Online Marketing in E-Commerce
Every business requires spreading of their goods as well as services as much as possible through marketing efforts. If a business is technical sound but not in marketing out, it would not remain successful for a long. Almost every business needs a great support of marketing activities. Now-a-days, trends of marketing are changed from its roots. A good publicity of your business will ultimately be fruitful to gain handful profit. We have to understand an easy fact that the way of promoting business has gone through lots of changes and all those are focused for betterment of a business. One of the effective businesses promoting ways of modern time is online marketing. Search engine marketing, email marketing, social media marketing, online advertising and public relationship are the different forms of online marketing in e-commerce.
While few “Giant” companies are applying this method to make their business reach to a larger customer worldwide, numerous companies are still in the darkness regarding effective online marketing technique. All companies need to understand an application of latest electronic technology in their marketing too. Internet technologies in marketing can provide long lasting success stories for a business. online marketing is a tool to approach customers quickly and easily. This tool is convenient, cost effective, trendy as well as easily manageable.
Affiliate Marketing :
In this particular way of marketing practice the owner of the business pays the retailer, e-commerce sites or blogs for each visitors they fetch and sales they make on behalf of the brand.
The advertiser here can be referred as merchant or seller, and the publisher as affiliate. Advertiser will place an ad on the website of publisher to offer the goods & services or services. Website of publisher usually has a lot of populace visit it. If it can draw those online visitors to purchase something from the advertiser, advertiser will pay a commission fee in return for that. It is a way to do business based on revenue sharing between two parties, and both of them gain the benefits. Affiliate marketing is an efficient and effective method of online partnership.
A typical instance in this kind of marketing is Amazon Business, which is a pioneer in the use of affiliate marketing. Amazon has started to apply the Associates Program in July 1996. Until now, a lot of advertisers place an ad in the Amazon website to sell their goods. The goods diversify from books, DVD, computer software, electronics to food and apparel, etc.
E-mail Marketing in Online Marketing :
Email marketing is the act of sending a commercial message, typically to a group of people, using email. In its broadest sense, every email sent to a potential or current customer could be considered email marketing. It usually involves using email to send advertisements, request business, or solicit sales or donations, and is meant to build loyalty, trust, or brand awareness. Marketing emails can be sent to a purchased lead list or a current customer database. The term usually refers to sending email messages with the purpose of enhancing a merchant’s relationship with current or previous customers, encouraging customer loyalty and repeat business, acquiring new customers or convincing current customers to purchase something immediately, and sharing third-party ads.
Email marketing can be carried out through different types of emails:
Transactional Emails :
Transactional emails are usually triggered based on a customer’s action with a company. To be qualified as transactional or relationship messages, these communications’ primary purpose must be “to facilitate, complete, or confirm a commercial transaction that the recipient has previously agreed to enter into with the sender” along with a few other narrow definitions of transactional messaging. Triggered transactional messages include dropped basket messages, password reset emails, purchase or order confirmation emails, order status emails, reorder emails, and email receipts.
The primary purpose of a transactional email is to convey information regarding the action that triggered it. But, due to their high open rates (51.3% compared to 36.6% for email newsletters), transactional emails are an opportunity to introduce or extend the email relationship with customers or subscribers; to anticipate and answer questions; or to cross-sell or up-sell products or services.
Direct Emails :
Direct email involves sending an email solely to communicate a promotional message (for example, a special offer or a product catalog). Companies usually collect a list of customer or prospect email addresses to send direct promotional messages to, or they rent a list of email addresses from service companies.
Comparison to Traditional mail :
There are both advantages and disadvantages to using email marketing in comparison to traditional advertising mail.
Email marketing is popular with companies for several reasons:
- Email marketing is significantly cheaper and faster than traditional mail, mainly because with email, most of the cost falls on the recipient.
- Businesses and organizations who send a high volume of emails can use an ESP (email service provider) to gather information about the behavior of the recipients. The insights provided by consumer response to email marketing help businesses and organizations understand and make use of consumer behavior.
- Almost half of American Internet users check or send email on a typical day, with emails delivered between 1 am and 5 am local time outperforming those sent at other times in open and click rates.
As of mid-2016 email deliverability is still an issue for legitimate marketers. According to the report, legitimate email servers averaged a delivery rate of 73% in the U.S.; six percent were filtered as spam, and 22% were missing. This lags behind other countries: Australia delivers at 90%, Canada at 89%, Britain at 88%, France at 84%, Germany at 80% and Brazil at 79%.
Additionally, consumers receive on average about 90 emails per day.
Companies considering the use of an email marketing program must make sure that their program does not violate spam laws such as the United States’ Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM), the European Privacy and Electronic Communications Regulations 2003, or their Internet service provider’s acceptable use policy.
