Professional Documents
Culture Documents
Different tools of traditional marketing have been used by marketers for a long
time. The marketers have been using the traditional channels such as face to face
communication, TV, radio and magazines etc. to communicate to the customers.
All of the communication channels have an important function of their own but
Internet is a channel that has developed and is continuously developing which has got a
lot of attention from everyone.
What is the most beneficial marketing approach comparing traditional and Internet
marketing? Which marketing tools are the most used ones in practice and which are
preferred by “real life companies”? Is Internet marketing a contemporary version of
traditional marketing and are the two kinds of marketing independent of or
complementary to each other?
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Comparative Study Between Various Tools Of Digital Marketing
These issues are considered interesting by the authors of this thesis since choosing
a specific marketing method can be a difficult decision for a new company entering the
market.
There also might be some indistinctness about different marketing tools and their
benefits or drawbacks for others interested in the subject, such as students studying
marketing.
The aim of this study is to compare traditional marketing and Internet Marketing
and show the differences of characteristics between them. And to find out what marketing
tools are effective for a new business or entrepreneurs.
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What are the main differences between Internet marketing and traditional
marketing? Which one of the two approaches contains the most used and effective
marketing tools according.
Research data collected was mainly secondary data. Secondary data was
collected from newspaper articles, books, journals, periodicals and websites.
The study faces the limitation in respect to time as the research is carried
for four months
The questions are generalized which might not be true or relating to the
respondent.
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TRADITIONAL
V/S ONLINE
CURTOMER
APPROACH & DRAWBACKS
RESPONSIVENE
SS
EFFECTIVENESS
IN SMALL OR
NEW BUSINESS
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Comparative Study Between Various Tools Of Digital Marketing
V/S
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About:
They provide a wide range of services in terms of guiding and educating our customers in
different fields such as Finance, Marketing, Real Estate, Education and Training, Event
Management, Business Evaluation as well as Insurance Evaluation.
Their excellent research team goes through each and every aspect of a given situation in
order to explore the various possibilities and hence arrive to a relevant conclusion. The
reports provided by them are much more reliable, precise and transparent.
They believe that every customer is different and has different preferences. They make
sure to consider these preferences and provide services best suitable to these individuals
thus providing a personalized experience.
They have experts from various fields that make it possible for us to provide such a wide
range of services.
They started our business with providing financial services and have now diversified to
various other fields. They constantly strive to provide the best services to our clients in
diverse fields.
Our primary initiative is to educate the common man about the know – how of financial
markets, equity, stocks etc. so that their hard earned money is not lost due to mere
ignorance of knowledge of the financial market. Hence, they have formulated a
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Comparative Study Between Various Tools Of Digital Marketing
vocational educational module that, they believe, shall help the common man gain
thorough knowledge about how the market works.
History:
It all started in the year 2009, the same year in which the stock market crashed and
recession took place. A bunch of students from St. Andrew’s College, Mumbai were
enjoying their meal in the college canteen and casually discussing about the stock
market- what went wrong? How it could have been avoided? How people lost their
money due to poor decision making? Etc.
Then randomly we came up with the idea of starting our own venture in order to educate
the customers about how to select the right investment plan.
Initially, we all were quite intrigued by the idea and showed a lot of interest and each one
of us supported with more ideas. All students met a number of times but couldn't
formulate a proper business plan and could not proceed due to capital investment. Many
people wanted to join the team but couldn't stay till the end.
However, the idea still survived in the minds of few of us and after much wandering and
going back and forth a number of times, finally after 4 years, the plan was ready with
some investments to the business. But, they still couldn’t afford a physical office. So we
started off the business online with our initial website named goldrockfinancials.com
On 1st June, 2014 the office was inaugurated and our journey began from there....
Vision:
"To be the most reliable company in the eyes of customers in providing accurate and
transparent information and to educate them in financial decision making,"
Products:
Finance
Equity
Mutual Fund
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SIP
Debt
Commodities
Forex
Marketing
Digital marketing
Outdoor Marketing
Education
Training
Seminars
Trading Guide
Terminologies
The founder & director of Goldrock Internationals was asked to express his view on
online marketing.
How effective is it in terms of a new business with less capital? Does it provide the
desired results?
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If you ask me about online marketing I will diversify it into On – Page Marketing and
Off – Page Marketing. Both are equally important, but on page marketing is
sustainable as it can’t be changed. However, Off – Page marketing like social media
and search engine marketing becomes little expensive and the productivity is getting
reduced over a period of time. Social media helps you to put something on your
viewer’s minds that your company still exists with help of updates and posts. The
business generated out of social media slowly sliding down and companies shifting
from website based business to application based business.
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3.1 Definition
The key objective is to promote brands, build preference and increase sales
through various digital marketing techniques. It is embodied by an extensive selection of
service, product and brand marketing tactics, which mainly use the Internet as a core
promotional medium, in addition to mobile and traditional TV and radio.
Digital marketing concepts and practice are evolving tremendously among several
industries, especially by the leading companies among each industry utilizing the mass
reach of digital tools and social media platforms, benefiting from the possibility to create
individually tailored approach that can achieved at a very productive cost
Digital marketing activities are search engine optimization (SEO), search engine
marketing (SEM) , content marketing, influencer marketing, content automation,
campaign marketing, and e-commerce marketing, social media marketing, e-mail direct
marketing, display advertising, e–books, optical disks and games, and any other form of
digital media.
It also extends to non-Internet channels that provide digital media, such as mobile
phones (SMS and MMS), callback and on-hold mobile ring tones.
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3.2 History
The term 'digital marketing' was first used in the 1990s. In the 2000s and the
2010s, digital marketing became more sophisticated as an effective way to create a
relationship with the consumer that has depth and relevance.
While the term 'digital marketing' may not have been used until the 1990s, digital
marketing itself has roots to the mid-1980s when the SoftAd Group,
now ChannelNet developed advertising campaigns for several major automobile
companies, wherein people would send in reader reply cards found in magazines and
receive in return floppy disks that contained multimedia content promoting various cars
and offering free test drives.
