4. “The Internet will transform advertising
because of its track ability, not its beauty.”
-Eric Schmidt, Google CEO
Tuesday, October 4, 2011
5. conundrum
Advertisers
must attract
attention without
Being
Annoying
Tuesday, October 4, 2011
6. Some say advertising is dead
A few million people think so…
Tuesday, October 4, 2011
7. Integrated Marketing Strategies
Integrated Marketing Defined:
“A management concept that is designed to make
all aspects of marketing communication such as
advertising, sales promotion, public relations, and
direct marketing work together as a unified force,
rather than permitting each to work in isolation.”
about.com
Or
“Weaving together digital and physical channels to
engage consumers’ emotions, deliver brand
experiences, and form ongoing relationships.”
Forrester Research “Essentials of Integrated Marketing”
Tuesday, October 4, 2011
8. Marketing Online In The Real World
The product itself
Packaging
Point of Sale
Out-of-home
Direct Marketing
Print
Radio
TV
Tuesday, October 4, 2011
9. Marketing The Real World Online
Corporate Site
Micro-sites
Online Advertising
E-mail Marketing
Blogs
Search
Tuesday, October 4, 2011
12. Integrated Marketing Strategies
Six Essentials of Integrated Marketing
Demand early collaboration of disciplines
Tuesday, October 4, 2011
13. Integrated Marketing Strategies
Six Essentials of Integrated Marketing
Demand early collaboration of disciplines
Define audiences with personas
Tuesday, October 4, 2011
14. Integrated Marketing Strategies
Six Essentials of Integrated Marketing
Demand early collaboration of disciplines
Define audiences with personas
Drive planning by behaviour
Tuesday, October 4, 2011
15. Integrated Marketing Strategies
Six Essentials of Integrated Marketing
Demand early collaboration of disciplines
Define audiences with personas
Drive planning by behaviour
Shape execution with ideas, not by media channels
Tuesday, October 4, 2011
16. Integrated Marketing Strategies
Six Essentials of Integrated Marketing
Demand early collaboration of disciplines
Define audiences with personas
Drive planning by behaviour
Shape execution with ideas, not by media channels
Point to the next step in all communications
Tuesday, October 4, 2011
17. Integrated Marketing Strategies
Six Essentials of Integrated Marketing
Demand early collaboration of disciplines
Define audiences with personas
Drive planning by behaviour
Shape execution with ideas, not by media channels
Point to the next step in all communications
Measure progress along the path
Tuesday, October 4, 2011
18. Integrated Marketing Strategies
Six Essentials of Integrated Marketing
Demand early collaboration of disciplines
Define audiences with personas
Drive planning by behaviour
Shape execution with ideas, not by media channels
Point to the next step in all communications
Measure progress along the path
Tuesday, October 4, 2011
19. Integrated Marketing Strategies
Six Essentials of Integrated Marketing
Demand early collaboration of disciplines
Define audiences with personas
Drive planning by behaviour
Shape execution with ideas, not by media channels
Point to the next step in all communications
