M2 - Digital Marketing and Advertising - KD3 PDF

M2:Digital Marketing Foundations  Module Objectives Describe how computers and servers communicate to enable people to interact with web pages on the internet. Name the three objectives of a website. Evaluate a website’s performance on its three general objectives and identif...

M2:Digital Marketing Foundations  Module Objectives Describe how computers and servers communicate to enable people to interact with web pages on the internet. Name the three objectives of a website. Evaluate a website’s performance on its three general objectives and identify specific areas for improvement.  Module Overview State of Internet and Mobile Usage in Canada Digital Terminology Digital Objectives Amazon Example Digital Display Advertising Canada and the Internet  Distribution of web traffic in Canada from 2015 to 2022, by device Canada distribution of online traffic 2015-2022, by device 5 Description: In January 2022, it was found that more than 38.04 percent of web traffic in Canada was generated through mobile phones, down from a 40.95 mobile traffic share in 2020. Laptops and desktops still account for the majority of web traffic in Canada. Read more Note(s): Canada; January 2015 to January 2022; based on each device's share of the total web pages served to web browsers Source(s): StatCounter 9 Description: In 2022, there were 35.93 million mobile internet users in Canada. This figure is projected to grow to 39.15 million users by the end of 2027. At the end of 2021, Halifax was the city with the highest mobile download speed in the country. Read more Note(s): Canada; 2018 to 2022; mobile phone users of any age who access the internet via mobile phone (browser or app) at least once per month; use of SMS/MMS is not considered mobile internet access; * Forecast Read more Source(s): Statista  Share of Canadians who could not live without their mobile phone as of June 2021 Canadians who could not live without their mobile phone 2020-2021 50% 45.03% 45% 40% 34.44% Share of respondents 35% 30% 25% 20.52% 20% 15% 10% 5% 0% Any agree (4-5) Neutral (3) Any disagree (1-2) 19 Description: It is hard to imagine day to day life without mobile phones. According to a survey of people in Canada conducted between July 2020 and June 2021, 45 percent of Canadians agreed, stating that the could not live without their mobile phones. Less than four in 10 Canadians disagreed with this statement. Read more Note(s): Canada; July 2020 to June 2021; 31,856 respondents; 14 years and older; Canadians Source(s): Vividata  Most popular online activities via mobile device according to internet users in Canada as of March 2022 Canada leading mobile internet activities 2022 Share of respondents 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Social media 42% 40% Instant messaging 29% 19% Banking 17% 16% Listening to music/radio/podcasts 14% 12% Telephone/video chat 8% 8% Looking for information related to hobbies/interests 8% 6% Gaming 6% 3% Research for your job or business 3% 22 Description: A March 2022 survey of internet users in Canada found that 42 percent of mobile audiences used their device to access social media. Communication activities such as e-mail and instant messaging also ranked among the most popular mobile activities of Canadian users. Read more Note(s): Canada; March 2022; 1,513 respondents; 18 years and older; among spondents who use smartphone/mobile to access the internet Source(s): CIRA; The Strategic Counsel  So how do marketers respond to this technology? Visual overview of global marketing technology space Aids in visualizing and categorizing the vast marketing technology options Helps marketers identify tools for automation, insights, and multi-channel management Major categories include : Advertising & Promotion Content & Experience Social & Relationships Commerce & Sales Data, and Management Subcategories cover specific tools like SEO, CRM, Email Marketing, etc Martech 5000 Link Digital Terminology  Technical Terms Server-side programming language Used to create dynamic web content before it’s sent to the client’s browser Code runs on the server Handles tasks like processing form data, managing database interactions, and controlling application logic PHP, Ruby, Python, Java, and.NET Client-side programming language Responding to user events (clicks, typing), animations, and data validation before submission to the server JavaScript is the most prominent client-side programming language HTML and CSS, while not programming languages, are also crucial to client-side development Client-side vs. Server-side Client-side Server-side HTML PHP JavaScript Java CSS Python C++ Ruby on Rails Static Dynamic  More Technical Terms URL (Uniform Resource Locator) Domain name IP address (Internet Protocol) Server Cookie Web browser Transport layer security (TLS) Web hosting  Internet Acronyms URL- Uniform Resource Locator IP address- Internet Protocol address HTML-Hypertext Markup Language HTTP- Hypertext Transfer Protocol HTTPS- Secure version of HTTP FTP- File Transfer Protocol  URL vs. Domain Name Domain Name: https://amazon.com URL: https://www.amazon.ca/backpacks.htm Server Cookies  No Cookies (same site, different