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E-commerce Chapter 7.pptx

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E-commerce Chapter 7.pptx

  1. 1. Chapter 7 E-commerceMarketing Communications Copyright © 2013 Pearson Education, Inc.
  2. 2. Class Discussion Copyright © 2013 Pearson Education, Inc. Slide 7-* Video Ads:Shoot,Click, Buy ■ What advantagesdovideoadshaveover traditional bannerads? ■ Where dositessuchasYouTubefit in to a marketingstrategy featuring videoads? ■ What aresomeofthe challengesandrisksof placingvideoadsonthe Web? ■ Doyouthink Internet userswill ever develop “blindness”toward videoadsas well?
  3. 3. Marketing Communications Copyright © 2013 Pearson Education, Inc. Slide 7-* ■ Twomain purposes: ❖ Sales—promotional sales communications ❖ Branding—branding communications ■ Online marketing communications ❖ Takes many forms ❖ Online ads, e-mail, public relations, Web sites
  4. 4. OnlineAdvertising Copyright © 2013 Pearson Education, Inc. Slide 7-* ■ $37.3 billion in 2012 ■ Advantages: ❖ Internet is where audience is moving ❖ Ad targeting ❖ Greater opportunities forinteractivity ■ Disadvantages: ❖ Cost vs. benefit ❖ How to adequately measure results ❖ Supply of good venues to display ads
  5. 5. Online Advertisingfrom 2004–2016 Figure 7.1, Page428 SOURCES: Based on data from eMarketer, Inc., 2012a, 2012b Copyright © 2013 Pearson Education, Inc. Slide 7-*
  6. 6. Formsof Online Advertisements Copyright © 2013 Pearson Education, Inc. Slide 7-* ■ Display ads ■ Richmedia ■ Video ads ■ Searchengine advertising ■ Mobile andlocaladvertising ■ Socialnetworkadvertising:socialnetworks,blogs,and games ■ Sponsorships ■ Referrals ■ E-mailmarketing ■ Online catalogs
  7. 7. DisplayAds Copyright © 2013 Pearson Education, Inc. Slide 7-* ■ Bannerads ❖ May include animation ❖ Link toadvertiser’s Web site ❖ Can track user ❖ IABguidelines ■ Pop-upads ❖ Appear without user calling for them ❖ Provoke negative consumer sentiment ❖ Twice as effective as normal banner ads
  8. 8. RichMedia Ads Copyright © 2013 Pearson Education, Inc. Slide 7-* ■ UseFlash,HTML5,Java, JavaScript ■ About5%of online advertisingexpenditures ■ Tendto bemore about branding ■ Boostbrandawarenessby 10% ■ Farmore effective than banner ads ■ Interstitials ■ Full-page ad between Web pages
  9. 9. VideoAds Copyright © 2013 Pearson Education, Inc. Slide 7-* ■ Fastestgrowingform of online advertising ■ IABstandards ❖ Linear video ad ❖ Non-linear video ad ❖ In-banner video ad ❖ In-text video ad ■ Specializedvideoadvertising networks ■ Retail sitesare largest usersof video ads ❖ Zappos—created video for each of 100,000 product
  10. 10. SearchEngine Advertising Copyright © 2013 Pearson Education, Inc. Slide 7-* ■ 46.5%of online adspendingin 2012 ■ Types: ❖ Keyword paid inclusion ❖ Advertising keywords ❖ Network keyword advertising or context advertising ■ Nearly ideal targeted marketing
  11. 11. SearchEngineAdvertising (cont.) Copyright © 2013 Pearson Education, Inc. Slide 7-* ■ Socialsearch ❖ Reviews friends recommendations,searches, Likes, andWeb site visits ■ Searchengine issues: ❖ Paid inclusion and placement practices ❖ Link farms ❖ Content farms ❖ Click fraud
  12. 12. Mobile andLocalAdvertising Copyright © 2013 Pearson Education, Inc. Slide 7-* ■ 122millionusersaccessInternet from smartphones,tablets ❖ Messaging ■ Very effective for local advertising ❖ Display ads ❖ Search ❖ Video ■ Localadvertising ❖ Enabled by mobileplatform ❖ 50% of mobileadvertising
  13. 13. SocialAdvertising Copyright © 2013 Pearson Education, Inc. Slide 7-* ■ Socialadvertising ❖ Uses social graph to promote message ❖ Many-to-many model ■ Socialnetwork advertising ❖ Social network sites are advertising platforms ■ Corporate Facebook pages ■ Twitter ads ❖ Promoted tweets ❖ Promoted trends ❖ Promoted accounts
