On-Line Marketing

CI3103 Electronic Commerce Lectureby Dr Jarek Francikcontributed by Prof. Jonathan BriggsKingston University London 2011

7 Principles of Online Marketing

• Customer Profiling• The Many Pillars of Marketing• Testing• The Doubling Mindset• The Internet Equation• The Three Roads to Success• Real Customer Value

according to Jed Wylie

P.P.

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S.E.

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YOURON-LINE BUSINESS

visitors conversionrate

average order value

revenue1000 1% £20 £2002000 1% £20 £4001000 2% £20 £4001000 1% £40 £4002000 2% £40 £1600

Customer Lifetime Value

average order value £40

repeated orders per year 5

Customer Yearly Value £200

average client lifetime with business 5 years

TOTAL LIFETIME VALUE £1,000

7 Principles of Online Marketing

• Customer Profiling• The Many Pillars of Marketing• Testing• The Doubling Mindset• The Internet Equation• The Three Roads to Success• Real Customer Value

according to Jed Wylie

SEO:Search Engine Optimisation

Why promote your site?

• Customers will not find you unless you tell them• Potential customers won’t stumble across you• Search engines drive a significant

percentage of your visitors• Search engine advertising is an effective way

of promoting your site

Not all visitors are equal

• Only some visitors want what you sell• Reaching those customers is important• Search engines are good places to find

customers with particular needs (expressed as search)

• Remember to create customer journeys that allow visitors to become customers

Only 24% of people go beyond page 1

• Majority of people will only see the first page of organic results

• The higher in the page, the more clicks you get

• Being clicked in organic results is free!(unlike being clicked through an ad)

Understanding Search Engines

• Difference between:• search engines (Google, Yahoo, Bing, Ask) spider• directories (Yahoo, DMOZ) human

editor

• Google:– 90% in the UK– 72% in the US

every search engine has a different (and secret) algorithm but a site well optimised for one engine will usually be fine with others

PageRank Algorithm

drawn by Felipe Micaroni Lalli (micaroni@gmail.com).

Larry Page,patent owned by Stanford University

PageRank Algorithm

• Pages ranked on– relevance

how relevant is your page, how you use keywords– reputation

number and reputation of your in-bound links (Google Juice)

this shows two main directions in S.E.O.

Some Easy Rules

• Content is the King!Trust the spiders, quality content and services will be awarded (and indexed!)

• Update frequentlySearch engines prefer regularly updated pages

• Be honestPages with artificially increased position will be black-listed and blockedSpiders are very effective in detecting such pages

• Soak-in Google JuiceTry and get reputable in-bound links

Things to avoid

• Cheatingspiders will notice if you have too many keywords, or keywords are made invisible (small font, white on white)

• Bad HTML<h1> is for marking headings and this is exactly where spiders look for significant stuff (keywords). HTML 5 provides even more meaningful mark ups.

• BarriersMisuse of Flash (hiding navigation in Flash applets), frames, tables, images (always use <img alt=“meaningful text“)

KeywordsGuess what your users are likely to search for

Keywords

• Choose relevant keywords:search words you think valued visitors would use

• KEI – Keyword Effectiveness Index:– goes up if the keyword is popular among clients– goes down if there is strong competition

• Use tools to choose keywords:WordTracker http://wordtracker.com

Keywords

• relevant to your product or services• attracting good volume of traffic• not much competition

• balance between popular and specific

Keywordswine generic, very large competition

will attract people who spilled red wine on their carpet

online wine sellers better – will channel more valuable traffic

best oaked red wine very high KEI factor – found on WordTracker

red wine aerator set another quality KEI – but we do not sell it!

Keywordslcd tv generic, very large competition

customers are rarely satisfied with very broad search terms

sony lcd tv much more specific, smaller competition,much more likely to buy

sony KDL 32U3000 even more likely to buy!

PROVIDE LANDING PAGES FOR YOUR CHOSEN KEYWORDS!

Keywords

• Optimise for several different keywords• Good length for a keyphrase: 3-4 words• Use keywords in:– <title> tag– heading tags <h1> <h2> etc.– page copy – provide relevant, keyword-rich text– page URL (where possible)– <meta> description tag

• <meta name=“description“ content=“Wine shop sells wine from...• <meta name=“keywords“ content=“best oak red wine, aerator...

– link anchor text

External Ranking Factors

• Even the perfectly optimised website will remain low in PageRank without Google Juice:reputable in-bound links

• Avoid referrers with low reputation!• Provide quality content and services

– give others very good reasons to link to you• Use reciprocal links – but only from relevant sites• Get listed in high ranking directories (DMOZ!)• Publish – and leave links behind (but avoid

ostentatiously selling!) • Search for blogs in your area and comment on them

Optimisation

• The real thing is an iterative process:– Continuously search for new keywords– Check GoogleAnalytics – promote those keywords that

proved to be effective– Test (for example A/B)– User PPC (Per Per Click)

• Search Engine Optimisation (SEO) is not a one-off activity

IT MUST BE AN ONGOING PROCESS

S.E.O. vs P.P.C.