displayed options) Browsers  Browsers 1995-2000 Netscape Navigator: Initially the dominant browser in the mid-90s Internet Explorer: Released as part of the Windows 95 Plus! pack in 1995, it quickly rose to dominate the market by the late 90s due to its bundling with Windows OS 2001-2005 Internet Explorer: Continued its dominance with over 90% market share at its peak around 2003 Mozilla Firefox: Launched in 2004 as a faster, more secure alternative to IE, rapidly gaining popularity 2006-2010 Internet Explorer: Still dominant, but gradually losing market share. Mozilla Firefox: Continued to grow in popularity, introducing features like tabbed browsing and extensions. Google Chrome: Launched in 2008, Chrome gained a substantial user base quickly due to its speed, simplicity, and integration with Google services.  Browsers 2011-2015 Google Chrome: Became the most popular browser, overtaking Internet Explorer and Firefox. Mozilla Firefox: Maintained a significant but smaller user base. Internet Explorer: Continued to decline as users migrated to more modern browsers. 2016-2020 Google Chrome: Continued to dominate the browser market. Mozilla Firefox: Kept innovating with privacy-focused features. Microsoft Edge: Introduced in 2015 as the successor to Internet Explorer, built with a new engine and later adopting the Chromium engine in 2019. Safari: Remained popular particularly among Mac and iOS users, with significant improvements and updates. 2021-2025 Google Chrome: Remains the most widely used browser globally. Mozilla Firefox: Continues as a popular alternative, focusing on user privacy. Microsoft Edge: Gains traction with performance improvements and enterprise features. Safari: Consistently updated, maintaining a strong presence on Apple devices. Transport Layer Security Web Hosting- In House  Web Hosting- Service PAAS/ SAAS – Domain hosting – Website design (templates) – Ecommerce hosting – Email hosting Common Providers – GoDaddy, WIX, Squarespace, Shopify, WordPress (w/ 3P hosting)  Digital Objectives Online sales/ Subscriptions Sales leads Advertising- Brand Awareness Provide customer support Provide information (non sales related) Primary Website Objectives Earn money through online sales.  Other Primary Website Objectives Advertising Commissions Subscriptions  Other Primary Website Objectives Provide info to Support a cause Provide Customer generate/support Support offline sales  Conversions Website Type Primary Conversion Secondary Conversions Create account Retail (eCommerce) Purchase Sign up for emails Pay for premium account Lead (Phone call or form Sign up for emails Lead Generation submission) Click on ad Search Engine Booking (e.g. hotel reservation) Sign up for emails Page views Media Engagement Video views Create account Content creation (tweet, post) Social Media Create account Content interaction (like, favorite, re- post) Affiliate Marketing Click affiliate link Purchase Posting item for sale / Making a Marketplace Create account purchase Analyzing the Success of AMAZON.COM  Analyzing Success Consider this scenario: Your friend starts a website, nothingbutflags.com, which is not making money. Your friend asks you to help generate more traffic. What do you advise your friend?  Analyzing Success cont. Continue this scenario: You ask your friend how much traffic the website had last month. “500 visits.” “How many flags did you sell?” “10, from two purchases.” What do you advise your friend? Success Triangle Traffic: Conversion: ▪ Direct ▪ Purchase ▪ Unpaid ▪ Lead referral ▪ Engagemen ▪ Paid referral t ▪ Unpaid ▪ Account search creation traffic ▪ Click- ▪ Paid search through traffic ▪ Email Traffic Revenue (per conversion)  Direct Traffic Recognizable brand Easy-to-remember URL Bookmarked pages Mobile app Paid Referral Traffic – Amazon  Definition of Affiliate Marketing A performance-based marketing strategy in which a business rewards affiliates for each visitor or customer brought by the affiliate's own marketing efforts The company pays commission to external websites (affiliates) to generate sales or traffic The affiliates promote the company’s products or services on their platforms then earn a commission based on the actions taken by visitors, such as making a purchase  Benefits for Amazon Partnering with Affiliates Cost-Effective Pays only for actual sales, reducing advertising expenditure risks Targeted Marketing Affiliates reach niche audiences, increasing the likelihood of selling products that match user interests Expanded Reach Utilizes a large network of affiliates as an extended marketing team, enhancing customer outreach  Benefits for Affiliates Partnering with Amazon High Conversion Rates Amazon's efficient shopping environment increases the likelihood of conversions from referrals Brand Trust Amazon's reputation makes customers more inclined to purchase, boosting affiliate success Wide Product Range Access to a diverse catalog allows affiliates to find products that resonate with their audience  Paid Referral Traffic Banner ads Text ads Video ads Affiliates Unpaid Referral Traffic – FB for Amazon.ca Facebook (>800,000 likes, 930K followers) Email Backlinks – Home page – Product pages  Unpaid Referral Traffic Email