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Copyright ©2016 Pearson Education, Inc.
8 Chapter Eight
Digital Marketing
Copyright ©2016 Pearson Education, Inc.
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?
Digital Marketing8
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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?
Digital Marketing8
8-3
Regulation
& Ethics Evaluation
Database,
Direct
Response, &
Personal
Selling
Sales
PromotionsPublic Relations
& Sponsorships
Traditional
Media
Digital
MarketingAlternative
Marketing
Advertising
ManagementAdvertising
Design
Brand Management Buyer
BehaviorsIMC Planning Process
Social
Media
F I G U R E 8 . 1
Overview of Marketing Communications
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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
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Chapter Overview
• Web 1.0 Web 4.0
• E-commerce programs
• Mobile marketing
• Digital strategies
• Web advertising
• Search engine optimization
8Digital Marketing
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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
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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
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Online Retail Sales by Digital Channel
Source: Based on “Social Yields Just 2% of Online Holiday Retail Sales,” Advertising Age,
http://adage.com/print/245625, December 11, 2013.
Affliate Web site; 10%
Display ads; 1%
E-mail marketing; 17%
Organic search; 26%Paid search; 16%
Retailer's site/app; 25%
Social media; 2%
Other; 5%
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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
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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
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Successful E-Commerce
Brand Engagement
• Opportunities for engagement
• Blogs, reviews, social media
• Reviews and feedback
• Personalization and customization
• Offline and online advertising
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• Show any additional costs
• Make checkout simple
• Make it easy to enter discount codes
• Provide safe checkout procedures
Successful E-Commerce
Shopping Cart Abandonment
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F I G U R E 8 . 4
Common Forms of Cyberbait
Financial
lncentives ●
● Value-added lncentivesConvenience
lncentives ●
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F I G U R E 9 . 4
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Successful E-Commerce
Privacy and Security Issues
• Fear of identity theft
• $21 billion lost sales
• Fears declining
• Selling personal information
• Trust key issue
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Mobile Marketing
• Smartphones (44%)
• Ways people use smartphones
• Social device
• Search for product information
• Method of shopping
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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
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F I G U R E 8 . 6
Marketing Uses for Action Codes in Magazines
Source: Adapted from Roger Matus, “Mobile Action Codes in Magazine Advertising,” Whitepaper from Nellymoser,Inc
(www.nellymoser.com), p. 4.
8%7%
21%
7%
20%
2%
21%
11%
35%
0%
5%
10%
15%
20%
25%
30%
35%
40%
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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
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Interactive Marketing
• Two-way communication and involvement
• Internet ideal medium
• Can track activity
• Personalize messages
• Emphasizes two primary activities
• Targeting individuals
• Engaging consumers
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F I G U R E 8 . 8
Online Interactive Tactics
44,5%
22,8%
72,6%
60,8%
36,9%
11,0%
17,9%13,7%
15,6%
0,0%
10,0%
20,0%
30,0%
40,0%
50,0%
60,0%
70,0%
80,0%
Perc
ent of
Tota
l
Source: Based on Larry Jaffee, “Follow the Money,” Promo, 20, No. 11 (November 2007 Sourcebook), pp. 5-10.
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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.
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F I G U R E 8 . 10
Content Marketing
• Information and solutions
• Authentic
• Shareable content
• Integrate content, search, and social
• Update consistently
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F I G U R E 8 . 10
• Alternative to branded content
• Sponsor
• Bloggers
• Related websites
• Shareable content
• Potential for negative reaction
Sponsored Content
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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.
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F I G U R E 8 . 10
Mobile App
Location-based Advertising
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F I G U R E 8 . 10
• Uses Web data
• Pages visited on the Internet
• Keyword searches or content read
• Past visitors to a site
Behavioral Targeting
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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
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F I G U R E 8 . 13
Online Ads versus Television Ads
Source: Lucia Moses, “Online Video Ads Have Higher Impact Than TV Ads,” Adweek, www.adweek.com/news/advertising-branding/online-
video-ads-have-higher-impact-than-tv-ads-148982, May 1, 2013.
40%
50%
64%
28%
20%
27%
46%
17%
0%
10%
20%
30%
40%
50%
60%
70%
Message recall Brand recall General recall Ad likeability
Digital Ads TV ads
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F I G U R E 8 . 10
• Ad placement
• Pre-roll
• Mid-roll
• Post-roll
• YouTube channel
Posting Video Ads
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F I G U R E 8 . 10
• Information videos
• Cause-related videos
• Product reviews
• Metrics
• Dwell rate
• Dwell time
Video Tactics
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• 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
Blogs and Newsletters
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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
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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.
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Web Advertising
• Highly effective
• Younger, affluent, Internet savvy
• Online budgets have increased
• Multi-screen approach
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F I G U R E 8 . 15
U.S. Online Ad Spending by Format
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.
Banners; 22,6%
Classified; 5,7%
Media/Video; 13,6%Search; 49,2%
Other; 8,9%
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Banner Advertising
• First online advertising
• Accounts for 22.6% of online advertising
• Can embed videos and widgets
• Targeted display ads• Auction exchanges
• Matches audience
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WidgetsBanner Advertising
• Mini-applications embedded in banners
• Access external dynamic content
• Provide personalized access to information
• Micro-site landing pages
• Geo-targeted ads
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Video Ad for Swimways
A video ad produced for the Internet by Newcomer,
Morris, and Young showing two surfers playing
soccer from surfboards
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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
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Offline Advertising
• Integration of offline with online
• Brand spiraling
• Personalized URLs
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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
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ResultsSearch 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%)
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International Implications
• Shipping issues
• Communication issues
• Technology issues
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Blog Exercises
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