The rapid evolution of digital media has created new opportunities and avenues for
advertising and marketing. Fueled by the proliferation of devices to access digital media,
this has led to the exponential growth of digital advertising.
In 2012 and 2013 statistics showed digital marketing remained a growing field.
Digital media growth is estimated at 4.5 trillion online ads served annually with
digital media spend at 48% growth in 2010. An increasing portion of advertising stems
from businesses employing Online Behavioral Advertising (OBA) to tailor advertising
for Internet users.
The term 'digital marketing' has grown in popularity over time, particularly in
certain countries. In the USA 'online marketing' is still prevalent, in Italy is referred as
'web marketing' but in the UK and worldwide, 'digital marketing' has become the most
common term, especially after the year 2013.
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1. Affiliate marketing
2. Display Advertising
3. Email marketing
4. Search Marketing
5. Social Media
6. Social Networking
Multi-channel communications
3.5 Self-regulation
The ICC Code has integrated rules that apply to marketing communications using
digital interactive media throughout the guidelines. There is also an entirely updated
section dealing with issues specific to digital interactive media techniques and platforms.
Code self-regulation on use of digital interactive media includes:
Clear and transparent mechanisms to enable consumers to choose not to have their
data collected for advertising or marketing purposes;
Clear indication that a social network site is commercial and is under the control
or influence of a marketer;
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Limits are set so that marketers communicate directly only when there are
reasonable grounds to believe that the consumer has an interest in what is being
offered;
Respect for the rules and standards of acceptable commercial behaviour in social
networks and the posting of marketing messages only when the forum or site has
clearly indicated its willingness to receive them;
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Other potential participants include advertising agencies who help generate and
place the ad copy, an ad server which technologically delivers the ad and tracks statistics,
and advertising affiliates who do independent promotional work for the advertiser.
U.S. internet ad revenue hit a historic high of $20.1 billion for the first half of
2013, up 18% over the same period in 2012. Online advertising is widely used across
virtually all industry sectors.
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4.1 History
In early days of the Internet, online advertising was mostly prohibited. For
example, two of the predecessor networks to the Internet, ARPANET and NSFNet, had
"acceptable use policies" that banned network "use for commercial activities by for-profit
institutions". The NSFNet began phasing out its commercial use ban in 1991.
The first widely publicized example of online advertising was conducted via
electronic mail. On 3 May 1978, a marketer from DEC (Digital Equipment
Corporation), Gary Thuerk, sent an email to most of the ARPANET's American west
coast users, advertising an open house for a new model of a DEC computer.
Despite the prevailing acceptable use policies, electronic mail marketing rapidly
expanded and eventually became known as “spam.”
Four months later, Laurence Canter and Martha Siegel, partners in a law firm,
broadly promoted their legal services in a USENET posting titled "Green Card Lottery –
Final One?” Canter and Siegel's Green Card USENET spam raised the profile of online
advertising, stimulating widespread interest in advertising via both Usenet and traditional
email. More recently, spam has evolved into a more industrial operation,
wherespammers use armies of virus-infected computers (botnets) to send spam remotely.
Display ads
Online banner advertising began in the early 1990s as page owners sought
additional revenue streams to support their content. Commercial online
service Prodigy displayed banners at the bottom of the screen to promote Sears products.
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The first clickable web ad was sold by Global Network Navigator in 1993 to a
Silicon Valley law firm. In 1994, web banner advertising became mainstream
when HotWired, the online component of Wired Magazine, sold banner ads
to AT&T and other companies.
The first AT&T ad on HotWired had a 44% click-through rate, and instead of
directing clickers to AT&T's website, the ad linked to an online tour of seven of the
world's most acclaimed art museums.
Search ads
Recent trends
More recently, companies have sought to merge their advertising messages into
editorial content or valuable services.
Examples include Red Bull's Red Bull Media House streaming Felix
Baumgartner's jump from space online, Coca-Cola's online magazines, and Nike's free
applications for performance tracking.
Advertisers are also embracing social media and mobile advertising; mobile ad
spending has grown 90% each year from 2010 to 2013.
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Display advertising:
Display advertising conveys its advertising message visually using text, logos,
animations, videos, photographs, or other graphics. Display advertisers
frequently target users with particular traits to increase the ads' effect.
Online advertisers (typically through their ad servers) often use cookies, which are
unique identifiers of specific computers, to decide which ads to serve to a particular
consumer. Cookies can track whether a user left a page without buying anything, so the
advertiser can later retarget the user with ads from the site the user visited.
As advertisers collect data across multiple external websites about a user's online
activity, they can create a detailed picture of the user's interests to deliver even more
targeted advertising. This aggregation of data is called behavioral targeting.
Advertisers can also target their audience by using contextual and semantic
advertising to deliver display ads related to the content of the web page where the ads
appear. Retargeting, behavioral targeting, and contextual advertising all are designed to
increase an advertiser's return on investment, or ROI, over untargeted ads.
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Web banners or banner ads typically are graphical ads displayed within a web
page. Many banner ads are delivered by a central ad server.
Banner ads can use rich media to incorporate video, audio, animations, buttons,
forms, or other interactive elements using Java applets, HTML5, Adobe Flash, and other
programs.
Frame ads were the first form of web banners. The colloquial usage of "banner
ads" often refers to traditional frame ads. Website publishers incorporate frame ads by
setting aside a particular space on the web page. The Interactive Advertising Bureau's Ad
Unit Guidelines proposes standardized pixel dimensions for ad units.
Pop-ups/pop-unders
Floating ad
A floating ad, or overlay ad, is a type of rich media advertisement that appears
superimposed over the requested website's content. Floating ads may disappear or
become less obtrusive after a preset time period.
Expanding ad
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Trick banners
A trick banner is a banner ad where the ad copy imitates some screen element
users commonly encounter, such as an operating system message or popular application
message, to induce ad clicks.
Trick banners typically do not mention the advertiser in the initial ad, and thus
they are a form of bait-and-switch. Trick banners commonly attract a higher-than-
average click-through rate, but tricked users may resent the advertiser for deceiving them.
