Types of Internet marketing
- Display advertising: the use of web banners or banner ads placed on a third-party website or blog to drive traffic to a company's own website and increase product awareness.
- Search engine marketing (SEM): a form of marketing that seeks to promote websites by increasing their visibility in search engine result pages (SERPs) through the use of either paid placement, contextual advertising, and paid inclusion, or through the use of free search engine optimization techniques.
- Search engine optimization (SEO): the process of improving the visibility of a website or a web page in search engines via the "natural" or un-paid ("organic" or "algorithmic") search results.
- Social media marketing: the process of gaining traffic or attention through social media websites such as Facebook, Twitter and LinkedIn.
- Email marketing: involves directly marketing a commercial message to a group of people using electronic mail.
- Referral marketing: a method of promoting products or services to new customers through referrals, usually word of mouth.
- Affiliate marketing: a marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's own marketing efforts.
- Inbound marketing:
involves creating and freely sharing informative content as a means of
converting prospects into customers and customers into repeat buyers.
- Video marketing: This type of marketing specializes in creating videos that engage the viewer into a buying state by presenting information in video form and guiding them to a product or service Online video is increasingly becoming more popular among internet users and companies are seeing it as a viable method of attracting customers.
Business models
Internet marketing is associated with several business models:
- E-commerce: a model whereby goods and services are sold directly to consumers (B2C), businesses (B2B), or from consumer to consumer (C2C) using computers connected to a network.
- Lead-based websites: a strategy whereby an organization generates value by acquiring sales leads from its website. Similar to walk-in customers in retail world. These prospects are often referred to as organic leads.
- Affiliate Marketing: a process wherein a product or service developed by one entity is sold by other active sellers for a share of profits.
The entity that owns the product may provide some marketing material
(e.g., sales letters, affiliate links, tracking facilities, etc.);
however, the vast majority of affiliate marketing relationships come
from e-commerce businesses that offer affiliate programs.
- Local Internet marketing: a strategy through which a small company utilizes the Internet to find and to nurture relationships that can be used for real-world advantages. Local Internet marketing uses tools such as social media marketing, local directory listing, and targeted online sales promotions.
One-to-one approaches
In a one-to-one approach, marketers target a user browsing the
Internet alone and so that the marketers' messages reach the user
personally. This approach is used in search marketing, for which the advertisements are based on search engine keywords entered by the users. This approach usually works under the pay per click (PPC) method.
Appeal to specific interests
When appealing to specific interests, marketers place an emphasis on
appealing to a specific behavior or interest, rather than reaching out
to a broadly defined demographic. These marketers typically segment their markets according to age group, gender, geography, and other general factors.
Niche marketing
In conventional niche marketing, clusters of consumers (the niche) are identified in order to more economically and efficiently target them.
Similarly, niche internet marketing attempts to create a more direct
advertising message for those who are seen as most likely to buy the
product being advertised (see Target audience and Conversion rate).
Niche internet marketing focuses on marketing products and services
which are, or can appear, tailor-made for a specific subset of consumers
who are expected to buy the product or service with a specific
motivation. The online advertising message (or product web site) can
then be similarly tailor-made to target that assumed motivation. In combination with Search Engine Optimization,
the niche internet marketer can attempt to increase the likelihood that
their product's advertisement (or site) will be seen by customers in
the relevant niche.
For example, if one sells designer dog sweaters, one might first consider the prospective customer
who would be interested in these dog sweaters. One would then consider
the motivation that this customer would have in buying a designer dog
sweater (e.g. "My dog needs to look stylish.") One can then attempt to determine using keyword research which keywords might be best suited to weave into the page or advertisement (see Search engine optimization copywriting)
in order to maximize the likelihood that it will be seen by people who
are searching for a product which fulfills the targeted motivation
(resulting in, for example, "Your dog deserves to be the best dressed on
the block. Hendley Sweaters, 'Black Tie' for Dogs.")
Geo-targeting
In Internet marketing, geo targeting and geo marketing are the methods of determining the geolocation of a website visitor with geolocation software, and delivering different content to that visitor based on his or her location, such as latitude and longitude, country, region or state, city, metro code or zip code, organization, Internet Protocol (IP) address, ISP, and other criteria.
Advantages and limitations of Internet marketing
Advantages
Internet marketing is inexpensive when examining the ratio of cost to the reach of the target audience. Companies can reach a wide audience for a small fraction of traditional advertising budgets. The nature of the medium allows consumers to research and to purchase products and services conveniently. Therefore, businesses have the advantage of appealing to consumers in a medium that can bring results quickly. The strategy and overall effectiveness of marketing campaigns depend on business goals and cost-volume-profit (CVP) analysis.
Internet marketers also have the advantage of measuring statistics
easily and inexpensively; almost all aspects of an Internet marketing
campaign can be traced, measured, and tested, in many cases through the
use of an ad server. The advertisers can use a variety of methods, such as pay per impression, pay per click, pay per play, and pay per action. Therefore, marketers can determine which messages or offerings are more appealing to the audience.
