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Session #4 2011

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Online Advertising Tuesday, October 4, 2011
Sho wa nd Sel l Tuesday, October 4, 2011
Online advertising? Tuesday, October 4, 2011
“The Internet will transform advertising because of its track ability, not its beauty.” -Eric Schmidt, Google CEO Tuesday, October 4, 2011
conundrum Advertisers must attract attention without Being Annoying Tuesday, October 4, 2011
Some say advertising is dead A few million people think so… Tuesday, October 4, 2011
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
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
Marketing The Real World Online Corporate Site Micro-sites Online Advertising E-mail Marketing Blogs Search Tuesday, October 4, 2011
Integrated Marketing Strategies Tuesday, October 4, 2011
Integrated Marketing Strategies Six Essentials of Integrated Marketing Tuesday, October 4, 2011
Integrated Marketing Strategies Six Essentials of Integrated Marketing  Demand early collaboration of disciplines Tuesday, October 4, 2011
Integrated Marketing Strategies Six Essentials of Integrated Marketing  Demand early collaboration of disciplines  Define audiences with personas Tuesday, October 4, 2011
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
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
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
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
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
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
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
Tuesday, October 4, 2011
Tuesday, October 4, 2011
Tuesday, October 4, 2011
Tuesday, October 4, 2011
http://www.youtube.com/watch?v=iYhCn0jf46U Tuesday, October 4, 2011
The Online Marketing Toolkit Tuesday, October 4, 2011
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
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
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
$60 Billion Email 9% Lead Gen 11% Search Display Classified Lead Gen Search Email Classified 38% 12% Display 31% Tuesday, October 4, 2011
Segmentation Using Customer Behaviour Electronic Commerce, Ninth Edition 25 Tuesday, October 4, 2011
Segmentation Using Customer Behaviour Electronic Commerce, Ninth Edition 25 Tuesday, October 4, 2011
Segmentation Using Customer Behaviour Electronic Commerce, Ninth Edition 25 Tuesday, October 4, 2011
Segmentation Using Customer Behaviour • Simplifiers (convenience) Electronic Commerce, Ninth Edition 25 Tuesday, October 4, 2011
Segmentation Using Customer Behaviour • Simplifiers (convenience) • Surfers (find information, explore new ideas, shop) Electronic Commerce, Ninth Edition 25 Tuesday, October 4, 2011
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
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
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
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
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
Research Tuesday, October 4, 2011
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
Online adverts need to  Attract attention  Convey a message  Entice action ACE Tuesday, October 4, 2011
The key differentiator Immediate response online Online can be interactive Internet is highly  Trackable  Targetable  Measurable Tuesday, October 4, 2011
Advertising on the Web Electronic Commerce, Ninth Edition 34 Tuesday, October 4, 2011
Advertising on the Web • Effective advertising involves communication Electronic Commerce, Ninth Edition 34 Tuesday, October 4, 2011
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
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
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
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
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
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
Advertising on the Web (cont’d.) Electronic Commerce, Ninth Edition 35 Tuesday, October 4, 2011
Advertising on the Web (cont’d.) • Five-stage customer loyalty model (cont’d.) Electronic Commerce, Ninth Edition 35 Tuesday, October 4, 2011
Advertising on the Web (cont’d.) • Five-stage customer loyalty model (cont’d.) – Familiarity stage Electronic Commerce, Ninth Edition 35 Tuesday, October 4, 2011
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
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
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
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
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
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
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
FIGURE 4-5 Funnel model of customer acquisition, conversion, and retention Electronic Commerce, Ninth Edition 33 Tuesday, October 4, 2011
