Digital Marketing Project
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InternetMarketingAds3.pptxInternet Marketing Advertising Methods
Dr. Ofer Mintz
Digital Marketing for Managers UTS 24729
Quiz Logistics
Quiz starts at 5:05pm
Material includes all lecture and tutorial material (incl. this morning) and readings
Tutorial will end at 3:30 to allow for time to study
Bring pencil to fill out exam form
MUST turn in quiz instruction sheet as will have a write-in question there
Nothing will be allowed on desk
Live Case Logistics
For presentation: maximum of 2 speakers (everyone must stand in front of class); introduce all members before presentation
Upload file on UTS Online and also bring USB memory stick to class (all must be uploaded on computer before class!)
Print 1 copy of Powerpoint slides; make sure all names are on the slides
SPARK peer evals due before class (done online)
See Rubric (UTS Online) for more details
Order of presentations randomly drawn; make sure to be on time!
Fun Fact of the Day
Google’s Profits (2018)
10 Most Visited Australian Websites (in first half of 2018)
10 Most Visited Websites in Australia (in first half of 2018)
Share of online time spent on selected websites in Australia as of August 2018
Share of online time on selected websites Australia 2018
Note: Australia; as of August 2018
Further information regarding this statistic can be found on page 8.
Source(s): ACCC; Nielsen; ID 957979
2
Google Facebook Microsoft News outlets Apple 0.20899999999999999 0.18 3.1E-2 2.4E-2 1.9E-2
Share of online time
Which of these types of websites and online services have you used in the past 4 weeks (end of Nov – mid Dec 2017)?
Popular website and online service types in Australia 2017
Note: Australia; Nov 28 to Dec 21, 2017; 18 to 64 years; 1,036 Respondents
Further information regarding this statistic can be found on page 8.
Source(s): Statista Survey (Global Consumer Survey); ID 822738
4
Search engines Online stores Social media websites and apps Video websites and apps (e.g. YouTube) News websites and apps Company websites and apps Newsletters Blogs None of the above 0.68 0.52 0.49 0.43 0.35 0.32 0.14000000000000001 0.14000000000000001 0.1
Share of respondents
Digital Marketing Spending Trends & Expected Trends in Australia (via Statista)
Today’s Class Outline
Main takeaway: Understand different internet advertising options (know what are they, why do each of them, what are pros/cons, etc.)
Structure:
Current Events
Recap of What We have Done So Far
Overview of Different Types of Internet Advertising Methods
Metrics to Use
Case: BigSkinny.net
Current Event Example 1: Apple Unveils new Apple TV Plus Service
What is it: Apple launched a competitor to Netflix and Amazon
What is the big deal: Apple sees opportunity in content, AND less opportunity in mobile devices
Who should be worried: Mobile providers; more difficult competition and less growth
What can you do with it (business-wise): Identify other market opportunities
Current Event Example 2: McDonald’s bought a firm for $300million
What is it: McDonald’s spent a large amount of cash to try to improve menus based on customer preferences that are inferred from previous clicks/choices
What is the big deal: Shows how insights once garnered solely online (like in our example last week) are moving to off-line stores as well
Who should be worried: No one other than maybe privacy issues; more that services should be more personalized.
What can you do with it (business-wise): Keep adjusting and personalize services better
Article: How Companies Learn Your Secrets
Summary
Reaction to big-picture
Concerns
Class Approach to Digital Marketing
Understand customers, competitors, and company
Develop a goal based on this understanding
Select the appropriate marketing mediums and mix to accomplish goal
Measure, evaluate, and possibly reformulate
Recap of Understanding Customers
Flow Strategies Online
4 Shopping Strategies
Directed buying
Search/deliberation
Hedonic browsing
Knowledge building
Visual Information & Website Design
What are your Internet Marketing Goals?
Get consumers to purchase?
Spread a message?
Obtain consumer information?
Increase consumer loyalty?
Decrease distribution costs?
How to Increase Likelihood of Purchasing?
Simplify!!!
Engage users
Action points
Case: Big Skinny
Case Summary
Go Over Big Skinny’s Options
Keywords Review
What to do with the 4,000 orders?
