Marketing and Technology

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Marketing and Technology

• ORGL 575

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Spam

• Spam is Unsolicited Commercial E-mail
• No existing relationship of permission from
  recipient.
• If they visit the booth
• Customer point of view
• Sender point of view
• Not sent directly to your email address
• Mailed in Bulk
• Commercial in nature
• Hard (or impossible) to unsubscribe

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Why We Hate Spam

• Spam erodes our value to ALL of our customers
  (mail blocking by mail administrators)
• Spam hurts our clients reputation ( Newsgroup
  chatter I hate this company
• Spam can seriously damage our business
• Spam clutters the inbox and reduces the
  effectiveness for legitimate email messages

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What is Permission Marketing

• An ideal application of email

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Opt Out

• Practice A marketer obtains email addresses from
  customer and mails without prior permission
• Theory
• We have an existing relationship
• It is very simple to unsubscribe
• This is just like traditional direct mail
• They can always just hit delete

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Opt-Out

• Reality
• Complaints will be frequent and may result in
  blocking actions by ISPs
• Does not scale
• Imagine if every business you ever patronized
  sent you an email marketing message
• Encourage distrust
• 60 of customers have given false information
  when filling out forms ( BCG privacy white paper)

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Key Permission Concepts

• Permission is selfish
• so add value with every message
• Permission is non-transferable
• but friends can introduce you to other friends
• Permission is a process not a moment
• so create a learning relationship
• Permission can be cancelled anytime
• get used to it or be prepared for grief.

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Opt-Out Permission

• Pre-checked box
• Confirming email ( auto responder) may or may not
  be sent
• Do you wish to receive our free monthly
  newsletter
• Check here to receive additional valuable offers
  from selected sponsors partners

X
X
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Opt-In Permission

• Customer must select box
• Confirming email may or may not be sent
• Do you wish to receive our free monthly
  newsletter
• Check here to receive additional valuable offers
  from selected sponsors partners

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Confirmed Opt-In Permission

• Customer must select choice
• Confirming email will be sent
• Customer must verify their addition to list

Do you wish to receive our free monthly
newsletter Check here to receive additional
valuable offers from selected sponsors partners
Double opt-in adds a confirmation step into the
subscription process. When an email address is
entered into our subscription form, we will
respond with a message to that email address.
The potential subscriber must reply to that
email in order to actually start receiving our
newsletter.
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Problems No disclosure of Use on sign-up
page Future promotions not addresses
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Problems Privacy policy Disclosure Future
Promotions not addressed
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Disclosure
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The right way Not must fill fields True
Opt-In Full Disclosure of use
Please enter your e-mail address ifyou would
like to receive special offersand product
information via electronicmail. You may
unsubscribe from anye-mail communications you
receivefrom us at any time.
By filling out and submitting this form you are
being added to the Dell mailing list. The Dell
mailing list is private and not sold to other
merchants.
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The Right Way HTML defined, And asked
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Why Email is a Powerful Marketing Medium
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E-mail Most Effective OnlinePromotional Tool

• Email users click on email 3x-10x vs. banners (
  ErnstYoung 1/00)
• Survey of online consumers 12/10 12/22
• 63 purchased via email promotion
• 38 purchased via banner ad
• 29 purchased via offline advertising
• Buyersguide.com 1/00

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The Email Revolution
Faster
Cheaper
Better
5-15
3-6 Weeks
1-2
3 Days
Sources Forrester, DMA, Gartner Group May 25
2000
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Email Marketing Spending will Triple by 2004
How much do you spend on email?
Source Forrester research (Jan 2000) Based on
interviews With email marketing managers from 22
traditional and 28 internet pure plays.
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1billion E-mail Marketing by 2001

• Marketers will shift SalesMarketing resources to
  permission email marketing
• Marketers will spend at least 5 per name per
  year maintaining permission
• Number of e-mail service and solution providers
  are increasing
• Scale agencies, bureaus and solution suites will
  emerge to support this market

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How is e-mail marketing used?
Prospects
House List
Forrester Research
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Email Communication Strategy
Daily Newsletter Automated Greetings Specific
channel/Service Interest Adhoc
Promo Reminders Welcome back Customer feedback
Targeted Content
Subscriber Advantage Local content
Newsletter Target AIM 1.0 users
Segmented
Flash Emails Contest Follow-up
Welcome Registration Surveys
Bulk
Knowledge of customer behavior and preference
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Crafting E-Mail Campaign
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House File Creation

• Ask for email address via every channel
• Printed order forms
• Call centers
• Customer Service calls
• Give customers a reason to register at your web
  site
• Tell them what you will do with their name

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House File Creation

• HTML, TEXT and AOL
• Three different environments

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House File Creation

• Domain Segmentation
• Yahoo, Hotmail, Excite, Mail.com, USA.net ( these
  represent about 75 of all HTML enabled email
  accounts)
• Sniffer Technology
• Identify HTML enabled Email Clients while mail is
  being sent.
• 90 accurate
• The other 10 is a problem

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House File Creation

• AOL Segmentation
• AOL is not TEXT or HTML
• Without Tag in AOL
• With HREF tag in AOL
• AOL can be up to 30 of some consumer mailings.

