Page number: /29 E-Marketing Authors: Darko Milutinović (mdarco@EUnet. yu) Prof. Dr. Veljko Milutinović (vm@etf. bg. ac. yu)
Contents w Part One § What is E-Marketing? § Why E-Marketing? § E-Marketing options - 2 Web site building & promotion Banner advertising E-Mail marketing
Contents w Part Two § E-Marketing options (advanced approach) - Getting noticed by search engines Web site extras Site tracking & usability testing Newsletter writing tips § Forgotten techniques: Newsgroup advertising § Psychology & E-Marketing 3
Contents w Part Three § E-Marketing options (revisited) - In defense of the banner Catching spam message senders § Avoiding on-line ad failure § E-Marketing statistics § Common mistakes which are destroying your on-line advertising § Example of E-Marketing plan 4
Page number: /29 Introduction What is E-Marketing?
What is E-Marketing? E-Marketing is general term for a wide array of activities conducted over the Internet: w w 6 Web site building & promotion Customer communication E-mail marketing Newsgroup marketing
What is E-Marketing? E-Marketing is NOT only creating a Web site! It also focuses on: w w 7 Communicating on-line Using customer directed dialogue
What is E-Marketing? In short, we define E-Marketing as all the things business does to find, attract, and keep customers. 8
Page number: /29 Why E-Marketing? Reasons Why a Business Should Have a Web Presence
Why E-Marketing? w Internet access is now available virtually anywhere w Internet standards enable users form all around the world to plug into the Web w All businesses can compete 10
On-line Advertising Spending $15. 4 $12. 9 $10. 6 $8. 6 $6. 8 $5. 7 $5. 4 11 Billions of dollars
Page number: /29 E-Marketing options Choose the Right Combination of E-Marketing Options
E-Marketing options w w w 13 Web site building & promotion Banner advertising E-mail marketing
Page number: /29 Web site building & promotion Tips for Building and Advertising Effective Web sites
Web site building and promotion w Imagine a real store - From the street you can see the sign "Store" - You follow its path but you can't find the door - You finally find a hidden door that opens up and lets you in - Inside, its pretty dark and hard to see - Once your eyes adjust, you find a lot of products but you can't read their descriptions 15
Web site building and promotion - When you finally find something worth buying you can't find the salesperson or the cash register - After more searching you find the sign telling you to mail a check and the product will be delivered to you in three weeks - But you wanted the product TODAY! How long do you think a store like this would last? 16
Web site building and promotion w What have we learned from this story? 1) Let your intro page be simple 2) Make sure that all links are clearly marked 3) Put a link to your home page and to your ordering page on every page 4) Lose the stupid animations 17
Web site building and promotion 5) 6) 7) 8) 18 Lose the funky backgrounds Organize products so that they make sense Make it easy to order Don't make it easy for people to leave your site
Web site building and promotion w Quick tips for Web site promotion § Hire a submission service § Do it yourself - 19 Web directories (Yahoo, Infoseek, …) Search engines (Google, Alta Vista, …) Newsgroups (comp. infosystems. www. announce) Specialized newsletters (Net-Happenings, Net Surfer Digest, …)
Page number: /29 Banner advertising Quick Tips for Designing Killer Banner Ads
Banner advertising 1) Always use the words "Click Here" or "Enter" 2) Animate your banners 3) Create quick loading banners 4) Use an awesome headline FREE 5) The best word is SEX 21
Banner advertising 6) 7) 8) 9) 22 Use blue underlined text Use your Web site address or your logo Use trick banners Change banner ads frequently
Page number: /29 E-Mail marketing Doing E-Mail Marketing the Right Way
E-Mail marketing w E-Mail is Internet's killer application § There are enough mailboxes for everybody - According to e. Marketer, there were 3. 4 trillion e-mail messages sent in the world § E-Mail is dirt cheap - 24 Cost-per-piece comparison: $0. 01 - 0. 25 for e-mail, $1 - 2 piece for snail mail (Jupiter Communications)
Type of Sites That Send Marketing E-Mail Office supplies Investments Toys, games & entertainment 38% 37% 38% Travel & entertainment 32% 50% 41% 43% 45% Collectibles & hobbies Personal interests Fashion & style 25 Consumable products Computer & electronics
E-Mail Marketing UNTARGETED NOT A SMART WAY! Permission Privacy TARGETED Newsletter publishing Opt-in marketing • Daily/weekly/monthly • Autoresponder E-Zine advertising • Respond immediately • Signature 26
E-Mail marketing w What you should NOT do § Imagine this situation: - - You're coming home and playing the answering machine You find dozens of messages offering "amazing" products that fill up your machine You get BILLED for all that! Would you like this? 27
E-Mail marketing w What have we learned? § NEVER blast e-mails to unsuspecting people or addresses (Don't SPAM!) 28
E-Mail marketing w How to protect yourself from SPAM? - - 29 Reply with a message telling you're not amused Write the postmaster (system administrator) Use message filtering systems (in Outlook Express, Eudora, …) If all the above fails, only a threat can help!
