WHAT IS E-MARKET

Friday, September 18, 2009

Internet marketing, also referred to as i-marketing, web marketing, online marketing, or eMarketing, is the marketing of products, or, services over the Internet.

The Internet has brought many unique benefits to marketing, one being the lower costs and greater capabilities for the distribution of information and media to a global audience. The interactive nature of Internet marketing, both, in terms of providing instant response and eliciting responses, is a unique quality of the medium. Internet marketing is sometimes considered to have a broader scope because it not only refers to digital media, such as, the Internet, e-mail, and wireless media, but also it includes management of digital customer data and electronic customer relationship management (ECRM) systems.

Internet marketing ties together creative and technical aspects of the Internet including design, development, advertising, and sales.

Internet marketing also refers to the placement of media along different stages of the customer engagement cycle through search engine marketing (SEM), search engine optimization (SEO), banner ads on specific websites, e-mail marketing, and Web 2.0 strategies. In 2008 The New York Times, working with comScore, published an initial estimate to quantify the user data collected by large Internet-based companies. Counting four types of interactions with company websites in addition to the hits from advertisements served from advertising networks, the authors found the potential for collecting data upward of 2,500 times on average per user per month.

MORE ABOUT E MARKETING

Business models

Internet marketing is associated with several business models:

• e-commerce — this is where goods are sold directly to consumers (B2C) or businesses (B2B)
• Publishing — this is the sale of advertising
• lead-based websites — this is an organization that generates value by acquiring sales leads from its website
• affiliate marketing — this is process in which a product or service developed by one person is sold by other active seller for a share of profits. The owner of the product normally provide some marketing material ( sales letter, affiliate link, tracking facility).

There are many other business models based on the specific needs of each person or the business that launches an Internet marketing campaign.

One-to-one approach

The targeted user is typically browsing the Internet alone therefore the marketing messages can reach them personally. This approach is used in search marketing, where the advertisements are based on search engine keywords entered by the user.

And now with the advent of Web 2.0 tools, many users can interconnect as "peers."

Appeal to specific interests

Internet marketing and geo marketing places an emphasis on marketing that appeals to a specific behaviour or interest, rather than reaching out to a broadly-defined demographic. "On- and Off-line" marketers typically segment their markets according to age group, gender, geography, and other general factors. Marketers have the luxury of targeting by activity and geolocation. For example, a kayak company can post advertisements on kayaking and canoeing websites with the full knowledge that the audience has a related interest.

Internet marketing differs from magazine advertisements, where the goal is to appeal to the projected demographic of the periodical, but rather the advertiser has knowledge of the target audience—people who engage in certain activities (e.g., uploading pictures, contributing to blogs)— so the company does not rely on the expectation that a certain group of people will be interested in its new product or service.

[edit] Geo targeting

Geo targeting (in internet marketing) and geo marketing are the methods of determining the geolocation (the physical location) of a website visitor with geolocation software, and delivering different content to that visitor based on his or her location, such as country, region/state, city, metro code/zip code, organization, Internet Protocol (IP) address, ISP or other criteria.

Different content by choice

A typical example for different content by choice in geo targeting is the FedEx website at FedEx.com where users have the choice to select their country location first and are then presented with a different site or article content depending on their selection.

Automated different content

With automated different content in Internet marketing and geomarketing, the delivery of different content based on the geographical geolocation and other personal information is automated.

Advantages

Internet marketing is relatively inexpensive when compared to the ratio of cost against 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 purchase products and services at their own convenience. 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. Nearly all aspects of an Internet marketing campaign can be traced, measured, and tested. The advertisers can use a variety of methods: pay per impression, pay per click, pay per play, or 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, visit a website, and perform a targeted action. Such measurement cannot be achieved through billboard advertising, where an individual will at best be interested, then decide to obtain more information at a later time.

