Chapter Eight Digital Marketing - DEUkisi.deu.edu.tr/sumeyra.kurt/MRK...

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Copyright ©2016 Pearson Education, Inc.

8 Chapter Eight

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?

Digital Marketing8

8-2


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


2


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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8-5 Copyright ©2016 Pearson Education, Inc.

Chapter Overview

• Web 1.0 Web 4.0

• E-commerce programs

• Mobile marketing

• Digital strategies

• Web advertising

• Search engine optimization

8Digital Marketing

8-6


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


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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3

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%

Copyright ©2016 Pearson Education, Inc. Copyright ©2016 Pearson Education, Inc.

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



Brand Engagement

• Opportunities for engagement

• Blogs, reviews, social media

• Reviews and feedback

• Personalization and customization

• Offline and online advertising

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http://adage.com/print/245625

4


• Show any additional costs

• Make checkout simple

• Make it easy to enter discount codes

• Provide safe checkout procedures


Shopping Cart Abandonment


F I G U R E 8 . 4

Common Forms of Cyberbait

Financial

lncentives ●

● Value-added lncentivesConvenience

lncentives ●

8-14


F I G U R E 9 . 4

8-15


Privacy and Security Issues

• Fear of identity theft

• $21 billion lost sales

• Fears declining

• Selling personal information

• Trust key issue

Copyright ©2016 Pearson Education, Inc. 8-16

5


Mobile Marketing

• Smartphones (44%)

• Ways people use smartphones

• Social device

• Search for product information

• Method of shopping


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%


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

8-20

http://www.nellymoser.com/

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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


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.

8-22


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.


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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http://www.marketingzen.com/

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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


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


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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http://www.mediapost.com/publications/article/192780

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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


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


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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http://www.adweek.com/news/advertising-branding/online-video-ads-have-higher-impact-than-tv-ads-148982

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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


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.


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%


Banner Advertising

• First online advertising

• Accounts for 22.6% of online advertising

• Can embed videos and widgets

• Targeted display ads• Auction exchanges

• Matches audience

8-38


WidgetsBanner Advertising

• Mini-applications embedded in banners

• Access external dynamic content

• Provide personalized access to information

• Micro-site landing pages

• Geo-targeted ads


Video Ad for Swimways

A video ad produced for the Internet by Newcomer,

Morris, and Young showing two surfers playing

soccer from surfboards

8-40

http://www.smarketer.com/articles/print.aspx?R=1008815

http://www.youtube.com/watch?v=DTUWuaBsc90

http://www.youtube.com/watch?v=DTUWuaBsc90

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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


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


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


Blog Exercises

8-46

http://blogclowbaack.net/2014/05/12/advil-chapter-8/

http://blogclowbaack.net/2014/05/12/digital-marketing-strategies-chapter-8/

http://blogclowbaack.net/2014/05/12/seo-chapter-8/

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