Mobile Commerce Chapter 6

types of online advertising and marketing tools

• search engine

• display ad marketing

• email marketing

• affiliate marketing

• lead generation marketing

search engine marketing and advertising

use of search engines to support direct sales, through pay per click search ads

search engine optimization

the optimization of a website to rank high on serp

real time bidding

a digital advertising strategy where advertisers bid on ad space in real time to reach targeted audiences.

what year did google move to real time bidding

2019

what determines your cost per click score

• qaulity score

• cpc bid

• expected impact of your ad extensions and other add formats

cost per click

a pricing model where advertisers pay each time a user clicks on their ad. It is influenced by factors like quality score and competition.

qaulity score

a metric that measures the quality and relevance of your keywords and ads in relation to a user's search query, affecting your ad ranking and CPC.

• ctr

• ad relevance

• landing page experience 

click through rate formula

= clicks/impressions

quality score formula

expected highest charge from second highest bidder/ # clicks from auction winner

display ad marketing

a form of online advertising that uses visual ads on websites, apps, or social media to promote products or services, often targeting specific audiences.

key metrics of search and and display add marketing

• CTR

• CPC

average CTR in google

5.06, 0.5

average cpc in google

2.42, 0.59

conversion process

conversion action, conversion, conversion rate

conversion rate

#of conversions /#ad interactions

average conversion rate

1 - 1-%

conversion rate of x company

4.46, 0.57

aggregate level

return on ad spend: total ad revenue divided by total ad spend

average aggregate level

2:1

cost per view formula

total ad spend / total measured views

average cost per view

0.1 - 0.3

email marketing

A digital marketing strategy that uses email to send advertisements, request business, or solicit sales or donations. It aims to engage customers and promote brand loyalty.

pros of email marketing

• inexpensive

• ability to measure and track responses

• personalization and targeting

cons of email marketing

• spam

• anti spam systems

• poorly targeted purchased email lists 

average CTR of email marketing

3% - 4%

good email contains

• timely topic

• customized data

• drives curiosity

• visual display

• call to action

affiliate marketing

commission fee paid to other websites for sending customers to their website. It is a performance-based marketing strategy where businesses reward affiliates for each customer brought by the affiliate's own marketing efforts.

lead generation marketing

services and tools for collecting, managing and converting leads. It involves strategies to attract potential customers and capture their information, typically through forms or landing pages, to nurture them towards becoming paying customers.

shifts in online marketing and advertising tools

• social media: use if online social networks and communities

• mobile marketing; search, display ads, text messages, coupons 

• local marketing: targeting nearby customers through location-based advertising or promotions. daily deal sites 

general model of consumer behaviour

independent demographic variables, like:

• culture

• social

• psychological

are impacted by intervening variables;

• brand’marketing communications stimuli

• firm capabilities

to shape

• in store behaviour

• buyer decisions

5 stages of the consumer decision process

• awareness

• search

• evaluation

• purchase decision

• post purchase contact with firm

what percentage of internet users are shoppers

92.5

what percentage of internet users are buyers

83.5

what percentage of internet users are browsers

9%

what percentage of people dont shop online

7.4

multi channel marketing

is a strategy that enables businesses to interact with customers across multiple platforms, such as online and offline channels, to maximize engagement and sales. reinforces messages across media. most efficient campaigns use consistent imagery

substitue effect

refers to the change in demand for a product when a price change makes a substitute product more or less attractive to consumers. It highlights how consumers may switch to alternative products in response to price fluctuations.

complementary effect

is the impact on the demand for a product when the price change of a complementary good affects its consumption. This effect indicates that as the price of one good decreases, the demand for its complement often increases.

show rooming effect

is a consumer behavior where shoppers examine products in a physical store but then purchase them online, often at a lower price. This trend highlights the importance of online presence for brick-and-mortar retailers.

marketing analytics

software that analyzes data at each stage of the constomer awareness conversion process

• awareness

• engagement

• interaction

• purchase activity

• post purchase 

GA4 metric

is a measurement tool in Google Analytics 4 that tracks user interactions, engagement, and conversion data across different platforms, providing insights for optimizing marketing strategies.

session

when a user opens your app or views a page

engaged session

sessions that last 10 seconds or longer, have one or more conversion events, or have two or more views

acquisition

details on how the user finds the website

source

the origin of your traffic, such as search engine or domain

medium

the general category of the source, for example, organic search, cpc, web referral