Display Advertising in Online Marketing:
In simple words, it involves the advertising banners that are displayed on the websites or blogs just in order to increase the traffic for their website which in turn increase the product awareness as well. This advertising concept is followed by some relevant steps as well.
- Text Link: Through this technology, the contents of website are scanned and realized what it is all about. After it is understood, relevant and high contextual advertises will be displayed next to the specific journals. Text-based hyperlinks will also be there. The text link may also be displayed from a web page’s primary content, separately.
- Video Presentation: It is a very effective and important tool of advertising. It signifies a video content representing what content or site is all about. A relevant video presentation will clarify the fact more quickly to the customers than anything else.
- Image Advertising: The importance of image advertising is also undeniable in this regards. This way business can use a significant image to highlight the specifications of your service or products or general perception instead of describing the functional attributes.
Search Engine Marketing in Online Marketing:
Search engine marketing (SEM) is a form of Internet marketing that involves the promotion of websites by increasing their visibility in search engine results pages (SERPs) primarily through paid advertising. SEM may incorporate search engine optimization (SEO), which adjusts or rewrites website content and site architecture to achieve a higher ranking in search engine results pages to enhance pay per click (PPC) listings.
Methods and metrics :
Search engine marketing uses at least five methods and metrics to optimize websites.
1. Keyword research and analysis involves three “steps”: ensuring the site can be indexed in the search engines, finding the most relevant and popular keywords for the site and its products, and using those keywords on the site in a way that will generate and convert traffic.A follow-on effect of keyword analysis and research is the search perception impact. Search perception impact describes the identified impact of a brand’s search results on consumer perception, including title and meta tags, site indexing, and keyword focus. As online searching is often the first step for potential consumers/customers, the search perception impact shapes the brand impression for each individual.
2. Website saturation and popularity, or how much presence a website has on search engines, can be analyzed through the number of pages of the site that are indexed by search engines (saturation) and how many backlinks the site has (popularity). It requires pages to contain keywords people are looking for and ensure that they rank high enough in search engine rankings. Most search engines include some form of link popularity in their ranking algorithms. The following are major tools measuring various aspects of saturation and link popularity: Link Popularity, Top 10 Google Analysis, and Marketleap’s Link Popularity and Search Engine Saturation.
There are three major tools used by EBSCO:
(a) log file analyzing tool WebTrends by NetiQ;
(b) tag-based analytic tool: WebSideStory’s Hitbox; and
(c) transaction-based tool: Tealeaf RealiTea.
Validators check the invisible parts of websites, highlighting potential problems and many usability issues and ensuring websites meet W3C code standards. Try to use more than one HTML validator or spider simulator because each one tests, highlights, and reports on slightly different aspects of your website.
4. Whois tools reveal the owners of various websites and can provide valuable information relating to copyright and trademark issues.
5. Google Mobile-Friendly Website Checker: This test will analyze a URL and report if the page has a mobile-friendly design.
Search Engine Advertising in Online Marketing :
Search engine marketing is a way to create and edit a website so that search engines rank it higher than other pages. It should also focus on keyword marketing or pay-per-click advertising (PPC). The technology enables advertisers to bid on specific keywords or phrases and ensures ads appear with the results of search engines.
With the development of this system, the price is growing under the high level of competition. Many advertisers prefer to expand their activities, including increasing search engines and adding more keywords. The more advertisers are willing to pay for clicks, the higher the ranking for advertising, which leads to higher traffic. PPC comes at a cost. The higher position is likely to cost $5 for a given keyword, and $4.50 for a third location. A third advertiser earns 10% less than the top advertiser, while reducing traffic by 50%. The investors must consider their return on investment and then determine whether the increase in traffic is worth the increase.
Google’s search engine marketing is one of the western world’s marketing leaders, while its search engine marketing is its biggest source of profit.Google’s search engine providers are clearly ahead of the Yahoo and Bing network. The display of unknown search results is free, while advertisers are willing to pay for each click of the ad in the sponsored search results.
Comparison with SEO :
SEM is the wider discipline that incorporates SEO. SEM includes both paid search results (using tools like Google AdWords or Bing Ads, formerly known as Microsoft adCenter) and organic search results (SEO). It uses paid advertising with AdWords or Bing Ads, pay per click (particularly beneficial for local providers as it enables potential consumers to contact a company directly with one click), article submissions, advertising and making sure SEO has been done. A keyword analysis is performed for both SEO and SEM, but not necessarily at the same time. SEM and SEO both need to be monitored and updated frequently to reflect evolving best practices.
In some contexts, the term SEM is used exclusively to mean pay per click advertising, particularly in the commercial advertising and marketing communities which have a vested interest in this narrow definition. Such usage excludes the wider search marketing community that is engaged in other forms of SEM such as search engine optimization and search retargeting.
