Agenda. Schedule April 25 - eMarketing Communication May 2 - No class May 9 - CRM + eMarketing Plan due May 16 - CRM (cont.) + Revision May 23 - Final Exam + Presentation Today we will be discussing eMarketing Communications.
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Chapter 13: E-Marketing Communication
Traditional Media Hierarchy of Effects for High- and Low-Involvement Product Decisions
Total communications spending expanded at a CAGR of 5.9% in the 2001-2006 period to a record $885.2 billion, driven by strong gains in alternative advertising, marketing, and institutional spending
While consumer media usage dipped 0.5% in 2006, institutional time spent with media increased 3.2%, according to the first-ever analysis of business media usage patterns
Overall communications spending is projected to grow 6.4% in 2007, exceed $1 trillion in 2008, and post a CAGR of 6.7% from 2006 to 2011
Internet advertising is expected to become the largest ad segment in 2011, surpassing newspapers
Companies such as AvantGo offer free news and other content to mobile users, sponsored by a third party advertiser.
Content Sponsored Advertising on Visor PDA
Source: AvantGo, Inc: AvantGo Mobile Internet (www.avantgo.com)
Life Savers Sponsorship at Candystand Source: www.candystand.com. Used with permission of Nabisco, Inc.
= When individuals forward e-mail to friends, co-workers, family, and others on their e-mail lists
= Word of mouse.
Unique Visitors in millions
AOL Time Warner
CNET Networks Inc.
Top Online Properties by Parent Company for January 2002
Source: Data from www.cyberatlas.internet.com
Cost Per Thousand Impressions
CPM = [Total Cost (Impressions)] 1000
$7 to $15 for banners1
$75 and $200 for e-mail ads2
$20 and $40 for e-mail newsletter2
Click-through rate (CTR)
Number of clicks as percent of total impressionsCTR = Clicks Impressions
0.3% - 0.8% for banners3,5
2.4% rich media ads5
3.2% - 10% opt-in e-mail3,9
Cost Per Click (CPC)
Cost for each visitor from ad click
CPC = Total Ad Cost Clicks
Google.com ranges from a few cents to a few dollars
Percent of people who purchased from total number of visitorsConversion Rate = Orders Visitors
1.8% for Web sites6
5% for e-mail9
Customer Acquisition Cost (CAC)
Total marketing costs to acquire a customer
Varies by industry
$82 for online retail pure-plays; $31 for multi-channel brick and mortar retailers7
IMC Metrics and Industry Averages
Sources: 1Hallerman (2002); 2data from www.eMarketer.com; 3Saunders (2001); 4Gallogly (2002); 5“DoubleClick Ad Serving...” (2002); 6 data from shop.org; 7data from www.computerworld.com; 8data from www.nielsen-netratings.com; 9PricewaterhouseCoopers, LLP (2002).