online marketing tools

ADVANCED SEGMENTATION
DIRECT MARKETING = ONE-TO-ONE RELATIONSHIP
ONLINE – NOT NEW METHOD, BUT PUREST FORM OF
DIRECT MARKETING
TWO THINGS CHANGED:
– ABILITY TO EXPERIENCE BRAND MESSAGE DYNAMICALLY
– ABILITY FOR CUSTOMERS TO CO-CREATE (REACT,
INFLUENCE)

MARKETER CAN TAKE ADVANTAGE OF DIRECT MARKETING
RELATED ONLINE TOOLS:
–
–
–
–
–
–
–

PAID SEARCH,
NATURAL SEARCH,
RETARGETED AND TRADITIONAL DISPLAY,
SOCIAL,
EMAIL,
AFFILIATES
AND SITE OPTIMIZATION.

PURCHASE FUNNEL
THE PURCHASE FUNNEL IS A USEFUL ORGANIZATIONAL
CONCEPT, USED TO SEE WHERE A CONSUMER IS ON THEIR PATH
TO MAKING A DECISION.

THIS IS ESPECIALLY USEFUL IN DIGITAL MARKETING WHERE IT CAN BE EASIER TO TRACK THE
PROGRESS OF A USER THROUGH THE FUNNEL AND INTERACT WITH HIM APPROPRIATELY.

FOR THOSE IMMERSED IN eCOMMERCE AND eBUSINESS, IT CAN BE EASY TO
FORGET THAT THE VAST MAJORITY OF PURCHASES STILL TAKE PLACE OFFLINE –
MORE THAN NINE OUT OF 10. BUT IT’S CRUCIAL TO REMEMBER THAT FOUR OUT
OF 10 PEOPLE PREFER TO ROPO – RESEARCH ONLINE, PURCHASE OFFLINE.

SOURCE: MCKINSEY GLOBAL

IN
2008,
TOTAL
E-COMMERCE
RELATED
SALES
IN
USA
(MANUFACTURING, WHOLESALE, RETAILS AND A SELECT SET OF SERVICES) WERE
$3.7 TRILLION. OFFLINE SALES WERE $18.7 TRILLION. THEREFORE TRANSACTIONS
USING SOME SORT OF ONLINE CHANNEL ACCOUNTED FOR JUST OVER 16
PERCENT OF ALL SALES. NOT SURPRISINGLY, THE ONLINE CHANNEL IS GROWING
FASTER: NOMINAL E-COMMERCE SALES GREW BY OVER 120 PERCENT BETWEEN
2002 AND 2008, WHILE NOMINAL OFFLINE SALES GREW BY ONLY 30 PERCENT. AS
A GREATER FRACTION OF THE POPULATION GOES ONLINE—AND USES THE
INTERNET MORE INTENSIVELY WHILE DOING SO—E-COMMERCE’S SHARE WILL
ALMOST SURELY RISE
SOURCE: US Census

– BEFORE WE JUMP IN WITH ALL THE EXCITING NEW TOOLS AVAILABLE, LET’S
TAKE A STEP BACK AND THINK ABOUT WHAT YOU WANT TO ACHIEVE.
– “FACEBOOKING, TWEETING, BLOGGING IS EASY – LET’S DO IT”
– JUST BECAUSE YOU CAN – DOES NOT MEAN YOU SHOULD
– LIKE ANY FORM OF MARKETING, YOUR STARTING POINT SHOULD BE YOUR
MARKETING AIMS AND OBJECTIVES, THEN IDENTIFYING YOUR COMMUNITY
AND WHERE THEY HANG OUT, THEN YOU CHOOSE APPROPRIATE TOOLS TO
REACH THEM.

ONLINE MARKETING DOES A LOT OF THE SAME THINGS THAT TRADITIONAL
MARKETING DOES – IT JUST DOES THEM MORE CHEAPLY AND EFFECTIVELY WITH A
GREATER REACH. IT DESCRIBES WHICH MARKETING METHODS TO USE AT WHICH
STAGE.

MARKETING TOOLS - DEFINITION

THE TECHNIQUES AND MATERIALS USED BY THOSE WHO ARE
INVOLVED IN THE PROMOTION OF GOODS AND SERVICES.