Measure progress along the path
Tuesday, October 4, 2011
20. Integrated Marketing Strategies
Six Essentials of Integrated Marketing
Demand early collaboration of disciplines
Define audiences with personas
Drive planning by behaviour
Shape execution with ideas, not by media channels
Point to the next step in all communications
Measure progress along the path
Forrester Research “Essentials of Integrated Marketing”
Tuesday, October 4, 2011
27. The Online Marketing Toolkit
Internet Strategy
Search Paid
Visibility Search
Web Site Strategy
Corporate Site Micro
Permission Sites Measurement
Conversation Reinvention
E-mail
Marketing
Tuesday, October 4, 2011
28. The Online Marketing Toolkit
Internet Strategy
Cross Channel Viral Search Paid
Promotion Marketing Visibility Search
Web Site Strategy
Corporate Site Micro
Permission Sites Measurement
Conversation Reinvention
E-mail
Marketing
Tuesday, October 4, 2011
29. The Online Marketing Toolkit
Internet Strategy
Cross Channel Viral Search Paid Online
Promotion Marketing Visibility Search Ads
Web Site Strategy
Corporate Site Micro
Permission Sites Measurement
Conversation Reinvention
E-mail
Feeds
Marketing
Tuesday, October 4, 2011
30. $60 Billion
Email
9%
Lead Gen
11% Search Display
Classified Lead Gen
Search
Email
Classified 38%
12%
Display
31%
Tuesday, October 4, 2011
34. Segmentation Using Customer
Behaviour
• Simplifiers (convenience)
Electronic Commerce, Ninth Edition 25
Tuesday, October 4, 2011
35. Segmentation Using Customer
Behaviour
• Simplifiers (convenience)
• Surfers (find information, explore new ideas, shop)
Electronic Commerce, Ninth Edition 25
Tuesday, October 4, 2011
36. Segmentation Using Customer
Behaviour
• Simplifiers (convenience)
• Surfers (find information, explore new ideas, shop)
• Bargainers (search for good deal)
Electronic Commerce, Ninth Edition 25
Tuesday, October 4, 2011
37. Segmentation Using Customer
Behaviour
• Simplifiers (convenience)
• Surfers (find information, explore new ideas, shop)
• Bargainers (search for good deal)
• Connectors (stay in touch with other people)
Electronic Commerce, Ninth Edition 25
Tuesday, October 4, 2011
38. Segmentation Using Customer
Behaviour
• Simplifiers (convenience)
• Surfers (find information, explore new ideas, shop)
• Bargainers (search for good deal)
• Connectors (stay in touch with other people)
• Returners (return to same sites over and over)
Electronic Commerce, Ninth Edition 25
Tuesday, October 4, 2011
39. Segmentation Using Customer
Behaviour
• Simplifiers (convenience)
• Surfers (find information, explore new ideas, shop)
• Bargainers (search for good deal)
• Connectors (stay in touch with other people)
• Returners (return to same sites over and over)
• Sportsters (spend time on sports, entertainment sites)
Electronic Commerce, Ninth Edition 25
Tuesday, October 4, 2011
40. Segmentation Using Customer
Behaviour
• Simplifiers (convenience)
• Surfers (find information, explore new ideas, shop)
• Bargainers (search for good deal)
• Connectors (stay in touch with other people)
• Returners (return to same sites over and over)
• Sportsters (spend time on sports, entertainment sites)
