Ch 3: Comprehensive Study Notes on Digital, Social, and Mobile Marketing

Learning Objectives and Overview of Digital Marketing

  • Learning Objectives:

    • LO 3−1LO\,3-1: Describe the four E framework for digital marketing.

    • LO 3−2LO\,3-2: Explore the future of artificial intelligence (AIAI) in marketing.

    • LO 3−3LO\,3-3: Examine the seven critical elements of online marketing.

    • LO 3−4LO\,3-4: Understand the drivers of social media engagement.

    • LO 3−5LO\,3-5: Understand various motivations for using mobile applications.

    • LO 3−6LO\,3-6: Recognize and understand the components of a digital marketing strategy.

    • LO 3−7LO\,3-7: Understand the central factors in picking an influencer partner.

  • Nontraditional Learning and Marketing Tactics: The Duolingo Case Study:

    • Duolingo avoids traditional rote memorization or recitation, utilizing intentionally silly translation sentences to keep users engaged and entertained.

    • On TikTok, Duolingo avoids standard promotional videos, featuring its large, neon green bird mascot named Duo in bizarre and humorous scenarios.

    • Examples of Duo's TikTok content include wandering through its New York City offices, mimicking popular memes, and expressing daily struggles.

    • One viral TikTok with over 11,000,00011,000,000 views displays Duo wearing a scarf while mocking a Balenciaga model walking with a hunched posture.

    • Despite videos being under 30 seconds30\,seconds long and rarely mentioning language learning services explicitly, the strategy generated over 90,000,00090,000,000 unique engagement moments on TikTok.

    • Duolingo's initial TikTok campaign produced an average click-through rate that exceeded its self-set benchmark by 39%39\%.

    • In 20222022, this performance helped yield approximately 15,000,00015,000,000 daily active app users, reflecting a 51%51\% increase from the prior year.

    • The viral #TattooDuoOver campaign on X (formerly Twitter) invited users to post photos of mistranslated foreign language tattoos tagging @Duolingo, @DuolingoUK, or @DuolingoFR.

    • Duolingo translated the tattoos accurately and selected lucky participants for an all-expenses-paid trip to Paris to get their tattoos fixed at a parlor named Abraxas.

    • Duolingo partnered with Game of Thrones and HBO Max to create a High Valyrian language program integrated into an augmented reality (ARAR) app where users raise a virtual dragon.

    • Platform-specific adjustments: On X, where demographics skew older, Duolingo retains a quirky identity while implementing more traditional marketing campaigns.

The Four E Framework for Digital Marketing

  • Definition of Digital Marketing:

    • Encompasses all online marketing activities, digital assets, channels, and media across online, social media, and mobile marketing.

    • Includes prominent activities such as website design, blogging, and search engine optimization (SEOSEO).

    • Social Media: Online and mobile technologies that create and distribute content to facilitate interpersonal interactions via platforms, tools, and services.

    • Traditional channels (brick-and-mortar stores, print, television, radio, telemarketing, mail) are no longer sufficient on their own.

  • The Four E Framework Components:

    1. Excite Customers:

    • Utilize digital offers, mobile applications, and games to excite consumers about an idea, product, brand, or company.

    • Must offer personalized, relevant deals based on Customer Relationship Management (CRMCRM) systems, loyalty programs, or analytics tools like Google Analytics.

    • Lush Cosmetics Example: Encourages customers to post pictures using products with the hashtag #LushLife for a chance to be featured on the official page.

    • Staples Example: Delivers location-based mobile coupons to loyal customers directly on their mobile phones while they are physically inside a store.

    1. Educate Customers:

    • Clear calls-to-action draw users to websites or retail stores to communicate the firm's value proposition and required product benefits.

    • #KnowYourLemons Campaign Example: The Worldwide Breast Cancer Organization posted images of 1212 lemon shapes and lengths on Facebook to teach breast self-exam indicators.

    • Supported low-literacy understanding via visual graphics, linked to a detailed scientific microsite, and drove a massive increase in donations.

    1. Experience the Product or Service:

    • Simulates real-world experiences directly or indirectly before purchase.

    • Includes downloading sample book chapters, testing software trials for a month, or watching YouTube tutorials (e.g., caviar purchasing or cowboy boot manufacturing).

    • Sephora Example: Features community forums with weekly topic prompts (e.g., favorite eyebrow products), video testimonials, and YouTube channel guides for specific occasions like date night.

    1. Engage the Customer:

    • Action, relationship building, loyalty, and commitment driven by interactive tools like blogging and microblogging.

    • IHOP/IHOb Campaign Example: Rebranded temporarily to IHOb on X to introduce new menu burgers; the flipped "b" mirrored flipping pancakes/burgers.

    • Generated a 6,477%6,477\% increase in single-day social media mentions before reverting back to IHOP months later.

