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7/24/2019 Comparitive Study between digital and trditional marketing
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Comparative Study Between Various Tools Of Digital Marketing
I. Introduction & research methodology
1.1 GENERAL INTRODUCTION OF PROJECT
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.
Nowadays there is a new communication channel, Internet, added to these
traditional channels, which have brought lots of opportunities for marketers. Internet has
affected marketing process by providing opportunities that were not available by using
traditional marketing tools.
ll 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.
!nowing the differences advantages and disadvantages between traditional and
Internet marketing, a marketer can be more capable to make the right decision whenchoosing the marketing strategy.
"ome interesting #uestions related to Internet marketing and traditional marketing
are$
%hat is the most beneficial marketing approach comparing traditional and Internet
marketing& %hich 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 themarket.
There also might be some indistinctness about different marketing tools and their
benefits or drawbacks for others interested in the sub)ect, such as students studying
marketing.
1.2 OBJECTIVES OF STUDY
*. To understand the various aspects of online marketing.+. To study the effectiveness of social media marketing as compared to other
tools of digital marketing.. To know the reason behind the sudden boost in the field of -nline
arketing / Traditional v0s Digital arketing.
1.3 SCOPE OF STUDY
The aim of this study is to compare traditional marketing and Internet arketing
and show the differences of characteristics between them. nd to find out what marketing
tools are effective for a new business or entrepreneurs.
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Comparative Study Between Various Tools Of Digital Marketing
1.4 RESEARCH METHODOLOGY
1.4.1 Forma!o" O# Pro$%&m
arketing is an important strategy for businesses and it contains numerous
effective tools. Traditional marketing has been in use for many years and
nowadays Internet has brought new ways of doing business for companies and that
has affected marketing.
%hat are the main differences between Internet marketing and traditionalmarketing& %hich one of the two approaches contains the most used and effective
marketing tools according.
1.4.2 Co%%&'!o" O# Daa
1esearch data collected was mainly secondary data. "econdary data was
collected from newspaper articles, books, )ournals, periodicals and websites.
The information gathered in this study was obtained through #ualitative
research from te2tbooks, websites, articles and interviews.
1.4.3 R&(&ar') L!m!a!o"
The study faces the limitation in respect to time as the research is carried
for four months
The #uestions are generalized which might not be true or relating to the
respondent.
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DIGITAL
MARKET
ING
TRADITION
AL V/S
ONLINE
SMM
&
SE
!ST
E""E!TI#
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DRA$%A
!KS
E""E!TI#ENESS IN
SMALL R NE$
%SINESS
!RTMER
A''RA!( &
RES'NSI#ENESS
MEASREM
ENT &
"EED%A!K
REA!(ING
T(E
MASSES
Comparative Study Between Various Tools Of Digital Marketing
1.* MIND MAPPING
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#)S"OS # CO$S
%& %$T"%!"%$%'"S (!!"O(C)
OST # %**%CT+V%$%SS
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( N E*
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Comparative Study Between Various Tools Of Digital Marketing
.
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Comparative Study Between Various Tools Of Digital Marketing
II. !om,any ,ro-le
GOLDROC+ INTERNATIONALS PVT. LTD.
A$o,-
They provide a wide range of services in terms of guiding and educating our customers in
different fields such as 3inance, arketing, 1eal 4state, 4ducation and Training, 4vent
anagement, 5usiness 4valuation as well as Insurance 4valuation.
'6ou have a doubt& sk us.(
Their e2cellent research team goes through each and every aspect of a given situation in
order to e2plore 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 e2perience.
They have e2perts 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.
-ur primary initiative is to educate the common man about the know / how of financial
markets, e#uity, stocks etc. so that their hard earned money is not lost due to mere
ignorance of knowledge of the financial market. 7ence, 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.
H!(or-
It all started in the year +889, the same year in which the stock market crashed and
recession took place. bunch of students from "t. ndrew:s ;ollege, umbai were
en)oying their meal in the college canteen and casually discussing about the stock
market< what went wrong& 7ow it could have been avoided& 7ow people lost their
money due to poor decision making& 4tc.
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 #uite intrigued by the idea and showed a lot of interest and each oneof us supported with more ideas. ll students met a number of times but couldn=t
formulate a proper business plan and could not proceed due to capital investment. any
people wanted to )oin the team but couldn=t stay till the end.
7owever, 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 > years, the plan was ready with
some investments to the business. 5ut, they still couldn:t afford a physical office. "o we
started off the business online with our initial website named goldrockfinancials.com
-n *st ?une, +8*> the office was inaugurated and our )ourney began from there....
V!(!o"-
@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,@
Pro/,'(-
3inance
• 4#uity
• utual 3und
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Comparative Study Between Various Tools Of Digital Marketing
• "IA
• Debt
• ;ommodities
• 3ore2
arketing
• Digital marketing
• -utdoor arketing
• 4ducation
• Training
• "eminars
•Trading Buide
• Terminologies
2.1 T)& I"&r0!&-
The founder C director of Boldrock Internationals was asked to e2press his view on
online marketing.
7ow effective is it in terms of a new business with less capital& Does it provide the
desired results&
7ere are his views on the same<
“Online Marketing or Internet marketing is a very important
tool to o marketing! T"e #ost involve in online marketing is
#ost e$e#tive an rea#"es many people in i$erent so#ial
net%orking sites an sear#" engines! Toay o&r #ompany "asinveste only in igital marketing an %e'site more t"an its
interior esigning! It(s not a'o&t "o% m&#" %e spen on
avertisement) it(s all a'o&t "o% %e manage o&r
avertisements 'ase on t"e vie%er(s presen#e online every
ay! T"e re#ognition an 'ran a%areness is easily #reate
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Comparative Study Between Various Tools Of Digital Marketing
t"ro&g" online marketing %"i#" #an 'e #reate in very s"ort
time #ompare to o&toor avertisement! T"e rea#" o* o&r
#ompany to millions o* people in +&st one #li#k is t"e 'est part
o* online marketing! T"e transparen#y o* online marketing
"elps in &nerstaning t"e total pro&#tivity or o&tp&t
generate t"ro&g" t"e #ampaign!
I* yo& ask me a'o&t online marketing I %ill iversi*y it into On ,
-age Marketing an O$ , -age Marketing! .ot" are e&ally
important0 '&t on page marketing is s&staina'le as it #an(t 'e
#"ange! Ho%ever0 O$ , -age marketing like so#ial meia an
sear#" engine marketing 'e#omes little e1pensive an t"e
pro&#tivity is getting re&#e over a perio o* time! So#ial
meia "elps yo& to p&t somet"ing on yo&r vie%er(s mins t"at
yo&r #ompany still e1ists %it" "elp o* &pates an posts! T"e
'&siness generate o&t o* so#ial meia slo%ly sliing o%n
an #ompanies s"i*ting *rom %e'site 'ase '&siness to
appli#ation 'ase '&siness!
So i* somet"ing else #omes in t"e *&t&re %"i#" is more
pro&#tive0 no entreprene&r %ill re*&se to s%it#"! 2e are more
3e1i'le in trying ne% avertisement an marketing tool to
e1pan o&r '&siness!4
- Mr! Ni1on 5eorge0 6o&ner 7 Diretor 5olro#k International -vt! Lt!
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Comparative Study Between Various Tools Of Digital Marketing
III. INTRD!TIN T Digital mareting
3.1 D&#!"!!o"
Digital marketing is an umbrella term for the targeted, measurable, and
interactive marketing of products or services using digital technologies to reach and
convert leads into customers.
The key ob)ective is to promote brands, build preference and increase salesthrough various digital marketing techni#ues. It is embodied by an e2tensive 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 "4-E, search enginemarketing "4E , 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 e2tends to non<Internet channels that provide digital media, such as mobile
phones "" and "E, callback and on<hold mobile ring tones.
ccording to the Digital arketing Institute, Digital arketing is the use of digital channels to promote or market products and services to consumers and businesses.
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Comparative Study Between Various Tools Of Digital Marketing
3.2 H!(or
The term =digital marketing= was first used in the *998s. In the +888s and the
+8*8s, digital marketing became more sophisticated as an effective way to create a
relationship with the consumer that has depth and relevance.
%hile the term =digital marketing= may not have been used until the *998s, digital
marketing itself has roots to the mid<*9F8s when the "oftd Broup,
now ;hannelNet developed advertising campaigns for several ma)or 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 carsand offering free test drives.
The rapid evolution of digital media has created new opportunities and avenues for
advertising and marketing. 3ueled by the proliferation of devices to access digital media,
this has led to the e2ponential growth of digital advertising.
