Master-Vorlesung Innovationsmarketing 10. Januar Online Marketing - Ein Praxisüberblick -

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1 Master-Vorlesung Innovationsmarketing 10. Januar 2011 Online Marketing - Ein Praxisüberblick -

2 AGENDA Online-Marketing Relevance of Online-Marketing Definition & Overview Sub-Disciplines of Online-Marketing Benefits of Online-Marketing slide 2

3 Internet usage is by far no phenomenon for the youngsters any more more than 70% of the year olds are online Internet Usage / Penetration split by age groups (Germany) in % 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% years The relevant lucrative target group (14-49 years) for advertisers is already online! Non-Internet Users (in %) Internet Users (in %) Source: AGOF e.v. / internet facts , n= slide 3

4 Internet ad spendings have almost surpassed ad spendings in Newspapers in 2010 Split of Ad Spendings by Media Vehicle (FC 2010) 18,8% 5,0% 12,9% 3,5% 1,7% 38,7% TV Newspapers Internet Consumer Magazines Radio Billboard/Poster Trade Journals In 2010 the internet increased its share on total ad spendings again and almost surpassed Newspapers for the first time! 19,5% Source: OVK Online Report 2010/02 (Forecast 2010 incl. SEM and Affiliate-Networks, but not Social Media) slide 4

5 Over the past 5 years internet ad spendings have significantly increased, while Consumer Magazines have lost the most Development of Ad Spendings among Media Vehicles 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2,1 3,1 1,6 3,7 1,7 3,5 5,8 5,3 5 4,4 19, ,5 18,8 13,9 12,9 21,4 19,5 40,2 37,8 38, Trade Journals Billboard Radio Internet Consumer Magazines Newspapers TV While almost all media vehicles lost shares in 2010, only Internet & TV increased The increase for Internet Ad Spendings is round about 13.3% Forecast for 2011 predict the Internet Ad Spendings to overtake Newspaper Ad Spendings the Internet will then be the 2nd strongest media vehicle Source: OVK Online Report 2010/02 (Forecast 2010 incl. SEM and Affiliate-Networks, but not Social Media) slide 5

6 Since 2007 the positive trend of increasing internet ad spendings occurs in all 3 key sub-disciplines (Display, SEM, Affiliate) Development Internet Ad Spendings (in Million EUR) % 24% 28% % 10% 21% % 15% 23% Forecast from OVK predicts an increase to above EUR 5 billion in 2010 (+19% from 2009) Affiliate-Marketing Search Engine Marketing (SEM) Classical Online Ads (Display) Source: OVK Online Report 2010/02 slide 6

7 AGENDA Online-Marketing Relevance of Online-Marketing Definition & Overview Sub-Disciplines of Online-Marketing Benefits of Online-Marketing slide 7

8 Definition of Online-Marketing / Internet-Marketing plain and simple Internet marketing, also referred to as i-marketing, web-marketing, onlinemarketing or e-marketing, is the marketing of products or services over the Internet. * Online Marketing ist eine Form der interaktiven Ausrichtung der Marketing- Instrumente durch den Einsatz vernetzter Informationssysteme (z.b. Telefon, Internet). Mit Online Marketing ist neben der Interaktivität auch die Möglichkeit gegeben, zeitlich synchron die Marketinginstrumente auf die Kundenbedürfnisse auszurichten. ** Internet-Marketing ist der Einsatz der Marketing-Instrumente im Internet. *** The following slides rather focus on Online Advertising (referred to as Online- Marketing) than general Marketing Strategies in the Internet! * Wikipedia.org, Suchwort: Internetmarketing / Online-Marketing, Stand: , ** Gabler Wirtschaftslexikon, Gabler Verlag (Herausgeber), Stichwort: Onlinemarketing, Stand: , online im Internet: *** Marketing (2. Auflage), Jürgen Pesch, UTB Verlag, erschienen: 2010 slide 8

9 Overview on Online-Marketing and its key sub-disciplines Online-Marketing Sub- Disciplines Display Ads Affiliate Marketing SEA & SEO * - Marketing Social Media Marketing Relevant Topics Technical terms / KPIs Banner formats Billing/Pricing Models Performance vs. Branding General market participants & work-flow Billing/Pricing Models Technical Terms Difference between SEA & SEO On-site vs. Offsite Billing/Pricing Models Technical terms / KPIs Definition Relevant Goals Examples General market participants & work-flow Google Adwords & AdSense PUSH PUSH PULL PUSH PULL & PUSH * SEO = Search Engine Optimization; SEA = Search Engine Advertising (in Germany sometimes called SEM = Search Engine Marketing) slide 9