INTERNET MARKETING TOOLS
1. E-MAIL MARKETING
2. SOCIAL MEDIA MARKETING (will be discussed in depth on
class of 05/14)

3. ONLINE ADVERTISING: AFFILIATE MARKETING +
DISPLAY ADVERTISING
4. MOBILE MARKETING
5. SEARCH ENGINE MARKETING (presentations by students)
6. PUBLIC RELATIONS (will be discussed in class of 05/28 together
with ethical, legal issues of the marketing)

1. EMAIL MARKETING
A FORM OF DIRECT MARKETING THAT USES ELECTRONIC MEANS TO DELIVER COMMERCIAL
MESSAGES TO AN AUDIENCE.
WHY?
– COST EFFECTIVE
– MEASURABLE
– TARGETED AND CUSTOMISABLE
2010 SURVEY - 39.4% OF MARKETING PROFESSIONALS SAID THAT EMAIL MARKETING WAS THEIR
STRONGEST PERFORMING CHANNEL IN 2009; THAT’S THE HIGHEST RESPONSE, BETTER EVEN
THAN SEARCH MARKETING (23.6%).
RETENTION MARKETING – EMAILS SENT TO EXISTING CUSTOMERS

Source: Datran Media, Fourth Annual Marketing & Media Survey, 2010.

OUTCOMES
– EMAIL MARKETING IS A TOOL FOR BUILDING RELATIONSHIPS WITH
BOTH POTENTIAL AND EXISTING CUSTOMERS.
– IT SHOULD MAXIMISE THE RETENTION AND VALUE OF THESE
CUSTOMERS, ULTIMATELY LEADING TO GREATER PROFITABILITY FOR
THE ORGANISATION AS A WHOLE.
– A TARGETED, SEGMENTED EMAIL DATABASE MEANS THAT A BRAND
CAN DIRECT MESSAGES AT CERTAIN SECTORS OF THEIR CUSTOMER
BASE IN ORDER TO ACHIEVE THE BEST RESULTS.

CASE STUDY: FACEIT
FACEBOOK PROMOTE POST VS EMAIL MARKETING
Why it is a good
comparison?
• Both methods
require to build
up a list
• Neither method
gives 100% view
or open rate
(email av.
20%, facebook
17%)
• Effectiveness
based on how
good your
content is
• Cost money
MEASURING E-MAIL MARKETING EFFECTIVENESS

Facebook part
• setup the promoted post
to reach 10,000 fans
• cost $100
• graphic on this post linked
to Facebook tab that
required the fan to enter
their email address in
order to receive the
promo code.
• Important because: can
track the
conversions, likes to

Results of Facebook campaign
TOTAL IMPRESSIONS = 6322
TOTAL CLICKS = 183
TOTAL COST = $44.03
AVERAGE CPC = .24 CENTS
TOTAL REQUESTED COUPONS FROM REDEEM COUPON FORM = 11
TOTAL PURCHASES FROM PROMO = 2
TOTAL SALES AMOUNT FROM PROMO = $66
ROI = $22

E-mail marketing campaign
Sent to 10,000 subscribers

RESULTS:
TOTAL SENT = 10,000
TOTAL OPENS LOGGED = 1803
TOTAL CLICKS = 156
TOTAL COST = $75
AVERAGE CPC = .48 CENTS
TOTAL PURCHASES FROM PROMO
= 12
TOTAL SALES AMOUNT FROM
PROMO = $360
ROI = $285

Same was confirmed by Forbes study

TYPES OF COMMERCIAL E-MAILS
– PROMOTIONAL EMAILS: THESE ARE MORE DIRECT AND ARE GEARED
AT ENTICING THE USER TO TAKE AN IMMEDIATE ACTION.
Goals:
make
a
purchase,
download
a
whitepaper, request further information

– RETENTION
BASED
EMAILS:
ALSO
REFERRED
TO
AS
NEWSLETTERS, THESE MAY INCLUDE PROMOTIONAL MESSAGES BUT
SHOULD BE FOCUSED ON PROVIDING INFORMATION OF VALUE TO THE
USER, GEARED AT BUILDING A LONG-TERM RELATIONSHIP WITH THE
USER
long-term goals

Key performance indicators (KPI’s)
OPEN RATE
CLICK-THROUGH RATE
NUMBER OF EMAILS FORWARDED
ROI
NUMBER OF SOCIAL SHARES
DATABASE GROWTH RATE
CONVERSION RATE
DELIVERY OR BOUNCE RATE
EMAILS DELIVERED
BOUNCES: HARD (ADDRESS NO LONGER EXISTS), SOFT (INBOX
WAS FULL)
UNSUBSCRIBES

PINPOINTING THE BEST DAY AND TIME TO SEND A CAMPAIGN IS DIFFICULT
BECAUSE IDEAL SENDING TIMES VARY BETWEEN INDUSTRIES AND LISTS, AND
MAY ALSO DEPEND ON THE SEGMENT OF A LIST YOU'RE SENDING TO.

MORE EMAILS ARE SENT DURING THE WEEK THAN ON WEEKENDS, WITH TUESDAY AND
THURSDAY BEING THE HIGHEST VOLUME DAYS. CHANGING WHICH DAY YOU SEND YOUR EMAILS
MAY IMPROVE YOUR OPEN AND CLICK RATES

MORE LINKS LEAD TO MORE CLICKS. PLACING A PARTICULAR LINK IN YOUR CONTENT
MORE THAN ONCE MAY INCREASE THE NUMBER OF CLICKS FOR THAT LINK.