Social Media Marketing in Online Marketing:
Social media marketing is the use of social media platforms and websites to promote a product or service. Although the terms e-marketing and digital marketing are still dominant in academia, social media marketing is becoming more popular for both practitioners and researchers.Most social media platforms have built-in data analytics tools, which enable companies to track the progress, success, and engagement of ad campaigns. Companies address a range of stakeholders through social media marketing, including current and potential customers, current and potential employees, journalists, bloggers, and the general public. On a strategic level, social media marketing includes the management of a marketing campaign, governance, setting the scope (e.g. more active or passive use) and the establishment of a firm’s desired social media “culture” and “tone.”
When using social media marketing, firms can allow customers and Internet users to post user-generated content (e.g., online comments, product reviews, etc.), also known as “earned media,” rather than use marketer-prepared advertising copy.
Social networking websites :
Social networking websites allow individuals, businesses and other organizations to interact with one another and build relationships and communities online. When companies join these social channels, consumers can interact with them directly. That interaction can be more personal to users than traditional methods of outbound marketing and advertising. Social networking sites act as word of mouth or more precisely, e-word of mouth. The Internet’s ability to reach billions across the globe has given online word of mouth a powerful voice and far reach.
Purposes and Tactics of Online Marketing :
One of the main purposes of employing social media in online marketing is as a communications tool that makes the companies accessible to those interested in their product and makes them visible to those who have no knowledge of their products. These companies use social media to create buzz, and learn from and target customers. It’s the only form of online marketing that can finger consumers at each and every stage of the consumer decision journey. Marketing through social media has other benefits as well. Of the top 10 factors that correlate with a strong Google organic search, seven are social media dependent.
This means that if brands are less or non-active on social media, they tend to show up less on Google searches. While platforms such as Twitter, Facebook, and Google+ have a larger number of monthly users, the visual media sharing based mobile platforms, however, garner a higher interaction rate in comparison and have registered the fastest growth and have changed the ways in which consumers engage with brand content. Instagram has an interaction rate of 1.46% with an average of 130 million users monthly as opposed to Twitter which has a .03% interaction rate with an average of 210 million monthly users. Unlike traditional media that are often cost-prohibitive to many companies, a social media strategy does not require astronomical budgeting.
Twitter allows companies to promote their products in short messages known as tweets limited to 140 characters which appear on followers’ Home timelines. Tweets can contain text, Hashtag, photo, video, Animated GIF, Emoji, or links to the product’s website and other social media profiles, etc. Twitter is also used by companies to provide customer service. Some companies make support available 24/7 and answer promptly, thus improving brand loyalty and appreciation.
Facebook pages are far more detailed than Twitter accounts. They allow a product to provide videos, photos, longer descriptions, and testimonials where followers can comment on the product pages for others to see. Facebook can link back to the product’s Twitter page, as well as send out event reminders. As of May 2015, 93% of businesses marketers use Facebook to promote their brand. A study from 2011 attributed 84% of “engagement” or clicks and likes that link back to Facebook advertising. By 2014, Facebook had restricted the content published from business and brand pages. Adjustments in Facebook algorithms have reduced the audience for non-paying business pages (that have at least 500,000 “Likes”) from 16% in 2012 down to 2% in February 2014.
LinkedIn, a professional business-related networking site, allows companies to create professional profiles for themselves as well as their business to network and meet others. Through the use of widgets, members can promote their various social networking activities, such as Twitter stream or blog entries of their product pages, onto their LinkedIn profile page.
LinkedIn provides its members the opportunity to generate sales leads and business partners. Members can use “Company Pages” similar to Facebook pages to create an area that will allow business owners to promote their products or services and be able to interact with their customers. Due to spread of spam mail sent to job seeker, leading companies prefer to use LinkedIn for employee’s recruitment instead using different a job portal. Additionally, companies have voiced a preference for the amount of information that can gleaned from a LinkedIn profile, versus a limited email.
WhatsApp in Online Marketing:
It was founded by Jan Koum and Brian Acton. WhatsApp joined Facebook in 2014, but continues to operate as a separate app with a laser focus on building a messaging service that works fast and reliably anywhere in the world. It started as an alternative to SMS. Whatsapp now supports sending and receiving a variety of media including text, photos, videos, documents, and location, as well as voice calls Whatsapp messages and calls secured with end-to-end encryption, meaning that no third party including WhatsApp can read or listen to them.
Yelp consists of a comprehensive online index of business profiles. Businesses are searchable by location, similar to Yellow Pages. The website is operational in seven different countries, including the United States and Canada. Business account holders allowed to create, share, and edit business profiles. They may post information such as the business location, contact information, pictures, and service information. The website further allows individuals to write, post reviews about businesses, and rate them on a five-point scale. Messaging and talk features further made available for general members of the website serving to guide thoughts and opinions.