22
Big Skinny’s Options (Pros/Cons)
Traditional Display Ads
Remarketing Display Ads
PreRoll Ads
Affiliate Marketing
Sponsored Search
Organic Search
Email Marketing
Voucher Coupon Sites
Social Media
Online Distributors
Interactive Content
Offline Activities Driving Online Traffic
Overview of Different Types of Internet Ads: Display Banner Ads
Banner Ad (Horizontal)
Billboard
Banner Ad (Vertical/Square)
Overview of Different Types of Internet Ads: Display Banner Ads
Click-through rate typically between 0.1-2.0%
Pay by CPM (cost per thousand impressions)
Good to generate customer awareness
Not good to generate conversion to sales
15 Alarming Stats About Banner Ads
1. Over 5.3 trillion display ads were served to U.S. users in 2012. (ComScore) 2. That’s 1 trillion more than 2009. (ComScore) 3. The typical Internet user is served 1,707 banner ads per month. (Comscore) 4. Click-through rates are .1 percent. (DoubleClick) 5. The 468 x 60 banner has a .04 percent click rate. (DoubleClick) 6. An estimated 31 percent of ad impressions can’t be viewed by users. (Comscore) 7. The display advertising Lumascape has 318 logos. (Luma Partners) 8. 8 percent of Internet users account for 85 percent of clicks. (ComScore) 9. Up to 50 percent of clicks on mobile banner ads are accidental. (GoldSpot Media) 10. Mobile CPMs are 75 cents. (Kleiner Perkins) 11. You’re more likely to survive a plane crash than click a banner ad. (Solve Media) 12. 15 percent of people trust banner ads completely or somewhat, compared to 29 percent for TV ads. (eMarketer) 13. 34 percent don’t trust banner ads at all or much, compared to 26 percent for magazine ads. (eMarketer) 14. 25-34-year olds see 2,094 banner ads per month. (ComScore) 15. 445 different advertisers delivered more than a billion banner ads in 2012. (ComScore)
Source: Digiday (2013)
Example of Poor Display Ads (notice was on a baby naming website!)
Is An Online Ad Still An Ad If Nobody Saw It?
Problem:
31% of online impressions are never viewed
Top-of-page placements command highest prices, yet not always optimal
What is the solution:
“Viewable” impressions?
What do you suggest?
How to do Banner Ads?
“Easier” Methods
Google AdWords
Programmtic Buys: “Auction” like bidding; can be across platforms (multiple websites)
Doubleclick (Google)
Taboola
UnRuly
MSN AdCenter
Rubicon Project Exchange
Get Ads on Your Website
How to Measure and Evaluate
Measure?
Search, click frequency, awareness
Evaluate?
Compare with last year
Compare with normal displayer
Overview of Different Types of Internet Ads: ReMarketing
Source: limabean.co.za
Overview of Different Types of Internet Ads: ReMarketing
Video explanation (for FB, Twitter, Google, etc.)
Allows you to show ads to users who've previously visited your website as they browse the Web
“Reminds” users of your products but not too annoying
More effort required
Can use “easy” tools from Google AdWords, AdRoll, Addictivity, etc.
How to Measure and Evaluate
Measure?
Evaluate?
Overview of Different Types of Internet Ads: Pre-Roll Ads
Overview of Different Types of Internet Ads: Pre-Roll Ads
Capture user attention
Can be considered annoying as customers want to “just get to the website”
Similar in spirit to full page ads in magazines
How to Measure and Evaluate
Measure?
Evaluate?
Overview of Different Types of Internet Ads: Sponsored Website Takeover
Overview of Different Types of Internet Ads: Sponsored Website Takeover
Very visible and catches consumer attention
Costs extra
Need to find good fits
Users may just ignore
How to Measure and Evaluate
Measure?
没讲
Evaluate?
没讲
Overview of Different Types of Internet Ads: Affiliate Marketing联盟营销 (NOT PAYING FOR INFLUENCERS!)
Source: dmcaffiliateconsulting.com
Overview of Different Types of Internet Ads: Affiliate Marketing
If properly done a recommendation type agent “suggests” links
But cheap way is just to buy link on website
Pay by commission if users click on link
How to Measure and Evaluate
Measure?
Evaluate?
Overview of Different Types of Internet Ads: Search Engine Marketing (Organic and Sponsored Search)
Keyword
Organic search results
2
3
4
5
6
1
Paid search results
Rank
What is Search Engine Marketing?
