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บทที่ 6 การโฆษณาออนไลน์ Online Advertisements Agenda 1. Social Networks and Online Communities 2. E-commerce Marketing Concepts 3. E-commerce Marketing Communications 1. Social Networks and Online Communities Social Networks and Online Communities • Internet began as community building technology for scientists, researchers • Early communities limited to bulletin boards, newsgroups • 2002: Mobile Internet devices, blogs, sharing of rich media began new era of social networks • Social networks one of most common Internet activities What Is an Online Social Network? • Online area where people who share common ties can interact • Participants do not necessarily share goals • Portals and social networks: • Moving closer together • Portals adding social network features • Community sites adding portal-like services • Searching • News • E-commerce services Top Social Network Sites, 2013 SOURCE: Based on data from comScore, 2013b. Turning Social Networks into Businesses •Social networks monetizing audiences through advertising •LinkedIn – fees for professional recruiters, premium services •Business use of social networks • Marketing and branding tool • Reaching younger audience than Web sites and e-mail • Listening tool • Monitoring online reputation U.S. Ad Spending on Social Networks 2014 SOURCES: Based on data eMarketer, Inc., 2014h. Social Network Features and Technologies • Profiles • Instant messaging • Friends network • Message boards • Network discovery • Online polling • Games, widgets, apps • Chat • Favorites • Discussion groups • E-mail • Experts online • Storage • Membership management Types of Social Networks and Their • Early social network sites relied on subscriptions. Today Business Models primarily advertising • General communities: • Offer opportunities to interact with general audience organized into general topics • Advertising supported by selling ad space on pages and videos • Practice networks: • Offer focused discussion groups, help and knowledge related to area of shared practice Types of Social Networks and Their Business Models (cont’d) • Interest-based social networks: • Offer focused discussion groups based on shared interest in some specific subject • Usually advertising supported • Affinity communities: • Offer focused discussion and interaction with other people who share same affinity (self or group identification) • Advertising and revenues from sales of products • Sponsored communities: • Created by government, non-profit or for-profit organizations for 2. E-commerce Marketing Concepts The Consumer Decision Process and Supporting Communications Marketing Activities: From Products to Brands The Revolution in Internet Marketing Technologies • Three broad impacts: • Scope of marketing communications broadened • Richness of marketing communications increased • Information intensity of marketplace expanded • Internet marketing technologies: • Web transaction logs • Cookies and Web bugs • Databases, data warehouses, data mining • Advertising networks • Customer relationship management systems Data Mining and Personalizati on SOURCE: Adomavicius and Tuzhilin, 2001b ©2001 IEEE. The Mass Market-Personalization Continuum 3. E-commerce Marketing Communications Online Advertising • Advantages: • Internet is where audience is moving • Ad targeting • Greater opportunities for interactivity • Disadvantages: • Cost versus benefit • How to adequately measure results • Supply of good venues to display ads Online Advertising from 2004– 2016 SOURCES: Based on data from eMarketer, Inc., 2012a, 2012b Forms of Online Advertisements • Display ads (banners, pop-ups) • Rich media (Flash, HTML5, Java, JavaScript, 5% of online ad expenditures. Includes interstitials) • Video ads (linear, non-linear, in-banner, in-text) • Search engine advertising • Social network, blog, and game advertising • Sponsorships • Referrals (affiliate relationship marketing) • E-mail marketing • Online catalogs Online Marketing Metrics: Lexicon • Metrics that focus on success of Web site in achieving audience or market share • According to Laudon and Guercio-Traver (2010), in order to understand the process of attracting prospects to your web property by way of marketing communications and converting them into customers, you will need to become familiar with Web marketing terminology. Driving Shoppers to the Site Impressions • Number of times an advertisement is served. Click-through-rate (CTR) • The percentage of times