• Must identify groups and formulate ways of
generating revenue
Electronic Commerce, Ninth Edition 25
Tuesday, October 4, 2011
42. Planning a campaign
Define goals
Investigate target audience
Determine websites to display adverts
Websites or networks will affect format
and payment models
Brief the creative team
Tuesday, October 4, 2011
43. Online adverts need to
Attract attention
Convey a message
Entice action
ACE
Tuesday, October 4, 2011
44. The key differentiator
Immediate response online
Online can be interactive
Internet is highly
Trackable
Targetable
Measurable
Tuesday, October 4, 2011
45. Advertising on the Web
Electronic Commerce, Ninth Edition 34
Tuesday, October 4, 2011
46. Advertising on the Web
• Effective advertising involves communication
Electronic Commerce, Ninth Edition 34
Tuesday, October 4, 2011
47. Advertising on the Web
• Effective advertising involves communication
• Five-stage customer loyalty model: helpful in creating
advertising messages
Electronic Commerce, Ninth Edition 34
Tuesday, October 4, 2011
48. Advertising on the Web
• Effective advertising involves communication
• Five-stage customer loyalty model: helpful in creating
advertising messages
– Awareness stage
Electronic Commerce, Ninth Edition 34
Tuesday, October 4, 2011
49. Advertising on the Web
• Effective advertising involves communication
• Five-stage customer loyalty model: helpful in creating
advertising messages
– Awareness stage
• Advertising message should inform
Electronic Commerce, Ninth Edition 34
Tuesday, October 4, 2011
50. Advertising on the Web
• Effective advertising involves communication
• Five-stage customer loyalty model: helpful in creating
advertising messages
– Awareness stage
• Advertising message should inform
– Exploration stage
Electronic Commerce, Ninth Edition 34
Tuesday, October 4, 2011
51. Advertising on the Web
• Effective advertising involves communication
• Five-stage customer loyalty model: helpful in creating
advertising messages
– Awareness stage
• Advertising message should inform
– Exploration stage
• Message should explain how product, service works
Electronic Commerce, Ninth Edition 34
Tuesday, October 4, 2011
52. Advertising on the Web
• Effective advertising involves communication
• Five-stage customer loyalty model: helpful in creating
advertising messages
– Awareness stage
• Advertising message should inform
– Exploration stage
• Message should explain how product, service works
• Encourage switching brands
Electronic Commerce, Ninth Edition 34
Tuesday, October 4, 2011
53. Advertising on the Web (cont’d.)
Electronic Commerce, Ninth Edition 35
Tuesday, October 4, 2011
54. Advertising on the Web (cont’d.)
• Five-stage customer loyalty model (cont’d.)
Electronic Commerce, Ninth Edition 35
Tuesday, October 4, 2011
55. Advertising on the Web (cont’d.)
• Five-stage customer loyalty model (cont’d.)
– Familiarity stage
Electronic Commerce, Ninth Edition 35
Tuesday, October 4, 2011
56. Advertising on the Web (cont’d.)
• Five-stage customer loyalty model (cont’d.)
– Familiarity stage
• Message should be persuasive, convince customer to buy
Electronic Commerce, Ninth Edition 35
Tuesday, October 4, 2011
57. Advertising on the Web (cont’d.)
• Five-stage customer loyalty model (cont’d.)
– Familiarity stage
• Message should be persuasive, convince customer to buy
– Commitment stage
Electronic Commerce, Ninth Edition 35
Tuesday, October 4, 2011
58. Advertising on the Web (cont’d.)
• Five-stage customer loyalty model (cont’d.)
– Familiarity stage
• Message should be persuasive, convince customer to buy
– Commitment stage
• Customer sent reminder messages
Electronic Commerce, Ninth Edition 35
Tuesday, October 4, 2011
59. Advertising on the Web (cont’d.)
• Five-stage customer loyalty model (cont’d.)
– Familiarity stage
• Message should be persuasive, convince customer to buy
– Commitment stage
• Customer sent reminder messages
– Separation stage
Electronic Commerce, Ninth Edition 35
Tuesday, October 4, 2011
60. Advertising on the Web (cont’d.)
• Five-stage customer loyalty model (cont’d.)
– Familiarity stage
• Message should be persuasive, convince customer to buy
– Commitment stage
• Customer sent reminder messages
– Separation stage
• Customer not targeted
Electronic Commerce, Ninth Edition 35
Tuesday, October 4, 2011
61. Advertising on the Web (cont’d.)
• Five-stage customer loyalty model (cont’d.)
– Familiarity stage
• Message should be persuasive, convince customer to buy
– Commitment stage
• Customer sent reminder messages
– Separation stage
• Customer not targeted
• Online advertising
Electronic Commerce, Ninth Edition 35
Tuesday, October 4, 2011
62. Advertising on the Web (cont’d.)
• Five-stage customer loyalty model (cont’d.)
– Familiarity stage
• Message should be persuasive, convince customer to buy
– Commitment stage
• Customer sent reminder messages
– Separation stage
• Customer not targeted
• Online advertising
– Always coordinate with existing advertising efforts
Electronic Commerce, Ninth Edition 35
Tuesday, October 4, 2011
63. FIGURE 4-5 Funnel model of customer acquisition, conversion, and retention
Electronic Commerce, Ninth Edition 33
Tuesday, October 4, 2011
64. Online Advertising Cost and Effectiveness
(cont’d.)
Electronic Commerce, Ninth Edition 49
Tuesday, October 4, 2011
65. Online Advertising Cost and Effectiveness
(cont’d.)
