class 11

Principles of Marketing

Class 11: Digital Marketing

Leeds School of Business

UNIVERSITY OF COLORADO BOULDER

Spring 2026

Overview of Today's Topics

• Digital & Content Media

• Social Media

• Influencer Marketing

• Direct Marketing

• Future of Digital

Warm-Up Activity

• Question: What does your “digital footprint” look like?

  • Considerations from both the consumer and marketer perspectives.

The Role of Marketing

• Definition of Marketing: The process of putting the right product in the right place, at the right price, at the right time.

• Source for understanding: Slideplayer.com.

Digital Marketing Media Overview

Advantages of Digital Marketing

• ✔ Personalized & Tailored Messaging

• ✔ Traceability by Clicks / Cookies

• ✔ Search Engine Optimization (SEO) through Keywords

• ✔ Cost effective: Measured as Cost per Click (CPC)

Disadvantages of Digital Marketing

• ✔ Issues with Spamming and Hacking

• ✔ Risk of uncontrollable negative publicity (e.g., "Sh*** Storms")

• ✔ Digital presence is permanent (Lives on the Internet FOREVER)

Content Marketing

Purpose of Content Marketing

• Spans various media types to:

  • Deliver messages of interest and relevance.

  • Communicate a value proposition and offering.

  • Build relationships throughout the marketing funnel.

  • Reach consumers where they are or where they could be.

Social Media's Relation to Content Marketing

Types of Content Created for Social Media

• Educational content

• Inspirational content

• Interactive content

• Connecting content

• Promotional content

• Newsworthy content

• Entertaining content

Comparative Overview of Social Media Platforms

• Facebook:

  • Overall Usage: 89%

  • Important for Influencer Marketing: 60%

  • Used for Social Commerce: 21%

• Instagram:

  • Overall Usage: 80%

  • Important for Influencer Marketing: Specific metrics not mentioned.

  • Used for Social Commerce: Specific metrics not mentioned.

• YouTube:

  • Overall Usage: 46%

  • Important for Influencer Marketing & Used for Social Commerce: Specific metrics not mentioned.

• TikTok:

  • Overall Usage: Specific metrics not mentioned.

  • Important for Influencer Marketing & Used for Social Commerce: Specific metrics not mentioned.

• LinkedIn:

  • Overall Usage: Specific metrics not mentioned.

  • Important for Influencer Marketing & Used for Social Commerce: Specific metrics not mentioned.

• Pinterest:

  • Overall Usage: Specific metrics not mentioned.

  • Important for Influencer Marketing & Used for Social Commerce: Specific metrics not mentioned.

Investment Choices for Marketers

• Marketers must make investment choices based on their objectives and user engagement levels.

• Key Metric to Understand: Customer Engagement Rates (CER).

Privacy Concerns with Social Media

Usage and Data Privacy

• Many social media platforms utilize visitor information for:

  1. Their own marketing objectives.

  2. Selling user information to third-party companies.

• Example of Data Sold:

  • Purchase data, location, content preferences, financial information, etc.

• Fourteen different types of personal data are commonly sold by social media companies.

Influencer Marketing

Categories of Influencer Marketing

1. Paid Influencer Marketing:

   • Purpose: Drive scalable brand awareness and conversions through contracts and briefs with creators.

2. Organic Influencer Marketing:

   • Purpose: Build authentic brand awareness by providing products to creators to share organically.

3. Ambassador Influencer Marketing:

   • Purpose: Establish long-term brand advocacy through consistent representation by creators and community members.

TikTok Examples of Influencer Marketing

• Content mentions of products and engagement collaborations (e.g. @poppi with Alix Earle).

Perceived Credibility among Influencers

• Follower Count Classifications:

  • Nano-influencers: Fewer than 10,000 followers.

  • Micro-influencers: Fewer than 50,000 followers.

  • Macro-influencers: Between 500,000 to 1,000,000 followers.

  • Mega-influencers: More than 1,000,000 followers.

• Impact of Artificial Intelligence on Social Media:

  • Introduction of new content creation options.

  • Ability to create digital twins and synthetic personalities leading to authenticity concerns.

Vloggers as Power Players

Market Impact

• Online influencers, likened to celebrities in traditional media.

• Example: MrBeast with 260 million subscribers.