CHALLENGES
DEVELOPING A
SUFFICIENT
AMOUNT OF
THE REQUIRED
CONTENT IS A
TIME-INTENSIVE
PROCESS THAT
MANY
MARKETERS DO
NOT HAVE THE
RESOURCES TO
PRODUCE.

IBM Email Optimization
ALLOWS TO:
– PREVIEW HOW YOUR EMAILS WILL RENDER ON POPULAR B2B & B2C DESKTOP EMAIL CLIENTS
– SEE EXACTLY WHAT YOUR CUSTOMERS SEE ON POPULAR MOBILE DEVICES AND PLATFORMS
– PREVIEW HOW YOUR EMAILS WILL RENDER ON POPULAR WEBMAIL CLIENTS AND BROWSERS

http://www.youtube.com/watch?v=bbsGkJmMkh8

spamassassin
Can check e-mail’s spam score
Open-source project
In a corporate setting, usually small
to midsized businesses and ISP mail
servers, it runs each email message
through hundreds of tests that
analyze headers, text, and HTML
coding and checks domains and IP
addresses against DNS (define)
blocklists and filtering databases.
When a message flunks a test, it
scores anywhere from a fraction of a
point to multiple points. If a message
scores too many
points, SpamAssassin rejects it.

for professionals, harder to learn, cannot be integrated to
wordpress (have their own log system)

Other useful sites
http://www.campaignmonitor.com/gallery/

http://www.emailsociety.com/

http://myemma.com/features/popular

spam lawsuits
Lawsuit: Kodak Imaging Network, $32,000
“The Federal Trade Commission has charged two internet marketers with violating the CAN-SPAM Act by failing
to offer an opt-out method or honor consumers’ right to opt out of receiving future marketing mailings within
10 days of making the request. One marketer also failed to include a valid physical postal address, which also is
required by the CAN-SPAM Act.”
Takeaway: It’s been said that the Kodak incident was an accident, where someone mistakenly sent a campaign
before it was complete with unsubscribe links and postal address. Simple, innocent mistakes can be costly
Lawsuit: Jumpstart, $900,000
“’These defendants intentionally used personal messages as a cover-up for commercial messages,’ said Lydia
Parnes, Director of the FTC’s Bureau of Consumer Protection. ‘Deceptive subject lines and headers not only
violate the CAN-SPAM Act, but also consumer trust.’”
Takeaway: In your effort to “get the sale” and make people open your emails, it’s important to not get overly
creative with your subject lines to the point of deception.
Free Can Be Expensive
Lawsuit: ValueClick, $2.9 million
“According to the FTC, ValueClick subsidiary Hi-Speed Media used deceptive emails, banner ads, and pop-ups
to drive consumers to its Web sites. The emails and online ads claimed that consumers were eligible for ‘free’
gifts, including laptops, iPods, and high-value gift cards…”
Takeaway: Nothing sells like free. But are there any catches to your offer? If so, using “free” in your subject line
might be seen as deceptive.

The Canadian Tourism Commission was looking to inspire Canadians to explore their country
and keep the large sum of money spent on travel within the country’s borders. The campaign
was a national integrated advertising campaign, incorporating print, magazine, television and
online mediums (Cooper, 2009). The online platform was crucial to the campaign’s success with
all creative executions driving the audience to www.localsknow.ca to upload and share photos
“of their favourite Canadian travel spots and great unknown experiences” (Cooper, 2009). The
creative approach was to focus on the unexpected and through the imagery, experiences and
deals being offered, build pride amongst Canadians and inspire them to explore Canada
(Cooper, 2009).
Email marketing was one of the digital marketing tactics used to promote the competition being
run in conjunction with the campaign. The email was sent to a database of summer campaign
participants and needed to engage with the recipient in such a way that it brought the essence
of the campaign to life, to explore Canada.
DDB Canada / Tribal Vancouver put together a simple email that spoke to the adventurous
nature of the target audience and encouraged the recipients to discover unknown aspects of
Canada. The email was put together so that it was not visible in its entirety within a standard
computer screen and the recipient needed to use the scroll bars to navigate to the end
destination. An innovative email concept which spoke directly to the target audience resulted in
many unknown Canadian destinations being discovered.
This campaign was voted as one of the top within the travel category by Forbes.com. Over the
eight week period that the summer campaign ran, the website had three million page views and
over 55 000 unique visitors per week. According to conversion and tracking
studies, approximately 200 000 Canadians chose to holiday locally as a result of the entire
campaign (Laird, 2009).