  14. 14. SocialAdvertising (cont.) Copyright © 2013 Pearson Education, Inc. Slide 7-* ■ Blogadvertising ❖ Top tactic ❖ 72 million readblogs ❖ Blog readers are ideal demographic ■ Gameadvertising ❖ In-game billboard displayads ❖ Branded virtual goods ❖ Sponsored banners ❖ Branded games “advergames”
  15. 15. Sponsorshipsand Referrals Copyright © 2013 Pearson Education, Inc. Slide 7-* ■ Sponsorships ❖ Paid effort to tie advertiser’s name to particular information, event, and venue in a way that reinforces brand in positive yet not overtly commercial manner ■ Referrals ❖ Affiliate relationship marketing ❖ Permits firm to put logo or banner ad on another firm’s Web site from which users of that site can click through to affiliate’s site
  16. 16. Insight on Society: Class Discussion Copyright © 2013 Pearson Education, Inc. Slide 7-* Marketing to Childrenof the Web in the Ageof Social Networks ■ Whyisonlinemarketingto childrenacontroversial practice? ■ What isthe Children’sOnlinePrivacyProtectionAct (COPPA)andhow doesit protect the privacyof children? ■ Howdocompaniesverify the ageof online users? ■ Shouldcompaniesbeallowedto targetmarketing efforts to childrenunder the ageof 13?
  17. 17. Insight on Society: Class Discussion Copyright © 2013 Pearson Education, Inc. Slide 7-* Marketing to Childrenof the Web in the Ageof Social Networks In October 2012, the operator of fan sites for Justin Bieber, Selena Gomez, Rihanna, and others agreed to pay a $1 million penalty for collecting personal information from children such as names, e-mail addresses, street addresses, and cell phone numbers without their parents’ permission. Previously, in May 2011, Disney’s Playdom was fined $3 million, the largest penalty to date, for collecting and disclosing children’s information without parental approval.
  18. 18. E-mailMarketing andthe SpamExplosion Copyright © 2013 Pearson Education, Inc. Slide 7-* ■ Direct e-mail marketing ❖ Primary cost is purchasing addresses ■ Spam:Unsolicited commercial e-mail ❖ Approximately 72%of all e-mail ❖ Efforts to controlspam: ■ Technology (filtering software) ■ Government regulation (CAN-SPAMand state laws) ■ Voluntary self-regulation by industries (DMA)
  19. 19. Percentageof E-mailThat Is Spam Figure 7.5, Page450 SOURCE: Based on data from Symantec, 2012. Copyright © 2013 Pearson Education, Inc. Slide 7-*
  20. 20. BehavioralTargeting Copyright © 2013 Pearson Education, Inc. Slide 7-* ■ Usingconsumeroffline andonlinebehaviorto modify advertising message ■ Personalinformation soldto thirdpartyadvertisers, who deliver adsbasedon profile ❖ Search engine queries, browsing history, social network data, offline data ■ Adexchanges: ❖ Enable advertisers to retarget ads at users as they browse ■ 75%of U.S.advertisersemploysomeformof behavioral targeting
  21. 21. Mixing Offline andOnline Marketing Communications Copyright © 2013 Pearson Education, Inc. Slide 7-* ■ Most successfulmarketingcampaigns incorporateboth online andoffline tactics ■ Offline marketing ❖ Drives traffic to Web sites ❖ Increases awareness and builds brand equity ■ Consumerbehaviorincreasinglymulti- channel ❖ 80% consumers research online before buying offline
  22. 22. Insighton Business: Class Discussion Copyright © 2013 Pearson Education, Inc. Slide 7-* Arethe Very RichDifferent from Youand Me? ■ Whyhaveonline luxury retailers hada difficult time translatingtheir brandsandthe lookandfeel of luxury shopsinto Web sites? ■ WhydidNeimanMarcus’first effort fail? ■ WhydidTiffany’s first effort fail? ■ VisittheArmaniWebsite.What doyoufind there?
  23. 23. Online Marketing Metrics: Lexicon Copyright © 2013 Pearson Education, Inc. Slide 7-* ■ Audiencesizeor market share ❖ Impressions ❖ Click-through rate(CTR) ❖ View-through rate(VTR) ❖ Hits ❖ Pageviews ❖ Stickiness (duration) ❖ Unique visitors ❖ Loyalty ❖ Reach ❖ Recency ■ Conversionto customer ❖ Acquisition rate ❖ Conversionrate ❖ Browse-to-buy-ratio ❖ View-to-cart ratio ❖ Cart conversion rate ❖ Checkoutconversion rate ❖ Abandonment rate ❖ Retention rate ❖ Attrition rate
