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E-Marketing
Authors:
Darko Milutinović ([email protected])
Prof. Dr. Veljko Milutinović ([email protected])
Contents

Part One
 What is E-Marketing?
 Why E-Marketing?
 E-Marketing options
-
-
Page: 2/80
Web site building & promotion
Banner advertising
E-Mail marketing
Contents

Part Two
 E-Marketing options (advanced approach)
-
Getting noticed by search engines
Web site extras
Site tracking & usability testing
Newsletter writing tips
 Forgotten techniques: Newsgroup advertising
 Psychology & E-Marketing
Page: 3/80
Contents

Part Three
 E-Marketing options (revisited)
-
-
In defense of the banner
Catching spam message senders
 Avoiding on-line ad failure
 E-Marketing statistics
 Common mistakes which are destroying
your on-line advertising
 Example of E-Marketing plan
Page: 4/80
Introduction
What is E-Marketing?
What is E-Marketing?
E-Marketing is general term for a wide array of activities
conducted over the Internet:




Web site building & promotion
Customer communication
E-mail marketing
Newsgroup marketing
Page: 6/80
What is E-Marketing?
E-Marketing is NOT only creating a Web site!
It also focuses on:


Page: 7/80
Communicating on-line
Using customer directed dialogue
What is E-Marketing?
In short, we define E-Marketing as
all the things business does
to find, attract, and keep customers.
Page: 8/80
Why E-Marketing?
Reasons Why a Business Should
Have a Web Presence
Why E-Marketing?

Internet access is now available virtually anywhere

Internet standards enable users form all around the world
to plug into the Web

All businesses can compete
Page: 10/80
On-line Advertising Spending
2006
$15.4
2005
$12.9
2004
$10.6
2003
$8.6
2002
$6.8
2001
$5.7
2000
$5.4
0
Page: 11/80
2
4
6
Billions of dollars
8
10
12
14
16
E-Marketing options
Choose the Right Combination
of E-Marketing Options
E-Marketing options



Page: 13/80
Web site building & promotion
Banner advertising
E-mail marketing
Web site building & promotion
Tips for Building and Advertising
Effective Web sites
Web site building and promotion

Imagine a real store
-
Page: 15/80
From the street you can see the sign "Store"
You follow its path but you can't find the door
You finally find a hidden door that opens up and lets you in
Inside, its pretty dark and hard to see
Once your eyes adjust, you find a lot of products
but you can't read their descriptions
Web site building and promotion
- When you finally find something worth buying
you can't find the salesperson or the cash register
- After more searching you find the sign
telling you to mail a check and the product will be delivered
to you in three weeks
- But you wanted the product TODAY!
How long do you think a store like this would last?
Page: 16/80
Web site building and promotion

What have we learned from this story?
1) Let your intro page be simple
2) Make sure that all links are clearly marked
3) Put a link to your home page and
to your ordering page on every page
4) Lose the stupid animations
Page: 17/80
Web site building and promotion
5)
6)
7)
8)
Page: 18/80
Lose the funky backgrounds
Organize products so that they make sense
Make it easy to order
Don't make it easy for people to leave your site
Web site building and promotion

Quick tips for Web site promotion
 Hire a submission service
 Do it yourself
-
Page: 19/80
Web directories (Yahoo, Infoseek, …)
Search engines (Google, Alta Vista, …)
Newsgroups (comp.infosystems.www.announce)
Specialized newsletters (Net-Happenings,
Net Surfer Digest, …)
Banner advertising
Quick Tips for Designing
Killer Banner Ads
Banner advertising
1)
2)
3)
4)
5)
Page: 21/80
Always use the words "Click Here" or "Enter"
Animate your banners
Create quick loading banners
Use an awesome headline
The best word is SEX FREE
Banner advertising
6)
7)
8)
9)
Page: 22/80
Use blue underlined text
Use your Web site address or your logo
Use trick banners
Change banner ads frequently
E-Mail marketing
Doing E-Mail Marketing
the Right Way
E-Mail marketing

