Digital Marketing

the impact of digital resources on marketing, the key structural characteristics & differences between

digital resources, the evolution in focus of electronic & digital marketing

from ‘channel push’ to ‘market pull’ the key trends in digital marketing: Internet advertising,

viral marketing, email marketing, search marketing, social web marketing, gaming and mobile marketing.

the wider influences governing the effectiveness of a digital marketing strategy.

Learning Outcomes

Case Insight – Rage v the X Factor

How could an online community use social networks to oppose an international music franchise and make British music history?

https://www.facebook.com/ratm4xmas

Many of the social interactions & information exchanges are facilitated by digital technologies.

In North America, Western Europe and Oceania/Australia, Internet penetration and adoption stands at approximately 63% (Internet World Stats, 2009).

With this has come development and adoption of digital resources, from mobile technologies to internet and social web resources such as blogs, social networking sites, wiki’s and similar multi-media sharing services

Altering consumer expectations of their interaction with the web or an organization and also changing how we market in the digital space.

Introduction to Digital Marketing

?How big is Digital Marketing and what does it do for the user

Electronic & Digital Marketing

Electronic Marketing

It is not limited to one specific type or category of electronic technology (e.g., Internet, TV), but includes both older analogue and developing digital electronic technologies.

Digital Marketing

Using specifically digital electronic technologies and channels (e.g., web, e-mail, digital TV, wireless media and digital data.

Direct Marketing

Is a type of marketing that attempts to send its messages directly to customers. Not all direct marketing is electronic or using digital technologies (e.g., direct mail).

Interactive Marketing

Refers to marketing that moves away from a transaction-based effort to a conversation (i.e., Two-way dialogue) and interaction. Not all interactive marketing is electronic (e.g., face-to-face sales).

?What would you say are the main Digital Marketing Methods

Types of Digital Marketing

Types

Internet Marketing

Internet Advertising

Search Engine Marketing

Email Marketing

Viral Marketing

Mobile Marketing

Online Retailing

Advergaming

Social Web Marketing

Structural Properties of Digital Resources

It is important to understand how the many and varied digital resources differ across key structural properties.

This helps to make a more informed decision about which resources are most suitable for the achievement of your marketing objectives.

Marketing’s Digital Evolution

Web 1.0 Web 2.0

Marketing Focus Website or Content User/Participant

Approach Push Push & Pull

Market Role Audience Participants

Market Behviour Passive Passive & Active

Interactivity Machine Interactivity Person and Machine Interactivity

Product Offering Production Co-production

Communication Model Monologue (1-to-many) Dialogue (1-to-1, Many-to-Many)

Control External Pacing External & Internal Pacing

What people say... "The traditional marketing model we all grew up with is

obsolete.” James R. Stengel, CMO, P&G

"Mass marketing no longer works. It's the end of brand positioning as we know it.” Larry Light, CMO, McDonalds

“To me, the challenge is not awareness, the challenge is engagement." John Hayes, CMO, American Express

"JWT client Ford now spends only 30%-40% of its ad. budget on traditional advertising, compared with as much as 80% five years ago." Bob Jeffrey, CEO, JWT

Marketing’s Digital Evolution

?How would you advertise a product or service on the Internet

Internet AdvertisingUsed to: Increase website traffic (i.e., click-through) Encourage product trial, purchase, &

conversion Encourage repeat purchase activity & referral

Eg: display advertising, classified listings, rich media ads, search marketing.

Trends to 2009Online advertising spend was £3.5 billion in the UK, a 4.2% rise from 2008, exceeding TV advertising spend for the first time. ⇑ Growth in SE marketing (up 9.5% to £2.15 billion)⇑ Growth in video advertising (up increasing 140%,

generating £28.3 million). ⇩ Decline in display advertising (by 4.4% in 2009), ⇩ Decline in classified advertising (by 5.3% to £677.4

million down from £715.2m in 2008).

?What are the key considerations when considering for advertising on the net

Internet Advertising

Major Consid-erations:

Cost

Format

Personal-ization

Location-based

Intrusion

?What are the key considerations when advertising on the net

search engine optimization (SEO),

paid placement (PPC),

contextual advertising,

digital asset optimization

paid inclusion

Search Engine MarketingSEM is a set of marketing methods to increase the visibility of a website in search engine results pages (SERPs includes

Search [Engine] Marketing

Natural or organic listings -Search engine optimization (SEO)

<meta name=“description = > tagsOr Snippets from page

Tip: Craft engagement messages for search results pageTest with site: www.domain.com <keyphrase>

Paid listings - Pay Per Click (PPC)

<title> </title> tags

Make the campaign targeted – 80/20 rule

Gain and Confirm Permissions Personalize Message and Copy Subject line Source Address: ‘From’ Test, test, and retest Track, report, and mine results Collect and follow up responses Spam blocking

Sources: IMT (1999); Glass (2006), Westlund (2009)

Fundamentals of Email Marketing

Helps to sell product &:

Build a brand's relationship with a consumer

Create a sense of trust

Retain loyal customers

Generate revenue as well as referrals.

?How can the ‘net facilitate viral marketing...

Viral marketing: any strategy that encourages individuals to digitally pass on a marketing message to others, creating the potential for exponential growth in the message's exposure & influence.