Online Advertising Cost and Effectiveness (cont’d.) Electronic Commerce, Ninth Edition 49 Tuesday, October 4, 2011
Online Advertising Cost and Effectiveness (cont’d.) • New metrics to evaluate advertising yield outcomes Electronic Commerce, Ninth Edition 49 Tuesday, October 4, 2011
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
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
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
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
Center for Management Development What is online customer acquisition? Tuesday, October 4, 2011
Center for Management Development Traditional Customer Acquisition Process: Attention Interest Desire Action Tuesday, October 4, 2011
Center for Management Development Traditional Customer Acquisition Process: Attention “The new iPad looks really cool!” Interest Desire Action Tuesday, October 4, 2011
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
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
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
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
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
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
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
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
Center for Management Development Traditional Customer Acquisition Process: Attention Interest Desire Action Tuesday, October 4, 2011
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
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
Center for Management Development Driving online attention Tuesday, October 4, 2011
Center for Management Development Driving online attention • Public Relations Tuesday, October 4, 2011
Center for Management Development Driving online attention • Public Relations • Social Marketing Tuesday, October 4, 2011
Center for Management Development Driving online attention • Public Relations • Social Marketing • Branded Microsites Tuesday, October 4, 2011
Center for Management Development Driving online attention • Public Relations • Social Marketing • Branded Microsites • Offline brand advertising Tuesday, October 4, 2011
Center for Management Development Driving online attention • Public Relations • Social Marketing • Branded Microsites • Offline brand advertising • Online brand advertising Tuesday, October 4, 2011
Center for Management Development 32 Tuesday, October 4, 2011
Center for Management Development 32 Tuesday, October 4, 2011
Center for Management Development 32 Tuesday, October 4, 2011
33 Tuesday, October 4, 2011
34 Tuesday, October 4, 2011
Performance Hub • Site • Blogs • Youtube • Pushing to one hub 35 Tuesday, October 4, 2011
Performance Hub • Site • Blogs • Youtube • Pushing to one hub 35 Tuesday, October 4, 2011
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
Center for Management Development Social marketing still considered Tuesday, October 4, 2011
Center for Management Development Attention Interest Desire Action Tuesday, October 4, 2011
Center for Management Development Driving Interest with online marketing Tuesday, October 4, 2011
Center for Management Development Driving Interest with online marketing Tuesday, October 4, 2011
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
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
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
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
Change of ROAS VS CPA Tuesday, October 4, 2011
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
CPM Tuesday, October 4, 2011
CPC Tuesday, October 4, 2011
CPA Tuesday, October 4, 2011
Banner Add Tuesday, October 4, 2011
Impressions Tuesday, October 4, 2011
Call to Action Tuesday, October 4, 2011
Click Rate Tuesday, October 4, 2011
Unique Visitors Tuesday, October 4, 2011
Landing Page Tuesday, October 4, 2011
Conversion Rate Tuesday, October 4, 2011
ROI Tuesday, October 4, 2011
Click Tracking Tuesday, October 4, 2011
Stickiness Tuesday, October 4, 2011
Targeting Tuesday, October 4, 2011
Demographic Targeting Tuesday, October 4, 2011
Contextual Targeting Tuesday, October 4, 2011
Contextual Targeting Tuesday, October 4, 2011
Tuesday, October 4, 2011
Targe ting iou ral Be hav Tuesday, October 4, 2011
G eo grap hic Tar getin g Tuesday, October 4, 2011
Day-part Targeting Tuesday, October 4, 2011
Purchase-Based Category Targeting Tuesday, October 4, 2011
Social Based Tuesday, October 4, 2011
Targeting and optimizing Networks track users   Cookies  IP address  Across web sites Advertisers can use this information to target adverts Tuesday, October 4, 2011
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
Tuesday, October 4, 2011
Test #1 Tuesday, October 4, 2011
Test #2 Test #1 Tuesday, October 4, 2011