In +8*+ and +8* statistics showed digital marketing remained a growing field.
Digital media growth is estimated at >.G trillion online ads served annually with
digital media spend at >FH growth in +8*8. n increasing portion of advertising stemsfrom businesses employing -nline 5ehavioral dvertising -5E to tailor advertising for
Internet users.
Though an innovative resource, -5 raises concern with regards to consumer
privacy and data protection. "uch implications are important considerations for
responsible communications. Digital marketing is often referred to as =online marketing=,
=internet marketing= or =web marketing=.
The term =digital marketing= has grown in popularity over time, particularly in
certain countries. In the " =online marketing= is still prevalent, in Italy is referred as
=web marketing= but in the ! and worldwide, =digital marketing= has become the most
common term, especially after the year +8*.
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Comparative Study Between Various Tools Of Digital Marketing
3.3 La&( D&0&%om&"( a"/ Sra&!&(
s digital marketing is dependent on technology which is ever<evolving and fast<
changing, the same features should be e2pected from digital marketing developments and
strategies. This portion is an attempt to #ualify or segregate the notable highlights
e2isting and being used as of press time.
Segmentation$ ore focus has been placed on segmentation within digital
marketing, in order to target specific markets in both business to business and business to
consumer sectors.
I. Influencer Marketing $ Important nodes are identified within related
communities, known as influencers. This is becoming an importantconcept in digital targeting. It is possible to reach influencers via paid
advertising, such as 3acebook dvertising or Boogle dwords
campaigns, or through sophisticated s;1 social customer relationship
managementE software, such as "A ;>;, icrosoft Dynamics, "age
;1 and "alesforce ;1. any universities now focus, at asters
Jevel, on engagement strategies for influencers.
To summarize, Aull digital marketing is characterized by consumers actively
seeking marketing content while Aush digital marketing occurs when marketers send
messages without that content being actively sought by the recipients.
II. Online Behavioural Advertising $ -nline 5ehavioural dvertising refers
to the practice of collecting information about a user:s online activity
over time, 'on a particular device and across different, unrelated
websites, in order to deliver advertisements tailored to that user:s
interests and preferences.
III. Collaborative Environment $ collaborative environment can be set up
between the organization, the technology service provider, and the digitalagencies to optimize effort, resource sharing, reusability and
communications.
n important consideration today while deciding on strategy is that the digital
tools have democratized the promotional landscape.
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Comparative Study Between Various Tools Of Digital Marketing
3.4 D!!a% Mar&!" C)a""&%(
Digital arketing is facilitated by multiple channels, s an advertiser one=s core
ob)ective is to find channels which result in ma2imum two way communication and a
better overall 1-I for the brand. There are multiple online marketing channels available
namelyK
*. ffiliate marketing
+. Display dvertising
. 4mail marketing
>. "earch arketing
G. "ocial edia
L. "ocial Networking
Multi-channel communications
Aush and pull message technologies can be used in con)unction.
3.* S&%#5r&,%a!o"
The I;; ;ode 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 techni#ues and platforms.
;ode self<regulation on use of digital interactive media includes$
• ;lear and transparent mechanisms to enable consumers to choose not to have their
data collected for advertising or marketing purposesK
• ;lear indication that a social network site is commercial and is under the control
or influence of a marketerK
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Comparative Study Between Various Tools Of Digital Marketing
• Jimits 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
offeredK
• 1espect 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 themK
• "pecial attention and protection for children.
1.
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Comparative Study Between Various Tools Of Digital Marketing
I#. All A/out online ) internet mareting
-nline advertising, also called online marketing or Internet advertising is a form
of marketing and advertising which uses the Internet to deliver promotional marketing
messages to consumers. It includes email marketing, search engine marketing "4E,
social media marketing, many types of display advertising including web
banner advertisingE, and mobile advertising.
Jike other advertising media, online advertising fre#uently involves both a
publisher, who integrates advertisements into its online content, and an advertiser, who
provides the advertisements to be displayed on the publisher=s content.
-ther 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.
In +8**, Internet advertising revenues in the nited "tates surpassed those of cable
television and nearly e2ceeded those of broadcast television. In +8*, Internet advertising
revenues in the nited "tates totaled M>+.F billion, a *H increase over the ML.G billion
in revenues in +8*+.
.". internet ad revenue hit a historic high of M+8.* billion for the first half of
+8*, up *FH over the same period in +8*+. -nline advertising is widely used across
virtually all industry sectors.
any common online advertising practices are controversial and increasingly
sub)ect to regulation. -nline ad revenues may not ade#uately replace other publishers=
revenue streams. Declining ad revenue has led some publishers to hide their content
behind pay walls.
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4.1 H!(or
In early days of the Internet, online advertising was mostly prohibited. 3or
e2ample, two of the predecessor networks to the Internet, 1AN4T and N"3Net, had
@acceptable use policies@ that banned network @use for commercial activities by for<profit
institutions@. The N"3Net began phasing out its commercial use ban in *99*.
Ema!%
The first widely publicized e2ample of online advertising was conducted via
electronic mail. -n ay *9F, a marketer from D4; Digital 4#uipment
;orporationE, Bary Thuerk , sent an email to most of the 1AN4T=s merican west
coast users, advertising an open house for a new model of a D4; computer.
Despite the prevailing acceptable use policies, electronic mail marketing rapidly
e2panded and eventually became known as 'spam.(
The first known large<scale non<commercial spam message was sent on *F
?anuary *99> by an ndrews niversity system administrator, by cross<posting a
religious message to all "4N4T newsgroups.
3our months later, Jaurence ;anter and artha "iegel, partners in a law firm,
broadly promoted their legal services in a "4N4T posting titled @Breen ;ard Jottery /
3inal -ne&( ;anter and "iegel=s Breen ;ard "4N4T spam raised the profile of online
advertising, stimulating widespread interest in advertising via both senet and traditional
email. ore recently, spam has evolved into a more industrial operation,wherespammers use armies of virus<infected computers botnetsE to send spam remotely.
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Comparative Study Between Various Tools Of Digital Marketing
D!(%a a/(
-nline banner advertising began in the early *998s as page owners soughtadditional revenue streams to support their content. ;ommercial online
service Arodigy displayed banners at the bottom of the screen to promote "ears products.
The first clickable web ad was sold by Blobal Network Navigator in *99 to a
"ilicon Valley law firm. In *99>, web banner advertising became mainstream
when 7ot%ired, the online component of %ired agazine, sold banner ads to TCT and
other companies.
The first TCT ad on 7ot%ired had a >>H click<through rate, and instead of
directing clickers to TCT=s website, the ad linked to an online tour of seven of the
world=s most acclaimed art museums.
S&ar') a/(
BoTo.com renamed -verture in +88*, and ac#uired by 6ahooO in +88E created
the first search advertising keyword auction in *99F .
Google launched its Ad!ords search advertising "rogram in #$$$and
introduced %ualit&-based ranking allocation in #$$#' (hich sorts search
advertisements b& a combination of bid "rice and searchers) likeliness to click on the
ads.
R&'&" r&"/(
ore recently, companies have sought to merge their advertising messages into
editorial content or valuable services.
42amples include 1ed 5ull=s 1ed 5ull edia 7ouse streaming 3eli2
5aumgartner =s )ump from space online, ;oca<;ola=s online magazines, and Nike=s free
applications for performance tracking.
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Comparative Study Between Various Tools Of Digital Marketing
dvertisers are also embracing social media and mobile advertisingK mobile ad
spending has grown 98H each year from +8*8 to +8*.
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Comparative Study Between Various Tools Of Digital Marketing
4.2 T&( O# O"%!"& Mar&!"
*is"la& advertising+
Display advertising conveys its advertising message visually using te2t, logos,
animations, videos, photographs, or other graphics. Display advertisers
fre#uently target users with particular traits to increase the ads= effect.
-nline advertisers typically through their ad serversE often use cookies, which are
uni#ue identifiers of specific computers, to decide which ads to serve to a particular
consumer. ;ookies 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.
s advertisers collect data across multiple e2ternal 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.
dvertisers can also target their audience by using conte2tual and semanticadvertising to deliver display ads related to the content of the web page where the ads
appear. 1etargeting, behavioral targeting, and conte2tual advertising all are designed to
increase an advertiser=s return on investment, or 1-I, over untargeted ads.
dvertisers may also deliver ads based on a user=s suspected geography
through geotargeting. user=s IA address communicates some geographic information at
minimum, the user=s country or general regionE.