E-Mail is Internet's killer application
 There are enough mailboxes for everybody
-
According to eMarketer, there were 3.4 trillion
e-mail messages sent in the world
 E-Mail is dirt cheap
-
Page: 24/80
Cost-per-piece comparison: $0.01 - 0.25 for e-mail,
$1 - 2 piece for snail mail (Jupiter Communications)
Type of Sites That Send Marketing E-Mail
Office supplies
Investments
Toys, games &
entertainment
Travel &
entertainment
38%
37%
38%
32%
50%
Consumable
products
41%
43%
45%
43%
Collectibles &
hobbies
Personal
interests
Fashion & style
Page: 25/80
Computer &
electronics
E-Mail Marketing
UNTARGETED
NOT A SMART WAY!
Permission
Privacy
TARGETED
Newsletter publishing
Opt-in marketing
• Daily/weekly/monthly
• Autoresponder
E-Zine advertising
• Respond immediately
• Signature
Page: 26/80
E-Mail marketing

What you should NOT do
 Imagine this situation:
-
-
You're coming home and playing the answering machine
You find dozens of messages offering "amazing" products
that fill up your machine
You get BILLED for all that!
Would you like this?
Page: 27/80
E-Mail marketing

What have we learned?
 NEVER blast e-mails to unsuspecting people or
addresses (Don't SPAM!)
Page: 28/80
E-Mail marketing

How to protect yourself from SPAM?
-
-
Page: 29/80
Reply with a message telling you're not amused
Write the postmaster (system administrator)
Use message filtering systems
(in Outlook Express, Eudora, …)
If all the above fails, only a threat can help!
End of Part One
Page: 30/80
E-Marketing options
Advanced Approach
Getting noticed by search engines
How Users Find Sites?
1999 (%) 2000 (%)
Page: 32/80
Search Engine
67
81
Link from another site
39
59
Viral Marketing
28
56
Television
16
48
Guessed URL address
22
41
On-line Advertising
10
20
Radio
6
19
Direct Mail
5
10
Getting noticed by search engines
Myths
Facts
Simply submitting a Web site
to hundreds of search engines
will increase traffic
Not useful if you don't know the
search engine algorithms!
Simply inserting META tags
in Web pages
will also increase traffic
Also not useful if you don't know
how to properly
write keywords and descriptions!
You MUST use search engine positioning!
Page: 33/80
Search engine positioning tips
• Avoid or minimize frames
• Avoid splash pages
• Use keywords in image ALT tag
• Always use META tags
• Use doorway pages
<IMG WIDTH=120 HEIGHT=60
SRC="btn.gif" ALT="Keywords">
Page: 34/80
Using META tags properly
<HEAD>
<META NAME="Description" Content="Page description">
<META NAME="Keywords" Content="Keywords separated by commas">
<TITLE> Document title </TITLE>
</HEAD>
•
•
•
•
Page: 35/80
Keywords must be less than 1000 characters
Do not repeat any keyword more than three times
Description must be less than 150 characters
Use two or three keywords in the title
Keyword placement & ranking criteria
(doorway pages)
Ranking criteria:
Keyword placement:
- Keyword prominence
- In the <TITLE> tag
- Keyword frequency
- In the <META NAME="Description"> tag
- Site popularity
- In the <META NAME="Keyword"> tag
- Keyword "weight"
- In <H1> and other headline tags
- Keyword proximity
- In the <AHREF="Web address"></A> tag
- Keyword placement
- In the body copy
- Grammatical structure
- In ALT tags
- Synonyms
- In <!-- Comment> comments tags
Page: 36/80
Internet personals
Industry
& Headline News
Chat
Rooms
Postcards
& Classifieds
Web Site
Extras
Guestbooks
Sweepstakes
& Contests
Message Boards
Web Polls
Site Tracking
Software
Feedback
• Browsers
• Resolution
• Referring sites
• Referring search engines
Feedback forms/e-mails
• Referring e-mails
Marketing survey
Usability testing