• New metrics to evaluate advertising yield outcomes
Electronic Commerce, Ninth Edition 49
Tuesday, October 4, 2011
66. Online Advertising Cost and Effectiveness
(cont’d.)
• New metrics to evaluate advertising yield outcomes
– Measure number of new visitors who buy first time after
arriving at site
Electronic Commerce, Ninth Edition 49
Tuesday, October 4, 2011
67. Online Advertising Cost and Effectiveness
(cont’d.)
• New metrics to evaluate advertising yield outcomes
– Measure number of new visitors who buy first time after
arriving at site
• By way of click-through
Electronic Commerce, Ninth Edition 49
Tuesday, October 4, 2011
68. Online Advertising Cost and Effectiveness
(cont’d.)
• New metrics to evaluate advertising yield outcomes
– Measure number of new visitors who buy first time after
arriving at site
• By way of click-through
– Calculate advertising cost of acquiring one customer on
the Web
Electronic Commerce, Ninth Edition 49
Tuesday, October 4, 2011
69. Online Advertising Cost and Effectiveness
(cont’d.)
• New metrics to evaluate advertising yield outcomes
– Measure number of new visitors who buy first time after
arriving at site
• By way of click-through
– Calculate advertising cost of acquiring one customer on
the Web
• Compare to how much it costs to acquire one customer
through traditional channels
Electronic Commerce, Ninth Edition 49
Tuesday, October 4, 2011
70. Center for Management Development
What is online customer acquisition?
Tuesday, October 4, 2011
71. Center for Management Development
Traditional Customer Acquisition Process:
Attention
Interest
Desire
Action
Tuesday, October 4, 2011
72. Center for Management Development
Traditional Customer Acquisition Process:
Attention “The new iPad looks really cool!”
Interest
Desire
Action
Tuesday, October 4, 2011
73. Center for Management Development
Traditional Customer Acquisition Process:
Attention “The new iPad looks really cool!”
“I think the iPad could really help me
Interest catch up on my reading and
emails during my commute.”
Desire
Action
Tuesday, October 4, 2011
74. Center for Management Development
Traditional Customer Acquisition Process:
Attention “The new iPad looks really cool!”
“I think the iPad could really help me
Interest catch up on my reading and
emails during my commute.”
Desire “I did some research to find out
which iPad might be right for
me.”
Action
Tuesday, October 4, 2011
75. Center for Management Development
Traditional Customer Acquisition Process:
Attention “The new iPad looks really cool!”
“I think the iPad could really help me
Interest catch up on my reading and
emails during my commute.”
Desire “I did some research to find out
which iPad might be right for
me.”
Action
“I’m on the waiting list!”
“…And here’s my credit card!”
Tuesday, October 4, 2011
76. Center for Management Development
Traditional Customer Acquisition Process:
Attention “The new iPad looks really cool!”
“I think the iPad could really help me
Interest catch up on my reading and
emails during my commute.”
Desire “I did some research to find out
which iPad might be right for
me.”
Action
“I’m on the waiting list!”
“…And here’s my credit card!”
Tuesday, October 4, 2011
77. Center for Management Development
Traditional Customer Acquisition Process:
“The new iPad looks really cool!”
Attention
“I think the iPad could really help me
Interest catch up on my reading and
emails during my commute.”
Desire “I did some research to find out
which iPad might be right for
me.”
Action
“I’m on the waiting list!”
“…And here’s my credit card!”
Tuesday, October 4, 2011
78. Center for Management Development
Traditional Customer Acquisition Process:
Attention
“I think the iPad could really help me
Interest catch up on my reading and
emails during my commute.”
Desire “I did some research to find out
which iPad might be right for
me.”
Action
“I’m on the waiting list!”
“…And here’s my credit card!”
Tuesday, October 4, 2011
79. Center for Management Development
Traditional Customer Acquisition Process:
Attention
Interest
Desire “I did some research to find out
which iPad might be right for
me.”
