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Chapter 11 DIGITAL MARKETING Chapter 11 DIGITAL MARKETING

Display/Space Media o Very similar to traditional advertising media o Most common are banner Display/Space Media o Very similar to traditional advertising media o Most common are banner ads, places the ad in front of the user o Banner ads are usually based on the content that appears on the website that the viewer is browsing

Types of Digital Marketing o Banner Advertising o Search Engine Optimization o Mobile Media Types of Digital Marketing o Banner Advertising o Search Engine Optimization o Mobile Media o Video Game Advertising

Banner Advertising o Can be presented each time a webpage is viewed – also Banner Advertising o Can be presented each time a webpage is viewed – also known as impressions o Social media and search engines have aided in the growth of this form of advertising o More and more, we see a blurring of the traditional and on-line media o Some firms use their Facebook pages to create additional advertising revenue

Banner ads like this for Grub Canada still create awareness and residual value even Banner ads like this for Grub Canada still create awareness and residual value even if consumers don’t click through

Search Engine Optimization (SEO) o 80% of all web traffic begins with a search Search Engine Optimization (SEO) o 80% of all web traffic begins with a search engine o SEO – process of increasing probability of a hit o Methods of SEO: o o o Paid search insertion Increase identification through organic emergence of site Paid search ads – two alternatives: o Pay-per-impression o Pay per click

Mobile Media o More and more companies are connecting with their customers through mobile Mobile Media o More and more companies are connecting with their customers through mobile media o Text messages are now being replaced by more graphically designed multimedia messages o Mobile media offers a unique opportunity for companies to reach consumers at almost any time, or any location o Mobile media often effectively combines sales promotions with their offers, such as promotional codes and e-coupons

Mobile Media BMW used mobile communications to connect with customers and encourage test drives Mobile Media BMW used mobile communications to connect with customers and encourage test drives

Video Game Advertising $1 billion per year spent on in-game ads Very attractive market Video Game Advertising $1 billion per year spent on in-game ads Very attractive market 75% of online households spend at least 1 hour per month playing online games 27% average 30 hours or more Primary market is 17 -34 year old males Have become difficult to reach Play shooting games Fastest growing market is females Now 40% of market Play puzzle and cerebral games

Video Game Advertising o Benefits o o Online games allow Web analytics Ads can Video Game Advertising o Benefits o o Online games allow Web analytics Ads can be targeted to match audience o Disadvantage o Ads soon become static o New technologies o o Ad rotations within game New ads can be added to online games Time-sensitive ads can be used Ads can be made interactive

Company Websites o Most firms have some sort of website o Some firms use Company Websites o Most firms have some sort of website o Some firms use their websites to integrate with other aspects of their IMC plan – i. e. , Starbucks with their, www. mystarbucksidea. com o Key is to have clear objectives of what your website is for and to understand how your customers and others interact and expect from your website o This analysis is referred to web analytics

Tips for Creating Effective Websites Copyright 2013 Pearson Canada Inc. Tips for Creating Effective Websites Copyright 2013 Pearson Canada Inc.

Consumer Generated Reviews o Amazon. ca and Best Buys are known for their online Consumer Generated Reviews o Amazon. ca and Best Buys are known for their online customer reviews o A very effective strategy for early adopters o Implications: o o Negative reviews Low-star ratings Consistent quality products Information for: o Marketing plans o Product modifications o Service strategies 9 -14

Consumer-Generated Products o Some firms such as Doritos have actively taken customer involvement to Consumer-Generated Products o Some firms such as Doritos have actively taken customer involvement to a new level o Doritos incorporates a sales promotion to allow customers to pick the flavours of new products o Engaging customers in this manner is one way of allowing customers to take ownership of the brands they like

Mountain Dew literally turned over its brand to its customer and even let them Mountain Dew literally turned over its brand to its customer and even let them choose their marketing communications agency.

Online Social Networks o More than 75% of Internet users participate in some form Online Social Networks o More than 75% of Internet users participate in some form of social media o o o Facebook Linked. In Twitter You. Tube Flickr Pintrest o Social media has become so important for IMC plans

Firms Use of Online Social Networks Firms Use of Online Social Networks

Consumer-Generated Advertising o Most ads we see are created by professional firms o However Consumer-Generated Advertising o Most ads we see are created by professional firms o However a more recent trend that builds on customer involvement is allowing customers to generate ads for the firm o Benefits Include: o o Spread via the Internet Seen on You. Tube Viewed as more genuine Contests for consumer-generated ads can be very effective

Blogs o Blogs are Online musings that can take a variety of forms o Blogs o Blogs are Online musings that can take a variety of forms o Blogs have the ability to create an online buzz o Some Blogs are company-sponsored like Lululemon that regular updates customers with yoga and lifestyle related news o One concern for firms is dealing with unjust negative comments that individuals may write 9 -20

Company-Sponsored Blogging Benefits of Company-Sponsored Blogging include: o o o Reassure shoppers Glimpse of Company-Sponsored Blogging Benefits of Company-Sponsored Blogging include: o o o Reassure shoppers Glimpse of how firm deals with customers Release company information Customers can voice opinion Company controls site

Viral Marketing o Technology has created the growth of viral marketing o Message passed Viral Marketing o Technology has created the growth of viral marketing o Message passed from one consumer to another o E-mail o Blogs o Social media o A form of advocacy or word-of-mouth endorsement o Viral marketing messages o Advertisements o Hyperlinked promotions o Online newsletters o Streaming videos o Games

FIGURE 9. 9 Keys to Successful Viral Marketing o Focus on the product or FIGURE 9. 9 Keys to Successful Viral Marketing o Focus on the product or business o Determine why individuals would want to pass the message along o Offer an incentive o Make it personal o Track the results and analyze the data

Digital Media Strengths Weaknesses o Targetability o Reach Limitations o Format Flexibility o Clutter Digital Media Strengths Weaknesses o Targetability o Reach Limitations o Format Flexibility o Clutter o Involvement o Relatively Low Cost