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
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
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 8-5 8 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
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
Online Retail Sales by Digital Channel Social media, 2% Other, 5% Affliate Web site, 10% Display ads, 1% Retailer's site/app, 25% E-mail marketing, 17% Paid search, 16% Organic search, 26% Source: Based on Social Yields Just 2% of Online Holiday Retail Sales, Advertising Age, http://adage.com/print/245625, December 11, 2013. 5
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 8-12 6
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 8-14 7
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. 4 8-16 8
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 8-18 9
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 (www.nellymoser.com), p. 4. 8-20 10
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 E-mail 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 8-22 11
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. 5-10. 8-23 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, www.marketingzen.com, pp. 9-13. 8-24 12
F I G U R E 8. 10 Content Marketing Information and solutions Authentic Shareable content Integrate content, search, and social Update consistently 8-25 F I G U R E 8. 10 Sponsored Content Alternative to branded content Sponsor Bloggers Related websites Shareable content Potential for negative reaction 8-26 13
F I G U R E 8. 11 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, www.mediapost.com/publications/article/192780, February 6, 2013. 8-27 F I G U R E 8. 10 Mobile App Location-based Advertising 8-28 14
F I G U R E 8. 10 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 8. 12 Video Tactics Advertising on videos Posting broadcast video ads Producing informational videos Producing cause-related videos Product reviews 8-30 15
F I G U R E 8. 13 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, www.adweek.com/news/advertising-branding/onlinevideo-ads-have-higher-impact-than-tv-ads-148982, May 1, 2013. 8-31 Posting Video Ads F I G U R E 8. 10 Ad placement Pre-roll Mid-roll Post-roll YouTube channel 8-32 16
F I G U R E 8. 10 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 8-34 17
E-Mail Marketing Important component of digital strategy Integrate with other channels Resemble information on website Using Web analytics to direct e-mail campaign Individuals who visit website Individuals who abandon shopping cart Targeted e-mails have higher conversion rates 8-35 F I G U R E 8. 14 Developing Successful E-mail Campaigns Be upfront, honest with subscribers Build list for quality, not quantity Give subscribers what they want Be familiar to your audience Keep e-mails neat and clean Be eye-catching Integrate social media Test, test, and test Source; Interview with Holly Betts, Marketing Zen, February 12, 2014. 8-36 18
Web Advertising Highly effective Younger, affluent, Internet savvy Online budgets have increased Multi-screen approach 8-37 F I G U R E 8. 15 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, www.smarketer.com/articles/print.aspx?r=1008815. 8-38 19
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 8-40 20
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 8-42 21
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 8-44 22
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 8-46 23