intro to internet marketing offers 20141001
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Introduction to Internet Marketing PresentationTRANSCRIPT
Introduction to Internet Marketing
ADV 370J Integrated Communications MgmtOctober 1, 2014
Steve Schaffer, Founder & CEO
© 2009, 2014 Offers.com Proprietary and Confidential
Outline for Today
• Overview of Online Marketing
• Types of Online Marketing– Search Marketing– Performance Marketing– Display Advertising– Social Media
• Digital & Mobile Coupons– Coupon Websites– Mobile Coupons
• Questions & Discussion
October 1, 2014Page 2
© 2009, 2014 Offers.com Proprietary and Confidential
October 1, 2014Page 3
About You & Questions
© 2009, 2014 Offers.com Proprietary and Confidential
Who am I?Steve Schaffer - Founder and CEO
• BBA in Finance from UT (May 1986)
• 15+ years software product management and marketing in Silicon Valley
• 15+ years of Internet marketing and strategy experience
• Founded Vertive in 2002 (while still in Silicon Valley)
• Moved to Austin January, 2003
• Offers.com launched February 2009
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© 2009, 2014 Offers.com Proprietary and Confidential
About Offers.com
• A leader in the coupon and deals space– Paid when a defined transaction occurs (sale or lead)
• Proprietary platform for publishing websites and managing marketing campaigns
• 50+ employees and is growing
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© 2009, 2014 Offers.com Proprietary and Confidential
October 1, 2014Page 6
Overview of Online Marketing
© 2009, 2014 Offers.com Proprietary and Confidential
Internet Advertising Growth 1996-2012
• Q3 2012 Ad Revenue: $10 Billion– Since 2003, 80% of quarters have experienced positive growth over their prior
quarter
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Source: www.iab.net
© 2009, 2014 Offers.com Proprietary and Confidential
Global Ad Spend: $503 Billion in 2013
• Mobile advertising one of the fastest growing segments– 2012: 1.7% of total media– 2015: 6% of total media ($33Bn; 25% of internet spend)
October 1, 2014Page 8
Source: www.zenithoptimedia.com
© 2009, 2014 Offers.com Proprietary and Confidential
October 1, 2014Page 9
Types of Online Marketing
© 2009, 2014 Offers.com Proprietary and Confidential
October 1, 2014Page 10
Search Engine Marketing
© 2009, 2014 Offers.com Proprietary and Confidential
Search Engine Results Overview
• Search Engines’ Goal: Answer user’s search query
• Search Engine Optimization (SEO)– Public relations: “free” listings– Based on search engine algorithm
• Search Engine Marketing (PPC)– Marketer pays each time a user clicks on their ad– Detailed and precise tracking
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Unique Aspects of Search
• Self-qualified user– Customers type in a search phrase– Non-intrusive: based on users request
• Customize message and user-experience based on search phrase
• What is the intent of the user?– Research – gathering information– Evaluation – selecting alternatives– Purchase – buy/order
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https://www.google.com/
© 2009, 2014 Offers.com Proprietary and Confidential
SEO (Search Engine Optimization) Summary
• User & Search Engine Friendly Design– Page layout– Site organization– Keyword usage– Technical issues
• External Links– Relevant links
• Quality sites with relevant content are best• Landing pages must be relevant
– Link popularity• Shows authority in the space
– Link text• Putting targeted keywords in the link text is crucial
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PPC (Search Engine Marketing)• Pay-per-click
– Marketer pays each time an ad is clicked ($0.05 - $100, avg. is ~$0.80)– Automated management and billing– Can track desired action back to the keyword
• Control– Keywords and ads– Relevant landing pages– Price and budget
• Understand the value of a visitor– Cost per desired action per keyword– Measure everything: Cost per click, average position, conversion rate
• Actively manage the campaign– Update bids positions and costs based on bid– Test, refine, repeat
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October 1, 2014Page 15
PPC Management in Action
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Determine The Value of a Visitor
• How much is a visitor worth?– What measuring stick do we use?
• Define the actions a user could take to be valuable– Make a purchase, request a quote, enter an email address, etc.
• Define the worth of each action based on business costs and value contribution– Consider costs of advertising, production, shipping, payroll, sales
cycles, lifetime value, etc.
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Keyword Selection: The Right Terms
• Keyword research is vital– Know the product/service– Know how the customer thinks of the product/service
• General keywords vs. Long Tail (Niche)
October 1, 2014Page 17
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Keyword Selection: Match Types
• Exact– Show only when exact keyword is searched
• Phrase– Show when keyword is embedded in query
• Broad Match Modified (BMM)– Show when any combination of specific keywords are in a query
• Broad– Show when any combination of keywords or similar keywords, are in
query
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© 2009, 2014 Offers.com Proprietary and Confidential
Match Type Example: Cheap Tablets
• Exact– Cheap tablets
• Phrase– Cheap tablets for sale under $200
• Broad Match Modified (BMM)– +cheap + tablets = both keywords required in query– cheap + tablets = tablets required in query, will match to variants of
“cheap”
• Broad– Best tablets for the cheapest price– Tablets for cheap
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Ad Copy Writing
• Ads should be as relevant to the query as possible
• Tell the user why they should visit your site and not the competition’s
• Encourage users to take an action: buy now, sign up today, etc.
