E-Marketing 5/E Judy Strauss and Raymond Frost Chapter 14: New Digital Media ©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. ©2009 Pearson Education, Inc. Publishing as Prentice Hall

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

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

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

Spending for Various Media Ex 14.2 ©2009 Pearson Education, Inc. Publishing as Prentice Hall

Strengths & Weaknesses of Major Media 14-7 Criterion TV Radio Magazine Newspaper Direct Mail Internet Involvement passive active interactive Media Richness multi- media audio text and graphic text and graphic multi-media Geographic Coverage global local varies CPM low lowest high medium Reach Targeting good excellent Track Effectiveness fair Message Flexibility poor ©2009 Pearson Education, Inc. Publishing as Prentice Hall

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

Social Media Types Ex. 14.4 ©2009 Pearson Education, Inc. Publishing as Prentice Hall

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

Search Engine Market Share Ex. 14.5 ©2009 Pearson Education, Inc. Publishing as Prentice Hall

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

SEO Tactics to Achieve Greater Rankings Ex. 14.6 ©2009 Pearson Education, Inc. Publishing as Prentice Hall

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

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

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

Community Building Principles Larry Weber (2007) suggests a 7-step program for building a successful online community: Observe. Recruit. Evaluate platforms. Engage. Measure. Promote. Improve. ©2009 Pearson Education, Inc. Publishing as Prentice Hall

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

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

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

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

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

iGo.com $3 Million Advertising Buy Ex. 14.21 14-23 ©2009 Pearson Education, Inc. Publishing as Prentice Hall

iGo Effectiveness Measures Ex. 14.22 14-24 ©2009 Pearson Education, Inc. Publishing as Prentice Hall

©2009 Pearson Education, Inc. Publishing as Prentice Hall