3 lecture Flashcards
Why are Search results important? 2 facts
More than 70% of B2C customers already use search engines both for discovery and consideration purposes.
80% of B2B customers use search engines to support their business purchase decisions.
The term business-to-consumer (B2C) refers to
the process of selling products and services directly between a business and consumers who are the end-users of its products or services.
B2B is short for “business-to-business,” meaning that you
are a business and the product or tools that you sell are also designed for companies to use, rather than consumers
How well our brand is represented based on 2 things
on the distribution breadth (easy to consumers to find a store that sells our brand) and online distribution depth (quantity of products)
search visibility / ranking:
95% of the clicks following a search query are on organic search results.
Organic search results are important for traffic.
Organic traffic (not paid search) changes due to trends or different demands
Organic search results
are the listings on a search engine results page (SERP) that appear because of factors such as relevance to the search term and valid search engine optimization (SEO) efforts rather than because of search engine marketing (SEM) or trickery.
SEO- Search Engine Optimization
Efforts to influence organic search results.
The goal is to raise the position of the site’s links in the organic listings from a search
SEM
Search Engine Marketing
Keywords:
Words or phrases that are used to match the ads with the terms consumers are searching for.
Profit =
Revenue generated by ads – Cost of ads
Alternatively:
Profit =
= Impressions × CTR × (CVR ×M − CPC)
CTR: click-through rate) (CVR: conversion rate) (M: Margin) (CPC: Cost-per-click
Indirect effects (Long-run perspective)
The clicks that do not result in a purchase should not be necessarily categorized as losses
• Competitive advertising on brand search:
a practice in which competitors bid on keywords that contain their rivals’ brand names
Banner ads:
Targeting strategies used in advertising have changed significantly as a result of the development of digital technologies
Behavioral targeting
(i.e., retargeting): focuses on the person’s actual browsing behavior, e.g. pages visited, clicks made, site interaction, products viewed.
Use of ad blockers? It produces two general problems
consumer avoidance and low CTR.
Identified users:
customers registered / logged onto a website
Unidentified users
tracking anonymous user online behavior using cookies (tracking tags) on a browser
Selection effects:
he effects of retargeting may be artificially inflated. Having a control condition and random assignment of consumers to conditions are important for correct evaluation of ad effectiveness.
Based on Bleier et al. (2015) paper: Banner ad effectiveness 3X
WHAt when where
- Degree of content personalization (WHAT)
o Based on both or only one: product category and brand viewed by the consumer - Stage in the customer journey (WHEN)
o Pre-purchase: information stage, consideration stage& Post-purchase stage - Ad placement / context (WHERE)
o Ads on shopping-related (congruent) vs. unrelated (incongruent) websites
Bleier et al. (2015) paper conclusions 3X about personalization
º Personalization increases CTR
º Click-through effectiveness of personalized banners generally decreases as consumers progress toward the completion of the purchase decision process
º Personalized banners are very effective when consumers have just left the online store, but quickly lose effectiveness over time: Overpersonalization
Goal directed browsing
Convenient, selection, information availability, control, commitment to goal and not experience.
Experiential browsing
Important atmosphere, positive surprise, commitment to experience and have fun (is desirable online as it has been associated in offline environments with increased impulse purchases and more frequent visits)
View-through browsinf
Whether consumer independently returns to the retailers online store after viewing a banner but not clicking on it
Paper focus: De Haan et al. (2016) - Content-integration: - Content-separation: - Firm-initiated contacts which is most effective?
- Content-integration: advertising message is integrated into the editorial content of the website (e.g. a price comparison site)
o Content-integrated Customer-initiated contacts (price-comparison/portals, referrals - Content-separation: advertising message is NOT integrated into the editorial content of the website (e.g. retargeting prospects while they are visiting an unrelated website).
o Content-separated Customer-initiated contacts (search, display ads, retargeted ads) - Firm-initiated contacts (TV, radio, email)
Content-integrated CIC (customer-initiated-contacts) are most effective
Advertising elasticity:
the percentage change in the outcome (typically sales) in response to a 1% change in advertising (typically budget)
1% change in advertising spending leads to x% change in sales
Last-click attribution:
No credit is given to earlier advertisements, the effect of seasonality, or baseline revenues.
Key takeaways de Haan et al. (2016) 3X
Offline advertising forms have low sales elasticities
• Presumably because the retailer mainly uses offline advertising to build and retain brand awareness, perceptions, and goodwill rather than to drive immediate sales online.
CIC have greater sales elasticities than FIC
• CIC require some level of interest from the customer because they are based on customers’ own queries and are considered far less intrusive compared to FIC.
• A similar rationale applies to content integration vs. content separation: by accessing e.g. a price comparison site, the prospect indicates interest in the product/category and thus is further down in the purchase funnel.
• Content-integrated CICs tend to distinguish themselves from other forms of advertising in the later stages of the funnel.
• They are more effective in attracting people to product-specific pages; from there, visitors move more smoothly through the website funnel, thus producing higher total revenues.
Return on advertising spend (ROAS) =
Total cost / profit given a margin