The geographic information from an IA can be supplemented and refined withother pro2ies or information to narrow the range of possible locations. 3or e2ample, with
mobile devices, advertisers can sometimes use a phone=s BA" receiver or the location of
nearby mobile towers. ;ookies and other persistent data on a user=s machine may provide
help narrowing a user=s location further.
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Comparative Study Between Various Tools Of Digital Marketing
!eb banner advertising
%eb banners or banner ads typically are graphical ads displayed within a web
page. any banner ads are delivered by a central ad server .
5anner ads can use rich media to incorporate video, audio, animations, buttons,
forms, or other interactive elements using ?ava applets, 7TJG, dobe 3lash, and other
programs.
,rame ad traditional banner
3rame ads were the first form of web banners. The collo#uial usage of @banner
ads@ often refers to traditional frame ads. %ebsite publishers incorporate frame ads by
setting aside a particular space on the web page. The Interactive dvertising 5ureau=s d
nit Buidelines proposes standardized pi2el dimensions for ad units.
/o"-u"s0"o"-unders
pop<up ad is displayed in a new web browser window that opens above a
website visitor=s initial browser window. pop<under ad opens a new browser windowunder a website visitor=s initial browser window.
,loating ad
floating ad, or overlay ad, is a type of rich media advertisement that appears
superimposed over the re#uested website=s content. 3loating ads may disappear or
become less obtrusive after a preset time period.
E1"anding ad
n e2panding ad is a rich media frame ad that changes dimensions upon a
predefined condition, such as a preset amount of time a visitor spends on a webpage, the
user=s click on the ad, or the user=s mouse movement over the ad. 42panding ads allow
advertisers to fit more information into a restricted ad space.
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2rick banners
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.
3e(s ,eed Ads
@News 3eed ds@, also called @"ponsored "tories@, @5oosted Aosts@, typically
e2ist on "ocial edia Alatforms that offer a steady stream of information updates @news
feed@E in regulated formats i.e. in similar sized small bo2es with a uniform styleE. 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.
"ome e2amples are$ 3acebook=s @"ponsored "tories@, JinkedIn=s @"ponsoredpdates@, and Twitter=s @Aromoted Tweets@.
This display ads format falls into its own category because unlike banner ads
which are #uite distinguishable, News 3eed ds= format blends well into non<paid news
updates. This format of online advertisement yields much higher click<through rates than
traditional display ads.
Interstitial
n interstitial ad displays before a user can access re#uested content, sometimes
while the user is waiting for the content to load. Interstitial ads are a form of interruption
marketing.
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2e1t ads
te2t ad displays te2t<based hyperlinks. Te2t<based ads may display separately
from a web page=s primary content, or they can be embedded by hyperlinking individual
words or phrases to advertiser=s websites.
Te2t ads may also be delivered through email marketing or te2t message
marketing. Te2t<based ads often render faster than graphical ads and can be harder for ad<
blocking software to block.
Search engine marketing SEM
"earch engine marketing, or "4, is designed to increase a website=s visibility
in search engine results pages "41AsE. "earch engines provide sponsored results and
organic non<sponsoredE results based on a web searcher=s #uery.
"earch engines often employ visual cues to differentiate sponsored results from
organic results. "earch engine marketing includes all of an advertiser=s actions to make a
website=s listing more prominent for topical keywords.
Search engine o"timi4ation SEO
"earch engine optimization, or "4-, attempts to improve a website=s organic
search rankings in "41As by increasing the website content=s relevance to search terms.
"earch engines regularly update their algorithms to penalize poor #uality sites that try to
game their rankings, making optimization a moving target for advertisers. any vendors
offer "4- services.
S"onsored search
"ponsored search also called sponsored links, search ads, or paid searchE allows
advertisers to be included in the sponsored results of a search for selected keywords.
"earch ads are often sold via real<time auctions, where advertisers bid on keywords.
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In addition to setting a ma2imum price per keyword, bids may include time,
language, geographical, and other constraints. "earch engines originally sold listings in
order of highest bids. odern search engines rank sponsored listings based on a
combination of bid price, e2pected click<through rate, keyword relevancy and site#uality.
Social media marketing
"ocial media marketing is commercial promotion conducted through social
media websites. any companies promote their products by posting fre#uent updates and
providing special offers through their social media profiles.
Mobile advertising
obile advertising is ad copy delivered through wireless mobile devices such
as smartphones, feature phones, or tablet computers.
obile advertising may take the form of static or rich media display ads, ""
"hort essage "erviceE or " ultimedia essaging "erviceE ads, mobile search
ads, advertising within mobile websites, or ads within mobile applications or games such
as interstitial ads, 'advergaming,( or application sponsorshipE.
Industry groups such as the obile arketing ssociation have attempted tostandardize mobile ad unit specifications, similar to the I5=s efforts for general online
advertising.
obile 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 #uicklyE, screen resolutions have advanced,
mobile publishers are becoming more sophisticated about incorporating ads, and
consumers are using mobile devices more e2tensively.
The Interactive dvertising 5ureau predicts continued growth in mobile
advertising with the adoption of location<based targeting and other technological features
not available or relevant on personal computers.
In ?uly +8*> 3acebook reported advertising revenue for the ?une +8*> #uarter of
M+.LF billion, an increase of L percent over the second #uarter of +8*. -f that, mobile
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advertising revenue accounted for around L+ percent, an increase of >* percent on the
previous year.
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Email advertising
4mail advertising is ad copy comprising an entire email or a portion of an email
message. 4mail marketing may be unsolicited, in which case the sender may give the
recipient an option to opt out of future emails, or it may be sent with the recipient=s prior
consent opt<inE.
Chat advertising
s opposed to static messaging, chat advertising refers to real time messages
dropped to users on certain sites.
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.
Online classified advertising
-nline classified advertising is advertising posted online in a categorical listing of specific products or services. 42amples include online )ob boards, online real estate
listings, automotive listings, online yellow pages, and online auction<based
listings. ;raigslist and e5ay are two prominent providers of online classified listings.
Ad(are
dware is software that, once installed, automatically displays advertisements on a
user=s computer. The ads may appear in the software itself, integrated into web pages
visited by the user, or in pop<ups0pop<unders. dware installed without the user=s permission is a type of malware.
Affiliate marketing
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ffiliate marketing sometimes called lead generationE occurs when advertisers
organize third parties to generate potential customers for them. Third<party affiliates
receive payment based on sales generated through their promotion.
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ffiliate marketers generate traffic to offers from affiliate networks, and when the
desired action is taken by the visitor, the affiliate earns a commission. These desiredactions can be an email submission, a phone call, filling out an online form, or an online
order being completed.
Content Marketing
;ontent marketing is any marketing that involves the creation and sharing of
media and publishing content in order to ac#uire 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.
;onsidering that most marketing involves some form of published media, it is
almost though not entirelyE redundant to call =content marketing= anything other than
simply =marketing=. There are, of course, other forms of marketing in<person marketing,
telephone<based marketing, word of mouth marketing, etc.E where the label is more
useful for identifying the type of marketing. 7owever, even these are usually merely
presenting content that they are marketing as information in a way that is different from
traditional print, radio, TV, film, email, or web media.
Online marketing "latform
-nline marketing platform -AE is an integrated web<based platform that
combines the benefits of a business directory, local search engine, search engine
optimisation "4-E tool, customer relationship management ;1E package and content
management system ;"E. 4bay and mazon are used as online marketing
and logistics management platforms.
-n 3acebook , Twitter , 6ouTube, Ainterest, JinkedIn, and other "ocialedia, retail online marketing is also used. -nline business marketing platforms such
as arketo, primo, arket5right and Aardot have been bought by ma)or IT
companies 4lo#ua<-racle, Neolane<dobe and nica<I5E.
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4.3 Com&"(a!o" M&)o/(
dvertisers and publishers use a wide range of payment calculation methods. In
+8*+, advertisers calculated +H of online advertising transactions on a cost<per<
impression basis, LLH on customer performance e.g. cost per click or cost per
ac#uisitionE, and +H on hybrids of impression and performance methods.
C/M cost "er mile ]
;ost per mile, often abbreviated to ;A, means that advertisers pay for every
thousand displays of their message to potential customers mille is the Jatin word for
thousandE. In the online conte2t, 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 e2posure to an actual customer. dvertisers can use
technologies such as web bugs to verify if an impression are actually delivered.
Aublishers use a variety of techni#ues to increase page views, such as dividing
content across multiple pages, repurposing someone else=s content, using sensational
titles, or publishing tabloid or se2ual content.