an advertisement is clicked. Driving Shoppers to the Site Hits • Number of HTTP requests. (Caveat: Hits can be misleading as a measure of Web site activity because a “hit” does not equal a page. A single page may account for several hits if the page contains multiple images or graphics. A single Web site visitor can generate hundreds of hits. For this reason, hits are not an accurate representation of Web traffic or visits, even though they are generally easy to measure; the sheer volume of hits can be huge – and sound impressive – but not be a true measure of activity.) Driving Shoppers to the Site Stickiness • (Duration)Average length of stay at a Web site. Unique Visitors • Number of unique visitors in a period. Loyalty • Measured variously as the number of page views, frequency of single-user visits to the Web site, or percentage of customers who return to the site in a year to make additional purchases. Driving Shoppers to the Site Reach • Percentage of Web site visitors who are potential buyers; or or percentage of total market buyers who buy at the site. Recency • Time elapsed since the last action taken by a buyer; such as Web site visit or purchase. Driving Shoppers to the Site Acquisition Rate • Percentage of visitors who indicate an interest in the Web site’s product by registering or visiting product’s pages. Conversion Rate • Percentage of visitors who become customers. Driving Shoppers to the Site Browse to Buy Ratio • Ratio of items purchased to products viewed. View to Cart Ratio • Ratio of “Add to Cart” clicks to product views. Cart Conversion Rate • Ratio of actual orders to “Add to Cart” clicks. Driving Shoppers to the Site Checkout Conversion Rate • Ratio of actual orders to checkouts started. Abandonment Rate • Percentage of shoppers who begin a shopping cart purchase, but then leave the Web site without completing a purchase (similar to Checkout Conversion Rate). Driving Shoppers to the Site Retention Rate • Percentage of existing customers who continue to buy on a regular basis (similar to Loyalty). Attrition Rate • Percentage of customers who do not return during the next year after making an initial purchase. Email Metrics Open Rate • Percentage of email recipients who open the email and are exposed to the message. Delivery Rate • Percentage of email recipients who received the email. Click-through Rate (Email) • Percentage of email recipients who clicked through to offers. Bounce-back Rate • Percentage of emails that could not be delivered. Unsubscribe Rate • Percentage of recipients who click unsubscribe. Conversion Rate (Email) • Percentage of recipients who actually buy. The Costs of Online Advertising • Cost per thousand (CPM): Advertiser pays for impressions in 1,000 unit lots • Cost per click (CPC): Advertiser pays pre-negotiated fee for each click ad receives • Cost per action (CPA): Advertiser pays pre-negotiated amount only when user performs a specific action • Hybrid: Two or more of the above models used together Search Engine Advertising • Almost 46.5% of online ad spending in 2012 • Types: • Paid inclusion or rank • Inclusion in search results • Sponsored link areas • Keyword advertising • e.g. Google AdWords • Network keyword advertising (context advertising) • e.g. Google AdSense An Online Consumer Purchasing Model Web Site Activity Analysis Click-through Rates by Format 2005–2008 SOURCES: Doubleclick, 2007a, b; eMarketer, Inc., 2007c; author estimates. How Well Does Online Advertising Work? •Ultimately measured by ROI on ad campaign •Highest click-through rates: Search engine ads, Permission e-mail campaigns •Online channels compare favorably with traditional •Most powerful marketing campaigns use multiple channels, including online, catalog, TV, radio, newspapers, stores Comparative Returns on Investment SOURCES: Based on data from eMarketer, Inc. 2010b, Direct Marketing Association (DMA), 2009. E-mail Marketing and the Spam Explosion • Direct e-mail marketing: E-mail sent directly to interested consumers who “opt-in” or have not “optedout” • Spam: Unsolicited commercial e-mail • Spam is exploding out of control—92% of all e-mail purportedly is spam • Efforts to control spam: •Technology (Filtering software) (only partly effective) •Government regulation (CAN-SPAM and state laws) (largely unsuccessful) Question References Electronic Commerce • Copyright © 2015 Pearson Education, Inc. • Copyright © 2012 Pearson Education, Inc. • Copyright © 2011 Pearson Education, Inc. • Copyright © 2007 Pearson Education, Inc.