Professional Documents
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SUMS OR
COUNTS PERCENTAGES
TOTALS
AVERAGES RATIOS
DIGITAL MARKETING FUNNEL
• a model that illustrates the process potential customers go through
when considering whether or not to buy a product or service
• the funnel allows businesses to track their progress and performance
at each stage of the customer experience, from awareness all the way
to purchase
• it can also help businesses identify areas for improvement in their
marketing strategy
• to identify traffic audiences and nurture them with frameworks such
as content marketing to later convert them into customers
PROFIT AND LOST STATEMENT (P&L)
• Is also known as income statement or statement of operations
• A financial report that provides a summary of a company’s revenues,
expenses, and profits/losses over a given period of time
• To determine the profitability of a business
• Shows a company’s ability to generate sales, manage expenses, and
create profits
• Is prepared based on accounting principles that include revenue
recognition, matching, and accruals
ACCOUNTING METHOD FOR P&L
• The digital marketing ROI calculates the profit or the loss that is
produced after an investment in digital marketing is made
DIGITAL MARKETING - RETURN ON
INVESTMENT (ROI)
• The digital marketing ROI calculates the profit or the loss that is produced
after an investment in digital marketing is made
• The key components of the ROI equation:
1. Average Revenue per Sale
o the average value that is produced for each order or transaction over a period
of time
o Revenue / Number of Transactions = Average Revenue per Sale
2. Profit Margin
o profitability of a product, service, or business
o expressed as a percentage – the higher the percentage, the more profitable
the business is
o Revenue – Expenses = Profit
3. Customer Lifetime Value (CLV)
o a prediction of all the value a business will derive from their
entire relationship with a customer
o helps you think about how to optimize your acquisition
spending for maximum value rather than minimum cost
o Lifetime Transactions x Lifetime Revenue – Lifetime Expenses =
Customer Lifetime Value
4. Customer Acquisition Cost
o the cost associated with convincing a customer to buy a
product/service
o Total Acquisition Spend / Number of Acquired Customers =
Customer Acquisition Cost
HOW TO IMPROVE ROI IN DIGITAL
MARKETING
1. Monitor the right ROI metrics
• the key metrics for your campaign should align with your business goal
• if your business goal is getting more sales, revenue is the most important
metric to track
2. Identify areas for improvement
• find underperforming metrics and take steps to improve them
3. Create higher-value content
• revisit your social media messaging
• publish content customers want
4. Test different offers
• if you always pitch the same offer for your product or services, you may find that
interest gradually wanes
• few offers to test out and compare against benchmarks:
o Free shipping
o Limited-time discounts
o Limited-quantity products
o Coupon codes for subscribers
o Special sales for loyal customers
5. Experiment with new channels
• E.g.if you’re only using Facebook, channels like Instagram or Twitter may help you build
your brand
6. Leverage marketing automation tools
• one of the best ways to reduce costs is to decrease the number of manual tasks your
team does
• the fewer repetitive tasks you have to handle, the less time you need to spend on
marketing campaigns
• marketing automation tools can handle repetitive tasks (e.g. facebook chat plugins,
facebook ads)
DIGITAL MARKETING STRATEGIES
• A digital marketing strategy is a set of planned actions performed
online to reach specific business goals
• Digital marketing strategy means performing consistent actions at the
right time via the most suitable online channels to increase revenue
and improve relationships with your audience
• In an era when many consumers transact business on their mobile
devices, a well-executed digital marketing strategy can be crucial to
organizational success
• Marketers need to evaluate their organization’s owned, paid,
and earned media:
1. Owned Media — Owned media represents any communication
channels that an organization owns and operates under their
complete control. From websites and blogs to podcasts and video
channels, organizations can leverage owned media to fit just about
any marketing strategy or tactic.
2. Paid Media — Paid media refers to content that third parties
display in exchange for compensation from the owner. From
sponsored content to influencer marketing and digital advertising,
paid media is prevalent in many digital marketing strategies.
3. Earned Media — Earned media refers to third-party content that is
completely separate from the company or brand. In the digital
world, this type of exposure often occurs in the form of awards,
testimonials, reviews, or user-submitted content.
COMMON EXAMPLES OF DIGITAL
MARKETING TACTICS
• Search Engine Optimization (SEO) — SEO refers to the practice of
optimizing content to improve rankings in major search engines. By
following established SEO practices with all digital content,
organizations can better reach prospective customers through major
search engines.
• Social Media Marketing (SMM) — SMM is the practice of utilizing
social media networks to reach customers and communicate
corporate messaging. Businesses that leverage Social Media
Marketing tactics effectively can reach customers directly through
their preferred social channel.