questions
1. WHY WAS EMAIL AN IDEAL MEDIUM TO REACH THIS TARGET
MARKET?
2. HOW DID THE ORIGINALITY OF THIS CAMPAIGN CAPTURE
THE ATTENTION OF READERS?
3. HOW IMPORTANT WAS MARKET RESEARCH IN THIS
CAMPAIGN?

http://mediacentre.canada.travel/content/media_releases/canada_program_locals_know

Short history
THE CONCEPT OF TOPIC-BASED WEBSITE COMMUNITIES, AS TYPIFIED
BY IVILLAGE, EPICURIOUS, AND CLASSMATES.COM, AROSE IN THE MID1990S.
PERSONAL BLOGS, WHICH LET USERS POST SHORT ARTICLES OF
INFORMATION AND OPINION, EMERGED AROUND THE YEAR 2000.

PHOTO-SHARING SITES, SUCH AS FLICKR AND PHOTOBUCKET, BECAME
A PART OF THE INTERNET LANDSCAPE IN THE EARLY 2000S.
SOCIAL MEDIA AS WE KNOW IT TODAY WAS BORN IN 2003, WHEN
FRIENDSTER COMBINED MANY OF THESE ONLINE COMMUNITY
FEATURES INTO THE FIRST LARGE-SCALE SOCIAL NETWORKING SITE—
AND INTRODUCED THE CONCEPTS OF “FRIENDS”AND “FRIENDING” TO
THE SOCIAL WEB.

What is social media all
about?
SOCIAL MEDIA CHANNELS CAN BE CATEGORISED AS:
– BOOKMARKING AND AGGREGATING: SOCIAL CURATION AND SHARING
OF CONTENT.
– CONTENT CREATING: USING SOCIAL CHANNELS TO CREATE AND SHARE
CONTENT.
– SOCIAL NETWORKS: SOCIAL CHANNELS THAT ARE BUILT AROUND
SOCIAL PROFILES.

Sharing – key element

1. BOOKMARKING AND AGGREGATING
• SEEING HOW USERS CATEGORISE YOUR CONTENT WILL GIVE YOU
AN IDEA OF HOW YOUR WEBSITE AND COMPANY ARE PERCEIVED
BY YOUR AUDIENCE.
• YOU CAN ALSO USE THESE SERVICES TO SHARE WHAT OTHER URLS
YOUR COMPANY FINDS INTERESTING.

Aggregating sites where users can vote on
content:
– Digg (www.digg.com)
– Muti (www.muti.co.za)
– Reddit (www.reddit.com)

2. CONTENT CREATING
CREATE FREE CONTENT TO SHARE: VIDEOS, IMAGES, ARTICLES:
1. VIDEO SHARING – YOUTUBE, METACAFE, VIMEO, AND
VIDDLER.
–

on youtube over 65 000 videos are uploaded daily

2. WIKI SOFTWARE
3. BLOGGING, PODCASTING, MICROBLOGGING
– 175 000 new blogs created daily
– Over 1.6 million posts updated every day

Youtube and marketing: promotion of content through YouTube; and advertising
next to content on YouTube

3. SOCIAL NETWORKS
Social media implies a democratisation of information, and
requires authenticity and openness from those who would
deliberately use it for marketing. Relying on the connected
Internet, it means that good stories as well as bad stories spread
and stick around
Benefits: potential to go viral, create online community, connect
your brand to appropriate audience, niche targeting, feedback

WHY IT SHOULD MATTER TO MARKETERS?

1. NUMBERS (growth, number of users, etc.)
2. CONNECTIONS (provide an opportunity to
conduct ongoing conversations with your most
loyal customers, which not only helps to
cement customer ties, but also provides
valuable feedback about your company and
products)

Discussion questions
1. WHY IS TRANSPARENCY SO IMPORTANT TO MARKETING
USING SOCIAL MEDIA? HAS THIS HALTED OR ACCELERATED
THE USE OF SOCIAL MEDIA FOR MARKETING?
2. WHAT IS THE DIFFERENCE BETWEEN ADVERTISING USING
SOCIAL MEDIA AND MARKETING USING SOCIAL MEDIA?
WHAT ARE THE BENEFITS OF SOCIAL MEDIA TO EACH, AND
WHAT ARE THE CHALLENGES?

SOCIAL MEDIA IS ALL ABOUT CONVERSATIONS BETWEEN
PEOPLE, AND PEOPLE TALK ABOUT A LOT OF DIFFERENT THINGS.
EVEN IF YOU AREN’T LISTENING, YOUR CUSTOMERS MAY BE
TALKING ABOUT YOU ON FACEBOOK OR TWITTER OR DIGG.
Adobe Social commercial http://www.youtube.com/watch?v=-0o3Fz_urrY

SOCIAL MEDIA METRICS
VOLUME (mentions)
SHARE OF VOICE (comparison of the volume of mentions., # of times
Netflix is mentioned versus Hulu.). Tool: Lithium SMM / Scout Labs

RESPONSE TIME is how long it takes for a company to respond to an
online mention. Customer service. Tool: Radian6

FREQUENTLY USED WORDS are the words used in conjunction with
your brand. Buzzgraph.