Internet marketing as of 2007 is growing faster than other types of media.^{[citation needed]} Because exposure, response, and overall efficiency of Internet media are easier to track than traditional off-line media—through the use of web analytics for instance—Internet marketing can offer a greater sense of accountability for advertisers. Marketers and their clients are becoming aware of the need to measure the collaborative effects of marketing (i.e., how the Internet affects in-store sales) rather than siloing each advertising medium. The effects of multichannel marketing can be difficult to determine, but are an important part of ascertaining the value of media campaigns.

Limitations

Internet marketing requires customers to use newer technologies rather than traditional media. Low-speed Internet connections are another barrier. If companies build large or overly-complicated websites, individuals connected to the Internet via dial-up connections or mobile devices experience significant delays in content delivery.

From the buyer's perspective, the inability of shoppers to touch, smell, taste or "try on" tangible goods before making an online purchase can be limiting. However, there is an industry standard for e-commerce vendors to reassure customers by having liberal return policies as well as providing in-store pick-up services.

A survey of 410 marketing executives listed the following barriers to entry for large companies looking to market online: insufficient ability to measure impact, lack of internal capability, and difficulty convincing senior management.^[2]

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 trust that their personal information will remain private. Encryption is the primary method for implementing privacy policies.

Recently some companies that do business online have been caught giving away or selling information about their customers. Several of these companies provide guarantees on their websites, claiming that customer information will remain private. Some companies that purchase customer information offer the option for individuals to have their information removed from the database, 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.

Another major security concern that consumers have with e-commerce merchants 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, Overstock.com), and by leveraging merchant/feedback rating systems and e-commerce bonding solutions. All of 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, the major online payment mechanisms (credit cards, PayPal, Google Checkout, etc.) have also provided back-end buyer protection systems to address problems if they actually do occur.

Broadband-induced trends

Online advertising techniques have been dramatically affected by technological advancements in the telecommunications industry. In fact, many firms are embracing a new paradigm that is shifting the focus of online advertising from simple text ads to rich multimedia experiences. As a result, advertisers can more effectively engage in and manage online branding campaigns, which seek to shape consumer attitudes and feelings towards specific products. The critical technological development fueling this paradigm shift is Broadband.

In March 2005, roughly half of all American homes were equipped with broadband technology. By May 2008, broadband technologies had spread to more than 90% of all residential Internet connections in the United States. When one considers a Nielsen’s study conducted in June 2008, which estimated the number of U.S. Internet users as 220,141,969, one can calculate that there are presently about 199 million people in the United States utilizing broadband technologies to surf the Web.

As a result, all 199 million members of this burgeoning market have the ability to view TV-like advertisements with the click of a mouse. And to be sure, online advertisers are working feverishly to design rich multimedia content that will engender a “warm-fuzzy” feeling when viewed by their target audience. As connection speeds continue to increase, so will the frequency of online branding campaigns.

Effects on industries

Internet marketing has had a large impact on several previously retail-oriented industries including music, film, pharmaceuticals, banking, flea markets, as well as the advertising industry itself. Internet marketing is now overtaking radio marketing in terms of market share.^[3] In the music industry, many consumers have been purchasing and downloading music (e.g., MP3 files) over the Internet for several years in addition to purchasing compact discs. By 2008 Apple Inc.'s iTunes Store has become the largest music vendor in the United States

The number of banks offering the ability to perform banking tasks online has also increased. Online banking is believed to appeal to customers because it is more convenient than visiting bank branches. Currently over 150 million U.S. adults now bank online, with increasing Internet connection speed being the primary reason for fast growth in the online banking industry.^{[citation needed]} Of those individuals who use the Internet, 44 percent now perform banking activities over the Internet.

Internet auctions have gained popularity. Unique items that could only previously be found at flea markets are being sold on eBay. Specialized e-stores sell items ranging from antiques to movie props.^[5][6] 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. It is increasingly common for flea market vendors to place a targeted advertisement on the Internet for each item they are selling online, all while running their business out of their homes.

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 Internet marketing in the U.S. in 2006.