• Digital Advertising — Digital advertising refers to the placement
of company ads in various online locations, including search
engines and social media networks. Paid placement in search
results and pop-up ads are examples of digital advertising.
• Pay-Per-Click (PPC) Advertising — PPC advertising is a subset of
digital advertising where companies place ads with a third-party
website to drive online traffic. But unlike other forms of
advertising, companies only pay for PPC advertising when a user
clicks on the link.
• Content Marketing — Content marketing is the practice of
utilizing a company’s owned media channels to target
prospective customers. When companies create and post high-
quality content on a regular basis, it can help improve rankings
and drive traffic to their website.
• Website Marketing — Within the domain of content marketing,
an organization’s website is an extremely powerful tool. By
creating geo-targeted and optimized landing pages, an
organization can become a thought leader within their industry
and reel in potential customers with effective call-to-action
messaging.
• Email Marketing — Used to drive engagement with a current or
prospective audience base or to grow customer relationships.
Email marketing services are a strong tool with proven success.
• Downloadable Content — A subset of website strategy,
downloadable content provides an efficient way to build leads.
Companies can produce high-quality content that prospects can
download for free, providing valuable contact information in the
process.
HOW TO DEVISE EFFECTIVE MARKETING
STRATEGIES
• Conduct S.W.O.T Analysis
• Establish S.M.A.R.T (under KPI) Business Goals
• Engage in Market Segmentation
o Demographic
o Firmographic
o Psychographic
o Behavioural
• Create Buyer Personas
o fictional profiles that represent the customer
o helpful in helping to understand a company’s customers
• Identify Budget Constraints
RISK MANAGEMENT
• The process of identifying, assessing and controlling threats to an
organization's capital and earnings
• The continuing process to identify, analyze, evaluate, and treat loss
exposures and monitor risk control and financial resources
• To mitigate the adverse effects of loss
• There are 5 basic methods of risk management:
1. Avoidance
2. Retention
3. Sharing
4. Transferring
5. Loss Prevention and Reduction
RISK MANAGEMENT IN DIGITAL
MARKETING
• Risk management is a distinctive management plan of the digital
marketers to behold the hazardous circumstance and to prevent the
intensity of future risks
• For any digital marketing, the administration of a risk management
plan is necessary to reduce the upcoming risk that can mar your
overall progress
EXAMPLES OF RISKS ASSOCIATED WITH DIGITAL
MARKETING
1. Lack of a Clear Digital Marketing Strategy
• Sales pipeline – This pipeline is a visual and real display of the current state of
company and not creating a plan with lead to fewer sales, lead which
inevitably leads to a decrease in sales and profit
• Weak online presence – buyers are growing more skeptical and judging based
on a company’s digital engagement and the risk of misinterpretation of
information
2. Risks of Exposure and Risk of Defamation
• chances of public ridicule
• a single mistake can affect the reputation of the organization
• permanent damage caused by this online misstep and the stronger and
outgoing a digital campaign is, the higher the risk of offending the community
3. Risks In Using Services
• the use of Search Engine Optimization (SEO) tools as well as Search Engine
Marketing (SEM)
• SEM: This form of paid advertising permits an organization to promote
advertisements on search engines like Google, Yahoo and pay as soon the ad
results into a click
• Risks in SEM – Due to the vast variety in the available metric evaluation tools,
there is pressure in choosing the most effective tool specific to the company’s
campaign. There is risk of spending over budget, targeting the incorrect
audience leading to less traffic to the organization’s website
• SEO: Search Engine Optimization is one of the more popular tools for
marketing in this era. Every time a user searches for your brand or service or
anything relatively close this tool shows the consumer the option of your
website at the very top
• Risks in SEO – The failure to meet the requirements of Google’s algorithm will
lead to no results
4. Lack of Research for Target Audience
• not defining the target segment for your campaign can open up
the organization to risks like waste of money, resources and failure
of achieving the goals
• an added risk of information bombarding your target as well as
information being lost in the sea of advertisements on the internet
5. Misleading Bot Traffic
• Privacy Protection – with increasing awareness among consumers,
the concerns about privacy are openly voiced. Targeting your
audience and displaying ads includes the risk of bad faith. This risk
can be avoided by being transparent and being clear on your
privacy policy to ease consumers and make them feel safe
6. Omni-Channel Marketing
• sole reliance on a single channel can be too risky
• Single-channel marketing strategies – too much
dependence on one channel delivers the wrong brand
image. Multiple techniques like emails, social media, KOL
(Key opinion leaders) and events with many more can
effectively deliver the message
7. Trademark Infringement
• these have several forms like words, logo or taglines and it is
highly possible that a particular firm has been unknowingly
using registered trademarks from another company