REACH is the number of people who see a particular keyword or phrase.
This value is an attempt to measure social media using traditional media
metrics and terms like impressions and uniques. Tools: Tweetreach

SENTIMENT is the feeling or emotion of a particular mention. It is a
qualitative measurement. Why bother? Sentiment puts quantitative
metrics like volume and share of voice in context. Tools:
Attensity360, Lithium SMM/Scout Labs (Quotes)

INFLUENCE is who or what is driving actions, including purchasing

TOOLS
1. Platform based tools
Facebook Insights, YouTube Insight, Twitter Analytics

2. Social media filtering, monitoring and
measuring tools:
– FREE
– PAID

FREE TOOLS
1. BackType (www.backtype.com) - monitors how users are engaged with specific websites.
Enter a URL to list the total number of comments found, display individual comments, and
display the top “influencers” (commenters) about the site.
2. BoardReader (www.boardreader.com) - search engine for web forums and message boards.
3. BoardTracker (www.boardtracker.com)—Another search engine forweb forums and message
boards.
4. IceRocket (www.icerocket.com)—A search engine primarily for blogs and blog posts but can
also be used to search Twitter and MySpace.
5. Hootsuite (www.hootsuite.com)—A full-featured tool that, among other things, lets you track
mentions of your company or brands across multiple social media.
6. SocialMention (www.socialmention.com)—A search engine for blogs and most of the major
social media sites, including Facebook, Twitter, Digg, Reddit, and StumbleUpon.
7. Technorati Search (www.technorati.com/search/)—One of the oldest and best-respected
blog search engines.

UberVu
For big companies. Is great for measuring sentiment
surrounding a brand. It has an intuitive interface, can
track sentiment over time and is split into a free option
and paid for. The paid for option provides deeper insights.

PAID TOOLS

Visible Technologies
They have two main products TruCast, for social media
community analysis, and TruView, for brand reputation
monitoring and defense.

Buzzlogic
Focused on marketers and PR people, BuzzLogic provides
product feedback and readership statistics and enables
relationship building with influential bloggers and
reLevant product tracking. “BuzzLogic insights” focuses on
engaging with influencers in specific industries.

Brands Eye
Brands Eye focuses on offering services to bloggers for
$1/ month and small businesses for $95/ month. They track
online mentions and track reputation.

http://www.youtube.com/watch?v=x4aibcZBFIw

1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

12.
13.

Yahoo Pipes
Google Trends
Google Insights – Compare search volume patterns across specific
regions, categories, and time frames.
Wordtracker Keywords – Displays average daily search volume of a given
keyword or phrase.
Yahoo! Keyword Tool – Displays search volumes for specific keywords
and phrases for previous month’s search data.
Facebook Lexicon – Displays volume of wall postings for specific term(s).
Similar to Google Trends. Not great with obscure terms.
Google Keyword Tool – Generate keyword ideas for related keywords
and search volumes.
Serph – Track buzz in real time
Google Trends – shows amount of searches and google news stories
Trendpedia – Create charts showing the volume of discussion around
multiple topics. Generates cool graphs.
BlogPulse Trends – Compare the mentions of specific keywords and
phrases in blog posts (LEFT vs. RIGHT)
Omgili Charts – Omgili Buzz Graphs let you measure and compare the
Buzz of any term. Mostly from review sites/forums.
HowSociable? – A simple, free, tool that can measure the visibility of
your brand on the web across 22 metrics

ONLINE ADVERTISING
PAID DISPLAY OF YOUR PROMOTIONAL MESSAGE
WHY IT IS DIFFERENT FROM TRADITIONAL ADVERTISING?
CUSTOMERS CAN ACT ON IT + TRACKING

CLASIFFICATION:
1.
2.
3.
4.
5.
6.

E-mail advertising
Display advertising
Affiliate marketing
Behavioral targeting
Semantic advertising
Social network advertising

CHANGES IN THE MARKET SHARE OF ADVERTISING FORMATS IN
WESTERN EUROPE (IN € MILLIONS)

DISPLAY ADVERTISING
USE OF THE INTERNET AS AN ADVERTISING MEDIUM WHERE PROMOTIONAL
MESSAGES APPEAR ON OTHER WEBSITES AND/OR SEARCH ENGINE RESULTS
PAGES. CREATES MORE FAMILIARITY, AWARENESS AND INCREASES NAME
RECOGNITION.

