Exam 4 Digital Marketing CH. 11-13
ROI Equation
(Customer Concentration X Exposure Effectiveness) / Cost Per Exposure
The Digital Strategy Framework
*Look at notes/textbook drawing* "The purpose of a company is to create and keep a customer" - The process of creating a first-time customer is subdivided into Demand Generation and Demand Harvesting - Turning a first-time customer into a loyal customer is most critically influenced by the customer's experience during and after the first purchase - The fundamental decisions that make up digital marketing strategy are represented by the arrows emanating from digital marketing channels to the three customer influence efforts of demand generation, demand harvesting, and loyalty building - some tactics may not be allocated any resources - all decisions must be made with the recognition that not everyone is a potential customer
Training
- A company should have a plan in place for its employees to respond to complaints - By giving employees a set protocol on how to respond to common complaints, customer service representatives can respond confidently, knowing they are giving an appropriate response
Geo-Fencing
- A location-based technology that uses small sensors to send messages to smartphone users who enter a nearby, defined geographic area - Such targeting is much more narrow (and potentially much more effective) than targeting all users within the same zip code
Direct Messaging
- Allow companies to communicate directly with consumers - Chatbots, software programs that engage in unsupervised conversations with potential customers, can produce personalized (and therefore highly effective) promotional content - Channel remains quite small, and despite consistent growth, it is unclear whether it is likely to become a mainstream channel.
Creating Positive Content
- Battle a SE to remain more relevant than negative content - A key aspect of managing a brand's online reputation is to create positive content about the brand that will rank well in SERPs
Jim McKinley - Good Mobile Ads
- Become more in content streams - Not so static - Become more intelligent - Much more relevant (intelligent guesses) - Ads are more immersive - They're valuable (like taking a picture of an item and Amazon will find it) - Ads have become fun (Gatorade Snapchat filter)
Allocating Resources Across Channels - Budget
- Budget should be appointed across channels to maximize long-term profits - Typical that return on investment in any channel decreases as the level of investment increases - Competent digital marketers conducting a paid search campaign will advertise on the most profitable keywords first (if budget grows they'll invest in the next best keyword with less return)
Monitor the SERP's
- Can do by conducting searches on brand-related terms - If its brand has dozens of possible search terms related to it, a company can use monitoring tools
Google Alerts
- Can enter ass many terms as you like - Can track "everythhing" (all content of any type, and from any source) - Users can also specify that they only want content from news sites, blogs, video sites, discussions, or books. - Can set the language the alerts come in, the region/geography to monitor, the frequency at which these alerts will be delivered (as-it-happens, daily, or weekly), the number of results they want, and whether they would like to receive them by email or in a feed reader.
Social Media Sites
- Company must have an account in order to respond online to the things being said about it - Once a company has joined the conversation, it is difficult to leave - On its own social profile, a company can typically moderate what is being said about its brand - On other social profiles, they aren't able to moderate comments or even respond to them. Contact directly and attempt to take it offline
Demand Harvesting
- Consists of any activity that increases the likelihood of securing a purchase from a potential customer who already wants the product.
Other Digital Marketing Tactics
- Conversion Rate Optimization (CRO) - Mobile Application - Affiliate Marketing - Influencer Campaigns - Direct Messaging
Paid Search Advertising
- Customer concentration and exposure effectiveness of paid search advertising is extremely high - Cost per exposure is determined via an auction (means that valuable keywords tend to cost more) - Advertisers that can generate a high conversion rate (can often count on a steady stream of profitable website visitors from paid search ads) - Returns are often immediate because a search on a particular keyword indicates purchase readiness
Hierarchy of Digital Marketing
- Digital marketing resides BELOW the marketing strategy (CMO-level decisions) but ABOVE individual tactical decisions (e.g., decisions made by directors of paid search) - Because the digital marketing strategy is situated beneath the company's marketing strategy, higher-level strategic decisions (e.g., brand positioning, the product assortment, customer segmentation) are made elsewhere - Lower-level implementation decisions such as ad copy and email segmentation are also not central components of the digital strategy.
Take it Offline
- Do so as quickly as possible - Respond once with an invitation to call or email for further support (don't want to respond too frequently or to have too many people see which may cause SE to rank these comments higher) - Good idea to create social profiles for responding to positive and negative customer conversations online
Channel Evaluation
- Email - Search Engine Optimization (SEO) - Paid Search Advertising - Social Media Advertising - Social Media Posting - Display Advertising
Display Advertising
- Exposure effectiveness is typically low - Have low cost per exposure, and display ad networks offer a number of targeting options that can produce a high customer concentration - Retargeting, a technique whereby advertisers show ads to previous website visitors, produces an especially high level of customer concentration, harvest-readiness, and often positive return
- Extremely profitable - Cost per exposure is extremely low - The customer concentration tends to be high (consented because there is interest) - Exposure effectiveness is typically high (gives the email dedicated attention)
Browser Bluetooth
- GPS doesn't work indoors - In a store, this can be used to for guidance and ad targeting - Not yet ready for widespread distribution but should be available in the next few years
Scam Reporting Sites
- Good for SEO - Rank well for brand names of businesses - A company should only respond once & then leave it alone (additional updated content will improve Search engine ranking of the negative post) - A company shouldn't mention the brand or product in their response (makes negative pages better optimized for keywords)
Additional Mobile Targeting Methods
- Habits - Weather - Social Context
How do utility apps make money?
