ELC 200 Day 13. Agenda Questions? Assignment 4 not graded yet will be corrected by next class...

ELC 200ELC 200Day 13Day 13

Agenda Questions? Assignment 4 not graded yet

will be corrected by next class

Assignment 5 Posted (2 more 2 Go) Due October 29 ELC 200 assignment 5.pdf

Finish Discussion eCommerce Marketing and Advertising Concepts

Chapter 6Chapter 6E-commerce Marketing Concepts: Social, Mobile, LocalE-commerce Marketing Concepts: Social, Mobile, Local

Copyright © 2014 Pearson Education, Inc.

Establishing the Customer Relationship

Web site functions to:Establish brand identity and customer expectations

Differentiating productInform and educate customerShape customer experienceAnchor the brand online

Central point for all marketing messages



Source: http://www.search-this.com/2007/03/28/the-anatomy-of-a-logo/

http://www.search-this.com/2007/03/28/the-anatomy-of-a-logo/

http://www.google.com/url?sa=i&rct=j&q=brand+icons&source=images&cd=&cad=rja&docid=cTW19q3puF3QdM&tbnid=gqozrRSDtZwRGM:&ved=0CAUQjRw&url=http%3A%2F%2Fcoolinsights.blogspot.com%2F2010_01_01_archive.html&ei=usdBUe-POoOy9gTuvYFw&bvm=bv.43287494,d.dmg&psig=AFQjCNG5sx5_pqj4GqmH6nVacvTluz6A6w&ust=1363351834799134

Digital Commerce Marketing and Advertising Strategies and Tools

Internet marketing (vs. traditional) More personalized (personalization/customization) More participatory (Interactivity) More peer-to-peer (Universal

Standards/Ubiquity/Global reach) ) More communal (Social Technology)

The most effective Internet marketing has all four features


Online Marketing and Advertising Tools

Basic marketing and advertising tools: Search engine marketing Display ad marketing E-mail and permission marketing Affiliate marketing Lead generation marketing Sponsorship marketing


Search Engine Marketing and Advertising

$17.6 billion spent in 2012 Types:

Organic search Keyword paid inclusion Advertising keywords

e.g., Google AdWords

Network keyword advertising or context advertising e.g., Google AdSense

Nearly ideal targeted marketing


http://deeplinking.net/paper-web/

http://www.google.com/adwords/?channel=ha&sourceid=awo&subid=us-en-ha-aw-bkhmtm~80486877605&gclid=CJC72-Sb1MgCFREoaQod1F0ApQ

http://www.google.com/adsense/start/?gclid=COONxYec1MgCFQkuaQodqe0DkA#hl=en&sourceid=aso&subid=na-en-ha-bk_MC&medium=ha


http://www.billhartzer.com/pages/user-centric-results-of-eye-tracking-study-google-versus-bing/



Search Engine Marketing and Advertising (cont.)

Social searchReviews friends recommendations, searches,

Likes, and Web site visits

Search engine issues Paid inclusion and placement practicesLink farmsContent farms (moved to social media)Click fraud


Display Ad Marketing Banner ads

May include animation Link to advertiser’s Web site Can track user

Rich media ads More effective than banner ads Use animation, sound, and interactivity http://creativezone.sizmek.com/#AdSearch

Video ads (fastest growing segment) In-page commercials before or after content


http://creativezone.sizmek.com/#AdSearch

Display Ad Marketing (cont.)

Advertising networksSell marketing and advertising opportunities

Ad exchangesEstablish a real-time bidding process where

marketers can bid on ad slots


E-mail Marketing Direct e-mail marketing

Primary cost is purchasing addresses http://www.infousa.com/

Spam: Unsolicited commercial e-mail Approximately 72% of all e-mail

Down to ~60% in 2015 Efforts to control spam:

Technology (filtering software) Government regulation (CAN-SPAM and state laws)

Permission based (Opt-in) Email


Affiliate Marketing Firms pay commissions to other Web

sites for sending customers to theirsVisitors to affiliate site click on adsAdvertisers pay fee to sitehttps://affiliate-program.amazon.com/gp/

associates/join/landing/main.html


Lead Generation Marketing Uses multiple e-commerce presences to

generate leadsHelp firms build Web sites, launch e-mail

campaigns$1.7 billion spent in 2012http://www.hubspot.com/?source=hsepd-ppc-

adwords-sitelinks-emea-20140206


Sponsorship Marketing Sponsorships

Paid effort to tie advertiser’s name to particular information, event, and venue in a way that reinforces brand in positive yet not overtly commercial manner

http://www.webmd.com/about-webmd-policies/about-our-sponsors

http://can-am-crown.net/Sponsors/Sponsorshp.htm


Social Marketing and Advertising Fastest growing type of online

marketing and advertising Long-term prospects unknown Four features driving growth

Social sign-onCollaborative shoppingNetwork notification (“Like”)Social search (recommendation)


Famous marketing trolls Bic Cristal For Her Pen on Amazon Target Troll

Links provided by Breaking Even Communications

Social Marketing and Advertising (cont.)