"News Feed Ads", also called "Sponsored Stories", "Boosted Posts", typically
exist on Social Media Platforms that offer a steady stream of information updates ("news
feed") in regulated formats (i.e. in similar sized small boxes with a uniform style). Those
advertisements are intertwined with non-promoted news that the users are reading
through. Those advertisements can be of any content, such as promoting a website, a fan
page, an app, or a product.
This display ads format falls into its own category because unlike banner ads
which are quite distinguishable, News Feed Ads' format blends well into non-paid news
updates. This format of online advertisement yields much higher click-through rates than
traditional display ads.
Interstitial
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Text ads
Text ads may also be delivered through email marketing or text message
marketing. Text-based ads often render faster than graphical ads and can be harder for ad-
blocking software to block.
Search engines often employ visual cues to differentiate sponsored results from
organic results. Search engine marketing includes all of an advertiser's actions to make a
website's listing more prominent for topical keywords.
Sponsored search
Sponsored search (also called sponsored links, search ads, or paid search) allows
advertisers to be included in the sponsored results of a search for selected keywords.
Search ads are often sold via real-time auctions, where advertisers bid on keywords.
In addition to setting a maximum price per keyword, bids may include time,
language, geographical, and other constraints. Search engines originally sold listings in
order of highest bids. Modern search engines rank sponsored listings based on a
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combination of bid price, expected click-through rate, keyword relevancy and site
quality.
Mobile advertising
Mobile advertising may take the form of static or rich media display ads, SMS
(Short Message Service) or MMS (Multimedia Messaging Service) ads, mobile search
ads, advertising within mobile websites, or ads within mobile applications or games (such
as interstitial ads, “advergaming,” or application sponsorship).
Mobile advertising is growing rapidly for several reasons. There are more mobile
devices in the field, connectivity speeds have improved (which, among other things,
allows for richer media ads to be served quickly), screen resolutions have advanced,
mobile publishers are becoming more sophisticated about incorporating ads, and
consumers are using mobile devices more extensively.
In July 2014 Facebook reported advertising revenue for the June 2014 quarter of
$2.68 billion, an increase of 67 percent over the second quarter of 2013. Of that, mobile
advertising revenue accounted for around 62 percent, an increase of 41 percent on the
previous year.
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Email advertising
Chat advertising
This is done by the usage of live chat software or tracking applications installed
within certain websites with the operating personnel behind the site often dropping
adverts on the traffic surfing around the sites. In reality this is a subset of the email
advertising but different because of its time window.
Adware
Affiliate marketing
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Affiliate marketers generate traffic to offers from affiliate networks, and when the
desired action is taken by the visitor, the affiliate earns a commission. These desired
actions can be an email submission, a phone call, filling out an online form, or an online
order being completed.
Content Marketing
Content marketing is any marketing that involves the creation and sharing of
media and publishing content in order to acquire and retain customers. This information
can be presented in a variety of formats, including blogs, news, video, white papers, e-
books, infographics, case studies, how-to guides and more.
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Cost per mile, often abbreviated to CPM, means that advertisers pay for every
thousand displays of their message to potential customers (mille is the Latin word for
thousand). In the online context, ad displays are usually called "impressions." Definitions
of an "impression" vary among publishers, and some impressions may not be charged
because they don't represent a new exposure to an actual customer. Advertisers can use
technologies such as web bugs to verify if an impression are actually delivered.
CPC (Cost Per Click) or PPC (Pay per click) means advertisers pay each time a
user clicks on the ad. CPC advertising works well when advertisers want visitors to their
sites, but it's a less accurate measurement for advertisers looking to build brand
awareness. CPC's market share has grown each year since its introduction, eclipsing
CPM to dominate two-thirds of all online advertising compensation methods.
Like impressions, not all recorded clicks are valuable to advertisers. GoldSpot
Media reported that up to 50% of clicks on static mobile banner ads are accidental and
resulted in redirected visitors leaving the new site immediately.
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Cost per engagement aims to track not just that an ad unit loaded on the page (i.e.,
an impression was served), but also that the viewer actually saw and/or interacted with
the ad.
Cost per view video advertising. Both Google and TubeMogul endorsed this
standardized CPV metric to the IAB's (Interactive Advertising Bureau) Digital Video
Committee, and it's garnering a notable amount of industry support.
CPA (Cost Per Action or Cost Per Acquisition) or PPP (Pay Per Performance)
advertising means the advertiser pays for the number of users who perform a desired
activity, such as completing a purchase or filling out a registration form. Performance-
based compensation can also incorporate revenue sharing, where publishers earn a
percentage of the advertiser's profits made as a result of the ad. Performance-based
compensation shifts the risk of failed advertising onto publishers.
Fixed cost
Fixed cost compensation means advertisers pay a fixed cost for delivery of ads online,
usually over a specified time period, irrespective of the ad's visibility or users' response to
it. One examples is CPD (cost per day) where advertisers pay a fixed cost for publishing
an ad for a day irrespective of impressions served or clicks.
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The low costs of electronic communication reduce the cost of displaying online
advertisements compared to offline ads. Online advertising, and in particular social
media, provides a low-cost means for advertisers to engage with large established
communities. Advertising online offers better returns than in other media.
Measurability
Online advertisers can collect data on their ads' effectiveness, such as the size of
the potential audience or actual audience response, how a visitor reached their
advertisement, whether the advertisement resulted in a sale, and whether an ad actually
loaded within a visitor's view. This helps online advertisers improve their ad campaigns
over time.
Formatting
Targeting
Publishers can offer advertisers the ability to reach customizable and narrow
market segments for targeted advertising. Online advertising may use geo-targeting to
display relevant advertisements to the user's geography. Advertisers can customize each
individual ad to a particular user based on the user's previous preferences. Advertisers
can also track whether a visitor has already seen a particular ad in order to reduce
unwanted repetitious exposures and provide adequate time gaps between exposures.
Coverage
Online advertising can reach nearly every global market, and online advertising
influences offline sales.
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Speed
Once ad design is complete, online ads can be deployed immediately. The delivery
of online ads does not need to be linked to the publisher's publication schedule.
Furthermore, online advertisers can modify or replace ad copy more rapidly than their
offline counterparts.