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Outside Email Lists

• Discussion list sponsorships
• Newsletter sponsorships
• Standalone permission lists

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Email Discussion Lists

• Similar to newsgroups
• Moderated, open
• Topically driven
• Earn revenue driven through sponsorships
• Generally small.but targeted
• Not widely known about by marketers so may be a
  hidden gem

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Newsletter Sponsorships

• Niche oriented
• Content driven
• Provide free Free Value-Added benefits to those
  who want to be informed, educated or entertained
• Loyal readership
• Revenue driven by sponsorships,text ads

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Newsletter Sponsorship
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Newsletter Sponsorship Universe

• Response is likely to be 25 or less than
  response from an email list
• But costs are lower too.
• Greater targeting available
• Especially BtoB

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Newsletter Sponsorship Universe

• Where to find them.
• www.e-zines.com
• Sites that sell banner ad space
• List brokers
• Time sensitive availability
• Holiday Seasons

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Newsletter Sponsorship Universe

• Size can be deceiving
• Must make sure all names are unique
• Newspaper sites generally
• 300 000 may mean 100,000 sent x 3
• This is a space medium!!!!
• Must buy 2 months in andvance
• Nearing any holiday buy 3 months in advance

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List Exchange

• Fastest growing part of Email Marketing

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Standalone Permission Lists

• People who have said Yes I am interested
• In the market for something,have a need or
  interest in a type of product or service
• Relevant to lifestyle,household, family need,
  hobby, passion etc.
• Subscribers have control
• Marketers get results
• Because customers want to receive their
  information

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Standalone Permission Lists

• Only use true permission lists
• User selction treendously better than default
  opt-in program
• Be afraid-be very afraid
• Ask for case studies or references
• Find out how people opted in
• Verify it.

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Never use a list like this

• 77 million fresh email addresses for only 69
• That is right 77 million with no
  duplications.That is less than 1 per million
  names. Can you make 1 cent from each of these
  names?

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Standalone Permission Lists

• Typical price range 150 to 500 CPM
• Cost driven by demand
• Consumer lists at lower end of pricing range
• B2B lists at upper end of pricing range.
• Some lists are standalonealthough the source of
  the list is usually mentioned.

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Standalone Permission Lists

• Consumer Lists
• Few response files on the marketmost are lists
  where people have indicated an interest in a
  particular subject.
• Selects include recency, geographic location,
  interest area, gender.
• B2B Lists
• Very selectable SIC codes, title, number of
  people in company etc.

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Standalone Permission Lists

• Targeting
• Lists dos and donts
• Do not mail unless you are 100 permission sure
• Do ask the source-many companies selling the same
  lists
• Do not be cheap-the risks are great
• Do scrub list for duplicates
• Do provide clear remove access

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Permission List Networks
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Problems with Permission Lists

• You cant merge/purge
• List owners are very concerned about the security
  of their list. They usually designate one trusted
  company to deliver all email to their names
• Some will allow you to send them your house file
  for suppression
• But marketers may need to send their file to
  multiple service bureaus and that is a concern
  for marketers own list security

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Prospects List Universe

• List Brokers Role
• Media
• Tracking
• First Usage
• Cut costs
• Advice

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Components of the Message

• From Line
• Subject Line
• Header/Footer
• Remove/Unsubscribe
• Prospect Header issues
• Personalization
• Body copy

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Components of the Message

• From Line
• CNET Digital Dispatch
• CNET_Digital_Dispatch6.31_at_1.digital.cnet.com
• As short as possible
• As clear as possible
• It is the envelope, misperceive that you are
  spam.
• You dont want to be deleted

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Components of the Message

• The Don'ts
• Important Message
• SUPER SAVER
• Re how are you
• Free Software
• Unlimited access
• Guaranteed
• Hi

• The Dos
• Identify your company
• 35 Character or less
• Personalization in subject works
• Put your company name

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Subject Headings We Can Live Without

• Important Message
• PLS support us
• Very important Announcement
• Protect your health
• SUPER software sale
• Work smarter not harder
• 4370 a month for life
• Great mortgage Leads
• Well pay your debts!!!

