IT 361: E-Commerce Systems Chapter 4

1. IT 361: E-Commerce Systems Chapter 4 E-commerce Marketing & Advertising Social, Mobile & Local Marketing Readings: Chapter 7

2. Facebook: Putting Social Marketing to WorkClass Discussion • 190M users in North America, & 1 B global • Face was the next Google & next Amazon • 2012, Stock price $38 -> $17.5 “would facebook be able to increase its advertising revenue?” “will social marketing work?” • 2012 mobile strategies: • Ads in users news feeds • Shift from browsers to apps (8K developer + 25K facebook apps + 20M apps installed everyday) • Redesigning facebook apps for mobile • App-install ads • In-app ads • Advantages of in-app ads: • not perceived to be disruptive or annoying as new fees ads • Inconvenience of ads vs. free game • 2013: 40% access facebook from mobile + mobile ads generated 41% of facebook revenue • Successful with small businesses (connect with shopping carts + online community + videos + contest)

4. Facebook: Putting Social Marketing to WorkClass Discussion • Important questions: • Does facebook marketing & advertising platform really work? how well vs. other techniques? • Do Likes turn into sales? • Marketing vs. Driving sales? • Is it sustainable? • Other initiatives: video ads + integrating with instagram • Research about the effectiveness of social marketing • 5% rank social network as the most important factor for purchasing • 2-7% influence customers prior to purchase vs email, SE, display ads, website. • 88% of companies use facebook for marketing

5. 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? • What obstacles does Facebook face in monetizing itself as a marketing and advertising platform? • Are there other ways for Facebook to make a profit from marketers and advertisers?

6. Introduction to Social, Mobile, and Local Marketing Eyeballs -> Conversation New marketing concepts “conversations” & “engagement” in 2007: • Rapid growth of SN users • Growth of smartphones • Growth of interest in local marketing Desktop -> Smartphones Social-mobile-local nexus Strong ties between consumer use of social networks, mobile devices, and local shopping

9. Social Marketing • Traditional online marketing goals • Deliver business message to the most consumers (impression) • Social marketing goals (reach + engagement) • Encourage consumers to become fans and engage and enter conversations • Strengthen brand by increasing share of online conversation

10. Social Marketing Players

11. The Social Marketing Process

13. News Feed Ads vs. Sponsored Ads Facebook News Feed ads have a click-through rate 44x higher, and a conversion rate 5X higher, than right-side ads

14. The goal of Promotion ads is to reach more of a company’s existing audience and some of their friends

15. Sponsored StoriesBuilt around user activity The goal of Sponsored Stories to get more users to take the same action that a friend has

16. Typical Social Marketing Campaign • Know your customer • Establish Social brand page – Content is King • 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 pages and social search • Display Like button liberally

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

18. Insight on Technology Fairmont Hotels • How do social technologies help identify and attract loyal customers? • What are the challenges in measuring the effectiveness of social campaigns? • What were the advantages Fairmont Hotels found in using Google Analytics?

19. Mobile Marketing • 90% of retail plans to have mobile marketing campaign • People look at phones at least 40 times a day. • Mobile marketing formats • Banner ads, rich media ads, and video ads • Games • E-mail and text messaging • In-store messaging • Quick Response (QR) codes • Couponing

20. The Growth of Mobile Commerce

22. $39B 15% of retail & travel sales

23. Mobile Marketing Campaigns • Mobile Web site • 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

24. Local & location-based marketing • 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 • Point-of-interest • Reviews • Friend-finders, family trackers • Consumers have high likelihood of responding to local ads

25. Location-Based Marketing Campaigns • Location-based considerations • Consider action-based, time-restrained offers and opportunities • Consider target demographic and location-aware mobile user demographics • Measuring marketing results • Same measures as mobile and Web marketing • Metrics for measuring unique characteristics • Reservations • Click-to-call • Friend • Purchase