4.5 Concerns
Banner blindness
Eye-tracking studies have shown that Internet users often ignore web page zones
likely to contain display ads (sometimes called "banner blindness"), and this problem is
worse online than in offline media. On the other hand, studies suggest that even those ads
"ignored" by the users may influence the user subconsciously.
There are numerous ways that advertisers can be overcharged for their advertising.
For example, click fraud occurs when a publisher or third parties click (manually or
through automated means) on a CPC ad with no legitimate buying intent. For example,
click fraud can occur when a competitor clicks on ads to deplete its rival's advertising
budget, or when publishers attempt to manufacture revenue.
As with offline publications, online impression fraud can occur when publishers
overstate the number of ad impressions they have delivered to their advertisers. To
combat impression fraud, several publishing and advertising industry associations are
developing ways to count online impressions credibly.
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Technological variations
Heterogeneous clients
Because users have different operating systems, web browsers and computer
hardware (including mobile devices and different screen sizes), online ads may appear to
users differently from how the advertiser intended, or the ads may not display properly at
all. A 2012 comScore study revealed that, on average, 31% of ads were not "in-view"
when rendered, meaning they never had an opportunity to be seen. Rich media ads create
even greater compatibility problems, as some developers may use competing (and
exclusive) software to render the ads (see e.g. Comparison of HTML 5 and Flash).
Ad-blocking, or ad filtering, means the ads do not appear to the user because the
user uses technology to screen out ads. Many browsers block unsolicited pop-up ads by
default. Other software programs or browser add-ons may also block the loading of ads,
or block elements on a page with behaviors characteristic of ads (e.g. HTML autoplay of
both audio and video). Approximately 9% of all online page views come from browsers
with ad-blocking software installed, and some publishers have 40%+ of their visitors
using ad-blockers.
Anti-targeting technologies
Some web browsers offer privacy modes where users can hide information about
themselves from publishers and advertisers. Among other consequences, advertisers can't
use cookies to serve targeted ads to private browsers. Most major browsers have
incorporated Do Not Track options into their browser headers, but the regulations
currently are only enforced by the honor system.
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Privacy concerns
Trustworthiness of advertisers
Consumers also face malware risks, i.e. malvertising, when interacting with online
advertising. Cisco's 2013 Annual Security Report revealed that clicking on ads was 182
times more likely to install a virus on a user's computer than surfing the Internet for
porn. For example, in August 2014 Yahoo's advertising network reportedly saw cases of
infection of a variant of Cryptolocker ransomware.
Spam
The Internet's low cost of disseminating advertising contributes to spam, especially by
large-scale spammers. Numerous efforts have been undertaken to combat spam, ranging
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Privacy regulation can require users' consent before an advertiser can track the
user or communicate with the user. However, affirmative consent ("opt in") can be
difficult and expensive to obtain. Industry participants often prefer other regulatory
schemes.
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The four P's - Product, Price, Place and Promotion have long been associated with
Advertising, but things have changed on the Internet. So along with a change in the
nature of the four P’s there are three new P’s which are relevant to the internet advertiser.
1. The Product on the Internet usually changes form online, and the user
experiences it electronically, in the form of text, images and multimedia. Physical goods
are usually presented in the form of a detailed online catalogue that the customer can
browse through.
Technology allows the user to virtually touch and feel the product on the Internet -
rotate it, zoom in or zoom out and even visualize the product in different configurations
and combination. The example of the above can be seen at dell.com where the company
offers the user to virtually feel every aspect of their product before they go into a buy
decision.
Content and software are two avatars of digitized products that can be even
distributed over the Internet. On the Internet, E-Advertising will be based more on the
product qualities rather than on the price. Every company will be able to bring down the
cost of its products and hence competition will not be on price. It will rather be on the
uniqueness of the product.
To be able to attract the customers and retain them, the company will have to
provide nouvelle and distinct products that forces the net users to purchase and come
back for more.
2. The Price has been drastically changed over the Internet. It lets the buyer
decides the price. Also it gives the buyers information about multiple sellers selling the
same product. It leads to best possible deal for the buyers in terms of price.
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The elimination of the intermediate channel allows the producer to pass the
reduced distribution cost to the customer in the form of discounts. Dell Computers have
used this strategy very effectively and hence they have been able to reduce their prices of
their laptops drastically and reaped huge profits.
There can be traded links or banner advertisements for the same. Also the
traditional mediums like print, outdoor advertising and television can be used to spread
awareness. Email campaigns and spamming the Chat rooms on almost every server has
been exploited to the maximum for the cause of promoting their website.
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Also, simple but powerful navigational aids on all web pages like search engines
make it easy for customer to find their way around. The principle of K.I.S.S ( Keep it
simple stupid ) is the most important factor that has to be considered while presenting the
online business
6. Processes- Customer supports needs to be integrated into the online web site. A
sales service that will be able to answer the questions of their customers fast and in a
reliable manner is necessary.
To further enhance after sales service, customers must be able to find out about
their order status after the sale has been made. For e.g. FedEx (www.fedex.com), the
overnight Courier Company allows its customers to keep track of the parcel and they are
well informed about the present whereabouts of their package.
Similar variants have been used by the Govt of India for its Speed post and
Registered Ad services where you can keep a track of your post by entering the code that
has been issued to you.
The mass customization allows the company to create web pages products and
services that suit the requirement of the user. A customized web page does not only
include the preferred layout of the customer but also a pre selection of goods the
customer may be interested in. For e.g. Yahoo! (www.yahoo.co.in) entered the Indian
cyberspace and started its personalized services.
A registered user of Yahoo can now personalize the front page with all the
information he needs. He can read the news of the world, add a tax calculator, see the
weather forecasts of his city and listen to his favorite songs and all this simultaneously.
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Internet might be a catchy advertising medium. But, there are quite a few issues
that need to be sorted out. Advertising on the Net is slowly catching on. In developed
economies, advertising on the Net accounts for anything between seven and 7.5 per cent
of the total advertising cake. Fine, how large is online advertising in India? Various
estimates put the size of online advertising in India between Rs 24 crore and Rs 29 crore,
which is much less than one per cent of the total advertising cake.
