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MKT 412 Exam 2

Terms in this set (66)

-% of visits that resulted in the intended action (e.g. form submission, purchase)
conversion rate
Number of instances an ad is served
impression
Efficiency of generating clicks from delivered impression
Click-Through Rate (CTR)
CTR formula
#clicks/#impressions
Efficiency of generating actions from click
conversion rate
conversion rate formula
#Conversions/#clicks
Cost paid when a user clicks on the ad
Cost-per-Click (CPC)
cost=
#clicks X CPC
revenue formula
# Purchase (conversion) × Revenue per purchase
ROI=
Net Revenue / Cost
Net Revenue (Profit)=
Revenue - Cost
Return on Advertising Spending (ROAS)=
revenue/cost
A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their strategic and operational goals
Key performance indicator (KPI)
when should KPI be set?
before launching a campaign
about how to give credit to each channel for its contribution to conversion
attribution model
Types of attribution model: Last-click (pros and cons)
Pros
•Simplicity
•Default on Google Analytics
Cons
•Inaccurate because you ignore all previous efforts
Types of attribution model: First-click (pros and cons)
Pros
•Simplicity
Cons
•Inaccurate because you ignore all subsequent efforts
Types of attribution model: Linear (pros and cons)
Pros
•Simplicity & fairness
Cons
•Limit the implications for budget allocation
Types of attribution model: Positional (pros and cons)
Pros
•A certain level of sophistication
Gives prominence tothe first and the last stages
Cons
•Does not consider time scale
Types of attribution model: Time decay (pros and cons)
Pros
Captures the acceleration process in consumers' buying decision makings
Cons
•Need marketers' knowledge to set the decaying parameter
What is the default model in most analytical packages
last click
•Image or text ads that appear on websites
display ads
Differences between display ads & paid search ads
Users
-Display: passive, near top of the purchase funnel
-Paid search: proactive, near bottom of purchase funnel
Contents
-Display: Image, video, animation
-Paid search: text (mostly)
Advertising objectives
-Display: Brand awareness, re-engaging
Paid Search: Lead generation, direct marketing
Placement
-Display: Publisher's websites
Paid search: Search engine results page
What is actual CPC affected by?
quality score and the incremental performance of the position
Webpages that use the selected keyword
keyword targeting
Webpages that cover the broad topic rather than specific keywords
topic targeting
-Ad network infers user's interests based on past browsing behavior.
-Shows ads to the user on any webpage regardless of the content of the page.
interest targeting
-Advertisers chooses specific website or apps to show their ads
placement targeting
impressions pros and cons
pros
-'Get the word out' for movie releases, retailer sales promotions
cons
-Issue about viewability
-Viewability is an online advertising metric that aims to track only impressions that can actually be seen by users.
-31% of ad impressions can't be viewed by users (Comscore, 2013)
clicks pros and cons
pros
-Instantaneous feedback on individual ads
cons
-Correlation between CTR & ad effectiveness is debatable
e.g.. Does a higher CTR on mobile mean higher mobile ad effectiveness?
•Ads are smaller, but fill more of the screen
•Up to 60% of clicks on mobile banner ads are accidental- fat finger error!
•After accidentally clicking an ad, most respondents said they felt annoyed (68%), frustrated (45%), or angry (22%)
Clickers are a small minority and are getting older
-Only 16% of total internet users have clicked on an online display ad during the month (comScore 2009)
-8% of Internet users account for 85% of clicks (comScore 2009)
Baby boomers (ages 55+) are most likely to click (Crowd science 2011
A catch-all for user interactions with the adbeyond clicking including mouse-over, interacting with interactive ads, rollover, start or skip video
engagement
engagement pros and cons
pros
-Intentional measure showing whether consumer likes ad more than just clicks
•A catch-all for user interactions with advertiser
conversions
conversions pros and cons
pros
-Some direct response advertisers only need conversion info (like app makers & downloads)
cons
-For brand advertisers (like CPG), CTR (and engagement) are often all they can measure!
-Conversion rates are typically very low
-Decisions require much more impression data
•A form of online ads in which brands create sponsored content that blends into the main story or editorial content of an article
•Create compelling content to engage consumers who are increasingly ignoring both offline and online ads
native ads
allows you to deliver ads that directly target the people who have visited your website. When those people leave your website, whether they bought something or not, they will start to see your ads show up in relevant places across the internet.
remarketing or retargeting
Potential segments of visitors to a firm's website that the firm can target for remarketing:
-Everyone that has visited any page on the advertiser's site
-Visitors that added an item to the shopping cart but did not buy it
-Customers that made a previous purchase that the advertiser would like to up-sell or cross-sell
Social media marketing vs. Traditional marketing
•Typical traditional marketing involves company-to-consumercommunication
•Social media marketing enables other forms of communications: consumer-to-consumer andconsumer-to-company
Why social targeting (i.e., targeting friends of a brand's fans) might be more effective than
demographic targeting?
•Social advertising could work for 2 reasons:
-Homophily: your friends are like you
•'Birds of a feather flock together'
-Influence:your friends are influenced by you
The 5 steps of how to leverage Social Media for Marketing
1) Establish goods
2) Choose platform
3) Interact
4) Analyze and measure
5) Control and optimize
Different types of social media content
•Deals/discount
•Contests/drawing
•Useful ideas
•Training/ education
•Product information and updates
•Community
-Sport teams, music groups, etc.
