MKTG 3665 Quiz 2
Existing MarTech (Marketing Technology) Companies - Stats
-6.9% are enterprises, with more than 1,000 employees or are public -44.2% are private businesses, less than 1,000 employees or no funding data -48.8% are investor-funded startups at any pre-exit stage
Information Sharing on Social Media
-78% of burglars have admitted they use facebook, twitter, foursquare, and google street view to select victim's properties -54% of burglars say that posting status and whereabouts on social media is the most common mistake made by homeowners -33% of all internet initiated sex crimes were instigated through social network sites -in 50% of all sex crimes against minors, offenders obtained info/pics of the victim through the victims social networking profile
Future of the Digital Economy: Trust Needs to be Established
-80% of consumers don't really understand how their data is being used -More transparency is needed between businesses and consumers in terms of how their info. is managed
What is a Trademark?
-A distinctive mark, motto, device, or emblem -Trademark law concerns the ownership of intellectual property that IDENTIFIES goods or services -Has been applied to the internet naming system of domain names --> violation is known as cybersquatting ex. Michelinguides.com leads you to restaurant and hotel site, trademark violation of Michelin company **Mark
Search Engine Marketing
-A form of internet marketing that seeks to generate consideration and ultimately traffic to websites by increasing their ranking on the results pages of search engines -Key players: Google, Yahoo, Bing
What is a Patent?
-A formal legal doc. that gives an inventor the exclusive right to make, use, and sell an invention for a specified period of time -Grants owner 20-year monopoly on ideas behind invention - Invention must be new, non-obvious, novel -Encourages investors -Promotes dissemination of new techniques through licensing -Raises barriers to entry -Ecommerce patents: ex. Amazon's One-click purchasing, DoubleClick's dynamic delivery of online advertising
Ad Exchanges
-A platform running an auction to determine which advertiser buys an individual impression in real time (<0.1 seconds) -Real time bidding: buying/selling of ad impressions is done in the time it takes your webpage to load -Programmatic: uses an algorithm that allows advertisers to automatically target consumers based on certain metrics -Operate by Google, Facebook, OpenX, AppNexus, and Yahoo
What is Retargeting?
-A special type of behavioral targeting -Online ad is shown to a user who searched for/saw a particular kind of content -Dynamic retargeting includes offers related to the content user previously searched for **Proven to increase sales
Advantages and Disadvantages of Guaranteed Contract
-Advantages: --> guarantees ad message gets out --> ensures brand-safe content -Disadvantages: --> old fashioned --> high contracting costs
Data Aggregation
-Aggregating different sources of information about an individual consumer --> through google account, public registry, social media sits -Aggregating information from multiple consumers to --> build associations --> make predictions
Future of the Digital Economy: Digital Transformation
-All businesses need to understand the consumer -Margin for hardware is decreasing -Consumer interactions are onmi-channel, so companies need to be visible and available at every point of contact
What are Licenses?
-Allow buyer to use the product but restrict the duplication or distribution -Shrinkwrap licenses - or break the seal licenses -Clickwrap licenses: user is required to click to accept the terms -Legal trend favors enforcement of software licenses
Google's Security Awards Program
-Awards people who find security flaws and bugs within Google --> company gave out over $2 million in 2015 to over 300 researchers -They once paid a guy $6006.13 after he bought the domain name google.com for $12 on its own website
Future of the Digital Economy: Products
-B2C --> Products have remained the same, it is the channels that have been digitally disrupted in terms of acquiring goods and services -B2B--> Digital products that are used to aid business growth are constantly being reinvented
Aggregating Information from multiple consumers can...
-Build associations using a set of training samples -Help us make predictions on hidden attributes from observations ex. from 10 Facebook likes, data collectors know your personality better than your colleagues, 70 = better than your friends, 250 = better than your family
Guaranteed Contract
-Bulk ad purchase that specifies the price, quantity, time frame, and targeting criteria ex. 200,000 impressions to US users on the New York Time's finance related pages in July
Future of the Digital Economy: Security
-Businesses are more vulnerable to cyber attacks -84% of assets are now intangible = different type of risk -75-90% of security breaches are still caused by human errors and leaks rather than hacks
Power Shift from Companies to Individuals (Social and cultural environment)
-Centralized push from companies to consumers through TV, radio, magazines, newspapers -Decentralized pull from consumers to companies through social media, networks, blogs, wikis, etc.