The results of campaigns can be measured and tracked immediately
because online marketing initiatives usually require users to click on
an advertisement, to visit a website, and to perform a targeted action.
Limitations
- One of the challenges that internet markets face (as does the general public) is that many internet products are outright scams or promoted with deception making it difficult to know what one is buying. This is especially the case with products that are supposed to train or aid internet marketers in making money. While the quality of products has improved in the past few years, ethics is still often missing in internet marketing. Many so-called money making products are "empty boxes" in which there is essentially nothing there yet a buyer is to make money by reselling this empty box to others. Pyramid schemes are also still prevalent.
- The consumer is unable to physically feel or try on the product which can be a limitation for certain goods. However a survey of consumers of cosmetics products shows that email marketing can be used to interest a consumer to visit a store to try a product or to speak with sales representatives.
- Marketer will not be able to use the x-factor/personal touch factor/human touch factor to influence the audience as the marketing is completely based on the advertisement and the information that the advertisement might lead to [websites, blogs and other channels].
Security concerns
Information security
is important both to companies and consumers that participate in online
business. Many consumers are hesitant to purchase items over the
Internet because they do not believe that their personal information
will remain private. Some companies that purchase customer information
offer the option for individuals to have their information removed from
their promotional redistribution, also known as opting out.
However, many customers are unaware if and when their information is
being shared, and are unable to stop the transfer of their information
between companies if such activity occurs. Additionally, companies
holding private information are vulnerable to data attacks and leaks.
Internet browsing privacy is a related consumer concern. Web sites
routinely capture browsing and search history which can be used to
provide targeted advertising. Privacy policies can provide transparency
to these practices. Spyware prevention software can also be used to
shield the consumer.
See also: Browser security, Internet security, Spyware, and Internet Privacy
Another consumer e-commerce concern is whether or not they will
receive exactly what they purchase. Online merchants have attempted to
address this concern by investing in and building strong consumer brands
(e.g., Amazon.com, eBay, and Overstock.com), and by leveraging merchant and feedback rating systems and e-commerce bonding solutions. All these solutions attempt to assure consumers that their transactions
will be free of problems because the merchants can be trusted to
provide reliable products and services. Additionally, several major online payment mechanisms (credit cards, PayPal, Google Checkout, etc.) have provided back-end buyer protection systems to address problems if they occur.
"Internet marketing" scams
In May 2012, The Verge
writer Joseph L. Flatley reported that the terms "Internet marketing"
and "Internet marketer" have been co-opted by a loose association of confidence artists running online get-rich-quick schemes.
Usage trends
Technological advancements in the telecommunications industry have dramatically affected online advertising techniques. Many firms are embracing a paradigm that is shifting the focus of advertising methodology from traditional text and image advertisements to those containing more recent technologies like JavaScript and Adobe Flash. As a result, advertisers
can more effectively engage and connect their audience with their
campaigns that seek to shape consumer attitudes and feelings towards
specific products and services.
Effects on industries
The number of banks offering the ability to perform banking tasks over the internet has increased. Online banking appeals to customers because it is often faster and considered more convenient than visiting bank branches.
Internet auctions
See also: Online auction business model
Internet auctions have become a multi-billion dollar business. Unique items that could only previously be found at flea markets are now being sold on Internet auction websites such as eBay. Specialized e-stores sell a vast amount of items like antiques, movie props, clothing, gadgets, and so on.
As the premier online reselling platform, eBay is often used as a
price-basis for specialized items. Buyers and sellers often look at
prices on the website before going to flea markets; the price shown on
eBay often becomes the item's selling price.
Advertising industry
In addition to the major effect internet marketing has had on the
technology industry, the effect on the advertising industry itself has
been profound. In just a few years, online advertising has grown to be worth tens of billions of dollars annually. PricewaterhouseCoopers reported that US$16.9 billion was spent on Online marketing in the U.S. in 2006.
This has caused a growing impact on the United States' electoral process.
In 2008, candidates for President heavily utilized Internet marketing
strategies to reach constituents. During the 2007 primaries, candidates
added, on average, over 500 social network supporters per day to help
spread their message. President Barack Obama raised over US$1 million in one day during his extensive Democratic candidacy campaign, largely due to online donors.
Several industries have heavily invested in and benefited from
internet marketing and online advertising. Some of them were originally brick and mortar businesses such as publishing, music, automotive or gambling, while others have sprung up as purely online businesses, such as digital design and media, blogging, and internet service hosting.
Film and Television Marketing
Industries such as film and television were somewhat slow when it came to putting content on the Internet. Film trailers,
television show schedules and "interactive" press kits came on the
scene quite quickly as the content that promoted such products. This
major media platform was developed with investments of millions by the film studios and television networks because it was a valuable marketing tool
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