Download Direct Marketing Ch16 S10

Welcome to Direct
Marketing
E-Communications
Chapter 16
Online Advertising and e-mail
Growth of E-Communications
• Online advertising growing
• Search engine advertising now exceeds display
advertising
Growth of E-Communications
• Online advertising still small compared to TV,
newspapers, direct mail, . . . , but growing
steadily, likely to increasingly draw from
traditional advertising.
• Highly customizable and inexpensive method to
acquire customers, inform them, and gain loyalty
• Traditional marketers increasingly using Internet
to build one to one relationships with prospects
and customers
• Can target message to individual users based on
geography, content, . . .
Using E-Communications to Build
Customer Perceptions
• Awareness, desire to be part of a larger group, and
emotion are used to build brands
• Because the Internet is one to one, dialogue-enabling,
and permits rational, considered decisions it creates
synergy between brand building and direct
communications
• Direct marketing reinforces traditional brand
advertising and turns positive perceptions into action
[Ex. 16-1, p. 364]
• Offline advertising is equally important to growing
online
Banner Ads and Other Formats
• Initial success of banner ads due to novelty has
worn off
• Variety of banner ad types
• Typical web page is 90/10 editorial/advertising
• Typical magazine is 50/50, TV is 60/40
• Static Banner Ads
– Fixed images on a page
– Easy to create, Small file size
– Unexciting, lower response rates
Banner Ads and Other Formats
Animated Banner Ads
– Multiple frames – give impression of movement
– Higher response - Click Through Rates (CTR’s)
– Format
• Teaser
• Copy or graphic platform
• Call to action
– Not all web sites or users can access
• Server software can identify and direct
compatible version of ad
Banner Ads and Other Formats
Interactive Banner Ads
– Allow users fill out forms, answer surveys,
play games, complete orders
– Allows user to act without leaving website
– Level of interactivity and complexity
dictates server support needed
– Higher interactivity yields better response
rates and orders
– Rich media ad units growing
Banner Ad Success Borrows from
Direct Response
• Banner ads like direct response ads rather than
image and awareness ads
• Testing and measurement level much greater
• Can be tested much quicker and easier
• Burnout rates much higher though than
traditional ads
• Ads can rotated on site or be pulled and
substituted easily
Banner Ad Success Borrows from
Direct Response
Creating Responsive Banner Ads
• Keep banner ads simple. Show people, use
clear qualifying language, create a sense of
urgency, and include a strong call to action
• Ads with “Click Here” consistently pull better
than banner ads without
Planning Banner Ad Campaign
Objectives
• Establish a goal for a banner ad campaign by
specifying how many sales, leads, members,
subscriber, downloads, completed surveys, etc.
are expected for the program
• Test banner ads to learn which pull best and
which don’t pull at all
Planning Banner Ad Campaign Objectives
• Some sites work better than others and small
adjustments in copy, color, or thee offer can
greatly increase CTRs. Test results will be almost
instantaneous.
• One goal is to drive the highest number of
qualified CTRs. Banner ad media weight (e.g.,
total impressions) will impact the number of
CTRs, as will technology issues (e.g., too many
hits for the site server or Internet Service Provider
(ISP) to manage
• Cost per action – ultimate measure
Media Planning and Testing
• Target banner ads by seeking affinities
between the ad’s message and a website’s
demographics/psychographics with those of
the target audience
Media Planning and Testing
• Web Ad Networks
– Simplify Web media planning and buying by
aggregating small, medium, or large Web
sites
– Yield reasonable amount of unduplicated
reach with single media buy
– Hard to request specific sites
• “Run of network” or “run of category”
– Not all ad networks are the same - buy wisely
Media Planning and Testing
Banner Ad Analytics
• Measures of
– # ads served (impressions)
– # ads clicked through
– Dollar volume
• Measured by
– Usage at the ad server
– Consumer panels
Media Planning and Testing
Banner Ad Analytics
• Valuable information in log files on server
– Including time and date of request
– Pages, files requested
– More on p.374
• Response curve steep – possible to gauge
success of ad within hours
Using E-Mail in Internet Direct
Marketing
• E-mail promotions have virtually no postage or
printing costs and development time
can be lightening fast
• A complete e-mail campaign (list rental, creative
development, fulfillment, etc.) can be conducted
for pennies per contact and generate high
response rates, CTRs of 10 – 20% [see p. 375]
• E-mail best as part of multichannel media plan
Using E-Mail in Internet Direct
Marketing
• Rented Opt-In Lists
– Find out how names compiled
– Want to be opt-in based
– Use a reputable online list broker or
permission list
– Double opt-in preferred (user permission
that is then confirmed)
Using E-Mail in Internet Direct Marketing
Creating an Online Database
• Best way to ensure that names mailed have given
permission
• Most responsive
• Inform customers or visitor to Web site how
intend to use submitted e-mail addresses
• Best to set default as not opt-in
– list will be smaller, but better qualified
• Follow up on current list to ensure they want to
be contacted
Creating E-mail Campaigns
• Online customers respond very quickly or not at all
• Creating good email takes skill and experience
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Format (HTML)
From:
Subject line
Introductory or lead copy
Length of body copy and content
Calls to action
Offer
Deadlines
Links to email
Unsubscribe message
Creating E-mail Campaigns
• Tools and Techniques of Direct Marketing Apply to
E-Mail
– Indentified target market
– Email list and address to reach that market
– Appropriate offers to the targeted audience
– Multiple calls to action
– Ways to respond targeted group will use
– Emails do not close the sale the Web site does
Creating E-mail Campaigns
• Writing Effective E-Mails
– Message tailored to audience
– Copy relevant, short, concise
– Informal warm tone, but consistent with brand, . . .
[P. 379]
• In e-mails, the subject and first three lines of the
message are the most important
• Repeat a strong Call-to-Action to motivate readers to
respond
Creating E-mail Campaigns
• Writing Effective Subject Lines
– Short
– DO NOT USE ALL CAPS
– Avoid words commonly associated with SPAM
• Targeting and Personalizing Can Triple E-Mail Results
– Response rates double with 3-6 personalized
elements, triple with 7 or more
– Data attributes for Personalization
• Name
• Interests
• Gender, . . .
Creating E-mail Campaigns
• E-Mail Frequency
– Easy to overuse and wear out audience
– Test, Test, Test, see p. 381
• E-Mail Newsletters
– Good way to communicate and build databases
– Part of CRM
• E-Mail Analytics
– Users must actively respond
– Open rate
– Deletion rate
Managing Unsolicited Commercial EMail
• Actions can take to increase chances of not
having email filtered out
• The Can Spam Act of 2003, pp. 382-383
• Beyond Can Spam
– DMA and Interactive Advertising Bureau
(IAB) have help with how to build a positive
e-mail reputation
E-Communications
• There are two sources of lists for e-mail
programs: “opt-in” lists of users who have
given permission to use their names in this
way, and a website’s own database—the safest
and most responsive way to do online e-mail
programs
The Last Word on E-Mail
• Despite being overused when it is personalized
and targeted, due to its low cost and relatively
high response rate, can be a very effective
direct marketing tool.
Key Points
• Keep Banner Ads Simple
• Test Banner Ads to learn which pull best and don’t
pull at all.
• Establish a goal for a banner ad campaign
• Target banner ads by seeking affinities between ad’s
message and a Web site’s audience.
• E-Mail promotions can be developed quickly and at
low cost.
• E-Mail subject and lead (1st 3) lines most important
• Two sources of lists for e-mail programs – opt in lists
and web sites own database.