• Landing page must deliver on ad’s promise
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© 2009, 2014 Offers.com Proprietary and Confidential
Ad Copy Examples: Cheap Tablets
• Which ad is the most relevant?
• Which ad is the least relevant?
• Which ad has the best call to action?
• Which ad would sell the most cheap tablets?
October 1, 2014Page 21
© 2009, 2014 Offers.com Proprietary and Confidential
PPC Management in Action
• Focus on terms that:– Drive converting traffic– Have high enough volume to be meaningful– Drive profit (the value of the visitor is higher than cost to
run)
• All of the above must function together
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Sample Data Set
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Drive Converting Traffic
• Which keyword has the best conversion rate?– E
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Meaningful Volume
• Which keyword drives the most volume?– A
• “E” drives a very small share of volume, so it should not be a focus of the campaign
October 1, 2014Page 25
© 2009, 2014 Offers.com Proprietary and Confidential
Drive Profit
• Which keyword is the most profitable?– C
• “A” has generated a negative ‘net contribution’ that needs to be addressed
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The Bottom Line
• Multiple metrics need to be considered while making decisions
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What’s Next for this Keyword Set?
• Reduce Ad Costs– Lower bids on expensive terms to test lower positions
– Raise bids on low volume positive GP terms to test higher positions
– Write more refined ad copy to reduce untargeted clicks
– Expand keyword list to grow long-tail
– Add negative keywords to refine traffic
– Shut down proven big losers
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What’s Next for this Keyword Set?
• Improve on-site conversion (CVR)– Test landing page variations using A/B or
multivariate methods
– Reduce as much friction as possible between the visit and the order
– Evaluate shopping cart steps: too many steps?
– Evaluate requested info: too much requested data?
October 1, 2014Page 29
© 2009, 2014 Offers.com Proprietary and Confidential
What’s Next for this Keyword Set?
• Test, test, and test again– Ad copy, keyword lists, bids, and landing pages are
rarely perfect
• Actively communicate successes and failures with management and across departments
October 1, 2014Page 30
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Bottom Line of Search• Understand your goals
– Increase leads or sales– Maximize profit
• Search is complex– What are the back-end (tracking) capabilities?– Specific knowledge is required– Many small and subtle details – Follow best practices (avoid tricks)– Track and measure
• What does this all mean– Search works– The market is growing– Very quantitative field
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October 1, 2014Page 32
Performance Marketing
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How Performance Marketing Works
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© 2009, 2014 Offers.com Proprietary and Confidential
Performance Marketing in Action
October 1, 2014Page 34
1. Performance Publishing Website
2. Merchant Website
3. Commission (Referral Fee or % of Sale) Paid to Performance Publisher http://www.offers.com/otterbox/
© 2009, 2014 Offers.com Proprietary and Confidential
October 1, 2014Page 35
Display Advertising
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Display Advertising
• Typically a cost per thousand impressions (CPM) model– Advertiser pays each time the ad is loaded, not
viewed
• Advertiser decides how to target– Where are potential customers?– Higher quality site & relevance = more expensive
• Ad units can be static, animated or rich media– Depends on site limitations
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Samples:http://www.cnn.com/http://www.msn.com/
http://www.youtube.com/
© 2009, 2014 Offers.com Proprietary and Confidential
October 1, 2014Page 37
Social Media
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Social Media
October 1, 2014Page 38
© 2009, 2014 Offers.com Proprietary and Confidential
Social Networking
• Goal: Engage in a conversation with users– Use platforms like Twitter, Facebook, Pinterest,
Instagram, and Google+
– Which platforms are used depend on the target audience
– Maintain a presence: don’t ignore users
– Offer incentives, discounts, or other perks for users to join the conversation
October 1, 2014Page 39
© 2009, 2014 Offers.com Proprietary and Confidential
Measuring Social Media
• Multiple Performance Metrics Available– Number of page views, friends, followers, etc.– Brand Engagement users– Conversions to sales/customers
• Social Media Monitoring Tools– Aggregate what users are saying about a brand– Gives brand a way to react to users
October 1, 2014Page 40
© 2009, 2014 Offers.com Proprietary and Confidential
October 1, 2014Page 41
Learning More
© 2009, 2014 Offers.com Proprietary and Confidential
Internet Marketing Websites & Resources• Internet Marketing
– BruceClay.com– ClickZ.com
• SEM Websites– SearchEngineLand.com– SearchEngineWatch.com– SEMPO.org – SEM professionals organization
• Performance Marketing– PerformanceMarketingAssociation.com
• Research Data– TNS-mi.com (TNS Media Intelligence)– eMarketer.com– www.youngadultmoney.com– comScore.com
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October 1, 2014Page 43
Questions?