Search Engines by jianghongl


									      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
• Evaluate banner advertising as a way to promote
  the web site
• Discuss banner advertising pros and cons
• Affiliate Marketing
          Web site promotion

          Affiliates             Links
       Engines                       Email

 Materials                               Printed Materials
           Print     Broadcast PR
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
• 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.
•   Simple Banners
•   Animated Banners
•   Streaming Banners
•   Streaming Audio Banners
•   Pop-Ups
•   Interstitials
• Aren’t they dead?
  – Banners still make up the majority of online ad
  – CTR are lower than low in most consumer
  – Audience reach often improves regardless of
    whether the banner was clicked or not.
• 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: 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: 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.
• 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: The number of times that an
  advertisement is viewed. Used
  interchangeably with impressions.
• 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.")
• 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
   –   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
• Free works best
  – Free Information, free white paper, free
• 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
                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 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?
• 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
• They acquire impressions given to them by their
  web site “affiliates” and sell the aggravated
• This process simplifies the acts of buying and
  selling for both the advertiser and the web
            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
• 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.

             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
Would anyone guessed this without the test? In a week?
   Internet Advertising Bureau
• Are the new banner sizes successful?
        Next-Generation Banners Rich Media
           Interactive/Animated Banners
 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
 Increases (CTR) click-through-ratio
 Improves brand recognition
Enliven and Types of Banner Ads
  – 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
• 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
  –   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
• 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
• Rich media ads utilizing high involvement and
  interactive formats, hold the promise of increasing
  the impact and overall effectiveness of web
• 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.
• 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, New York, an online gift
  currency provider with an extensive affiliate network.
• 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
      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
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

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
           What are my responsibilities as an
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
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
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
     Reasons to use a stand-alone affiliate
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
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
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
          CRM Framework

Source : Andersen Consulting
Customer Relationship
   Technology                     Marketing
   Warehousing                    Direct, Interactive
  Online data store               Dialog, Real time
     User tools

       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
  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
   – 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
   – 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
   – 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

        Shopping        Buying           Using                             Evangelizing    Complaining

      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
            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

Dialogue and                                 Analyze and mine
Personalized                                       CI

               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
             Quality of        Customer View         Segmentation
              Service                                And profiling
     Service Behavioral
                                          analysis       Call Center
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
• Change Management
   – Guiding an organization and its members through
     significant alterations in organizational direction and
     individual responsibilities as quickly and effectively
• Organizational design
   – Managing human systems and hierarchies, with
     supporting technical and process infrastructure, in order
     to most effectively deliver on the mission of the
      Organizing around the Customer
      •Who thinks about the customer?
      •Who advocates the customer?
      •Who doesn’t think about the customer?


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
 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
         Changing Structure
• To maintain the momentum of a CRM
  – Continually demonstrate value to all
  – Create a hunger among senior managers for
    customer centric and customer value
  – Use input from anyone thinking about the
•   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
  – 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
                       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
• 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
• Change from product centric to customer centric
• Create cross functional teams to develop and
  manage customer strategy.
• Implement tools that allow people from all areas
  to access the same CI.
• 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
               » GO TO GOOGLE AND TYPE “WEB RING”
                Cool Sites
• They are definitely worth submitting to as
  they get lots of traffic and exposure
                 Award Sites
• Examples
  –   #1 authority on search engines.
               Web Rings
• Web rings link sites with similar content
• 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
• They are free of charge to both visitors and
• Seem to be working well.

To top