AdChoices Enhanced-Notice Ads (Digital Advertising Alliance Self-Regulatory Solution)
-Clicking on AdChoices icon in the ad takes user to informative website with an opt out option -900 billion AdChoices/month, 90% of online behavioral ad market committed to DAA principles -<1% of users opt out: unwilling or unaware?
Future of the Digital Economy: Investment in Human Capital and Skills
-Companies need to continue investing in the young in order to create a future workforce with relevant skills -Need mass adoption of new technical skills and language in order to decrease the knowledge and skills gap in the future
Value of Keywords for Marketers
-Competition Level: --> if high, it is difficult to achieve top rankings -Search Volume: --> if high, keyword is more effective -Value of Visitor --> if high, keyword is more effective
What is Astroturfing?
-Concealing the true source and potential bias of online reviews --> many SEO firms created fake online profiles and paid freelance writers to write bogus reviews --> New York state began fining companies who did this to protect against false advertising and deceptive business practices
Content Strategy for Website
-Create exclusive, unique, useful and interesting content -Place target phrases toward the front of sentences and paragraphs -Embed links within your content to relevant pages to establish relevancy for spiders and users -Avoid presenting your content in certain dynamic methods (Flash, Javascript) -3-5% keyword density is best but there is really no magic target density
What purposes do Cookies serve?
-Create shopping baskets to hold purchases -Recall stores sales information -Collect user data -Allow marketers to pinpoint an individuals online behavior
Future of the Digital Economy: Data
-Data between business are held tightly and not shared -Becoming a competitive asset for businesses -Consumers want the efficiencies and benefits from sharing their data
What is a Search Engine?
-Designed to search for information on the World Wide Web and FTP servers based on keywords -Search results are generally presented in a line of results often referred to as Search Engine Results Pages (SERPs)
How should firms deal with privacy issues?
-Develop user-friendly privacy controls for customers --> make privacy easy to understand --> be transparent about how personal data is used -Avoid multiple intrusions --> limit the amount of privacy intrusions such as pop up ads or targeted ads -Prevent human intrusion by using automation wherever possible
What is a Copyright?
-Establishes ownership of a written, recorded, performed, or filmed creative work -PRIMARY means of protecting most expression on the Internet -Doctrine of Fair Use: ability to copy protected materials for education and news reporting w/o the permission of the right holders -Doctrine of First Sale: limit the ability of copyright holder to obtain profit after the initial time at which the material is sold --> one who buys a copy of a book is entitled to resell, rent, or give it away, but NOT make new copies of the book
Facebook-Coined Terms that Changed the English Language
-Facebook official, friend, like, poke, stalk, tag, unfriend, unlike
What is the US Federal Trade Commission (FTC)?
-Federal agency, conducts research and recommends legislation to Congress
Social Media Activity Interpretations
-Instagram: if you use Inkwell filter, you are more likely to have depression -Facebook: certain things that you like can determine things about you such as your IQ, if you're relaxed/neurotic, if you're parents are separated or not ex. High IQ = liking The Godfather, Lord of the Rings, The Daily Show Low IQ = Harley Davidson, I Love Being a Mom, Tyler Perry
Online Expression
-Internet technology has resulted in what many consider inappropriate or untargeted types of consumer contact -The boundaries of expression will continue to be challenged by the Internet
How do you find good Keywords?