- If you aren't paying for the product, YOU are the product - They are either showing you ads or collecting your data
Activist Organizations
- Impossible to respond to the negative comments on their website - To resolve issues - work with the organization to change the way its talking about a company/brand online - If this doesn't work, the company must share their side of the story elsewhere
Exposure Effectiveness
- In order to be effective, it must ultimately change the behavior of the person who views the ad or communication. - To have such a dramatic effect on behavior, an ad or communication must command sufficient attention and thought from the potential customer - Search ads tend to be highly effective because a search for a specific thing is a strong indication that the searcher is harvest-ready.
Online Forums
- Increase credibility in 3rd party forums is based on a company's participation in these forums - Wise to have a account that actively participates in these forums - Such involvement would give the company a chance to monitor what was being said about its products and services, and at the same time, allow it to mention to other forum participants the parts it sells.
Habits
- Marketers should be aware of how ___ affect when potential customers are likely to respond to their ads - Consumer behavior changing throughout the days/weeks/months/etc.
Allocating Resources Across Channels
- Marketing budgets should be set with an eye toward earning the highest possible return on investment - Requires knowledge of (or inferences about) the returns likely to be earned from investment in each tactic
Notification-Based ads
- May become more commonplace - Two conditions will give rise to increased notification-based ads: 1. Customers will become more accustomed to direct messages from companies, through SMS or Facebook Messenger or some other direct messaging application. 2. Companies' targeting will become so effective that most direct notifications will be welcomed.
The Future of Mobile
- Mobile payment systems - Browser bluetooth - Virtual + augmented reality
Informational Sites
- Negative content has most often already been shared elsewhere online, because these sites are typically aggregators of information from other sources - Adding its own content to these sites will ensure that a company is able to add positive content that can offset negative things being said by others, and will allow the company to set the record straight on false reports - Rely heavily on user-generated content (UGC) - Because these sites allow others to post content on their websites, they are not held liable for what is said, even if the content is libelous and inaccurate
Mobile Application
- One of the most skewed markets in the entire business world - Only small number are widely successful - Many installs result in only one immediate use and are eventually deleted without ever being used again Must ask: 1. whether it can achieve the requisite number of installs 2. whether customers and potential customers will establish a pattern of continued usage of the app 3. whether mobile application use will have a sizable impact on demand generation, demand harvesting, or loyalty
Social Context
- People respond differently to marketing messages when they are alone versus with their spouse versus with their family - Difficult to assess - Require sophisticated analysis and extensive data access
Customer Concentration
- Potential customers are people who, under the right circumstances, will make a purchase or sign a contract. - Non-potential customers are those who would never purchase a product or service - Generally, paid ad exposures to non-potential customers are wasted money because they represent a cost that produces no revenue - Therefore, the cost-effectiveness of a digital channel is also determined by the concentration of potential customers that can be found on the channel.
Conversion Rate Optimization (CRO)
- Process by which website copy is tested to determine whether different content, a different layout, and/or the addition or subtraction of features produces a higher conversion rate. - Virtually always a worthwhile tactic.
Affiliate Marketing
- Promote products on their website, provide a link to purchase the products on a different site, then receive a commission on purchases generated from those links - Typically beneficial, as they drive low-risk, profitable traffic - Possible downside: affiliates could potentially steal traffic and thereby require commissions from sales that might have occurred without the affiliates' efforts Key Strategic Questions 1. whether to engage with affiliate marketers 2. what commission sizes to provide affiliates 3. how intensely to focus on affiliate relationships
Digital Marketing Strategy Goals
- Provide a framework for making purposeful decisions about which digital marketing tactics to employ and the relative budget allocations that should be given to these tactics to produce long-term, sustainable profits for a company
Online Review Sites
- Published on many sites or on the e-commerce platform where the product is being sold, including possibly the company's own website. - Positive reviews about a brand and its products improve a company's credibility and thereby improve conversion rates - Negative reviews, on the other hand, can deter customers from doing business with a company. - The easiest way for a company to manage its reputation is to always provide superior products and services that warrant positive reviews, and to encourage happy customers to leave reviews.
