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An Integrated Approach to Internet Marketing
Minder ChenMartin V. Smith School of Business and Economics
CSU Channel Islands
Internet Marketing - 2 © Minder Chen, 1996-2014
Evolutions
• Directory Services to Search Engines
• Submission services to Search Engine Optimization services
• Double Click (Banner Ads) to Ad Sense & Ad Words
• Websites to social networks
• Online shopping to online research
In 2012, Internet advertising revenues in the US totaled $36.57 billion, a 15.2% increase over the $31.74 billion in revenues in 2011.
Internet Marketing - 3 © Minder Chen, 1996-2014
Moving from Web 1.0 to Web 2.0
Source: http://oreilly.com/web2/excerpts/web2-architectures/chapter-3.html
Internet Marketing - 4 © Minder Chen, 1996-2014
Impacts of Your Digital Footprint to Marketing and Sales
92.5%
Internet Marketing - 5 © Minder Chen, 1996-2014
Keywords Are Very Telling
Internet Marketing - 6 © Minder Chen, 1996-2014
Keywords Reveal Customer’s Intentions
Purchase stage Potential Search Terms Used
Awareness smart phone, best smart phone
Consideration /Evaluation
compare Andriod and iPhone, iPhone 4G, iPhone vs. Android features
Conversion/Purchase iPhone 4 at AT&T stores, Android and iPhone price plan comparison
• Search keywords• Ad Words keywords• Organic keywords
Internet Marketing - 7 © Minder Chen, 1996-2014
Anatomy of a Search Engine Results Page (SERP)
SEM
SEO
Landing page
after searching “shoes online”
Internet Marketing - 8 © Minder Chen, 1996-2014
Key Internet Marketing Strategies
• Search engine optimization (SEO) - no cost per click
• Search engine marketing (SEM) - cost per click
• Social Media Marketing (SMM)– Words of mouth marketing (free)
– Ads on social network Web sites
Internet Marketing - 9 © Minder Chen, 1996-2014
Search Engine Optimization (SEO)
(Meta tags, etc.)
(Back links)
(Content is the king)
Internet Marketing - 10 © Minder Chen, 1996-2014
Keywords with Highest Cost Per Click (CPC)
• Most expensive keywords in UK at http://www.hallaminternet.com/2012/the-most-expensive-google-adwords-keywords-infographic/
1. mesothelioma** trial attorney ($492) 2. new mexico mesothelioma lawyer 3. mesothelioma trial lawyers 4. New Orleans mesothelioma lawyer 5. mesothelioma netSource: http://www.spyfu.com/o/TopListAll.aspx
**Mesothelioma is most commonly caused by exposure to asbestos
Internet Marketing - 11 © Minder Chen, 1996-2014http://www.wordstream.com/articles/most-expensive-keywords
Internet Marketing - 12 © Minder Chen, 1996-2014
Social Media Marketing
“Social media marketing refers to the process of gaining website traffic or attention through social media sites.”
-- Wikipedia entry
Internet Marketing - 13 © Minder Chen, 1996-2014
Internet Marketing - 14 © Minder Chen, 1996-2014
Source: Erik Tarkiainen, Vice President, Marketing Communications at Line 6http://faculty.csuci.edu/minder.chen/MIS310/slide/Social%20Media%20Marketing.pdf
Internet Marketing - 15 © Minder Chen, 1996-2014
Top 10 Social Network Web sitesRank Web Site Category Primary value
1. FacebookSocial Networking
Strong Profile Rankings
2. Twitter CommunityPromote Link-Worthy Content
3. LinkedInProfessional Networking
Strong Profile Rankings
4. Wikipedia Wikis Strong Profile Rankings6. Digg Social News Strong Profile Rankings7. YouTube Video Strong Profile Rankings
8. StumbleUponSocial Tagging
Strong Profile Rankings
9. Reddit Social News Direct Link Sources10. Yelp Reviews Strong Profile Rankings
(source: Link, , 9/12/2013)
For the first 9 months of 2013, Twitter's revenue came in at $422 M. But losses also increased, to $134 M.IPO $26 per share and went up to 74.7% higher at $44.90On Nov. 7, 2013.
Internet Marketing - 16 © Minder Chen, 1996-2014
Internet Marketing - 17 © Minder Chen, 1996-2014
Zappos.Com CEO Tony Hsieh’s Twitter Page
Internet Marketing - 18 © Minder Chen, 1996-2014
Kogi Korean BBQ Taco Truck in Los Angeles
@KOGIBBQ ON TWITTER , http://kogibbq.com/, http://twitter.com/kogibbq/
Active Social Media Users are Influential Offline Consumers
Offline Activities
Online Spending Power
Influence
Social Networking Activities
Source: Link
Internet Marketing - 20 © Minder Chen, 1996-2014
Word-of-mouth recommendations (earned advertising) from friends and family are the most influential and the most trustworthy.