Three simple truths:
 If customers find your site difficult to use,
they will get frustrated and leave
 It is not a good thing if they leave your site
 If you don't test your site with actual customers
before launch, you can't ensure that
customers won't leave your site
Page: 39/80
Usability testing
One-on-one interviews with customers that explore
their opinions about a site or site prototype
Explorative
testing
Yes
OK?
No
Yes
CLOSE?
Assessment
testing
No
More work
OK?
Yes
Evaluation
testing
Page: 40/80
No
More work

Newsletter writing tips
1)
2)
3)
4)
5)
6)
7)
Page: 41/80
Include a "What's inside" section
Create enticing headlines
Include a list of past newsletters at the bottom
Your lead article should be "Quick Tips" article
Include special offers
Include links to interesting resource sites
Do not use it solely for promoting or selling stuff!
Newsgroup advertising
The Forgotten Technique
Newsgroup advertising



Usenet is a worldwide distributed system
of on-line discussion groups, called "newsgroups"
Newsgroups have names that are
classified hierarchically by subject
Each newsgroup is dedicated to a particular theme
Moderated
newsgroups
Usenet
Non-moderated
commercial newsgroups
Page: 43/80
Newsgroup advertising

History of the Usenet
 Usenet started out in 1980 as a UNIX network
-
Only few messages per week, but the traffic soon boomed
 In the beginning, it was largely confined
to educational institutions
-
Universities, colleges and research companies
 Many customs today are from the old days
-
Page: 44/80
Tradition and belief that it's rude to advertise for profit!
Why is it rude to advertise
in moderated newsgroups?

Imagine a meeting at your workplace
-
-
-
People are discussing a certain issue
In the middle of the discussion someone walks
into the room, reads an advertisement and leaves
Now imagine if this happened each time
you have a meeting
It's very difficult to keep newsgroups interesting
and useful when people deluge them with advertisements!
Page: 45/80
How to Advertise on Usenet?
On-topic notice
comp.newprod
newsgroup
biz.* newsgroups
One-time-only
*.forsale and *.marketplace
newsgroups
.signature advertisements
Moderated newsgroups:
Commercial newsgroups: • No more than four lines
• Not only identification
• Product information
• Special offers
• Physical address
• No advertisements
Newsgroup advertising

How NOT to advertise on Usenet?




Page: 47/80
Posting off-topic messages in unrelated newsgroups
Spamming
Unsolicited junk e-mail
'Mail-merged' ads
Psychology & E-Marketing
Tell Me Why and Then I'll Buy
Psychology & E-Marketing

Effective advertising is based on
a knowledge of a human nature

Four aspects you should use
throughout your Internet advertising




Page: 49/80
Curiosity is a powerful motivation
Extravagance at a bargain price
Fear of failure and of making the wrong decision
Exclusivity
E-Marketing options (revisited)
Low click through rates prove
that banners don't work.
The Internet isn't
an evocative medium.
Banners have branding effect that
is independent of click through.
Clear, simple messages
can be memorable.
I can't remember
banners.
People don't see banners.
Research: 45% of
subjects looked
directly at banners.
Can you remember a
radio commercial?
Banners are never
relevant.
People on the Internet are
goal-oriented.
We need to make online
advertising better.
Does that mean that billboard
advertising doesn't work, too?.
In Defense of the Banner
Catching spam message senders

Not likely to catch the actual spam message senders, but you can find
the address of the upstream provider (that sells them Internet access)