Action
“I’m on the waiting list!”
“…And here’s my credit card!”
Tuesday, October 4, 2011
80. Center for Management Development
Traditional Customer Acquisition Process:
Attention
Interest
Desire
Action
“I’m on the waiting list!”
“…And here’s my credit card!”
Tuesday, October 4, 2011
81. Center for Management Development
Traditional Customer Acquisition Process:
Attention
Interest
Desire
Action
Tuesday, October 4, 2011
82. Center for Management Development
Each phase of the online sales funnel has proven
strategies, tactics & performance measures
Attention
Interest
Desire
Action
Tuesday, October 4, 2011
83. Center for Management Development
Each phase of the online sales funnel has proven
strategies, tactics & performance measures
Attention
Interest
Desire
Action
Tuesday, October 4, 2011
85. Center for Management Development
Driving online attention
• Public Relations
Tuesday, October 4, 2011
86. Center for Management Development
Driving online attention
• Public Relations
• Social Marketing
Tuesday, October 4, 2011
87. Center for Management Development
Driving online attention
• Public Relations
• Social Marketing
• Branded Microsites
Tuesday, October 4, 2011
88. Center for Management Development
Driving online attention
• Public Relations
• Social Marketing
• Branded Microsites
• Offline brand advertising
Tuesday, October 4, 2011
89. Center for Management Development
Driving online attention
• Public Relations
• Social Marketing
• Branded Microsites
• Offline brand advertising
• Online brand advertising
Tuesday, October 4, 2011
95. Performance Hub
• Site
• Blogs
• Youtube
• Pushing to one hub
35
Tuesday, October 4, 2011
96. Performance Hub
• Site
• Blogs
• Youtube
• Pushing to one hub
35
Tuesday, October 4, 2011
97. Center for Management Development
Measuring online attention:
Awareness-Driving Tactic Proxy Metric
Public Relations •# of impressions / mentions
•Buzz measurement (e.g. Net Promoter Score)
Social Marketing •# of friends / fans / followers
•Total visits to a social tool
Branded Microsites •# of visitors
•Time spent on site
•Level of interaction with site
•# of cookies / email addresses captured for remarketing
Offline brand advertising •# of online video views
•# / type of comments
Online brand advertising •# of impressions
•Reach / frequency
•Pre/post exposure ad effectiveness study
•# of cookies captured for remarketing
Tuesday, October 4, 2011
98. Center for Management Development
Social marketing still considered
Tuesday, October 4, 2011
99. Center for Management Development
Attention
Interest
Desire
Action
Tuesday, October 4, 2011
100. Center for Management Development
Driving Interest with online marketing
Tuesday, October 4, 2011
101. Center for Management Development
Driving Interest with online marketing
Tuesday, October 4, 2011
102. Center for Management Development
Search Engine Marketing
Paid Search:
• Keyword/phrase
targeted text ads
• Cost-per-click pricing
established through
bids; daily budget
caps
• Etailers typically
measure through to
completed sale, and
calculate resulting
cost-per-order (CPO)
• Search Engines
maximize their
revenue by serving
ads with the best
combination of
– Bid price
Tuesday, October 4, 2011
103. Center for Management Development
Search Engine Marketing
Paid Search:
• Keyword/phrase
targeted text ads
• Cost-per-click pricing
established through
bids; daily budget
caps
• Etailers typically
measure through to
completed sale, and
calculate resulting
cost-per-order (CPO)
Shopping
• Search Engines
Results: maximize their
• Daily data revenue by serving
feeds from ads with the best
retailers combination of
(image, SKU, – Bid price
price)
• Free
Tuesday, October 4, 2011
104. Center for Management Development
Organic Traffic
• Direct entry traffic
– Visitors type in URL
• Search Engine Optimization
– Search engines optimize natural
rankings based on an algorithm
that includes:
• Site indexation: Making the site
“friendly” to search engines
• Content relevance: Once
indexed, content needs to be
optimized for the right keywords
• Link popularity: Incoming links
(both volume and quality) help
search engines determine the
“importance” of the content
Tuesday, October 4, 2011
105. Center for Management Development
Remarketing / Retargeting
• Retarget microsite / website visitors
• Retarget ad banner clickers
• Retarget ad banner viewers
Retarget specific content
How it works
Tuesday, October 4, 2011
106. Change of
ROAS
VS
CPA
Tuesday, October 4, 2011
107. This means someone answering the ‘brand
awareness’ survey “no, I never heard of them” but
then two days later, is more then twice as likely to
click on a text ad.