;A advertising is susceptible to @impression fraud,( and advertisers who want
visitors to their sites may not find per<impression payments a good pro2y for the results
they desire.
C/C cost "er click
;A; ;ost Aer ;lickE or AA; Aay per click E means advertisers pay each time a
user clicks on the ad. ;A; advertising works well when advertisers want visitors to their sites, but it=s a less accurate measurement for advertisers looking to build brand
awareness. ;A;=s market share has grown each year since its introduction, eclipsing
;A to dominate two<thirds of all online advertising compensation methods.
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Jike impressions, not all recorded clicks are valuable to advertisers. Bold"pot
edia reported that up to G8H of clicks on static mobile banner ads are accidental and
resulted in redirected visitors leaving the new site immediately.
C/E cost "er engagement
;ost per engagement aims to track not )ust that an ad unit loaded on the page i.e.,
an impression was servedE, but also that the viewer actually saw and0or interacted with
the ad.
C/5 cost "er vie(
;ost per view video advertising. 5oth Boogle and Tubeogul endorsed this
standardized ;AV metric to the I5=s Interactive dvertising 5ureauE Digital Video
;ommittee, and it=s garnering a notable amount of industry support.
Other /erformance-Based Com"ensation
;A ;ost Aer ction or ;ost Aer c#uisitionE or AAA Aay Aer AerformanceE
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. Aerformance< based compensation can also incorporate revenue sharing, where publishers earn a
percentage of the advertiser=s profits made as a result of the ad. Aerformance<based
compensation shifts the risk of failed advertising onto publishers.
,i1ed cost
3i2ed cost compensation means advertisers pay a fi2ed cost for delivery of ads online,
usually over a specified time period, irrespective of the ad=s visibility or users= response to
it. -ne e2amples is ;AD cost per dayE where advertisers pay a fi2ed cost for publishingan ad for a day irrespective of impressions served or clicks.
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4.4 B&"&#!( o# o"%!"& a/0&r!(!"
Cost
The low costs of electronic communication reduce the cost of displaying online
advertisements compared to offline ads. -nline advertising, and in particular social
media, provides a low<cost means for advertisers to engage with large established
communities. dvertising online offers better returns than in other media.
Measurabilit&
-nline 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.
,ormatting
dvertisers have a wide variety of ways of presenting their promotional messages,including the ability to convey images, video, audio, and links. nlike many offline ads,
online ads also can be interactive. 3or e2ample, some ads let users input #ueries or let
users follow the advertiser on social media. -nline ads can even incorporate games.
2argeting
Aublishers can offer advertisers the ability to reach customizable and narrow
market segments for targeted advertising. -nline advertising may use geo<targeting to
display relevant advertisements to the user=s geography. dvertisers can customize eachindividual ad to a particular user based on the user=s previous preferences. dvertisers can
also track whether a visitor has already seen a particular ad in order to reduce unwanted
repetitious e2posures and provide ade#uate time gaps between e2posures.
Coverage
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-nline advertising can reach nearly every global market, and online advertising
influences offline sales.
S"eed
-nce 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.
3urthermore, online advertisers can modify or replace ad copy more rapidly than their
offline counterparts.
4.* Co"'&r"(
Banner blindness
4ye<tracking studies have shown that Internet users often ignore web page zones
likely to contain display ads sometimes called @ banner blindness@E, and this problem is
worse online than in offline media. -n the other hand, studies suggest that even those ads
@ignored@ by the users may influence the user subconsciously.
,raud on the advertiser
There are numerous ways that advertisers can be overcharged for their advertising.
3or e2ample, click fraud occurs when a publisher or third parties click manually or
through automated meansE on a ;A; ad with no legitimate buying intent. 3or e2ample,
click fraud can occur when a competitor clicks on ads to deplete its rival=s advertising
budget, or when publishers attempt to manufacture revenue.
;lick fraud is especially associated with pornography sites. In +8**, certainscamming porn websites launched dozens of hidden pages on each visitor=s computer,
forcing the visitor=s computer to click on hundreds of paid links without the visitor=s
knowledge.
s with offline publications, online impression fraud can occur when publishers
overstate the number of ad impressions they have delivered to their advertisers. To
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combat impression fraud, several publishing and advertising industry associations are
developing ways to count online impressions credibly.
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2echnological variations
Heterogeneous clients
5ecause users have different operating systems, web browsers and computer
hardware including mobile devices and different screen sizesE, online ads may appear to
users differently from how the advertiser intended, or the ads may not display properly at
all. +8*+ com"core study revealed that, on average, *H of ads were not @in<view@
when rendered, meaning they never had an opportunity to be seen. 1ich media ads create
even greater compatibility problems, as some developers may use competing and
e2clusiveE software to render the ads see e.g. ;omparison of 7TJ G and 3lashE.
3urthermore, advertisers may encounter legal problems if legally re#uired
information doesn=t actually display to users, even if that failure is due to technological
heterogeneity. In the nited "tates, the 3T; has released a set of guidelines indicating
that it=s the advertisers= responsibility to ensure the ads display any re#uired disclosures or
disclaimers, irrespective of the users= technology.
Ad-blocking
d<blocking, or ad filtering, means the ads do not appear to the user because the
user uses technology to screen out ads. any browsers block unsolicited pop<up ads by
default. -ther 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. 7TJ autoplay of
both audio and videoE. ppro2imately 9H of all online page views come from browsers
with ad<blocking software installed, and some publishers have >8HP of their visitors
using ad<blockers.
Anti-targeting technologies
"ome web browsers offer privacy modes where users can hide information about
themselves from publishers and advertisers. mong other conse#uences, advertisers can=t
use cookies to serve targeted ads to private browsers. ost ma)or 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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/rivac& concerns
The collection of user information by publishers and advertisers has raised
consumer concerns about their privacy. "i2ty percent of Internet users would use Do Not
Track technology to block all collection of information if given an opportunity. -ver half
of all Boogle and 3acebook users are concerned about their privacy when using Boogle
and 3acebook, according to Ballup.
any consumers have reservations about by online behavioral targeting. 5y
tracking users= online activities, advertisers are able to understand consumers #uite well.
dvertisers often use technology, such as web bugs and respawning cookies, toma2imizing their abilities to track consumers. ccording to a +8** survey conducted by
7arris Interactive, over half of Internet users had a negative impression of online
behavioral advertising, and forty percent feared that their personally<identifiable
information had been shared with advertisers without their consent. ;onsumers can be
especially troubled by advertisers targeting them based on sensitive information, such as
financial or health status.
2rust(orthiness of advertisers
"cammers can take advantage of consumers= difficulties verifying an online
persona=s identity, leading to artifices like phishing where scam emails look identical to
those from a well<known brand ownerE and confidence schemes like the Nigerian @>*9@
scam. The Internet ;rime ;omplaint ;enter received +F9,F> complaints in +8*+,
totaling over half a billion dollars in losses, most of which originated with scam ads.
;onsumers also face malware risks, i.e. malvertising, when interacting with online
advertising. ;isco=s +8* nnual "ecurity 1eport revealed that clicking on ads was *F+
times more likely to install a virus on a user=s computer than surfing the Internet for porn. 3or e2ample, in ugust +8*> 6ahoo=s advertising network reportedly saw cases of
infection of a variant of ;ryptolocker ransomware.
S"am
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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
from blacklists to regulatorily<re#uired labeling to content filters, but most of those
efforts have adverse collateral effects, such as mistaken filtering.
/rivac& and data collection
Arivacy regulation can re#uire users= consent before an advertiser can track the
user or communicate with the user. 7owever, affirmative consent @opt in@E can be
difficult and e2pensive to obtain. Industry participants often prefer other regulatory
schemes.
Different )urisdictions have taken different approaches to privacy issues with
advertising. The nited "tates has specific restrictions on online tracking of children in
the ;hildren=s -nline Arivacy Arotection ct;-AAE, and the 3T; has recently
e2panded its interpretation of ;-AA to include re#uiring ad networks to obtain parental
consent before knowingly tracking kids.
In contrast, the 4uropean nion=s @Arivacy and 4lectronic ;ommunications
Directive@ restricts websites= ability to use consumer data much more comprehensively.
The 4 limitations restrict targeting by online advertisersK researchers have estimatedonline advertising effectiveness decreases on average by around LGH in 4urope relative
to the rest of the world.
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#. 0 ,1s o2 mareting on the internet
ad3ertising
The four A=s < Aroduct, Arice, Alace and Aromotion have long been associated with
dvertising, but things have changed on the Internet. "o along with a change in the
nature of the four A:s there are three new A:s which are relevant to the internet advertiser.