Use TraceRoute (in Windows or at the http://cities.lk.net/traceroute.htm)
-
Page: 52/80
You define a domain name or an IP address
It walks from your server to specified server, showing all the "hops"
The last hop is the domain or IP address of the spam source
The next to last hop is the domain of the upstream provider
…
TraceRoute example
C:>TRACERT yahoo.com
Tracing route to yahoo.com [204.71.177.35]
over a maximum of 30 hops:
1 151 ms 161 ms 162 ms iah14.barrie.connex.net [209.212.39.193]
2 164 ms 159 ms 163 ms bcicor1-100bt-e1.barrie.connex.net [205.189.200.35]
3 270 ms 327 ms 234 ms spc-tor-7-Serial3-1.Sprint-Canada.Net [207.107.244.213]
Upstream provider:
4 261 ms 260 ms * core-spc-tor-2-POS2-0-0.sprint-canada.net [204.50.128.13]
5 * 180 ms 179 ms sl-gw21-pen-1-1-0-T3.sprintlink.net
[144.228.178.5]
[email protected]
…
10 291 ms 287 ms 320 ms isi-border2-hssi4-0-0-T3.sprintlink.net [144.228.147.10]
11 325 ms 294 ms 326 ms fe4-0.cr1.SNV.globalcenter.net [206.251.7.42]
Unlike…return address, the route
a message
takes
over
thems
Internet
14 310
ms 320
ms 306
pos5-0.cr1.NUQ.globalcenter.net [206.251.0.121]
310 msby
295ams
311 ms
yahoo.com [204.71.177.35]
cannot be15faked
spam
generator!
Trace complete.
Page: 53/80
127 255
220 200
What to do if address is written
in a strange way?
http://4291330012
4,291,330,012
• 4,291,330,012 ÷ 224 = 255.78320
• 4,291,330,012 - (255 × 224) = 13,139,932
• 13,139,932 ÷ 216 = 200.49945
• 13,139,932 - (200 × 216) = 32,732
• 32,732 ÷ 28 = 127.85938
• 32,732 - (127 × 28) = 220
Page: 54/80
http://
.
.
.
/
Avoiding on-line ad failure
Avoiding on-line ad failure

On-line advertising is more art than a
science

Important things to avoid




Page: 56/80
Cluttered ads
Ads… that… make… you… wait…
Ads that won't leave you alone
Tricky ads
Common mistakes which are
destroying your on-line advertising
1) You have a short-sighted vision
2) You aren't willing to think
outside the box
3) You have fallen in love
with the wrong product
4) You don't have a Unique Web Position
5) You haven't researched
your market enough
6) You aren't dealing
with people as individuals
7) You give up too soon
E-Marketing statistics
What tactics are most effective/used by
Brand Advertisers?
Rank
Page: 60/80
On-line Techniques Rating (%) Use(%)
1
Traditional Advertising
58
69
2
Links
47
76
3 Search Engine Positioning
37
73
4
On-line Advertising
34
56
5
Public Relations
28
64
6
Packaging
26
53
7
E-Mail
22
55
8
Direct Mail
14
34
9
Incentives
8
22
10
Sweepstakes
7
21
What tactics are most effective/used by
Direct Marketers?
Rank
On-line Techniques
Rating*
Use(%)
1
Customer/Visitor E-Mail
4.02
54
2
On-line PR
3.59
30
3
Referral Partnerships
3.49
20
4
Sponsorships
3.48
18
5
Affiliate Programs
3.44
27
6 Search Engine Positioning
3.34
66
7
Reciprocal Ads/Links
3.32
43
8
Screaming Video Ads
3.31
4
9
Banners/Links
3.05
38
10
Unsolicited E-Mail
2.67
11
* 1 = Not at all effective and 5 = Very Effective
Page: 61/80
Alta Vista
Netscape
Webcrawler
Millions of dollars
Page: 62/80
ESPN.com
Go.com
Weather.com
Lycos
Excite
AOL.com
Yahoo!
Top on-line revenue by site
(first-half 2001)
Top on-line spenders by company &
top on-line spending by industry
General Motors $25.4
eBay $24.3
Amazon.com Inc. $16.2
Insurance & Real Estate
Gov. & Organizations
Telecomm.
Classmates Online $15.1
Auto Industry
J.P. Morgan Chase $14.9
Public Transportation,
Hotels & Resorts
Barnes & Noble $14.3
Verisign Inc. $13.7
AOL Time Warner $13.3
Providian Corp. $12.7
Bank One Corp. $11.1
Millions of dollars
Page: 63/80
Local Serv. & Amus.
Computers & SW
Financial
Media & Advertising
Retail
Top 10 Web Advertisers (June 2001)
- At Home Internet Users Impressions
(000,000)
Reach
(%)
1 Microsoft
1,842
49.5
2 TRUSTe
1,597
31.4
3 Yahoo!
1,125
37.9
4 eBay
821
30.3
5 Amazon
701
51.7
6 Barnes & Noble
700
48.7
7 ClassMates
692
46.1
8 AOL
679
38.7
9 Providian
662
41.0
10 Netscape
649
31.1
Rank Advertiser
Page: 64/80
Top 10 Web Advertisers (June 2001)
- At Work Internet Users Impressions
(000,000)
Reach
(%)
1 Microsoft
1,509
63.4
2 TRUSTe
1,263
49.2
3 Yahoo!
628
50.6
4 Netscape
615
43.7
5 eBay
593
37.3
6 Amazon
487
47.7
7 Orbitz LLC
467
40.4
8 Barnes & Noble
467
4.6
9 Providian
432
60.0
10 ClassMates
411
53.1
Rank Advertiser
Page: 65/80
Example of E-Marketing plan
Music Star "Wanna-be" Case Study
Example of
E-Marketing plan