Internet marketing has had a growing impact on the 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.^[11] President Barack Obama raised over US$1 million in a single day during his extensive Democratic candidacy campaign, largely due to online donors.

Article marketing

Thursday, September 17, 2009

Article marketing is a type of advertising in which businesses write short articles related to their respective industry. These articles are made available for distribution and publication in the marketplace. Each article contains a bio box and byline that include references and contact information for the author's business. Well-written content articles released for free distribution have the potential of increasing the authoring business' credibility within its market as well as attracting new clients.

Background

Article marketing has been used by professionals for nearly as long as mass print has been available. In paper-print form (as opposed to online forms), article marketing is utilized commonly by business owners as a means of obtaining free press space. A local business provides useful content to the newspaper free of charge, and in return the newspaper prints the business' contact information with the article. Because newspapers and other traditional media are expected to present content on limited budgets, this arrangement is generally advantageous for all parties involved.

For example, an accounting firm may market itself by writing an article entitled "The Top 10 Ways to Avoid Being Audited" and offering it to the local newspapers several weeks prior to tax season. Similarly, a roofing company may offer radio stations a concise article entitled "How to Avoid Ice Damage to Your Roof this Winter" shortly before the winter season.

Online article marketing

With the rise of e-commerce and internet marketing, article marketing has made a move to the online world as well. As in traditional forms of media, online article marketing has served the dual role of providing publishers with what amounts to free content, and advertisers with similarly free advertising.

The website where an author can post an article is known as an article directory. The primary reason an author can post an article without cost is that the directory owner places advertising on each article page and collects the revenue generated from the advertising. The article directory site gradually increases its own search engine popularity as more articles are posted, benefitting both the author and the directory owner with increased visitor numbers and therefore article page views.

However unlike the off-line version, there are additional dimensions to article marketing online. Most notable among the differences is the use of articles for search engine optimization. Articles are written to target particular keyword niches, and distributed to content publishers that cater to those markets. Authors are able to target their audience with informative content, sent to an already-interested group of readers.

Many online article marketers enjoy the low cost of this type of advertising and so have written hundreds and sometimes thousands of articles. One online article writer has written 12,900 articles. These prolific article authors also enjoy abundant backlinks (i.e., links pointing back to the business' website). When the articles are distributed via RSS, the exposure to the authoring business and number of backlinks is increased greatly.

Another article marketing option available is where the author can choose to take control of the advertising space on the page where his article is posted. With this option the author has the choice to either have no advertising to compete with the article, or to have control over the advertising on the page along with the revenue generated.

Web 2.0

Article marketing has become increasingly popular as a marketing method under the Web 2.0 generation of business on the Internet. Many subjects have gained popularity through viral propagation of articles via social networks such as Facebook and LinkedIn.

The sudden popularity of article marketing has caused an overall reduction in quality in many subjects, mainly due to individuals writing low-quality articles as a quick way of achieving exposure. Efficient use of article marketing as a form of promotion requires invested effort in writing high-quality, relevant articles.

Search engine optimization

Search engine optimization (SEO) deals with the order in which webpages are ranked when keywords or phrases are typed into search engines. The higher a page is ranked, the more likely that page will draw a greater number of site visitors. For company websites, increased traffic often translates into increased sales, and article marketing has proven to be useful and effective for several leading Internet marketing ventures.

One method of SEO encompasses the idea that a website's rank in search engines will rise as it obtains more backlinks. Therefore, writing and distributing articles that contain a link to a business owner's website within the bio box should result in more links back to that website. Theoretically this process will increase that website's rank within search engines. This theory has led to a trend in online marketing toward writing articles solely for SEO purposes, and are commonly referred to as reprint articles. This trend has been matched by a wide selection of article marketing directory websites which accept, vet, and provide redistribution of such articles to online publishers.

The free distribution of articles has, however, led to a large amount of duplicated content appearing on websites across the Internet. The quality of articles can also suffer as some authors seek a large quantity of backlinks at the possible expense of content quality.