Viral Marketing

Example of Viral Campaign - Obama’s presidential campaign, 2008

Word of mouth (WOM): internet & mobile technologies have increased it’s spread & speed of transfer with ease & low cost. Effective viral marketing

campaigning:1) Give away useful products or

services 2) Provide effortless transfer to

others 3) Scales easily from small to very

large 4) Exploits common motivations and

behaviours 5) Utilizes existing communication

networks 6) Takes advantage of others'

resourcesSource MRB

The Result: ‘Killing in the Name’, the single by RATM

released over 17 years ago, spent nothing on it’s marketing.

This campaign generated over 1 million Facebook fans, over 50,000 YouTube search results and endless Twitter chatter

In December 2009, in one week, sold over 502672 copies of it’s single making it the 2009 Christmas No.1.

Raising over £101,517.48 for the charity, Shelter.

It also set two new landmarks becoming: ◦ the UK’s first download-only Christmas

number one◦ notching up the biggest one-week download

sales total in British chart history. HMV’s Gennaro Castaldo said “This is a truly

remarkable outcome and possibly the greatest chart upset ever”.

Case Insight: Rage Against the X-Factor

Case Insight – Rage v the X Factor

2 new landmarks becoming: the UK’s first download-only Christmas

number 1 notching up the biggest one-week download

sales total in British chart history.

1 million+ Facebook fans, 50,000 + YouTube search results & endless Twitter chatter

In one week Dec ’09, sold over 502,672 copies of it’s single making it Christmas No.1 in ‘09. Raising over £101,517.48 for Shelter.

“This is a truly remarkable outcome and possibly the greatest chart upset ever”. Gennaro Castaldo HMV

The Results

Social Web [Media] Marketing

Social Web Marketing (SWM) is a form of digital marketing using the social web & social media for marketing activities - sales, PR, research, distribution, customer service.

Aim is to build a brand’s Social Brand Equity. Social capital, is the relations amongindividuals (Coleman, 1988).

Twitter Facebook Foursquare Google+ Instagram Blogs LinkedIn Yelp YouTube Delicious & Digg

Social Media Tactics

The most favoured tools are: Social networks (Facebook, LinkedIn), Followed by video sharing sites

(YouTube), Image sharing sites (Flickr), Blogging platforms (WordPress) and Microblogs (Twitter and Seesmic).

CMO Survey (2009)

Social Web [Media] Marketing Principles

Principles

Sharing Control

User-generated Content

Co-created ContentCommunity & Social Networks

Conversations & Dialogue

?Why is the mobile a leading digital marketing tool

The use of computer and video games as a medium in which to deliver advertising. Advergames consist of both membership models of multiplayers (e.g., MMORPG such as

World of Warcraft), Apps downloaded to a mobile device or added to an online social

network Viral games wherein the game is passed on from user to user on

the web.

Most advergames require users to register, allowing for the collection of data for marketing research and other marketing initiatives

It is about “perceived playfulness” from digital resources. Perceived playfulness is the degree to which current /potential

users believes that the technology will bring a sense of pleasure. It is an intrinsic motivator, influenced by the users experience

with the digital environment.

Advergaming

2 rising trends in digital gaming platforms are social networks and mobile phones.

Social Networks◦ Applications such as ‘FarmVille’ or ‘Bejeweled’ which induce

users to play games with their friends. ◦ Facebook now has had more than 52,000 applications,

allowing Facebook users to send each other virtual hugs, share movie picks & play games

◦ Every month more than 70% of Facebook users engage with platform applications, with more than 9,000 applications having over 10,000+ monthly active users (Facebook, 2010).

Mobile Phones◦ As at January 2010, Apple’s App Store was serving over

100,000 downloadable iPhone apps, with overall, iPhone owners worldwide having downloaded over 2 billion apps. Games appear to be the hottest items in the Apple App Store.

Trends in Advergaming

Jurisdiction: ◦ Where does digital marketing activity actually take place?

Ownership: ◦ Who owns the content we create and share?

Permissions: ◦ Do you have the right permissions to upload and share

content? Security:

◦ How secure is the data and information you share? Accessibility:

◦ Does everyone who wants access have access?

Key Digital Marketing Considerations

Consider the impact of digital resources on marketing.

Appreciated the key structural characteristics across which electronic and digital technologies differ.

Understood the evolution in the focus of electronic and digital marketing from ‘channel push’ to ‘market pull’.

Discuss key trends in digital marketing: Internet advertising, viral, email marketing, search marketing, social web, gaming & mobile marketing.

Outline the wider considerations that influence the effectiveness of a digital marketing strategy.

Learning Outcomes

Social Media MarketingSeminar Case Study

General Electric

GE and LinkedIn What do you think LinkedIn offers the business What does LinkedIn’s social media platform offer the business-to-business and business-to-consumer

user What benefits has GE derived from using LinkedIn? How

well did GE exploit the technologies made available to them by LinkedIn?

If you were starting your own service business providing services to your niche what forms of social media would you employ? Explain the reasons for your choices.

What lessons can we learn from social media marketing to take away & apply elsewhere?

LINKEDIN & SMM