+
•
•
•

•
•

wide audience with small budget
PPC ad campaigns only require that
you pay for advertising when
someone clicks on the link in the ad.
Effective display advertising can
produce immediate results.
Even if users do not click on your
ads, the advertisements can create
and increase brand awareness.
easily tracked and monitored

• people are unlikely to click on
these ads
• risk associated with doing Pay Per
Click advertising as your
competitors can click on your
advertisement without purchasing
anything

DISPLAY ADVERTISING: variety
EXPANDABLE BANNERS - which reveal
additional panels when the mouse
cursor rolls over the banner.
VIDEO ADVERTISING - which can be within an
ad format and streamed to create a
richer user experience. In-video
advertising is also becoming more
common.
FLOATING ADVERTISEMENTS - which move on
the web-page, without altering the
page itself
TEAR-BACKS - which 'peel back' when the
cursor is rolled over one corner of a

ANALYSIS OF CAMPAIGN EFFECTIVENESS ON BRANDING
COMPONENTS ACCORDING TO THE FORMAT USED – EMEA, 2009

METRICS
1.

PLANNING METRICS
– Number of ad impressions - how many times the ad will be shown.
– Cost per Mille - the cost of showing the ad per 1000 times.
– Cost per Click - total campaign cost divided by number of click
throughs.
– Cost per Action - total campaign cost divided by number of successful
actions.
– Click through rate (CTR) - number of clicks divided by number of
impressions.

2.

PERFORMANCE METRICS
– Brand awareness - any increase in search activity resulting from
campaign
– Engagement metrics - amount of interaction with rich media
advertisements
– Direct response metrics - CTR

INDICATORS USED BY ADVERTISERS IN THE USA TO MEASURE THE
PERFORMANCE OF THEIR ONLINE MARKETING CAMPAIGNS

PAY PER CLICK - PPC
The price is based on the number of clicks your ad receives. In other
words, you pay for this ad only if a person clicks on the ad. A typical
price range is 5 cents to $1 per click. Costs for advertisements via
search engines are pay per click (i.e. contextual advertising). The
amount you pay per click will depend on how targeted the keyword is
and the competition for that keyword. The ads are ranked based on
how much you pay to advertise on each search phrase. However, more
targeted ads usually result in more sales.

COST PER IMPRESSION (CPM).
Costs are based on the number of times the advertisements are
viewed. The M in the acronym is the Roman numeral for a
thousand, and as such it is also referred to as Cost per Mille. Banner
ads are generally sold by CPM, but they can also be sold by pay per
clicks. A $50 CPM means you pay $50 for every 1000 times your ad
appears.

(CPA) COST PER AQUISITION

AVAILABLE TOOLS
GENERATING REVENUE
Google AdSense, AdBrite, Yahoo Publisher
matches ads to your website’s content, and you earn money
whenever visitors click on the ads.
TRACKING ONLINE ADVERTISING
Web Trends, Google Analytics , Microsoft
adCenter, AWStats, Yahoo Site Explorer

AFFILIATE MARKETING

Chaffey (2009) defines affiliate marketing as “a commission based arrangement where referring
sites (publishers) receive a commission on sales or leads by merchants (retailers or other
transactional sites)”.

ACTION AND REWARD
COST PER ACTION (CPA)
a fixed commission for a particular action

COST PER LEAD (CPL)
a fixed commission for a lead (i.e. a potential sale)

REVENUE SHARE (ALSO CPS OR COST PER SALE)
an agreed percentage of the purchase amount is
awarded

COST PER CLICK (CPC)
this forms a very small part of the affiliate
marketing mix, and the merchant pays a fixed amount
for each clickthrough to their website

TRACKING – THE LIFELINE OF AFFILIATE
MARKETING
THE KEY TO AFFILIATE MARKETING IS BEING ABLE TO TRACK THE WHOLE PROCESS
FROM POTENTIAL CUSTOMERS BEING SENT TO A WEBSITE THROUGH TO A
COMPLETED ACTION, SO THAT THE MERCHANT IS ABLE TO AWARD THE CORRECT
AFFILIATE WITH THE CORRECT COMMISSION
Specialized tracking software (supported by affiliate network) + affiliate’s own tracking
software
Sending traffic to merchants using URL’s (Universal Resource Locator)

AFFILIATE

MERCHANT’S
SITE

Affiliate sends traffic using links and URL’s

Customer completes
action on merchant site

Links set
cookies in
customers
computer

+

Cookies allow for
software to gather
information needed to
award commission

=

Merchant confirms
action valid

COMMISSION

AFFILIATE TRACKING SOFTWARE COLLECTS INFORMATION (impressions, clicks, conversions) EVEN IF NO ACTION IS COMPLETED -> FOR
PURPOSES OF CAMPAIGN OPTIMIZATION