-Interview the people closest to you and your company; most affordable and accurate tool --> includes your clients, employees, family&friends, suppliers -You can ask questions like: --> what ten terms or keywords do you associate most with my business as a whole and my specific products/services? --> why did you choose to work with or buy from my company over my competitors? **Google keyword planner
5 Characteristics of Market Segments
-Measurable (size, sales value measurable) -Substantial (sales value sufficiently large) -Accessible (respond to advertising, promotion) -Differentiable (internally homogenous, externally heterogenous) -Actionable (characteristics provide supporting data for a marketing strategy, and outcomes are quantifiable)
Challenges of Programmatic Advertising
-Multidevice measurement --> 57% -Fraud --> 47% -Ad blocking: general --> 47% -Ad blocking: smartphones --> 35% -Privacy issues --> 18% -Other --> 16%
Google RankBrain Algorithm
-New part of Google's search algorithm -Third important factor after "link" and "words" -Uses machine-learning artificial intelligence system to help process Google's search results -Mainly used as a way to interpret the searches that people submit to find pages that might not have the exact words that were searched for ex. "What's the title of the consumer at the highest level of a food chain" --> "top level of the food chain"
FTC Fair Information Practice Principles (developed in 1998)
-Notice/Awareness --> sites must disclose information practices before collecting data -Choice/Consent --> must allow consumers to choose how their info. will be used -Access/Participation --> consumers should be able to review and contest the accuracy of their info. -Security --> data collectors must assure that consumer info is secure from unauthorized use -Enforcement --> must be a mechanism in place to enforce these principles **Guidelines, not laws
What is the CAN-SPAM Act of 2003?
-Permits email marketers to send unsolicited commercial e-mail as long as it adheres to 3 basic types of compliance: 1) Unsubscribe --> visible and operable unsubscribe mechanism is present in all emails 2) Content --> accurate from lines, relevant subject lines, and legitimate physical address of the publisher/advertiser is present 3) Sending Behavior --> cannot be sent to a harvested email address, contain a false header, and should contain at least one sentence
Programmatic Advertising
-Projected to make up 72% of digital display advertising -Allows for fine targeting based on the expected value of an impression rather than an audience -Allows for retargeting and behavioral targeting across multiple sites/publishers -Reduces transaction costs by facilitating advertising on publishers who can't afford a sales force -Making its way into other media types (TV, outdoor, and print)
Why does Quality Matter so much?
-Quality score affects eligibility to compete in auction, likelihood of winning auction and the actual amount paid per click -Google Adwords wants clicked page to match user's search preferences -CPC bid x Quality score = Ad rank/position
Security Issues of Mobile Paying
-Relatively free of hacking -Increased incentive for bad guys
Secure Shopping
-SSL (Secure Sockets Layer): scrambles credit card number allowing for safe transmission of the transaction --> once you have all items in the shopping cart and select "pay now", you should be brought to a secure page --> begins with "https", has a lock or key graphic in lower left/right coner of web browser -If online merchant does not accept CC's, use Paypal or Billpoint -CC companies are offering safe tips for shopping online with a CC -Recommendations from a security consultant: --> don't just assume site is secure; do your research --> you should never have to register for a website before you see the products they sell - enter fake info if you are promoted to do so
Examples of Behavioral Targeting
-Show an opt-in email popup ex. PoolFunStore, a Spanish e-commerce has the following strategy: if they do not have the email of a given user, when the user ads something to the cart, they present a pop-up asking the user for their email, states that it is to better assist user in purchasing process -Replacing or adding web content ex. Toys R Us shows creative ads focused entirely around Lego Mindstorms if the user has visited a product of Lego Mindstorms in the last 30 days -Personalized offers, coupons, and discounts ex. 5mimitos shows a discount code when a customer has made 3 or more purchases in the last 3 months -Up-selling & cross-selling ex. GemLn.com shows their customers similar but more expensive jewelry unless they detect that the user tends to buy several products in the same navigation session --> in that case they show complementary products
How are Sponsored Search Ads sold?
-Sold using an auction -Google runs an auction for every search -Advertisers only pay when a user clicks -Sponsored search auctions are based on a "Generalized Second Price" auction, because you pay the next highest bid
Search Engine Optimization (SEO)
-The process of affecting the visibility of a website or a web page in a search engine's "natural" or un-paid (organic) search results
How many data collectors are tracking an individual?
