Transcript 11a_MarketingComm - University of Central Florida

IMS 6485: Marketing Communication
Topics
• Marketing Communication
• Online Advertising
– Banner Ads
− Rich Media Ads
– Search Engine
− E-Mail Marketing
– Online Catalogs
− Social Marketing
• Bringing Chapters 6 & 7 Together
• Metrics and Costs
• The Web Site as Marketing Communication
Dr. Lawrence West, MIS Dept., University of Central Florida
[email protected]
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IMS 6485: Marketing Communication
Marketing in the Value Chain?
INTERMEDIATE
GOODS
INVENTORY
Where do these topics fall?
Animal
INVENTORY
WHOLESALER
FACTORY
Vegetable
INVENTORY
Mineral
INFORMATION FLOWS
(SELLERS TO BUYERS)
ADVERTISING .
TRANSPORTATION
COMPANY
INVOICE .
WHOLESALER
RETAILER
ORDER INFORMATION .
FLOW OF GOODS
INFORMATION FLOWS
(BUYERS TO SELLERS)
BROKER
REQUEST INFORMATION .
PLACE ORDER .
MAKE PAYMENTS .
Dr. Lawrence West, MIS Dept., University of Central Florida
[email protected]
2
IMS 6485: Marketing Communication
Marketing Communication
• "Marketing Communications have a dual purpose:
Branding and Sales"
– Branding: Building and reinforcing a firms brands
• Inform consumers about differentiating features of
products and services
– Sales: Encouraging the consumer to buy products and
services
• Any marketing communication must
– Be aware of which purpose it is accomplishing
– Not damage other goals
Dr. Lawrence West, MIS Dept., University of Central Florida
[email protected]
3
IMS 6485: Marketing Communication
Forms of Marketing Communication
• Traditional
– Electronic media—TV, Radio, Movie product
placement
– Print—Newspaper, magazine
• Online Advertising
– Increasing its share of total advertising spending
(Figure 7.1)
– 10% of total advertising in 2009
– Expected to grow to 15% by 2012
– Growth of 200% in last five years
Dr. Lawrence West, MIS Dept., University of Central Florida
[email protected]
4
IMS 6485: Marketing Communication
Online Advertising Advantages
• Audience moving to the Internet
– And concentrations formerly found in traditional media
are dispersing as more channels and options appear
• Internet allows finer control over ad targeting
• Online advertising remains massively cheaper per
impression than traditional advertising
Dr. Lawrence West, MIS Dept., University of Central Florida
[email protected]
5
IMS 6485: Marketing Communication
Online Advertising Formats
•
•
•
•
•
•
Banner ads and pop-ups
Rich media video ads
Search engine
E-Mail marketing (and spam)
Online catalogs
Social marketing
Dr. Lawrence West, MIS Dept., University of Central Florida
[email protected]
6
IMS 6485: Marketing Communication
Banner Ads
• Earliest forms of online advertising
• What is the role/consequence of the IAB's
standardization of sizes for banner ads?
• What is the difficulty that advertisers are now finding
with banner ads?
• What were the findings regarding pop-up ads?
– What decision does this pose for your online
advertising approaches?
Dr. Lawrence West, MIS Dept., University of Central Florida
[email protected]
7
IMS 6485: Marketing Communication
Rich Media & Video Ads
• Why are rich media ads growing in popularity?
– Rich media ad spending will grow about 212% from
2008 to 2012
• 80% of Internet users now watch videos online and
"online video has become the audience aggregator of
the 21st century"
– "Exactly how to take advantage of this opportunity is
still a puzzle" (p 428)
– "the major video sites like YouTube and MySpace have
had a difficult time selling their ad space and
monetizing their huge audiences" (p 428) Why?
Dr. Lawrence West, MIS Dept., University of Central Florida
[email protected]
8
IMS 6485: Marketing Communication
Rich Media & Video Ads (cont.)
• What decisions face your firm if you wish to use rich
media advertising?
Dr. Lawrence West, MIS Dept., University of Central Florida
[email protected]
9
IMS 6485: Marketing Communication
Search Engine Advertising
• The 900 lb gorilla in online advertising
• "More than any other form of online advertising,
search engine marketing has altered the entire
marketing communications industry." (p. 429)
– Note, the quote did not say the online marketing
communications industry
– Why is this true?
• On an average day 71 million Americans will use a
search engine for 10 billion searches a month
• Click-through rate for search marketing is generally
10-12%
Dr. Lawrence West, MIS Dept., University of Central Florida
[email protected]
10
IMS 6485: Marketing Communication
Search Engine Advertising (cont.)
"How much would you pay to place your company's
listing in front of the consumer just at the precise
moment the customer is looking for products provided by
your company?"
Dr. Lawrence West, MIS Dept., University of Central Florida
[email protected]
11
IMS 6485: Marketing Communication
Search Engine Advertising (cont.)
• Three types of search engine marketing
– Organic search
– Paid inclusion
– Keyword advertising
• How does each type work?