1. T)& Pro/,' on the Internet usually changes form online, and the user
e2periences it electronically, in the form of te2t, images and multimedia. Ahysical goodsare 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 e2ample 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.
;ontent and software are two avatars of digitized products that can be even
distributed over the Internet. -n the Internet, 4<dvertising will be based more on the
product #ualities rather than on the price. 4very 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
uni#ueness of the product.
To be able to attract the customers and retain them4 t5e 6ompany will 5ave to
provide nouvelle and distinct products that forces the net users to purchase and come
back for more.
2. T)& Pr!'& has been drastically changed over the Internet. It lets the buyer
decides the price. lso 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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website named Ariceline.com is e2tremely popular as its compares the price of
many airlines and offers the least price to the buyer. The very famous bazee.com now
known as ebay.in follows the same principles. Aricing is dynamic over the Internet.
3. T)& P%a'& revolves around setting up of a dvertising channel to reach the
customer. Internet serves as a direct dvertising channel that allows the producer to reach
the customer directly.
The elimination of the intermediate channel allows the producer to pass the
reduced distribution cost to the customer in the form of discounts. Dell ;omputers have
used this strategy very effectively and hence they have been able to reduce their prices of
their laptops drastically and reaped huge profits.
4. Promo!o" is e2tremely necessary to entice the customer to its website, as there
are currently more than one billion web pages. Aromoting a website includes both online
and offline strategies. -nline strategies include search engine optimization, banner ads,
multiple points of entry, viral dvertising, strategic partnership and affiliate dvertising.
Aresently, the cyberspace is already cluttered with thousands of sites probablyselling similar products. 3or the customers to know of the ;ompany:s e2istence and to
garner information on the kind of products or services that the company is offering,
promotion has to be carried out.
There can be traded links or banner advertisements for the same. lso the
traditional mediums like print, outdoor advertising and television can be used to spread
awareness. 4mail campaigns and spamming the ;hat rooms on almost every server has
been e2ploited to the ma2imum for the cause of promoting their website.
*. Pr&(&"a!o"5 The presentation of the online business needs to have an easy to
use navigation. The look and the feel of the web site should be based on corporate logos
and standards. bout F8H of the people read only +8H of the web page. Therefore, the
web page should not be cluttered with a lot of information.
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lso, 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 !.I."." !eep it
simple stupid E is the most important factor that has to be considered while presenting the
online business
6. Pro'&((&(< ;ustomer supports needs to be integrated into the online web site.
sales service that will be able to answer the #uestions 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. 3or e.g. 3ed42 www.fede2.comE, the
overnight ;ourier ;ompany allows its customers to keep track of the parcel and they arewell informed about the present whereabouts of their package.
"imilar variants have been used by the Bovt of India for its "peed post and
1egistered d services where you can keep a track of your post by entering the code that
has been issued to you.
7. P&r(o"a%!8a!o"< sing the latest software from 5road<Vision and others, it is possible to customize the entire web site for every single user, without any additional
costs.
The mass customization allows the company to create web pages products and
services that suit the re#uirement of the user. 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. 3or e.g. 6ahooO www.yahoo.co.inE entered the Indian
cyberspace and started its personalized services.
registered user of 6ahoo can now personalize the front page with all the
information he needs. 7e can read the news of the world, add a ta2 calculator, see the
weather forecasts of his city and listen to his favorite songs and all this simultaneously.
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#I. Ad3ertising on the Internet4 emerging
issues
Internet might be a catchy advertising medium. 5ut, there are #uite a few issues
that need to be sorted out. dvertising on the Net is slowly catching on. In developed
economies, advertising on the Net accounts for anything between seven and .G per cent
of the total advertising cake. 3ine, how large is online advertising in India& Various
estimates put the size of online advertising in India between 1s +> crore and 1s +9 crore,
which is much less than one per cent of the total advertising cake.
%hy is online advertising so small in India& %hy aren=t the advertisers putting
their money on Net advertising& 3or instance, 7industan Jever:s advertising budget is
upwards of 1s 88 crore and out of thisK the company spends not more than 1s +G lakh
on online advertising. Is this because Net penetration in India is not deeper& 6es, to an
e2tent.
2he cost factor
bsence of a monitoring mechanism apart, online advertising has to live with
another hurdle. any advertisers are not aware of the benefits online advertising can
offer over the traditional media. %hat needs to be done& The advertising industry should
take efforts to educate potential Net advertisers about the advantages of advertising on the
Net. "ome steps have already been taken in this direction.
3or instance, advertising networks such as edia+Net, 1ight serve and edia turf
are doing their bid to fuel online advertising in India. 1ight serve of 7ughes "oftware is
said to be spending nearly 1s 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. nd
that is the perception that advertising on the Net is e2pensive. Is this perception right&
;ompare the cost of a banner advertisement on the Net with a television commercial.
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Though the cost of an advertising campaign on the Net could be anywhere between 1s
*G,888 and 1s *.G lakh, advertising in the press or television will cost upwards of 1s G8
lakh. Does this not make advertising on the Net cheap& No.
3or, whether advertising on the Net is cost<effective or not depends on the value
per advertising 1upee. That means, it is essential to e2press advertising costs on the Net
in terms of cost per thousand ;ATE. @ thirty< second television commercial will cost
between 1s +G8 and 1s 88 per thousand, while a ten<second banner on a reputed site
such as 1ediff.com will cost as much as 1s G88 to 1s *,888 per thousand.@
The implication value per 1upee 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. 3ine, but howare rates fi2ed 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. 3or instance, 1ediff.com
)ust adopted the international rate charged by 6ahoo.com.
-ther websites in India )ust took the 1ediff.com=s rate as a benchmark and
ad)usted th ir rates accordingly. 5ut, the issue here is this$ since the number of Net users
in India is limited now, these Indian rates are not )ustified. %hat are the emerging trends
as far as cost of online advertising is concerned& ;urrently, rates for a simple banner
advertisement on the Net need to come down. lready, edia turf is working in thisdirection.
It wants to bring down the cost of Net advertising at least by G8 per cent. edia
turf believes that when the rates come down, volumes should go up. nd that has been
the international e2perience. In the ", when the rate for a full banner advertisement
fell from " M.++ to " M8.G+ per thousand impressions, online advertising outlays
too rose during the same period.
2he (astage factor
There are other reasons why advertising on the Net is not currently seen by
advertisers as cost<effective. -ne of them is the #uality of desired responses. In many
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cases, sums spent on advertising on the Net have not been deployed properly. There are
instances where advertisements have )ust been lifted and put on the banner. Though there
are many early adapters in India, there is a big gap between these adapters and the
mainstream users. nd 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. "o, advertising agencies need
to take into account these factors while developing strategies.
5ut, wastages can be eliminated and online advertising can be made more
effective through various strategies. "ome of them are$ strategic tieups, sponsorships and
banner e2changes. 3or instance, the 3;B ma)or ;olgate<Aalmolive has entered into astrategic tie<up with the ;alcutta<based 3irstNet "olutions= portal 6antram.com for
promoting its 3resh 4nergy Bel toothpaste on the portal.
nd ;oca<;ola has appointed 7ungama.com, an Indian portal for promotions and
contests, as its e<dvertising partner. ;oca<;ola has gone ahead and launched a new %eb
promotion dubbed aaza Auzzle to promote its popular brand aaza and has also kicked
off a series of e<promotions for the 7indi film @7um To ohabbat !arega@. eanwhile,
tie<ups for banner e2changes are also taking place. 3or instance, 5idorbuy.com has tied
up with Indiacar.com and Intel has sponsored a festival section on "atyam -nline.
2argeting im"eratives
ccurate targeting is another strategy to eliminate wastages in online advertising.
;urrently, such targeting based on parameters such as geographic location and search
keywords is possible. 6es, "atyam -nline is offering customised solutions here and portals such as Indiainfo.com and 1ediff.com offer keyword targeting.
It is possible now to measure campaign performances on a real<time basis and
make necessary changes. d networks such as 1ightserve are offering such services
based on their continuous online reports. oreover, targeted advertisements based on the
profile of users are also possible. To make this possible, it is essential to have lists such as
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registered e<mail users and such lists can offer profiles of users. 5ut the #uestion is how
many sites in India have a large base of registered users& Aerhaps 1ediff.com has a base
of eight lakh registered users and ?obsahead.com has a base of about *.G8 lakh users.
nother way wastages can be eliminated is by having advertisements based on the
content of the site. ;onsider the e2ample of an advertisement from Toyota otor "ales
on the weather site Intellicast.com. This website for outdoor recreation enthusiasts has
been running a campaign for Toyota otor "ales and this campaign depends on the
weather.