Tuesday, October 4, 2011
131. Targeting and optimizing
Networks track users
Cookies
IP address
Across web sites
Advertisers can use this
information to target
adverts
Tuesday, October 4, 2011
132. Targeting can be problematic
• Contextual advertising can
get it wrong
– Shark diving advert
next to article about
shark attack
• Online behaviour does not
always represent true
interests
Tuesday, October 4, 2011
136. Banner advertising
• Simple hyperlinked
image shown on web
sites.
• Link takes visitor to a
landing page.
• AT&T advert was one
of the first sold in
1993.
Tuesday, October 4, 2011
137. Banner adverts
• Image or animation
displayed on a web
site for advertising
purposes
• Static or interactive
• Can expand on
mouse-over or when
clicked on
Tuesday, October 4, 2011
138. Standard banner sizes
Note: these banners are in proportion, not the actual size.
Tuesday, October 4, 2011
140. Advertising evolves with technology
• Today can include sound and video
Tuesday, October 4, 2011
141. Advertising evolves with technology
• Today can include sound and video
• Far more interactive
Tuesday, October 4, 2011
142. Advertising evolves with technology
• Today can include sound and video
• Far more interactive
• Technology allows banners to expand over a page
Tuesday, October 4, 2011
143. Advertising evolves with technology
• Today can include sound and video
• Far more interactive
• Technology allows banners to expand over a page
• Adverts can be placed in videos
Tuesday, October 4, 2011
144. Pop-ups and pop-unders
http://www.amazon.com/gp/product/B00167G76W/
ref=dm_dp_trk6livepage.apple.com
Tuesday, October 4, 2011
145. Map advertising
• Advertising within online mapping solutions
Tuesday, October 4, 2011
146. interaction
Rich media allows for
rich content
One banner can have
Video
Tour schedule
Downloads
Link to web site
Tuesday, October 4, 2011
147. The art of Retargeting
Tuesday, October 4, 2011
149. Center for Management Development
Retargeting gone wrong, lol
68
Tuesday, October 4, 2011
150. What do the numbers say?
+
Tuesday, October 4, 2011
151. What do the numbers say?
+
Tuesday, October 4, 2011
152. What do the numbers say?
%249
Tuesday, October 4, 2011
153. Center for Management Development
Measuring online interest:
Traffic-Driving Tactic Proxy Metric
Search Engine Marketing •Paid Search Ranking
•Traffic (# of clicks) from paid search placements
•Sales from paid search placements
•Cost per click (CPC) & resulting cost per order (CPO)
Affiliate Marketing •Traffic (# of clicks) from affiliates
•Resulting sales originating from affiliate links
Organic Traffic •# visitors who directly type in brand URL
•Organic search engine ranking
•Traffic (# clicks) from organic search
•Resulting sales originating from organic traffic
Remarketing / Retargeting •# / % of retargeting pool able to reach
•Traffic (# of clicks) from remarketing ads / emails
•Sales from remarketing ads / emails
•CPC & CPO
Tuesday, October 4, 2011
154. engagement
• Adverts placed
that require a
user to initiate
the advert
• Adverts placed in
video and on
social media
applications
• Relatively new
and untested
Tuesday, October 4, 2011
170. Benefits of ad servers
• Adverts maintained and updated through a central
location
Tuesday, October 4, 2011
171. Benefits of ad servers
• Adverts maintained and updated through a central
location
• Advert performance reporting
Tuesday, October 4, 2011
172. Benefits of ad servers
• Adverts maintained and updated through a central
location
• Advert performance reporting
• Sophisticated targeting
Tuesday, October 4, 2011
173. Benefits of ad servers
• Adverts maintained and updated through a central
location
• Advert performance reporting
• Sophisticated targeting
• Tracking across many web sites
Tuesday, October 4, 2011
174. Benefits of ad servers
• Adverts maintained and updated through a central
location
• Advert performance reporting
• Sophisticated targeting
• Tracking across many web sites
• Retargeting
Tuesday, October 4, 2011
176. Networks offer
• Frequency capping
– Limit times advert is seen by a user
• Sequencing
– Show adverts in a given order
• Exclusivity
– No competitor adverts are shown
• Roadblocks
– All the inventory on a page
Tuesday, October 4, 2011
177.
