Bài giảng E-commerce business, technology, society - Chapter 7: E-Commerce Marketing Communications

E-commerce Kenneth C. Laudon Carol Guercio Traverbusiness. technology. society.seventh edition Copyright © 2011 Pearson Education, Inc.E-commerce: Business. Technology. SocietyCopyright © 2011 Pearson Education, Inc.Chapter 7: E-commerce Marketing CommunicationsCopyright © 2010 Pearson Education, Inc.Slide 7-*Chapter 7 E-commerce Marketing CommunicationsCopyright © 2011 Pearson Education, Inc.Copyright © 2011 Pearson Education, Inc.Video Ads: Shoot, Click, BuyClass DiscussionWhat advantages do video ads have over traditional banner ads?Where do sites such as YouTube fit in to a marketing strategy featuring video ads?What are some of the challenges and risks of placing video ads on the Web?Do you think Internet users will ever develop “blindness” towards video ads as well?Slide 7-*Copyright © 2011 Pearson Education, Inc.Marketing CommunicationsTwo main purposes:Sales – promotional sales communications Branding – branding communicationsOnline marketing communicationsTakes many formsOnline ads, e-mail, public relations, Web sitesSlide 7-*Copyright © 2011 Pearson Education, Inc.Online Advertising$25 billion, 15% of all advertisingAdvantages:Internet is where audience is movingAd targetingGreater opportunities for interactivityDisadvantages:Cost versus benefitHow to adequately measure resultsSupply of good venues to display adsSlide 7-*Copyright © 2011 Pearson Education, Inc.Online Advertising from 2002-2014Figure 7.1, Page 432Slide 7-*SOURCES: Based on data from eMarketer, Inc., 2010aCopyright © 2011 Pearson Education, Inc.Forms of Online AdvertisementsDisplay adsRich mediaVideo adsSearch engine advertisingSocial network, blog, and game advertisingSponsorshipsReferrals (affiliate relationship marketing)E-mail marketingOnline catalogsSlide 7-*Copyright © 2011 Pearson Education, Inc.Display AdsBanner adsRectangular box linking to advertiser’s Web siteIAB guidelinese.g. Full banner is 468 x 60 pixels, 13KPop-up adsAppear without user calling for themProvoke negative consumer sentimentTwice as effective as normal banner adsPop-under ads: Open beneath browser windowSlide 7-*Copyright © 2011 Pearson Education, Inc.Rich Media AdsUse Flash, DHTML, Java, JavaScriptAbout 7% of all online advertising expendituresTend to be more about brandingBoost brand awareness by 10%IAB standards limit lengthInterstitialsSuperstitialsSlide 7-*Copyright © 2011 Pearson Education, Inc.Video AdsFastest growing form of online advertisementIAB standardsLinear video adNon-linear video adIn-banner video adIn-text video adAd placementAdvertising networksAdvertising exchangesBanner swappingSlide 7-*Copyright © 2011 Pearson Education, Inc.Search Engine AdvertisingAlmost 50% of online ad spending in 2010Types:Paid inclusion or rankInclusion in search resultsSponsored link areasKeyword advertisinge.g. Google AdWordsNetwork keyword advertising (context advertising)e.g. Google AdSenseSlide 7-*Copyright © 2011 Pearson Education, Inc.Search Engine Advertising (cont’d)Nearly ideal targeted marketingIssues: Disclosure of paid inclusion and placement practicesClick fraud Ad nonsense Slide 7-*Copyright © 2011 Pearson Education, Inc.Mobile AdvertisingHalf of U.S. Internet users access Internet with mobile devicesCurrently small market, but fastest growing platform (35%)Google and Apple in race to develop mobile advertising platformAdMob, iAdSlide 7-*Copyright © 2011 Pearson Education, Inc.Sponsorships and ReferralsSponsorshipsPaid effort to tie advertiser’s name to particular information, event, venue in a way that reinforces brand in positive yet not overtly commercial mannerReferralsAffiliate relationship marketingPermits 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 siteSlide 7-*Copyright © 2011 Pearson Education, Inc.E-mail Marketing and the Spam ExplosionDirect e-mail marketing Low cost, primary cost is purchasing addressesSpam: Unsolicited commercial e-mailApprox. 90% of all e-mailEfforts to control spam:Technology (filtering software) Government regulation (CAN-SPAM and state laws)Voluntary self-regulation by industries (DMA )Volunteer effortsSlide 7-*Copyright © 2011 Pearson Education, Inc.Percentage of E-mail That Is SpamSlide 7-*Figure 7.6, Page 448SOURCE: Symantec MessageLabs, 2010Copyright © 2011 Pearson Education, Inc.Online CatalogsEquivalent of paper-based catalogsGraphics-intense; use increasing with increase in broadband useTwo types:Full-page spreads, e.g. Landsend.comGrid displays, e.g. AmazonIn general, online and offline catalogs complement each otherSlide 7-*Copyright © 2011 Pearson Education, Inc.Social Marketing“Many-to-many” modelUses digitally enabled networks to spread adsBlog advertising Online ads related to content of blogsSocial network advertising: Ads on MySpace, Facebook, YouTube, etc.Game advertising: Downloadable “advergames”Placing brand-name products within gamesSlide 7-*Copyright © 2011 Pearson Education, Inc.Insight on SocietyMarketing to Children of the Web in the Age of Social Networks Class DiscussionWhy is online marketing to children a controversial practice?What is the Children’s Online Privacy Protection Act (COPPA) and how does it protect the privacy of children?How do companies verify the age of online users?Should companies be allowed to target marketing efforts to children under the age of 13? Slide 7-*Copyright © 2011 Pearson Education, Inc.Behavioral TargetingInterest-based advertisingData aggregators develop profilesSearch engine queriesOnline browsing historyOffline data (income, education, etc.)Information sold to 3rd party advertisers, who deliver ads based on profileAd exchangesPrivacy concernsConsumer resistanceSlide 7-*Copyright © 2011 Pearson Education, Inc.Mixing Offline and Online Marketing CommunicationsMost successful marketing campaigns incorporate both online and offline tacticsOffline marketingDrive traffic to Web sitesIncrease awareness and build brand equityConsumer behavior increasingly multi-channel60% consumers research online before buying offlineSlide 7-*Copyright © 2011 Pearson Education, Inc.Insight on BusinessAre the Very Rich Different From You and Me?Class DiscussionWhy have online luxury retailers had a difficult time translating their brands and the look and feel of luxury shops into Web sites?Why did Neiman Marcus’ first effort fail? Why did Tiffany’s first effort fail?Visit the Armani Web site. What do you find there?Slide 7-*Copyright © 2011 Pearson Education, Inc.Online Marketing Metrics: LexiconMeasuring audience size or market shareImpressionsClick-through rate (CTR)View-through rate (VTR)HitsPage viewsStickiness (duration)Unique visitorsLoyaltyReachRecencySlide 7-*Copyright © 2011 Pearson Education, Inc.Online Marketing Metrics (cont’d) Conversion of visitor to customerAcquisition rateConversion rateBrowse-to-buy-ratioView-to-cart ratioCart conversion rateCheckout conversion rate Abandonment rateRetention rateAttrition rateE-mail metricsOpen rateDelivery rateClick-through rate (e-mail)Bounce-back rateSlide 7-*Copyright © 2011 Pearson Education, Inc.An Online Consumer Purchasing ModelFigure 7.8, Page 469Slide 7-*Copyright © 2011 Pearson Education, Inc.How Well Does Online Advertising Work?Ultimately measured by ROI on ad campaignHighest click-through rates: Search engine ads, Permission e-mail campaignsRich media, video interaction rates highOnline channels compare favorably with traditionalMost powerful marketing campaigns use multiple channels, including online, catalog, TV, radio, newspapers, storesSlide 7-*Copyright © 2011 Pearson Education, Inc.Comparative Returns on InvestmentFigure 7.9, Page 471Slide 7-*SOURCES: Based on data from eMarketer, Inc. 2010b, Direct Marketing Association (DMA), 2009.Copyright © 2011 Pearson Education, Inc.The Costs of Online AdvertisingPricing modelsBarterCost per thousand (CPM)Cost per click (CPC) Cost per action (CPA) Online revenues onlySales can be directly correlatedBoth online/offline revenuesOffline purchases cannot always be directly related to online campaignIn general, online marketing more expensive on CPM basis, but more effectiveSlide 7-*Copyright © 2011 Pearson Education, Inc.Web Site Activity AnalysisFigure 7.10, Page 476Slide 7-*Copyright © 2011 Pearson Education, Inc.Insight on TechnologyIt’s 10 P.M. Do You Know Who Is On Your Web Site?Class DiscussionWhat are some of the services offered by Adobe’s SiteCatalyst?Why would you as a webmaster be interested in these services?Why is site analysis and customer tracking so important to online marketing?How did National Geographic use SiteCatalyst to its benefit?Slide 7-*Copyright © 2011 Pearson Education, Inc.The Web Site as a Marketing Communications ToolWeb site as extended online advertisementDomain name: An important role Search engine optimization: Search engines registrationKeywords in Web site descriptionMetatag and page title keywordsLinks to other sitesSlide 7-*Copyright © 2011 Pearson Education, Inc.Web Site FunctionalityMain factors in effectiveness of interfaceUtilityEase of useTop factors in credibility of Web sites:Design lookInformation design/structureInformation focusOrganization is important for first-time users, but declines in importanceInformation content becomes major factor attracting further visitsSlide 7-*Copyright © 2011 Pearson Education, Inc.Factors in the Credibility of Web SitesFigure 7.11, Page 481Slide 7-*SOURCE: Based on data from Fogg, et al, 2003.Copyright © 2011 Pearson Education, Inc.Table 7.9, Page 481Slide 7-*Copyright © 2011 Pearson Education, Inc.All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.Copyright © 2011 Pearson Education, Inc.  Publishing as Prentice HallCopyright © 2011 Pearson Education, Inc.