10 Typical value-added chain for an online campaign quite some players that all want to earn money Advertiser (Company X) Ad Agency Media Agency Online Marketer / Ad Network Publisher (Website Y) Initiates advertising Defines communication and marketing goals Contracts ad agency (creative agency) OR Contracts media agency Defines advertising strategy (goals & cost) Develops media mix and plan, creates ad material accordingly Necessary information (e.g. budget, target group, ad strategy, kinds of ads, etc.) is communicated to media agency Filters for adequate ad vehicles Researches cost of ad placement Creates detailed media plan and checks for customer approval Books ad space via publisher, selfserve ad platform or directly with website owner On-going campaign tracking and optimization Direct intermediary between advertiser & publisher Online marketer either have their own web inventory or market inventory from external websites ( ad network) Offer ad space for placement of display ads on different pricing models (CPM, CPC, CPX) slide 10

11 4 typical phases of an online campaign quite comparable to a general advertising campaign 1. Preparation Phase 2. Concept Phase 3. Implementation Phase 4. Running / Optimization Phase Definition of desired target group Research on media usage and information search behavior Development of distinguishing advantages/ benefits argumentation/ USP (if applicable) Observation of competitor campaigns Searching for current trends and topics Definition of KPIs and success drivers Definition of strategic campaign goals Definition of budget scope Development of main theme for online campaign Definition of main topics Conceptualization of meaningful and compact online measures Selection of fitting channels and media vehicles Development of complete campaign mechanics including internal processes (team, company, responsibilities) Planning of Conversion Processes Definition of detailed KPIs for monitoring and campaign optimization Media Purchase Production of necessary online ad material (banners, videos, microsites, etc.) Setup and implementation of necessary tools, services, CMS during campaign to enable optimal editorial workflows Definition of obliging editorial calendar Setup of reporting system/ structure for conversion optimization Definition of process owners Active campaign controlling Monitoring of actual budgets Continuous monitoring and reporting of all KPIs KPI analysis and interpretation to define recommended procedures On-going optimization of campaign performance Analysis and optimization of continuative campaign processes (e.g. Conversion process) slide 11

12 Online Marketing General technical terms & KPIs Terms & KPIs Billing/Pricing Models Traffic: quantities of visitors moving on a web page Unique Visits: every visitor in a certain time period counted only once ( Net Reach ) Visits: every visitor in a certain time period counting multiple visits by same visitor ( Gross Reach ) Impressions: Views generated by visitor flow (PIs = Page Impressions; AIs = Ad Impressions) CTR: Click-Trough-Rate (Clicks/Impressions) Conversion: transformation of traffic into a certain goal (registration, order, sale, etc.) CVR: Conversion Rate (e.g. Clicks to Sales) Tracking: measuring where traffic is coming from, going to often via cookies, code-pixels (MEASURING is KEY in OM!) Frequency Capping: Restriction on the amount of times a specific visitor is shown a particular ad Targeting*: concentrating ad efforts on specific target groups CPM = Cost Per Mille: i.e. payment per AIs CPC = Cost Per Click CPA/CPL = Cost Per Action/Lead: e.g. payment per registered user CPO = Cost Per Order: i.e. payment per Order Rev Share = Revenue Share Display Affiliate Performance Display * Behavioral retargeting, demographic targeting, geographic targeting are all common ways in which advertisers choose to target their banner ads. slide 12