End of Part One 30
Page number: /29 E-Marketing options Advanced Approach
Getting noticed by search engines How Users Find Sites? 1999 (%) 2000 (%) Search Engine 67 81 Link from another site 39 59 Viral Marketing Television 56 48 Guessed URL address On-line Advertising 22 10 41 20 Radio Direct Mail 32 28 16 6 5 19 10
Getting noticed by search engines Myths Facts Simply submitting a Web site to hundreds of search engines will increase traffic Not useful if you don't know the search engine algorithms! Simply inserting META tags in Web pages will also increase traffic Also not useful if you don't know how to properly write keywords and descriptions! You MUST use search engine positioning! 33
Search engine positioning tips • Avoid or minimize frames • Avoid splash pages • Use keywords in image ALT tag • Always use META tags • Use doorway pages <IMG WIDTH=120 HEIGHT=60 SRC="btn. gif" ALT="Keywords"> 34
Using META tags properly <HEAD> <META NAME="Description" Content="Page description"> <META NAME="Keywords" Content="Keywords separated by commas"> <TITLE> Document title </TITLE> </HEAD> • • 35 Keywords must be less than 1000 characters Do not repeat any keyword more than three times Description must be less than 150 characters Use two or three keywords in the title
Keyword placement & ranking criteria (doorway pages) Ranking criteria: Keyword placement: - Keyword prominence - Keyword frequency - In the <META NAME="Description"> tag - Site popularity - In the <META NAME="Keyword"> tag - Keyword "weight" - In <H 1> and other headline tags - Keyword proximity - In the <AHREF="Web address"></A> tag - Keyword placement - In the body copy - Grammatical structure - In ALT tags - Synonyms 36 - In the <TITLE> tag - In <!-- Comment> comments tags
Internet personals Industry & Headline News Chat Rooms Postcards & Classifieds Web Site Extras Guestbooks Sweepstakes & Contests 37 Message Boards Web Polls
Site Tracking Software Feedback • Browsers • Resolution • Referring sites • Referring search engines Feedback forms/e-mails • Referring e-mails Marketing survey 38
Usability testing w Three simple truths: § If customers find your site difficult to use, they will get frustrated and leave § It is not a good thing if they leave your site § If you don't test your site with actual customers before launch, you can't ensure that customers won't leave your site 39
Usability testing One-on-one interviews with customers that explore their opinions about a site or site prototype Explorative testing OK? No Yes CLOSE? Assessment testing No More work OK? Yes Evaluation testing 40 No More work w
Newsletter writing tips 1) 2) 3) 4) 5) 6) 7) 41 Include a "What's inside" section Create enticing headlines Include a list of past newsletters at the bottom Your lead article should be "Quick Tips" article Include special offers Include links to interesting resource sites Do not use it solely for promoting or selling stuff!
Page number: /29 Newsgroup advertising The Forgotten Technique
Newsgroup advertising w w w Usenet is a worldwide distributed system of on-line discussion groups, called "newsgroups" Newsgroups have names that are classified hierarchically by subject Each newsgroup is dedicated to a particular theme Moderated newsgroups Usenet Non-moderated commercial newsgroups 43
Newsgroup advertising w History of the Usenet § Usenet started out in 1980 as a UNIX network - Only few messages per week, but the traffic soon boomed § In the beginning, it was largely confined to educational institutions - Universities, colleges and research companies § Many customs today are from the old days - 44 Tradition and belief that it's rude to advertise for profit!