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
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
Standard banner sizes Note: these banners are in proportion, not the actual size. Tuesday, October 4, 2011
Advertising evolves with technology Tuesday, October 4, 2011
Advertising evolves with technology • Today can include sound and video Tuesday, October 4, 2011
Advertising evolves with technology • Today can include sound and video • Far more interactive Tuesday, October 4, 2011
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
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
Pop-ups and pop-unders http://www.amazon.com/gp/product/B00167G76W/ ref=dm_dp_trk6livepage.apple.com Tuesday, October 4, 2011
Map advertising • Advertising within online mapping solutions Tuesday, October 4, 2011
interaction  Rich media allows for rich content  One banner can have  Video  Tour schedule  Downloads  Link to web site Tuesday, October 4, 2011
The art of Retargeting Tuesday, October 4, 2011
Tuesday, October 4, 2011
Center for Management Development Retargeting gone wrong, lol 68 Tuesday, October 4, 2011
What do the numbers say? + Tuesday, October 4, 2011
What do the numbers say? + Tuesday, October 4, 2011
What do the numbers say? %249 Tuesday, October 4, 2011
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
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
In-Game advertising Tuesday, October 4, 2011
Wallpaper advert • Changes the background of a web page • Usually is not clickable • Used for branding Tuesday, October 4, 2011
Tuesday, October 4, 2011
Interactive Banners Tuesday, October 4, 2011
Branded applications Tuesday, October 4, 2011
Advantages 1 Tuesday, October 4, 2011
Advantages 2 Tuesday, October 4, 2011
Advantages 3 Tuesday, October 4, 2011
Disadvantages 1 Tuesday, October 4, 2011
Disadvantages 2 Tuesday, October 4, 2011
Disadvantages 3 Tuesday, October 4, 2011
Ad servers and Advertising networks Ad server Publisher’s server Tuesday, October 4, 2011
Tell viewers what to do: Call to Action Tuesday, October 4, 2011
Ad Servers Tuesday, October 4, 2011
Benefits of ad servers Tuesday, October 4, 2011
Benefits of ad servers • Adverts maintained and updated through a central location Tuesday, October 4, 2011
Benefits of ad servers • Adverts maintained and updated through a central location • Advert performance reporting Tuesday, October 4, 2011
Benefits of ad servers • Adverts maintained and updated through a central location • Advert performance reporting • Sophisticated targeting Tuesday, October 4, 2011
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
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
Advertising Network Tuesday, October 4, 2011
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
 Publishers place unsold inventory  Advertisers bid for inventory  Bids are placed based on  Audience profile  Space Advertising exchanges Tuesday, October 4, 2011
Advertising exchanges Image credit: http://blog.contextweb.com/contextual/vocabulary-gone-wild-or-what-is-a-true-advertising-exchange Tuesday, October 4, 2011
Tracking • Impressions • Click-throughs • Connection type • Browser • OS • Time of day • ISP Tuesday, October 4, 2011
Cookies Photo credit: http://flickr.com/photos/71217725@N00/ Tuesday, October 4, 2011
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
Tuesday, October 4, 2011
Tuesday, October 4, 2011
http://awards.playballoonacy.com/ Tuesday, October 4, 2011
http://202.218.121.130/2008/axewakeupservice/en/ Tuesday, October 4, 2011
http://www.bannerblog.com.au/2007/12/ sixt_ascii_text_ads.php Tuesday, October 4, 2011
http://skittles.com/chatter.htm Tuesday, October 4, 2011
• http://video.google.com/videoplay?docid=-6739710473912337648&pr=goog-sl Tuesday, October 4, 2011
Tuesday, October 4, 2011
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
http://theinspirationroom.com/daily/2005/ikea-elite-des Tuesday, October 4, 2011
Tuesday, October 4, 2011
Buzz Spreads Via Blogs and E-mail Tuesday, October 4, 2011
http://kungsgrillen.se/machines/ Tuesday, October 4, 2011
http://www.777interactive.jp/awards/2008/bravia/e/ Tuesday, October 4, 2011
Tuesday, October 4, 2011
Center for Management Development Attention Interest Desire Action Tuesday, October 4, 2011
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
Center for Management Development 107 Tuesday, October 4, 2011
Center for Management Development Attention Interest Desire Action Tuesday, October 4, 2011
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
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
Center for Management Development Ecommerce: Upper Funnel Conversion Tuesday, October 4, 2011
Center for Management Development Ecommerce: Upper Funnel Conversion Merchandising Tuesday, October 4, 2011
