Digital Marketing and E-Business: Strategies and Metrics
The Value of Web Advertising
You can advertise a business online to reach a worldwide audience and expand beyond your local market. You may immediately connect with your audience online and avoid having to travel to grow your business. By doing this, a business may become visible to thousands of potential clients.
Display Advertisement
Display Advertisement is a type of online advertising where advertisers promote their products on websites, apps, or social media using banner ads and other visual ad forms.
Online Advertising Advantages
Online advertising offers two critical advantages:
- It is measurable. We can know at all times how many users we attract thanks to ads, the revenue they generate, and their cost. However, in a television advertisement, we can invest thousands of euros without really knowing the impact that such action has had.
- It is segmentable. We can establish the characteristics of the users to whom we want to launch our ads: location, language, and so on.
In this sense, display marketing is in full growth. Aspects such as the advance of mobile devices, the constant increase of online advertising spaces, and the expansion of video as a format on the Internet have guaranteed the growth of display advertising.
Goals of Display Advertising
- Create a distinct, positive image for brands through advertising.
- A “direct response” is the aim of direct marketing:
- Call to action and reaction
- Retargeting
- Key Metrics
- CPC, CPT/CPA
- CTR
- Majority via paid search, but advertising is catching up
Market for Programmatic Display Ads
There are two distinct components of digital marketing: programmatic and display ads. In contrast to display ads, which are all about ad formats, programmatic advertising refers to a certain publishing method for advertisements. Display ads can sometimes be a part of programmatic advertising, and programmatic ads can sometimes be display ads.
Walled Gardens
Walled gardens are a type of advertising model where the publisher is in charge of all the purchase, delivery, tracking, and analysis. This is frequently used in association with first-party data targeting, auto advertising portals, auction pricing, and other techniques. Publishers basically own their whole ad platform in this closed structure.
Key Metrics in Online Advertising
The click-through rate (CTR) is relevant when you place advertisements and ads on your amounts. For example, if you promote a story and place a link to your website, the CTR tells you how many users actually visited your website in relation to the total number of impressions.
CPM (Cost per Mille): is a formula that determines the total amount spent on advertisements for each thousand page views. An impression happens in CPM campaigns each time an ad is successfully shown to the target demographic.
CPC (Cost per Click): is a type of online advertising revenue in which the company pays the publisher according to how frequently users click on display ads.
CPT/CPA: is the average cost for one transaction. This is obtained by dividing the whole transaction fees by the overall transactions.
Bounce rate: the percentage of users who leave a website after just one click. A bounce occurs when a user leaves the site after viewing a single web page, within a few seconds.
E-Business and E-Commerce
E-Business refers to the practice of conducting a business using the Internet and the Web. It includes all economic activities carried out over the Internet, whether they involve the purchase and sale of products or the provision of services. What does it have to do with eCommerce? eCommerce stands for online buying and selling, while e-business refers to all of a company’s online business operations. E-business can be viewed as a subset of e-commerce. Scalability is the ability of a business to maintain or improve its performance in terms of profit or efficiency as its overall sales grow.
The Long Tail Phenomenon
The long tail phenomenon: The long tail is a business technique that enables businesses to make huge profits by selling small quantities of difficult-to-find goods to lots of clients, as opposed to only selling big quantities of a small number of popular goods. Examples of Long Tail businesses include Amazon and Netflix.
Business Revenue Models
- Subscription: A person can access a service for a charge through a subscription-based business model. With a subscription, a product is advertised frequently across a range of time rather than being sold separately.
- Pay Per View: is a form of subscription television in which the subscriber pays for the individual events they wish to watch.
- Advertisement: Advertising is a marketing strategy that involves buying space to promote a product. Reaching the demographics most likely to be interested in purchasing a company’s goods or services is the aim of advertising.
- Sponsorship: An agreement between two or more businesses where one of them has been sponsored through the channels of the other. In other terms, the company that is being sponsored sells an advertisement spot to a sponsor for a specific amount of time.
- Commissions: It is the sum of money a seller makes in proportion to the volume of sales they have generated. This is extra cash that frequently supplements a base salary.
- Data Access: Organizations with data-driven business models rely on data to conduct their main operations. All aspects of a company model, including the value proposition, value added, and revenue model, can be impacted by this dependency on data.
- Sales: A company’s total strategy for selling is referred to as a sales model. There is no one ideal sales strategy; instead, each company will choose a different strategy depending on its product, market, and revenue model.
- Microtransactions: Users can purchase virtual goods using micropayments. It is incorporated into free-to-play (F2P) games so that their creators have a way to monetize their creation.
- PMF: A product’s performance in a certain market is assessed using product market fit. Among the factors in this ratio are customer loyalty, rival ratings, and the capacity to provide value.
Mobile Marketing and App Stats
- Number of downloads.
- Daily Active Users (DAU): That is, the total number of users who used a social network on a particular day.
- WAU (Weekly Active Users): The total number of users who were active over the course of one week.
- DAU/MAU Engagement Indicator: By looking at the DAU/MAU ratio, popularized by platforms like Facebook, you see how many monthly customers interact with your product or service in a single day. The equation is as follows: The number of daily active users divided by the number of monthly active users = DAU/MAU percentage.
Pyramid of Needs Covered
Physiological, Safety, Personal, Esteem (newspapers, social networking) & Self-Actualization (Travel)
Apps, Not Ads!
- Add convenience (great to engage)
- Offer unique value
- Provide social value
- Offer incentives
- Entertain
5 Don’ts of Mobile App Development
- Treating the mobile experience like it’s the desktop; you should maintain focus.
- Building a mobile website and trying to pass it off as an app.
- An app should perform certain things also offline.
- An app is a program after all, not a website.
- Building an app without a plan for marketing it.
- People do not grant you access that easily.
- If people will come back to your app “just because.”
- Challenge 2 is to keep users busy.
- Ignoring your app’s customer base.