    • IKEA Place App Example: Allows customers to use their mobile device camera to visually position catalog furniture inside their home or office.

    • E-Commerce Facilitation: Instagram and Pinterest utilize buy buttons. Click-throughs to retail sites rose 40%40\% shortly after Pinterest introduced personalized shopping recommendations.

Artificial Intelligence (AI) Applications in Marketing

  • Definition and Capabilities:

    • Artificial Intelligence (AIAI): The ability of information technologies, machines, and computers to exhibit intelligence, learn continually from data, and execute tasks without human intervention.

    • Extends beyond cognitive analysis to creative tasks; e.g., the humanoid robot Ai-Da creates original art displayed at Oxford University.

    • Powers recommendation systems, voice assistants (present in an estimated 8,000,000,0008,000,000,000 consumer devices), supply chain robots, and autonomous retail (Amazon Go).

  • The Four Quadrant AI Framework:

    • Quadrant 1: Background Operation / Replaces Employees (Efficiency):

    • Whiz: Robot vacuum developed by SoftBank Robotics using AIAI navigation algorithms. Deployed at the Garden City Hotel in Long Island, NY, during housekeeping staff shortages.

    • Masterly / Yara Birkeland: Autonomous Norwegian cargo ship operating without a crew to transport mineral fertilizer between two ports, replacing 40,00040,000 annual truck trips and lowering carbon emissions.

    • Quadrant 2: Background Operation / Augments Employees (Capabilities Expansion):

    • Starbucks: Voice recognition software allowing baristas to state orders orally into a microphone rather than manually keying them in.

    • Coffee Quality Sensors: Handheld AIAI sensors detect organic sensory footprints of raw green coffee beans to differentiate sweetness profiles (e.g., caramel vs. chocolate flavors).

    • Google Analytics / BigQuery: Processes performance data to generate predictive reports and custom audience segments.

    • Tally: In-store inventory robot used by Meijer and ShopRite; reduces false out-of-stock situations by 20%20\% to 30%30\%.

    • Quadrant 3: Customer-Facing / Augments Employees (Service Enhancement):

    • Peanut Robot Server: Delivers food in restaurants while human servers interact with guests, handle complex tasks, and clear dishes.

    • Used in hospitality for late-night room service deliveries when staffing is reduced.

    • Quadrant 4: Customer-Facing / Replaces Employees (Autonomous AI):

    • Artly / AI Barista Robot: Completely automated robotic arms that prepare customized coffee, perform latte art, and attach cup lids.

    • GEICO's Gabby: Virtual assistant handling routine customer queries (e.g., deductible limits or policy numbers).

    • Lowe's LoweBot: Autonomous in-store assistant providing product locations to shoppers.

  • Ethical Dilemmas in AI:

    • Housing Discrimination: The US Department of Housing and Urban Development (HUDHUD) filed Fair Housing Act charges against Meta (Facebook) for ad targeting that excluded users based on disability, race, or religion (modern redlining).

    • Algorithmic Bias: Studies showed job ads for logging were served mostly to white men and secretarial jobs to Black women. Adding unrelated images (e.g., a football vs. a flower) introduced gender-biased targeting.

    • Resolution: Meta settled without admitting liability and implemented a Variance Reduction System (VRSVRS) to ensure ad distributions match target demographics.

The Seven C Framework for Online Marketing

  1. Core Goals:

    • Primary aim: Engage users and drive time spent on site (e.g., Walmart's e-commerce focus).

    • Cultural / Educational sites: The Metropolitan Museum of Art offers an ARAR feature to place artwork virtually in living rooms; the Bronx Zoo provides live webcams of animals.

  2. Contextual Elements:

    • Visual layout, fonts, navigation, and color schemes aligned with targeted segments.

    • LEGO Example: Provides two distinct pathways—a bright, animated "Play Zone" for children and a clean, structured product grid with pricing for purchasing adults.

  3. Content:

    • Relevant text, graphics, videos, and audio that educate and excite.

    • Non-promotional engagement examples: Alex and Ani posting motivational quotes for young females; Fidelity tweeting tax reduction advice during April.

  4. Community:

    • Corporate Blogs: Created and controlled by companies to educate and engage (e.g., American Express OPEN Forum featuring expert business advice).

    • Professional Blogs: Written by independent experts offering product reviews; marketers offer free products or remuneration, though paid reviews risk consumer trust.

    • Personal Blogs: Written by individuals with minimal direct commercial focus.

    • Crowdsourcing: Threadless / Tavern builds clothing lines by letting users submit, review, and vote on designs prior to manufacturing.

    • Influencer Integration: Nike features Serena Williams on its Athlete Stories blog and maintains a dedicated shop page for the Serena Williams Design Crew.

  5. Communication:

    • Interactive options including live chat, instant messaging, phone, email, and social platforms like X.