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. 7ow many such ads are visible on Indian websites&
Arofiling tools too should help in cutting down wastages in online advertising. ediaturf
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.
-ther waste<eliminating strategies for online advertising are$ conte2tual selling
using demographic and psychographic data to match ads with content that fits and
dynamic customization or click stream analysis that helps to modify advertisements in
real<time.
Online Constraints
s efforts to eliminate wastages in online advertising take offK 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.
5ut, this is not possible in India, thanks to the e2isting bandwidth problems.
7owever, soon bandwidth will cease to be an issue. Despite the bandwidth constraint, the
;oco<;ola television commercial is being aired in Qeene2t.com. This initiative has been
taken by ediaturf and a 5angalore<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.
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nyway, with massive investments coming in bandwidth, there could be a glut
soon. "ure, India has an advantage in online advertising, thanks to the fact that online
advertising depends so much on technology and software programming. "o, the days of
innovative banners and convergence of real<time advertising are not far. 5ut, effective
online advertising calls for skills in consumer and relationship management. The
prospects are of course bright for online advertising. 4<commerce will only help the
spread of online advertising. 4stimates are that in a couple of years online advertising
could touch 1s 88 crore, two per cent of the total adspend in the country. nd Nasscom=s
estimates are that online advertising could touch 1s G8 crore by +88+.
/roduct and service customi4ation
;ompanies 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.comE
on<line or offering personalized services like suburban railway pass ticket in umbai
www.rediff.comE.
;onsumer demand and e2pectations are forecast to drive made<to<order or
customized products with rapidly shrinking lead times. Aroducts are configured, as
customers want them to be and provide a high level of reliability, e2cellent #uality, and
longer life spans. 3or e.g. RDell: computer www.dell.comE has become a leadingcompany in selling computers because of the customization facility it provided on its site.
The consumers could build the own computer by ordering the own configuration.
3or e.g. -n Nike:s site www.nike.comE, 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 re#uirement.
6nderstanding the Internet Customers
Now to be able to use the seven A:s effectively in order to achieve the predefined
goals of any organization it is imperative to understand the customers. ;ustomization will
only be truly effective if we understand our customers and their true needs.
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5efore adapting dvertising practices to the Internet, the advertiser needs to
understand the characteristics of the online customers. The Net users can be classified
into five categories depending upon their intention of using the Internet.
The five categories of users are$
Directed Information "eekers$ They re#uire specific, timely and relevant information
about the products and services being offered.
ndirected Information "eekers$ These users re#uire something interesting and useful.
"omething that can give them an edge, advantage, insight or even a pleasant surprise.
5argain 7unters$ They are of two kind. -ne who look for free items on the internet
and other who are seeking better deals, higher discounts etc.
4ntertainment "eekers$ they see the %eb as an entertainment medium of vast breath
and potential and want to e2plore the medium before the mass gets there.
Directed 5uyers$ They want to buy something < now. They are sure what they re#uire
and )ust log on to the %eb to purchase the item.
2he Evolving 5alue /ro"ositions
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 e2perience<<<right from the promise to satisfy
his need to its delivery.
5ut the physical world offers only 'Aoint "olutions( which is basically a solution
of his needs in terms of functional benefits. credit card, for instance, allows consumers
to satisfy the immediate necessity of setting a transaction. 5ut today:s consumers are also
looking for process and relationship benefit<<<book referrals at no e2tra cost or e<mailreminders.
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
dvertising, for e2ample, where consumers seek out vendors rather than the other way
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around(E by giving the company the ownership and control over all interactions with the
consumer.
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2he Evolving 7isk /rofiles
The on<line customer is not a fickle customer, but he is a risky proposition
nevertheless. This is because all his online e2perience will influence consumer
perceptions about the brand.
If a consumer buys a product from a retailer and is involved in an unhappy
purchase e2perience at the store, he will punish the store. 5ut if the same e2perience were
to occur to him at the company:s web site, the conse#uences would be disastrous for the
company if he were to share his e2perience though different user communities using a
combination of chat rooms and electronic mails.
2he Evolving Su""l& Chain
The transformation being brought about the %eb revolution is not limited to )ust
the consumer. The last few years have seen a flurry of suggested business models for
doing business in the Internet era. %ill the Internet era signal the death of the retailer& -r
will a new intermediary come into e2istence&
Technological innovations have made possible two interesting developments<<<the
;hoice board system + and the Vertical Aortal. 5ecause ;hoice boards are essentially
design tools and conduits of information, companies that produce the products need not
control them. Dell uses a ;hoice board system to sell its computers but there are others
like Aoint.com that uses a ;hoice board to help customers research and buy wireless
phones and accessories.
The market information that a ;hoice board collects about customer preferences is
absolutely enormous and if the manufacturing company does not control it, the siteoffering the ;hoice 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 ne2t emergent intermediaries.
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The sophistication and range of information collected on customer preferences
will drive emergent business models. The %eb will thus facilitate the transformation of
the companies form transaction supporters to customer relationship managers.
6.1 Cr!!'a% S,''&(( #a'or( !" E5A/0&r!(!"
7aving observed the evolving paradigms of business in the Internet era, there are
five critical success factors that the 4<dvertiser has to keep in mind.
ttracting the 1ight ;ustomer is the first crucial step. 1ising digital penetration
would mean that the number of customer visiting particular sites would inevitably
go up. %hile the number of eyeballs or page views has so far been convenientlyused as a satisfactory measure by most web sites, it would be foolish to cater to the
whole spectrum of digital visitors. ;ontent 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 ma2imum number of referrals. 7ere again it is
important to note that the ma)ority of online customers are not seeking the lowest
price. 1ather 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. 4<5ay attracts more than half of its customersthrough referrals. Not only do referred customers cost less to ac#uire than those
brought in by advertising or other dvertising 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 ;ontent Value to engage the user:s interest is the critical importance in
retaining customer participation. This is because content serves as a powerful
differentiator. ;ontent would include Aroduct enhancements "oftware patches for
glitchesE, personalized interactions through customized navigation paths as seen
on the web sites of B and ToyotaE and Aroblem 1esolution updates of deliveryschedules and e<mail responsesE. Integral to the concept of delivering proper
content value is innovation. The retail financial services industry, for e2ample, is
changing rapidly with multiple players )ockeying for position. Aroduct innovation
serves as a key tool to attract new customers. Ariceline.com, for e2ample, has
revolutionized the travel and related services business by letting in a form of
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'buyer driven commerce(<<<< ;ustomers specify their desired prices and
competing companies then bid for customer re#uirements. Delivering proper
content to make e2isting customers in the traditional 'brick( business switch to
%eb<enabled transactions makes a lot of sense because in every conceivable case,
the cost of %eb<5ased transactions is an order of magnitude less than the
traditional ways and is decreasing at a faster rate. The cost of an Internet based
banking transaction is less than one<tenth the cost of a human teller transaction. It
is keeping this aspect in mind that Indian 5anks have started toying with the idea
of setting up Internet kiosks to let their low<value customers settle their banking
transactions at the kiosk nearest to their place.
4nsuring 4<Joyalty is vital to the success of any online venture. This is because
ac#uiring customers on the Internet is enormously e2pensive and unless those
customers stick round and make lots of repeat purchases over the years, profitswill remain elusive. ;ontrary to the general view that %eb customers are
notoriously fickle, they in fact follow the old rules of customer loyalty. %eb
customers stick to sites that they trust and with time consolidate their purchases
with one primary supplier to the e2tent that purchasing from the supplier:s site
becomes part of their daily routine. The issue of trust is integral to the issues of
privacy and security. ;ompanies like mazon.com, which command amazing
levels of consumer trust, have used a variety of encryption tools ad simple ethical
decisions like not accepting money for publishers for independent book reviews to
maintain the trust of its customers. 4<Jearning to facilitate personalized interactions with customers has been the
biggest contribution of the %eb to the dvertising strategists. ;ustomers in
traditional bricks<and<mortar stores leave no record of their behavior unless they
buy somethingSand even then the date might be sketchy. In the digital
marketplace, however technology has made the entire shopping e2perience a
transparent process. 3or e2ample, if the customer e2its the web<site when the price
screen appears, he is a price sensitive consumer. "uch minute tracking of customer
behavior has ma)or implications for the world of advertising. The Internet may
soon be used as a test bed for testing prototypes of dvertising and advertisingcampaigns. 5y monitoring pages selected, click throughs, responses generated,
and other indicators, the company would be able to discover which parts of a
prospective campaign would work, thus reducing the risk of a potential flop. This
would make it possible for the company to modify its product offerings much
earlier than usual in the product life cycle.