is generally most cost-effective online marketing channel (i.e., highest ROI) Social media activity targets established customers/fans Backlinks – SEO efforts – Interesting content required Search Traffic – Amazon Lego Movie Search  Search Traffic Unpaid - High organic ranking for searches our website can address – Volume – Purchase stage Paid - Pay to show ad on top of SERP – Cost – Purchase stage – Text ads – Shopping ads Conversion – Amazon Search Function (Internal) Superior search function helps customers find products quickly – Superior to other retail websites (“Results not found”) – Tailored to user (shopping history) – Refined by millions of searches  Information Layout Information layout is key to conversion on any site – Provides thorough sense of product with multiple pictures – Answers most potential questions at top of page  Purchase Process Easy-to-navigate purchase process is essential for conversion – Prominent “Add to Cart” button – 1-Click® shopping prevents consumers from changing their mind  Additional Information Additional information on product gives customers peace of mind  Technical Details Technical product information uses same format in all categories – Easy to find, even with glut of information – Additional peace of mind  Customer Reviews Customer reviews are very convincing for most internet shoppers  Conversion Process Second step of conversion process (following “Add to Cart” click) “Proceed to Checkout” prominent Related products displayed to maximize transaction value  Stored Information Stored information saves steps (no additional steps for shipping or credit cart information) Fewer steps = higher conversion rate  Conversion Overview Most important product information at top (“above the fold”) Prominent “Add to Cart” button Easy-to-navigate checkout procedure User profile enables stored shipping and credit card information (and email messages) Conversion is higher with fewer steps in the transaction process  Revenue – Amazon Millions of transactions enable Amazon to make good product recommendations Add-on products - “Do you want fries with that” are huge source of profit  Revenue – Customer Review Generally, highly-rated products tend to be more expensive, so providing reviews can increase revenue of each transaction  Increasing Spending Creating a customer is expensive—increasing a customer’s spending is much easier – Add-on product recommendations – Upgrades – Product reviews Display Advertising  Module Objectives Describe the role of publishers and advertisers in an ad network. Distinguish among CPC, CPM, and CPA bidding strategies. Use the Google Ads platform to identify target audiences for your ads. Create a test to determine which of two ads is more effective.  Effective Display Ads Consumer must: 1. See the ad 2. Process the ad 3. Decide to investigate (i.e., click) 4. Convert Targeting Affinity Audiences Display Ad Targeting  Targeting Ads Based on the Person Interests: Based on browsing history and other data Limitations: Shared device history, broad categorization Current Shopping Behavior: Uses search history and browsing data Limitations: Small population, inaccuracies with shared devices Remarketing (Retargeting): Ads target past website visitors (cookie-based) Advantages: Reliable signal of interest Disadvantages: May pay for conversions that happen naturally Demographics: Narrows targeting by gender, age, etc. Limitations: Inaccuracies on shared devices  Targeting Ads Based on Websites Keywords: Ads appear on pages with specific keywords Convenient but less effective Topics: Ads appear on pages discussing specific topics Advantage: More accurate targeting (e.g., pet forums for pet products) Potentially higher ad receptivity Placements: Select specific websites for ads Advantage: Greater control over ad placement Disadvantage: Lower volume of impressions  Interest-Based and Website Based Targeting Website-Based Targeting Advantages More reliable when user is in a relevant context (e.g., pet forum) Potentially higher engagement when user is focused on related topics Placement Targeting: More control over where ads appear Better for high-quality exposure on select sites Interest Based Shared device use can lead to inaccurate targeting Interest targeting can be less reliable than other methods  Display Ad Bids Advertiser 1 Advertiser 2 Advertiser 3 CTR 0.8% 0.7% 0.6% Conversion Rate 2.3% 3.1% 1.9% Profit per $15 $20 $30 conversion CPM $20 $20 $20 CPC $108.70 $92.17 $175.44 CPA 42.50 $2.86 3.33  CPC Calculations Compare CPC (Cost per Click) and CPA (Cost per Acquisition) for advertisers So – $20 CPM means you pay $20 for 1,000 impressions – Advertiser 1 has Click Thru Rate (CTR) of.08 – So they will receive 8 clicks per every 1,000 impressions – Those 8 clicks cost $20  Conversion Calculations For the second advertiser, CTR = 0.007 (0.7%) and Conversion Rate (CR)= 0.031 (3.1%) So – $20 CPM means you pay $20 for 1,000 impressions – Advertiser 2 has Click Thru Rate (CTR) of 0.7% – So they will receive 7 clicks per every 1,000 impressions – And they will convert 3.1% of those 7 clicks so.217 people will convert – Those.217 conversions cost $20 – So the cost per conversion is $20/.217 or $92.50 Dynamic