-The top 100 US sites installed 49 cookies on average -6,000 companies are currently tracking users
Keywords Demand & Competition
-The top 100 keywords that are searched the most have the highest competition and lowest conversion -The long tail keywords have the lowest competition and highest conversion (however they are searched FAR less frequently) -Fat head 18.5%, chunky middle 11.5%, long tail 70%
What are keywords?
-The words and phrases that searchers type into the text box in a search engine to find resources
How does an Individual become a Target Market?
-There is now more individual level data available --> demographic --> geographic --> behavior info. -Direct contact is facilitated by internet --> email --> smart phone --> web browser
How is online data collected?
-Through the use of digital cookies --> packets of data created and stored on the user's hard drive in response to instructions received from a web page
What is the Communications Decency Act of 1996 (CDA)?
-To stop/inhibit the profusion of porn and other obscene material -Criminalized the transmission of such materials to persons known to be under 18
What is Spoofing?
-Tricking ad buyers in to purchasing advertising space on websites that don't exist, or that the sellers don't have access to -Ad fraud costs companies around the globe $16.4 billion
Paid Search
-Type of contextual advertising where web site owners pay an advertising fee to have their web site searchresults shown in top placement on search engine result pages -It is sometimes referred to as CPC, cost-per-click, or PPC, pay-per-click, marketing bc most search ads are sold on a CPC/PPC basis
What is Behavioral Targeting?
-Uses a consumer's prior clickstream data to determine whether the consumer is a good target for an ad -Based on a consumer's web browsing behavior not demographic or gepgraphic, but can correlate with demographics or geographics -Real time data
Types of Marketing Technology Used by US Marketers
-Web and marketing analytics tools --> 75% -CRM software --> 62% -Social community mgmt platform --> 59% -Web content mgmt system --> 55% -Email service provider --> 53% -Personalization tools --> 44% -Marketing automation platform --> 40% -Demand marketing/side platforms --> 36% -None --> 1%
Links Building
-Your site's ranking in Google search results is partly based on analysis of those sites that link to you --> the quantity, quality, and relevance of links influences your ranking -Strategies: --> ask partners/customers to link you --> exchange links --> offer directories and listings of relevant resources
Advice on Designing Effective Websites
1) Accurate titles 2) Descriptive page descriptions 3) Simple URL 4) Simple website navigation 5) Quality content 6) Keyword variations 7) Anchor text 8) Organized images 9) Social media sharing
How do Search Engines work?
1) Search Engines use software called Bots or Spiders to scour the web 2) Bots & Spiders find new websites and web pages by following links on a web page 3) Once they find a web page, they "read" the content 4) Search Engine stores this data into a huge library called an Index
What % of Online Ad Spending is spent on Search?
48%
Data Management Platform
A company that tracks and profiles users and resells bundles of users to advertisers
How does Google determine what you pay for ad space?
Ad rank of person below you / your quality score + one cent
How to combat spoofing
Ads.txt: -Led by the Interactive Advertising Bureau Tech Lab, a text file was created where publishers can list approved ad sellers -Companies can then use it to create programs to make sure they don't buy unauthorized ad space
How Advertisers Target Consumers
Guaranteed Contract Ad Exchange
Data Transfer via Mobile Apps
Mobile Apps collect: -your device ID -your location -your phone # -your usage experience with an app Then: -sells this info. to third parties
Retargeting
Online ad is shown to a user who searched for (or saw) a particular kind of content
How many data collectors participate in self-regulatory organizations/have opt out options?
Only 50%
PEST
Political and legal environment Economic environment Social and cultural environment Technological environment
Digital Property
Protects intangible or intellectual property through 3 basic mechanisms: patent, trademark, and copyright
What is Spam?
The mass distribution of unsolicited electronic mail
Legal Issues that modern technology raises
Use of data and its collection Ownership of intellectual property Online expression
Behavioral Targeting
Use prior clickstream data to determine whether they are a good match for an ad
What is Selfie/Photo Mining?
Using software to scan photos to identify: -logos -emotions --> whether the person in the image is smiling or not -the scene's context -products -clothing