1. E-commerce 2017 business. technology. society.
13th edition
Chapter 7
Social, Mobile, and Local Marketing

2. Learning Objectives
7.1 Understand the difference between traditional online marketing and the new social- mobile-local marketing platforms and the relationships between social, mobile, and local marketing.
7.2 Understand the social marketing process from fan acquisition to sales and the marketing capabilities of social marketing platforms such as Facebook, Twitter, and Pinterest.
7.3 Identify the key elements of a mobile marketing campaign.
7.4 Understand the capabilities of location-based local marketing.
Slide 3 is a list of textbook LO numbers and statements.

3. Facebook: Putting Social Marketing to Work
Class Discussion
Have you ever made a purchase based on something you have read or seen on Facebook? What was the product and what made you interested?
Are there other ways for Facebook to make a profit from marketers and advertisers?
How does Facebook engage its users differently than “traditional” online marketing?

4. Marketing before 2007
Facebook was a fledgling company limited to college students.
Apple had not yet announced the iPhone.
Online marketing consisted largely of creating a corporate website, buying display ads on Yahoo, purchasing AdWords on Google, and sending .
The primary measure of success was:
how many “eyeballs” (unique visitors) a website produced, and
how many “impressions” a marketing campaign generated. An impression was one ad shown to one person.

5. Introduction to Social, Mobile, and Local Marketing
Introduction of smartphones (iPhone), social networks (Facebook), and local marketing.
New marketing concepts (conversations & engagement)
Multiple online conversations with customers, potential customers, and even critics. The brand is being talked about on the Web and social media (that’s the conversation part).
Marketing your firm and brands requires you to locate, identify, and participate in these conversations.
Social marketing means all things social: listening, discussing, interacting, empathizing, and engaging.
In this sense, social marketing and advertising is not simply a “new ad channel,” but a collection of technology-based tools for communicating with shoppers.

6. The Rapidly Changing Trajectory Of Worldwide Online Ad Spending
Impact of smartphones and tablets
In 2015, for the first time, spending on mobile marketing exceeded that spent on desktop/laptops.

7. U.S. Social, Mobile, And Local Marketing 2015–2018
Today, social, mobile, and local marketing are the fastest growing forms of online marketing.
In 2016, spending on mobile marketing in
the United States was almost triple the amount spent on social marketing.

8. Social, Mobile, and Local Marketing and Advertising
Social marketing and advertising
Social marketing and advertising involves the use of online social networks and communities to build brands and drive sales revenues.
Almost one-third of the world’s population regularly visits social networks.
Social networks offer advertisers all the main advertising formats.
Blogs and online games can also be used for social marketing.

9. Social, Mobile, and Local Marketing and Advertising
Mobile marketing and advertising
Use of mobile platform
Marketing on the mobile platform has exploded and now constitutes over half (56%) of the overall €182 billion spent on online marketing in 2016.
Mobile marketing includes the use of display banner ads, rich media, video, games, , text messaging, in-store messaging, Quick Response (QR) codes, and couponing.
Display ads can be served as a part of a mobile website or inside apps and games.
Facebook is the leader in mobile display ad revenues, followed by Google and Twitter.
Search advertising is also a popular format, and is expected to account for about 44% of mobile ad spending in 2016.

10. Social, Mobile, and Local Marketing and Advertising
The growth of mobile devices has accelerated the growth of local search and purchasing.
New marketing tools like local advertisements on social networks and daily deal sites are also contributing to local marketing growth.
The most common local marketing tools are geotargeting using Google Maps (local stores appearing on a Google map),
Display ads in hyperlocal publications like those created by daily deals, and coupons.

11. Other Online Marketing Strategies
Multi-channel marketing: Message integration
Customer retention strategies
One-to-one marketing (personalization)
Behavioral targeting (interest-based advertising)
Retargeting
Customization and customer co-production
Customer service
FAQs
Real-time customer service chat systems
Automated response systems

12. Figure 7.3: Online Marketing Platforms
Social, mobile, and local digital marketing are self- reinforcing and connected.

13. Figure 7.3: Online Marketing Platforms
Mobile marketing is aimed often at local audiences and is the fastest growing form of online marketing, followed closely by social marketing on social networks. Mobile local is in its infancy but it is also growing far faster than traditional desktop marketing.
When you design a social marketing campaign, you must also consider that your customers will be accessing the campaign using mobile devices, and often they will also be looking for local content.

