Marketing and Advertising in E-Commerce Barham Muhamad - Nasir Ivan

E-commerce Marketing Almost 42% of Americans plan to shop mostly online in 2017, according to the “2017 Shopping Outlook” survey by PriceGrabber. Another 45% plan to make most of their purchases through a combination of online, brick-and-mortar, and mobile shopping, while just 12% plan to only shop in actual stores.

E-commerce Marketing E-commerce, also known as online shopping, is becoming more widespread as more consumers look to the Internet for purchasing decisions. Consumers can find a wider variety of goods, often at more competitive prices, than they would at their local brick and mortar retailers. According to Understanding Online Shopper Behaviors by Forester Research, E-commerce business-to-consumer product sales totaled $142.5 billion in 2016, representing about 8% of retail product sales in the United States.

E-commerce Advertising Online advertising, also called online marketing or Internet advertising or web advertising, is a form of marketing and advertising which uses the Internet to deliver promotional marketing messages to consumers. Consumers view online advertising as an unwanted distraction with few benefits and have increasingly turned to ad blocking for a variety of reasons. When software is used to do the purchasing, it is known as programmatic advertising.

ADVERTISING Advertising on the Web plays an extremely important role in e-commerce. Internet advertising is growing very rapidly online ad revenue reached a record high of $42.8 billion in 2013 in the United States alone, which is a 17% increase from the previous year, while mobile advertising increased by 110% to 7.1 billion in the United States in 2013 The Internet advertising revenue surpassed $40.1 billion of broadcast television and $34.4 billion of cable television

Overview of Web Advertising Advertising is the delivery of ads to Internet users in order to influence people to buy a product or a service. Traditional advertising (also known as marketing communication) is an impersonal, one-way mass communication. The Advertising Cycle Many companies are treating advertising as a cyclical process

The Advertising Cycle Many companies are treating advertising as a cyclical process

Relationship (One-to-One) Marketing Is different from traditional marketing in that it focuses on building long-term relationships with customers. In order to do so, the seller must have a much deeper understanding of its customers on a one-to-one basis. Instead of selling a single product to as many customers as possible, marketers are trying to sell as many products as possible to one customer – over a long period of time. To do this, marketers need to concentrate on building unique relationships with individual customers on a one-to-one basis.

MASS MARKETING Traditionally, marketing efforts were designed to attract everyone in the market (the “masses”). For example, using a newspaper or TV ad usually means one-way communication from the message provider to the receiver. Such an effort may be effective for brand recognition or for introducing a new product or service to the public. Putting banner ads on an Internet portal so that everyone who accesses the website can see the message is a typical example of online mass marketing.

Marketing Segment Refers to the strategy that involves dividing a large group of consumers into smaller segments and then implementing suitable advertisements to target each segment. For example, cosmetics retailers may advertise to users that directly effects women. In this way, the market is segmented by the gender of consumers. Market segmentation also reduces the risk of an unsuccessful or ineffective marketing campaign, there is a much higher chance of success than if they were to create an implement across all segments.

Basic Internet Advertising Terminology Ad views:The number of times users call up a page that has a banner on it during a specific period; known as impressions or page views Button: A small banner that is linked to a website; may contain downloadable software. Click (ad click): a count made each time a visitor clicks on an advertising banner to access the advertiser’s website.

CPM (cost per mille, i.e., thousand impressions: The fee an advertiser pays for each 1,000 times a page with a banner ad is shown. Conversion rate: The percentage of clickers who actually make a purchase. Click-through rate/ratio (CTR):: The percentage of visitors who are exposed to a banner ad and click on it.

Hit: A request for data from a Web page or file. Landing page: The page a viewer is directed to after having clicked on a link. In online marketing, this page is used to convert the person from a viewer to a buyer. Page: An HTML (Hypertext Markup Language) document that may contain text, images, and other online elements, such as Java applets and multimedia fi les; may be generated statically or dynamically.

