E-MARKETING 5/E JUDY STRAUSS AND RAYMOND FROST Chapter 14: New Digital Media ©2009 Pearson Education, Inc. Publishing as Prentice Hall 14-1

E-MARKETING 5/EJUDY STRAUSS AND RAYMOND FROST

Chapter 14: New Digital Media

©2009 Pearson Education, Inc.

Publishing as Prentice Hall

14-1

©2009 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 14 Objectives

After reading Chapter 14, you will be able to: Describe the characteristics of the major physical

(off-line) and digital (online) media. Differentiate among broadcast, print, narrowcast,

and pointcast electronic media. Explain how marketers use reputation aggregators

for natural, paid, and vertical search. Compare and contrast social media communities,

blogs, and social networks. Outline the main methods for buying media and for

evaluating an integrated marketing communication (IMC) campaign’s effectiveness.

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Halo 3 Launch

Halo 3 went on sale worldwide September 25, 2007 and sold 3.3 million units the first week.

Microsoft combined physical (off-line) and digital (online) media to announce Halo 3 and create buzz. Formed off-line partnerships with Burger King,

Mountain Dew, Doritos, Pontiac, and others to co-brand products, license merchandising, etc.

Added digital media including video documentaries and Web sites for buzz building.

Can you think of recent product launches that have combined off-line and online marketing and media?


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Marketing Communication Media The line between off-line and online

media space is blurring more every day. For example, newspaper ads and articles

are often accessible in either location. Media can also be categorized as paid

and unpaid. Each medium has capabilities, strengths,

and weaknesses.


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Media Types

Broadcast media include TV and radio. Print media include newspapers and

magazines. Narrowcast media such as Cable TV

(CATV) transmit focused electronic content to special-interest markets.

Pointcast media are electronic media that can transmit to just one person.

Direct postal mail allows for selective targeting and can be personalized.


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Spending for Various Media

Ex 14.2


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Strengths & Weaknesses of Major Media

Criterion TV Radio Magazine Newspaper Direct Mail Internet

Involvement passive passive active active active interactive

MediaRichness

multi-media

audio text and graphic text and graphic text andgraphic

multi-media

GeographicCoverage

global local global local varies global

CPM low lowest high medium high medium

Reach high medium low medium varies medium

Targeting good good excellent good excellent excellent

Track Effectiveness fair fair fair fair excellent excellent

Message Flexibility poor good poor good excellent excellent

7

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Digital Media

IMC tools can be used to communicate with target markets via digital media. E-mail is a direct marketing digital medium. Web sites are digital media.

Social media are online tools and platforms that allow internet users to: Collaborate on content. Share insights and experiences. Connect with others.


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Social Media Types

Ex. 14.4


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Search Engines

Search engines are reputation aggregators (Web sites that rank Web sites and products). Google ranks search engine results partially

based on popularity. Some are calling Google a “reputation engine.”

Search marketing refers to the act of marketing a Web site via search engines. Natural search. Paid inclusion. Pay per click advertising.


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Search Engine Market Share

Ex. 14.5


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Natural Search

Natural search (also called organic search) involves optimizing a Web site so that it will appear near the top of the results page when searched.

Search engine optimization (SEO) is the act of altering a Web site and incoming links so that it does well in organic, crawler-based listings.

Web sites optimize both their content and meta tags with keywords that visitors are likely to type into search engines.


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SEO Tactics to Achieve Greater Rankings

Ex. 14.6


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Paid Search

Paid search occurs when an advertisers pays a fee for directory submission, inclusion in a search engine index, or to display their ad with particular keyword searches.

Paid search is commonly called pay-per-click (PPC) because advertisers pay when users click on ads. Google charges $0.15-$15 per click. Click-through rates can range from 0% to 50%.


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Vertical Search

Vertical search is site-specific search on specialized topics, such as travel, online retailers, or books.

Vertical search sites include: ZoomInfo and LinkedIn (people search). CareerBuilder (jobs). YouTube (videos).

Pricing models on vertical search sites include directory submission fee, cost-per-click, and traditional cost-per-thousand (CPM) impressions.


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Online Communities

Types of communities include wikis, news aggregators, video and photo sharing sites, online forums, product review sites, etc. A wiki is software that allows users to

collaborate on the content of the site. News aggregators, such as Digg.com, bring

news from many sources to one place. Video and photo sharing sites host user-

generated content.©2009 Pearson Education, Inc. Publishing as Prentice Hall

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Community Building Principles Larry Weber (2007) suggests a 7-step

program for building a successful online community:1. Observe.2. Recruit.3. Evaluate platforms.4. Engage.5. Measure.6. Promote.7. Improve.


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Blogs

Blogs, online diaries, or journals are social media. In 2007, 12% of internet users had created

a blog and 22% had posted comments. Technorati.com tracks over 112 million

blogs. Marketers use blogs to disseminate their

views and to draw users to their sites.


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Social Networks

Social networks help individuals connect deeply with other for different purposes: Meeting people, sharing interests, and

having fun. Finding contacts to get a job, venture

capital, or to find employees. According to Lewis PR, 33% of companies

will implement a social network by 2008 and 70% will include social networks in their marketing strategy.


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Effective Internet Buys

Marketers use many digital strategies to reach target markets: Search engines. Social media such as online videos and

blogs. Keyword advertising campaigns.

It is difficult to generalize about the most effective online media strategies.


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Efficient Internet Buys, cont. Cost per thousand (CPM) calculations

can determine the most efficient buy. The CPM metric is calculated as follows:

(Cost of the ad/Audience) *1,000 Audience size is expressed in impressions.

Typical Web CPM prices are $7-$15 or $0.15 to $15.00 at Google.


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Metrics

The measurement of advertising campaign effectiveness includes metrics such as: Click % Conversions CPM

To see how a firm evaluates the effectiveness of its internet advertising buy, consider the examples in Exhibits 14.21 and 14.22.


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iGo.com $3 Million Advertising Buy Ex. 14.21

©2009 Pearson Education, Inc. Publishing as Prentice Hall 23

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iGo Effectiveness Measures Ex. 14.22

©2009 Pearson Education, Inc. Publishing as Prentice Hall 24

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E-MARKETING 5/E JUDY STRAUSS AND RAYMOND FROST Chapter 14: New Digital Media ©2009 Pearson Education, Inc. Publishing as Prentice Hall 14-1