intro to internet marketing offers 20141001

Introduction to Internet Marketing

ADV 370J Integrated Communications MgmtOctober 1, 2014

Steve Schaffer, Founder & CEO

© 2009, 2014 Offers.com Proprietary and Confidential

Outline for Today

• Overview of Online Marketing

• Types of Online Marketing– Search Marketing– Performance Marketing– Display Advertising– Social Media

• Digital & Mobile Coupons– Coupon Websites– Mobile Coupons

• Questions & Discussion

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© 2009, 2014 Offers.com Proprietary and Confidential

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About You & Questions

© 2009, 2014 Offers.com Proprietary and Confidential

Who am I?Steve Schaffer - Founder and CEO

• BBA in Finance from UT (May 1986)

• 15+ years software product management and marketing in Silicon Valley

• 15+ years of Internet marketing and strategy experience

• Founded Vertive in 2002 (while still in Silicon Valley)

• Moved to Austin January, 2003

• Offers.com launched February 2009

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© 2009, 2014 Offers.com Proprietary and Confidential

About Offers.com

• A leader in the coupon and deals space– Paid when a defined transaction occurs (sale or lead)

• Proprietary platform for publishing websites and managing marketing campaigns

• 50+ employees and is growing

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© 2009, 2014 Offers.com Proprietary and Confidential

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Overview of Online Marketing

© 2009, 2014 Offers.com Proprietary and Confidential

Internet Advertising Growth 1996-2012

• Q3 2012 Ad Revenue: $10 Billion– Since 2003, 80% of quarters have experienced positive growth over their prior

quarter

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Source: www.iab.net

© 2009, 2014 Offers.com Proprietary and Confidential

Global Ad Spend: $503 Billion in 2013

• Mobile advertising one of the fastest growing segments– 2012: 1.7% of total media– 2015: 6% of total media ($33Bn; 25% of internet spend)

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Source: www.zenithoptimedia.com

© 2009, 2014 Offers.com Proprietary and Confidential

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Types of Online Marketing

© 2009, 2014 Offers.com Proprietary and Confidential

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Search Engine Marketing

© 2009, 2014 Offers.com Proprietary and Confidential

Search Engine Results Overview

• Search Engines’ Goal: Answer user’s search query

• Search Engine Optimization (SEO)– Public relations: “free” listings– Based on search engine algorithm

• Search Engine Marketing (PPC)– Marketer pays each time a user clicks on their ad– Detailed and precise tracking

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Unique Aspects of Search

• Self-qualified user– Customers type in a search phrase– Non-intrusive: based on users request

• Customize message and user-experience based on search phrase

• What is the intent of the user?– Research – gathering information– Evaluation – selecting alternatives– Purchase – buy/order

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https://www.google.com/

© 2009, 2014 Offers.com Proprietary and Confidential

SEO (Search Engine Optimization) Summary

• User & Search Engine Friendly Design– Page layout– Site organization– Keyword usage– Technical issues

• External Links– Relevant links

• Quality sites with relevant content are best• Landing pages must be relevant

– Link popularity• Shows authority in the space

– Link text• Putting targeted keywords in the link text is crucial

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© 2009, 2014 Offers.com Proprietary and Confidential

PPC (Search Engine Marketing)• Pay-per-click

– Marketer pays each time an ad is clicked ($0.05 - $100, avg. is ~$0.80)– Automated management and billing– Can track desired action back to the keyword

• Control– Keywords and ads– Relevant landing pages– Price and budget

• Understand the value of a visitor– Cost per desired action per keyword– Measure everything: Cost per click, average position, conversion rate

• Actively manage the campaign– Update bids positions and costs based on bid– Test, refine, repeat

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PPC Management in Action

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Determine The Value of a Visitor

• How much is a visitor worth?– What measuring stick do we use?

• Define the actions a user could take to be valuable– Make a purchase, request a quote, enter an email address, etc.

• Define the worth of each action based on business costs and value contribution– Consider costs of advertising, production, shipping, payroll, sales

cycles, lifetime value, etc.

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© 2009, 2014 Offers.com Proprietary and Confidential

Keyword Selection: The Right Terms

• Keyword research is vital– Know the product/service– Know how the customer thinks of the product/service

• General keywords vs. Long Tail (Niche)

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Keyword Selection: Match Types

• Exact– Show only when exact keyword is searched

• Phrase– Show when keyword is embedded in query

• Broad Match Modified (BMM)– Show when any combination of specific keywords are in a query

• Broad– Show when any combination of keywords or similar keywords, are in

query

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© 2009, 2014 Offers.com Proprietary and Confidential

Match Type Example: Cheap Tablets

• Exact– Cheap tablets

• Phrase– Cheap tablets for sale under $200

• Broad Match Modified (BMM)– +cheap + tablets = both keywords required in query– cheap + tablets = tablets required in query, will match to variants of

“cheap”

• Broad– Best tablets for the cheapest price– Tablets for cheap

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© 2009, 2014 Offers.com Proprietary and Confidential

Ad Copy Writing

• Ads should be as relevant to the query as possible

• Tell the user why they should visit your site and not the competition’s

• Encourage users to take an action: buy now, sign up today, etc.