14. Social Marketing Traditional online marketing goals
Deliver business message to the most consumers and hopefully encourage them to come to your website to buy products and services, or to find out more information.
The more “impressions” (ad views) you get, and the more unique visitors to your site, the better.
Social marketing goals
Encourage consumers to become fans and engage and enter conversations.
Your further objective is to encourage your business’s fans to share their enthusiasm with their friends, and in so doing create a community of fans online.
Strengthen brand by increasing share of online conversation

15. Social Marketing Players
The most popular sites account for over 90% of all social network visits
Facebook, Google+, Twitter, LinkedIn, Pinterest, Instagram, Tumblr
Unique visitors vs. engagement
number of monthly unique visitors is a good measure of market reach.
Engagement measures the amount and intensity of user involvement
Facebook dominates in both measures, accounting for 85% of the total monthly visitor minutes
For a manager of a social marketing campaign, these findings suggest that in terms of reach and engagement, the place to start a social campaign is Facebook.
Dark social – sharing outside of major social networks ( , IM, texts, etc.)

16. Figure 7.4: Engagement at Top Social Networks
Figure 7.4, Page 430.
Visitors spend significantly more time on Facebook than any other social network.
SOURCES: Based on data from comScore, 2015a; comScore, 2015b; Statista.com, 2015; MacMillan and Rusli, 2014; Frommer, 2015.

17. Figure 7.5: The Social Marketing Process
Illustrates a social marketing framework that can be applied to all social, mobile, and local marketing efforts.
Social marketing is different—the objectives and the measures.
fan acquisition, involves using any of a variety of means, from display ads to News Feed and page pop-ups, to attract people to your Facebook page, Twitter feed, or other platform like a web page.
Figure 7.5, Page 431.
The social marketing process has five steps.

18. Figure 7.5: The Social Marketing Process
engagement, which involves using a variety of tools to encourage users to interact with your content and brand located on your Facebook or web pages.
You can think of this as “starting the conversation” around your brand.
You can generate engagement through attractive photos, interesting text content, and blogger reports, with plenty of opportunities for users to express opinions.
Amplification encouraging visitors to share their Likes and comments with their friends.
Figure 7.5, Page 431.
The social marketing process has five steps.

19. Figure 7.5: The Social Marketing Process
Community: a stable group of fans engaged and communicating with one another over a substantial period of time about your brand.
Marketers have a number of tactics to nurture these communities, including inside information on new products, price breaks for loyalty, and free gifts for bringing in new members.
The ultimate goal is to enlarge your firm’s “share of the online conversation.”
The process ends with strengthening the brand and, hopefully, additional sales of products and services.
Ultimately, the point of marketing is to drive sales revenue.
Figure 7.5, Page 431.
The social marketing process has five steps.

20. Facebook Marketing Social density of audience is magnified
Facebook is built to encourage people to reveal as much personal information about themselves as feasible, including activities, behavior, photos, music, movies, purchases, and preferences.
Facebook knows a great deal more about its users than Google does about its users.
Facebook is the world’s largest repository of deeply personal behavioral information on the Internet.
Facebook’s features are built to maximize the connections among people in the form of notifications, tagging, messaging, posting, and sharing.
Social density of audience is magnified
Facebook is largest repository of deeply personal information
Facebook geared to maximizing connections between users

21. Facebook Marketing Tools
Reactions Buttons:
“Like” is the engine of social marketing.
The Reactions buttons give users a chance to share their feelings about content and other objects they are viewing and websites they are visiting.
The ubiquitous Like button also appears on external sites, mobile and social apps, and ads.
These sites are utilizing Facebook’s Like social plug-in, and when you Like something outside of Facebook, it appears on your Timeline, where friends can comment on the activity.
The Like button is one way Facebook knows what other sites you visit.

22. Facebook Marketing Tools
Brand Pages
The purpose of a brand page is to develop fans of the brand by providing users opportunities to interact with the brand through comments, contests, and offerings.
Using social calls to action, such as “Like us on Facebook” and “Share,” brand pages can escape their isolation and make it more easily into users’ social networks, where friends can hear the message.
Brand pages on Facebook typically attract more visitors than a brand’s website.
Brands can get exposure on Facebook either organically or via paid advertisements.
Facebook enables you to choose from a variety of different marketing objectives.

23. Facebook Marketing Tools
News Feed Page Post Ads
The News Feed is the most prominent place for advertisements.
The News Feed is the center of the action for Facebook users and where Facebook users spend most of their time because that is where posts from their friends appear.
Page Post Ads appear in a user’s News Feed along with all of the other posts and status updates that normally appear from friends.
Page Post Ads can contain text, photos, video, and links.
Companies pay to promote or boost Page Post Ads in order to extend their reach.
Right-Hand Column Sidebar Ads
These display ads are located in the right-hand column or sidebar of Facebook pages.