13 AGOF provides statistical data on Online Marketers & Websites (if accredited) Online Marketer* Reach in % (Internet-Users last 3 months) Net-Reach in Million Unique Visitors 1. InteractiveMedia CCSP 62,9 31,85 2. TOMORROW FOCUS MEDIA 60,7 30,74 3. SevenOne Media 53,9 27,3 4. United Internet Media 52,3 26,49 5. IP Deutschland 51,6 26,13 6. ebay Advertising Group 49,9 25,3 7. Yahoo! Deutschland 46,2 23,42 8. Ströer Interactive 45,8 23,22 9. Axel Springer Media Impact 45,4 22, Microsoft Advertising 43,2 21, OMS 39,9 20, G+J Electronic Media Sales 37,7 19, ad pepper media 37,7 19, iq digital 36,9 18,7 15. Unister Media 32,7 16,58 Websites* Reach in % (Internet-Users last 3 months) Net-Reach in Million Unique Visitors 1. T-Online 52,2 26,46 2. ebay.de 46,1 23,34 3. WEB.DE 34,8 17,64 4. Yahoo! Deutschland 30,1 15,26 5. MSN 26,7 13,54 6. gutefrage.net 26,1 13,23 7. VZ Netzwerke 25,8 13,07 8. GMX 25,7 13,04 9. BILD.de 23,5 11, Windows Live 22,3 11, CHIP Online 21,9 11, wetter.com 21,4 10, RTL.de 20,3 10, SPIEGEL ONLINE 18,4 9, N24.de 17,9 9, MyVideo 16,9 8, News.de 15,4 7, ProSieben.de 15 7, mobile.de 14,8 7,5 20. DasÖrtliche 14,8 7,5 * Source: Arbeitsgemeinschaft Online Forschung e.v. (AGOF), Marketer: & websites: (Stats from Jul to Sep 2010) slide 13

14 IVW provides statistical data on different media vehicles (if listed) e.g. Visits / PIs per website category (Nov 2010) Visits* 1,8% 0,4% Editorial Content Page Impressions* 2,7% 0,1% 9,5% 8,5% 46,8% Communication ( , SMS,...) User-generated Content (SNs) 14,0% 7,9% 27,8% 16,1% E-Commerce 17,0% Search Engines, Directories, Information Services 30,9% 16,5% Games ~ 6,6 Billion Visits ~ 55,7 Billion PIs Other * Source: Informationsgemeinschaft zur Feststellung der Verbreitung von Werbeträgern e.v., IVW-website: November 2010 slide 14

15 Branding /Awareness Performance Branding/Awareness vs. Performance: The different pricing models lead to contrary risk allocations Pricing Model CPA Advertiser Publisher CPC CPM Low Medium High Risk slide 15

16 AGENDA Online-Marketing Relevance of Online-Marketing Definition & Overview Sub-Disciplines of Online-Marketing Display Affiliate Marketing SEA / SEO Marketing Social Media Marketing Benefits of Online-Marketing slide 16

17 Display Advertising Definition in the broadest sense display advertising means banner ads Display advertising*: a form [sub-discipline] of internetmarketing. Display advertising appears on web pages in many forms, including web banners. These banners can consist of static or animated images, as well as interactive media that may include audio and video elements Banners**: rectangular forms of advertising that appear on a website and are hyperlinked to the website of the advertiser. Banners can be distinguished by their size and their interaction and functionality potential. Hyperlink AdClick Banner Website Page/Ad Impression (PI/AI) * Wikipedia: ** Translation: Gabler Wirtschaftslexikon, Gabler Verlag (Herausgeber), Stichwort: Banner, im Internet unter: slide 17

18 Banner Overview (IAB*) There are tons of formats, but the IAB is trying to deliver a universal standard Banner Types Format (in Pixels) Medium Rectangle 300 x 250 Square Pop-Up 250 x 250 Vertical Rectangle 240 x 400 Large Rectangle 336 x 280 Rectangle 180 x 150 3:1 Rectangle 300 x 100 Pop-Under 720 x 300 Full Banner 468 x 60 Half Banner 234 x 60 Micro Bar 88 x 31 Button x 90 Button x 60 Vertical Banner 120 x 240 Square Button 125 x 125 Leaderboard 728 x 90 Wide Skyscraper 160 x 600 Skyscraper Half Page Ad 300 x 600 Banner Insights Prices vary a lot per banner type and position on website CTRs vary a lot per banner type, position on website, and graphical layout/animation effects (of course) Brand/Awareness Banner vs. Performance Banner Recommended initial download fileweight between kb Recommended animation length is 15 secs * IAB = Interactive Advertising Bureau, Source: slide 18