Publishers place unsold inventory
Advertisers bid for inventory
Bids are placed based on
Audience profile
Space
Advertising exchanges
Tuesday, October 4, 2011
178. Advertising exchanges
Image credit: http://blog.contextweb.com/contextual/vocabulary-gone-wild-or-what-is-a-true-advertising-exchange
Tuesday, October 4, 2011
179. Tracking
• Impressions
• Click-throughs
• Connection type
• Browser
• OS
• Time of day
• ISP
Tuesday, October 4, 2011
180. Cookies
Photo credit: http://flickr.com/photos/71217725@N00/
Tuesday, October 4, 2011
181. Cookies are text files
• Small text files saved
on user’s computer
• Allow a website to
capture information
about user behaviour
• Can be set on advert
impression
Tuesday, October 4, 2011
190. Viral Marketing
“Viral Marketing is
the conscious and strategic
enhancement of word-of-mouth
to promote a product, service or idea.”
Tuesday, October 4, 2011
197. Center for Management Development
Attention
Interest
Desire
Action
Tuesday, October 4, 2011
198. Center for Management Development
Measuring online customer desire:
Investigation-Driving Proxy Metric
Tactic
Homepage versioning •Homepage bounce rate for different target segments
•Click-through to other key parts of site
Multivariate testing Best-performing combination of variables that leads to
maximum click-through to other key parts of site
Site Search •# of site searches per month
•Tracking of top search terms
Online Ratings & Reviews •# of visitor reviews / comments
•Content of comments (positive / negative)
•Click-through to other key parts of site
Online product demos •# of site visitors who use the demo
•Length of time spent with demos
•Subsequent click-through to shopping pages
Tuesday, October 4, 2011
200. Center for Management Development
Attention
Interest
Desire
Action
Tuesday, October 4, 2011
201. Center for Management Development
Generating Action: Closing the Sale
• Ecommerce
– Total Site conversion rate
• Getting prospects from their entry page to check-out confirmation
– Upper funnel conversion rate
• Getting prospects from shopping pages to the shopping cart
– Lower funnel conversion rate
• Getting prospects from shopping cart to check-out confirmation
• Retail Sales
– Cross-channel conversion rate
• Getting prospects to make an in-store purchase after doing online
research and comparison shopping
Tuesday, October 4, 2011
202. Center for Management Development
Ecommerce Conversion Rate
Total Site Conversion Rate %
= # of Online Sales Orders
# of Prospect Visitors to website
Total Conversion can be split into two steps:
Upper Funnel Conv %=
# of Prospects who add Items to Shopping Cart
# of Prospects who display shopping behavior
Lower Funnel Conv %=
# of Completed Purchases
# of Prospects who add Items to Shopping Cart
Source: Compete, Inc., VMU 2007 Q3
Readout Confidential and Proprietary Information of Virgin Mobile USA, L.P. 34
Tuesday, October 4, 2011
203. Center for Management Development
Ecommerce: Upper Funnel Conversion
Tuesday, October 4, 2011
204. Center for Management Development
Ecommerce: Upper Funnel Conversion
Merchandising
Tuesday, October 4, 2011
205. Center for Management Development
Ecommerce: Upper Funnel Conversion
Merchandising
Product
Information
Tuesday, October 4, 2011
206. Center for Management Development
Ecommerce: Upper Funnel Conversion
Pricing Strategy
Merchandising
Product
Information
Tuesday, October 4, 2011