24. Facebook Marketing Tools
Facebook Live
Facebook Live can be used to stream live content that followers can interact with by commenting, liking and sharing.
The video can be saved on a brand’s page and followers can continue to interact with it.
Video Ads/Mobile Ads
In March 2014, Facebook began showing 15-second video autoplay ads.
Facebook video ads have become an increasingly important part of Facebook advertising strategy.
In 2016, over 80% of Facebook ad revenue comes from its mobile ad platform, and it is its fastest growing revenue stream.

25. Facebook Marketing Tools
Facebook Messenger
In April 2016, Facebook began allowing companies to deploy chatbots on Messenger, Facebook’s instant messaging app.
In September 2016, Facebook announced a trial of a Buy button for its Messenger app that enables customers to make payments via Stripe or Paypal to companies advertising on Messenger without having to leave Messenger.
Facebook Exchange (FBX)
a real-time bidding system that allows advertisers to target their ads based on personal information provided by Facebook.
Visitors to third-party websites are marked with a cookie, and can
then be shown ads related to their web browsing when they return to Facebook.

26. Typical Facebook Marketing Campaign
Establish Facebook brand page
Use comment and feedback tools to develop fan comments
Develop a community of users
Encourage brand involvement through video, rich media, contests
Use display ads for other Facebook pages and social search
Display Like button liberally

27. Measuring Facebook Marketing Results
Basic metrics:
Fan acquisition (impressions)
Engagement (conversation rate)
Amplification (reach)
Community
Brand strength/sales
Facebook analytics tools
Facebook Page Insights
Social media management systems (HootSuite)
Analytics providers (Google Analytics, Webtrends)

28. Insight on Technology: Optimizing Social Marketing with Simply Measured
Class Discussion
How do social media analytics help companies identify and attract customers?
What are the challenges in measuring the effectiveness of social marketing campaigns?
What advantages did the Seattle Seahawks find in using Simply Measured’s analytics and tools?

29. The Downside of Social Marketing
Loss of control
Where ads appear in terms of other content
What people say
Posts
Comments
Inaccurate or embarrassing material
In contrast, TV ads maintain near complete control

30. Mobile Marketing
Mobile marketing involves the use of mobile devices (smartphones & tablets) to display banner ads, rich media, video, games, , text messaging, and couponing.
More than 4.3 billion people worldwide are now using mobile phones, while 2.1 billion of these use smartphones.
Devices used multiple times per day
By 2020, retail m-commerce in the EU-5 will account for over 40% of all retail e-commerce.
Challenges: Mobile search
Motivating consumers to click
Raising fees for each click

31. Figure 7.6: The Growth of M-Commerce
Initially, m-commerce was focused primarily on digital goods, such as music, videos, games, and e-books.
Today, however, traditional retail products and travel services are the source of much of the growth in m-commerce.
Increasingly, consumers are using their mobile devices to search for people, places, and things—like restaurants and deals on products they saw in a retail store.
Figure 7.6, Page 460.
M-commerce in the retail and travel industries is expected to grow to over $438 billion by 2020, almost equal to the amount generated by desktop-based “traditional” e-commerce.
SOURCES: Based on data from eMarketer, Inc., 2016i, 2016j, 2016k, 2016l.

32. How People Actually Use Mobile Devices
Average of 3 hours daily on mobile devices
42% entertainment
16% social networks
70% occur in home
Activities are similar to desktop activities
Rapidly growing smartphone m-commerce sales
Mobile devices currently used more for communicating and entertainment over shopping and buying

33. Figure 7.7: How People Use Their Mobile Devices to Shop
Figure 7.7, page 461.
Tablets lead smartphones as an m-commerce shopping and buying platform, but this difference may disappear over time as better tools are developed for smartphones.
SOURCE: Based on data from eMarketer, Inc., 2015b.

34. Figure 7.8: U.S. Retail M-commerce Sales: Smartphones Versus Tablets
Figure 7.7, page 461.
Tablets lead smartphones as an m-commerce shopping and buying platform, but this difference may disappear over time as better tools are developed for smartphones.
SOURCE: Based on data from eMarketer, Inc., 2015b.

