Internet Marketing Traffic and Brand Building Topics • Smart browsing • Traffic as value • Traffic through visibility – Domain branding – Managing your portal presence – Publicity and word of mouth • Paying for traffic – Alliance and co-branding – Online ads • Evaluating traffic sources Traffic as Value Value and Scarcity • Value is based on scarcity of supply, not necessarily benefits • The supply of Web content is growing faster than the number of users • While the volume of online material provides ever-increasing value to network users, the the battle for attention is severe Headline Publication & Date Paraphrase current articles on the battle for traffic Traffic as Value Elements of a Web Traffic Plan • Acquiring traffic is expensive Domain Name/Brand • And critical to Web marketing success • First step: make the site easy to find by new users • The steps in Figure 9.3 build on each other Search & Directory Destination Site External Links Publicity Paid Advertising Fig. 9.3: Sources of Traffic Traffic as Value Elements of a Web Traffic Plan • Retaining traffic is profitable • Site loyalty dramatically lowers the cost of maintaining web site traffic • Fewer new users must be attracted to maintain a profitable user base Table 9.2 The Value of Loyalty in Building Traffic Time Needed to Reach 100,000 Montly Retention Rate Advertising Cost Active Users 100% $70,000 2.5 months 95% $80,000 3 months 90% $100,000 4 months 85% $140,000 6 months 80% $380,000 19 months to exeed 99,000 75% ** Can't reach Traffic as Value Elements of a Web Traffic Plan Developing Traffic Requires Value • Visit duration is the online equivalent to time in a store • Long visit duration allows: – More time to communicate the message of the site – Additional opportunities to engage in commerce – More chances to build commitment and loyalty – Exposure to more advertising or alliance partner impression Traffic as Value Elements of a Web Traffic Plan • Visit duration is a good measure of customer value Cumulative Prob. 100% 80% 60% 40% 20% 0% 0 20 40 60 80 100 L = Length of user's visit measured in # of page views Figure 9.4 – Length of Time Visitors Spend on the Xerox Company Web Site • The higher the value of a site, the longer the duration of visits Traffic Through Visibility Traffic Builders: Domain Names • A domain name is the address a customer uses to find your site • Poorly chosen names can hinder success • Once chosen, domain names can be difficult to change without significant expense • A domain name strategy should – Reinforce branding – Build traffic – Anticipate consumer behavior and mistakes Traffic Through Visibility Traffic Builders: Domain Names Figure 9.6: Three Different Ways of Getting to the Coca-Cola Homepage Traffic Through Visibility Guidelines for Effective Domain Names Domain Naming Goals Benefits Obtain a Category Domain If a small or little known firm can secure a category item, it may be www.jeans.com able to launch an effective online business. Avoid Domains Challenging to Avoid confusing and hard-to-keep-straight domains. Domains should Encode www.geens4u.com be memorable from both visual and sound cues. Consumers may need to store this in memory from a radio or billboard ad. Avoid Long and Complicated Third-party hosting should not be an excuse to avoid domain Domains from Third-Party registration. This will cause a problem with user recall. Hosing Arrangements www.aol.com/jeans/ Avoid Automatic CGI Clutter - Some systems store the location of the originating page as a keyword Especially the Homepage in the address. This can confuse users, limit word of mouth, and look Table 9.4 www.jeans.com/cgi-bin/abc123 strange. Register Related Items and The cost of registering domain names is trivial compared to the cost Common Typos of acquiring traffic. Registering related names, and even common www.bluejeans.com, typographical errors, helps build traffic and prevent brand dilution. www.jeens.com, www.bellbottoms.com Traffic Through Visibility Traffic Builders: Portal Presence • Search engines and directories are common ways to find a company’s web site • Problems – A single search often produces thousands of results – Less than 1 percent of Web pages show up in all four of the most popular search engines Traffic Through Visibility Traffic Builders: Portal Presence • Search engines retrieve pages on the basis of keywords, meta-tags, page titles & other content • Secure a high ranking – Classify your site with proper keywords, descriptors and categories – Make sure important Web pages are listed with all major search engines • Multiple listing is important to ensure exposure, as each search engine will return a different set of results to a query – Work with directories (like Yahoo!) to make sure they properly locate your site Headline Publication & Date It’s usually possible to find current news on which search engines and directories drive the most traffic Traffic Through Visibility The Emergence