• Top 50 influential vloggers have a combined follower count of 2.6 billion and generate an estimated value of $700 million.

Influencer Demographic Insights

• Engagement Statistics from John Summit:

  • Gender Distribution:

  • Female: 29.7%

  • Male: 70.3%

  • Top Countries Engaging With Content:

  • United States: 41.4%

  • Brazil: 10.9%

  • United Kingdom: 8.8%

  • Italy: 2.8%

  • Spain: 2.7%

  • Age Distribution:

  • <18: 1.9%

  • 18-24: 20.3%

  • 25-34: 53.5%

  • 35-44: 20.4%

  • 45-64: 3.9%

  • >64: <0.05%

  • Interests include:

  • Music (58.8%)

  • Art & Design (33.8%)

  • Relationships (31.5%)

  • Travel and Photography.

In-Class Exercise Prompt

• Task: Choose a brand that John Summit would represent well as an influencer, providing a rationale supported by data.

Direct Marketing Practices

Evolution to Digital Marketing

• Focus on:

  • Customization of Messaging for 1-to-1 interactions.

  • Relationship building along the customer journey through database information.

  • Requires “Permission” for communication.

  • Cost-effective compared to indirect promotion methods.

Building Customer Relationships

• Customer Data Collection: Crucial for profile creation.

• Permission Marketing Strategies:

  • Options:

  • “Opt-In” method.

  • “Opt-Out” option available to consumers.

  • Effective Lead Generation Tactics.

Measuring Marketing Success

Performance Metrics Overview

• Cost Metrics: From Advertiser Perspectives:

  • Cost per Thousand (CPM):

  • Example: “I will pay $0.50 for every 1,000 ad loads, with a cap of $100 monthly.”

  • Usage: Preferred by advertisers seeking awareness.

  • Issues: Impressions don’t directly lead to sales.

  • Cost per Click (CPC):

  • Example: “I will pay $1 per unique visitor who clicks my ad.”

  • Usage: Executed mainly by third parties such as Google Ads.

  • Benefits: Ads display only if they are likely to lead to interest.

  • Issues: Potential mismatch with audience interests.

  • Cost per Action (CPA):

  • Example: “I will pay $5 for each purchase from an ad on your site.”

  • Usage: Typically through platforms like Google AdSense.

  • Benefits: Charged only for successful outcomes, but tracking can be complicated.

  • Issues: Higher costs and more difficulty in tracking performance.

Importance of Owned Media

Advantages of Consuming Owned Media

• Direct Control: Over content and operational procedures.

• Cost-Effectiveness: Eliminates intermediaries.

• Dynamic Utilization: Newly innovative ways of engaging with digital real estate.

Utility of Owned Channels

Case Studies of Successful Owned Media Strategies

• Wells Fargo:

  • Operates one of the largest consumer banks, servicing 70 million customers via stores and ATMs.

• CarMax:

  • Leading retailer of used cars, using a no-haggle sales policy.

• Ralph Lauren:

  • Enables custom shirt designs through their website.

• Dick's Sporting Goods:

  • Maintains year-round inventory for a variety of sports.

Types of Utility Offered:

• Time utility, Place utility, Form utility, Possession utility, and how they match with consumer needs.

The Future of Digital Marketing

Convergence of Real and Digital Experiences

1. Social Commerce Technologies:

   • Utilize Augmented Reality (AR) and Artificial Intelligence (AI).

2. Market Segmentation Tools:

   • Engage algorithms for effective database searches.

3. Mobile Device Applications:

   • Facilitate the merging of physical and digital interactions.

Enhanced Digital Marketing Actions

1. Growth of mobile marketing with interactive features.

2. Price-comparison technologies and the use of QR codes for interaction.

3. Location-based services using GPS for promotional activities.

4. Digital shopping as a blended experience between physical and online shopping environments.

5. Interactive displays that adjust based on user analysis (e.g., vending machines recognizing age and gender).

6. Integration of video games for additional engagement points for marketers.

Rising Privacy Concerns

Analysis of Data Collection Practices

• Privacy concerns are escalating due to the affected data:

  • Average of 6 trackers per top 10 social media apps.

  • Over 1,000 audience selectors predicting behavior.

  • Approximately 442 million individuals affected by data compromises each year.

  • 68% of internet users feel inadequately protected.

  • 86% utilize privacy technology to mask or remove their data.