  6. Commerce:

    • Delivering multi-channel options for transaction processing.

    • Mobile app companion features at Sephora enable in-store scanning, loyalty point checks, personalized tutorials, AIAI facial feature analysis, and integration with Google Home Skincare Advisor.

  7. Connection:

    • Clear calls-to-action (e.g., "Buy Now", "Learn More", "Show Your Support").

    • BarkBox Landing Page: Features options to start a subscription, gift a box, or leave a message for the company's cartoon dog avatar.

Search Engine Marketing (SEMSEM)

  • Organic Search:

    • Unpaid search engine result rankings determined by algorithm relevance to user-entered keywords.

  • Search Engine Marketing (SEMSEM):

    • Paid search strategies utilized by businesses to increase visibility on search engine results pages (SERPsSERPs).

    • Advertisers pay to rank higher in search listings and typically incur a fee per user click (Pay-Per-Click).

The Wheel of Social Media Engagement

  • The Information Effect:

    • Spreading contextually relevant information across a social network.

    • Facebook Shops: Allows small businesses to establish storefronts linked across Instagram, WhatsApp, and Messenger with cross-platform analytics.

  • The Connected Effect:

    • Satisfies the human need to connect through bidirectional sharing (check-ins, photos, videos, links).

    • National Geographic: Uses photographer-written captions on Instagram to build global connection.

    • Algorithm Controls: Facebook utilizes ranking signals based on past interactions, allowing users to prioritize favorites or unfollow accounts.

  • The Network Effect:

    • Exponential transfer of information across network connections every time content is posted or shared.

    • Influencer Amplification: CoverGirl has over 600,000600,000 followers on X, but brand ambassador Katy Perry has over 100,000,000100,000,000 followers, amplifying reach instantaneously.

  • The Dynamic Effect:

    • Active back-and-forth communication that resolves disputes and promotes engagement.

    • Accounts for individuals flowing in and out of specialized communities as their interests evolve over time (e.g., specialized water bottle interest groups).

  • The Timeliness Effect:

    • Engaging with customers at the right place and time (24/724/7 responsiveness).

    • 79%79\% of consumers expect a response to social media complaints within 24 hours24\,hours; 50%50\% will refuse to purchase if no response is given.

    • Average Facebook company response time is 1 hour 56 minutes1\,hour\,56\,minutes, whereas most users expect a response within 30 minutes30\,minutes.

Privacy Considerations and App Tracking

  • Apple iOS 14.5 Tracking Transparency Update:

    • Explicit pop-up prompts ask users for permission before allowing apps to track behavior across third-party sites.

    • Over 60%60\% of users opt out of app tracking.

    • Meta reported an estimated  10,000,000,000\,10,000,000,000 loss in ad revenue due to restricted tracking identifiers.

    • Competitor protests: Tile claimed Apple suppressed its device functionality relative to Apple AirTags; developers criticized App Store profit split practices.

Mobile Application Motivations and Revenue Models

  • Mobile Market Statistics:

    • 168,000,000168,000,000 US users made a mobile purchase in 20202020

    • Over 250,000,000,000250,000,000,000 global app downloads in 20222022

    •  167,000,000,000\,167,000,000,000 spent on mobile apps globally in 20222022

    • 98%98\% of total app revenue is generated from free-to-download apps.

    • McDonald's App: Serves 40,000,00040,000,000 registered users by offering incentives (e.g., free pastries or sandwiches) to lower labor costs and speed up drive-thru/curbside pick-up.

  • Seven Primary Needs Met by Mobile Apps:

    1. Me Time: Entertainment and relaxation (e.g., Call of Duty Mobile, Netflix's Stranger Things).

    2. Socialize: Connecting with others. BeReal utilizes a random 2 minute2\,minute window prompting front and back camera photos without edits, reaching 20,000,00020,000,000 daily active users.

    3. Accomplish: Fitness and health tracking (e.g., MapMyFitness integrating with Fitbit, Apple Watch, Garmin, Samsung Gear, and Under Armour smart shoes).

    4. Prepare: Scheduling and planning (e.g., Google Calendar linked with Gmail and Google Meet).

    5. Discover: News and info gathering (e.g., Apple News aggregating personalized stories).

    6. Self-Express: Sharing niche interests (e.g., Reddit interest groups).

    7. Shop: Purchasing goods and services (e.g., Grubhub).

  • Four Basic App Pricing Models:

    1. Ad-Supported Apps: Free to download; revenue generated via displayed advertisements.

    2. Freemium Apps: Free to download; features paid in-app purchases (e.g., Call of Duty Mobile earned  30,910,000\,30,910,000 in December 20222022 via point/gear purchases).

