Week 8 Promoting Our Web Site Promoting Your Web Site • General Web promotion options • Evaluate search engines as web site promotion • Review search engine use and value as promotion option • Evaluate banner advertising as a way to promote the web site • Discuss banner advertising pros and cons • Affiliate Marketing Web site promotion Banners Affiliates Links Partners Community Search Engines Email Promotional Materials Printed Materials Print Broadcast PR Advertising Online Advertising Internet Advertising • Internet advertising revenues in the United States totaled nearly $3.3 billion for the first six months of 2003,with Q1 accounting for $1.63 billion and Q2 totaling $1.66 billion. Internet advertising revenues for the first six months of 2003 increased 10.5 percent from the same period in 2002. Performance-based Advertising Continues Sharp Growth • – Keyword search (analogous to paid search) revenue increased significantly from 9 percent of 2002 second-quarter revenues to 31 percent of 2003 second-quarter revenues. • Keyword Search Rises Sharply as Display Advertising Continues to Decline Display advertising (replaces “Ad Banners”) accounted for 22 percent of total revenues during the second quarter of 2003, down from the 32 percent reported in the second quarter of 2002. • Keyword search (analogous to paid search) revenues continue to increase sharply, accounting for 31 percent of 2003 second- quarter revenues, up from 9 percent reported the same period in 2002. Banners • Simple Banners • Animated Banners • Streaming Banners • Streaming Audio Banners • Pop-Ups • Interstitials Banners • Aren’t they dead? – Banners still make up the majority of online ad spending – CTR are lower than low in most consumer categories. – Audience reach often improves regardless of whether the banner was clicked or not. CP’s • Cost per Click (CPC) – # of times your banner is clicked on • Cost per Sale (CPS or CPT) – Usually paid as a percentage of a sales(excluding tax and shipping) • Cost per Action – Set fee based on the number of times a game was played, software downloaded etc. Impressions • Impressions: The number of times an ad is delivered. When an advertiser buys advertising on a CPM basis, the advertiser is paying for every 1,000 impressions that the site can deliver. Different sites measure an impression differently. Some sites count an impression when an ad is requested, others only when an ad is fully downloaded Interstitial • Interstitial: An advertisement that interrupts the user. This can be a full page ad that pops up on the user's screen or a pop-up window. Hits • Hit: A line that is recorded in a log file when something is requested of a web server. For example, if someone goes to a web page that has five graphics, six hits will be recorded in the log file: one hit for the HTML page and one for each of the graphics. Hits are considered an inaccurate way to measure traffic and are no longer used by savy advertisers Exposures • Exposures: The number of times that an advertisement is viewed. Used interchangeably with impressions. CPM • CPM: CPM is the cost per thousand for a particular site. A web site that charges $15,000 per banner and guarantees 600,000 impressions has a CPM of $25 ($15,000 divided by 600). (The "M" stands for the Latin mille, meaning "one thousand.") CTR • Click-through rate (CTR): The percentage of times the ad is clicked on divided by the total number of times an ad is viewed. Before you buy • What are your goals – Generate Inquiries – Generate Sales – Branding and Awareness – Driving Traffic – Research/Surveying Before you buy • Do a through analysis of Inventory and your campaign. – Which pages will you be on? – When? – What is your budget? How does this ad fit in? – Who else will be advertising at the same time? – How are you supporting this online? Radio, TV, paper? – Who is serving your ad? – How will you be tracking the results? Plan and Contract • Plan what you are going to test • Make sure you have a good contract. – Outline dates and times – Costs How to Choose • Referring URL’s • Personal experience • Good Fit – Editorial relevance – Right Market • Amazing deal • Because you want to do it. Banner Tips • Someone famous said “Nobody reads ads. People read what interests them. Sometimes it is an ad” – People don’t click on great copy and design – They click on something that interests them Banner Tips • Make sure that you drive the traffic from the banner directly to the page • Carefully plan the alt text for each banner as well as the text underneath the banner Banner Tips • Develop a campaign not a unit (15 days) • Using questions can raise CTR by about 15% • Free works best – Free Information, free white paper, free whatever • Thank you page banners tend to work best. Banner Tips • Use 25% of the space for your logo • Phrases such as “click here Now ” improve response Banner Tips • Negotiating – Tell them what you want to pay—they will get to it – Remember that the 80% of space goes unsold Banner Tips • Best times to negotiate – Timing • End of Month • End of quarter • End of year – Great deals when you purchase space for an entire year (this should be your best buy) • USA Today.com great site to consider • If we are going to sell sport outfits – “We should pay a premium to advertise on a web site devoted