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Aroviding 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 #uo and created
new rules of business. The sectors where new business models will emerge or haveemerged 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 %eb e2perience, and giving the customer a sense of belonging
that traverses the physical boundaries.
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#II. !hanging ,atterns o2 Ad3ertising
7.1 Tra/!!o"a% A/0&r!(!" V9( I"&r"& A/0&r!(!"
dvertising over the years more so recently has started being used interchangeably with
advertising. Now since the e2plosion of the internetK advertising paradigms have been
constantly changing. The first %eb advertisement was placed on the 7ot %ired web site
in -ctober *99>. TCT, ;I, "print, Volvo, ;lub ed, QI were the first to try it out
and the Internet advertising has come a long way since then. 7ere, I would attempt to
compare Internet dvertising with Traditional dvertising$
Jet:s have a look$
• Traditional dvertising$
• Traditional advertising is static.
• "pace is not a restricting factor
• The proportion of advertising to editorial is high sometimes G8$G8.
• Does not evoke immediate action.
• 1esponse to the action is not immediate.• dvertisements are passively received.
• dvertising does not always target a much focused audience.
• dvertisements are ubi#uitous.
%hereas Internet dvertising $
• It is dynamic with multimedia< supporting te2t and graphics video sound all
together.
• "pace is a problem, as regards size of the banners etc.
• web page would be 9*H editorial and 9H advertising.• Invokes immediate action as you at<least need to click on the ad.
• *irst response is immediate as w5en t5e user 6li6ks4 t5e person is
dire6ted to ot5er we7 page wit5 more details8
• T5e user 5as 5ig5 attention level and 6on6entration w5ile using t5e
net4 and 5en6e t5ey noti6e t5e ad8 9please refer t5e 65apter:
• This can be much focused.
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dvertisements catch users when they are on the lookout for something. 3or
e2ample 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. "o 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. ;ompanies should be careful as
regards )oining the IT bandwagon. They should not advertise on the net )ust to pro)ect
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 monthsE. 7ence 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. -ne 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. Benerally, people perceive the ads to be time consuming and full of unwanted
information. ;are 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 ade#uate and specific
information.
*. The ads and the subse#uent information on the web site should be constantly updated
and highlighted in the ads and thus induce repeated clicks on the ad.
L. Jast but not the leastK the ads should be designed so as to attract attention of ma2imum
number of people and inducing them to click, failing to do so the advertiser ends up
defeating his own purpose.
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7.2 T)& C)a""&% Sra&!&( #or /&%!0&r!" D!!a% Va%,& o
',(om&r(
The Internet era has shown that companies have risked damaging relationships in their
physical chain to compete in the electronic channel. The ubi#uity 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.
%hen companies pirate the value chain of the industry they are essentially eliminating
layers of costs that are build into the current distribution system. 7owever, pirating the
value chain does not mean that the number of intermediaries in the whole process would
necessarily decrease.
The emerging economic structure of 4lectronic ;ommerce would mean that profits
would lie in the intermediate transactions rather than in the final sale of the good.
;ompanies would aim at cutting down their traditional margins give up the cost plus
pricing structureE and aim at high inventory turnover. In retailing profitability is
primarily.
..
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2he challenge (ill lie in managing these multi"le channels of e1"erience
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 e2perience is not much
different across channels.
;an an Internet bookseller allow its customers to e2perience 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 %eb site. ;omplementary 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 e2ecuted
Building Brands Online
-nline has always taken a back seat to offline in brand building. 6et online offers
the best options for building a meaningful brand, options that didn=t e2ist only a few years
ago. ;ompanies without a solid digital brand strategy are literally being left behind as
leaders build new digital brands. 1eflecting on the current state of online advertising, the
ma)ority of online advertisers are doing a terrible )ob of building their digital brands.
dvertisers are fighting tooth and nail to produce the world=s worst advertising,
actually destroying their e2isting offline brands in the digital realm. 3or the most part, if one looks at ads that run during top TV programs or that appear in top magazines, one
will find #uality in the advertising even if the ads are a bit dry and boringE.
5ut if one looks at a top web site and views a few dozen ads, it will be very
difficult to find #uality 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 en)oying e2plosive visitor growth.
The reason may have less to do with the established brands themselves than with
their managers. dvertisers 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 @ As@ are also essential on the %orld %ide %eb. In addition, digital brand
builders must manage the consumer:s on<line e2perience of the product, from first
encounter through purchase to delivery and beyond.
Digital brand builders should care about the consumer:s on<line e2periences for
the simple reason that all of themSgood, bad, or indifferentSinfluence consumer
perceptions of a product:s brand. To put it differently, on the %eb, the e2perience is the
brand. ;onsider an e2ample. If a consumer buys lipstick from a retailer in the physicalworld and has an unpleasant in<store e2perience, she is more likely to blame the retailer
than the manufacturer.
5ut if the consumer purchases that same product from Arocter C Bamble:s
1eflect.com %eb site, her wrath is more likely to be directed at ACB. Thus the on<line
advertiser:s ob)ective shifts from creating brandsSat least as defined in the off<line world
Sto creating Internet businesses that can deliver complete, and completely satisfying,
e2periences.
6et many advertisers, particularly those whose e2perience is limited to the off<line
world, lack a coherent framework and concrete methods for achieving the broader
ob)ectives of on<line brand building. These advertisers need an approach for aligning the
promises they make to consumers, the %eb design necessary to deliver those promises
on<line, and the economic model re#uired to turn a profit.
These three elementsSthe promise, the design, and the economic modelS
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 en)oying
e2plosive visitor growth The reason may have less to do with the established brands
themselves than with their managers.
dvertisers 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 @ As@ are also ;onsumers Turning to Digital 5rands essential on the
%orld %ide %eb. In addition, digital brand builders must manage the consumer:s on<line
e2perience of the product, from first encounter through purchase to delivery and beyond.
Digital brand builders should care about the consumer:s on<line e2periences for
the simple reason that all of themSgood, bad, or indifferentSinfluence consumer
perceptions of a product:s brand. To put it differently, on the %eb, the e2perience is the
brand. ;onsider an e2ample. If a consumer buys lipstick from a retailer in the physical
world and has an unpleasant in<store e2perience, she is more likely to blame the retailer
than the manufacturer.
5ut if the consumer purchases that same product from Arocter C Bamble:s
1eflect.com %eb site, her wrath is more likely to be directed at ACB. Thus the on<line
advertiser:s ob)ective shifts from creating brandsSat least as defined in the off<line world Sto creating Internet businesses that can deliver complete, and completely satisfying,
e2periences. 6et many advertisers, particularly those whose e2perience is limited to the
off<line world, lack a coherent framework and concrete methods for achieving the
broader ob)ectives of on<line brand building. These advertisers need an approach for
aligning the promises they make to consumers, the %eb design necessary to deliver those
promises on<line, and the economic model re#uired to turn a profit. These three elements
Sthe promise, the design, and the economic modelStogether form the inseparable
components of a successful Internet business, or what might be called a digital brand.
Building 2rust
5ringing the si2 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 e2change value. 4ach 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 advancedcollaboration based on trust. The research has identified four stages of trust building$
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Attraction
t the first stage, the consumer browses the site and even makes a transaction. No
real relationship e2ists 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.
t first blush, this may seem like an imbalance between what advertisers give and
what they get back. 5ut what the consumer is giving the advertiser is something #uite
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 1alston Aurina:s Dog ;how %eb site, which offers no
product for sale, spends more than si2 minutes per session learning how to care for pets.
That:s far more timeSand concentrationSthan consumers devote to a 8<second TV ad.
6ser-*riven /ersonali4ation
t the second stage, consumers start shaping %eb pages to their specific tastes.3or e2ample, ;Dnow 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.
;harles "chwab now invites users to set up a personal page through the
y"chwab service, where users can not only track stocks but also get customized sports
news, weather information, and even cartoons. sers aren:t re#uired to open a "chwab
account to do so.
Advertiser-*riven /ersonali4ation
In the third stage, advertisers begin using insights provided by consumers to beam
information back to them. Thus, ;Dnow uses its knowledge of consumersSdeveloped at
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the earlier stages of trustSto suggest products they might like which consumers then rate
as either on< or off<target.
s the process continues, ;Dnow learns consumers: preferences and zeroes in on
what they really like. It is worth emphasizing that advertisers should rein in their urge to
make immediate use of data and personalization technologies. This approach takes
patience, a trait lacking at many dvertising organizations.