Center for Management Development Ecommerce: Upper Funnel Conversion Merchandising Product Information Tuesday, October 4, 2011
Center for Management Development Ecommerce: Upper Funnel Conversion Pricing Strategy Merchandising Product Information Tuesday, October 4, 2011
Center for Management Development Ecommerce: Upper Funnel Conversion Pricing Strategy Merchandising “Buy Now” experimentation Product Information Tuesday, October 4, 2011
Center for Management Development Ecommerce: Upper Funnel Conversion Pricing Strategy Merchandising “Buy Now” experimentation “Buy Later” options Product Information Tuesday, October 4, 2011
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
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
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
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
Center for Management Development Great Product detail example 112 Tuesday, October 4, 2011
Center for Management Development 113 Tuesday, October 4, 2011
Center for Management Development Ecommerce: Lower Funnel Conversion Tuesday, October 4, 2011
Center for Management Development Ecommerce: Lower Funnel Conversion “Checkout” experimentation Tuesday, October 4, 2011
Center for Management Development Ecommerce: Lower Funnel Conversion Returns policy “Checkout” experimentation Tuesday, October 4, 2011
Center for Management Development Ecommerce: Lower Funnel Conversion Shipping Returns policy policy “Checkout” experimentation Tuesday, October 4, 2011
Center for Management Development Ecommerce: Lower Funnel Conversion Shipping Returns policy policy “Checkout” Live Chat experimentation Tuesday, October 4, 2011
Center for Management Development Ecommerce: Lower Funnel Conversion Shipping Returns policy policy “Checkout” Live Chat experimentation Alleviate security & privacy concerns Tuesday, October 4, 2011
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
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
Augmented Reality http://www.youtube.com/watch? v=b64_16K2e08&feature=related Tuesday, October 4, 2011
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
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

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Session #4 2011

  • 2. Sho wa nd Sel l Tuesday, October 4, 2011
  • 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
  • 11. Integrated Marketing Strategies Six Essentials of Integrated Marketing 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
  • 26. The Online Marketing Toolkit 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
  • 31. Segmentation Using Customer Behaviour Electronic Commerce, Ninth Edition 25 Tuesday, October 4, 2011
  • 32. Segmentation Using Customer Behaviour Electronic Commerce, Ninth Edition 25 Tuesday, October 4, 2011
  • 33. Segmentation Using Customer Behaviour Electronic Commerce, Ninth Edition 25 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
  • 84. Center for Management Development Driving online attention 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
  • 90. Center for Management Development 32 Tuesday, October 4, 2011
  • 91. Center for Management Development 32 Tuesday, October 4, 2011
  • 92. Center for Management Development 32 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
  • 113. Call to Action Tuesday, October 4, 2011
  • 115. Unique Visitors Tuesday, October 4, 2011
  • 116. Landing Page Tuesday, October 4, 2011
  • 117. Conversion Rate Tuesday, October 4, 2011
  • 119. Click Tracking Tuesday, October 4, 2011
  • 126. Targe ting iou ral Be hav Tuesday, October 4, 2011
  • 127. G eo grap hic Tar getin g 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
  • 135. Test #2 Test #1 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
  • 139. Advertising evolves with technology 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
  • 156. Wallpaper advert • Changes the background of a web page • Usually is not clickable • Used for branding Tuesday, October 4, 2011
  • 160. Advantages 1 Tuesday, October 4, 2011
  • 161. Advantages 2 Tuesday, October 4, 2011
  • 162. Advantages 3 Tuesday, October 4, 2011
  • 165. Disadvantages 3 Tuesday, October 4, 2011
  • 166. Ad servers and Advertising networks Ad server Publisher’s server Tuesday, October 4, 2011
  • 167. Tell viewers what to do: Call to Action Tuesday, October 4, 2011
  • 169. Benefits of ad servers 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
  • 186. http://www.bannerblog.com.au/2007/12/ sixt_ascii_text_ads.php 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
  • 193. Buzz Spreads Via Blogs and E-mail 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
  • 199. Center for Management Development 107 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
  • 214. Center for Management Development 113 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