35. In-App Experiences Mobile use (Experiences)
mobile users in the United States spend almost 60% of their total digital time using apps.
Smartphone apps in particular have been the biggest driver in the growth in digital media usage, and they account for almost half of total digital time, as well as almost 75% of the time spent on mobile devices, and 85% of the time spent on mobile apps.
Almost 75% of app time spent on user’s top 3 apps
Users use about 27 apps/month.
Facebook is the top app both in audience size and share of time spent, followed by Facebook Messenger in second place.
Google has four of the top seven apps (Google Maps, Google Search, Google Play, and Gmail).

36. In-App Marketing Most effective are in-app ads
Placed in most popular apps
Targeted to immediate activities and interests
Niche marketers, on the other hand, can concentrate their ads in apps that support that niche.
There may not be many users of the app, but those who do use it are highly motivated on the topic.
Focus on entertaining video ad that captures the viewer’s attention or an ad in an app that is precisely targeted to the consumer’s current activities and interests.

37. How the Multi-Screen Environment Changes the Marketing Funnel
Consumers becoming multi-platform
Desktops, smartphones, tablets, TV
90% of multi-device users use multiple devices to complete action
View ad on TV, search on smartphone, purchase on tablet
Marketing implications
Consistent branding across platforms and marketing on several devices are very important.
Responsive (creative) design based on different screen sizes (mobile, tablet); graphics and creative elements will appear differently depending on the screen.
Increased complexity, costs: Companies need to develop a presence and market not only on websites, but on mobile websites, and/or smartphone and tablet apps as well.

38. Mobile Marketing Features (table 7.13)
Mobile marketing 64% of all online marketing
Dominant players are Google, Facebook
Mobile device features
Personal communicator and organizer (always on, always with us)
Screen size and resolution
GPS location (precise location of consumers)
Web browser - Standard browsers
Apps – millions of apps
Ultraportable and personal - Fits into a pocket, or a briefcase for tablets
Multimedia capable - Fully capable of displaying all common media
Touch/haptic technology - Enhances touch screens by providing feedback in the form of vibration, force, or motion.

39. Figure 7.9: Mobile Versus Desktop Marketing Expenditures
Figure 7.10, Page 466.
Mobile advertising is still dominated by Google and its search engine, but Facebook has gained significant market share in the last four years.
SOURCE: Based on data from eMarketer, Inc., 2016r.

40. Figure 7.10: The Top U.S. Mobile Marketing Firms by U.S. Revenue
Figure 7.10, Page 466.
Mobile advertising is still dominated by Google and its search engine, but Facebook has gained significant market share in the last four years.
SOURCE: Based on data from eMarketer, Inc., 2016r.

41. Mobile Marketing Tools: Ad Formats
All the marketing formats available on the desktop are also available on mobile devices.
With few exceptions, mobile marketing is very much like desktop marketing—except it is smaller.
Mobile marketing formats
Search ads
Display ads
Video
Text/video messaging
Other: , classifieds, lead generation
Mobile interface versions of social network techniques

42. Figure 7.11: Mobile Ad Spending by Format
Figure 7.11, page 467.
Search engine advertising is the most popular mobile marketing format.
SOURCE: Based on data from eMarketer, Inc., 2016s.
Ad networks such as Google’s AdMob, Facebook, Apple’s iAd, Twitter’s MoPub, and MillennialMedia are some of the largest providers of mobile display advertising.

43. Insight on Business: Mobile Marketing: Ford Goes 3-D
Class discussion:
Why do mobile devices represent such a promising opportunity for marketers?
What are the benefits and the appeal of 3-D mobile advertising?
Have you ever engaged with 3-D mobile ads?
What types of products are best suited for 3-D ads?

44. Mobile Marketing Campaigns
Mobile website
Facebook and Twitter brand pages
Mobile versions of display advertising campaigns
Ad networks
Interactive content aimed at mobile user
Tools for measuring responses
Key dimensions follow desktop and social marketing metrics

45. Figure 7.12: Measuring the Effectiveness of a Mobile Branding Campaign
There are many different mobile marketing objectives, and therefore different types of mobile marketing campaigns.
Sales-oriented campaigns
Branding campaigns - strengthening consumers’ engagement with the brand.
Acquiring fans is measured by the number of unique visitors.
Engagement is reflected in the time on-site (in thousands of minutes);
Amplification is measured by the number of Likes,
Community is measured by the number of posts, suggesting fans are actively engaging with one another and the brand.
Brand strength is best summarized in this figure as the composite picture of fan acquisition, engagement, amplification, and community measures.
Figure 7.12, page 472.
The effectiveness of a branding campaign utilizing the mobile platform and social marketing can be measured by examining the number of Likes, posts, page views, time on site, and unique visitors.

