Baines & Fill: Marketing, 3Chapter

rd
edition 17: Digital and Social Media Marketing
 Learning Outcomes

• Define digital marketing and social media marketing.

• Explain how digital marketing is evolving from Web
1.0 to Web 3.0.
• Discuss key techniques in digital marketing and
social media marketing.
• Review how practitioners measure the effectiveness
of social media marketing.
• Discuss crowdsourcing and explain how online
communities can be harnessed for marketing
purposes

Baines & Fill: Marketing, 3rd edition

 Case Insight: Virgin Media

• Virgin Media pioneered ‘quad play’

becoming the first UK provider of all four
broadband, TV, mobile and home phone
services.
• Number of their competitors including BT,
Sky and TalkTalk followed their lead
offering similar bundles of services. Virgin
needed to maintain broadband leadership
and felt superfast broadband could
become real point of differentiation.
• Social media was seen as a fundamental
component of their marketing.

• How could Virgin Media use social

media to support their advertising
campaign featuring Usain Bolt, and
execute the above strategic objectives,
to promote superfast broadband?

Baines & Fill: Marketing, 3rd edition

 Introduction to Digital Marketing

• Many of the social interactions and information exchanges, we

engage in today are facilitated by digital technologies.
• By 2012, Internet penetration stood at 15.6% in Africa, 27.5% in
Asia, 63.2% in Europe, 40.2% in the Middle East, 78.6% in
North America, 42.9% in Latin America/Caribbean and 67.6% in
Oceania/Australia (Internet World Stats, 2012).
• With rising broadband penetration (increasingly via mobile
devices), the adoption of digital and social media marketing
techniques have become common, Blogs, microblogs, social
networking sites, wikis and other multimedia sharing services
have become commonplace.
• Consumer expectations of interaction with the web and
organizations have changed, changing how we need to market
in digital space.

Baines & Fill: Marketing, 3rd edition

 Defining Digital Marketing

Baines & Fill: Marketing, 3rd edition

 Types of Digital Marketing Activities

Baines & Fill: Marketing, 3rd edition

 Types of Digital Marketing Activities II

Baines & Fill: Marketing, 3rd edition

 Marketing’s Digital Evolution

Baines & Fill: Marketing, 3rd edition

 Types of Digital Marketing

Baines & Fill: Marketing, 3rd edition

 Internet Advertising

• Use of the Internet for the purpose of ‘advertising’ to:

– increase website traffic (i.e., click-through)
– Encourage product trial, purchase
– Encourage repeat purchase activity (i.e., conversion).
• Examples: display advertising, classified listings, rich media ads,
search marketing.
• In 2011, online advertising spend was around £4.78bn in the UK
(IAB, 2013), exceeding TV advertising spend at £4.36bn (Thinkbox,
2012)..
– Growth in search engine marketing (up 18% to £2.77bn)
– Dedicated tablet advertising (up 2288% on 2010, generating £2.45m)
and affiliate search listings (up 3012% to £38.73m).
– Decline in display advertising saw a decline (down 71% on 2010 to
£7.86m),
– Decline in interruptive formats (e.g. pop-ups, which declined 14.4% on
2010 to £20.89m).

Baines & Fill: Marketing, 3rd edition

 Internet Advertising

Baines & Fill: Marketing, 3rd edition

 Search [Engine] Marketing

• SEM is a set of marketing methods to increase the visibility of a

website in search engine results pages (SERPs).
• Is one of the most important and cost-effective methods of
digital marketing.
• UK spend of £2.77bn in 2011 accounting for about 58% of total
UK online ad spend.
• SEM methods include (SEMPO, 2010):
– search engine optimization (SEO),
– paid placement (PPC),
– contextual advertising,
– digital asset optimization
– paid inclusion

Baines & Fill: Marketing, 3rd edition

 Search [Engine] Marketing

Paid listings -
Pay Per Click (PPC)

Natural or organic listings -

Search engine optimization (SEO)

<title> </title> tags <meta name=“description = > tags

Or Snippets from page

Tip: Craft engagement messages for search results page

Test with site: www.domain.com <keyphrase>
Baines & Fill: Marketing, 3rd edition
 Email Marketing

• Method of marketing by electronic mail wherein the recipient of the

message has consented to receive it (Opt-in/Opt-out).
• Benefits: easy to use, costs little to produce, costs next to nothing to
send, and has the potential to reach millions of willing prospects in a
matter of minutes.
• Very powerful and cost-effective tool for digital marketers:
– Direct Marketing Association (DMA) projected that email marketing
will generate a return on investment of US$39.40 for every US$1
spent in 2012, dropping to $35.02 by 2016.
• Helps to not just sell but:
– Build a brand's relationship with a consumer
– Create a sense of trust
– Retain loyal customers
– Generate revenue as well as referrals.
• Opposite to SPAM – unsolicited email marketing