Four levels of brand interactions through digital media
Engage
§Visit brand's social media page
§Watch brand's videos or commercials on Youtube
§Read a blog sponsored by the brand
Participate
§Become a fan of the brand on Facebook
§Join a Facebook group focused on the specific brand
§Follow brand on Twitter
§Subscribe to RSS feed
Contribute
§Provide feedback on brand's social media
§Vote on a product decision by the brand (e.g. flavor, design, name)
§Join a panel or research survey for the brand
Create
§Post reviews about the brand
§Post a Facebook status, pictures, or videos focused on the brand
§Send a customized message sponsored by the brand to a family member or friend
§Tweet or RT about the brand
§Customized or designed a product for the brand
KPIs to measure success
•Measure of Volume
-Total number of likes/followers/subscribers
-New likes/followers/subscribers
-Lost number of likes/followers/subscribers
-Impressions/views
•Measure of Engagement
-Sharing content (re-post, re-tweet, re-pin)
-Comments
-Click-through rate (CTR)
•Measure of Conversion
-Conversion rate
-Purchase frequency
What are the key factors that Facebook uses to rank content on users' newsfeeds
Affinity
Weight
Time decay
past interactions; how much the user likes/comments on the content posted by another entity (friend, or brand)
affinity
different weight for different type of content (e.g. pictures get higher edge weight compared to status update)
weight
older content are less interesting to users
time decay
What is the unique value of advertising on Facebook?
-Facebook allows for a variety of targeting options
not available with display ads (it knows a lot
more about what users like, their preferences,
interests, etc.)
-Ads are shown with friend's endorsement
the process of determining whether a piece of writing is positive, negative or neutral. It's also known as opinion mining, deriving the opinion or attitude of a speaker.
sentiment analysis
How to do Sentiment Analysis?
•Propose list of positive/negative words (based on human survey results).
•Break down string and count how many positive and negative words there are.
•A word can mean different depending on the context.
e.g. "Long"
ØPositive meaning: "The battery life in this car is "long'"
ØNegative meaning: "This journey is "long'"
•May not properly categorize unenthusiastic and more subtle comments like "how could anyone sit through this movie?"
•It is hard to identify sarcasm
-status, reputation among friends, helping others, etc.
-e.g. sharing a funny/useful video with friends, having elite status on Yelp
intrinsic motivations
-Tangible incentives such as monetary rewards or free products
-e.g. Ford Fiesta campaign
extrinsic motivations
How to motive customers to share WoM?
•Just ask for reviews
•Offer incentives
-e.g. elite status (Yelp), contests, coupons and discounts
•Make the review process easy and mobile friendly
•Make the content easy to share
What makes mobile unique? How is mobile different from desktop?
•Omnipresence
-Always carried and always on.
•Location awareness
-Location provides both proximity data and contextual information.
•Built-in payment system
-Easily purchase at offline stores
Mobile web design considerations
-Smaller screen
-Difficult clicking
-Difficult typing
-Slow load time
Mobile Advertising considerations
Mobile Search Ads
•Mobile specific keyword
-Shorter keywords, more spelling errors
•Ad copy
-Call to action
-Ad extensions (locations, call button)
•CPC bids for mobile ads?
•a location-based service that sends promotional messages to smartphone users who enter a defined geographic area such as a hotel, a mall, or a conference center.
geofencing
•small, often inexpensive devices that use Bluetooth to enable more accurate location within a narrow range than GPS, and Wi-Fi proximity.
beacons
Geo Fencing vs. Beacons
•Geo-fencingis optimized for larger and outdoor locations, between 50 and 50,000 meters while beaconshave a maximum range of 30 meters and are better used indoors.
a targeting technique used to reach and engage consumers when they are in or around a target competitor location
geo-conquesting:
•Black hat vs. White hat
•White hat email marketing obtains email addresses directly from consumers with their permission to send them content.
-This content is valuable to consumers (e.g. product information, specials)
•Avoid black hat email techniques to obtain email list (e.g. scrape the web, purchase the list)
-mostly spams
•Opt-in vs. opt-out?
-Email sign-up checkbox is unchecked (opt-in) or checked by default (opt-out)
•Single opt-in vs. Double opt-in
-Double email opt-in sign-up requires that a user confirm that he or she has actively joined your email list (email confirmation)
-This process eliminates many of the "bad" email addresses that get entered into a system (e.g. typos, incorrect email)
-It attracts a higher proportion of engaged consumers but the firm will miss some opportunities.
How to measure success of email marketing
•Open Rate
-How many successfully delivered campaigns were opened by subscribers
•Click-Through Rate (CTR)
-A 'click' means that someone has clicked on one of the URL links in the email.
•Click-To-Open Rate (CTOR)
-Compares the number of people that opened the email to the number that actually clicked.
-Measures the performance of the content of the email.
•Conversion Rate
•Average order value
•List Churn (unsubscribe)
•Hard bounce & Soft bounce
-A hard bounce indicates the email address is fake or does not exist.
-Soft bounces typically indicate the email in-box is full.
How to manage requests for email unsubscribe?
•Email marketers should always comply immediately with unsubscribe requests
What is a triggered email?
•Automated emails that are triggered based on specific events, such as an action taken (or not) by a website visitor.
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