Week Ten: E-mail marketing

E-mail marketing has proven to be one the cheapest methods of on-line marketing, yet it has the possibility of providing one of the biggest returns on investment if done in an effective manner. Statistics have shown that e-mail marketing can provide and ROI of $57.00 for every $1.00 spent. These type of numbers make this method a very attractive alternative. However, in order to gain returns such as these, you must follow a few guidelines in order to maximize overall effectiveness.

1. Build up a quality opt-in database

One of the most important things in creating this database, is that you utilize a double opt-in method. Essentially, this means that once someone opts-in to receive correspondence from your company, you then need to e-mail them to confirm that they meant to opt-in. This type of verification has become common practice, and helps to eliminate your e-mails from getting caught in a SPAM filter. The following video gives a few extra pointers on how to build a quality database.

2. Send relevant messages at the appropriate times

Even if someone decides to opt-in to receive messages from your company, this does not guarantee that your correspondence will be read. For instance, if they were to open a newsletter which they felt was not relevant to their needs, they are likely to send it to the junk folder. Any subsequent e-mails which are then sent to this individual could be viewed as irrelevant, and may automatically be sent to the junk folder without any viewing at all. One way to combat this, is by creating e-mails which lead to a call to action. This could be in the form of adding user-generated content, filling out a survey or questionnaire, or simply voting on a particular issue. Regardless of what tactic is used, it must be something that captures the viewer in a way that makes them want to act.

3. Try to segment your database

Building on the previous point, it can be useful to try and segment your database so that the messages you are sending are reaching the appropriate people. This is especially important for companies which have built up a large database. If you are dealing with a large number of people, it is safe to say that they will likely share differing interests. By targeting messages based on user behaviour, a company should be able to satisfy the different needs of their audience. One way this can be done, is through the use of an analytics program. Users could be segmented on their click paths, those who made a purchase and those who did not, or simply by geographical area. Segmenting helps to ensure that the most relevant information is going to your audience.

4. Need advanced technology and good ISP relations

Simply sending an email no longer ensures that it will actually get to the intended recipient. E-mail can easily get caught up in a SPAM filter, it could be sent to someones junk box rather than their in-box, or it could be subjected to a public blacklist which are continuously updated. This area is extremely crucial to success, and companies may want to contract out this job as experts will be more knowledgeable when it comes to the dynamic legislation that governs web practices.

Overall, e-mail marketing can be a very effective tool if used properly; however, if the company does not follow best practices and fails to utilize these tips, it is unlikely that they will maximize their return on investment.

Week Nine: Potential for Marketing on Mobile Devices

While focus over the past couple of years has centered around on-line marketing, it seems that the new trend to watch in the future will be marketing to mobile devices. Mobile devices are attractive for a number of reasons. First of all, there is a large market of mobile users that is largely untapped at this point. Most marketers are still focusing on the traditional media buys when looking to advertise, as they have yet to realize the potential associated with mobile marketing. Further, since there are not a lot of companies utilizing this strategy, it is likely that if you get into the game early on, there will be a great opportunity to establish a great branding strategy and reputation.

Another reason that mobile marketing is effective is that it is incredibly cheap in comparison to traditional media rates. A company has the potential to send out a large number of texts that will reach a very large user base. However, this is not to say that one should just send out a blanket message to everyone in the geographic vicinity. On the contrary, it is important to remember that marketing on a mobile device is not unlike marketing in other areas. This means that messages should be targeted to specific consumers in order to make the most of the message sent. If companies just sent text messages to people based on their location, they would quickly be deleted, not unlike Spam on your computers.

With mobile marketing it is also important to let the customer drive your relationship. What that means is that you should give users the ability to opt-in or opt-out of your messages so that the people who want to receive them are coming directly to you. Since the consumer has the option of whether or not they would like any correspondence, it then becomes possible for the marketer to try and further their relationship with those users who do, as texts may seem more personalized. The messages you send must also be interesting and content rich. Ideally, you would like the person you are messaging to not only read the message, but also to act upon the message. This could take the form of either purchasing an item, signing up for additional texts, or merely forwarding the message to a friend.

The following video gives a few tips on marketing on a mobile device.

