Digital marke,ng analys,cs
Lecture 1 – introduc,on
Marke'ng is defined as:
The ac'vity, set of ins'tu'ons, and processes for crea'ng, communica'ng, delivering, and
exchanging offerings that have value for customers clients, partners and society at large.
Online marke'ng is defined as:
Term referring to the internet and e-mail-based aspects of a marke'ng campaign. Can
incorporate banner ads, e-mail marke'ng, search engine op'miza'on, e-commerce and
other tools.
Digital marke'ng according to the financial 'mes is:
- The marke'ng of products or services using digital channels to reach consumers. The
key objec've is to promote brands through various forms of digital media.
- Digital marke'ng extends beyond internet marke'ng to include channels that do not
require the use of the internet. It includes mobile phones, social media marke'ng,
display adver'sing, search engine marke'ng, and any other form of digital media.
Moore’s Law
States that the number of transistors in a dense integrated circuit doubles approximately
every two years.
Also applies to many other (digital) electronics, such as quality-adjusted microprocessor
prices, memory capacity, sensors and even the number and size of pixels in digital cameras.
Result is that the digital possibili'es grow exponen'ally.
,There is a rapid increase in internet penetra'on, first in the developed world, later also in the
developing world. Likely that the developing world will catch up or even skip phases
(speaking of the law of the handicap of a head start).
Big data analy'cs: geQng insight into customers
Data is not a goal in itself
Market share of online retailing growing
online retailing wins market share from tradi'onal retailing. There is quite a large difference
between categories. Also a large difference between countries.
,Research possibili,es in digital marke,ng
Digital marke'ng has some advantages in terms of conduc'ng marke'ng research:
More and richer data is available.
- In tradi'onal retailing, data usually is collected through store scanners or via surveys.
- Disadvantage of this is that the impact of marke'ng decisions (e.g. pricing, displays,
adver'sing) can only be inves'gated at the aggregate level.
- The amount of usable observa'ons is therefore limited.
- In online retailing individual customers, the (marke'ng) contacts they had and their
shopping baskets can be inves'gated.
- With tradi'onal (mass) adver'sing, only informa'on is available on the reach and
impact of the campaign at the aggregate level.
- For online adver'sing, you can more closely inves'gate which customers have been
reached and how this changed their behavior.
- Customers can be tracked individually through their different stages through cookies
and other tracking techniques (e.g. clickstream data).
- Rela'vely easy to do large scale A/B tes'ng (e.g. groups of customers see different
versions of a website, receive different mails, or get different display ads).
- Empirically inves'gate word-of-mouth through social media, mobile communica'on,
etc.
, Lecture 2 – online adver,sing
Forms of online adver,sing
There are many different forms of online adver'sing available:
- Email adver'sing
- Display banner adver'sing (pop up screen or banner at top of screen)
- Search engine adver'sing
- Retarge'ng (Zalando, puQng up ads of ar'cles you’ve looked up before)
- Affiliate programs (Amazon, if you help us get a customer in, you get a reward)
- Online video ads (on social media, on many different forms)
Compensa,on methods
Adver'sers pay the content provider for the adver'sement space
In tradi'onal (mass) media the costs of an adver'sement or commercial depends on a few
factors:
- Type of adver'sement (print, sound, video)
- Size and posi'on of the adver'sement
- The audience size (reach)
- The target group (e.g. broad vs specific)
- The quan'ty
For online adver'sing there are a few different payment schemes, including:
- Cost per mille (CPM): amount to be paid per 1.000 ad impressions.
- Cost per click (CPC): amount to be paid per click on an ad.
- Cost per ac'on/acquisi'on (CPA): amount to be paid (or a share of revenue) when a
click on the ad led to a certain ac'on (e.g. filling in a form, buying a certain product or
subscribing to a service).
Average CPM of different media
Lecture 1 – introduc,on
Marke'ng is defined as:
The ac'vity, set of ins'tu'ons, and processes for crea'ng, communica'ng, delivering, and
exchanging offerings that have value for customers clients, partners and society at large.
Online marke'ng is defined as:
Term referring to the internet and e-mail-based aspects of a marke'ng campaign. Can
incorporate banner ads, e-mail marke'ng, search engine op'miza'on, e-commerce and
other tools.
Digital marke'ng according to the financial 'mes is:
- The marke'ng of products or services using digital channels to reach consumers. The
key objec've is to promote brands through various forms of digital media.
- Digital marke'ng extends beyond internet marke'ng to include channels that do not
require the use of the internet. It includes mobile phones, social media marke'ng,
display adver'sing, search engine marke'ng, and any other form of digital media.
Moore’s Law
States that the number of transistors in a dense integrated circuit doubles approximately
every two years.
Also applies to many other (digital) electronics, such as quality-adjusted microprocessor
prices, memory capacity, sensors and even the number and size of pixels in digital cameras.
Result is that the digital possibili'es grow exponen'ally.
,There is a rapid increase in internet penetra'on, first in the developed world, later also in the
developing world. Likely that the developing world will catch up or even skip phases
(speaking of the law of the handicap of a head start).
Big data analy'cs: geQng insight into customers
Data is not a goal in itself
Market share of online retailing growing
online retailing wins market share from tradi'onal retailing. There is quite a large difference
between categories. Also a large difference between countries.
,Research possibili,es in digital marke,ng
Digital marke'ng has some advantages in terms of conduc'ng marke'ng research:
More and richer data is available.
- In tradi'onal retailing, data usually is collected through store scanners or via surveys.
- Disadvantage of this is that the impact of marke'ng decisions (e.g. pricing, displays,
adver'sing) can only be inves'gated at the aggregate level.
- The amount of usable observa'ons is therefore limited.
- In online retailing individual customers, the (marke'ng) contacts they had and their
shopping baskets can be inves'gated.
- With tradi'onal (mass) adver'sing, only informa'on is available on the reach and
impact of the campaign at the aggregate level.
- For online adver'sing, you can more closely inves'gate which customers have been
reached and how this changed their behavior.
- Customers can be tracked individually through their different stages through cookies
and other tracking techniques (e.g. clickstream data).
- Rela'vely easy to do large scale A/B tes'ng (e.g. groups of customers see different
versions of a website, receive different mails, or get different display ads).
- Empirically inves'gate word-of-mouth through social media, mobile communica'on,
etc.
, Lecture 2 – online adver,sing
Forms of online adver,sing
There are many different forms of online adver'sing available:
- Email adver'sing
- Display banner adver'sing (pop up screen or banner at top of screen)
- Search engine adver'sing
- Retarge'ng (Zalando, puQng up ads of ar'cles you’ve looked up before)
- Affiliate programs (Amazon, if you help us get a customer in, you get a reward)
- Online video ads (on social media, on many different forms)
Compensa,on methods
Adver'sers pay the content provider for the adver'sement space
In tradi'onal (mass) media the costs of an adver'sement or commercial depends on a few
factors:
- Type of adver'sement (print, sound, video)
- Size and posi'on of the adver'sement
- The audience size (reach)
- The target group (e.g. broad vs specific)
- The quan'ty
For online adver'sing there are a few different payment schemes, including:
- Cost per mille (CPM): amount to be paid per 1.000 ad impressions.
- Cost per click (CPC): amount to be paid per click on an ad.
- Cost per ac'on/acquisi'on (CPA): amount to be paid (or a share of revenue) when a
click on the ad led to a certain ac'on (e.g. filling in a form, buying a certain product or
subscribing to a service).
Average CPM of different media
