The Digital Gateway Session 1 An Introduction to Digital Media & Conducting Digital Campaigns

Learning Outcomes At the end of this session, students should be able to; Define and explain the digital communication mix Analyse how digital and traditional marketing compare Discuss how digital campaigns can offer marketers more creative, flexible and responsive opportunities Explain the principles of digital marketing campaigns

Digital Definitions Digital Media: “Communications are facilitated through content and interactive services delivered by different digital technology platforms” Digital Marketing: “The application of the Internet and related digital technologies in conjunction with traditional communications to achieve marketing objectives” Multichannel marketing: “customer communications and product distribution are supported by a combination of digital and traditional channels at different point sin the buying cycle” Chaffey and Ellis-Chadwick, 2012

Evolution of Digital Media 1991 First website 1994 Amazon Yahoo 1995 Yahoo! eBay 1996 Hotmail Google 1998 Pay Per Click 1999 Blogging MySpace 2001 Wikipedia Dotcom boom 2003 Skype, VoIP 2004 Facebook Delicious Flickr 2005 YouTube 2006 Twitter 2007 BBC iPlayer 2009 Foursquare 2010 Pinterest 2011 Google Microsoft Social 2013 Vine

The Changing Marketing Environment Fragmenting Media Diversity and complexity of choice Changing landscape e.g. declining press circulation Accountability Role of marketing Corporate Social Responsibility Proliferation of digital media, e.g. new social media channels Use of technology, e.g. CRM, printing, mass customisation Marketing Ownership of marketing issues (website – IT?)

The Stages in Online Adoption Generation 1 = Website is a single static page Generation 2 = Website is a Static brochure Generation 3 = Website with more info and moving images (broadband available) Generation 4 = Order Placing website Generation 5 = Basic E- commerce website, limited functionality Generation 6 = = E- commerce website with integrated order processing Generation 7 = Fully integrated website with user generated reviews, online customer service Generation 8 = Fully responsive and integrated website with user generated reviews, online customer service Generation 9 = App with enhanced features inc reminders, one click ordering

Differences Between Traditional and Digital Media Chaffey & Ellis-Chadwick, 2012

Characteristics of Interactive Communications From ‘push’ to ‘pull’ From monologue to dialogue 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’ The medium changes the nature of standard marketing communications tools such as advertising Increased communications with intermediaries 8 Chaffey & Ellis-Chadwick, 2012

Growth in Digital Media In 2002 less than £200 million was spent on UK internet advertising – 10 years later, digital advertising spend has crossed the £5 billion mark In 2012 digital advertising increased by 12.5% on 2011 with mobile now accounting for 9.7% of all digital advertising spend compared to only 1.1% in While, display advertising representing 24% share of digital ad spend in Paid-for search marketing increased 14.5% from 2011 into IABUK.net, 2013

Reasons for Increased Significance of Digital in the Media Mix Extended reach Flattening frequency distribution (if audience viewing TV ads are exposed to too many, it may decrease returns) To reach different kinds of audiences To provide unique advantages in stressing different benefits based on different characteristics of each medium To add gross impressions if the other media is cost efficient Reinforce message by using different creative stimuli

Using Digital Media to Support Business Objectives Reach Build awareness on other sites and in offline media and drive to web presence Act Engage audience with brand on its website or other online presence Convert Achieve conversion to marketing goals such as fans, leads or sales on web presences and offline Engage Build customer and fan relationships through time to achieve retention goals Smartinsights.com, 2010, cited in Chaffey & Ellis-Chadwick, 2012

Key Challenges of Digital Communications Media Complexity – some of the key benefits such as personalisation, testing and dynamic variations can take time and sometimes specialist expertise to configure Responding to competitors – resource must be utilised to monitor online competitor activity Responding to changes in technology – resource is required to ensure organisation is able to harness and use latest digital technology for marketing campaigns. Cost – while digital media is generally cheaper than traditional media, need to consider other resource costs. Attention – engaging with audiences is an increasing challenge due to marketing clutter

Three Key Online Media Types Paid Media Earned Media Owned Media Advertising Paid Search Display Ads Affiliate Marketing Digital signage Partner Networks Publisher Editorial Influencer outreach Word-of-mouth Social networks Digital Properties Website(s) Blogs Mobile apps Social presense Paid Placements Atomisation of content into ads Atomisation of conversions Chaffey & Ellis-Chadwick, 2012

Principles of Digital Marketing Campaigns Campaign (customer and market) insight – which data about customer and competitor behaviour is available to inform our decision? Goal setting and tracking – Which specific goals should be set for online campaigns and how do we measure success? What response mechanisms will be most effective? Segmentation and Targeting – how can we target and reach our different audiences? Offer message and development – how do we specify our offer and key message? Budgeting and selecting the digital media mix – how should we set the budget and invest in different forms of digital media? Integration into overall media schedule and plan – how should we plan the media schedule which incorporates different waves of online and offline communications? Chaffey & Ellis-Chadwick, 2012

Customer and Market Insights for Digital Campaigns Examples of the types of customer and market insight from third-party research sources include: Site audience reach and composition – breakdown of audiences on different sites (Nielsen Netratings, Comscore, Hitwise) Online buyer behaviour and preferences Customer media consumption – usage of different offline and online media for different audiences (Hitwise) Customer search behaviour – keywords research (Google Adwords tool) Competitor campaign activity – current advertising campaign and previous seasonal campaigns (Thomson Intermedia) Competitor performance – reach and composition of competitor sites (Hitwise)