to sports” • Is this the right way? Test • Testing is Critical • You should test the following – Creative – Offer – Ad Units – Sites – Reach vs. composition – Targeted content v.s. targeted demographics • There should be about 20000 impressions behind each test cell. Ad Networks • Ad networks offer one stop ad shopping – Great for testing – Save time – Expertise – Service – Carry premium properties Web Advertising Networks • Offer single point of access to advertisers that want to reach millions of consumers quickly and easily. • They acquire impressions given to them by their web site “affiliates” and sell the aggravated inventory. • This process simplifies the acts of buying and selling for both the advertiser and the web publisher. Zero Based Media Buying • Testing using RON (Run of Networks) • Do, no targeting at all. • Just throw ads out there and see where you get responses. • Within a few days you can figure out where your responses are coming from. • Group your responses by category (sport, business, entertainment or people who respond to ads about my product. – You can not do that with any other media Ad Networks • He (Flycast President) recommends to his clients that begin with advertising on all Flycast sites ( close to a thousand) for a week and compare the response rates. • http://www.tribalfusion.com/www/about/vis ion.html CASIO Games 0.4% Sports 0.4% Women 0.5% Technology 0.8% Health 0.8% News 0.8% Automative 0.8% Average 0.9% Business 1.1% Shopping 1.1% Entertainment 1.1% Travel 2.4% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% Percentage Responses It ran a banner ad for a digital camera. The best category for Casio digital camera ads is travel. This test can be conducted in a week sites aimed women, games and sports are definitely not winners for the product. Would anyone guessed this without the test? In a week? Internet Advertising Bureau • IAB.net • Are the new banner sizes successful? – http://www.iab.net/iab_banner_standards/banne rsource.html Next-Generation Banners Rich Media Interactive/Animated Banners Features- In-the-banner interactivity Deliver live content such as news, daily messages Rich media contains for any bandwidths without plug-ins such as streaming audio, animations, quizes, and games Effectiveness- Increases (CTR) click-through-ratio Improves brand recognition http://www.freestyleinteractive.com http://www.freestyleinteractive.com/clients/ifuse/ Enliven and Types of Banner Ads • Enliven.com • http://www.enliven.com/campaigns/recent_ campaigns.htm – Please select from ad goal and see how banners change according to your marketing goal. Banner ad presentation methods • A. Pay per Click - Pay a web site every time someone clicks on your banner. • B. Pay per Lead - Pay a web site every time someone signs up for a service or free subscription (Sales leads) • C. Pay per Sale - Pay a web site every time someone actually buys the product or service. • D. Pay to View - Pay a web site to show your ad by category or randomly. • E. Banner Exchange - Display banner/button on your site in exchange for displays on others Where should you place your banner ads? • In traditional advertising you use media expert. – Study demographics – Figures out which media they pay attention to. – Places ads based on careful targeting and cost. – Media targeting has been a science for 30 years • Should we (modern marketers) use the same techniques for the web? 4 Steps in making a purchase • Impression: The customer clicks on a web site that has banners displayed. – 5$ to $40 per thousand impressions • Response:The person clicks on a banner in the web site, which transports the clicker to your web site • Lead: The prospect views your offering and fills out a form • Sale: The clicker buys the product Objectives in Web Advertising • There are two objectives in web advertising – Image advertisers are trying to create an image in the mind of the viewer. – Response advertisers are trying to get the viewer to respond. Year Image&Awareness Response 1 80% 20% 2 60% 40% 3 40% 60% Creative should always mirror the program How web advertising differs • On the web you can change your message every hour every day • Expose one customer to many different approaches. • Rich media ads utilizing high involvement and interactive formats, hold the promise of increasing the impact and overall effectiveness of web advertising. • You get immediate feedback on what is working and what is not. Ad Performance Evaluation • Yahoo Spreadsheet. • Please take a look at those sheets. • We will discuss the dynamics during our Monday chat • I am using these worksheets with permission from BMG Direct. Affiliates • Partners help drive revenues Affiliate Marketing • Affiliate marketing may be the fastest-growing form of online marketing today. Driving about 13% of the current online sales market, it's forecast to reach 21% by 2003, according to a report by Forrester Research Inc. • Behind that growth is affiliate marketing's ability to leverage the power of the Web and direct customers to partners on a pay-for-performance basis, said Robert Levitan, CEO of Flooz.com, New York, an online gift currency provider with an extensive affiliate network. Vocabulary • Affiliate: An individual who contracts with a merchant in order to help sell that merchant’s product. • Merchant: An individual or business who has a product and, in this case, uses affiliate programs to sell this product. What type of merchandise can I sell through affiliate marketing? • The product may be anything someone will pay for – Tangible (such as clothing), – Virtual (such as electronic books or – Downloadable software), or – Information (such as expert advice). Where do I get the merchandise? Where do I store it? • In most cases, the merchant handles – the merchandise, – actual purchase, – packaging, and – shipping, – so you usually never see the actual merchandise. What are my responsibilities as an affiliate? 