Why is online advertising so small in India? Why aren't the advertisers putting
their money on Net advertising? For instance, Hindustan Lever’s advertising budget is
upwards of Rs 700 crore and out of this; the company spends not more than Rs 25 lakh
on online advertising. Is this because Net penetration in India is not deeper? Yes, to an
extent.
For instance, advertising networks such as Media2Net, Right serve and Media turf
are doing their bid to fuel online advertising in India. Right serve of Hughes Software is
said to be spending nearly Rs two crore on seminars, advertisements and road shows for
creating awareness about the online advertising concept.
There is another reason why advertising on the Net has not really picked up. And
that is the perception that advertising on the Net is expensive. Is this perception right?
Compare the cost of a banner advertisement on the Net with a television commercial.
Though the cost of an advertising campaign on the Net could be anywhere between Rs
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15,000 and Rs 1.5 lakh, advertising in the press or television will cost upwards of Rs 50
lakh. Does this not make advertising on the Net cheap? No.
For, whether advertising on the Net is cost-effective or not depends on the value
per advertising Rupee. That means, it is essential to express advertising costs on the Net
in terms of cost per thousand (CPT). "A thirty- second television commercial will cost
between Rs 250 and Rs 300 per thousand, while a ten-second banner on a reputed site
such as Rediff.com will cost as much as Rs 500 to Rs 1,000 per thousand."
The implication value per Rupee spent on advertising is higher in the case of
television. That is efficiency is higher in the case of television advertising, while in
absolute terms advertising costs are lower as far as the Net is concerned. Fine, but how
are rates fixed for advertising on the Net? It is a difficult poser considering the fact that
rates for advertising on the Net have no rationale behind them. For instance, Rediff.com
just adopted the international rate charged by Yahoo.com.
Other websites in India just took the Rediff.com's rate as a benchmark and
adjusted th ir rates accordingly. But, the issue here is this: since the number of Net users
in India is limited now, these Indian rates are not justified. What are the emerging trends
as far as cost of online advertising is concerned? Currently, rates for a simple banner
advertisement on the Net need to come down. Already, Media turf is working in this
direction.
It wants to bring down the cost of Net advertising at least by 50 per cent. Media
turf believes that when the rates come down, volumes should go up. And that has been
the international experience. In the USA, when the rate for a full banner advertisement
fell from US $33.22 to US $30.52 per thousand impressions, online advertising outlays
too rose during the same period.
There are other reasons why advertising on the Net is not currently seen by
advertisers as cost-effective. One of them is the quality of desired responses. In many
cases, sums spent on advertising on the Net have not been deployed properly. There are
instances where advertisements have just been lifted and put on the banner. Though there
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are many early adapters in India, there is a big gap between these adapters and the
mainstream users. And most advertisers have too small budgets for advertising on the Net
to be bothered about wastages.
There could be wastages in online advertising, but one should not forget that
interactivity is the hallmark of online advertising and here it is possible to target the
audience by demography, psychography and technography. So, advertising agencies need
to take into account these factors while developing strategies.
But, wastages can be eliminated and online advertising can be made more
effective through various strategies. Some of them are: strategic tieups, sponsorships and
banner exchanges. For instance, the FMCG major Colgate-Palmolive has entered into a
strategic tie-up with the Calcutta-based FirstNet Solutions' portal Yantram.com for
promoting its Fresh Energy Gel toothpaste on the portal.
And Coca-Cola has appointed Hungama.com, an Indian portal for promotions and
contests, as its e-Advertising partner. Coca-Cola has gone ahead and launched a new
Web promotion dubbed Maaza Puzzle to promote its popular brand Maaza and has also
kicked off a series of e-promotions for the Hindi film "Hum To Mohabbat Karega".
Meanwhile, tie-ups for banner exchanges are also taking place. For instance,
Bidorbuy.com has tied up with Indiacar.com and Intel has sponsored a festival section on
Satyam Online.
Targeting imperatives
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how many sites in India have a large base of registered users? Perhaps Rediff.com has a
base of eight lakh registered users and Jobsahead.com has a base of about 1.50 lakh users.
If the weather is sunny, the solar is shown with the top down, and if it is cloudy or
raining, the top is shown up. How many such ads are visible on Indian websites?
Profiling tools too should help in cutting down wastages in online advertising. Mediaturf
has gone a step further by beta-testing an advertisement in a bid to gauge an user's
behaviour, the number of times he views an advertisement and his preferences in terms of
content when he is surfing on a site.
Online Constraints
As efforts to eliminate wastages in online advertising take off; efforts are also
needed to eliminate the attendant constraints. In online advertising, one can stream audio
and video technologies together with faster bandwidths and delivery channels in a bid to
present the same idea with the use of sound, music and visual imagery and make
interactions with the banner possible.
But, this is not possible in India, thanks to the existing bandwidth problems.
However, soon bandwidth will cease to be an issue. Despite the bandwidth constraint, the
Coco-Cola television commercial is being aired in Zeenext.com. This initiative has been
taken by Mediaturf and a Bangalore-based software programmer, who have found a way
to use the Net to air commercials with the dial-up mode and thus overcoming the
bandwidth constraint.
innovative banners and convergence of real-time advertising are not far. But, effective
online advertising calls for skills in consumer and relationship management. The
prospects are of course bright for online advertising. E-commerce will only help the
spread of online advertising. Estimates are that in a couple of years online advertising
could touch Rs 300 crore, two per cent of the total adspend in the country. And
Nasscom's estimates are that online advertising could touch Rs 750 crore by 2002.
Companies that have powerful brand awareness on the web all have sites that help
consumers do something – whether it’s configuring a computer system (www.dell.com)
on-line or offering personalized services like suburban railway pass ticket in Mumbai
(www.rediff.com).
The consumers could build the own computer by ordering the own configuration.
For e.g. On Nike’s site (www.nike.com), the customer can become a registered user and
customize the shoe of his choice. The customization highlights the value-for-money
aspect and induces the consumer to buy a product that meets his own requirement.
