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Customers seek to freely access digital data, content and interactions as easily, quickly - Search Engine friendly, - Be-on Demand: real-time, on customer channels, - Harness cloud computing: SaaS, PaaS (platform as service), - Go mobile and keep it simple. *Engage: Become a source of valued content. Customers seek to engage with digital content that is sensory, interactive, shareable & relevant to the needs - Try Branding, Not Selling: story, entertainment, or a compelling idea about your brand, - Offer Utility: solve a problem or answer information, - Show a Personal Face: personal side and voice, - Focus on the Particular, Make it a Game *Customize: Make offering adapted to customer needs. Customers seek to customize their experiences in networks by choosing and modifying a wide assortment of information, products, and services. Offer a Vast Menu: a huge range of products and a set of filters. Customize Your Playlist: offer content adapts to the preferences and feedbacks - Mash Up Your Products: let customers modify your products or service - Make the Choice Personal: *Connect: Become a part of customer‟s conversations. Customers seek to connect with one another by sharing their ideas and opinion in text, image, symbol, videos, and social. - Listen and Learn, - Join the Conversation: respond to issues and concerns, make friends, & interact like real humans, - Provide a Forum, - Let Conversation Add a Layer of Value: answering one another‟s questions about your product/services - Integrate Their Voices in Yours *Collaborate: Invite customers to build enterprise. Customers seek to collaborate on collective projects and goals through platforms for love, glory, money - Passive Contribution: contributing to a project via work they are already doing - Active Contribution: actively contribute work to part of a large project -Open Competition, Defined Platform, Open Platform . AECCC is complementary, not mutually exclusive Digital marketing Goals: - Increase sales - Brand awareness, brand building - Acquisition of new customers - Introduction of new products and service - Retention of current customers & increase loyalty - Increase website traffic Lead generation, - Marketing research: customer needs - Cost saving Med ia Own med ia Definition Example Channel a company controls website, blog, twitter, fb, mobile The role Benefit Problem
Build for control, no guarantee, longer term cost company relationship efficiency, communicatio with longevity, n not trusted, existing niche takes time to potential audience scale customers & earn media Display Shift from In demand, clutter, Paid Co. pays ad, paid foundation control, declining med to leverage a search, to a catalyst immediacy, response rate, ia channel TV/print that feeds scale, poor ad, owned & control credibility sponsorshi create p earned media earned transparent, No control, Ear Customers WOM & buzz, viral media is cost can be ned become the result of efficient, negative, hard med channel executed most to measure, ia and well co credible scale ordinated owned & paid media Web analytics metrics: visits, unique visits, page views, pages/visit, avg visit duration, % new visit Causal relationship – the variable being manipulated is independent variable effect is seen on dependent variable. Eg: Email marketing It should satisfy following conditions: - Two variables correlate with each - Cause variable‟s change happens ahead of the effect variable‟s change - No other variables caused the effect variable‟s change. Listening helps avoid social desirability and interpretation bias. Listening tools: socialmention, google alerts, wildfire, radian (paid) - Bounce rate: people who visit only 1 page - Paid search <10% clicks. Organic search > 90% of clicks - Paid search: sold as CPC (cost/click) or PPC (pay/click) - Click thru rate = #click/# impression - Click thru conversion rate = # conversion/ # clicks - View thru conversion rate = # conversion/ # impression 4 word keyword phrase, 35% conversion rate 3 word phrase, 25% conversion rate. Keyword research tools: Google adwords keywords, semrush, wordtracker - Improve site structure: Indicate page titles by using title tags, use description meta tag, tag an image and provide description, use search friendly URL -Attribution model (AM) is the set of rules that determine how credit for sales and conversions is assigned to touch points in conversion paths. Example: types of AM: Paid search – social ntwrk – email – direct – purchase. Last interaction AM: last touchpoint. Direct channel gets credit. Last Non-Direct click AM: Credit to last channel customer clicked thru before converting. In above example, email. Last adwords click: credit to paid search (since tht uses adwords). First Interaction AM: 1st touchpoint. Paid search in this case. Linear AM: credit goes to each touchpoint in the path. Each point in the above example will get 25% credit for conversion. Time decay: Touchpoint closest in time to the conversion.. Position based AM: 40% to 1st and last interaction. Remaining split equally among middle interactions. Share of voice = brand mention/ total mentions