• Start earning money while you are sleeping
• RE How are you doing
• LOSE 30 POUNDS IN 30 DAYS, GUARANTEED
• Unlimited Long Distance Calling for Only
  25/month
• Free web site analysis
• The Internet Spy! Find out anything about anyone
• FRAMELESS BUILDING CONSTRUCTION

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The Components of the Message

• Header/Footer
• Header
• This special offer is only sent to fake email
  list.com registrants who have opted-in to receive
  information and special offers. This message is
  delivered to you via Emailtransmitter.com
• Footer
• Steve_at_aol.com
• If you would like to be omitted from future
  offers from the fake emaillist.com please reply
  to offer_at_fakeemaillist .com with remove in
  subject line.

The to email address
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Where did the message come from and why?
Which name is the customer Likely to recognize

• To subscriber_at_address.com
• From Our company and or Brand
• You are receiving this message because you opted
  in at your web site to receive new product
  information. If you do not wish to receive these
  messages in the future, please click here or
  follow the instructions below.

Recipients are more likely to Read your message
if you are specific about the relationship
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Easy Unsubscribe

• To subscriber_at_address.com
• From Our company and or Brand
• We only want to send e-mail to those wish to
  receive it. If you wold not like to receive email
  from us please go to leave-online-ads-514079Q_at_o-a.
  com or reply to this message with the word
  unsubscribe in the subject line

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The Components of the Message

• Body Copy
• Newsletter Mailings
• 500-1500 words
• Prospect mailings
• 200-500 words
• Repeat Links
• Put your URL everywhere
• Lots of people read mail from preview.
• Good for testing
• Htm1
• Htm2
• Htm3

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Some quick tips

• Include more than one link within mailing
• Keep it short-no longer than 1 printed page
• Sign the email from real personnot just a
  company
• How often can you mail? Watch your unsubscribe
  rate carefullythat will tell you
• More than once a week is dangerous!
• When to mail
• B2B 1000 Tuesday thru Thursday works best
  (before lunch)
• Consumer anytime??
• Within 24 hours you will know the 70 response
  rate
• 48 hours 70-80

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Some quick tips

• Subject Lines
• Make sure your subject line is killer
• Be very carefull of the use of FREE
• Keep your subject line to 35 characters
• Personalized mail is guaranteed to outpull
• First line extremely important
• May be displayed within recipients email client
• 50 decide whether to keep reading after 1st two
  sentences.

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Rules of Thumb with Email

• Make it very clear where the message is coming
  from and why
• Make it very easy to unsubscribe
• If the customer did not explicitly opt-in,
• DO NOT assume they will accept opt-out.
• Dont rent your list! Transferring permission is
  difficult and should be done cautiously
• Avoid spammish copy

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Writing Effective Email

• Before you begin, tell them how to unsubscribe
• BeginEnd with a hyperlink
• Tailor message to your audience
• Keep it short Sweet
• Raise excitement, include call to action
• Web site, not email, closes the transaction

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Crafting an Email Campaign

• Targeting
• Personalization
• In-house list,established relationship-YES
• Prospect list, no relationship Tread carefully
• Could trigger privacy fears
• Risk may exceed reward

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Measuring Success
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Maximize ROI
Test Measure Refine
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Before you mail

• Segment out HTML, TEXT..
• Important Segment AOL users

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Steps in Measuring the Campaign-Emails delivered

• Bounce rate
• Retry programs
• Soft Bounce JayS_at_worldata.com
• A soft bounce occurs most often because of an
  error in a subscriber's email address. A
  misspelled name or something as simple as a
  missing space or dash can cause a soft bounce.
• Hard bounce Jay_at_worldataS.com
• A hard bounce occurs most often because of an
  error in a subscriber's email address (wrong
  host). You should unsubscribe hard bounces from
  your list.

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Steps in Measuring the Campaign-Emails delivered

• Actual were delivered
• Hard/soft bounce
• Hotmail and Yahoo issues
• Retry programs- How often do you try to re-mail
  bounces
• Some of your bounces can be fixed.