1. Represent a product or service • Represent the merchant’s product or service on your site through the use of links. • These links may take the form of – a banner, – a text link, – a search box, or even – a JAVA applet. What are my responsibilities as an affiliate? 2. Drive traffic (get visitors) to your site. • Establish a steady flow of targeted traffic to your site in order to increase your potential to earn commissions. Different merchants specify what constitutes an action worthy of compensation, and these can range from a – Customer just seeing the ad – Actually purchasing the product. • How much you get paid will also differ from merchant to merchant. What are my responsibilities as an affiliate? 3. Read the contract • Information should be stated clearly in a contract. It is your responsibility to read the contract, even if it is – long, – or – boring. What are my responsibilities as an affiliate? 4. Monitor your site and links. • You must check your site and links regularly to make sure everything works properly. What are my responsibilities as an affiliate? 5. Monitor your statistics. • The merchant should provide you with statistics. • You need to monitor your statistics to make sure you are being credited properly. – Your statistics reflect the success of your merchandising plan and allow you to tweak your selling process to increase your profit. How Do I Choose a Merchant? • Stand-Alone Affiliate Program (independent): – An affiliate program run "in house" by a particular merchant. This merchant handles the contracting, sale, record keeping, and payment process. • Solution Provider: – A company, such as Commission Junction or BeFree, that assists merchants in the affiliate marketing process. – Usually, the solution provider acts as an intermediary between the merchant and affiliate, and handles most business matters such as regulating contracts and cutting checks. Reasons to use a stand-alone affiliate program 1. Access to unique items. • Artists and craftspeople frequently cannot generate the volume of product to support a large affiliate program. However, these merchants can benefit from highly targeted affiliate sales made by a select group of affiliates. – If you have a site dedicated to Shaker craftsmanship, for example, and want to sell hand-made Shaker-style chairs, then you should consider finding a quality artisan with a highly selective group of affiliates. Reasons to use a stand-alone affiliate program 2. Access to non-traditional items. • Some items, while mass-produced, do not always appeal to the majority of Web surfers. – However, if your highly targeted niche site focuses on a sub-culture, such as role playing gamers, then you should work with a merchant who caters to this community. Reasons to use a stand-alone affiliate program 3. Ability to work more closely with a merchant. • Independent merchants, especially those with highly selective affiliate programs, work with fewer affiliates, and are therefore often more accessible than the large solution providers. Customer Relationship Management CRM Framework Source : Andersen Consulting Customer Relationship Management Technology Marketing Warehousing Direct, Interactive Online data store Dialog, Real time User tools Analytics Business Customer Financial CRM working definition • CRM is the – Systematic use of information – To attract and keep customers – Through on-going dialogue – To build long lasting mutually beneficial relationships Systematic Use of Information • Database of customer information – The customer is the base level of data for storage,reporting,analysis and measurement • Analysis of customer data to predict likely future behavior – Modeling uses past behavior to predict future behavior and identifies other predictors as well. • Identifying and evaluating each relationship – CR are identified, evaluated reevaluated and continually managed according to current information To attract and keep customers • Cost efficient customer acquisition – Profiles used to select likely new customers and offers for specific customer segments • Retention efforts focused on most profitable and at risk customers – Continuous process of solidifying relationship with profitable customers, converting less profitable customers to more profitable and attempting to convert at risk customers before they are lost. • Shared information across channels for consistent communications – Customer receives consistent offers, service and messages across sales and service channels With or Without • Without CRM • CRM in practice – Customer re-enters information – Customer logs onto the Internet about music preferences every and finds information on favorite