Internet marketing
Online Marketing
Internet marketing, also referred to as i-marketing, web-marketing, online marketing or e-Marketing, is the marketing of products or services over the Internet.
Watch out: Internet-marketing is NOT identical to Online-Marketing on top of the internet, Online Marketing also uses the following channels Intranet
Extranet (for example closed user group with suppliers or customers)
Mobile devices
Definition
Online Marketing is the adaptation of all marketing tools in online media
Current focus is communication and distribution
However, Online Marketing is getting more and more important
for pricing and product policy as well
Online Marketing has several sub-disciplines!!!
Sub-Disciplines of Online Marketing
Online-Advertising/Display Ads
Affiliate Marketing
SEO & SEA/SEM
Email-Marketing
Social Media Marketing
Website Marketing
Online Advertising = Display Ads
In the broadest sense Display
Advertising means „banner ads“
These banners can consist of static or animated images
They may also include interactive
media like audio or video elements
Display Ads
Rectangular form of advertising that appears on a website and are
hyperlinked to the website of the advertiser
Banners can be distinguished by
Size
Interaction
Functionality potential
SEM
Search Engine Marketing:
Includes all Marketing activities which optimize the search engine results for a particular website
It‘s a key tool of all Online Marketing activities
Two sub-categories
SEA (Search Engine Advertising)
SEO (Search Engine Optimization)
SEM Basics
A search engine is an index-based software that uses specific programs (so-called CRAWLERS)
Crawlers „search“ through the internet for something new or updated
SEO Basics
2 Step Approach
Step 1: On page – mostly content
Step 2: Off page – mostly links
E-Mail Marketing
One of the oldest form of Online Marketing
Comparable to classical Direct Marketing (mailings, leaflets)
Online equivalent to offline mailings
Consumers receive a personalized email to create attention for current activities (e.g. Amazon)
Push approach: detailed targeting of audience to minimize waste circulation
Social Media Marketing
Social Media Marketing is one of the newest forms of OM
Social Media Marketing (SMM) or Social Media Optimization (SMO) is a sub-discipline of OM via the usage of Social Media channels
It‘s very much on the uprise
However, proven tactics to improve sales are rare
Social Media Marketing
It refers to activities, practices and behaviours among „communities“ of people
„communities“ gather online to share information, knowledge, and opinions using conversational media
Conversational media are web-based apps that make it possible to create and easily transmit content in the form of words, pictures, videos, and audios
Affiliate Marketing
Definition
Is a transaction on a commission basis
Is a performance-based marketing in which
a business rewards one or more affiliates
for each visitor or customer
brought by the affiliate‘s own marketing efforts
Advantages of Online-Marketing
Allows precise targeting of target group
Display ads profiled to specific user group
Re-targeting: Online display ads are only shown to users who have already been on the company site
History of Affiliate Marketing
Legend has ist….
Jeff Bezos, founder and CEO of Amazon chatted with a woman at a cocktail party.
She got recently divorced and had started a website about divorce
She also wanted to sell books about about divorce on her website
So Bezos had the idea of having the woman link her site to Amazon.com
She would then receive a commission on the book sales 1997 – Amazon gets serious:
1997 Amazon submitted a patent on a essential components of an affiliate program
This was before most affiliate programs but…
not before PC Flowers & Gifts.com and ist founder W. J. Tobin
Which means that Amazon did not pioneer by popularize the idea
Affiliate Marketing
Definition
Is a transaction on a commission basis
Process:
A website owner (e.g. a blogger) provides advertising space on his website (website owner: PUBLISHER/AFFILIATE)
The website owner offers this space to a company (or an organization) who wants to sell products or services (company: MERCHANT/ADVERTISER)
By placing the links of the partners on their webpages they pass on the traffic to the advertiser‘s webpage
Some companies have a huge affiliate network at their disposal which guarantees them a constant flow of traffic
Who are the parnters?
How does it work?
Provision only kicks in if the link was successful
Provision models:
Cost per Click (CPC): provision paid when customer clicks on link
Cost per Lead (CPL): provision paid when customer contacts advertiser
Cost per Sales (CPS): provision paid when customer makes a purchase (also: Cost per Order/CPO or acquisition: CPA)
Definition: Affiliate Networks
Offer a platform
They connect registered advertisers with registered publishers
Affiliate Networks are:
Zanox, TradeDoubler, Clickbooth and LinkShare
One ot the biggest networks is Affilinet
Future of Affiliate Marketing
Trend #1: MOBILE
Mobile Commerce is an unstoppable force
30% of traffic, 15% of orders from mobile devices (ShareASale)
Expert estimate that sales generated throug mobile purchases will top $100 billion by 2017
Affiliate marketing has to be adopted to smartphones and tablets
Challenges:
secure checkouts
better user interfaces
support for the constantly evolving mobile platforms
Trend #2: CONTENT
Content marketing will continue to grow in affiliate marketing
High-quality content is beneficial not only for the search engine rankings, but also with consumers (traffic, conversion rate)
Challanges:
Increase spendings on content marketing
Affiliate needs to find SEO relevant content
This will lead to more NICHE publishers in affiliate networks
More affiliates have to be managed!
Trend #3: GLOBAL EXPANSION
Prediction for 2015: global ecommerce to reach over $1.5 trillion
European and US try to break into each others affiliate markets
Much of the growth is fueled by Asian consumers
Challenges will be:
Differences in regulation
Different agency/network landscape
Attribution from country to country
Trend #4: LUXURY BRANDS
People spend more time and money engaging with luxury brands online
Affiliate networks report strong growth in luxury niches
Luxury brands are protective of their image and will look for affiliate marketers to offer a specialized set of criteria for their niche
Trend #5: ATTRIBUTION
More merchants develop a system of attribution they use internally to evaluate which partnerships are creating value and which don‘t
More merchants develop a system of attribution they use internally to evaluate which partnerships are creating value and which don‘t
The attribution systems are getting more complex:
Multi-touch or Time-decay attribution
The last click before adding something to the cart?
The last click before the purchase
Last click? First click? Multi-click?
Attribution systems have to make sure the provision gets paid to the right affiliate!