Online Marketing Submitted By: Tech 4. 0 (Group 16) Amey Kolhatkar (09BM8008) Balaji M (09BM8015) Divya Goel (09BM8026) Rahul Yadav (09BM8073) Introduction Marketing is the beginning of everything. An old saying states that ‘‘nothing happens until a sale is made,’’ and that is true. But until someone does some marketing, there is nothing to sell, and no premise on which to sell it. Marketing is the eyes and ears of the company, tuned to the customer, and to competition. It is the driving force behind new products, behind the promotion and advertising and all of the other communications about the new products.
However, in today’s world of exponential growth of Internet and advancements in Web 2. 0, Media Marketing is a thing of past. If you want to be heard today, then you have to appeal to each and every person in your target segment. Here comes the role of Online Marketing. Online Marketing is a powerful and self-sufficient marketing strategy. A range of Internet channels are used to motivate prospects to visit your website, and to promote a favourable image of your company, its products and services.
Targeted website traffic is a key objective of online marketing as it encourages genuine prospects to purchase products and services, find company, product and service information, interact with your brand (through forums, chat rooms and competitions), subscribe to newsletters and mailing lists, and download documents and applications. Web 2. 0 here provides tools that enable to directly increase market exposure and provide visitors or customers a better experience that allows increasing conversions.
Exponential growth of Internet over years, technical advancements, and the need for direct communication to target audience in today’s extremely competitive and globalized business world, have made the extensive use of Online marketing strategy completely inevitable. Online Marketing offers following advantages over traditional Media marketing: • High leverage – reach millions of prospective customers instantly • Low overheads – never pay for printing, postage or advertising again • Measurable results – only spend money on things that you know work Predictable returns – only reproduce your best results • Low risk – avoid the costly pitfalls of traditional marketing techniques Good Search Engine Marketing strategy is a lifeline to effective online marketing. Here comes the glorious concept of SEO – Search engine optimization – the study of how the search engines work, how they find a site, what are the keywords that the users search every day, how does the search engine placement work? SEO firms would search for the keywords and then suggest you to add those keywords in your site and that will bring your site name in various results.
The aim behind search engine marketing is to help the site gain as much page rank as possible and putting links on other sites. This procedure helps to attract more visitors on site. Online marketing firms with a strong focus on direct, measurable results for its clients use a powerful combination of technical and marketing expertise, sometimes through online marketing agencies, to achieve their business goals in a practical, cost-effective way. Marketing before Web2. 0 With the world changing at every nanosecond, marketing is also reeling under a whirlwind of change.
Traditional marketing doesn’t hold sway with many competitive and ambitious corporate now. Traditional marketing operates based on the strategies like – Four P’s (marketing mix of Product, Price, Promotion and Placement) and Segmentation (Categorizing audiences). It is company-focused and product-based. It intends only to increase the visibility of the company and its brand. The message conveyed to the customer is company-controlled and motivated unlike in latest Web 2. 0 enabled online marketing strategy, which is consumer-focused and attuned to consumer’s interests.
In traditional marketing mostly Above-The-Line (ATL) approach of advertising was practiced. Common modes of advertising were Print Medium (Newspapers, Magazines, Yellow Pages, Posters and Billboards), TV & Radio (All kinds of TV and Radio spots) and other communications like mailers and leaflets. But Traditional Marketing fails to work in today’s world. The brand recall is very minimal as the customer is exposed to a variety of brands. Moreover, as every other brand is as good as its competitor, there is no particular reason for the consumer to opt for a particular brand.
That’s why today’s marketer aims at 360-degree marketing – an all round marketing strategy covering all the available modes and is aimed at constant brand recall. This is where online marketing offer a lot of hope for the marketer as the web reaches out to the prospective buyer in a fastest pace possible. With all these around, traditional marketing has become obsolete now days. Revenue models in Online Marketing • CPM (Cost Per Mille), also called Cost Per Thousand (CPT), is where advertisers pay simply for exposure of their message to a specific audience. “Per mille” means per thousand impressions, or loads of an advertisement.
However, some impressions may not be counted, such as a refreshing a page or internal user action. • CPV (Cost Per Visitor) is where advertisers pay for the delivery of a targeted visitor to the advertisers website. • CPV (Cost Per View) is when an advertiser pays for each unique user view of an advertisement or website (usually used with pop-ups, pop-unders and interstitial ads). • CPC (Cost Per Click) is also known as Pay per click (PPC). Advertisers pay each time a user clicks on their listing and is redirected to their website. They do not actually pay for the listing, but only when the listing is clicked on.