19 Banner formats (IAB) Contrary to most people s expectations average CTRs are usually quite low Standard Ad Units*: The following 7 Standard Ad Units (Banners) accounted for approximately 80% of total impressions in 2009 Average Clickrates** Medium Rectangle Rectangle Leaderboard Wide Skyscraper Half Page Ad Button #2 Micro Bar 300x x x90 160x x x60 88x31 * IAB Ad Unit Guidelines 2009 Update ** ADTECH: Klickraten Auf und Ab im Jahr; im Internet: slide 19

20 Banner formats (IAB) Examples (I) Medium Rectangle (300x250) CTR 0,2 %* Wide Skyscraper (160x600) CTR 0,2% * ADTECH: Klickraten Auf und Ab im Jahr; online im Internet: slide 20

21 Banner formats (IAB) Examples (II) Leaderboard (728x90) CTR 0,1 %* Wallpaper (728x90/160x600) CTR 0,76 %* * ADTECH: Klickraten Auf und Ab im Jahr; online im Internet: slide 21

22 Special Display Video Ads: Currently the most common digital video ads are either In-Stream, In-Banner or In-Text * Video Ad Experience In-Stream Video generally played or viewed from a video player In-Banner Video generally displayed in IAB standard banner formats In-Text Video generally user-initiated and triggered by relevant highlighted words in content Core Video Ad Product Linear Video Ads Pre-/Mid-/Post Rolls, Takeovers Non-Linear Video Ads Overlays, Text deliveries, graphical ads Rich Media Rich Media Consumer Ad Experience Ad takes over the full video experience for a period of time Ads running concurrent to video content experience & do not take over the full video experience Video triggered within the banner, often expanding outside of it Video ad delivered when users choose to mouseover relevant words Ad Product Placements Before, between, after (video) content During, over, within video content Within the Web page, generally surrounded by content Identified as a highlighted word found within relevant content Companion Ad Products Text, Banners, Rich Media, Video Player Skins None None * Interactive Advertising Bureau, Source: slide 22

23 Examples of Linear & Non-Linear Video Ads LINEAR VIDEO AD (Pre-Roll) NON-LINEAR VIDEO AD (Overlay) slide 23

24 Smeet Conversion Process: From banner ad to click to registration to verification to entering of product first time Conversion Chain (5 steps) Publisher: jetztspielen.de Advertiser: Smeet - Medium Rectangle Smeet Landing Page: Registration Performance & Cost Calculation Example Campaign Goal: New Registrations Ad Budget: EUR CPM = EUR 1,50 Potential AIs: [=6.000/1,50x1.000] CTR on MR-banner: 0,3% Clicks (to Landing Page) [=0,003 X ] CPC: EUR 0,50 [=6000EUR/12000] 3. Smeet sends registration 4. User needs to click link in e- mail to verify registration 5. User can (finally) enter product CVR(I) to Fill-Out of Form: 20% CVR (II) to -Verification: 80% CVR total: 16% [=0,8 x 0,2] Registrations Cost per Reg: EUR 3,13 Key Question: How much can be earned with each registration? slide 24

25 AGENDA Online-Marketing Relevance of Online-Marketing Definition & Overview Sub-Disciplines of Online-Marketing Display Affiliate Marketing SEA / SEO Marketing Social Media Marketing Benefits of Online-Marketing slide 25

26 Affiliate Marketing the sub-discipline with (probably) the most friendly pricing model for the advertiser Affiliate Marketing*: is a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's own marketing efforts. Examples include rewards sites, where users are rewarded with cash or gifts, for the completion of an offer, and the referral of others to the site. Classical Pricing Models: CPA (CPO/CPL) Affiliate Model with three parties: Merchant: Brand/Seller/Advertiser Affiliate Network (e.g. Affilinet, Zanox, TradeDoubler, Clickbooth, Linkshare, ) offers the platform and connects the merchants & affiliates Publisher/Affiliate - website owner that offers ad inventory Challenge: Scalability * Wikipedia: slide 26

27 Affiliate Marketing Cycle Scalability is a major challenge for most merchants as top affiliates often work with key merchants Merchants/ Merchants/ Advertisers Merchants/ Advertisers/ Advertisers Merchants Affiliate Network Affiliates Affiliates Affiliates/ Publishers Want to advertise with low risk Deliver ad materials (banners, links, landing pages) to affiliate network Offers revenue share / commission or fixed lead per order/sale to affiliates Offers platform and connects affiliates with merchants Takes commission (typically 20-30% of CPA) for this service (sometimes even setup fee) Affiliate Management Offer ad inventory (Often) Optimize arbitrage by buying/ generating traffic cheaper (e.g. via SEA/SEO) than selling it Finally: Optimizing ecpm ( effective Cost-Per- Mille) To optimize chances of working with Top Affiliates active Affiliate Mgmt. is key! slide 27