E-Marketing plan for a singer who has just
released his first CD and who wants to
become a star in the music industry

Objective: To utilize the Internet to its fullest
potential to increase amount of memberships
in the fan club and Web site visitors
Page: 67/80
During Web Site
Creation
Budget
Newsgroups
E-Marketing Plan
Unofficial Sites
Banners
Off-line Promotion
Software
On-line Promotion
Market Survey
When Web Site
is completed
Budget

The budget should include:
1. Cost of submission software
2. Cost of site tracking
3. The cost of:
-Banner displays on industry related sites
-Mailing list sponsorship for industry related mailers
4. Cost of off-line advertising
(i.e. magazines, newspapers, brochures, …)
5. Market Research Survey
Page: 69/80
During Web Site
Creation
Budget
Newsgroups
E-Marketing Plan
Unofficial Sites
Banners
Off-line Promotion
Software
On-line Promotion
Market Survey
When Web Site
is completed
Newsgroups
1.
Is there an existing newsgroup with the singer's name?
•
•
2.
3.
Page: 71/80
If there is, on a daily basis:
- Hang out and read the posts
- Post to the newsgroup
If not:
- Start the new newsgroup and do the same as above
- You may start posting as a fan
Advertise the newsgroup everywhere on the Internet
Visit other music related newsgroups and add posts
During Web Site
Creation
Budget
Newsgroups
E-Marketing Plan
Go through all unofficial
sites to verify accurate
information and email
corrections if necessary
Unofficial Sites
Banners
Off-line Promotion
Software
On-line Promotion
Market Survey
When Web Site
is completed
During Web Site
Creation
Budget
Newsgroups
E-Marketing Plan
Unofficial Sites
Banners
Off-line Promotion
Software
On-line Promotion
Market Survey
When Web Site
is completed
During Web Site
Creation
Budget
Newsgroups
E-Marketing Plan
Unofficial Sites
Banners
Off-line Promotion
Software
On-line Promotion
Market Survey
Submission and
Site Tracking Software
When Web Site
is completed
During Web Site
Creation
Budget
Newsgroups
E-Marketing Plan
Unofficial Sites
Banners
Off-line Promotion
Software
On-line Promotion
Market Survey
When Web Site
is completed
Market Research Survey
1.
Consider hiring one of the
Internet marketing research companies
2.
Add the on-line survey/feedback form on the singer's site
to allow visitors to offer comments and suggestions
3.
When results are in, decide on changes if necessary
Page: 76/80
During Web Site
Creation
Budget
Newsgroups
E-Marketing Plan
Unofficial Sites
Banners
Off-line Promotion
Software
On-line Promotion
Market Survey
When Web Site
is completed
During Web Site
Creation
Budget
Newsgroups
E-Marketing Plan
Unofficial Sites
Banners
Off-line Promotion
Software
On-line Promotion
Market Survey
When Web Site
is completed
Off-line promotion
1.
Print 'Check us out on the Web' pamphlets
2.
Add the Web address to all stationery
3.
Place advertisements or send press releases
to industry related magazines and newspapers
4.
Read all Internet magazines
Page: 79/80
The End
Darko Milutinović ([email protected])
Prof. Dr. Veljko Milutinović ([email protected])
http://galeb.etf.bg.ac.yu/~vm