drives customer satisfaction and retention. Think about it in terms of online customer reviews, blogs and social media posts. A customer will use social media channels as an outlet for their own personal experiences with a product or service, as well as recommend businesses that make them happy. The process ends up building brand loyalty on multiple levels – for both customers and potential customers.

Owned Media:
Since this form of media is owned by the brand itself, this may be the most important source of content in a marketing strategy. In a world where consumers are bombarded with ads and other messages, it's crucial that the brand stands out because anyone can develop messaging but not everyone can create personal connections with customers. If you want your company to stand out from the crowd and communicate more effectively with your customers, owned media is key.

Paid Media:
Advertising through paid media can be a useful way to reach the exact audience intended. With paid media, you can provide your customers with highly targeted advertisements to increase sales and brand awareness and businesses can advertise their products and services on search engines and social networks among other channels. Paid media works well for brands with a strong understanding of their value proposition to their ideal market. Because paid media can be expensive, it's important to ensure that what's being spent on advertising is meeting your goals. It’s also important to understand how different types of paid media perform against one another and which will make the most sense for your goal or campaign.