Goals of Digital Marketing Campaigns Traffic building goals –Use online media and offline promotion to drive traffic to a website which convert to required outcomes (sales, leads etc.) Conversion and engagement goals –Use on-site communications to deliver an effective, relevant message to the visitor which helps shape customer perceptions or achieve required marketing outcome. Third-party site reach goals –Reach, influence and engage with prospective customers on third- party media sites Multichannel marketing goals –Integrate all communications channels to help achieve multichannel marketing objectives by supporting mix-mode buying Chaffey & Ellis-Chadwick, 2012

AreaBenefits to customers & businesses Example SellB2B and B2C sales tools. Customers can buy in new, convenient ways. Amazon, eBay, MISCO, ServeHelping the customer in new ways.Google, FAQs on YouTube. SaveCreating cost reductions in sales or servicing. Comparison sites such as Kelkoo or comparethemarket. SpeakCommunications tool – Seeking and sharing information in a new way. Forums e.g. LinkedIn groups SizzleWebsite magic, brand-building and entertainment. YouTube, virals, games. Adapted from Chaffey and Ellis Chadwick, 2012 Goals of Digital Marketing – The 5Ss

Digital Marketing Campaign Options Brand Building –Banner advertising –Site sponsorship –Viral campaigns –Online PR –Strategic channel partnerships Research & satisfaction measurement –Personalised with online incentives Relationship Building –Personalised marketing –Mobile marketing Lead-Generation – campaigns to new & existing lists –Affiliate marketing –Strategic channel partnerships –Online promotions Sales - online & offline –Strategic channel partnerships –Affiliate marketing (via high traffic sites) –Personalised marketing –Online promotions

Campaign Response Mechanisms Digital Media Creative Home Page Microsite/landing page Company social media presence Personal (chat or call back) Offline: post, phone, store Chaffey & Ellis-Chadwick, 2012

Targeting and Segmentation Approaches for a Digital Campaign Relationship with company – Prospects, existing customers, lapsed customers Demographic segmentation – B2C: Age, gender, geographic location. B2B: company size, industry served Psychographic or attitudinal segmentation – attitudes to risk and value when buying (early adopter, brand loyal) Value – current or historical and future value Lifecycle stage – position in lifecycle, related to value and behaviour Behaviour – search terms used, responsiveness to different types of offers, channel preference. Chaffey & Ellis-Chadwick, 2012

The 6 Key Digital Media Channels 1. Search Marketing Search engine optimisation (SEO) Paid search (PPC) Paid for inclusion feeds 2. Online PR Publisher outreach Community participation Media alerting Brand protection 3. Online Partnership Affiliate marketing Sponsorship Co-branding Link building Widget marketing Offline communications 6. Direct mail 7. Exhibitions 8. Merchandising 9. Packaging 10. Word-of-mouth Offline communications 1.Advertising 2.Personal selling 3.PR 4.Sales Promotion 5.Sponsorship 4. Interactive Ads Site-specific media buys Ad networks Contra-deals Sponsorship Behavioural targeting 5. Opt-in House list Cold (rented lists) Co-branded Ads in third party newsletters 6. Social media marketing Audience participation Managing social presence Viral campaigns Customer feedback Websites & Social Presences Offline CommunicationsOnline Communications Chaffey & Ellis- Chadwick, 2012

Selecting Digital Media Mix AreaIssues QualityAttention-grabbing capability Stimulating emotions Information content and detail Clutter TimeShort lead time Long exposure time FlexibilityAppeal to multiple senses Personalisation Interactivity CoverageSelectivity Pass-along audience Frequency/repeat exposure Average media reach CostDevelopment/production cost Average media delivery cost Coulter and Starkis, 2005 (cited in Chaffey, 2012 )

Offer, Message Development and Creative Every digtial marketing communication should have a blend of 5 elements: 1.Idea forming – generating ideas in the customer’s mind (brand promise) 2.Relationship building – affinity, emotional bonding etc. 3.Sales activation – stimulating trial or purchase 4.Help – providing service and assistance to the customer relevant to their needs 5.Product experience – using an interacting with the brand’s deliverables. Jenkinson (2003), cited in Chaffey & Ellis-Chadwick (2012)

How can Online Value be Delivered? VALUE FROM CUSTOMERS VALUE FROM COMPANY Cost I want the best deal Convenience Save me time Be faster & simpler Content Help me decide Make my life easier Customisation Tailor it for me Personalise my recommendations Choice Fit my unique needs Making the right choice Community I want to belong Sell Reach during buy-mode Sense and Respond to increase lifetime value Speak Research needs Inform and build relationships through Serve Provide online content and services Save Sell and service more efficiently Sizzle Differentiate our brand

Test Your Understanding Identify the current owned, earned and paid for digital media utilised for an organisation of your choice. How effective is it? What could the organisation do to improve the effectiveness?

Bibliography Brassington, F and Pettitt, S (2008) ‘Principles of Marketing’, Fourth Edition, Prentice Hall Chaffey, D and Ellis-Chadwick, F (2012) “Digital Marketing: Strategy, Implementation and Practice”, Fifth Edition, Prentice Hall. IAB UK (2013) ‘UK digital ad spend up 12.5% to almost £5.5bn’, IABUK.net, [accessed 11 April 13] Gay, R, Charlesworth, A and Esen, R (2007) ‘Online Marketing – A Customer-led Approach’, First Edition, Oxford University Press Fill, C (2013) ‘Marketing Communications’, Sixth Edition, Pearson. Kotler, P and Armstrong, G (2008), “Principles of Marketing”, Twelfth edition, Pearson