*Audience engagement = comment+ share+ like/total views *Active advocate = #of active advocates (w/in 30 days)/total advocate *Advocacy impact: # advocacy driven conversation/total volume of advocacy traffic. *Sentiment ratio = +ve:-ve:neutral brand mention/all brand mention *Topic trend = #of specific topic mention/all topics mentioned *One sided network: Transaction partners alternate roles eg: email * 2 sided: Users are permanent members of 1 distinct group „job seekers + recruiters‟, cardholders + merchant. *3 sided: YouTube Centrality measure Interpretation Degree How many ppl can reach this person directly Betweeness How likely is this person to be most likely route between 2 ppl in network Closeness how fast can this person reach to others Eigenvector How well connected is this person to other well connected people *Degree centrality: No of nodes adjacent. di = ΣAij *Normalized degree centrality = di/(n-1) *Closeness centrality: higher centrality α closeness. Cc (Vi) = (n-1)/ Σ g(vi, vj) => j vary from j to n, j≠i *Btwnss centrality Cb= Σ σst (vi) / σst σst: # shortest paths btwn s & t; σst (vi) = # shortest paths btwn s and t through vi *Network density: #edges in network/(n(n-1)/2). High density: close community. Clique: perfectly connected ntwrk, density = 1 *Community network is measured by clustering coefficient Ci = ki/ (di (di-1)/2); ki is the number of existing edges among all nodes that are directly connected with node i *Modularity = #edges within communities – expected # edges *Proxy for strength of tie: frequency of interaction, reciprocity in interaction, type of interaction or flow btwn two parties *6 degrees of separation: 2 people can connect in 6 ways *Critical mass: subscription % when network becomes significant Demand Media: Diminishing return on quantity • People are moving to more social media and social recommendation systems where quality of the content does matter • Updated Google search algorithm gives more weight to the content quality • Content scope is not overlapped with Publishers like NYT • Help to build up the branding and authority of Demand Media‟s vertical websites. • Demand should continue with its low- cost, long tail strategy where its content is often the only content that answers a specific query • The de mand model works because it is a high volume, highly responsive model; Demand will never be able to compete with the New York Times‟ level of quality and credibility so why waste time and money trying to do so? Research types Qualitative Quantitative Types of question Probing, don‟t know Limited probing, know wht to what to ask, complex ask, manageable Sample Small, convenient, Large and probability judgmental Information from Substantial in-depth Varies in amount, limited in each respondent depth Analysis type Subjective, interpretive statistical Generalizability Low High Type of research Exploratory Descriptive,causal Example Interview, focus group Survey, lab experiment, field observational/literature experiment studies *Which keywords to choose should depend on following: Competition level, search volume, value of visitor BBVA COMPASS – Y allocate more budget to online channel Interaction and spill over between offline and online advertising -Offline acquisition depends on the presence of bank branches that enhance brand awareness, perception of convenience. The cost per application or ROI does not account for capital cost of branches. - The online channel may reach different demographics (e.g., younger consumers), which may be more valuable in the long run. - It is easier to measure effectiveness of online channel, which increases confidence of managers in allocating resources. - Online account yields higher fee income, breaks the geog limits Y allocate less budget to online channel Offline has much higher return for investment or smaller cost per application. Effective acquisition cost for online account is even much higher since completed online application. New regulations by government may change fee income from online channel. Sephora: There is a new way to look at the decision making process, especially what happens after sales with customer impact on other customers, due to the innate desire to share experiences post-purchase - The measurement of social media efforts is determined by the strategic goals of your digital marketing efforts. In many situations, a good measurement of ROI is just infeasible. - Important Questions to Think about: Beauty Talk vs. Facebook: dedicated users, in-depth discussion vs. “recency” nature and large user base - Partnership with Groupon: damage brand image, might help new store. When Winner Takes All (WTA)? Market is likely to be served by a single network/platform when: - Network effects are positive and strong - Multi-homing costs are high for both sides. Homing cost: upfront and ongoing costs/investments incurred by user due to platform affiliation - Demand for differentiated features is weak Data on Twitter: Twitter fire chase (paid) – 100% access to public tweets. 3 types: 1. Data SIFT: access to post and streaming data. 2. GNIP: access to streaming data. 3. TOPSY: access to post data Top factors affecting page ranking: page level link matrix, domain level link, page level keyword usage. Yelp: The top management of Yelp is grappling with a challenging state of affairs in which it has to generate higher revenues for the site and make it profitable amidst dwindling advertising outlay of companies. The company is pondering over whether to maintain the existing revenue model and increase sales force or to alter
the same and charge website users for reading the reviews. Root causes of the predominant problem: Shrinking budget - Companies are tightening the budget for advertising since financial crisis of 2008, thereby affecting Yelp‟s major source of revenues – advertising and sponsorship. Stiff Competition - Yelp has to compete with several other established companies. Restaurants – Restaurant reviews were not effective in fetching revenues because there were no incentives on their part to advertise on Yelp regardless of good or bad reviews by users. Local Advertising – Yelp has insufficient sales force to tap the local businesses, which have not yet embraced online advertising contrary to expectations of several industry observers. Recommendation: Based on the facts and the circumstances given, a few of the key focus areas and steps required to enhance the bottom line for Yelp include: Increase the Sales Force – In order to solicit advertising and sponsorship from local businesses and