Call to action (marketing)

In web design a Call to Action is a response you want all users to complete when they land on your page. Effectively identifying the call to action will help improve your conversion rate.

Digital Marketing

Digital Marketing is the promoting of brands using the Internet, mobile and other interactive channels.

Digital Marketing is the practice of promoting products and services using digital distribution channels to reach consumers in a timely, relevant, personal and cost-effective manner.

Whilst digital marketing does include many of the techniques and practices contained within the category of Internet Marketing, it extends beyond this by including other channels with which to reach people that do not require the use of The Internet. As a result of this non-reliance on the Internet, the field of digital marketing includes a whole host of elements such as mobile phones, sms/mms, display / banner ads and digital outdoor.

Previously seen as a stand-alone service in its own right, it is frequently being seen as a domain that can and does cover most, if not all, of the more traditional marketing areas such as Direct Marketing by providing the same method of communicating with an audience but in a digital fashion. Digital is now being broadened to support the "servicing" and "engagement" of customers.

Digital Marketing – Pull vs. Push

There are 2 different forms of digital marketing, each of which has its pros and cons.

Pull

Pull digital marketing technologies involve the user having to seek out and directly grab (or pull) the content via web search. Web site/blogs and streaming media (audio and video) are good examples of this. In each of these examples, users have a specific link (URL) to view the content.

Pros:

No restrictions in terms of type of content or size as the user determines what they want.

• No technology required to send the content, only to store/display it.
• No regulations or opt-in process required.

Cons:

• Considerable marketing effort required for users to find the message/content.
• Limited tracking capabilities – only total downloads, page views, etc.
• No personalization – content is received and viewed the same across all audiences

Push

Push digital marketing technologies involve both the marketer (creator of the message) as well as the recipients (the user). Email, SMS, RSS are examples of push digital marketing. In each of these examples, the marketer has to send (push) the messages to the users (subscribers) in order for the message to be received.

Pros:

• Can be personalized -- messages received can be highly targeted and specific to selected criteria – like a special offer for females, 21 years old or over and living in California.
• Detailed tracking and reporting – marketers can see not only how many people saw their message but also specific information about each user such as their name as well as demographic and psychographic data.
• High Return on Investment (ROI) possible – if executed the right way, push messaging can help drive new revenue as well as brand reinforcement.

Cons:

• Compliance issue – each push messaging technology has its own set of regulations, from minor (RSS) to heavily controlled (email and text messaging)
• Requires mechanism to deliver content – the marketer has to use an application to send the message, from an email marketing system to RSS feeders.
• Delivery can be blocked – if the marketer does not follow the regulations set forth by each push message type, the content can be refused or rejected before getting to the intended recipient.

Digital Marketing and Multi-Channel Communications

While digital marketing is effective when using one message type, it is much more successful when a marketer combines multiple channels in the message campaigns. For example, if a company is trying to promote a new product release, they could send out an email message or text campaign individually. This, if properly executed, could yield positive results. However, this same campaign could be exponentially improved if multiple message types are implemented.

An email could be sent to a list of potential customers with a special offer for those that also include their cell phone number. A couple of days later, a follow up campaign would be sent via text message (SMS) with the special offer.

Push and pull message technologies can also be used in conjunction with each other. For example, an email campaign can include a banner ad or link to a content download. This enables a marketer to have the best of both worlds in terms of their marketing messaging.

Digital Marketing Terms

Banner Ad

An advertisement that appears on a Web page, most commonly at the top (header) or bottom (footer) of the page. Designed to have the user click on it for more information (see Microsite)

Blacklisted

A blacklisted notice means that the message may not have been delivered due to be flagged on one of the major lists that keep tabs of known spammers. Different ISPs use different blacklists to block mailings from being delivered to their clients. It can be a temporary ban or a permanent one, depending upon the list.