46. Local and Location-Based Marketing
Targets messages to users based on location
Marketing of location-based services
Location-based services
Provide services to users based on location
Personal navigation - (How do I get there?)
Point-of-interest - (What’s that?)
Reviews - (What’s the best restaurant in the neighborhood?)
Friend-finders, family trackers - (Where is my child?)
Consumers have high likelihood of responding to local ads
Consumers want local ads, offers, information, and content.
Consumers have a high likelihood of acting on local ads and purchasing the products and services offered.

47. The Growth of Local and Location-Based Mobile Marketing
Prior to 2005, nearly all local advertising was non-digital
Google Maps (2005)
Enabled merchants to display ads to users based on the general location of potential customers, usually within a several square-mile radius.
IP addresses can be used to identify a city, and a neighborhood within the city
Smartphones, Google’s mobile maps app (2007)
Enabled targeting ads based on GPS
Location-based mobile marketing
Location-based (local) mobile marketing is currently a small part of the online marketing environment, but it is expected to triple over the next 5 years.

48. Figure 7.13: Local, Mobile, and Location-Based Mobile Marketing
Figure 7.13, Page 474.
Local online marketing will account for $45 billion in marketing expenditures in 2016, with location-based mobile expected to account for $12.8 billion of that amount.
SOURCES: Based on data from eMarketer, Inc., 2016b, 2016c, 2016e.

49. Figure 7.14: U.S. Location-based Mobile Ad Format Spending
Figure 7.13, Page 474.
Local online marketing will account for $45 billion in marketing expenditures in 2016, with location-based mobile expected to account for $12.8 billion of that amount.
SOURCES: Based on data from eMarketer, Inc., 2016b, 2016c, 2016e.
The ad formats used in local mobile marketing are familiar—search ads, display, native/social, videos, and SMS text messages.

50. Location-Based Marketing Platforms
Google
Android OS, Google Maps, Google Places, AdMob, AdWords
Facebook
Apple
iOS, iAd
Twitter
Others: YP, Pandora, Millenial

51. Location-Based Mobile Marketing Technologies
Two types of location-based marketing techniques
Geo-aware techniques
Identify location of user’s device and target ads, recommending actions within reach
Proximity marketing
Identify a perimeter around a location and target ads and recommendations within that perimeter
Identifying locations
GPS signals - The user’s device downloads GPS data from a GPS satellite. First introduced with the Apple 3G iPhone in 2008.
Cell-tower locations - Wireless carriers use a cell phone’s MAC address to identify the phone and the location.
Wi-Fi locations - Estimates user’s location within a radius of a known Wi-Fi access point.

52. Why Is Local Mobile Attractive to Marketers?
Mobile users more active, ready to purchase than desktop users
Over 80% of U.S. smartphone users use mobile devices to search for local products, services
50% of smartphone users visited a store within a day of their local search.
18% make a purchase
over 60% of smartphone users wanted ads customized both to their city/zip code and to their immediate surroundings

53. Location-Based Marketing Tools
Geo-social-based services marketing
Users share their location with friends.
Location-based services marketing
Provides services to consumers looking for local services and products.
Mobile-local social network marketing
Facebook expands local offerings of deals by local firms, display ads using News Feed. Launches Facebook Marketplace, which enables people to easily buy and sell within their local communities, in October 2016.
Intent marketing: scanning social networks for indications of real- time consumer interest in specific products.

54. Location-Based Marketing Tools
Proximity marketing
Send messages to consumers in the area of a store or outlet to generate sales using a virtual fence around a retail location (could also be an airport, train station, or arena).
In-store messaging
Messaging consumers while entering or browsing in a store.
Retailers collect, analyze, and respond to customers’ real-time shopping behavior.
Location-based app messaging
PayPal’s mobile app detects customers near a store that offers PayPal payment options and entices them with offers to visit.

55. Location-Based Marketing Campaigns
Measuring marketing results
Same measures as mobile and web marketing
Metrics for unique characteristics
Acquisition: Impressions; click-through; unique visitors to a mobile or desktop website; pages viewed; time on site.
Engagement: Inquire; reserve; visit a physical store; click-to-call; check maps for directions; register; request more information; posts and comments; responders to offers; Likes generated per visitor; click-to-call rate.
Amplification: SMS to friends; notify friends of location; share location or offers with friends.
Community: Content generated by visitors or responders; reviews; posts; positive comments generated.
Sales: Purchases; percentage increase in sales due to local mobile campaign; percentage of customers from local mobile.