28 Example for traffic flow in Affiliate Marketing & Performance Calculation Performance & Cost Calculation Example Goal: Selling Sportshoes Avg. Sales Basket per Customer: EUR 50 # of Orders via Affiliates: Monthly Rev via Affiliates: EUR Merchant s Contribution Margin (30%) EUR CPO: EUR 10 Commission for Affiliates: EUR Commission for Affiliate Network (25% of Affiliate Commission) EUR Cost for Inhouse Affiliate Management (e.g. 1 Affiliate Manager, part-time) EUR Profit per Month: EUR [ = EUR 1000] Affiliate Calculation Example: CVR into Order 2,0% Visitors generate Orders CTR on Ad 0,2% 25 Million AIs ecpm: EUR 0,40 [25Mio.AIs/1000=EUR CPM=EUR0,40] * DMC affiliate consulting slide 28

29 AGENDA Online-Marketing Relevance of Online-Marketing Definition & Overview Sub-Disciplines of Online-Marketing Display Affiliate Marketing SEA / SEO Marketing Social Media Marketing Benefits of Online-Marketing slide 29

30 Search Engine basics In Germany Google has a market share of more than 90% A Search Engine is an index-based software that uses specific programs (so-called CRAWLERS) that search through the internet. Everything new and/or updated they stumble upon is listed in their data base. * Millions of websites, but no directory to list all of them Search Engines!!! Google with a market share in Germany of 93%** More than 4 billion search requests per day, i.e., 175 million search queries per hour (Dec2009)*** Search Engine is the core and starting point of internet usage (though Facebook is currently changing this trend) Due to Google s high market share this lecture focuses only on SEA/SEO for Google * see Erlhofer (2006), S. 17, Malaga (2009), S ** see: *** see: BASICS Google is completely text-based, i.e., relevant CONTENT needs to be text, usually HTML-text Flash and Java-Script cannot be crawled Google with >200 RANKING factors, which impact the position of a website not all publicly known In a Nut-Shell: Google is searching for KEY WORDS in TITLES, META DESCRIPTIONS, HEADLINES, File-/Image-names, internal LINKS, external LINKS from other (relevant) websites, etc. etc. slide 30

31 SEO & SEA - both disciplines can have a huge impact on your website s traffic 80% of online-purchases start at Google* Impact on Search Engines / Search Engine Marketing (SEM) Search Engine Optimization (SEO) Organic Impact (non-paid) on Search Engine Index (Search Engine Result Pages [SERPS]/ Hits) Search Engine Advertising (SEA) Paid Impact on Search Engine Index with separate display from organic SERPS via Google Adwords & Google AdSense Step 1 On-Page Content Structure of URLs Structure of Website (internal links, titles, descriptions, headlines, alt-tags, etc.) Step 2 Off-Page Link Popularity Number of sites that link to your site For Advertisers For Publishers * Source: Online Marketing im E-Commerce, Thomas Promny, Oktober 2009 slide 31

32 Exemplary Overview on Search Engine Result Listing: Organic results (SEO) vs. Paid Links (SEA) Paid Links = SEA Organic Search Results = SEO slide 32

33 The share of clicks on the top 3 Search Engine results is gigantic* - hence, being on top is very valuable!!! 51% of Clicks 22% of Clicks 15% of Clicks Top 3 positions receive 88% of all clicks! 6% of Clicks * Source: (Figures from 2008) slide 33