THE AFFILIATE NETWORK – AFFILIATE FUTURE
THE ID OF THE AFFILIATE (238)
THE ID OF THE MERCHANT (214)
THE ID OF THE PROGRAMME (3897) (A MERCHANT MIGHT HAVE MORE
THAN ONE PROGRAMME ON A NETWORK)
THE MEDIA USED (0)
THE DESTINATION OF THE CLICK

MEASURING EFFECTIVENESS OF THE
CAMPAIGN

WHY THIS IS NEEDED?
• FOR AFFILIATES: AFFILIATES PROMOTE MERCHANTS, INVESTS FUNDS AND
GETS BACK ONLY COMMISSIONS -> WHICH TO CHOOSE, WHERE TO INVEST
• FOR MERCHANTS: OPTIMIZATION -> WHICH BANNERS ARE DOING BETTER?
ETC

AMAZON ASSOCIATES

http://www.youtube.com/watch?v=c-j3VjHxQeQ

MAIN TYPES OF AFFILIATES
PERSONAL WEBSITES
CONTENT AND NICHE SITES
EMAIL LISTS
LOYALTY SITES (POINTS OR CASH BACK OR CHARITABLE DONATIONS)
COUPON AND PROMOTIONS SITES
COMPARISON SHOPPING (SEE ALSO PPC ADVERTISING)
SEARCH AFFILIATES (SEARCH ARBITRAGE)

SOCIAL NETWORKS AND AFFILIATED
MARKETING
YES

NO

Pinterest’s stance is not entirely unusual. While
sites like Twitter and Facebook have generally
allowed link tracking, not all social media services
are friendly to marketers. Reddit, for example, does
not allow short URLs, is unfriendly to affiliate
links, and has evenbanned links from publications
like The Atlantic and Businessweek for alleged
spammy behavior.

OTHER ISSUES TO DISCUSS
• HOW LONG CAN COOKIE LAST?
• AFFILIATE LOCK-IN

WHAT CAN GO WRONG?
MULTIPLE REFERRALS – ONE SALE
Usual practice – most recent referral is
awarded, but some merchants are compensating
their affiliates

COOKIES GETTING A BAD REPUTATION
User deletes cookies because he does not like
how tracking and collecting information sounds.
Limited effect.

PLACING AND ORDER BY ANOTHER METHODS
Looks up on the internet, but places order online.

Remaining forms of online advertising
BEHAVIORAL TARGETING
Online advertising can be targeted based on a user's
online behavior. This practice is known as behavioral
targeting. For example, if a user is known to have
recently visited a number of automotive shopping /
comparison sites based on clickstream analysis enabled
by cookies stored on the user's computer, that user can
then be served auto-related ads when they visit
other, non-automotive sites.

SEMANTIC ADVERTISING
Semantic advertising applies semantic analysis techniques
to web pages. The process is meant to accurately
interpret and classify the meaning and/or main subject of
the page and then populate it with targeted advertising
spots. By closely linking content to advertising, it is
assumed that the viewer will be more likely to show an
interest (i.e., through engagement) in the advertised
product or service.

SOCIAL NETWORK ADVERTISING

mobile engagement
WHY?
PEOPLE CARRY AROUND PHONES AT
ALL TIMES
PLATFORMS:

OLD SCHOOL:
SMS, MMS, BLUETOOTH
NEW: MOBILE APPLICATIONS, QR
CODES, AUGMENTED REALITY AND
GEO-TARGETING.

sms
BY 2013 THIS NUMBER IS EXPECTED TO EXCEED 10 TRILLION
(MOBITHINKING 2011).
–
–
–
–

INFORMATION
REMINDERS
SMS CHAINS
AUTOMATED CONFIRMATIONS

WHY?
– EASY TO ACTIVATE SERVICES
– CHEAP TO ACCESS INFORMATION
– BUT IT CAN BE INVASIVE IF ABUSED

LOCATION BASED SERVICES (LBS)
BY DEFINITION LOCATION-BASED MEDIA DELIVERS CONTENT TO A USERS
MOBILE DEVICE DEPENDING ON WHERE THEY ARE LOCATED. IT IS A NEW WAY
TO DELIVER A TARGETED MARKETING MESSAGE TO USERS IN A SPECIFIC
GEOGRAPHIC LOCATION.

Used in marketing for:
Deals and Special Promotions
Rewards Based on Frequent Check-ins
Product or Service Locators

LOCATION-BASED MOBILE APPLICATIONS
On Foursquare: Create to-do lists
for users to explore around your
area. And if possible, work with
Foursquare to create a custom
badge for your venue or event.