How to Create a Marketing Strategy? Before writing your marketing strategy, you need to know how your product or service benefits others and how it's unique to other businesses in the marketplace. Further you need to do market research to understand your competitors, your target, and other factors that will impact your ability to reach and attract people to your business. Researches are made to avoid problems. Once you have your research, you can write your marketing strategy according to the 4 Ps of your marketing mix 

Who employs E-commerce Marketing? All manner of retailers – including clothing stores, fabric wholesalers, furniture manufacturers and technology companies employ e-commerce marketing. Sometimes, brick and mortar retailers make a decisions to not to build e-commerce websites, because they want the experience of visiting their store to be a unique, elite experience.

Web Cookies for Data Collection Cookies are small files sent from a website and stored in your computer. They allow companies to save some information for future use. The use of cookies is a popular method that allows computers to look smarter and simplifies Internet access. The main purpose of cookies is to identify users and possibly prepare customized Web pages for them. Cookies can provide marketers with a good amount of information from users, which then can be used to target specific ads to them. Are cookies bad or good? The answer is “both”.

Major Categories of Ads Classified Ads : These ads usually use text, but lately may include photos. The ads are grouped according to classifi cation (e.g., cars, rentals). They are the least expensive. Display Ads : These are illustrated advertisements that use graphics, logos, colors, or special designs.

Interactive Ads :These ads use online or offline interactive media to interact with consumers and to promote products, brands, and services. Banners : A banner is a display that is used for advertising on a Web page (words, logos, etc. embedded in the page). A banner ad is frequently linked to an advertiser’s Web page.

Pop-Up and Similar Type Ads : One of the most annoying phenomena in Web surfing is the increased use of pop-ups and similar ads. Pop-Up Videos : Along with the increase in popularity of free viral videos (e.g., on YouTube) comes the pop-up commercial before them.

E-Mail Advertising: refers to the use of e-mails for sending commercial messages to users. E-mail marketing may occur in different formats and for different purposes. Search Engine Advertisement and Optimization: Search engines are a good mechanism for most people to find information, and therefore, a good platform for online advertising. Placing online ads on Web pages that show results from querying a search engine is known as search advertising .

Video Advertising : Video advertising refers to the insertion of video ads into advertisements or regular online contents MOBILE MARKETING AND ADVERTISING : is frequently defined as the use of mobile devices and wireless infrastructure as a means of marketing and advertising

Types of Mobile Ads Short Message Ads : SMS ads are commercial messages sent in the form of short text messages. Location-Based Ads : Location sensitive businesses can take advantage of this feature to deliver location-based ads. A good example is a Google Map that can show nearby convenience stores, gas stations, hotels, and restaurants when a location is searched

Viral Mobile Marketing : Viral marketing can also be deployed to the mobile platforms. This is called viral mobile marketing. A typical approach is to develop and distribute apps for mobile devices

ADVERTISING STRATEGIES AND PROMOTIONS Permission Advertising : One solution to the flood of ads that people receive via e-mail that is used by advertisers is permission advertising or permission marketing (or the opt-in approach ), in which users register with vendors and agree to accept advertisements

Affiliate Marketing and Advertising : the concept of affiliate marketing – the revenue sharing model in which an organization refers consumers to a seller’s website. Affiliate marketing is a type of ‘performance-based-marketing’ used mainly as a revenue source for the referring organization and as a marketing tool for the sellers

Affiliate Networks : A key to successful affiliate advertising is to have a good affiliate partner network. An affiliate network is a network created as a marketplace where publishers (affiliates) and merchants (affiliate programs) can collaborate. Personalized Ads : Since the Internet contains too many irrelevant ads, customized ads can help. The heart of e- marketing is a customer database, which includes registration data and information gleaned from site visits.

Localization in Advertising : The reach of Internet marketing is quite broad. An ad may be viewed around the world. This is an advantage, but could also be a drawback because culture differences may cause different interpretations of the same message in different communities.

Advertising on Facebook : In 2012, Facebook began generating billions of dollars from advertising. For example, users’ ‘Likes’ can appear in ads targeted to friends. For 45 ‘tips and tricks’ see Marrs ( 2014 ). Note that other social networking sites such as Google+, Instagram, Twitter, and Pinterest also advertise. Advertising on social media is a trend in online marketing

Pros and Cons of Advertising Your Customers Are on the Internet You Can Target Effectively You Can Closely Monitor Spending You Can Track Your Results It’s Complicated Mistakes Can Be Costly Competition Is Fierce Ad Fatigue Is Common

Thanks! You may ask your questions.