Too often they bombard consumers with promotional offers as soon as they get
their hands on an e<mail address. %e suggest a gradual approach, as nothing aggravates
many Internet users more than unsolicited e<mail. best practice is to let the user set the
pace of personalization and contact from advertisers.
ser<driven personalization should precede advertiser<driven offers. 1ecentresearch by Arofessor 6oungme oon of the 7arvard 5usiness "chool has shown that
premature personalization can backfire. oon found that consumers were less likely to
buy products pitched to them through messages if the messages were based on
information they had not given to the advertiser themselves. ccording to @Is 6our %eb
"ite "ocially "avvy&@ a ay/?une *999 7arvard 5usiness 1eview article, consumers
were more likely to buy when the message was personalized and based on information
they had volunteered.
2rust-Based Collaboration
t 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 healthE and in turn gains customized e2periences 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. -nly by sustaining trust can
advertisers e2pect to establish enduring relationships with consumers, and it is by
keeping a central focus on that idea that advertisers build a value e2change that delivers
consistent and progressive mutual benefits. %ith the si2 building blocks of trust in place,
advertisers should be able to chart a course for building great on<line businesses.
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#ARIS AS'E!TS " NLINE MARKETING
Comparative Study Between Various Tools Of Digital Marketing
#III. DATA ANAL5SIS AND "INDINGS
5arious As"ects Of Online Marketing
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EFFECTIVENESS OF VARIOUS ONLINE MAR+ETING
TOOLS
The above graphical representation shows us the effectiveness of various online
marketing tools such as sending newsletters, SEO, PPC, anner ads etc. Out of these
SEO, paid advertisements and presence on social networking sites are the most effective
while sending newsletters, e!coupons, and other marketing tools are the least effective
ones.
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Comparative Study Between Various Tools Of Digital Marketing
The above graphical representation shows the effectiveness of "obile
#dvertising, T$ and %esktop %ispla&
elow is the graphical representation of the efforts re'uired in e(ecution of
the various online marketing tools
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Comparative Study Between Various Tools Of Digital Marketing
The above graphical representation shows the effectiveness of content
marketing and the mone& being spent on the same.
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Comparative Study Between Various Tools Of Digital Marketing
FINDINGS-
Through this stud& we can conclude that the most promising and effective digital
marketing tools seem to be) Content marketing, SEO, S""
Content marketing is a strategic marketing approach focused on creating and
distributing valuable, relevant, and consistent content to attract and retain a clearly<
defined audience S and, ultimately, to drive profitable customer action.
;ontent marketing:s purpose is to attract and retain customers by
consistently 'r&a!" a"/ 'ra!" r&%&0a" a"/ 0a%,a$%& 'o"&" with the !"&"!o" o# ')a"!" or &")a"'!" 'o"(,m&r $&)a0!or. It is an o"o!" ro'&(( that is best
integrated into your overall marketing strategy, and it focuses on o"!" m&/!a, not
renting it.
5asically, content marketing is the art of communicating with your customers and
prospects without selling. It is non<interruption marketing. Instead of pitching your
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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.
nd they do. ;ontent marketing is being used by some of the greatest marketing
organizations in the world, including P:G; M!'ro(o#; C!('o S(&m(; a"/ Jo)"
D&&r&. It:s also developed and e2ecuted by small businesses and one<person shops
around the globe. %hy& 5ecause it works.
;ontent is the present / and future / of marketing
Bo 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 andthe other informational garbage you get from companies trying to sell you 'stuff.(
;ompanies send us information all the time / it:s )ust that most of the time it:s not very
relevant or valuable can you say spam&E. That:s what makes content marketing so
intriguing in today:s environment of thousands of marketing messages per person per
day. Bood content marketing makes a person stopread think behave differently.
Thought leaders and marketing e2perts from around the world, including the likes
of "eth Bodin and hundreds of the leading thinkers in marketing have concluded
that content marketing isn:t )ust the future, it:s the present see the video below on
the history of content marketingE.
SEO is an important factor to think about when adapting or designing a website.
The following takes a look at the benefits of "earch 4ngine -ptimization "4-E.
6ou may have heard of "earch 4ngine -ptimization "4-E, which is an online
marketing strategy that improves search engine rankings of a website along with online
traffic. fter finding out what "4- is you may be wondering how "4- will benefit youand your website.
It is beneficial to adapt or design a site for "4-. dapting or designing a site for
"4- leads to$
• "earch engine inde2ing
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• "earch engine ranking
• Increased visitor traffic
• -nline revenue
"earch 4ngine -ptimization "4-E 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 "4-
and its importance.
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I6. !N!LSIN
;onsumers have shut off the traditional world of marketing. They own a DV1 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 irrelevantE.
"mart marketers understand that traditional marketing is becoming less and
less effective by the minute, and that there has to be a better way.
The sole purpose of effective online marketing advertisements is to utilise a
campaign strategy at the lowest possible cost and risk investment, in order to ma2imisesales potential and receive a high return on investment profitE.
-nline marketing costs are somewhat ine2pensive in comparison with other
mediums. ;ost effective design and well planned campaign strategies can reach a broader
target audience which can be viewed from virtually anywhere in the worldE for a smaller
price tag than most traditional advertising budgets.
-nline 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. Aeople are also drawn in better if the option of choice is
abundant and results are seen #uickly.
The overall success and effectiveness of an online marketing campaign largely
depends on the business goals laid out, as well as cost volume profit ;VAE analysis a
form of cost accountingE.
-nline 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. ethods in which this can be done include pay per impression;A$ cost per thousand viewersE, pay per click AA;$ a host company is paid every time
an advertisement is clicked onE, pay per play AAA$ pay per audio advertisement playedE
or pay per action AA$ an advertiser pays for a specific action related to an
advertisement, such as a form submission or a purchaseE. %eb analytics are also a useful
tool in being able to effectively track the e2posure, response and overall efficiency of
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online marketing by collecting, analysing and reporting back internet data. 7ere,
advertisers can determine the best return on investment 1-IE. 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.
Aay per click advertising is notably the most effective means of generating
immediate traffic to a website. dvantages of this form include only paying when a user
interacts with an ad clicks on itE, 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 businessE.
-nline marketing campaigns can be implemented much faster than traditional
forms of advertising, reaching a targeted audience within a matter of days and in somecases, hours.
-nline marketing provides a greater fle2ibility level whereby campaigns can be
altered to test new markets, evaluate new programmes and make changes more specific to
a targeted market.
"earch engine optimisation "4-E companies who specialise in helping companies
best market their products and services online can successfully place them on the top or
first page of ma)or search engines and directories, such as Boogle, "N and 6ahoo. This
will ensure that competitors are kept at bay at a lower level on a search engine websiteE,
with the sole aim of generating #uick and efficient sales or services, as well as increasing
a profit ratio.
• Effective Online "arketing Tools
Tools that can be used to make an online marketing campaign at its most effective
include$
Doma!" "am& / website addresses should be uni#ue, simple, short, andmemorable, as well as strongly reflect what a company stands for and intends to offer
their target audience. This is essentially a company:s very first online marketing tool. If
the name chosen isn:t memorable and reflects the nature of the company, it is not likely to
achieve success.
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Co"&" / better content makes for abetter website. ;ontent should be packed
with keywords that search engines can easily pick up on when a web user is online.
+&or/( in online marketing are truly a #uality tool as this is what will draw a targeted
audience onto your website.
N& ma&r!a% a"/ ,/a&( / 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.
S!m%!'! / by keeping things simple and concise, a targeted audience doesn:t
feel that their time is being wasted, as in today:s fast paced society, time is of the essence.
arketing your website / advertising your website on other websites such asQeuzzo or doing d"ence can greatly create more awareness of a company:s brand,
services or products.
B%o( / are fast becoming essential tools for online marketers as they can build a
content rich website, as well as attract targeted traffic from all ma)or search engines.
-nline marketing is a collaboration of elements that produce a successful web
based advertising strategy or campaign. Identifying the tools needed and making the most
of them re#uires an enormous amount of skill, practise and e2pert thinking minds. The
work that is put in ultimately determines the level of success that will be achieved.
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Re2erence
$e/sites
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http$00www.slideshare.net0factor0an<overview<to<digital<marketing
https$00www.coursera.org0learn0marketing<digital
e+%KS"ocial edia arketing 3or Dummies