eMarketing

1
eMarketing

• Developing an Online
• Business Presence

2
eMarketing

• also known as electronic-marketing
• marketing that achieves objectives through the
  use of information technology such as through the
  Internet and its communications applications
  (email, web, etc.)

3
eMarketing Todays Agenda

• eMarketings differences
• Advertising Conventional versus online
• Online advertising Past, present, the future
• An example Kitchen Basics
• Online strategies, costs, etc.
• Communicating with customers
• Measuring marketing effectiveness

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eMarketings Differences
Marketings 4Ps

• Product
• Quality
• Models and sizes
• Packaging
• Brands
• Service
• Price
• Allowances and deals
• Distribution and retailer mark-ups
• Discount structure

• Promotion
• Advertising
• Sales promotion
• Personal selling
• Publicity
• Place
• Channels of distribution
• Outlet location
• Sales territories
• Warehousing system

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Online Advantages over Conventional Media

• Accessible by nearly anyone, anywhere, anytime
• Provides more selection, information to the
  customer
• Facilitates inexpensive dialog with customers
  (either asynchronous or synchronous) via email,
  IM, chat, etc.
• Lower communication and transaction costs
• Immediate content updates possible
• Immediate access to traffic data
• Can measure response to campaigns
• Near automatic trend analysis

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Medium Attribute Comparison
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Online Disadvantages over Conventional Media

• Internet currently limits access to certain
  demographic groups
• Trust can be more difficult to establish
• There is a constant need for new value to bring
  customers back
• Modified risks SPAM, phishing, fraud, etc.
• It does have disadvantages for certain kinds of
  businesses

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Internet Advantages

• Scalable
• Interactive
• Multimedia
• Transactional
• Consumer control
• Integrated with communications
• Multi-modal (narrowcast, broadcast, etc.)

9
Advertising Costs Conventional Media
1http//people.aol.com/people/web/adinfo/ratecard.
pdf 3.35M subscribers 2http//www.newsweekmediakit
.com/newsite/us/rates/national.shtml
3.1M 3http//sportsillustrated.cnn.com/adinfo/si/2
005RateCard63.pdf 3.15M
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Advertising Costs Conventional Media
1http//mediakit.businessweek.com/r-mag.asp 5.6M
subscribers 2http//mediakit.businessweek.com/r-bw
tv.asp weekly Sun AM in most markets
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Advertising Costs Conventional Media
1http//www.utads.com/advertise/rates/pdf/RPP1_5.p
df 2http//www.utads.com/advertise/rates/pdf/R204
_Preprints_color.pdf 3http//www.utads.com/adverti
se/rates/pdf/R206_TV_week.pdf
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Internet Ads Phase One

• Banner ads
• Sidebar ads
• Popup ads
• Floating ads
• Viral ads

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Ads Where people look
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Simple Advertising Measures
(not per-subscriber)

• Price-per-view
• Click-through-rate - the percentage of times
  an ad is viewed that the viewer actually
  clicks-through to get to the ad destination
• Ad conversions the percentage of times an ad
  is viewed, clicked-through, and the viewer
  completes a transaction

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Advertising Costs Internet MediaPhase One Costs
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Advertising Costs Internet Media

• To a rough approximation, these online per-view
  ad costs are in line with magazine per-subscriber
  ad costs

1-10
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Advertising Costs Internet Media

• Whats wrong with the Phase One
• banner/sidebar/popup/floating ad models?
• Some of them are highly irritating
• The ads are most often untargeted
• How might we improve them?
• Advertise only on topic relevant sites
• Make them personalized
• Provide them in a proper context

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Internet Ads Phase Two
ContentMatch ad

• Personalized Context Sensitive
• Step One When Im readingan article or review
  on digital cameras, display an ad ondigital
  cameras
• Step Two Make that ad informative!
• Step Three When Im searching for information on
  digital cameras, display an ad specific to
  digital cameras in the search results

Search Match ad
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Sponsored Ad Intentions

• Purpose is to provide value to the consumer
• of the ad, not simply provide eyeball time
• The ad is free, you pay for the click-thru
• based on an auction system
• If enough click-thrus dont happen, suspend the
  ad

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Sponsored Ad Requirements

• Ad must be relevant and specific to the item(s)
  being searched for or matched
• Ad provider must approve your termand URL
  target to ensure relevanceand appropriateness
• Demographic target of viewer can belocal (e.g.
  regional) or global
• Ad price is bid-based (auction)

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Example Kitchen Basics
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Phase One Sidebar Ad
1.5 per view
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Phase Two Content sponsored ad
0 per view
5 if clicked-through to Kitchen Basics
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Phase Two Search sponsored ad
0 per view
5 if clicked-through to Kitchen Basics
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Ads Where people look
http//itmanagement.earthweb.com/columns/executive
_tech/article.php/3488401
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Advertising Costs Internet Media
27
Click-thru of banner ad on foodnetwork.com
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Internet Ads Phase Three future

• More Personalized Context Sensitive
• It is possible to efficiently and compactly
  encode all of my wants, needs, and interests,
  as well as my people connections
• We need a trust-based model that shows me ads
• that I would like to see
• from
• suppliers that I trust!
• This is the next step in advertising

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Online Presence Costs

• Domain name registration typically 10/year
• Web hosting can cost as little as 50/year
• Web design costs range from 50/page up
• Web site advertising can cost as little as 0 per
  ad-view and 5 per click-through
• Time!

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Online Media

• What are some of the other things you can do
  online that are privileged with respect to
  conventional media?

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Measure whats happening on the site

• What specific pages visitors are viewing
• When they view them (date time)
• What brought them here (search engine, referring
  site, etc.)
• Their domains (e.g. aol.com) and countries

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What are visitors looking for?

• Which products
• are they most
• interested in?
• Chicken
• Beef
• Vegetable
• Seafood

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What are visitors looking for?
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What are visitors looking for?
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Provides information to customers
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Facilitates dialog with customers
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Immediate access to traffic data

• We can establish what specifics customers are
  looking for as well as where they are looking in
  near real time
• This allows us to instantly measure the
  effectiveness of new areas of our site, new ad
  campaigns, etc., even the effectiveness of
  conventional media!
• As an example short TV commercials onFood
  Network

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Immediate access to traffic data

• We can also differentiate the effectiveness of
  multiple simultaneous ad campaigns, e.g.
• TV spot
• Content-match online ad
• Search online ad
• Web banner ad

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Effectiveness of Multiple Ad Mechanisms
Date Daily Traffic
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Summary

• eMarketing is effective, evolving, and has yet
  has to reach its enormous potential
• Lower advertising, communication, and transaction
  costs
• Superior advertising model
• Tremendous capability to measure customer
  response to products, advertising, and media in
  general