• Landing page must deliver on ad’s promise

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© 2009, 2014 Offers.com Proprietary and Confidential

Ad Copy Examples: Cheap Tablets

• Which ad is the most relevant?

• Which ad is the least relevant?

• Which ad has the best call to action?

• Which ad would sell the most cheap tablets?

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© 2009, 2014 Offers.com Proprietary and Confidential

PPC Management in Action

• Focus on terms that:– Drive converting traffic– Have high enough volume to be meaningful– Drive profit (the value of the visitor is higher than cost to

run)

• All of the above must function together

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© 2009, 2014 Offers.com Proprietary and Confidential

Sample Data Set

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© 2009, 2014 Offers.com Proprietary and Confidential

Drive Converting Traffic

• Which keyword has the best conversion rate?– E

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Meaningful Volume

• Which keyword drives the most volume?– A

• “E” drives a very small share of volume, so it should not be a focus of the campaign

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© 2009, 2014 Offers.com Proprietary and Confidential

Drive Profit

• Which keyword is the most profitable?– C

• “A” has generated a negative ‘net contribution’ that needs to be addressed

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The Bottom Line

• Multiple metrics need to be considered while making decisions

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What’s Next for this Keyword Set?

• Reduce Ad Costs– Lower bids on expensive terms to test lower positions

– Raise bids on low volume positive GP terms to test higher positions

– Write more refined ad copy to reduce untargeted clicks

– Expand keyword list to grow long-tail

– Add negative keywords to refine traffic

– Shut down proven big losers

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© 2009, 2014 Offers.com Proprietary and Confidential

What’s Next for this Keyword Set?

• Improve on-site conversion (CVR)– Test landing page variations using A/B or

multivariate methods

– Reduce as much friction as possible between the visit and the order

– Evaluate shopping cart steps: too many steps?

– Evaluate requested info: too much requested data?

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© 2009, 2014 Offers.com Proprietary and Confidential

What’s Next for this Keyword Set?

• Test, test, and test again– Ad copy, keyword lists, bids, and landing pages are

rarely perfect

• Actively communicate successes and failures with management and across departments

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© 2009, 2014 Offers.com Proprietary and Confidential

Bottom Line of Search• Understand your goals

– Increase leads or sales– Maximize profit

• Search is complex– What are the back-end (tracking) capabilities?– Specific knowledge is required– Many small and subtle details – Follow best practices (avoid tricks)– Track and measure

• What does this all mean– Search works– The market is growing– Very quantitative field

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Performance Marketing

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How Performance Marketing Works

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© 2009, 2014 Offers.com Proprietary and Confidential

Performance Marketing in Action

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1. Performance Publishing Website

2. Merchant Website

3. Commission (Referral Fee or % of Sale) Paid to Performance Publisher http://www.offers.com/otterbox/

© 2009, 2014 Offers.com Proprietary and Confidential

October 1, 2014Page 35

Display Advertising

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Display Advertising

• Typically a cost per thousand impressions (CPM) model– Advertiser pays each time the ad is loaded, not

viewed

• Advertiser decides how to target– Where are potential customers?– Higher quality site & relevance = more expensive

• Ad units can be static, animated or rich media– Depends on site limitations

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Samples:http://www.cnn.com/http://www.msn.com/

http://www.youtube.com/

© 2009, 2014 Offers.com Proprietary and Confidential

October 1, 2014Page 37

Social Media

© 2009, 2014 Offers.com Proprietary and Confidential

Social Media

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© 2009, 2014 Offers.com Proprietary and Confidential

Social Networking

• Goal: Engage in a conversation with users– Use platforms like Twitter, Facebook, Pinterest,

Instagram, and Google+

– Which platforms are used depend on the target audience

– Maintain a presence: don’t ignore users

– Offer incentives, discounts, or other perks for users to join the conversation

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© 2009, 2014 Offers.com Proprietary and Confidential

Measuring Social Media

• Multiple Performance Metrics Available– Number of page views, friends, followers, etc.– Brand Engagement users– Conversions to sales/customers

• Social Media Monitoring Tools– Aggregate what users are saying about a brand– Gives brand a way to react to users

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Learning More

© 2009, 2014 Offers.com Proprietary and Confidential

Internet Marketing Websites & Resources• Internet Marketing

– BruceClay.com– ClickZ.com

• SEM Websites– SearchEngineLand.com– SearchEngineWatch.com– SEMPO.org – SEM professionals organization

• Performance Marketing– PerformanceMarketingAssociation.com

• Research Data– TNS-mi.com (TNS Media Intelligence)– eMarketer.com– www.youngadultmoney.com– comScore.com

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Questions?