thereby bolster profitability, Yelp should enhance the sales force in all the potential high growth areas. Even though Stoppelman cannot foresee the future costs of increasing sales force, Yelp has already raised $15 million in 2008 from DAG and the projected positive ROI on this front definitely warrants increased effort and investment. Collaborate with Other Channels - Yelp should also endeavor to collaborate with other online social media such as Facebook, Twitter etc. because these also hold tremendous potential for future as far as spreading the brand awareness and expanding the user community is concerned. For example, the fan pages in Facebook for particular businesses can have links to Yelp reviews, in addition to the user discussions and feedback in those pages. Also, Yelp should try to focus on mobile media and applications to complement the online presence. Review for Varied Businesses – Since the focus on restaurant reviews has not been effective in enhancing the profitability thus far, Yelp should try to find other types of businesses such as Real Estate, Hotels, local service providers etc. and bring them in its fold. This will result in more advertising and increase of already growing Network Effect for the web site. Strengthening Elite Squad – The reviewers who comprise Elite Squad have been of immense help to Yelp in gaining credibility and popularity. Hence, Yelp should organize more get-togethers for them and try to involve more reviewers in such gatherings. Yelp should also plan to reward the reviewers in the Elite Squad by giving them some discount coupons or gifts by arranging the same with the local businesses in order to incentivize and retain them.Do Not Charge Users for Access to Reviews – Because
the business model for Yelp is very different from web sites such as Angie‟s List, Yelp should not try to emulate them and start charging users for accessing the site content because the user base will decrease from its present level and there will be less motivation for the local businesses to grant advertising and sponsorships. Social Failure: Breadth
failure: when people do not meet each other and establish a relationship because they do not operate in the same social circles. Display failure: it prevents people from establishing a relationship because they do not convey enough information to each other. Search failure: it arise when people operate in the same social circle, but there is no easy of accessing their information. Interaction failure: it is most likely to arise when two strangers do not have an excuse to start an interaction, or when they are afraid that the interaction will derail, or when there are strong normative restrictions preventing an interaction. Social Strategy test: Business value test: does the social strategy meaningfully help the business improve competitive advantage over the long term? Reduce cost or improve consumers‟ willingness to pay Social utility test: does the social strategy enable an important social interaction for a meaningful set of people who cannot engage in that social interaction on their own? - “meet” product or “friend” product Social solution test: do the tasks that help the company reach its competitive goals provide the most effective and unique way of enabling social interactions? Alignment of business value and social utility. Paywall – What happened? Beginning in April 2012, non-subscribers had access to only 10 free articles per month instead of 20. Over 150 newspapers had adopted paywall as of May 2012. For the six-month period ending September 30, 2012, total average print circulation for The New York Times for Monday-Friday was 717,513 and total average print circulation for Sunday was 1,250,077. These figures represent declines. Paywall – Key takeaways: Transformation: Digital technology is fundamentally disrupting many businesses. In the case of newspaper, it led to unbundling of the product and completely new players like Craigslist and Monster.com become competitors for classified advertising revenue. Business Model: Many traditional businesses made their digital products available for free online with the hope that the digital ad revenues would compensate for the loss in subscription revenues. Even though the online readership for news has been growing the ad rates are significantly lower than offline ad rates due to higher supply of digital pages. Many businesses are moving to a freemium (free+premium) or subscription-based model. Product design matters: Paywall & subscription models need to be designed carefully by considering customers willingness to pay, competitive pricing, company‟s cost structure, long-term goal of the firm and complementarity and substitutability of digital and offline products. Advertising Network: A service where ads are bought centrally through one company, and displayed on multiple websites that contract with that company for a share of revenue generated by ads served on their site. Behavioral targeting uses information collected on an individual‟s webbrowsing behavior, such as the webpage she/he has visited or the searches she/he has made, to select which advertisements to display to that individual. Affiliate Marketing: It is the process whereby a brand site, such as an electronics retailer, attracts customers by rewarding a third party (the affiliate) for promoting their products and converting traffic to their website. Display Advertising: Advertising that is targeted to a web page based on the page‟s content, keywords, or category. Purchase decision: Need – info search – alternatives – purchase – post purContent Curation: Aggregation-distillation-elevation-mashup-chronology. Nike: Art of speed blog. Football player video on Youtube (touch of gold), Joga.com, Nike+, The Grid – London city running. Run for China, 2010 world
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