  24. 24. Online Marketing Metrics (cont.) Copyright © 2013 Pearson Education, Inc. Slide 7-* ■ Socialmarketing ❖ Grossrating points ❖ Applause ratio ❖ Conversation ratio ❖ Amplification ❖ Sentiment ratio ❖ Duration of engagement ■ E-mailmetrics ❖ Open rate ❖ Delivery rate ❖ Click-throughrate (e-mail) ❖ Bounce-back rate ❖ Unsubscribe rate ❖ Conversion rate (e-mail)
  25. 25. AnOnline ConsumerPurchasing Model Figure 7.6, Page463 Copyright © 2013 Pearson Education, Inc. Slide 7-*
  26. 26. HowWell DoesOnline Advertising Work? ■ UseROIto measuread campaign ■ Highestclick-throughrates:Searchengine ads,permissione-mail campaigns ■ Richmedia, videointeraction rates high ■ Onlinechannelscomparefavorablywith traditional ■ Most powerful marketingcampaignsuse multiple channels,includingonline, catalog, Copyr T igh V t © ,20 r1a 3 Pd eari so o n E ,du n cate ion w , Inc s . papers, stores Slide 7-*
  27. 27. ComparativeReturnson Investment Copyright © 2013 Pearson Education, Inc. Slide 7-* Figure 7.7, Page465 SOURCES:Industry sources;authors’estimates
  28. 28. TheCostsof OnlineAdvertising Copyright © 2013 Pearson Education, Inc. Slide 7-* ■ Pricingmodels ❖ Barter ❖ Cost perthousand (CPM) ❖ Cost per click(CPC) ❖ Cost peraction (CPA) ■ Online revenues only ❖ Sales can be directly correlated ■ Bothonline/offline revenues ❖ Offlinepurchases cannot always be directly related to online campaign ■ In general,onlinemarketingmoreexpensiveon CPMbasis,but more effective
  29. 29. Web SiteActivity Analysis Figure 7.8, Page469 Copyright © 2013 Pearson Education, Inc. Slide 7-*
  30. 30. Insight on Technology: Class Discussion Copyright © 2013 Pearson Education, Inc. Slide 7-* It’s 10 P.M. DoYouKnowWho Is onYourWeb Site? ■ What are someof the servicesoffered by Adobe’sSiteCatalyst? ■ Whywouldyouasawebmasterbe interested in theseservices? ■ Whyissiteanalysisandcustomertrackingso important to onlinemarketing? ■ HowdidNBCUniversaluseSiteCatalystto its benefit?
  31. 31. TheWeb SiteAsa Marketing Communications Tool Copyright © 2013 Pearson Education, Inc. Slide 7-* ■ Effective userequires ❖ Appropriate domain name ❖ Proper Web sitedesign ❖ Search engine optimization ■ Search enginesregistration ■ Keywords in Web site description ■ Metatags and page title keywords ■ Links to other sites
  32. 32. Web SiteFunctionality Copyright © 2013 Pearson Education, Inc. Slide 7-* ■ Main factorsin effectivenessof interface ❖ Utility ❖ Ease ofuse ■ Topfactorsin credibility of Web sites ❖ Design look ❖ Information design/structure ❖ Information focus ■ Forfirst-time users,organizationis key ■ Forreturn users:Information ismajor factor
  33. 33. Factorsin the Credibility of Web Sites Figure 7.10, Page475 SOURCE:Basedon data from Fogg,et al., 2003. Copyright © 2013 Pearson Education, Inc. Slide 7-*
  34. 34. Table 7.9, Page476 Copyright © 2013 Pearson Education, Inc. Slide 7-*

Hinweis der Redaktion

  • Cost vs. benefit
    Like the benefit should outweigh the cost
  • I think both are increasing gradually
  • Video ads
    Video ads are the most increasing form of online advertisement
  • A sponsorship is a paid effort to tie an advertiser’s name to particular information, an
    event, or a venue in a way that reinforces its brand in a positive yet not overtly commercial
    manner.
  • sent directly to interested
    users e-mail marketing messages
  • HOW WELL DOES ONLINE ADVERTISING WORK?
    What is the most effective kind of online advertising? How does online advertising
    compare to offline advertising? The answers depend on the goals of the campaign, the nature of the product,

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