Digital Marketing Chapter 1

Affiliate Marketing Website

Websites that typically provide information about a variety of products and include links to other websites where an internet user can purchase these products

Conversion

The target action that websites encourage visitors to take

Conversion Rates

The percentage of visitors who convert; considered one of the most important indicators of a retail website's success. The percentage of visitors who perform the desired action on a website.

Domain Name

The name of a website (amazon.com)

AIDA Awareness

The initial stage where consumers become aware of a business/brand.

High Traffic Advantage

Greater traffic leads to greater awareness and a larger potential customer base.

Affiliate Marketing Revenue

Affiliate marketers earn a commission when a visitor clicks an affiliate link and makes a purchase on the destination website.

Media Website Revenue

Media websites can charge more for advertising when they know more about their users because advertisers can better target the right audience.

Domain Name System (DNS)

Manages the translation of domain names to IP addresses so that requests for a specific domain are routed to the correct server

eCommerce

Also known as online retail

Registrar

A company that manages the leasing of domain names (GoDaddy is the largest)

Internet Protocol (IP) Address

It is used to locate internet-connected computers and to transfer information from one computer to another (e.g., 104.18.43.103)

HTTPS

An indication of a secure connection to your website

Inventory Management System

Software that manages and tracks a company's stock of for-sale products

Lead

An inquiry from a potential customer into a business's products or services

Lead Generation Website

A website with the goal of generating leads

Marketplace

A platform for buyers and sellers to come together for buying and selling exchanges

Merchant Account

A bank account designated for accepting customer credit card payments

Media Websites

Websites that make money by exposing users to advertisements

Payment Gateway

Technology that enables credit card payments by connecting the payer to the company's merchant account

Search Engine

Software that provides a list of webpages relevant to a search query

Security Certificate

Allows users to access your website without being observed by third parties

Server

A computer connected to the internet that fulfills information requests to the website

Transport Layer Security (TLS)

An encryption method used to prevent eavesdropping by third parties

URL (Uniform Resource Locator)

The unique identifier used to locate a resource on the internet

Direct Traffic

Traffic that comes to a website either from a potential customer's offline advertising activities or from habit

Referral Traffic

Traffic to a website that comes from another website; includes both paid and unpaid referral traffic

Paid Referral Traffic

A website has paid to display ads on other websites

Unpaid Referral Traffic

Comes to their website from any link they do not pay for

Search Traffic

Traffic to a website that comes by way of links on a SERP; can be divided into two categories: paid and unpaid (Many buyers are in the Desire stage)

Unpaid Search Traffic

Any traffic that comes to a site from clicks on the organic search results on the search engine results pages, or SERP

Paid Search Traffic

Ads on the SERP that accompany the organic results

Email Traffic

Traffic to a website that is the result of advertisements sent to potential customers via email

Web Browser

Software that displays webpage content to human users.

Web Hosting Company

A company that provides server space for others to run a website.

Content Management System (CMS)

Allows you to create website content without having to learn HTML and JavaScript.

HTML (Hypertext Markup Language)

A coding language used to display static web pages.

JavaScript

Code used to instruct web browsers how to display a webpage.

AIDA Model

Awareness - Interest - Desire - Action

Primary Conversion for eCommerce

Purchase

Secondary Conversions for eCommerce

Create account, sign up for emails, pay for premium account

Primary Conversion for Lead Generation

Lead (phone call or form submission)

Secondary Conversions for Lead Generation

Sign up for emails, start a free trial

Primary Conversion for Media Websites

Engagement

Secondary Conversions for Media Websites

Page views, video views, create account

Primary Conversion for Affiliate Marketing

Click affiliate link

Secondary Conversion for Affiliate Marketing

Purchase

Revenue for Retail Websites

Increase average order value through higher-priced items or add-on purchases.

Revenue for Lead Generation Websites

Track which traffic sources lead to more lucrative deals.

Revenue for Media Websites

Learn more about users and which advertisements/formats are effective so advertisers will pay more.

Direct Traffic Example

Someone visits a website through a bookmark.

Search Traffic Advantage

Many search visitors may already be in the Desire stage.

Lead Generation AIDA

Can sometimes skip the Desire stage because becoming a lead is a smaller commitment than making a purchase.

Analytics Package

Not required, but important for understanding how well a website is performing.

Domain Registration + Web Hosting

Most registrars offer these services bundled together.

Security Certificate Technology

Modern security certificates use TLS, even though people may still call them SSL certificates.

What is the purpose of a website?

Create customers or to help in the customer creation process

What is the best way to increase affiliate revenue in the shortest time?

Show/promote the highest-converting and highest-paying offers first; it is a quick way to bump up revenue.

Evaluating Website Success

(1) generating traffic, (2) driving conversions, (3) maximizing revenue per conversion

Websites can earn four types of traffic

direct traffic, referral traffic, search traffic, and email traffic

Digital Marketing

Any marketing efforts that occur on the internet

What are the core channels of digital marketing?

Social media, Search Engines (SEO & SEM), Email, Websites/eCommerce

Traditional Marketing

Push-based, mass media (TV, radio, print), Broad reach (TV, radio, print, billboards), Tangible presence (Mailers, magazines, events), still effective for brand awareness and certain demographics

Digital Marketing

Pull-based, Measurable, targeted, interactive, can offer cost-effective reach for niche audiences, better suited for tracking and personalization

Examples of Organic

SEO, Social Media (sometimes), Content Marketing

Examples of Paid

SEM, Social ads including influencers, Display ads

Cookies

Small amount of data generated by a website and saved by your browser, Most commonly store login info; Session: temporary, deleted when the browser is closed & Persistent: has some future expiration date

Segmentation

How do we divide the market?

Target Market

Who are we choosing to focus on?

Value Proposition

What benefit does the customer get - and why would they want it?

Positioning

How do we want the brand to be understood relative to alternatives?

The 4Ps

Product, Price, Place, Promotion

Paid Media

We pay for exposure

Owned Media

We control the channel

Earned Media

Others create or distribute exposure (Trust the most)

Value Proposition

What benefit? Do we promise?

Positioning

What place do we want to occupy in the customer's mind?

Consumer Decision Process

Problem Recognition - Information Search - Evaluation of Alternatives - Purchase - Post-Purchase

Marketing Funnel

Awareness - Interest - Desire - Action - Loyalty - Advocacy

Digital Marketing Builds on Marketing Strategy

Problem/Opportunity - Marketing Strategy - Digital Execution

Affiliate Marketing

A form of performance-based marketing where affiliates refer potential customers to a merchant and earn a commission when the desired action occurs.

Affiliates

People who refer potential buyers to a website.

Merchant

The business selling the product/service.

Affiliate Software vs. Affiliate Network

Affiliate software allows a company to manage its own affiliate program without paying a commission to an affiliate network.

Cookies in Affiliate Marketing

Used to track referrals/user data so affiliates can receive credit when someone they referred makes a future purchase.

Common Commission Models

CPA (Cost Per Acquisition), PCall (Pay Per Call), CPM (Cost Per Mille), and CPI (Cost Per Install).

Creating an Affiliate Program

Decide whether to use software or a network, research competitors, and choose a commission model.

NOT necessary when creating an affiliate program

Having a brainstorm session.

Must-haves when executing an affiliate program

Affiliate agreement, answers to frequently asked questions, and consistent communication with affiliates. An affiliate manager is NOT a must-have.

Most sought-after affiliates

Opinion leaders and content producers.

CPS (Cost Per Sale)

The affiliate earns a commission when a referred customer makes a purchase.