45
Prices per click across industries and countries (April 2011)
| Germany | France | UK | Italy | Spain | US | Average | |
| Consulting (B2B) | 2.32€ | 0.94€ | 2.22€ | 0.71€ | 1.18€ | 2.79€ | 1.69€ |
| Finance/Insurance | 5.37€ | 4.70€ | 6.51€ | 2.49€ | 2.27€ | 2.11€ | 3.91€ |
| Health | 0.72€ | 0.67€ | 1.10€ | 0.44€ | 0.14€ | 1.45€ | 0.76€ |
| Household Electronics | 0.69€ | 0.77€ | 1.35€ | 0.62€ | 0.74€ | 1.34€ | 0.92€ |
| Real Estate | 0.86€ | 0.99€ | 1.16€ | 0.42€ | 0.41€ | 2.17€ | 1.00€ |
| Beauty | 0.96€ | 0.76€ | 1.41€ | 0.47€ | 0.90€ | 1.23€ | 0.96€ |
| Automotive | 0.87€ | 1.21€ | 1.95€ | 1.09€ | 0.95€ | 1.47€ | 1.26€ |
| Fashion | 0.70€ | 0.47€ | 0.95€ | 0.40€ | 0.39€ | 1.19€ | 0.68€ |
| Multimedia | 0.69€ | 0.88€ | 1.75€ | 0.61€ | 0.62€ | 0.62€ | 0.86€ |
| Travel | 1.32€ | 0.71€ | 1.52€ | 0.67€ | 0.66€ | 2.05€ | 1.15€ |
| Search | 0.58€ | 0.46€ | 2.03€ | 0.29€ | 0.26€ | 1.80€ | 0.90€ |
| Telecommunication | 2.36€ | 2.11€ | 7.65€ | 2.19€ | 2.58€ | 2.99€ | 3.31€ |
| Leisure/Tickets | 0.33€ | 0.67€ | 1.25€ | 0.33€ | 0.64€ | 1.58€ | 0.80€ |
| Internet Services | 2.94€ | 2.34€ | 8.57€ | 1.71€ | 2.63€ | 9.29€ | 4.58€ |
| Advertising (B2B) | 1.41€ | 1.28€ | 3.63€ | 0.94€ | 0.98€ | 4.61€ | 2.14€ |
| Average | 1.47€ | 1.26€ | 2.87€ | 0.89€ | 1.02€ | 2.45€ | 1.66€ |
Lilienthal, Markus / Skiera, Bernd (2011), Decomposing the Effect of Increases in Search Advertising Expenditures on Prices-per-Click and Number of Clicks, Working Paper
46
Cost per Click and Conversion Rates
Average price per click in US:
$3.54
Average conversion rate in US:
1%
Google Analytics Benchmarking Newsletter, July 2nd, 2011
47
Updated Statistics (not as pretty earlier tables/figures)
Australian Benchmark Report (via Results 2 Day)
Quick Overview on How Search Engines Work
“Spiders” crawl through the web based on webpage index
Immense size of indexed webpages (like over 20 billion)
Search results are ranked by complex algorithms
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Search Engine Marketing Overview: Main Search Engines
Main Search Engines:
Baidu (China)
Only 0.6% of 1st page search results are the same across main search engines (Queensland University of Technology and Pennsylvania State University 2007)
So lets check them out!
Alexa: free search engine marketing analytic tool
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Company Return from Consumer Searches
Response rates for customer-initiated contacts (e.g., search terms, facebook pages, etc.) are projected to be 15 times higher than traditional firm-initiated contacts (e.g., advertisements, emails, etc.) (Sarner and Herschel 2008)
Broad searches lead to more return visits whereas narrow searches do not (Rutz, Trusov, and Bucklin 2011)
Overview of Different Types of Internet Ads: Organic Search
No cost to user
“Natural” location on search page
Search Engine Optimization (SEO) techniques used to improve location
Harder to track but long-term is more effective (by 4.5 times in one study!)
Organic Search: Search Results
The Golden Triangle
Most consumers stop looking after 5th result
Search & Research
50+% of searchers re-search after initial search
Source: MSN (2009)
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Organic Search: Search Engine Optimization Overview
Search Engine Optimization should consider:
How different search engines work
Google example: PageRank considers “500 million variables and 2 billion terms”
However search engine algorithms change somewhat frequently
The search terms or keywords typed into search engines
The search engines preferred by target audience
Organic Search: Search Engine Optimization Advice
How to improve your ranking?