207. Center for Management Development
Ecommerce: Upper Funnel Conversion
Pricing Strategy
Merchandising
“Buy Now”
experimentation
Product
Information
Tuesday, October 4, 2011
208. Center for Management Development
Ecommerce: Upper Funnel Conversion
Pricing Strategy
Merchandising
“Buy Now”
experimentation
“Buy Later” options
Product
Information
Tuesday, October 4, 2011
209. Center for Management Development
Ecommerce: Upper Funnel Conversion
Pricing Strategy
Merchandising
“Buy Now”
experimentation
“Buy Later” options Social
Commerce
apps
Product
Information
Tuesday, October 4, 2011
210. Center for Management Development
Ecommerce: Upper Funnel Conversion
Pricing Strategy
Merchandising Live Chat
“Buy Now”
experimentation
“Buy Later” options Social
Commerce
apps
Product
Information
Tuesday, October 4, 2011
211. Center for Management Development
Ecommerce: Upper Funnel Conversion
Returns policy
Pricing Strategy
Merchandising Live Chat
“Buy Now”
experimentation
“Buy Later” options Social
Commerce
apps
Product
Information
Tuesday, October 4, 2011
212. Center for Management Development
Ecommerce: Upper Funnel Conversion
Returns policy Shipping
policy
Pricing Strategy
Merchandising Live Chat
“Buy Now”
experimentation
“Buy Later” options Social
Commerce
apps
Product
Information
Tuesday, October 4, 2011
213. Center for Management Development
Great Product detail example
112
Tuesday, October 4, 2011
215. Center for Management Development
Ecommerce: Lower Funnel Conversion
Tuesday, October 4, 2011
216. Center for Management Development
Ecommerce: Lower Funnel Conversion
“Checkout”
experimentation
Tuesday, October 4, 2011
217. Center for Management Development
Ecommerce: Lower Funnel Conversion
Returns policy
“Checkout”
experimentation
Tuesday, October 4, 2011
218. Center for Management Development
Ecommerce: Lower Funnel Conversion
Shipping
Returns policy policy
“Checkout”
experimentation
Tuesday, October 4, 2011
219. Center for Management Development
Ecommerce: Lower Funnel Conversion
Shipping
Returns policy policy
“Checkout” Live Chat
experimentation
Tuesday, October 4, 2011
220. Center for Management Development
Ecommerce: Lower Funnel Conversion
Shipping
Returns policy policy
“Checkout” Live Chat
experimentation
Alleviate
security &
privacy
concerns
Tuesday, October 4, 2011
221. Center for Management Development
Ecommerce: Lower Funnel Conversion
Shipping
Returns policy policy
“Checkout” Live Chat
experimentation
Alleviate
security &
privacy
Stock urgency
concerns
Tuesday, October 4, 2011
222. Center for Management Development
Ecommerce: Lower Funnel Conversion
Shipping
Returns policy policy
“Checkout” Live Chat
experimentation
Alleviate
security &
privacy
Stock urgency
concerns
Payment options
Tuesday, October 4, 2011
223. Augmented Reality
http://www.youtube.com/watch?
v=b64_16K2e08&feature=related
Tuesday, October 4, 2011
224. Summary
• Achieve Web marketing goals
– Use principles of marketing strategy
– Use the four Ps of marketing
– Product-based marketing strategy
– Customer-based strategy
– Web enables companies to mix strategies
• Market segmentation works well on the Web
• Online advertising
– More intrusive since introduction
• Various types available
Electronic Commerce, Ninth Edition 85
Tuesday, October 4, 2011
225. Next Week
• Guest Jean Francois, Web Analytics
• Send me the report to web CT by October 15th
• Read chapter 4
117
Tuesday, October 4, 2011