CPC differs from CPV in that each click is paid for regardless of whether the user makes it to the target site. This is one of the most popular models used. • CPA (Cost Per Action) or (Cost Per Acquisition) advertising is performance based and is common in the affiliate marketing sector of the business. In this payment scheme, the publisher takes all the risk of running the ad, and the advertiser pays only for the amount of users who complete a transaction, such as a purchase or sign-up. This is the best type of rate to pay for banner advertisements and the worst type of rate to charge. Similarly, CPL (Cost Per Lead) advertising is identical to CPA advertising and is based on the user completing a form, registering for a newsletter or some other action that the merchant feels will lead to a sale. o Also common, CPO (Cost Per Order) advertising is based on each time an order is transacted. o CPE (Cost Per Engagement) model means advertising impressions are free and advertisers pay only when a user engages with their specific ad unit. Engagement is defined as a user interacting with an ad in any number of ways. List of top online advertisement server vendors in 2008 Vendor |Ad viewers (in millions) | |Google |1118 | |DoubleClick (Google) |1079 | |Yahoo! |362 | |MSN |309 | |AOL |156 | |Adbrite |73 | |Total |3087 | Google acquired DoubleClick in 2007 for a consideration of $3. Billion. Since 2008, Google controls estimated 69% of the online advertising market. Google AdSense Adsense is perhaps one of the most popular advertising programs, run by Google. Like any other online advertising program, it allows the businesses to run their advertisements on the websites of the publishers who participate in the program. Website owners can enroll in the Adsense program and opt to display the text, image and video ads on their websites that are related to the content of their websites. Google takes care of administering their ads and generate revenue for the publishers. [pic]
Example of ads displayed on a website Google utilizes its search technology to serve ads based on website content, the user’s geographical location, and other factors. When a user clicks on any of the Ads displayed on the publisher’s website, Google shares a certain percentage of the cost that the Advertiser pays for that click with the publisher on either a per-click (CPC) or per-thousand-impressions (CPM) basis. The legal issues of Online Marketing Every business should be ethical and legal. Online marketing is an excellent medium of business but it has drawbacks that may lead to your business in unnecessary trouble.
First problem is that once content has been published online, it can be extremely difficult to take it back, particularly if people have already seen it or used it. And therefore one does not want to be labeled as a plagiarist or a violator of copyright because then you will not be seen as a legitimate online marketer. Second problem could be due to your carelessness. If you violate any copyright legal issues, your website will be penalized, rendering it useless and making you, the online marketer, essentially an outcast. You lose your search rankings and in effect, your customers and your business.
How to protect yourself from Copyright Infringement? If there is content online or offline that you find interesting or useful and want to use for your online marketing business, always check the copyright protection first. Usually, the copyright notice is indicated on the material. If it’s not, it’s probably copyrighted anyway unless the author, illustrator or owner gives his permission to reprint or reproduce his content. If the use of content is freely allowed and contains information that is not considered unlawful, it’s safe to republish it.
If you will be offering original content of your own, it’s also important to protect it with a copyright. That is, unless you want to allow others to reproduce your content and use it. This is a generous act on your part and will benefit plenty of interested users. Future of Online Marketing E-commerce has grown by leaps and bounds and continues to set new marks every year. There is little doubt the future is bright. As more people join up with digital revolution, e-commerce continues to grow. Still, one can’t help but acknowledge Internet users are becoming more sophisticated, particularly as a younger generation moves into adulthood.
The economic factor (low cost model) and easy to target customers is also a favorable factor for online marketing. Some needs of online marketing are as follows: Web site visitor analytics: Smaller businesses have recognized the need for visitor analysis but not having the skills to do it in-house. As a result, the focus of analytics providers seems to have shifted towards providing business analysis services rather than just tools. Due to analytics, there will be better navigation on websites, as businesses realize their customers’ needs and optimize their site navigation to facilitate finding the information easily.
Search Marketing: This is very important technical advancement for the online marketing. It includes initiatives like regional search and country-wide search; shopping comparison sites have great business in near future Areas of concern for online marketing Online marketing is currently a bit of a mess. Remnants of the old, such as banner ads and email marketing, are clearly one their way out. Banner ads produce horrific click through rates because people are wary of getting stuck on a site they can’t get away from. Email marketing is tainted by problems such as spam, phishing scams and identity theft concerns; it can be ery helpful or just too risky for users. The dominant models now are pay-per-click advertising and search engine optimization. Search engine optimization will be around as long as people use search engines. The promise of free traffic is simply too glorious to ignore. Since it is fairly difficult to commit fraud in search engine optimization, it is difficult to see any future legal issues threatening it. References: • www. ezinearticles. com • http://www. socialmediamilwaukee. com/ • Wikipedia, www. wikipedia. org • Adsense ‘How to? ’ http://www. adsensehowto. net • Attributor Blog, http://www. attributor. com