Digital Marketing and Metrics | Lecture
Lecture 1: Setting The Scene
- Digital marketing is dynamic. Today managers need a better understanding of:
- How to strategically design online marketing activities
- How to analyse and evaluate the effectiveness of these on marketing activities
- Example exam questions from this session:
• What is the ZMOT?
• Is PLA better than Paid Search Ads?
• What is CLV and how can Digital Marketing contribute to CLV?
- Yesterday these were the drivers of marketing orientation... Today these are the drivers of digital
marketing transformation:
• Sales decline
• Slow growth
• Changing buying patterns
• Increasing competition
• Increasing marketing expenditures
The key is understanding consumer behaviour, in particular customer experience.
- The pyramids of needs today (i.e. the customer journey, where the digital dimension is entering):
- Question: Test your knowledge: can you provide a few examples of:
• Brand-owned touch points?
• Partner-owned touch points?
• Consumers-owned touch points?
Answer on p. 77-78 in Lemon & Verhoef (2016)
1
,- Digital Marketing along the customer journey:
- Question: Can customer experience be poor, if the individual touchpoint perform well?
This simple question is at the base of the difference between Multichannel and Omnichannel.
- Multichannel is the design, deployment, coordination and evaluation of the different channels
through which the marketer acquires, retains and develops customers (Neslin et al., 2006). Focus
on managing and optimising the performance of each channel.
- Omnichannel is the design, deployment, coordination and evaluation across the different channels
through which the marketer acquires, retains and develops customers. Integrating activities
across channels to correspond to how consumers shop.
- Question: When we refer to channels, do we mean:
A. Channels of Distribution
B. Channels of Communication
C. Both
- Research shoppers are defined as customers that search in one channel and purchase in
another... 43% of all shoppers (Neslin et al., 2016).
- Question: Can you recall form the paper of Lemon & Verhoef (2016):
- What is showrooming?
- What is webrooming?
- Why is it relevant, in your opinion, to know more about these behaviours? (Answer on page 80
2
, in Lemon & Verhoef, 2016; attribution issues, see Anderl et al., 2016)
- What are the drivers of search?
- Major developments in digital marketing are related to paid Internet Advertising and eWOM,
hence our focus on these topics. Understanding the effects of both advertising and WOM (and the
proper metrics to assess them) has always been important. What is new?
The medium itself is different: ....interactive, ubiquitous, customizable, traceable...
- When we talk about Online Advertising we refer to:
• Paid Search Ads
• Banner Ads
Search is at the core of marketing (together with price and distribution). It defines the zero
moment of truth (ZMOT). See videos about Winning the Zero Moment of Truth: https://
www.youtube.com/watch?v=PzNbPLD-V2Y
- Why is the ZMOT relevant? For Search Engines (Google Superbowl ad, 2010)? For Brands?
One important underestimated aspect is the link between ZMOT/search & distribution = the
problem is that brands rely on partner touchpoints.
- Today's challenge → examples from grocery retailers. Challenge = selecting the right
combination of metrics to monitor and manage distribution (Ailawadi & Farris, 2017). Example
of Tesco, South Korea (2011): https://www.youtube.com/watch?v=fGaVFRzTTP4
- Learnings from Ailawadi & Farris (2017): What is the digital distribution breadth of Nike?
(Breadth: how easy is it to find an outlet that sells Nike):
• How many outlets? How important (in the category)?
• How important are our distribution outlets? Traffic (Reach and Frequency)
• How easy is it to find the product?
Question: Reflect on why distribution breadth is important for search engine optimisation and
advertising.
• How many, how important, and how findable/shopable:
3
, • Learnings from Ailawadi & Farris (2017):
4
Lecture 1: Setting The Scene
- Digital marketing is dynamic. Today managers need a better understanding of:
- How to strategically design online marketing activities
- How to analyse and evaluate the effectiveness of these on marketing activities
- Example exam questions from this session:
• What is the ZMOT?
• Is PLA better than Paid Search Ads?
• What is CLV and how can Digital Marketing contribute to CLV?
- Yesterday these were the drivers of marketing orientation... Today these are the drivers of digital
marketing transformation:
• Sales decline
• Slow growth
• Changing buying patterns
• Increasing competition
• Increasing marketing expenditures
The key is understanding consumer behaviour, in particular customer experience.
- The pyramids of needs today (i.e. the customer journey, where the digital dimension is entering):
- Question: Test your knowledge: can you provide a few examples of:
• Brand-owned touch points?
• Partner-owned touch points?
• Consumers-owned touch points?
Answer on p. 77-78 in Lemon & Verhoef (2016)
1
,- Digital Marketing along the customer journey:
- Question: Can customer experience be poor, if the individual touchpoint perform well?
This simple question is at the base of the difference between Multichannel and Omnichannel.
- Multichannel is the design, deployment, coordination and evaluation of the different channels
through which the marketer acquires, retains and develops customers (Neslin et al., 2006). Focus
on managing and optimising the performance of each channel.
- Omnichannel is the design, deployment, coordination and evaluation across the different channels
through which the marketer acquires, retains and develops customers. Integrating activities
across channels to correspond to how consumers shop.
- Question: When we refer to channels, do we mean:
A. Channels of Distribution
B. Channels of Communication
C. Both
- Research shoppers are defined as customers that search in one channel and purchase in
another... 43% of all shoppers (Neslin et al., 2016).
- Question: Can you recall form the paper of Lemon & Verhoef (2016):
- What is showrooming?
- What is webrooming?
- Why is it relevant, in your opinion, to know more about these behaviours? (Answer on page 80
2
, in Lemon & Verhoef, 2016; attribution issues, see Anderl et al., 2016)
- What are the drivers of search?
- Major developments in digital marketing are related to paid Internet Advertising and eWOM,
hence our focus on these topics. Understanding the effects of both advertising and WOM (and the
proper metrics to assess them) has always been important. What is new?
The medium itself is different: ....interactive, ubiquitous, customizable, traceable...
- When we talk about Online Advertising we refer to:
• Paid Search Ads
• Banner Ads
Search is at the core of marketing (together with price and distribution). It defines the zero
moment of truth (ZMOT). See videos about Winning the Zero Moment of Truth: https://
www.youtube.com/watch?v=PzNbPLD-V2Y
- Why is the ZMOT relevant? For Search Engines (Google Superbowl ad, 2010)? For Brands?
One important underestimated aspect is the link between ZMOT/search & distribution = the
problem is that brands rely on partner touchpoints.
- Today's challenge → examples from grocery retailers. Challenge = selecting the right
combination of metrics to monitor and manage distribution (Ailawadi & Farris, 2017). Example
of Tesco, South Korea (2011): https://www.youtube.com/watch?v=fGaVFRzTTP4
- Learnings from Ailawadi & Farris (2017): What is the digital distribution breadth of Nike?
(Breadth: how easy is it to find an outlet that sells Nike):
• How many outlets? How important (in the category)?
• How important are our distribution outlets? Traffic (Reach and Frequency)
• How easy is it to find the product?
Question: Reflect on why distribution breadth is important for search engine optimisation and
advertising.
• How many, how important, and how findable/shopable:
3
, • Learnings from Ailawadi & Farris (2017):
4