    3. Paid Apps: Upfront fee to download (most commonly $0.99\$0.99) for complete functionality.

    4. Paid Apps with In-App Purchases: Upfront fee to download plus options to buy additional features.

Digital Marketing Strategy: Listen, Analyze, Do

  1. Listen:

    • Monitoring customer conversations on social media, review sites, and blogs.

    • Sentiment Analysis: Distilling consumer comments to capture real-time attitudes and preferences using tools like Salesforce Einstein (used by US Bank, Room and Board, and Stonewall Kitchen).

    • Zappos Example: Listens to positive customer buzz to design customer service-focused campaigns.

  2. Analyze:

    • Traffic Metrics:

      • Hits: Total request count for a page.

      • Unique Visitors: Count of distinct individuals visiting the site.

      • Page Views: Number of individual pages viewed by visitors.

      • Scenario Example: If Sam visits once and Soul visits five times, there are 66 hits, 22 unique visitors, Sam has 11 page view, and Soul has 55 page views.

    • User Behavior Metrics:

      • Bounce Rate: Percentage of times a visitor leaves a site after viewing only one page.

      • Click Paths: Shows how users navigate through pages.

      • Conversion Rate: Percentage of visitors who take a targeted action (buying, clicking, donating).

    • Keyword and ROI Analysis:

      • Assessing search origins, demographics, and duration using tools like Google Analytics.

      • Evaluating Return on Investment (ROIROI) via incremental profit generated relative to digital expenditure.

  3. Do:

    • Executing social tactics based on analytics.

    • Taco Bell Examples: Instagram ARAR filters assigning menu items to user heads, a sassy persona on X with 2,000,0002,000,000 followers, and a sell-out branded Taco Bell Hotel popup.

  • Steps to Develop a Digital Marketing Campaign (e.g., Facebook):

    1. Identify Strategy and Goals: Establish core objectives (awareness, page likes, sales).

    2. Identify Target Audience: Define demographics, interests, and connections iteratively for different segments.

    3. Develop the Budget: Set daily spending caps; utilize management tools like Hootsuite for automated content scheduling.

    4. Develop the Campaign, Experiment, and Engage: Create high-quality visual copy with strong calls-to-action; update content continuously.

    5. Monitor and Change: Review metrics and modify elements to improve conversion rates and ROIROI.

Influencer Marketing and Ethical Considerations

  • Core Definition:

    • Influencer Marketing: Utilizing social media opinion leaders to drive messages to targeted audiences.

    • Approximately 75%75\% of marketers utilize influencer marketing.

    • Prominent influencers: Bretman Rock (18,500,00018,500,000 followers), Murad and Nathalie Osman (4,000,0004,000,000 followers), Massy Arias (2,700,0002,700,000 followers).

  • E-Commerce Live Streaming:

    • Real-time shopping broadcasts using hosts to showcase products.

    • Amazon Live: Influencers (e.g., Jasmine Pack, The Deal Guy) host streams and earn commission percentages on click-through purchases.

    • China Market: Live streaming accounts for  63,000,000,000\,63,000,000,000 in sales (9%9\% of China's online market); Chinese universities offer degrees in e-commerce live streaming.

    • TV Shopping Networks (HSN, QVC) host streams on platforms like Roku, YouTube TV, and Facebook Live.

  • Assessing Influencer Efficacy: The Four R's:

    1. Relevance: Alignment between the influencer, their followers, and the brand (e.g., Cristiano Ronaldo endorsing soccer boots or his personal cologne line).

    2. Reach: Percentage of a target population exposed to a message at least once (e.g., Selena Gomez's viral Coca-Cola Instagram post).

    3. Response: Specific actions taken by followers (likes, comments, or verified purchases).

    4. Return: Return on Investment (ROIROI) calculated as:      ROI=Revenue Earned−Cost of InfluencerCost of Influencer\text{ROI} = \frac{\text{Revenue Earned} - \text{Cost of Influencer}}{\text{Cost of Influencer}}

    • High-cost celebrity endorsements (e.g., Ronaldo for Jeep) vs. lower-cost micro-influencers (e.g., Loki the Wolfdog for Toyota SUVs).

  • Types of Influencers:

    • Categorized by role, expertise, channel preference, and audience size (Celebrity, Micro, Blog, Social Media, Specialized).

  • Ethical Considerations in Influencer Marketing:

    • Fraudulent Influence: Unethical use of click farms and automated bots to inflate follower counts, causing brands to overpay for fake non-purchasing accounts.

    • Disclosing Advertising Intent: The Federal Trade Commission (FTCFTC) mandates clear disclosures. Paid posts must display #ad as the first listed hashtag, and video/livestream content must include spoken audio disclosures.

    • Sincerity: Endorsements must be authentic. Fake promotions (such as a micro-influencer staging a pre-planned, brand-sponsored proposal as a spontaneous trip) damage consumer trust.