Facebook marketing productsFacebook pagesLike buttonDisplay adshttps://www.facebook.com/advertising

Twitter marketing productsPromoted TweetsPromoted Trends (uses #hashtags) Promoted Accounts (who to follow)


Social Marketing and Advertising (cont.)

Blog advertising 72 million read blogs Blog readers are ideal demographic

Game advertising Both branding and driving customers to purchases in retail

stores and restaurants, etc. Growing at nearly 50%

Viral marketing Customers pass along marketing message via e-mail, social

networks, blogs, video and game sites http://www.youtube.com/watch?v=Yx4QgK_xEfE


Mobile Marketing 7% of online marketing, growing rapidly Formats include:

SearchDisplay adsVideoE-mailText messagingQR codes, couponingGames


Insight on Business: Class Discussion

Mobile Marketing: Land Rover Seeks Engagement on the Small Screen

Why do mobile devices represent such a promising opportunity for marketers?

Have you ever responded to mobile marketing messages? What are some of the new types of marketing that mobile

devices have spawned? What the disadvantages of social network marketing?

https://mmaglobal.com/files/images/LandRover_20090130_print.jpg


App Marketing Revenue sources

Pay-per-app In-app purchase Subscriptions Advertising

Most popular types of apps Social network, banking, search, news

Retailer’s apps Browsing and purchasing


Local Marketing Marketing geared to user’s geographic

location Local searches

20% of all searches40% of mobile searches

Most common local marketing toolsGeotargeting with Google MapsDisplay ads in hyperlocal publicationsFoursquare


Multi-Channel Marketing Average American spends 24% of media

time on Internet, rest on other channelsTelevision, radio, newspapers, and magazines

Consumers also multitask, using several media

Internet campaigns strengthened by using other channels


Multi-Channel Marketing (cont.)

One-to-one marketing (personalization)Specific marketing messages to individuals

Interest-based advertisingUses online and offline behavior of users to

adjust messages

Retargeting adsShows same/similar ads to individuals across

multiple sites


Multi-Channel Marketing (cont.)

Customization and customer co-productionChanging products according to user preferencesCo-production—users help create product

Dynamic pricing and flash marketingMerchants can change prices on the fly depending

on demandGilt.com


Long-Tail Marketing Internet allows for sales of

obscure products with little demand

Substantial revenue becauseNear zero inventory costsLittle marketing costsSearch and recommendation engines


Insight on Technology: Class Discussion

The Long Tail: Big Hits and Big Misses What are “recommender systems”? Give an

example you have used. What is the “Long Tail” and how do

recommender systems support sales of items in the Long Tail?

How can human editors, including consumers, make recommender systems more helpful?


Online Marketing Metrics: Lexicon Audience size or market

share Impressions Click-through rate (CTR) View-through rate (VTR) Hits Page views Stickiness (duration) Unique visitors Loyalty Reach Recency

Conversion to customer Acquisition rate Conversion rate Browse-to-buy-ratio View-to-cart ratio Cart conversion rate Checkout conversion

rate Abandonment rate Retention rate Attrition rate


Online Marketing Metrics (cont.)

Social marketing Gross rating points Applause ratio Conversation ratio Amplification Sentiment ratio Duration of engagement

E-mail metrics Open rate Delivery rate Click-through rate

(e-mail) Bounce-back rate Unsubscribe rate Conversion rate (e-mail)


ROI Calculation (from previous slide) Cost of Ad $10,000 100,000 impression $0.10 per impression 1000 visitors $10 per visitor 50 buyers $200 per buyer 12 loyal customers 833.33 Cost of acquiring a

loyal customer (CAC) What is the likelihood of a customer having a

lifetime value > $833.33? (CLV) For positive ROI CLV > CAC


How Well Does Online Advertising Work?

Use ROI to measure ad campaign Highest click-through rates: Search engine ads,

permission e-mail campaigns Rich media, video interaction rates high Online channels compare favorably with

traditional Most powerful marketing campaigns use multiple

channels, including online, catalog, TV, radio, newspapers, stores


Comparative Returns on Investment

Figure 6.9, Page 249


SOURCES: Industry sources; authors’ estimates

The Costs of Online Advertising Pricing models

Cost per thousand (CPM) Cost per click (CPC) Cost per action (CPA)

Online revenues only Sales can be directly correlated

Both online/offline revenues Offline purchases cannot always be directly related to online

campaign

In general, online marketing more expensive on CPM basis, but more effective


ELC 200 Day 13. Agenda Questions? Assignment 4 not graded yet will be corrected by next class...

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