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Internet Marketing & e-Commerce Ward Hanson Kirthi Kalyanam Requests for permission to copy any part of the material should be addressed to: PERMISSIONS DEPARTMENT THOMSON BUSINESS and ECONOMICS 5109 Natorp Boulevard Mason, OH 45040 Phone: (800) 423-0563.

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Internet Marketing & e-CommerceWard HansonKirthi KalyanamRequests for permission to copy any part of the material should be addressed to: PERMISSIONS DEPARTMENTTHOMSON BUSINESS and ECONOMICS5109 Natorp BoulevardMason, OH 45040Phone: (800) 423-0563

part two chapter eight traffic building
Part Two: Chapter EightTraffic Building

“A wealth of information creates a poverty of attention.”

Herbert Simon, Designing Organizations for an Information-rich World

value and scarcity online
Value and Scarcity Online
  • Volume of online content is growing far faster than the number of Web users
value and scarcity online1
Value and Scarcity Online
  • Volume of online content is growing far faster than the number of Web users
  • Every site faces unique challenges to attract new visitors
value and scarcity online2
Value and Scarcity Online
  • Volume of online content is growing far faster than the number of Web users
  • Every site faces unique challenges to attract new visitors
  • As Web users grow more experienced, they are less likely to explore new sites
value and scarcity online3
Value and Scarcity Online
  • Volume of online content is growing far faster than the number of Web users
  • Every site faces unique challenges to attract new visitors
  • As Web users grow more experienced, they are less likely to explore new sites
  • The true scarcity online: user attention
planning for maximum traffic
Planning for Maximum Traffic
  • Drawing more visitors to a site requires a thoughtful web traffic plan
  • Web traffic plans should consider each of the five main traffic categories:
planning for maximum traffic1
Planning for Maximum Traffic
  • Drawing more visitors to a site requires a thoughtful web traffic plan
  • Web traffic plans should consider each of the five main traffic categories:
    • Branding decisions (e.g. domain name)
    • Search engine marketing
    • Affiliate networks
    • Online banner advertising
    • Publicity and word of mouth
planning for valuable traffic
Planning for Valuable Traffic
  • Effective traffic plans assess the volume and quality of traffic generated
  • Spotting broad use patterns through visualization tools helps calculate the cost and productivity of new visits
  • Key tool for traffic-building analysis is cost-per-action: the number of visits that end in a particular action divided by the cost of the campaign
planning for valuable traffic1
Planning for Valuable Traffic

At each stage, visitors decline and costs rise

traffic building goals
Traffic-Building Goals
  • Basic goal: best traffic at lowest cost
  • But how to define best traffic?
traffic building goals1
Traffic-Building Goals
  • Basic goal: best traffic at lowest cost
  • But how to define best traffic?

Maximum Profit

Minimum Cost-per-Action

Best Traffic with Least Cost

Maximize Actions

traffic building goals2
Traffic-Building Goals
  • Profit guidelines that include web site branding; ignore ad branding impact:
    • Spend on traffic sources that maximize difference between unified visit value and cost per visit
    • Acquire traffic as long as the cost per visit is less than the unified visit value
traffic building goals3
Traffic-Building Goals
  • Profit guidelines that ignore branding and all other impacts:
    • Spend on traffic sources that maximize difference between customer lifetime value and web customer acquisition cost
    • Acquire traffic as long as online customer value exceeds acquisition cost
traffic building goals4
Traffic-Building Goals

SOURCE: Gupta, Lehmann, Stuart: “Valuing Customers,” Journal of Marketing Research 41, no. 1 (Feb. 2004)

search engine optimization
Search Engine Optimization
  • The power of landing “Above the Fold”

SOURCE: FPG/Getty Images

search engine optimization1
Search Engine Optimization
  • Top placement in search returns is key to generating organic Web traffic
search engine optimization2
Search Engine Optimization
  • Top placement in search returns is key to generating organic Web traffic
  • User’s willingness to investigate falls sharply as items drop on the return list
search engine optimization3
Search Engine Optimization
  • Top placement in search returns is key to generating organic Web traffic
  • User’s willingness to investigate falls sharply as items drop on the return list
    • Higher click rate on top-rated items
    • Few users go beyond first page or two
search engine optimization4
Search Engine Optimization
  • Improving search engine placement
    • Get indexed on main search engines
    • Use meta-tags and develop content with appropriate keywords that trigger higher search engine rankings
    • Structure site content and navigation to reinforce search engine algorithms
    • Cultivate links from appropriate sites
keyword advertising
Keyword Advertising
  • Clickable, text-based ads bring in billions of dollars of ad revenue
  • Ads steer traffic to an organization web site; fee charged only if click occurs
  • Competitive bidding process determines a keyword’s value
keyword advertising1
Keyword Advertising
  • Evaluating keyword portfolios
    • Identify a site’s most relevant keywords
    • Test and expand list, based on conversion and click-through rates
keyword advertising2
Keyword Advertising
  • Evaluating keyword portfolios
    • Identify a site’s most relevant keywords
    • Test and expand list, based on conversion and click-through rates
  • Bidding and tracking
    • Higher bids increase chance at higher keyword position
    • No click costs more than maximum bid
    • Price charged depends on intensity of competition
traffic by association
Traffic by Association
  • In traditional advertising, marketers put a company’s message where consumers work, live, play
traffic by association1
Traffic by Association
  • In traditional advertising, marketers put a company’s message where consumers work, live, play
  • Same concept holds true online
traffic by association2
Traffic by Association
  • In traditional advertising, marketers put a company’s message where consumers work, live, play
  • Same concept holds true online
    • Banner advertising
    • URL placement on shopping bags, billboards, monthly statements
    • Sponsorship and co-branding