of Specialized Portals • A specialized portal focuses on a specific industry • Special directories provide editorial control by industry experts, categorization schemes and the ability to reflect rapid change in a particular industry Example – www.pikenet.com (real estate) Traffic Through Visibility Electronic Word of Mouth and Diffusion • Positive word of mouth and publicity motivate potential users into trial • Loyal users are the main source of positive word of mouth • Nonusers and disgruntled consumers are more likely to provide negative comments Figure 9.9 Influences on Trial Traffic Through Visibility Net Word-of-Mouth Technologies • • • • • • E-mail among friends and biz acquaintances Usenet groups E-mail listservs AOL and other online forums Industry portal discussion areas Online and traditional media coverage of the Net The Net amplifies the power and accelerates the speed of user feedback Traffic Through Visibility Opinion Leaders Online • Opinion leaders are well-respected industry participants journalists, or lead users known for expertise • Reaching opinion leaders is a key success factor of an e-commerce strategy • Opinion leaders can be reached via e-mail and social networks Traffic Through Visibility URL Placement • Integrate your domain name wherever possible – Manuals, warranties, software programs – Familiar advertising settings • Billboards, buses, bills, company brochures, radio advertisements, public speeches, menus in restaurants, park benches, shopping bags • To track which medium is driving traffic – Use unique identifiers – Use different Web addresses with different media messages Paying for Traffic Interactive Advertising • Banner ads are the dominant form of online advertising – Clickable graphic images that take a user to another Web location • Pricing is usually based on the number of impressions – Negotiated prices, volume discounts, and barter arrangements are common – Each banner also carries a unique identifier • This allows a business to track the effectiveness of each placement in generating traffic Paying for Traffic Online Advertising Effectiveness From Visits to Purchases 0.05 Pool of Visitors From Impressions to Clicks 0.95 0.02 Pool of Impressions Cost per Impression $15 per 1,000 impressions $.015 each Cost per Visitor @ 2% 0.98 Fig. 9.13 – The Declining Number of Viewers at Each Step of an Advertising Chain click through $0.015/.02=$.75 per visitor Cost per Purchases @ 5% conversion from visitors to buyers $.75/.05=$15.00 per purchaser Paying for Traffic Online Advertising Effectiveness • Online ad banners are simple to create and implement – Experimentation is cheap and easy • Click-through rates are fairly low • Higher click-through rates associated with: – – – – – Bold colors Top-of-page placement Animation Call to action Limited frequency of exposure Paying for Traffic Brand Building with Banner Ads • Banner click-through rates are often as low as 2 percent • This reduces the effect of online brand building • Many feel that branding still requires the power and imagery of television and radio until users have better technology Paying for Traffic Brand Building with Banner Ads • Paid advertising may be necessary to create the initial visibility to search engines • Several of the search engines use external links to traffic to determine a site’s indexing frequency and placement in result lists • Advertising reinforces the effectiveness of free media • Initial studies indicate that banner ads can help build brand awareness • Even with no click-through, banners can trigger post-exposure visits to sites Paying for Traffic Online Advertising May Not Fit All Companies • Some sites generate sufficient traffic with other measures • If a business has a regional market, it’s best to avoid online advertising on sites with national or international scope • Regional sites, however, may be a great opportunity for online advertising – CitySearch, SideWalk, JustGo, Yahoo! Evaluating Traffic Sources Measuring the Returns • Measurable sources of traffic include: – – – – – – Search engines and directories E-mail promotions Publicity campaigns aimed at building awareness and trial Links from newspaper articles and press releases Dedicated software updates and links Paid advertising expenditures to steer traffic to the site – Alliances and co-branding to generate traffic from affiliate sites • Web-log and commerce server data enable marketers to measure these sources Evaluating Traffic Sources Tracking Search Terms 1. free sample 6. dhea 2. creatine 7. sex 3. ripped fuel 8. chrysin 4. hmb 9. melatonin 5. protein 10. glucosamine • Important to monitor the top-ranked keywords visitors use to find a site • Provides useful snapshot of the ways visitors remember and categorize a site Evaluating Traffic Sources Measuring the Returns Figure 9.18 Traffic Value Revenues per Visit and per Page View are quite high
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