Source: Nielson Global Survey of Trust in Advertising, Q3 2007 and Q1 2013 (link)
Internet Marketing - 21 © Minder Chen, 1996-2014
Social Network Marketing
http://sphotos-a.xx.fbcdn.net/hphotos-snc7/483831_10151351708346234_1134374643_n.jpg
Internet Marketing - 22 © Minder Chen, 1996-2014
Internet Marketing Issues
• Communication– Link to outdated landing page
• Errors/Typos in Posts– Cannot recall wrong information
– Kogi: 2 minutes instead of 20 minutes
– Pleasant Holidays: $299 instead of $499
• Managing Expectations– Responding to posts
• Communication– Link to outdated landing page
• Errors/Typos in Posts– Cannot recall wrong information
– Kogi: 2 minutes instead of 20 minutes
– Pleasant Holidays: $299 instead of $499
• Managing Expectations– Responding to posts
Internet Marketing - 23 © Minder Chen, 1996-2014
Performance Measure FormulaAverage Gross Margin per Visitor =
(Conversion rate x Average sale per purchase) – (Campaign Costs / Visitors)
Return of Advertising =
[(Impressions x Click through rate x Conversion rate x Average sale per purchase) – Campaign Cost] / Campaign Cost
Revenue =
Traffic x Conversion rate x Avg. sale per purchase
Internet Marketing - 24 © Minder Chen, 1996-2014
Marketing Funnel
http://www.rosetta.com/WhoWeAre/ThoughtLeadership/SearchandMedia/Pages/SocialMediaandtheNewMarketingFunnel.aspx
Internet Marketing - 25 © Minder Chen, 1996-2014
Get Customers and Grow Customers
http://steveblank.files.wordpress.com/2012/02/full-mobile-color-copyright.jpg
Customer Acquisition Costs; Churn Rate (Attrition Rate)
Internet Marketing - 26 © Minder Chen, 1996-2014
Online Marketing Objectives
A study conducted by SEMPO (Search Engine Marketing Professional Organization) in 2010 identified the following objectives for online marketing (Econsultancy, 2010):
1.Drive traffic to a Web site.
2.Generate leads.
3.Sell products, services or content directly online.
4.Increase brand awareness /enhance reputation.
5.Improve customer service/customer satisfaction.
Internet Marketing - 27 © Minder Chen, 1996-2014
Search engine optimization (SEO) objectives
0%
5%
10%
15%
20%
25%
30%
35%
40%
Generate leads Drive traffic to web site
Sell products, services or
content directly online
Increase brand awareness /enhance
reputation
Improve customer
service/customer satisfaction
34%32%
26%
6%
2%
18%
36%
15%
28%
3%
Most Important
Second most important
Internet Marketing - 28 © Minder Chen, 1996-2014
Search Engine Marketing Objectives
• (SEM, a special case of Online Advertising)
0%
5%
10%
15%
20%
25%
30%
35%
40%
Sell products, services or
content directly online
Generate lead Drive traffic to web site
Increase brand awareness /enhance
reputation
Improve customer
service/customer satisfaction
39%37%
17%
5%
2%
11%
21%
39%
25%
5%
Most Important
Second most important
Internet Marketing - 29 © Minder Chen, 1996-2014
Social Media Marketing (SMM) Objectives
0%
10%
20%
30%
40%
50%
60%
Increase brand awareness /enhance
reputation
Drive traffic to web site
Generate leads Sell products, services or
content directly online
Improve customer
service/customer satisfaction
51%
17% 16%
8% 8%
25%
29%
15%
10%
21%
Most Important
Second most important
Internet Marketing - 30 © Minder Chen, 1996-2014
Increasing influence of SM
M
Drive traffic to web site
Generate lead
Sell products, services or content directly online
Increase brand awareness /enhance reputation
Improve customer service/ customer satisfaction
SEO
SEM (OnlineAdvertising)
Mapping of Internet Marketing Strategies to the Marketing Funnel
Adapted from Forrester Research Inc. and SEMPO State of Search Engine Marketing Report 2010
Internet Marketing - 31 © Minder Chen, 1996-2014
SEO1.Improve organic search result2.Site contents: Determine keywords to use, keywords density & placement3.Site structures & meta tags4.Inbound links
Online Advertising
1.Bid for sponsored links2.Pay for contextual ads (e.g., Ad Sense)3.Affiliate marketing (Amazon)4.Which keywords to buy?5.Bidding strategy
SMM1.Build brands and customer loyalty2.Monitor and use social networking sites3.Use social bookmarking to increase web site page ranks4.Build quality backlinks to improve SERP positions
Traffic & Keywords
• Research keywords• Match customer intentions
in the marketing funnel
An Integrated Framework for Internet Marketing
Internet Marketing - 32 © Minder Chen, 1996-2014
Internet Marketing - 33 © Minder Chen, 1996-2014(video)
Internet Marketing - 34 © Minder Chen, 1996-2014
Internet Marketing