34 Example from Smeet: Search queries for 3D Chat and 3D Welt Search Query: 3D Chat Search Query: 3D Welt slide 34

35 SEO On-Page optimization means all measures that are taken directly on your website Main Benefit: FREE TRAFFIC!!! SEO On-Page Optimization 1. Content 2. Clean Structure & URLs 3. Complete Indexation 4. Titles, Descriptions, Headlines 5. Internal Links What to consider? Text is king! Unique content beats duplicate content E-Commerce Challenge: Info sites to redirect to product sales Each content only under one URL URLs are for eternity (Links, Bookmarks) Each URL optimized for a certain Key Word or Key Word-Combination Narrative/descriptive URLs, e.g. Avoid separators (except - ) and additional characters (only a-z & numerics) Length of URLs ideally not more than 100 characters, maximum of 200 Usage of archives The more the better Crawlable site structure crawlers reach sites which are not more than 4-6 clicks (direct links) away from homepage Title-Tag in HTML-Head most important carrier of Key Words, max. of about chars will also be displayed in Search Engine listing (see next slide) Meta-Descriptions in HTML-Header with individual descriptions & relevant key words Headlines in Code with individual content of Title-Tags and marked <h1> to <h..> Snippet optimization relevant for CTR (see next slide) Internal Links: relevant link-text (Key-Word-links & Alt-Tags for images/pics) Multiple internal links, especially to archive/old articles slide 35

36 Search Engine Listings The quality of the Snippet (Title-Tag, Meta-Description and URL) has relevant impact on the CTR Title-Tag Meta-Description URL Snippet Examples: Search Nike Basketballschuhe High relevance for CTR OK good title (probably too long), good description & URL Ok but bad URL and quite short description Poor bad title (including article number???) and bad description (only 1 row) slide 36

37 Checklist On-Page SEO at one glance MUST-HAVE Checklist On-Page Optimization * Unique Content MUST-HAVE Clean URL-Structure, no internal duplicates Individual Titles and Descriptions per URL Crawlable site structure, functional and linking archives for older content Well-organized internal links NICE2HAVE Narrative and descriptive URLS & Snippets NICE2HAVE * Source: Grundlagen der Suchmaschinenoptimierung, Thomas Promny, Oktober 2010 slide 37

38 SEO Off-Page optimization is mainly about the external Link Popularity of your site SEO Off-Page Optimization 1. Estimating the Value of Links (Link Popularity) What to consider? Link Popularity is the number of incoming links & their strength influenced by the Link Popularity of the linking site, age of the domain, et al. Page Rank is an indicator for Popularity, but very vague and its importance quite overestimated! Relevant for Search Engines are only links that: are direct links and not routing via an ad server for example come from a linking site which is in the Google index are not attributed with rel= nofollow Analysis of Link Popularity, i.e. the quality of links and the ranking of the linking website, is key for Off-Page Optimization! 2. Link Acquisition General Options: Link Exchange (Free traffic) Linkbaiting (Free traffic) Linkbuying (careful!) Social Media Optimization (Free Traffic) Watch out for: Bad Neighborhood Diversification Speed of Growth Linktext (Keywords!!!) Deeplinking slide 38

39 Search Engine Advertising (SEA) via Google AdWords for Advertisers Google s Bread & Butter Goal & Impact on Position GOAL of Advertiser: High Position & Low CPC Free setup of account for Advertiser Instant setup of campaigns with relevant key words, title, meta-description, landing URLs, budget and maximum CPC Variety of analysis and optimization tools (e.g. key word tool, placement tool, etc.) as well as compact reporting Comprehensive introduction and tutorials BILLING MODEL: CPC IMPACT on POSITION: (Facilitated: Position = Price * CTR Google s Max Rev) The position in Google is calculated from two factors: Price & Quality-Score (QS) Not the highest price leads to a top position! QS (between 1 and 10) is determined via known (and unknown) factors, e.g. historical CTR on keyword historical CTR on display URL in the ad group quality of landing page / target site relevance of keyword for the search request relevance of keyword to the ads in its ad group historical account performance QS ensures that ads are relevant for user slide 39

40 SEA Google Adsense for Publishers an easy self-serve way to integrate ads into your website Example of Website using AdSense Free setup of account for Publisher Option to integrate sponsored links / paid links (even display ads) into your website matching the content, but also matching the interests of your users (behavioraltargeting) BILLING MODEL: CPC (& even CPM) AdSense Ads Paid links seem as integrated part of content for many users Google takes rev share (68%) slide 40

41 AGENDA Online-Marketing Relevance of Online-Marketing Definition & Overview Sub-Disciplines of Online-Marketing Display Affiliate Marketing SEA / SEO Marketing Social Media Marketing Benefits of Online-Marketing slide 41