Weather
- Rain dampens consumer spending, so ad response tends to be higher on good weather days - Weather also affects people's moods, and they are more likely to respond to positively-valenced messages on sunny days and negatively-valenced messages ("Don't miss out!") on rainy days.
Jim McKinley - Mobile Facts
- Smartphones have had the fastest technology adoption in the world - It took only 8 years for smartphones and Facebook to be adopted - Mobile is displacing traditional media consumption - Millennials check their phones approx. 157X a day - 90% of time on devices is spent on apps - 8/10 apps are owned by Google or Facebook - Average apps a user actually uses is 6
Influencer Campaigns
- Some industries thrive - Impact of these campaigns can be difficult to verify, because an influencer's post is typically only seen by a fraction of those followers/fake follower accounts - Can be profitable - Many companies are also finding success working with micro-influencers, people who have amassed much smaller, but often more loyal, social media followings.
What should a company do if they are able to respond to a negative review?
- The company should avoid becoming defensive and should avoid downplaying the reviewer's experience or making any negative statements about the reviewer - Try to understand the situation fully, take responsibility where applicable, and point out what has been done to resolve the problem - Try to take the conversation offline
Choosing Marketing Efforts
- The core of digital marketing strategy focuses on resource allocation across the various digital marketing channels in service of the three customer influence efforts - Before resource allocation, a company must determine the resource allocation across the three marketing efforts (optimal allocation depends on the company's current state) *look at example in book*
Digital Channel Advantages
- The dramatic advantage that digital channels have over most traditional marketing channels is the ability to select ad targets that increase the concentration of potential customers - Machine-learning-based targeting can produce even higher concentrations - Thus, even when these channels have a higher cost per exposure, they are often more cost-effective than lower-cost channels because less money is wasted advertising to non-potential customers
Blogs
- The most common place for responding to negative content on ____ about a brand is in the comments section of the post - Avoid being defensive and stay professional - Contacting the blogger to make amends can go a long way, and often that blogger will write something positive about the company for reaching out to resolve the issue.
Location-Based Targeting
- The narrowest geographic targeting available to advertisers was an internet user's zip code - Geo-fencing - While location-based targeting can increase the effectiveness of ads, it is most effective when combined with behavioral targeting and temporal targeting
Social Media Advertising
- The variety of targeting methods enables smart advertisers to achieve an impressive level of customer concentration - High impression effectiveness (most social media ads command the user's direct attention) - Cost per exposure has steadily increased over time (usually earn positive returns on SM ads)
Search Engine Optimization (SEO)
- When successful, can produce extremely high rewards - High customer concentration with high exposure effectiveness at zero cost per exposure (but not really) Difficulties 1. Delayed results 2. Uncertain results 3. Hard-to-measure costs per exposure
Social Media Posting
- While a select number of companies have earned huge returns with viral social media content, these runaway hits are exceptions, not the rule - Unpaid social media content tends to be more productive for loyalty building efforts than for demand generation or demand harvesting - Limit posts from companies
Mobile Payment Systems
- Widespread in most of the developed world (except in the US, but its becoming more commonplace) - The convenience advantage of such systems is dramatic - Likely to have a sizeable impact on the mobile economy when they are adopted - Reducing payment friction (i.e., making payment easier) will increase ad responsiveness
Press Articles
- Will ask the company for a comment - A company representative should be available to comment on the stories by having a [email protected] email address.
Monitoring Brands
- a company can choose from a number of software tools that have been created to enable it to monitor what is being said about it in real time, no matter where these opinions are published (publicly) online. - These tools crawl the web looking for mentions of a brand to alert a company of any new content that has been posted. - The more words to monitor, the more there is to sift through
Words to Monitor
- company name - products the company produces - company's trademarks - high-level employees - competitors' brands - industry news topics - regulations and laws that affect one's company - customers' company names - etc.
Demand Generation
- consists of marketing activities that increase a potential customer's desire for the product or service - can be product-centric ("I really want to own a car.") or brand-centric ("I really want a Ford Fiesta.") - Product-centric would focus on increasing a consumer's desire for the benefits of the product category ("I want the freedom and flexibility of automobile ownership.") - brand-centric would focus on increasing a consumer's desire for product features unique to the brand ("I want the new Ford Mustang because of its powerful-looking build.")
Virtual and Augmented Reality
- currently used more for entertainment than for commercial applications, but many predict an explosion of commercial applications of both (overly optimistic)
What does Online Reputation Management recognize?
- recognizes that negative online content can have unnecessarily damaging repercussions long after the underlying issues have been addressed. - also about equipping businesses with the tools needed to handle new negative issues and turn customer complaints into satisfaction and loyalty.