Although many people still underestimate the power of marketing to mobile devices, there are campaigns that have utilized this medium very effectively. One of the best examples of this came in the form of Barack Obama’s political campaign. Obama was able to utilize mobile devices and the Internet to fuel his campaign and gain crucial votes, as users began to forward his messages to those people on their own friend lists.This goes to show that the potential for marketing on these devices is limitless. For instance, a small business could use this technology to text their customer database to inform them of an upcoming sale. At the same time, mobile marketing could also be used in aiding a social cause. An example of this could be an Amber Alert. Mobile users could opt-in to allow emergency texts through that could have a picture of a recently missing child, or could simply flash a scrolling message of a license plate number. Since many cell phones and mobile devices have a GPS system in place, the text could be sent to all of those in the area of an abduction, and users are more likely to take in the information because they have to read the text that is coming in. While the alerts are also effective on radio and television, there is a greater chance that they will be missed, as people automatically tune out many commercials and background chat.

As you can see, the possiblilites for marketing on a mobile device are endless. In order to maximize the effectiveness of your campaign, the following list provides a more in-depth look at what you should be focusing on. If you are able to follow these guidelines, you should be well on your way to developing a successful mobile marketing campaign.

Week Eight: Click Fraud

Although recent reports of malfeasance on the web have generally centered around issues involving Internet privacy, it is becoming inherently clear that click fraud should also be a large concern for companies advertising on-line. Essentially, click fraud means that someone is clicking on your advertisement so that the company has to pay for that click, even though the individual has no intent to purchase anything on the site. Clearly not every customer who clicks through your site will end up in a conversion;however, it is those customers who repeatedly click through without action that become a problem. Often the most notable offender will be your competition clicking on your ad, as they are trying to eat up your advertising budget. More recently, there has been an alarming trend of companies hiring people from third world countries to sit and click on your advertisements. New technology has also evolved which allows automated programs to click on your sites as well. As you can see, businesses using  PPC (pay-per-click) advertisements on the web need to be aware of click fraud, as malicious clicking can be extremely costly if not detected.

It is difficult to determine exactly what percentage of clicks are in fact fraudulent, as reports seem to vary depending on the source. Search engine providers such as Google and Yahoo claim that the number is not as high as you might think; however, they may not be the most accurate source, as search engines gain a portion of revenue with each click. Google recently released a report claiming that only 0.02% of clicks were malicious; however, a report from an insider in the paid placement industry claims that it is closer to 20% of all clicks that are in fact fraudulent. While search engine providers continue to state they are trying to improve safeguards, the fact remains that click fraud is more prevalent than ever. This is most likely a product of the sheer volume of content on the web that they are trying to filter. Nevertheless, this not a problem that can be left up to the search engines to monitor. Those companies using a PPC structure must place the onus on themselves to monitor server logs by using an analytics program, which can help to detect abnormal behaviour. A few indicators which may point to click fraud include:

1. High tallies of the same IP address

If you notice in your server log files that an IP address continues to come up an unusual amount of times, it is likely that someone, or something is clicking on your ad maliciously.

2. Ad is being viewed in abnormal geographic areas

If a local business starts to notice a lot of traffic occuring from different parts of the world, it is likely that they are being paid to click on your site.

3. Click through rates and traffic have increased, but conversion rates and search engine placement remain the same.

If you are noticing this type of pattern, the company should first ensure that they have not made any changes to content or keywords. If there has been no change, then there should not be such a drastic increase in traffic. Further, if one of your keywords has previously been unsuccessful in generating hits, but is now improving, it could also indicate a problem.

4. Visitors have very short visit times on the landing page

If there is a pattern of views which are only a couple of seconds long, this could be a strong indication that someone is being paid to click on your site.

The following video gives a few examples of things to be aware of when trying to detect click fraud. It also gives a bit of insight into what to do once you have detected an offender:

Overall, it is important for companies to be aware of the implications of click fraud, and to empower themselves to try and manage the situation. If you notice this happening on your ads, it must be reported to the search engine provider so that reimbursement for faulty clicks can be made. Since ROI is one of the most important things in advertising, it is important that advertisements are being utilized properly to ensure maximum effectiveness for the company. Until search engine providers can come up with a way to better filter their sites, it is imperative that companies continue to analyze their own content to try and detect potential problems.