42 Marketing is one of the oldest forms in OM and very comparable to classical direct marketing (mailings, leaflets, etc.) Marketing* is a form of direct marketing which uses electronic mail as a means of communicating commercial or fund-raising messages to an audience. In its broadest sense, every sent to a potential or current customer could be considered marketing. KPIs Deliverability ratio Opening Rates of (Newsletter) Click Rates within Conversion into Sale/Lead Goals & Benefits Push-Approach : Communicating new products that are in need of explanation Acquiring new customers Encouraging and repeating business with previous customers (Customer Loyalty) Detailed targeting of audience to minimize waste circulation Challenges Cost-intensive address generation Technical / Deliverability SPAM - White-listing (Certified Sender Alliance - CSA) Format compatibility with all different programs / web services CPM often quite high * Wikipedia: slide 42

43 AGENDA Online-Marketing Relevance of Online-Marketing Definition & Overview Sub-Disciplines of Online-Marketing Display Affiliate Marketing SEA / SEO Marketing Social Media Marketing Benefits of Online-Marketing slide 43

44 Social Media Marketing is one of the newest forms in OM & very much on the uprise proven tactics to increase sales are rare! Social Media Marketing (SMM) or Social Media Optimization (SMO) is a subdiscipline of Online-Marketing that aims for reaching certain Marketing-, Branding-, and Communication goals via usage of Social Media channels* Social Media* refers to activities, practices, and behaviors among communities of people who gather online to share information, knowledge, and opinions using conversational media. Conversational media are Web-based apps that make it possible to create and easily transmit content in the form of words, pictures, videos, and audios. GOALS 1. Improve Search Engine Rankings 2. Increase Brand Awareness 3. Increase Positive Brand Mentions Online 4. Improve Overall Customer Service & Satisfaction Ratings Community Building 5. Earn More Sales (discussed and criticized!) CHANNELS / PLATFORMS Social Networks esp. Facebook (fanpages, Apps, Likes, Postings, Self-Serve-Ads) Blogs/Bookmarking Sites (like Twitter, Digg, Reddit, Stumbleupon, blogger.com, etc.) Video, Photosharing & Podcasting websites (like Youtube, Flickr, podbean.com) * Source: The Social Media Marketing Bible, Lon Safko / David K. Brake, WILEY (2009 slide 44

45 Social media Marketing has reached German companies but enthusiasm outweighs expertise and focus Insights about German Companies View on Social Media * 45% see Social Media as integral part of marketing activities 59% rather see opportunities than threats in Social Media activities But only 36% have an explicit strategy to place and produce specific content for Social Media 27% state scarce resources and insufficient time as reason not to engage in Social Media activities Social Media success is not really monitored so far: 80% consider monitoring important, but only 16% have invested in specific technical tools * Source: Study Future of Content, Meltwater Group, November 2010, also in Internet World Business: slide 45

46 Examples for successful SMM Campaigns: Burger King with Whopper Sacrifice application on Facebook Burger King on Facebook - Whopper Sacrifice Campaign Concept Stats / Results Delete 10 of your FB friends for a free whopper Each removal posted to the news feed Removed friends were informed that they were abandoned for a hamburger After 10 days 233k friends had been deleted 60k app installations Facebook disabled the campaign because de-friending notification would disrupt users privacy expectations * Sources: & slide 46

47 Examples for successful SMM Campaigns: Blendtec launch of viral videos Will it blend starring the company s CEO Blendtec on Youtube - Will it blend Campaign Concept Videos showing CEO Tim Dickson meshing everything from hockey pucks to the Iphone4 in Blendtec products posted on Youtube (later Twitter, Facebook, company blog, microsite) First viral video produced with budget of $100 Stats / Results* Since 2006 more than 100 million video views Sales increase of 700% in last four years for Blendtec * Source: slide 47

48 Examples for successful SMM Campaigns: IKEA Store Opening in Malmö on Facebook IKEA on Facebook Malmö Store Opening Campaign Concept Stats / Results* In 2009 for new store opening in Malmö Store Manager Gordon Gustavsson uploaded product images from IKEA showroom to his FB photo album The first person to tag their name on the product picture won it! To tag the pics and get updates, people also had to like the fanpage Gordon s profile became famous all over the world Thousands of posts with pictures in newsfeeds and pages pushed the viral spread of this competition Thousands of blogs and sites picked up on this competition, posted showroom pictures and increased the viral spread even further * Sources: & slide 48

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