Now to be able to use the seven P’s effectively in order to achieve the predefined
goals of any organization it is imperative to understand the customers. Customization will
only be truly effective if we understand our customers and their true needs.
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Directed Information Seekers: They require specific, timely and relevant information
about the products and services being offered.
Undirected Information Seekers: These users require something interesting and useful.
Something that can give them an edge, advantage, insight or even a pleasant surprise.
Bargain Hunters: They are of two kind. One who look for free items on the internet and
other who are seeking better deals, higher discounts etc.
Entertainment Seekers: they see the Web as an entertainment medium of vast breath
and potential and want to explore the medium before the mass gets there.
Directed Buyers: They want to buy something - now. They are sure what they require
and just log on to the Web to purchase the item.
The value propositions of goods and services offered in the physical world differ
pointedly from those in the digital world. The ultimate aim of the universal advertiser is
to provide a complete end-to-end consumer experience---right from the promise to satisfy
his need to its delivery.
But the physical world offers only “Point Solutions” which is basically a solution
of his needs in terms of functional benefits. A credit card, for instance, allows consumers
to satisfy the immediate necessity of setting a transaction. But today’s consumers are also
looking for process and relationship benefit---book referrals at no extra cost or e-mail
reminders.
The physical world is not able to deliver these benefits because of gaps in time,
space and memory. The web, on the other hand provides all of these and more (“reverse
Advertising, for example, where consumers seek out vendors rather than the other way
around”) by giving the company the ownership and control over all interactions with the
consumer.
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The transformation being brought about the Web revolution is not limited to just
the consumer. The last few years have seen a flurry of suggested business models for
doing business in the Internet era. Will the Internet era signal the death of the retailer? Or
will a new intermediary come into existence?
The market information that a Choice board collects about customer preferences is
absolutely enormous and if the manufacturing company does not control it, the site
offering the Choice board can emerge as a powerful intermediary. Vertical portals armed
with sophisticated search engines, which specialize in a particular industry or product
category, and provide customized information and promote online community
development are the next emergent intermediaries.
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Attracting the Right Customer is the first crucial step. Rising digital penetration
would mean that the number of customer visiting particular sites would inevitably
go up. While the number of eyeballs or page views has so far been conveniently
used as a satisfactory measure by most web sites, it would be foolish to cater to the
whole spectrum of digital visitors. Content has to be very target specific. The
digital company has to select its target segment by finding out which section of
customers are the most profitable in terms of revenue transactions and who are the
customers who generate the maximum number of referrals. Here again it is
important to note that the majority of online customers are not seeking the lowest
price. Rather they are seeking convenience above everything else. The power of
customer referrals has never been so enormous, since word of the mouse spreads
faster than word of the mouth. E-Bay attracts more than half of its customers
through referrals. Not only do referred customers cost less to acquire than those
brought in by advertising or other Advertising tools, they also cost less to support
since they use their friends who referred them for advice rather than using the
companies’ own technical desk.
Delivering Content Value to engage the user’s interest is the critical importance in
retaining customer participation. This is because content serves as a powerful
differentiator. Content would include Product enhancements (Software patches for
glitches), personalized interactions (through customized navigation paths as seen
on the web sites of GM and Toyota) and Problem Resolution (updates of delivery
schedules and e-mail responses). Integral to the concept of delivering proper
content value is innovation. The retail financial services industry, for example, is
changing rapidly with multiple players jockeying for position. Product innovation
serves as a key tool to attract new customers. Priceline.com, for example, has
revolutionized the travel and related services business by letting in a form of
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Providing Digital value to the evolving consumer through his life cycle has
become possible because of customized interactions and emerging business
models. These models have often disturbed the traditional status quo and created
new rules of business. The sectors where new business models will emerge or
have emerged are the music industry, the financial services industry, the travel
industry, the relating segment and the publishing segment. Digital value is
delivered to the consumer by promising him convenience, allowing the customer
to feel his ownership of the Web experience, and giving the customer a sense of
belonging that traverses the physical boundaries.
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Traditional Advertising:
Traditional advertising is static.
Space is not a restricting factor
The proportion of advertising to editorial is high sometimes 50:50.
Does not evoke immediate action.
Response to the action is not immediate.
Advertisements are passively received.
Advertising does not always target a much focused audience.
Advertisements are ubiquitous.
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Advertisements catch users when they are on the lookout for something. For
example the search is for travel on a search engine there are ads of travel agents on the
net. Thus we see that advertising is changing and so are the rules for advertising on the
internet. So while designing or formulating any advertising strategy for a brand on the
internet a manager has to take in to account factors like: -
1. The Internet has made a huge impact on advertising. Companies should be careful as
regards joining the IT bandwagon. They should not advertise on the net just to project
themselves as a techno savvy company or maybe because their competitor is doing the
same thing. It should be a well-planned campaign full of specific information and
attention catching.
2. The 'net' charges are on the higher side (though there has been a steep decrease in the
rates in the last few months). Hence people would be wary of the fact that ads consume a
lot of online web time and hence they avoid clicking on average ads. Therefore,
advertises should be designed in such a fashion that they attract attention and induce
people to click on the net.
3. One more thing would be to generate 'search' specific advertising. This would mean
that if I give a search for books on the search engine, the ads displayed would be related
to the books.
4. Generally, people perceive the ads to be time consuming and full of unwanted
information. Care should be taken to design the ads in such a way that the information
they provide or the hyperlinks they provide to a site gives adequate and specific
information.
5. The ads and the subsequent information on the web site should be constantly updated
and highlighted in the ads and thus induce repeated clicks on the ad.
6. Last but not the least; the ads should be designed so as to attract attention of maximum
number of people and inducing them to click, failing to do so the advertiser ends up
defeating his own purpose.
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The Internet era has shown that companies have risked damaging relationships in their
physical chain to compete in the electronic channel. The ubiquity of the Internet the fact
that cross-linkages are possible to any degree, has meant that companies have usurped the
role of other value providers in the value chain to gain competitive advantage.
When companies pirate the value chain of the industry they are essentially eliminating
layers of costs that are build into the current distribution system. However, pirating the
value chain does not mean that the number of intermediaries in the whole process would
necessarily decrease.