Cost Per Exposure
- usually reported by the platform (for online advertising channels: paid search, display advertising, social media ads, etc.) - more difficult to account for for other digital marketing channels (search engine optimization, social media posting, etc.) - Despite these difficulties, smart digital marketers take great efforts to measure both the costs and returns of all digital marketing efforts, including SEO
UX
-User Experience - Content, ease, flow, language, etc.
Technical Differences for Mobile
1. A smaller screen means less information displayed at once 2. A smaller screen means slower typing (fat-fingers) 3. A smaller screen means less precise clicking (fat fingers) 4. A smaller processor means slower page loading 5. A slower network means slower page loading and slower page submission
Ideas for webpages that can rank well for brand searches:
1. Corporate blog 2. Corporate website 3. Corporate ads 4. Social media profiles 5. Directory listings 6. Charity microsites 7. Customer support site 8. Product microsites 9. Cause microsites
Spending on demand generation may be wise when:
1. Demand harvesting efforts have saturated the market 2. Demand generation efforts are sufficiently effective for harvesting of that newly-created demand to occur immediately.
Behavioral Differences for Mobile
1. Mobile users are more impatient than desktop users 2. Mobile phone usage is characterized by "snacking" rather than "feasting" 3. Rich media (e.g., video) is equally effective for mobile users as for desktop users 4. Location matters more for mobile users
Locations hat are likely to have negative content about a brand
1. Online review sites (Yelp) 2. Scam reporting sites (Scam.com, RipOffReport.com) 3. Online forums (fordforum.com, connectedmoms.com) 4. Press articles 5. Websites of activist organizations (PETA.org) 6. Social media sites (Facebook.com, Twitter.com) 7. Blogs 8. Informational sites (Wikipedia)
Mobile Site Experience
1. Site Experience Matters ~ don't pour digital $ into an empty bucket 2. Often a responsive website doesn't translate into mobile ~ lead form get buried ~ broken forms ~ text and screenshots too small 3. Mobile Measurement can be Difficult ~ start purchase with smartphones then complete with desktop (33%) - Hard to track performance (Google and Fecebook have the advantage bc/ they can track when youre logged in) 4. Can better target with location services ~ Geo-targeting
Good digital strategy is only likely to produce long-term profits if two conditions are met:
1. The digital marketing tactics are being executed and will continue to be executed competently. 2. The company's marketing strategy (positioning, targeting, competitive landscape, etc.) has been decided, and the individual tactics are being executed in accordance with this strategy.
Emergency Response 3 T's
1. Timeliness 2. Transparency 3. Training
Digital marketing returns are determined by three factors:
1. cost per exposure 2. customer concentration 3. the effectiveness of each exposure
Prioritizing alerts
A company can actively monitor crucial alerts related to terms like "company name + fraud" or "company name + scam," but only occasionally monitor terms like competitors' brands or its high-level employees.
Transparency
A company should also admit any wrongdoing after which it can then focus the conversation on actions it is taking to resolve the wrong
Timeliness
By responding quickly, a company can nudge press coverage toward its response to the controversy rather than focusing on the controversy itself
Stickiness
How good is the website or app at keeping people on it - The longer you can keep them, the better - Time = Commitment / Conversions
Differences between Mobile and Desktop Use
Mobile - Users pay much more attention to top search results when on mobile devices (impatient) - When looking for information, mobile users prefer a much shorter, to-the-point answer - Important to display the most important information (facilitates conversion) - Use phone dozens of times per day and sometimes only use the phone for a few seconds before putting it away again (some of these short sessions occur when the user is ripe for influence) - Visual media is just as effective on both - User's location is a key factor that marketers can use to find more likely customer Desktop - more likely to want a more detailed treatment of the subject - users log fewer sessions that tend to be much longer than their mobile sessions - Visual media is just as effective on both - Location results mean you're probably more willing to travel longer distances
Responsive vs. Adaptive
Responsive - Build one site thst converts to the screen size - only have to do one - low maintenance cost - more expensive on the front end - can already fit new screen sizes (fluid) Adaptive - Build multiple designs and when you log on to a device, it analyzes what device you are on - cheaper on the front end - more appropriate for a company that has an existing site - more expensive to maintain
Online Reputation Management
The act of reviewing what is being said about a company or individual online, so that the company or individual can engage in activities to improve that company's or individual's overall public perception ORM is traditional public relations, but for the internet.
Top-Down, Bottom-Up Mobile
Top-Down - taking pieces off to fit the screen - adding code on top of code which slows down critical download time - not always keeping the user experience in mind because you're just trying to make it fit Bottom-Up - adding to the user experience - consider the least technical device and build from ground zero
Digital Marketing Strategy
_____ is composed of the selection of digital marketing tactics and the allocation of marketing budget across those digital tactics