• What are the relative costs to the advertiser of each
type and what are advertisers paying for with the more
expensive approaches?
• Should you consider search engine advertising for your
project scenario companies?
– Which type would you use? Initially? Long term?
Dr. Lawrence West, MIS Dept., University of Central Florida
[email protected]
12
IMS 6485: Marketing Communication
Network Keyword Advertising
• What is it and how does it work?
• Why are the search engines involved in this type of
advertising?
• What are the benefits and risks to:
– Search engine companies?
– Advertising companies?
– Hosting web site owners?
Dr. Lawrence West, MIS Dept., University of Central Florida
[email protected]
13
IMS 6485: Marketing Communication
Sponsorship
• What does "sponsorship" mean in a web advertising
context?
• What is necessary if you want to consider sponsorship
as a communication means?
Dr. Lawrence West, MIS Dept., University of Central Florida
[email protected]
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IMS 6485: Marketing Communication
E-Mail Marketing and Spam
• What are the economics of E-Mail marketing?
– How do these factors influence the behavior of
"legitimate" advertisers?
– How do they influence the behavior of spammers?
• "In general, e-mail works well for maintaining the
customer relationship, but poorly in acquiring new
customers" (p. 438)
• What are the economics of spamming and what has
been the impact of spam on legitimate e-mail
advertising? (And what is "legitimate" e-mail
advertising?)
Dr. Lawrence West, MIS Dept., University of Central Florida
[email protected]
15
IMS 6485: Marketing Communication
Online Catalogs
• What are the economics of online catalogs
– For online only merchants?
– For click-and-mortar merchants?
– For traditional mail-order merchants?
• Why are grid displays so popular (vs. full-page
spreads)?
• A technology question: Where is the content for online
catalogs typically stored? How then are the contents
exposed to search engines? (I don't know.)
Dr. Lawrence West, MIS Dept., University of Central Florida
[email protected]
16
IMS 6485: Marketing Communication
Social Marketing
• Getting an advertisement or other message into a social
network
– Letting the network manage distribution
• Blog advertising
– Attractive audiences
– Difficult to classify
• Social Network Advertising
– $2 billion in revenue in 2009
– "It is easy to overstate the growth in social marketing,
and it is risky to ignore it" (p. 444). Why?
Dr. Lawrence West, MIS Dept., University of Central Florida
[email protected]
17
IMS 6485: Marketing Communication
Social Marketing (cont.)
• Game advertising
– Second life spaces
– Advergames (what are they?)
– Video in-game advertising
• $510 million in revenue in 2009
• Growing at a 15% compound rate
• What are the opportunities and limitations?
• What technological innovations in gaming make this
advertising desirable?
Dr. Lawrence West, MIS Dept., University of Central Florida
[email protected]
18
IMS 6485: Marketing Communication
Bringing it Together
• Chapter 6 discussed the web as a form of ultimate
market segmentation with segments down to the
individual level
• Chapter 7 in various places mentions limitations on the
ability to quickly generate personalized ads for an
individual
• But Google, Yahoo, and Microsoft have all invested
heavily in ad network companies
• Could these technical limitations be overcome?
• What will happen when/if they are?
– Old investmentsobsolete?
Dr. Lawrence West, MIS Dept., University of Central Florida
[email protected]
19
IMS 6485: Marketing Communication
Metrics & Costs
• See the exhaustive list of terminology and metrics in
Table 7.5
– Acquisition rate
– Conversion rate
– Checkout conversion rate
– Abandonment rate
– Retention/Attrition rate
• Compare online vs. offline behavior
Dr. Lawrence West, MIS Dept., University of Central Florida
[email protected]
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IMS 6485: Marketing Communication
Metrics & Costs (cont.)
• How should you judge the success of online advertising
efforts?
• What is the complete path from an advertisement to
your measure of effectiveness?
• See cost of customer acquisition (Table 7.8)
– Internet search: $8.50
– Yellow pages: $20.00
– Online display ad: $50.00
– E-Mail: $60.00
– Television $17.00
Dr. Lawrence West, MIS Dept., University of Central Florida
[email protected]
21
IMS 6485: Marketing Communication
Metrics & Costs (cont.)
• Evaluate the costs in Table 7.9
• How do we reconcile the relatively low cost of online
banner ads with the relatively high cost of customer
acquisition for online display ads?
• What would you like to know before undertaking an
advertising campaign (in any media)?
• What would you like to know after the campaign?
• What advantages does the Web have over traditional
media with respect to answering these questions?
Dr. Lawrence West, MIS Dept., University of Central Florida
[email protected]
22
IMS 6485: Marketing Communication
The Web Site in Marketing Communications
• "In some ways, a Web site can be viewed as an extended
online advertisement." (p. 462)
• What issues should/must be considered when designing
your web site?
• What collaborations must be present within the
organization to ensure that the site is effectively
designed?
Dr. Lawrence West, MIS Dept., University of Central Florida
[email protected]
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