time at log-in music group, advertisements – Customer re-identifies CI every featuring specials on new CDs and time at CS dates with ticket offers to next – Call center and stores have concerts in local area, plus emails different pricing from web site telling them about new groups with a similar style or from the – Customer must return defective same record company. CD through the delivery channel- cannot switch between electronic – Customer reads about CD’s on the channels and stores. Internet, orders through the CS,exchanges at a local record store if CD is defective. Through on-going dialogue • Continuous interaction with customers based on analysis – Interactions,offers and messages are planned,personalized and delivered according to analytic insights • Real time response on the Internet – Immediate changes in advertising, information, recommendations, product features and even pricing based on web or email behavior • Listening to create a sense of intimacy with the customer – 1:1 dialogue through appropriate responses delivered real time Web Telephony Integration Email Integration Capability To build long-lasting mutually beneficial relationships • Success measured in customers and customer value – Goals, results even incentives measured in terms of customers and customer value,not transactions • Continual reevaluation of customer relationships – On-going measurement to identify profitable, at risk and underserved customers • Continual learning about customer needs – Satisfied customers make good business sense Customer Strategy should be defined and driven by Customer needs Repeat Shopping Buying Using Evangelizing Complaining Purchasing Is it easy to Was the offer Did they Do they Can I trust Was my find what I am just right for follow up? remember them to complaint looking for? Me? me? provide a satisfied? Did they use consistent Do I want to Was it easy to information Did I have to experience? Did they come back buy? made during answer the same remember here? the sale to questions that I make the again? complained Did I learn What should I after-sale Do they know when I called anything expect after experience when I have next? new? this sale? pleasant? Was the made a information I referral? Do I trust this Is it safe to gave them Do they care? Did they Company? buy here? last time used annoy me Did they add with integrity? with value to the Did it add value? additional What made If I tell them product with them information? marketing about myself after I different from will they complained? everyone make their else? product better? At its simplest • CRM refers to the use of information about a customer to make decisions about how to treat the customer. The Learning Loop Customer Strategy Track and Learn Collect and Distribute CI Dialogue and Analyze and mine Personalized CI Campaign Making the Business Case Building the CRM Organization At it is most complex CRM comprises an interconnected web of sophisticated, high tech hardware software, strategies and processes designed to help business quickly, efficiently and voluminously determine how to treat each customer in order to create a valued experience for both the business and the customer. Analytics Sales Force Automation Distribution Operations Call Campaign Partner behavior Management analysis Customer Monitoring Valuation Integrated Quality of Customer View Segmentation Service And profiling Analysis Customer Risk Service Behavioral Analysis Modeling Profitability Web analysis Intelligence Needs Sales analysis Call Center analysis E-commerce Web A data warehouse builds a strong foundation for CRM infrastructure What Customers Want • Treat me as an individual (not a number) • Demonstrate that you can use information about me in a way that makes working with you valuable ( don’t abuse my information) • Show me that you really know me no matter where I talk to you. • Care about my needs/try to anticipate them. Creating the CRM organization Buzzword Alert • Politics – The result of opposing business priorities across different units that compete for a finite pool of resources • Change Management – Guiding an organization and its members through significant alterations in organizational direction and individual responsibilities as quickly and effectively possible • Organizational design – Managing human systems and hierarchies, with supporting technical and process infrastructure, in order to most effectively deliver on the mission of the enterprise Organizing around the Customer •Who thinks about the customer? •Who advocates the customer? •Who doesn’t think about the customer? Competing Distribution Competing Products Competing Sales Territories Competing Competing Business Units Channels Organizing around the Customer • Everyone in an organization needs to think about the customer. To achieve this, an organization must encourage change by providing the tools to make the changes steadily and surely Changing how an organization thinks Customer centric metrics Changing organizational processes Pilots,business rules and business case Changing organizational structure Evolutionary not revolutionary Changing culture Short term and long term success Customer Centric Metrics Volume Metrics Customer Centric Metrics • Call Duration • Customer Retention – Encourages TSRs to make – Encourages TSRs to satisfy calls as short as possible, customers keep costs low – Creates loyalty – Creates dissatisfaction • Sales Volume • Customer Value Impact – Encourages cannibalization – Increases customer value – Encourages short term following interaction product pushes instead of – Includes additional long term CR information gathered which is useful for future campaigns Evolutionary Not Revolutionary • Why not just reorganize everyone from Marketing, IT and other teams contributing resources to the CRM effort? – Why the evolutionary small step approach? – Why not revolution? • Power may continue to reside in areas without the data, without the metrics or even without the C • Focus on bureaucratic issues detracts from C focus Why Not Revolution – Gives time to build infrastructure for: • Centralized data • Tools that make data easy to access • Skilled analysts who can mine the data • Metrics that validate C centric programs • Training to bring staff up to speed • Setting senior management expectations and educating them • Winning kudos for early successes • Creating external enthusiasm rather than resistance. Changing Structure • To maintain the momentum of a CRM initiative: – Continually demonstrate value to all stakeholders – Create a hunger among senior managers for customer centric and customer value information – Use input from anyone thinking about the customer. E-channels • E-channels both complicate and simplify CRM execution: Complicate Simplify - Stability - Loyalty - Maintenance - Information - Real time - Real time - Personalization - Cost saving - Collaborative filtering - Interactive - Profit driver - Branding - Convenience - E-strategy - Customer tracking - Competing channels - Services - Privacy - Transaction/sales tracking - Security Are we there yet? • You know you have a CRM culture when: – Everyone in the organization thinks about the C – Everyone in the organization listens to the customer – Reliable service is delivered to C consistently across all channels – Success is measured in terms of C relationships ( Value, duration, acquisition ) Where Are You on the Road to CRM? Short term goals Long term goals • Think like a customer • Listen to the customer • Be a customer • Track C behavior across all channels Organizations • Build infrastructure to centralize data • Show consistent reliable service across all channels Transitioning to • Analyze customer data • Assign value to each customer CRM culture • Determine C centric program goals and strategies • Create loyalty programs • Educate senior management and set expectations • Have established C centric incentives • Identify bottlenecks • Have owners over customers • Have centralized customer centric business rules • Think like a C • Real-time personalized dialogue with customers • Listen to the C • Anticipate customer needs Organizations • Provide consistent reliable service across all channels • Measure success of each relationship With existing • Track C behavior across all channels • Share C information with all areas of the enterprise CRM culture • Assign value to each C relationship • Build and maintain long term profitable relationships • Create loyalty programs with C • Reduce bottlenecks • Have owners over customers Summary • Organizational change is an evolutionary process, not a revolution. • Choose the parts of the organization that can be changed to focus on first. • Implementing CRM program also means changing thinking, processes, structure and engraining a customer centric culture in an organization. • Depending on where your organization stands, there are short and long term steps to take to transition to a CRM company. Long Term Planning • Develop a two year plan for making your company more customer centric. • Include measurable deliverables every three to six months. • Change from product centric to customer centric metrics. • Create cross functional teams to develop and manage customer strategy. • Implement tools that allow people from all areas to access the same CI. Obstacles • Getting participation from all areas • Technical problems centralizing data in a data warehouse • Inter-unit conflict (Marketing-IT) • Managing anxiety and resistance in an environment change • Focusing resources on new developments and existing responsibilities. Web Rings • Benefits – Free – Most rings have free traffic reports – Quick and easy to use – Avoid duplication (Each site is listed once) – Often more accurate than search engines • Examples – www.webring.org – Looplink.com » GO TO GOOGLE AND TYPE “WEB RING” Cool Sites • They are definitely worth submitting to as they get lots of traffic and exposure – www.cool.com – www.coolsiteoftheday.com – Yahoo.com/picks Award Sites • Examples – www.100hot.com – www.webbyawards.com – www.searchenginewatch.com – #1 authority on search engines. Web Rings • Web rings link sites with similar content together. • There are a couple of dozen major categories and thousands of subcategories. • Rings are generally started and maintained by one person. Web Rings • Rings must obtain a minimum of 5 sites – The average ring has anywhere from 10 –200 sites. There are about 100000 rings in existence. • They are free of charge to both visitors and members. • Seem to be working well.
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