In May 2014, Instagram had over 200 million users. The user engagement rate of Instagram was 15 times higher than of Facebook; and 25 times higher than that of Twitter. According to Scott Galloway, the founder of L2 and a professor of marketing at New York University’s Stern School of Business; latest studies estimate that 93% of prestige brands have an active presence on Instagram; and include it in their marketing mix. When it comes to brands and businesses; Instagram’s goal is to help companies to reach their respective audiences; through captivating imagery in a rich, visual environment. Moreover, Instagram provides a platform where user and company can communicate publicly and directly; making itself an ideal platform for companies to connect with their current and potential customers.
Snapchat is a popular messaging and picture exchanging application; created in 2011 by three students at Stanford University named Evan Spiegel; Bobby Murphy, and Reggie Brown. The application was first developed to allow users to message back and forth; and to also send photographs that are only available from 1–10 seconds until they are no longer available. The app was an instant hit with social media members and today there are up to 158 million people; using snapchat every single day. Also estimated that Snapchat users are opening the application approximately 18 times per day; which means users are on the app for about 25-30 minutes per day.
YouTube is another popular avenue; advertisements done in a way to suit the target audience. The type of language used in the commercials and the ideas; used to promote the product reflect the audience’s style and taste. Also, the ads on this platform usually in sync with the content of the video requested; this is another advantage YouTube brings for advertisers. Certain ads presented with certain videos since the content is relevant. Promotional opportunities such as sponsoring a video is also possible on YouTube; “for example, a user who searches for a YouTube video on dog training may presented with a sponsored video; from a dog toy company in results along with other videos”. YouTube also enable publishers to earn money through its YouTube Partner program. Companies can pay YouTube for a special “channel” which promotes the companies products or services.
Social bookmarking sites :
Websites such as Delicious, Digg, Slashdot, Diigo, StumbleUpon, and Reddit are popular social bookmarking sites used in social media promotion. Each of these sites dedicated to the collection, curation; and organization of links to other websites that users deem to be of good quality. This process “crowdsourced“, allowing amateur social media network members; to sort and prioritize links by relevance and general category. Due to the large user bases of these websites, any link from one of them to another; the smaller website may in a flash crowd, a sudden surge of interest in the target website. In addition to user-generated promotion, these sites also offer advertisements within individual user communities and categories.
Platforms like LinkedIn create an environment for companies and clients to connect online. Companies that recognize the need for information; originality/ and accessibility employ blogs to make their products popular and unique; and ultimately reach out to consumers who are privy to social media. Studies from 2009 show that consumers view coverage in the media; or from bloggers as being more neutral and credible than print advertisements; not thought of as free or independent. Blogs allow a product or company to provide longer descriptions of products or services; can include testimonials and can link to and from other social media network and blog pages.
Blogs can updated frequently and are promotional techniques for keeping customers; and also for acquiring followers and subscribers who can then directed to social network pages. Online communities can enable a business to reach the clients of other businesses using the platform. To allow firms to measure their standing in the corporate world, sites enable employees to place evaluations of their companies.
Blogging website Tumblr first launched ad products on May 29, 2012. Rather than relying on simple banner ads; Tumblr requires advertisers to create a Tumblr blog so the content of those blogs can feature on the site. In one year, four native ad formats created on web and mobile; and had more than 100 brands advertising on Tumblr with 500 cumulative sponsored posts.
Mobile Advertising in Online Marketing:
Mobile advertising is a form of advertising via mobile (wireless) phones or other mobile devices. It is a subset of mobile marketing. Estimated that mobile app-installed ads accounted for 30% of all mobile advertising revenue in 2014; and will top $4.6bn in 2016, and over $6.8bn by the end of 2019. Other ways mobile advertising can purchased include working with a Mobile Demand Side Platform; in which ad impressions bought in real-time on an Ad exchange. Another report has indicated that worldwide mobile digital advertising spend would reach $184.91 bn in 2018; $217.42 bn in 2019 and $247.36 bn in 2020.
Types of mobile ads
- Click-to-download ads: The user will directed to the Appstore or Google Play
- Click-to-call ads: The user will call to a phone number after clicking the button.
- Image text and banner ads: A click opens your browser and re-directs you to a page
- Push notification
Mobile as media in Online Marketing:
This unobtrusive three-way communications caught the attention of media industry and advertisers as well as cellphone makers and telecom operators. Usually, Text SMS became a new media. Called the “third mass media channel” by several media and mobile experts . And even more, it is a no-way mobile media; as supposed to neither imobile or any other media like radios, newspapers and TV. Besides, the immediacy of responsiveness in this two-way media is a new territory for media industry and advertisers; who are eager to measure up market response immediately.