The emerging economic structure of Electronic Commerce would mean that profits
would lie in the intermediate transactions rather than in the final sale of the good.
Companies would aim at cutting down their traditional margins (give up the cost plus
pricing structure) and aim at high inventory turnover. In retailing profitability is
primarily.
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It is likely that most companies will find that they will have to integrate several
distribution channels to provide the customer with a seamless purchase process. The key
challenge is thus to ensure that the personalized nature of the experience is not much
different across channels.
Can an Internet bookseller allow its customers to experience the same ambience
on the net as it does in the bookstore or vice-versa? If it cannot then companies will face
friction among the alternative distribution channels and the already established physical
channel might complain about its profitability being affected by digital purchases.
This may be typified by friction between vehicle dealers and the company over
orders trough an auto company’s Web site. Complementary to the problem of managing
multiple channels of distribution is the development of infrastructure needed to support
such a distribution network. The billing system and pricing strategies have to be properly
frames and executed
Online has always taken a back seat to offline in brand building. Yet online offers
the best options for building a meaningful brand, options that didn't exist only a few years
ago. Companies without a solid digital brand strategy are literally being left behind as
leaders build new digital brands. Reflecting on the current state of online advertising, the
majority of online advertisers are doing a terrible job of building their digital brands.
Advertisers are fighting tooth and nail to produce the world's worst advertising,
actually destroying their existing offline brands in the digital realm. For the most part, if
one looks at ads that run during top TV programs or that appear in top magazines, one
will find quality in the advertising (even if the ads are a bit dry and boring).
But if one looks at a top web site and views a few dozen ads, it will be very
difficult to find quality advertising. In effect, the bulk of the ads online do more harm
than good to the brands they are trying to build. In one industry after another, aggressive
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Internet upstarts are putting established brands at risk, creating very strong brand
recognition and enjoying explosive visitor growth.
The reason may have less to do with the established brands themselves than with
their managers. Advertisers know what a brand is in the physical world: the sum, in the
consumer’s mind, of the personality, presence, and performance of a given product or
service. These "3 Ps" are also essential on the World Wide Web. In addition, digital
brand builders must manage the consumer’s on-line experience of the product, from first
encounter through purchase to delivery and beyond.
Digital brand builders should care about the consumer’s on-line experiences for
the simple reason that all of them—good, bad, or indifferent—influence consumer
perceptions of a product’s brand. To put it differently, on the Web, the experience is the
brand. Consider an example. If a consumer buys lipstick from a retailer in the physical
world and has an unpleasant in-store experience, she is more likely to blame the retailer
than the manufacturer.
But if the consumer purchases that same product from Procter & Gamble’s
Reflect.com Web site, her wrath is more likely to be directed at P&G. Thus the on-line
advertiser’s objective shifts from creating brands—at least as defined in the off-line
world—to creating Internet businesses that can deliver complete, and completely
satisfying, experiences.
Yet many advertisers, particularly those whose experience is limited to the off-line
world, lack a coherent framework and concrete methods for achieving the broader
objectives of on-line brand building. These advertisers need an approach for aligning the
promises they make to consumers, the Web design necessary to deliver those promises
on-line, and the economic model required to turn a profit.
These three elements—the promise, the design, and the economic model—
together form the inseparable components of a successful Internet business, or what
might be called a digital brand. In one industry after another, aggressive Internet upstarts
are putting established brands at risk, creating very strong brand recognition and enjoying
explosive visitor growth The reason may have less to do with the established brands
themselves than with their managers.
Advertisers know what a brand is in the physical world: the sum, in the
consumer’s mind, of the personality, presence, and performance of a given product or
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service. These "3 Ps" are also Consumers Turning to Digital Brands essential on the
World Wide Web. In addition, digital brand builders must manage the consumer’s on-line
experience of the product, from first encounter through purchase to delivery and beyond.
Digital brand builders should care about the consumer’s on-line experiences for
the simple reason that all of them—good, bad, or indifferent—influence consumer
perceptions of a product’s brand. To put it differently, on the Web, the experience is the
brand. Consider an example. If a consumer buys lipstick from a retailer in the physical
world and has an unpleasant in-store experience, she is more likely to blame the retailer
than the manufacturer.
But if the consumer purchases that same product from Procter & Gamble’s
Reflect.com Web site, her wrath is more likely to be directed at P&G. Thus the on-line
advertiser’s objective shifts from creating brands—at least as defined in the off-line
world—to creating Internet businesses that can deliver complete, and completely
satisfying, experiences. Yet many advertisers, particularly those whose experience is
limited to the off-line world, lack a coherent framework and concrete methods for
achieving the broader objectives of on-line brand building. These advertisers need an
approach for aligning the promises they make to consumers, the Web design necessary to
deliver those promises on-line, and the economic model required to turn a profit. These
three elements—the promise, the design, and the economic model—together form the
inseparable components of a successful Internet business, or what might be called a
digital brand.
Building Trust
Bringing the six elements of trust to your Internet value proposition, though, does
not automatically lead to deep, trusting relationships. That comes through a step-by-step
process in which the consumer and advertiser exchange value. Each time the consumer
volunteers some personal information, the advertiser rewards the consumer with a more
personalized service. This mutual give-and-take eventually leads to an advanced
collaboration based on trust. The research has identified four stages of trust building:
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Attraction
At the first stage, the consumer browses the site and even makes a transaction. No
real relationship exists between the advertiser and the consumer, and none may be
warranted. The best strategy is to provide the consumer with information, without
demanding any in return.
At first blush, this may seem like an imbalance between what advertisers give and
what they get back. But what the consumer is giving the advertiser is something quite
valuable: time and attention, along with a view of how the site is traversed. The time and
attention translates into the "mind share" needed to create a brand preference.
The average consumer on Ralston Purina’s Dog Chow Web site, which offers no
product for sale, spends more than six minutes per session learning how to care for pets.
That’s far more time—and concentration—than consumers devote to a 30-second TV ad.
User-Driven Personalization
At the second stage, consumers start shaping Web pages to their specific tastes.
