Digital Marketing. Copyright 2016 Pearson Education, Inc.

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1 8 Chapter Eight Digital Marketing 8 Digital Marketing Chapter Objectives 1. What is digital marketing? 2. How has the transition to Web 4.0 affected the field of marketing communications? 3. How can e-commerce programs and incentives build a stronger customer base and overcome customer concerns at the same time? 4. How do mobile marketing systems enhance digital marketing programs? 8-2 1

2 8 Digital Marketing Chapter Objectives 5. What digital strategies do marketing professionals employ? 6. What types of web advertising can companies use to reach consumers? 7. What is a search engine optimization strategy? 8. How can companies successfully conduct digital marketing programs in international markets? 8-3 F I G U R E 8. 1 Overview of Marketing Communications Regulation & Ethics Evaluation Database, Direct Response, & Personal Selling Sales Promotions Public Relations & Sponsorships Digital Marketing Social Media Alternative Marketing Advertising Management Advertising Design Traditional Media Brand Management Buyer Behaviors IMC Planning Process 2

3 8 Marketing Zen Shama Kabani founder Digital marketing services Shift in nature of communication Started as a consulting service Now full-service agency Metrics to assess effectiveness Quantitative Qualitative Goal increase Web traffic Digital Marketing Chapter Overview Web 1.0 Web 4.0 E-commerce programs Mobile marketing Digital strategies Web advertising Search engine optimization 8-6 3

4 F I G U R E 8. 2 Primary Characteristics Web 1.0 to Web 4.0 Web 1.0 Static content provided by creator Dominated by institutions and businesses Commercially and technically based Web 2.0 Content is socially-based and audience generated Web 3.0 Content driven by online metrics Integration of content and communications Instant real-time communications Web 4.0 Customer engagement Cloud operating systems Web participation a necessity 8-7 E-Commerce Click-only operations to bricks-and-clicks B2C and B2B online commerce Online sales 8 percent of retail activity Research online before purchase 80% Americans 50% Australians 8-8 4

5 Online Retail Sales by Digital Channel Social media, 2% Other, 5% Affliate Web site, 10% Display ads, 1% Retailer's site/app, 25% marketing, 17% Paid search, 16% Organic search, 26% Source: Based on Social Yields Just 2% of Online Holiday Retail Sales, Advertising Age, December 11,

6 F I G U R E 8. 3 Characteristics of E-commerce Sites Customer-centric design Consistent customer experience Drill-down search Channel integration Brand engagement Customer interaction Customization and personalization Online and offline marketing Search engine optimization (SEO) Shopping cart abandonment strategies 8-11 Successful E-Commerce Consistent customer experience Zero tolerance for poor Web performance Dissatisfaction lost sales Load time Channel integration Online and offline catalogs integrated Access from any digital platform

7 Successful E-Commerce Brand Engagement Opportunities for engagement Blogs, reviews, social media Reviews and feedback Personalization and customization Offline and online advertising 8-13 Successful E-Commerce Shopping Cart Abandonment Show any additional costs Make checkout simple Make it easy to enter discount codes Provide safe checkout procedures

8 F I G U R E 8. 4 Common Forms of Cyberbait Financial lncentives Convenience lncentives Value-added lncentives 8-15 F I G U R E

9 Successful E-Commerce Privacy and Security Issues Fear of identity theft $21 billion lost sales Fears declining Selling personal information Trust key issue 8-17 Mobile Marketing Smartphones (44%) Ways people use smartphones Social device Search for product information Method of shopping

10 F I G U R E 8. 5 Types of Mobile Marketing Display ads Search ads Video advertising Text messages In-app advertising QR codes, digital watermarks, 2D barcodes Geo-targeting 8-19 F I G U R E 8. 6 Marketing Uses for Action Codes in Magazines 40% 35% 35% 30% 25% 20% 21% 20% 21% 15% 11% 10% 8% 7% 7% 5% 2% 0% Source: Adapted from Roger Matus, Mobile Action Codes in Magazine Advertising, Whitepaper from Nellymoser,Inc ( p

11 F I G U R E 8. 7 Digital Marketing Strategies Interactive marketing Content marketing Location-based advertising Behavioral targeting Video tactics Blogs and newsletters marketing 8-21 Interactive Marketing Two-way communication and involvement Internet ideal medium Can track activity Personalize messages Emphasizes two primary activities Targeting individuals Engaging consumers