Baines & Fill: Marketing, 3rd edition

 Fundamentals of Email Marketing

Baines & Fill: Marketing, 3rd edition

 Fundamentals of Email Marketing II

Baines & Fill: Marketing, 3rd edition

 Viral Marketing

• Viral marketing describes any strategy that

encourages individuals to digitally pass on a
marketing message to others, creating the
potential for exponential growth in the
message's exposure and influence.
• 6 points for an effective Viral Marketing
Campaign:
– Gives away products or services
– Provides for effortless transfer to others
– Scales easily from small to very large
– Exploits common motivations and
behaviours
– Utilizes existing communication networks
– Takes advantage of others' resources

Baines & Fill: Marketing, 3rd edition

 Social Media Marketing

• Social Media Marketing (SMM) is a form of digital marketing that

describes the use of the social web and social media for marketing
activities - be it sales, public relations, research, distribution or
customer service.
• Aim is to build a brands and/or individuals social capital – Social
Brand Equity. Social capital, is the relations among individuals
(Coleman, 1988).
• Four key areas where social media marketing differs from other
digital marketing activities:
- Sharing Control
- User-Generated and Co-Created Content
- Community and Social Networks
- Conversations and Dialogue

Baines & Fill: Marketing, 3rd edition

 A List of Social Media Marketing Metrics I

Baines & Fill: Marketing, 3rd edition

 A List of Social Media Marketing Metrics II

Baines & Fill: Marketing, 3rd edition

 Advergaming

• The use of computer and video games as a medium in which to deliver

advertising. Advergames consist of
– Membership models of multiplayers (e.g., MMORPG such as World
of Warcraft),
– Applications downloaded to a mobile device or added to an online
social network
– Viral games wherein the game is passed on from user to user on
the web.

• Most advergames require users to register, allowing for the collection of

data for marketing research and other marketing initiative.
• ‘Perceived playfulness’ important: defined as the degree to which a
current or potential users believes that the technology will bring him or
her a sense of enjoyment and/or pleasure.

Baines & Fill: Marketing, 3rd edition

 Trends in Advergaming

• Two rising trends in digital gaming platforms are social networks and
mobile phones.
• Social Networks
– Applications such as ‘FarmVille’ or ‘Bejeweled’ which induce users
to play games with their friends.
– Facebook now has had more than 52,000 applications, allowing
Facebook users to send each other virtual hugs, share movie picks
and play games
– Every month more than 70% of Facebook users engage with
platform applications, with more than 9,000 applications having
over 10,000+ monthly active users (Facebook, 2010).
• Mobile Phones
– By the end of 2012, the Google Play app store was offering almost
as wide a range as Apple’s store at 675,000 and 700,000 apps
respectively and achieved 25 billion apps downloaded, a figure
Apple had achieved in the first half of 2012 (Reisinger, 2012).

Baines & Fill: Marketing, 3rd edition

 Mobile Marketing

• The global mobile market reached 6.0bn units by year-end 2011, and,
Asia & Pacific remained the world’s largest region, accounting for 48%
(2.9bn) of global mobile connections, mainly due to strong growth in
India and China (Anon,2012b)

• Mobile Marketing is the set of practices that enables organizations to

communicate and engage with their audience in an interactive and
relevant manner through any mobile device or network (MMA, 2009).

• It differs from traditional mass marketing across four elements:

1) Scope of audience
2) Type and format of messages
3) Location-based targeting
4) Response tracking

Baines & Fill: Marketing, 3rd edition

 Types of Mobile Marketing I

Baines & Fill: Marketing, 3rd edition

 Types of Mobile Marketing II

Baines & Fill: Marketing, 3rd edition

 Crowdsourcing

• “Crowdsourcing, a term that combines ‘crowd’ and ‘outsourcing’,

loosely means engaging a large group of people to come up
with an idea or solve a problem. Some companies use the
process to draw on the knowledge and opinions of a wide body
of internet users to create better products and marketing plans,
or solve other problems” (Vallone, 2011)
• Can be used in three main areas, for crowdsourcing help with:
1) routine activities
2) content
3) creative activities

Baines & Fill: Marketing, 3rd edition

 Forms of Crowdsourcing (CS)

Baines & Fill: Marketing, 3rd edition

 Key Digital Marketing Considerations

• Jurisdiction:
– Where does digital marketing activity actually take place?
• Ownership:
– Who owns the content we create and share?
• Permissions:
– Do you have the right permissions to upload and share
content?
• Security:
– How secure is the data and information you share?
• Accessibility:
– Does everyone who wants access have access?

Baines & Fill: Marketing, 3rd edition

 Summary

• Defined digital marketing and social media

marketing
• Described how digital marketing has evolved
from Web 1.0 to Web 3.0.
• Discussed key techniques in digital marketing
and social media marketing.
• Reviewed how practitioners measure the
effectiveness of social media marketing.
• Discussed crowdsourcing and explain how
online communities can be harnessed for
marketing purposes.

Baines & Fill: Marketing, 3rd edition