Why is it rude to advertise in moderated newsgroups? w Imagine a meeting at your workplace - - People are discussing a certain issue In the middle of the discussion someone walks into the room, reads an advertisement and leaves Now imagine if this happened each time you have a meeting It's very difficult to keep newsgroups interesting and useful when people deluge them with advertisements! 45
How to Advertise on Usenet? On-topic notice comp. newprod newsgroup biz. * newsgroups One-time-only *. forsale and *. marketplace newsgroups Us . signature advertisements Moderated newsgroups: Commercial newsgroups: • No more than four lines ls ria to er dv ea • Not only identification • Product information • Special offers • Physical address 46 • No advertisements
Newsgroup advertising w How NOT to advertise on Usenet? § Posting off-topic messages in unrelated newsgroups § Spamming § Unsolicited junk e-mail § 'Mail-merged' ads 47
Page number: /29 Psychology & E-Marketing Tell Me Why and Then I'll Buy
Psychology & E-Marketing w Effective advertising is based on a knowledge of a human nature w Four aspects you should use throughout your Internet advertising § § 49 Curiosity is a powerful motivation Extravagance at a bargain price Fear of failure and of making the wrong decision Exclusivity
Page number: /29 E-Marketing options (revisited)
The Internet isn't an evocative medium. Low click through rates prove that banners don't work. Banners have branding effect that is independent of click through. Clear, simple messages can be memorable. I can't remember banners. Can you remember a radio commercial? People don't see banners. Research: 45% of subjects looked directly at banners. Banners are never relevant. People on the Internet are goal-oriented. Does that mean that billboard advertising doesn't work, too? . 51 We need to make online advertising better. In Defense of the Banner
Catching spam message senders w Not likely to catch the actual spam message senders, but you can find the address of the upstream provider (that sells them Internet access) w Use Trace. Route (in Windows or at the http: //cities. lk. net/traceroute. htm) - 52 You define a domain name or an IP address It walks from your server to specified server, showing all the "hops" The last hop is the domain or IP address of the spam source The next to last hop is the domain of the upstream provider …
Trace. Route example C: >TRACERT yahoo. com Tracing route to yahoo. com [204. 71. 177. 35] over a maximum of 30 hops: 1 151 ms 162 ms iah 14. barrie. connex. net [209. 212. 39. 193] 2 164 ms 159 ms 163 ms bcicor 1 -100 bt-e 1. barrie. connex. net [205. 189. 200. 35] 3 270 ms 327 ms 234 ms spc-tor-7 -Serial 3 -1. Sprint-Canada. Net [207. 107. 244. 213] Upstream provider: 4 261 ms 260 ms * core-spc-tor-2 -POS 2 -0 -0. sprint-canada. net [204. 50. 128. 13] 5 * 180 ms 179 ms sl-gw 21 -pen-1 -1 -0 -T 3. sprintlink. net [144. 228. 178. 5] root@globalcenter. net … 10 291 ms 287 ms 320 ms isi-border 2 -hssi 4 -0 -0 -T 3. sprintlink. net [144. 228. 147. 10] 11 325 ms 294 ms 326 ms fe 4 -0. cr 1. SNV. globalcenter. net [206. 251. 7. 42] Unlike… return address, the route a message takes over 306 ms pos 5 -0. cr 1. NUQ. globalcenter. net [206. 251. 0. 121] 14 310 ms 320 ms the Internet 15 310 ms 295 spam generator! cannot be faked by ams 311 ms yahoo. com [204. 71. 177. 35] Trace complete. 53
127 255 220 200 What to do if address is written in a strange way? http: //4291330012 4, 291, 330, 012 • 4, 291, 330, 012 ÷ 224 = 255. 78320 • 4, 291, 330, 012 - (255 × 224) = 13, 139, 932 • 13, 139, 932 ÷ 216 = 200. 49945 • 13, 139, 932 - (200 × 216) = 32, 732 • 32, 732 ÷ 28 = 127. 85938 • 32, 732 - (127 × 28) = 220 54 http: // . . . /
Page number: /29 Avoiding on-line ad failure
Avoiding on-line ad failure w On-line advertising is more art than a science w Important things to avoid § Cluttered ads § Ads… that… make… you… wait… § Ads that won't leave you alone § Tricky ads 56
Page number: /29 Common mistakes which are destroying your on-line advertising
1) You have a short-sighted vision 2) You aren't willing to think outside the box 3) You have fallen in love with the wrong product 4) You don't have a Unique Web Position 5) You haven't researched your market enough 6) You aren't dealing with people as individuals 7) You give up too soon 58
Page number: /29 E-Marketing statistics
What tactics are most effective/used by Brand Advertisers? Rank On-line Techniques Rating (%) Use(%) 1 58 69 2 Links 47 76 3 Search Engine Positioning 37 73 4 On-line Advertising 34 56 5 Public Relations 28 64 6 Packaging 26 53 7 E-Mail 22 55 8 Direct Mail 14 34 9 Incentives 8 22 10 60 Traditional Advertising Sweepstakes 7 21
