CCT356: Online Advertising and Marketing Class 2: Marketing/Online Advertising

Marketing is about conversations… Carr, A. (2007). Designing for Sustainable Conversations. InteractionCamp with-social-media-59204

Marketing The simplest kind of conversation – direct one-to-one or one-to many messaging Cost effectiveness – far more so than traditional direct mail Targeted – with right data about users, messaging can be pinpointed Customizable – form letters can integrate database records Measureable – smart execution leads to traceable results

Types of marketing Transaction reporting Newsletters (retention strategy) Promotional s

Spam, spam, spam… Of course, cheap has its drawbacks 80-90% messages are unsolicited Many are filtered - sometimes aggressively and automatically

Nine Steps

Strategic Planning What is the goal of the campaign? How will you measure success? (KPI)

Defining List Metadata about client – how much is too much? Should be opt-in, and easy to opt-out Clear information about how many s will result – mitigate information overload Benefit statement – why should they sign up? Privacy concerns – especially in international campaigns

Execution Avoid spam filter words HTML vs. text – benefits/drawbacks Unsubscribe – opt-in, opt-out Know your audience – what do they want to see? Integrate with other channels – e.g., blog, website, Facebook/Twitter, etc.

Considerations in Sending IPs get targeted as likely spam sources – don’t get yourself on the list, and definitely don’t use Hotmail or other determined sources of spam Be reasonable in traffic - stick to promises Database cleansing – s change – bounced s should be cleansed

Online Advertising Another classic technique, very similar principles to traditional ads Ads: Build brand awareness Create/stoke consumer demand Inform potential customers of products/services Spur action

Types of Ads Interstitial Pop up/under Mashups (e.g., Google Map ads) Floating Interactive (Flash/HTML5 based) Wallpaper Banner/Tower (and their standard sizes) Facebook Google Adwords

Typical Ad Sizes

Buying Ads Cost per Impression (CPM – M = 1K) Cost per Click – not impression but clickthrough Cost per Engagement – mouseover/interactivity Cost per Acquisition – e.g., successful transaction (e.g., sales, signup, etc.) Flat rate - $X a week/month/etc.

Ad servers/networks As online advertising matures, similar networks to traditional advertising emerge Centralized and professional storage, targeting based on behavior/location, tracking Control over frequency, display, exclusivity, sequence

Issues with online ads The annoyance factor – especially with intrusive ad types – can be a branding nightmare Ad-blocking/scrubbing – especially pop-ups Incorrect contextual advertising – can be embarrassing Use of outside networks = bottlenecks (e.g., when web sites don’t load successfully due to outside network problems)

Case: Facebook Ads Very limited space – 25 character title, 135 character body, 110 by 80 pixel size CPC (minimum $0.01 per click) or CPM ($0.02 per thousand) – advertiser choice Auction system – the more you bid, the more likely your ad runs Targeting by: location, age, birthday, relationship status, language, interests, education, connections Maximum bids controlled by daily and campaign budgets

Common points No one technique will work – part of an integrated campaign Conversation and building long relationships is key – more speaking with the audience vs. at them.

Next week More on financial models of advertising online