Internet marketing: Affiliate Marketing, Online Marketing, Sub-Disciplines of Online Marketing, Online-Advertising/Display Ads, SEO & SEA/SEM, Email-Marketing, Social Media Marketing, Website Marketing ~ MECHTECH GURU

Internet marketing: Affiliate Marketing, Online Marketing, Sub-Disciplines of Online Marketing, Online-Advertising/Display Ads, SEO & SEA/SEM, Email-Marketing, Social Media Marketing, Website Marketing

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

Definition of banners

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?

Affiliate Marketing


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!


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