What tactics are most effective/used by Direct Marketers? Rank On-line Techniques Rating* Use(%) 1 Customer/Visitor E-Mail 4. 02 54 2 On-line PR 3. 59 30 3 Referral Partnerships 3. 49 20 4 Sponsorships 3. 48 18 5 Affiliate Programs 3. 44 27 6 Search Engine Positioning 3. 34 66 7 Reciprocal Ads/Links 3. 32 43 8 Screaming Video Ads 3. 31 4 9 Banners/Links 3. 05 38 10 Unsolicited E-Mail 2. 67 11 * 1 = Not at all effective and 5 = Very Effective 61
Alta Vista Netscape Webcrawler Millions of dollars 62 ESPN. com Go. com Weather. com Lycos Excite AOL. com Yahoo! Top on-line revenue by site (first-half 2001)
Top on-line spenders by company & top on-line spending by industry General Motors $25. 4 e. Bay $24. 3 Amazon. com Inc. $16. 2 Classmates Online $15. 1 J. P. Morgan Chase $14. 9 Barnes & Noble $14. 3 Verisign Inc. $13. 7 AOL Time Warner $13. 3 Providian Corp. $12. 7 Bank One Corp. $11. 1 Millions of dollars 63 Insurance & Real Estate Gov. & Organizations Telecomm. Auto Industry Public Transportation, Hotels & Resorts Local Serv. & Amus. Computers & SW Financial Media & Advertising Retail
Top 10 Web Advertisers (June 2001) - At Home Internet Users Impressions (000, 000) Reach (%) 1 Microsoft 1, 842 49. 5 2 TRUSTe 1, 597 31. 4 3 Yahoo! 1, 125 37. 9 4 e. Bay 821 30. 3 5 Amazon 701 51. 7 6 Barnes & Noble 700 48. 7 7 Class. Mates 692 46. 1 8 AOL 679 38. 7 9 Providian 662 41. 0 10 Netscape 649 31. 1 Rank Advertiser 64
Top 10 Web Advertisers (June 2001) - At Work Internet Users Impressions (000, 000) Reach (%) 1 Microsoft 1, 509 63. 4 2 TRUSTe 1, 263 49. 2 3 Yahoo! 628 50. 6 4 Netscape 615 43. 7 5 e. Bay 593 37. 3 6 Amazon 487 47. 7 7 Orbitz LLC 467 40. 4 8 Barnes & Noble 467 4. 6 9 Providian 432 60. 0 10 Class. Mates 411 53. 1 Rank Advertiser 65
Page number: /29 Example of E-Marketing plan Music Star "Wanna-be" Case Study
Example of E-Marketing plan w w 67 E-Marketing plan for a singer who has just released his first CD and who wants to become a star in the music industry Objective: To utilize the Internet to its fullest potential to increase amount of memberships in the fan club and Web site visitors
During Web Site Creation Budget Newsgroups E-Marketing Plan Unofficial Sites Banners Off-line Promotion Software On-line Promotion Market Survey When Web Site is completed 68
Budget w The budget should include: 1. Cost of submission software 2. Cost of site tracking 3. The cost of: Banner displays on industry related sites - Mailing list sponsorship for industry related mailers - 4. Cost of off-line advertising (i. e. magazines, newspapers, brochures, …) 5. Market Research Survey 69
During Web Site Creation Budget Newsgroups E-Marketing Plan Unofficial Sites Banners Off-line Promotion Software On-line Promotion Market Survey When Web Site is completed 70
Newsgroups 1. Is there an existing newsgroup with the singer's name? • • 2. 3. 71 If there is, on a daily basis: - Hang out and read the posts - Post to the newsgroup If not: - Start the newsgroup and do the same as above - You may start posting as a fan Advertise the newsgroup everywhere on the Internet Visit other music related newsgroups and add posts
During Web Site Creation Budget Newsgroups E-Marketing Plan Unofficial Sites Banners Software Go through all unofficial sites to verify accurate information and email corrections if necessary 72 Off-line Promotion On-line Promotion Market Survey When Web Site is completed
During Web Site Creation Budget Newsgroups E-Marketing Plan Unofficial Sites Banners Off-line Promotion Software On-line Promotion Market Survey When Web Site is completed 73
During Web Site Creation Budget Newsgroups E-Marketing Plan Unofficial Sites Banners Off-line Promotion Software On-line Promotion Market Survey Submission and Site Tracking Software 74 When Web Site is completed
During Web Site Creation Budget Newsgroups E-Marketing Plan Unofficial Sites Banners Off-line Promotion Software On-line Promotion Market Survey When Web Site is completed 75
Market Research Survey 1. 2. Add the on-line survey/feedback form on the singer's site to allow visitors to offer comments and suggestions 3. 76 Consider hiring one of the Internet marketing research companies When results are in, decide on changes if necessary
During Web Site Creation Budget Newsgroups E-Marketing Plan Unofficial Sites Banners Off-line Promotion Software On-line Promotion Market Survey When Web Site is completed 77
During Web Site Creation Budget Newsgroups E-Marketing Plan Unofficial Sites Banners Off-line Promotion Software On-line Promotion Market Survey When Web Site is completed 78
Off-line promotion 1. 2. Add the Web address to all stationery 3. Place advertisements or send press releases to industry related magazines and newspapers 4. 79 Print 'Check us out on the Web' pamphlets Read all Internet magazines
The End Darko Milutinović (mdarco@EUnet. yu) Prof. Dr. Veljko Milutinović (vm@etf. bg. ac. yu) http: //galeb. etf. bg. ac. yu/~vm 80
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