12 Percent of Total F I G U R E 8. 8 Online Interactive Tactics 80.0% 70.0% 72.6% 60.0% 60.8% 50.0% 44.5% 40.0% 36.9% 30.0% 20.0% 10.0% 22.8% 11.0% 17.9% 13.7% 15.6% 0.0% Source: Based on Larry Jaffee, Follow the Money, Promo, 20, No. 11 (November 2007 Sourcebook), pp F I G U R E 8. 9 Steps In Developing an Interactive Marketing Strategy 1. Cultivate an attitude of giving 2. Gain trust 3. Identify your one-word brand 4. Define your ultimate vision 5. Choose your communication channels 6. Evaluate and adjust Source: Adapted from Shama Hyder Kabani, Online Marketing Plan The Marketing Zen Group, pp

13 F I G U R E Content Marketing Information and solutions Authentic Shareable content Integrate content, search, and social Update consistently 8-25 F I G U R E Sponsored Content Alternative to branded content Sponsor Bloggers Related websites Shareable content Potential for negative reaction

14 F I G U R E Location-Based Advertising Targeting by DMAs (Designated marketing areas), 30% Geo-fencing, 27% Audience-data targeting, 24% Geo-aware advertising, 14% City or zip code, 5% Source: Mark Walsch, Location-Based Mobile Ads Deliver Best Engagement, Performance, Online Media Daily, February 6, F I G U R E Mobile App Location-based Advertising

15 F I G U R E Behavioral Targeting Uses Web data Pages visited on the Internet Keyword searches or content read Past visitors to a site 8-29 F I G U R E Video Tactics Advertising on videos Posting broadcast video ads Producing informational videos Producing cause-related videos Product reviews

16 F I G U R E Online Ads versus Television Ads 70% 60% 64% 50% 40% 40% 50% 46% 30% 27% 28% 20% 20% 17% 10% 0% Message recall Brand recall General recall Ad likeability Digital Ads TV ads Source: Lucia Moses, Online Video Ads Have Higher Impact Than TV Ads, Adweek, May 1, Posting Video Ads F I G U R E Ad placement Pre-roll Mid-roll Post-roll YouTube channel

17 F I G U R E Video Tactics Information videos Cause-related videos Product reviews Metrics Dwell rate Dwell time 8-33 Blogs and Newsletters Blogs are online musings Power of online buzz Company-sponsored blogs Objective of blog Reaction strategy for negative comments Small businesses Newsletters Offer solutions and information Update regularly

18 Marketing Important component of digital strategy Integrate with other channels Resemble information on website Using Web analytics to direct campaign Individuals who visit website Individuals who abandon shopping cart Targeted s have higher conversion rates 8-35 F I G U R E Developing Successful Campaigns Be upfront, honest with subscribers Build list for quality, not quantity Give subscribers what they want Be familiar to your audience Keep s neat and clean Be eye-catching Integrate social media Test, test, and test Source; Interview with Holly Betts, Marketing Zen, February 12,

19 Web Advertising Highly effective Younger, affluent, Internet savvy Online budgets have increased Multi-screen approach 8-37 F I G U R E U.S. Online Ad Spending by Format Other, 8.9% Banners, 22.6% Classified, 5.7% Search, 49.2% Media/Video, 13.6% Source: Based on Online Ad Spending Consolidates Among Search, Banners, Video, emarkter Digital Intelligence, February 3, 2012,

20 Banner Advertising First online advertising Accounts for 22.6% of online advertising Can embed videos and widgets Targeted display ads Auction exchanges Matches audience 8-39 Widgets Banner Advertising Mini-applications embedded in banners Access external dynamic content Provide personalized access to information Micro-site landing pages Geo-targeted ads

21 Video Ad for Swimways A video ad produced for the Internet by Newcomer, Morris, and Young showing two surfers playing soccer from surfboards 8-41 Impact of Online Advertising Banner click-through rate 0.27% Improve response through targeting Third-party tags Ads not seen Below the fold Blocking software Fraud

22 Offline Advertising Integration of offline with online Brand spiraling Personalized URLs 8-43 Search Engine Optimization Largest category of online expenditures Text ads on search results Nearly 50% of online advertising 80% of Web traffic begins with a search Three methods of SEO Paid search insertion Natural or organic emergence Paid search ads Local businesses

23 Results Search Engine Optimization Organic results First page results 9x Second or third page results 6x Paid search Unaided awareness higher Search click-through rate 5% (typical 0.2%) 8-45 International Implications Shipping issues Communication issues Technology issues