Organic Search: Search Engine Optimization Advice
Accurately describe the page's content
Create unique title tags for each page
Use brief, but descriptive titles
Make use of the "description" meta tag
Improve structure of URLs
Use words
Create a simple directory structure (should be different for search engines than what users see)
Naturally flowing hierarchy
Don’t use “Black Hat” SEO methods
See Google advice (readings and online)
Source: Search Engine Land (2012)
How to Measure and Evaluate
Measure?
Evaluate?
Overview of Different Types of Internet Ads: Sponsored Search
Cost per click with “bided” keywords
Location based on combination of bid and popularity
Allow maximum budget per day
Easily traceable and allows short-term alterations
Search engine (search network) and non-search engine (display network) options
Sponsored Search
Exact specifications on keywords
Demographics
Locations
VERY “long-tail” in keywords
Only a few words are truly profitable
“Metric myopia” often an issue
Not all users will immediate convert from original click on search
Google AdWords is dominant player
Sponsored Search Benefits
Easy to quantitatively gauge impact!
Budget and traffic estimators before conducting ads
Can easily experiment, change, etc.
Improves perceived quality of brand
Can enter consideration set or “Golden Triangle”
Quality still matters b/c search providers do not want to provide customers bad experiences
Dynamic Pricing in Sponsored Search Engine Marketing
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Position Paradox in Sponsored Search Advertising
Reputed sellers such as Zales and Tiffany are located below lesser-known sellers such as Adiamor.com, Brillance.com and B2CJewels.com
This pattern occurs consistently for many keywords, and is verified in larger-scale data
Superior-quality sellers can have an incentive to position themselves lower in the list of sponsored ads compared to inferior-quality sellers
Why?
low
quality
high
quality
Measure and Evaluate: Make Sure to Understand your Goals!
How to Measure and Evaluate
Measure?
Evaluate?
Overview of Different Types of Internet Ads: Email Marketing
Offers a relatively cheap, easy, and effective marketing technique
$40 in profits for every $1 invested (DMA 2011)
2nd biggest influence in driving customers to a business’ website (ForeSee 2010)
39% of executives believe email is best performing advertising channel (Datran Media 2010)
4 points increase in consumer satisfaction score when CRM increased customer knowledge (Mithas, Krishnan, and Fornell 2005)
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Overview of Different Types of Internet Ads: Email Marketing
Treat new customers like a “first date”
Sender (From)
Subject
First line of email
Provide personalized service
Follow-up with relevant offers
Request feedback
Entice readers to read more on your site
Integrate with other marketing mix activities
Email Content
What makes you look at a company email?
Need to catch consumer attention but not sound like spam
Sender (name and email address)
Subject (subject line)
Content
Greeting of name (Hi, Dear, etc.)
First line of actual content
Few images
Most get blocked
Too many images is an indicator of spam mail
Reasons for Email Marketing: Why is it so effective?
Allows a business to target customers on products/communications they care most on
Allows targeted communications to customers that leads to increased sales, loyalty, and awareness
How to Measure and Evaluate
Measure?
Evaluate?
Average Email Opening / Click-through Rates
Source: Smart Insights 2014
DEMOGRAPHIC RECAP
GEOGRAPHIC RECAP
SEGMENTATION RECAP
Example of Email Results
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Landing Page: where customers go after clicking your ad
Needs to tie in with customers and goals!
Big Skinny’s Options (Pros/Cons)
Traditional Display Ads
Remarketing Display Ads
PreRoll Ads
Affiliate Marketing
Sponsored Search
Organic Search
Email Marketing
Voucher Coupon Sites
Social Media
Online Distributors
Interactive Content
Offline Activities Driving Online Traffic
Big Skinny’s Keywords Review
What to do with Big Skinny’s 4,000 orders?
What does this mean?
Proves customers willing to buy online
What legal/ethical obligations does Big Skinny have
How can Big Skinny actually benefit on these 4,000 orders?
Try to encourage brand loyalty
Ensure customers aren’t too unhappy so won’t complain
Quiz Logistics
Quiz starts at 5:05pm
Material includes all lecture and tutorial material (incl. this morning) and readings
Tutorial will end at 3:30 to allow for time to study
Bring pencil to fill out exam form
MUST turn in quiz instruction sheet as will have a write-in question there
Nothing will be allowed on desk
