Digital Marketing for Business Research ppt

Digital Marketing

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Chapter 8
Campaign planning for digital
media
Part 3
Digital marketing:
implementation and practice
DIGITAL MARKETING
STRATEGY, IMPLEMENTATION AND PRACTICE
Seventh Edition

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Chapter 8 Campaign planning for
digital media
Main topics
•The characteristics of digital
media
•Goal setting
•Campaign insight
•Segmentation and targeting
•Offer, message development
and creative
•Budgeting
•Integrations
Case study: Facebook –a Titan of the digital age

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The characteristics of digital media
•From push to pull
•Interactive dialogues
•From one-to many to one-to -some and one-to-one
•From one-to many to many-to-many communications
•From lean back to lean forward
•Medium changes, advertising standards
•Increase in communications
•Integration
•Timing of campaign

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Figure 8.1 The differences between one-to-many and one-to-
one communication using the Internet [organisation(O)
communicating a message (M) to customers (C)]

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Figure 8.2 The communication model of
Schramm (1955) applied to the internet

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Step1: Goal setting
Terminology for measuring digital campaigns

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Conversion rates

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Bounce rate, ROI and ROAS
Return on advertising spend (ROAS):

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Figure 8.4 An example of the effectiveness
measures for an online ad campaign

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Multichannel marketing goals
Goals must be SMART (Specific, Measurable,
Actionable, Relevant, and Time-related)
•achieve 20 per cent of sales received in the
call centreas a result of website visits;
•achieve 20 per cent of online sales in
response to offline adverts;
•increase average amount spent in store for
every active site visitor from £3 to £4;
•reduce contact-centrephone enquiries by
15 per cent by providing online customer
services.

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Figure 8.5 Conversion marketing approach to
objective setting for web communications

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Campaign response mechanism
Online response mechanism

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Timeline of Hashtags
August 2007 Hashtags first proposed for use on Twitter;
July 2009 Twitter officially embraces the hashtag linking to a list of all
Tweets for anything proceeded by #;
January 2011 Instagram adds hashtag support;
Spring 2011 Twitter plays a role in the civil unrest of the Arab Spring;
#Bahrain becomes one of the most used hashtags of all
time;
October 2011 Google+ begins automatically linking all hashtags in posts;
January 2013 Half of Superbowl ads include a hashtag;
June 2013 Facebook begins supporting hashtags;
October 2013 Celebrity use of Twitter for ads (discussed in Chapter 3);
the Advertising Standards Authority (UK) and the Federal
Trade Commission (USA) state that adverts made via a
celebrity’s Twitter page should incorporate the hashtag
‘#ad’ or other indication of a commercial arrangement.

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Hashtags: What is it and how to use it?
Reading (20 minutes)
Hashtag search site

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Step 2 Campaign insight
Customer insight for digital marketing campaigns
•Site audience
•Online buying behaviour
•Customer media
consumption
•Customer search behaviour
•Competitor campaign activity
•Competitor performance

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Step 3 Segmentation and targeting
Targeting variable Examples of online targeting attributes
1 Relationship with company New contacts (prospects who haven’t purchased), ‘nursery’ (new
customers), existing customers, lapsed customers
2 Demographic segmentation B2C: age, gender, social group, geographic location
B2B: company size, industry served, individual members of decision-
making unit
3 Psychographic of attitudinal segmentation Attitudes to risk and value when buying, e.g. early adopter, brand
loyal or price conscious
4 Value Assessment of current or historical value and future value
5 Lifecycle stage Position in lifecycle, related to value and behaviour, i.e. time since
initial registration, number of products purchased, categories
purchased in
6 Behaviour Search term entered into search engine; interaction with content in
websites or emails; responsiveness to different types of offers
(promotion or product type); responsiveness to campaigns in different
channels (channel preference); purchase history in product categories
including recency, frequency and monetary value (Chapter 6)

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Relationship with companysegmentation
•Campaigns will often be intended to target new
contacts or existing contacts. But remember, some
communications –such as e-newsletters and email
campaigns –will reach both. Marketers have to
consider whether it will be cost-effective to have
separate communications for new, existing and
lapsed contacts –or to target each of these groups in
the same communications but using different content
aimed at each. When visitors click through to your
website from online and offline campaigns, copy
should be presented that recognisesthe relationship
or, again, provides a range of content to recognise
each different relationship.

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Demographic segmentation
•This is typically based on age, gender or social
group. Online demographics are often used as the
basis for sites to purchase display advertising or for
renting email lists. Demographics can also be used to
limit or focus who pay-per-click search ads are
displayed to.

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Psychographic or attitudinal segmentation
•This includes attitudes to risk and value when buying
–e.g. early adopter, brand loyal or price conscious. It
is less straightforward to target on these attributes of
a consumer since it is easier to buy media based on
demographic breakdown. However, certain sites may
be more suitable for reaching a particular
psychographic audience. The psychographic
characteristics of the audience are still an important
part of the brief, to help develop particular messages.
It is possible to collect attitudinal information on a site
and add it to the customer profile.

