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

2. 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)

4. 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 , SE, display ads, website.
88% of companies use facebook for marketing

5. 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?

6. 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

9. 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

10. Social Marketing Players

11. The Social Marketing Process

13. 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

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

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

16. 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

17. 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)

18. 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?

19. 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
and text messaging
In-store messaging
Quick Response (QR) codes
Couponing

20. The Growth of Mobile Commerce

22. $39B
15% of retail & travel sales

23. 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

24. 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

25. 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