For example, CDnow customers can personalize their home pages with favorite artists
and wish lists. The company shows that it is willing to deliver some value to the
consumer before gaining financially.
Charles Schwab now invites users to set up a personal page through the
MySchwab service, where users can not only track stocks but also get customized sports
news, weather information, and even cartoons. Users aren’t required to open a Schwab
account to do so.
Advertiser-Driven Personalization
In the third stage, advertisers begin using insights provided by consumers to beam
information back to them. Thus, CDnow uses its knowledge of consumers—developed at
the earlier stages of trust—to suggest products they might like which consumers then rate
as either on- or off-target.
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Too often they bombard consumers with promotional offers as soon as they get
their hands on an e-mail address. We suggest a gradual approach, as nothing aggravates
many Internet users more than unsolicited e-mail. A best practice is to let the user set the
pace of personalization and contact from advertisers.
Trust-Based Collaboration
At the final stage, the advertiser and the consumer work together closely. The
consumer gives the advertiser access to the most sensitive personal information (family,
finances, or health) and in turn gains customized experiences and consultative problem-
solving assistance. In our view, very few on-line advertisers have reached this level of
trust with their consumers.
Trust building at a basic level may be enough for some advertisers, particularly if
greater trust does not bring greater spending by consumers. Only by sustaining trust can
advertisers expect to establish enduring relationships with consumers, and it is by
keeping a central focus on that idea that advertisers build a value exchange that delivers
consistent and progressive mutual benefits. With the six building blocks of trust in place,
advertisers should be able to chart a course for building great on-line businesses.
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BENEFITS CONCERNS
• Cost, Measurability, Formatting, • Banner blindness, Fraud on the
Targeting, Coverage, Speed advertiser, Technological variations,
Privacy concerns, Trustworthiness of
advertisers, Spam, Privacy and data
collection
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FINDINGS:
Through this study we can conclude that the most promising and effective digital
marketing tools seem to be; Content marketing, SEO, SMM
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Basically, content marketing is the art of communicating with your customers and
prospects without selling. It is non-interruption marketing. Instead of pitching your
products or services, you are delivering information that makes your buyer more
intelligent. The essence of this content strategy is the belief that if we, as businesses,
deliver consistent, ongoing valuable information to buyers, they ultimately reward us
with their business and loyalty.
And they do. Content marketing is being used by some of the greatest marketing
organizations in the world, including P&G, Microsoft, Cisco Systems, and John
Deere. It’s also developed and executed by small businesses and one-person shops
around the globe. Why? Because it works.
Go back and read the content marketing definition one more time, but this time
remove the relevant and valuable. That’s the difference between content marketing and
the other informational garbage you get from companies trying to sell you “stuff.”
Companies send us information all the time – it’s just that most of the time it’s not very
relevant or valuable (can you say spam?). That’s what makes content marketing so
intriguing in today’s environment of thousands of marketing messages per person per
day. Good content marketing makes a person stop…read… think… behave… differently.
Thought leaders and marketing experts from around the world, including the likes
of Seth Godin and hundreds of the leading thinkers in marketing have concluded
that content marketing isn’t just the future, it’s the present (see the video below on
the history of content marketing).
You may have heard of Search Engine Optimization (SEO), which is an online
marketing strategy that improves search engine rankings of a website along with online
traffic. After finding out what SEO is you may be wondering how SEO will benefit you
and your website.
It is beneficial to adapt or design a site for SEO. Adapting or designing a site for
SEO leads to:
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Search Engine Optimization (SEO) is beneficial for a website. Not only does it
optimise a site and increase visitor traffic, but, it increases a site’s money making
potential. This helps to make a site more successful. Take time to learn more about SEO
and its importance.
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IX. CONCLUSION
Consumers have shut off the traditional world of marketing. They own a DVR to
skip television advertising, often ignore magazine advertising, and now have become
so adept at online “surfing” that they can take in online information without a care for
banners or buttons (making them irrelevant).
Online marketing allows consumers of the world to research and purchase services
and products at their own pace and convenience. This is massively appealing to the many
diverse societies of the world. People are also drawn in better if the option of choice is
abundant and results are seen quickly.
Online marketing allows for statistics to be measured more easily and at a lower
cost. Virtually all elements of an online marketing campaign can be traced and tested in
some way, shape or form. Methods in which this can be done include pay per impression
(CPM: cost per thousand viewers), pay per click (PPC: a host company is paid every time
an advertisement is clicked on), pay per play (PPP: pay per audio advertisement played)
or pay per action (PPA: an advertiser pays for a specific action related to an
advertisement, such as a form submission or a purchase). Web analytics are also a useful
tool in being able to effectively track the exposure, response and overall efficiency of
online marketing by collecting, analysing and reporting back internet data. Here,
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advertisers can determine the best return on investment (ROI). Tracking and measuring
can be done almost instantaneously since online marketing encourages interaction by
clicking on the ad and visiting the website, as well as other target actions.
Pay per click advertising is notably the most effective means of generating
immediate traffic to a website. Advantages of this form include only paying when a user
interacts with an ad (clicks on it), the source of traffic can be easily tracked as well as
identify which ads are achieving the best result in a campaign, and targets an audience
more specifically (ads appear when a web user searches for keywords that are relevant to
a specific company or business).
Tools that can be used to make an online marketing campaign at its most effective
include:
Content – better content makes for abetter website. Content should be packed
with keywords that search engines can easily pick up on when a web user is online.
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Keywords in online marketing are truly a quality tool as this is what will draw a targeted
audience onto your website.
New material and updates – constant and consistent updates whereby new
information is added will give your website content more bulk that has the added benefit
of enticing viewers to return. Improvements will by no means go unnoticed by the public
at large.
Blogs – are fast becoming essential tools for online marketers as they can build a
content rich website, as well as attract targeted traffic from all major search engines.
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Reference
Websites
http://contentmarketinginstitute.com/what-is-content-marketing/
http://www.slideshare.net/factor3/an-overview-to-digital-marketing
https://www.coursera.org/learn/marketing-digital
e-BOOKS
Social Media Marketing For Dummies
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