• Search Engine Optimisation is free (unless you pay for outsourcing)

• Results will only be visible after 6 – 12 months• No sensible analysis before that period

• PPC campaigns will cost you money• But you will get some instant traffic• Well designed campaign will provide

a very high ROI (return on investment)

PPC:Pay per Click

Pay Per Click Ads

• Ads are shown when search terms are entered• Ads are relevant to the search• Advertisers only pay when ad is clicked• Advertisers bid on keywords and phrases• Google provides a powerful backend system

for managing ads

Pay Per Click

1. Choose your budget2. Select where and when your ad is displayed3. Create ads4. Identify and select your keywords5. Optimise your site – create Landing Pages!6. Analyse effectiveness and optimise

http://adwords.google.co.uk

Google guidelines for ads

4 lines:1. Heading – up to 25 characters2. 1st line – up to 35 characters3. 2nd line – up to 35 characters4. Your URL (most often – landing page)

no exclamation marks, no capital letters, no “best” things...

Match types

• Broadyoga clothes will match clothes for yoga training

• Phrase“yoga clothes” will match women’s yoga clothes

• Exact[yoga cloths] will only match yoga cloths

• Negative-discounted will exclude discounted yoga cloths

Tips• Use relevant, 2-3 words long keyphrases,

specific enough to profile your visitorschardonnay white wine, chilean red winebut red wine is to generic (red wine spill on the carpet!)

buy French snails, Burgundy snailsbut snails are too generic (we wan’t people who eat snails, not keep them in fish tank)

yoga women’s clothes, stylish yoga clothesbut yoga is too generic

• Use negative keywordsspill, carpet, stopper, tastingwater, tank, biologypositions, cheap, discount

• Use the Keyword Tool

PPC Planning

To maximise profit:• High Click Through Rate (CTR)• High Conversion• Low Cost Per Click (CPC)

PPC Planning

To maximise profit:• High Click Through Rate (CTR)– Impressions = how many times seen– Clicks = how many times clicked– CTR = Clicks / Impressions

• High Conversion• Low Cost Per Click (CPC)

PPC Planning

To maximise profit:• High Click Through Rate (CTR)• High Conversion• Low Cost Per Click (CPC)

PPC Planning

To maximise profit:• High Click Through Rate (CTR)• High Conversion• Low Cost Per Click (CPC)

determined by:– bids in auction-style process– quality score (65%)– constrained by user’s maximum bid & daily budget

PPC Planning

To maximise profit:• High Click Through Rate (CTR)• High Conversion• Low Cost Per Click (CPC)

determined by:– bids in auction-style process– quality score (65%)– constrained by user’s maximum bid & daily budget

Google measures:• relevancy of your ad• quality of your landing page• history of your CTR

Google applies a sophisticated algorithm to promote most effective ads – because they charge for a click!

Economy of PPC advertising

• What kind of data is provided in Keyword Tool?– impressions– clicks– CTR: click through rate

what percentage of my impressions is actually clicked– average CPC (cost per click)– cost– average position

PPC ExampleIndicator How to find Calculation Value

Impressions 500

CTR: Click Trough Rate 10%

Clicks Impressions x CTR 500 x 10% 50

CPC: Cost per Click 40p

Cost Clicks x CPC 50 x 40p £20

CR: Conversion rate: 10%

Conversions: Clicks x CR 50 x 10% 5

Cost per Conversion Cost / Conversions £20 / 5 £4

Average order value £25

Revenue Conversions x AOV 5 x £25 £125

Profit Revenue - Cost £125 - £20 £105

ROI: Return on Investment Profit / Cost £105 / £20 525%

PPC ExampleIndicator How to find Calculation Value

Impressions 500

CTR: Click Trough Rate 10%

Clicks Impressions x CTR 500 x 10% 50

CPC: Cost per Click 40p

Cost Clicks x CPC 50 x 40p £20

CR: Conversion rate: 10%

Conversions: Clicks x CR 50 x 10% 5

Cost per Conversion Cost / Conversions £20 / 5 £4

Average order value £25

Revenue Conversions x AOV 5 x £25 £125

Profit Revenue - Cost £125 - £20 £105

ROI: Return on Investment Profit / Cost £105 / £20 525%

PPC ExampleIndicator How to find Calculation Value

Impressions 500

CTR: Click Trough Rate 10%

Clicks Impressions x CTR 500 x 10% 50

CPC: Cost per Click 40p

Cost Clicks x CPC 50 x 40p £20

CR: Conversion rate: 10%

Conversions: Clicks x CR 50 x 10% 5

Cost per Conversion Cost / Conversions £20 / 5 £4

Average order value £25

Revenue Conversions x AOV 5 x £25 £125

Profit Revenue - Cost £125 - £20 £105

ROI: Return on Investment Profit / Cost £105 / £20 525%

PPC: Instant results!

What’s fascinating in PPC:• You get some instant results• You don’t have to wait long for analytical data• You can start to optimise your campaign from

the very beginning!

• ROI in PPC is relativelyvery high