Retargeting  Dynamic Retargeting Personalized Ads Dynamic retargeting involves showing personalized ads to users based on their past behavior on a website, such as products they viewed or abandoned in their shopping cart Automated Ad Updates It automatically updates ad content with relevant products, promotions, or offers based on real-time data from the user's browsing or purchasing history Improved Conversion Rates By displaying highly targeted and relevant ads, dynamic retargeting helps increase conversion rates, as it re- engages users who have already shown interest in specific products or services  Generic Retargeting Same Ads for All Visitors Unlike dynamic retargeting, which shows personalized content, generic retargeting uses a broad, one-size-fits-all approach by displaying the same ad to all users who have previously visited the site No Behavioral Customization The ads do not reflect the individual user’s browsing or shopping activity (e.g., specific products viewed); instead, they typically promote the overall brand or generic offers Brand Awareness and Re-engagement Generic retargeting is often used to increase brand recognition and re-engage users, but it may not be as effective as dynamic retargeting in driving conversions, as the ads are less tailored to individual preferences or services Dynamic Retargeting Experiment Experiment Results Experiment Results  Broad vs. Narrow Construal “Beach vacation ” “I want a hotel on the north side of the island with direct access to the beach and a swimming pool that overlooks the waves.”  Remarketing Groups You Can Target 1. Everyone that has visited any page on the advertiser’s site 2. Anyone that has visited only the advertiser’s homepage 3. Visitors that did NOT make a purchase 4. Visitors that added an item to the shopping cart 5. Customers that made a previous purchase that the advertiser would like to up-sell or cross-sell 6. Visitors that have been to the advertiser’s site within a specific time period (usually 30–90 days)  Similar Audiences Consumers exposed to our ads Customers/Potential customers Similar Audiences Targeting Potential Customers The goal for marketers is to identify potential customers and convert them into paying customers …While minimizing efforts spent on non-potential customers Venn Diagram Insight The left circle represents people exposed to advertising The right circle represents potential customers The green figures are current customers who were converted from potential ones Focus on Purple People Purple people are potential customers who have not yet been exposed to advertising The marketer's job is to target these individuals effectively rather than wasting resources on non- potential customers (blue people) Similar Audiences Similar Audiences Once a marketer identifies enough green (current) customers, they can use their characteristics to find purple people who resemble them They do this through “similar audiences” techniques, such as Google's machine learning or Facebook's “lookalike audiences.” Machine Learning Efficiency: Advanced machine learning techniques are used by platforms like Google and Facebook to analyze complex data points and uncover detailed characteristics It’s these characteristics that differentiate potential customers (purple) from non- potential ones (blue) Increasing Banner Ad Effectiveness Context Matching 50% Obtrusiveness 75% Context Matching + Obtrusiveness 0%  Increasing Banner Ad Effectiveness Context Matching Display ads that align with the content of a webpage (e.g., pet product ads on a dog training site) increase ad effectiveness Advertisers should spend 50% more on context-matched ads Obtrusiveness Ads that attract attention through pop-ups, full-page banners, or pre-loaded ads can also increase ad effectiveness Even while potentially annoying The study suggested advertisers should pay 75% more for obtrusive ads.  Increasing Banner Ad Effectiveness Study Result - Decreasing Effectiveness: The study found that combining both context matching and obtrusiveness actually decreased ad effectiveness This makes combining both as ineffective as a generic ad Privacy Concerns The reason for decreased effectiveness was that obtrusive, context-matched ads raised privacy concerns Users became wary of the targeted nature of the ads Lesson for Advertisers Despite initial assumptions, combining obtrusiveness and context matching might backfire, making ads less effective due to increased consumer discomfort and suspicion  Consistent Messaging Three ways to stay consistent with ads and landing pages: 1. Tout the same value propositions. 2. Use similar calls to action. 3. Enact the same design elements (color scheme, characters, fonts, imagery, etc.) Consistent Messaging Consistent Messaging Consistent Messaging  References January 2015 to January 2022; based on each device's share of the total web pages served to web browser. StatCounter Canada; 2018 to 2022; mobile phone users of any age who access the internet via mobile phone (browser or app) at least once per month; use of SMS/MMS is not considered mobile internet access; * Forecast Statista Canada; July 2020 to June 2021; 31,856 respondents; 14 years and older; Canadians, Vividata