LOCATION-BASED COUPON SITES

Other Location Based Deal Sites

Yowza
Townhog (limited cities)
SocialBuy (limited cities)
HomeRun (limited cities)
WeGiveToGet (limited cities)
MyDailyThread (limited cities)
Molo Rewards (limited cities)
BonLocal (limited cities)
YouSwoop (Chicago)
ScoutMob (Atlanta)
Groop Swoop (San Francisco)

MOBILE GAMING
• 34% OF THE TOP 100 GROSSING APPS IN THE APP STORE USE
THE FREEMIUM MODEL
• ANGRY BIRDS MAKES $6 MILLION PER MONTH PURELY FROM
ADS

AUGMENTED REALITY
takes computer graphics
and superimposes them
into ‘reality’
3D images or simply
information tags about a
location

Online social networks have extended their presence to mobile
phones:
– http://m.myspace.com/
– http://m.facebook.com/
– http://m.twitter.com/

Facebook: 1.06 Billion Monthly
Active Users, 680 Million Mobile

MOBILE MARKETING TOOLS
GoMo. you can create a free mobile site directly from
howtogomo.com using a tool powered by DudaMobile. This doit-yourself site builder, customized specifically for GoMo users,
easily converts regular websites into mobile-friendly sites in five
simple steps. And it allows you to add features like a click-to-call
button, mobile maps and Google AdSense. Sites that are created
with the GoMo-DudaMobile tool will be hosted free for one year.
GoMoMeter to analyze your site’s mobile user experience.

• AdSense helps to manage ad units across mobile and
desktop, and they can accomplish powerful cross-platform
tasks like unified revenue reporting broken out by
desktop, tablet, and mobile.
• adMob Case study:
http://www.youtube.com/watch?feature=player_embedded&
v=3RLGVjLX-vA

SUCCESS STORIES
Heineken
recognized that many people access their mobiles while watching
TV and developed a real-time game around the Champions
League. http://www.youtube.com/watch?feature=player_embedd
ed&v=XP5yySEZub8

Lynx
Complete the ad. A fun campaign from Axe in Uruguay (more
commonly known as Lynx) that used mobile marketing in a new
way to engage its consumers, while keeping it completely inline
with its male target audience and the company’s cheeky approach
to advertising.

COMPARING ONLINE MARKETING TOOLS
A lot of online tools claim to make you a better, faster marketer. Many also
promise to help you easily connect with your customers. So, how do you
choose? The trick is to pick online marketing tools that not only help you
reach your customers, but also are really easy for you to use
Here are the criteria I use to assess marketing tools for entrepreneurs:
– Ease-of-use: Is the tool easy to use and implement?
– Relationship builder: Can you build a database with the tool and--at the same time-reach, strengthen and build relationships with customers more quickly?
– Quick online campaign-tracking capabilities: Can you analyze what you've sent to
customers and quickly find out if your customers are clicking through your e-mail
campaigns?
– Professional e-mail marketing templates: Are there professional campaign
templates that allow for e-mail and direct-mail capabilities, enabling you and your
business to look marketing savvy?
– Cost-effective: Are costs affordable, averaging less than $30 per month?

http://www.marketthisbook.com/pdf/Entrepreneur_Online_Marketing_Tools_Comparison.pdf

Case study: The Best Job in the World

This unusual campaign pushed an idea that seemed too
good to be true: an opportunity to “housesit the
famously beautiful islands of the Great Barrier Reef” for
half a year, with a home base on Hamilton Island.
Anyone could apply by simply submitting a video
application for public consideration.
The interest was overwhelming, with the submission
website crashing only two days after the launch of the
campaign due to excessive visits and video uploading.
Tourism Queensland and SapientNitro also had a strong
presence across social media spaces, including
Facebook, YouTube, Twitter and MySpace.

•

•
•
•
•
•
•

Besides being lauded as the “greatest PR stunt of all time”, the campaign also
returned some impressive figures (Tourism Queensland): Estimated media
coverage of over AUD$400 million. This included global news coverage from CNN
stories, BBC documentaries, Time magazine articles and everything in between.
The campaign reached an audience of approximately three billion people through
media coverage.
34 684, one minute video job applications we submitted from 197 countries. It’s
safe to say that at least one person from every country in the world applied.
Over 475 000 votes for Wild Card applicants were received.
Web stats showed 8 465 280 unique visits, 55 002 415 page views with an average
of 8.25 minutes spent per visit.
Overall, it’s safe to say that the campaign was a success (except for that one little
sting) and it even went on to win numerous awards at the Cannes Lions
International Advertising Festival

1. Why do you think this campaign garnered such impressive media coverage?
2. How did Tourism Queensland and SapientNitro approach the challenge of
marketing across eight international markets?
3. What role did flexibility play in this campaign?
4. How did the strategy leverage social media as a tool for engagement?

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