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Value segmentation
•The higher-value customers (indicated by higher
average order value and higher modelled customer
lifetime values) will often warrant separate
communications with different offers. Sometimes
digital channels are not the best approach for these
customers –relationship managers will want direct
contact with their most valuable customers, while
digital channels are used to communicate more cost-
effectively with lower-value customers. It is also worth
considering reducing the frequency of emails to this
audience.

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Lifecycle stage segmentation
•This is very useful where customers follow a
particular sequence in buying or using a service, such
as online grocery shopping or online banking. As
explained in Chapter 6, automated, event-triggered
email marketing can be developed for this audience.
For example, online bank First Direct™ uses a six-
month welcome strategy based on email and direct
mail communications. For other campaigns, the
status of a customer can be used for targeting –for
example, not purchased nor used service, purchased
once, purchased more than five times and active,
purchased more than five times and inactive, etc.

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Behavior segmentation
•Behaviouraltargeting is one of the big opportunities
provided by digital marketing. It involves assessing
customers’ past actions in following links, reading
content, using online services or buying products,
and then follows up on these with a more relevant
message based on the propensity to act estimated on
the previous action.

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Lastminute.com’sbehaviour segmentation
•Pay-per-click search engine marketing makes targeting possible
according to the type of keyphrasetyped when a potential customer
searches for information. A relevant ad specific to a holiday destination
the prospect is looking for –e.g. ‘Hotel New York’ –can then be shown.
•Display advertising makes behaviouraltargeting possible since cookies
can be used to track visitors across a site or between sites and display
relevant ads. If a site user visits the travel section of a newspaper site,
then the ad about ‘lastminute’ can be served as they visit other content
on this site, or potentially on other sites.
•Email marketing can be targeted based on customer preferences
indicated by links they have clicked on. For example, if a user has
clicked a link on a holiday in North America, then a targeted email can
be delivered relevant to this product or promotion. More sophisticated
analysis based on RFM (Recency, Frequency and Monetary value)
analysis (Chapter 6) can also be used.

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Options for targeting
1.Targeting using search marketing. Targeting via intent or the
types of keywords people search on as they look for products,
information or experiences.
2.Targeting using display advertising. As with targeting using
traditional publications, targeting is possible using audience
composition of different websites.
3.Targeting using social media. Each main social media
platform offers opportunities for granular targeting, as shown in
Figure 8.8 for Facebook. Similarly, LinkedIn enables targeting
of LinkedIn members by location, company type and size, role,
seniority and group membership.
4.Targeting using affiliate marketing. This will use a
combination of search, display and social media techniques.

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Step 4 Offer message development
and creative
Content marketing
Source : SmartInsights.com (with permission)

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Activity
Review a company’s use of different types of content
support marketing
Source: SmartInsights.com (with permission)

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Figure 8.10 Options for the online vs offline
communications mix: (a) online>offline, (b)
similar online and offline, (c) offline>online

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Set 5 Budgeting and selecting the digital
media mix
Level of investment
–Econometric modelling -A quantitative technique to
evaluate the past influence or predict the future influence on
a dependent variable (typically sales in a marketing context)
of independent variables, which may include product, price,
promotions and the level and mix of media investments.
Drinks

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Direct response options: are clear calls to action,
•Use this coupon at the counter;
•Follow the link below;
•Contact us immediately by calling this number;
•Subscribe to our monthly newsletter;
•Share an image/article/ad with your friends;
•Download a free trial/beta version of the product;
•Sign up for a mailing list;
•Buy now and receive a discount, etc.
Set 5 Budgeting and selecting the digital
media mix -Selecting the right mix

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Figure 8.11 Recommendations of the mix of
investment in digital media for direct and brand
response campaigns
Source: Zenith Media (www.zenithmedia.com)

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B2C Marketing communications (on-and offline)
Source: Zenith Media (www.zenithmedia.com)

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Figure 8.12 Examples of different referrers
contributing to a sale for a car rental company

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Figure 8.13 Example of different referrers
contributing to a social media campaign

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Figure 8.14 Examples of the referring mix
for an airline
Source: Lee (2010)

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Set 5 Budgeting and selecting the digital media mix -
Levels of investments in digital assets
Source : www.smartinsights.com/conversion-model-spreadsheets
click-through rate
cost-per-thousand
cost-per-click
Overall budget=100,000

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Step 6 Integration into overall media
schedule or plan
Key activities:
•Branding and messaging
•Varying the offer
•Frequency and interval of communications
•Sequencing of communications
•Optimising timing

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Figure 8.17 Integration of different
communication tools through time

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Case study Facebook –a Titan of the
digital age
Questions:
1.As an investor in a social network such as Facebook, which
financial and customer-related metrics would you use to
assess and benchmark the current business success and
future growth?
2.Complete a situation analysis for Facebook focusing in an
assessment of the main business risks that could damage the
future growth potential of the social network
3.Imaging you are Facebook’s marketing director. Suggest a
marketing strategy for the next 18 months based on your
answers to question 2.