E-commerce Marketing & Advertising IT 361: E-Commerce Systems Chapter 4 E-commerce Marketing & Advertising Social, Mobile & Local Marketing Readings: Chapter 7

Facebook: Putting Social Marketing to Work Class Discussion 190M users in North America, & 1 B global Face was the next Google & next Amazon 2012, Stock price $38 -> $17.5 “would facebook be able to increase its advertising revenue?” “will social marketing work?” 2012 mobile strategies: Ads in users news feeds Shift from browsers to apps (8K developer + 25K facebook apps + 20M apps installed everyday) Redesigning facebook apps for mobile App-install ads In-app ads Advantages of in-app ads: not perceived to be disruptive or annoying as new fees ads Inconvenience of ads vs. free game 2013: 40% access facebook from mobile + mobile ads generated 41% of facebook revenue Successful with small businesses (connect with shopping carts + online community + videos + contest)

Facebook: Putting Social Marketing to Work Class Discussion Important questions: Does facebook marketing & advertising platform really work? how well vs. other techniques? Do Likes turn into sales? Marketing vs. Driving sales? Is it sustainable? Other initiatives: video ads + integrating with instagram Research about the effectiveness of social marketing 5% rank social network as the most important factor for purchasing 2-7% influence customers prior to purchase vs email, SE, display ads, website. 88% of companies use facebook for marketing

Facebook: Putting Social Marketing to Work Class Discussion Have you ever made a purchase based on something you have read or seen on Facebook? What was the product and what made you interested? What obstacles does Facebook face in monetizing itself as a marketing and advertising platform? Are there other ways for Facebook to make a profit from marketers and advertisers?

Introduction to Social, Mobile, and Local Marketing Eyeballs -> Conversation New marketing concepts “conversations” & “engagement” in 2007: Rapid growth of SN users Growth of smartphones Growth of interest in local marketing Desktop -> Smartphones Social-mobile-local nexus Strong ties between consumer use of social networks, mobile devices, and local shopping

Social Marketing Traditional online marketing goals Deliver business message to the most consumers (impression) Social marketing goals (reach + engagement) Encourage consumers to become fans and engage and enter conversations Strengthen brand by increasing share of online conversation

Social Marketing Players

The Social Marketing Process

News Feed Ads vs. Sponsored Ads Facebook News Feed ads have a click-through rate 44x higher, and a conversion rate 5X higher, than right-side ads

The goal of Promotion ads is to reach more of a company’s existing audience and some of their friends

Sponsored Stories Built around user activity The goal of Sponsored Stories to get more users to take the same action that a friend has

Typical Social Marketing Campaign Know your customer Establish Social brand page – Content is King Use comment and feedback tools to develop fan comments Develop a community of users Encourage brand involvement through video, rich media, contests Use display ads for other pages and social search Display Like button liberally

Measuring Facebook Marketing Results Basic metrics: Fan acquisition metrics Engagement metrics Amplification metrics Community metrics Brand strength/sales Facebook analytics tools Facebook Page Insights Social media management systems (HootSuite) Analytics providers (Google Analytics, Webtrends)

Insight on Technology Fairmont Hotels How do social technologies help identify and attract loyal customers? What are the challenges in measuring the effectiveness of social campaigns? What were the advantages Fairmont Hotels found in using Google Analytics?

Mobile Marketing 90% of retail plans to have mobile marketing campaign People look at phones at least 40 times a day. Mobile marketing formats Banner ads, rich media ads, and video ads Games E-mail and text messaging In-store messaging Quick Response (QR) codes Couponing

The Growth of Mobile Commerce

$39B 15% of retail & travel sales

Mobile Marketing Campaigns Mobile Web site Facebook and Twitter brand pages Mobile versions of display advertising campaigns Ad networks Interactive content aimed at mobile user Tools for measuring responses Key dimensions follow desktop and social marketing metrics

Local & location-based marketing Targets messages to users based on location Marketing of location-based services Location-based services Provide services to users based on location Personal navigation Point-of-interest Reviews Friend-finders, family trackers Consumers have high likelihood of responding to local ads

Location-Based Marketing Campaigns Location-based considerations Consider action-based, time-restrained offers and opportunities Consider target demographic and location-aware mobile user demographics Measuring marketing results Same measures as mobile and Web marketing Metrics for measuring unique characteristics Reservations Click-to-call Friend Purchase