Internet Marketing and e-Commerce

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Internet Marketing and e
-
Commerce
,

Part II, Chapter 8: Traffic Building



Chapter Overview:



The explosive growth of online content since the late 1990s has intensified the
battle for attention and traffic

across the Web.

It also
has created a multi
-
bi
llion
dollar
industry

around search engine marketing

and forced an emphasis on accountabi
lity that
has reverberated throughout

marketing
. Chapter Eight e
xplain
s the inherent va
lue in
distinct
traffic patterns and
looks at the various tools available to att
ract users to a site.



Building on the discu
ssion of branding strategies,
customer
lifetime
value and
closed
-
loop marketing
in previous chapters
, t
he
author at Chapter Eight
explains the
importance of
a decisive

web traffic plan
and
careful analysis of

i
ts effectiveness. The
chapter also offers a precise overview of the two basic forms of search engine marketing
to generate t
raffic:

optimization and pay
-
per
-
click advertising.



Learning Objectives:


At the end of the eighth chapter, students should:




Rec
ognize the vital

role of traffic building
in online marketing.




Understand existing hurdles

to attrac
ting

new online users
.




Be able to identify

the five main sources of web site traffic.




Learn the importance of creating

a web traffic p
lan and
how to

ana
lyze its
effectiveness.




Be conversant in the

fundamentals of the

two main forms of search engine
marketing: search optimization and pay
-
per
-
click advertising.




Appreciate the persistent power of traffic by
association
.











Chapter Outline:



I

The Val
ue of Web Traffic

(Pages 248 to 254)



Trial lawyers and high
-
potential clients united by pay
-
per
-
click search



Online, as elsewhere, scarcity drives value



Number of Web users is rapidly rising, but content volume growing
faster



The diamond
-
water value parad
ox online: user attention is true
scarcity



As Web users become more experienced, they are less likely to visit new sites



Traffic building efforts have driven online spending past the 1990s boom
years


II

Planning for Maximum Traffic

(Pages 254 to 266)



To bu
ild active user base, companies need a strategic and tactical plan



Web t
raffic plans should acknowledge each of f
ive main traffic sources



Branding choices

can influence the natural starting point for many
users



Search engine marketing



Organic search result
s drive free traffic, but difficult to achieve



Fast growing paid search engine advertising driven by results



Affiliate networks

maintain links and receive fees for generating traffic



Banner advertising

results in small, but predictable, click
-
through
rates
; benefits from scalability and visibility



Word of mouth

and other more traditional forms of publicity and
promotion are among the most potent


but elusive


traffic builders



Traffic plans should assess volume and quality



Effective traffic building requ
ires marketers to track broad usage
patterns and evaluate the cost and productivity of visits



Using visualization tools to analyze web visits



Calculating
cost
-
per
-
action
: number of visits that reach a
particular stage divided by campaign cost



Available to
ols to assess a site’s visibility, and its competitive strength



Traffic building goals beyond basic effort to attract users at lowest cost



Maximizing profit using assessment of customer lifetime value and the
unified visit value



Minimizing cost
-
per
-
action



Maximizing consumer actions



Tracking multiple goals


III

Search Engine Marketing
: Optimization and Pay
-
per
-
Click

(Pages 266 to 279)




Search engine optimization



In newspaper parlance, t
he power of landing “Above the Fold”



Highest click rate is on top
-
rated

search returns



Few users go beyond the first page or two of search engine
returns



Building search engine awareness into a site



Indexing at major search engines



Meta
-
tags to flag important concepts and keywords



Structure of web site content can impact traf
fic and search



Genuine external links can generate traffic



Keyword advertising



Competitive bidding determines keyword value



Evaluating keyword portfolios



Identifying a site’s most relevant keywords



Test and expand the list based on click
-
through, conve
rsion
rates



Bidding, trimming and tracking in the pay
-
per
-
click system



Potential complications



Competitive struggle for desirable keyword positions



Missing data in evaluating click
-
through or conversion rates



Customers with different profitability levels

effect value per
action


IV

Traffic by Association: Following the Old
-
Fashioned Route

(Pages 279 to 284)



Much like traditional advertising, online marketing can build traffic to the
virtual sites where people spend time and money



Banner ads, the original onl
ine advertising, have rebounded with
enhanced broadband effects and understanding of factors driving click
-
through rates



Bold colors



Top of page placement



Animation



Call to action



Limited frequency of exposure



Built
-
in URL placements can lower costs



Port
al l
inks and sponsorship as cost
-
effective traffic source