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MeasurementWhat you should be measuring

• Lists, Newsletters all email
• Emails delivered
• CTR
• TEXT vs. HTML vs. AOL
• Inquiries, Sales or depth of site
• Transactions
• Pass alongs

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Testing

• Yes, Yes, Yes
• Huge benefit of email
• High response rate, requires smaller test cells
• 500 HTML message 1000 text message
• 75 of responses within 48 hours
• Costs to change copy, graphics, inexpensive

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• http//www.clickz.com/article/cz.2369.html
• http//www.clickz.com/article/cz.3137.html

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Banner Ads
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Banner Ads

• Online advertising has had several years now to
  impart some lessons about ad buys. First, it's
  become clear that the ability of plain banners to
  pull consumers in a new direction at the click of
  a mouse is a two-edged sword. The company placing
  the ad gets the desired effect of the
  clickthrough, but the site where the banner
  appears can only hope that the Web surfer pushes
  the Back button. Rich-media banners offer a way
  around this Viewers can interact with ads
  without leaving the site on which they appear.
• And the purpose is not solely to retain a site's
  traffic. According to Scott Kliger, CTO at
  Enliven, an Excite_at_Home company, there is an
  "enormous drop-off' in effectiveness when viewers
  are driven away from the context they were in
  when they saw an ad.

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• In an effort to simplify the production of
  multimedia banner ads, Enliven has developed a
  set of preassembled ads it calls "Enliven Effect"
  that offer opportunities ranging from driving
  traffic to conducting transactions within the
  banner.

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• IAB.net

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Next-Generation Banners Rich MediaInteractive/Ani
mated Banners

• Features-
• In-the-banner interactivity
• Deliver live content such as news, daily messages
• Effectiveness-
• Increases (CTR) click-through-ratio
• Improves brand recognition

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Next-Generation AdvertisementsDownloadable and
interactive advertisement

• Forwarding Advertisements
• Effective and free advertisement that is
  guaranteed to reach the targeted audience
• Word of mouth or email to email promotion reaches
  a larger number of consumers
• Brand name is re-enforced by interacting with the
  ads

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Banner ad presentation methods

• A. Pay per Click - Pay a web site every time
  someone clicks on your banner.
• B. Pay per Lead - Pay a web site every time
  someone signs up for a service or free
  subscription (Sales leads)
• C. Pay per Sale - Pay a web site every time
  someone actually buys the product or service.
• D. Pay to View - Pay a web site to show your ad
  by category or randomly.
• E. Banner Exchange - Display banner/button on
  your site in exchange for displays on others

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Where should you place your banner ads?

• In traditional advertising you use media expert.
• Study demographics
• Figures out which media they pay attention to.
• Places ads based on careful targeting and cost.
• Media targeting has been a science for 30 years
• Should we (modern marketers) use the same
  techniques for the web?

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• If we are going to sell sport outfits
• We should pay a premium to advertise on a web
  site devoted to sports
• Is this the right way?

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Web Advertising Networks

• Offer single point of access to advertisers that
  want to reach millions of consumers quickly and
  easily.
• They acquire impressions given to them by their
  web site affiliates and sell the aggravated
  inventory.
• This process simplifies the acts of buying and
  selling for both the advertiser and the web
  publisher.

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Objectives in Web Advertising

• There are two objectives in web advertising
• Image advertisers are trying to create an image
  in the mind of the viewer.
• Response advertisers are trying to get the viewer
  to respond.

Creative should always mirror the program
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How web advertising differs

• Traditional media must use surrogate measurements
• Awareness, focus groups, coupons, Nielsen Ratings
• None of them measures actual consumer activity
• The web permits you to know
• Who are looking at the page
• How long they are there
• Where they came from
• Where they go afterward

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How web advertising differs

• On the web you can change your message every hour
  every day
• Expose one customer to many different approaches.
• Rich media ads utilizing high involvement and
  interactive formats, hold the promise of
  increasing the impact and overall effectiveness
  of web advertising.
• You get immediate feedback on what is working and
  what is not.

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4 Steps in making a purchase

• Impression The customer clicks on a web site
  that has banners displayed.
• 5 to 40 per thousand impressions
• ResponseThe person clicks on a banner in the web
  site, which transports the clicker to your web
  site
• Lead The prospect views your offering and fills
  out a form
• Sale The clicker buys the product

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Zero Based Media Buying

• Testing using RON (Run of Networks)
• Do, no targeting at all.
• Just throw ads out there and see where you get
  responses.
• Within a few days you can figure out where your
  responses are coming from.
• Group your responses by category (sport,
  business, entertainment or people who respond to
  ads about my product.
• You can not do that with any other media

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Run Of Networks

• Begin with advertising on all Flycast sites
  (close to a thousand) for a week and compare the
  response rates.

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CASIO
It ran a banner ad for a digital camera. The
best category for Casio digital camera ads is
travel. This test can be conducted in a
week sites aimed women, games and sports are
definitely not winners for the product. Would
anyone guessed this without the test? In a week?
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• Response rates is only a part of the story.
• You have to factor in the cost of the space
• Would concentration on travel sites be a good
  idea for Casio?

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Thank you