Blocked

A blocked notice means that the message did not get through due to being considered spam by the subscriber’s ISP. This may be due to being on a blacklist or because the message contains a domain that is already being blocked.

Blog

Shortened from “web log” a blog is a user-generated Web site where entries are made in journal style and displayed in a reverse chronological order.

Campaign

A campaign is a specific message being sent to a specific group of recipients.

CAN SPAM Act

The CAN SPAM ACT is a series of federal laws that must be followed by all email marketers. Those found in violation of the laws can be subjected to major penalties. For more information, go to http://www.spamlaws.com/federal/index.shtml

Click Through

The number of times people clicked on the links in your message. This is often referred to as CTR (Click Through Rate). Note: you must have enabled click through tracking in the campaign in order for this to be recorded.

Digital Brand Engagement

Brand and consumer interaction through the Internet. This includes all aspects of dialogue through the social web and on the brand's own website.

DMA Market

DMA stands for Designated Market Area, which is often associated with the entertainment industry. DMAs are usually counties (or sometimes split counties) that contain a large population that can be targeted, such as New York City, Los Angeles or Chicago.

Email Service Provider (ESP)

Outside companies like mobileStorm that send bulk emails on behalf of their clients to prevent their messages as being labeled as spam or blocked entirely.

False Positives

Legitimate messages being labeled as “spam” Can cost companies potentially millions in potential lost revenue if not dealt with correctly.

GPRL

The Global Permanent Removal List consists of records that are automatically removed from a particular database. Almost all email service providers (ESP) or multi-channel messaging companies maintain these lists for their clients.

Instant Messaging

Instant messaging (often shortened to IM) is a type of communications service that enables you to create a kind of private chat room with another individual in order to communicate in real time over the Internet.

Keywords

Used in conjunction with SMS messages. A user types a short code and matching keyword in order to be added to a mobile club or database.

Microsite

A mini Web site design to promote a specific portion or brand from a larger corporate site. Used often with contests or as a landing page for a specific promotion.

Open Rate

This is a ratio determined by the number of people who opened your email against the total number of people to whom you sent the message. Typically, this number will be low for large campaigns and higher for more targeted campaigns.

Opt-In List

Email marketers have databases of subscribers to their newsletters, featuring these subscribers' email addresses and names. Such a list is known as an opt-in list (and is thus CAN-SPAM compliant; see above for info on the CAN-SPAM act) because users choose to receive the emails. This is in contrast to spam email, which is unsolicited.

Personalization

Personalization gives you the ability to create a customized message for each person in your database. Can be addressed by first/last name, city, state, zip, etc.

RSS

RSS or Real Simple Syndication is technology designed to allow users to subscribe to a specific content feed and be automatically alerted when new updates are available.

RSS Reader

Application used to subscribe and monitor selected RSS content feeds.

Short Code

A short code is a 5 digit number that is used to send and respond to text messages. They can either be a random set of numbers or a “vanity” number tied to a specific brand or number pattern.

SMS

SMS (Short Message Service) is a one-way text message sent via a cell phone. It is usually received via the subscribers' text message inbox on their cell phone and can be a maximum of 160 characters per message.

Social Bookmarking

Social Bookmarking is a popular way to store, classify, share and search links that are combined into a single site for easy access.

Spam

An email message that is unwanted by the recipient. Legitimate emails can sometimes be incorrectly identified as spam and is a growing problem.

Streaming Technologies

Communication channel such as video and audio that is accessed online. Can be a pre-stored clip to access as well as a live feed that is streamed like an online broadcast.

Subscriber

A person who signs up to receive messages from a particular company or entity.

Targeting

Targeting allows you to send a message to people based on specific criteria from your subscriber database.

Voice Broadcast

Sending a pre-recorded voice messages to a large set of phone numbers at the time same. Can either be a voice call (meaning the recipient must answer the call for the message to play) or voice mail (meaning the message will play only if the recipient doesn’t answer )

Widget

A small graphical device that does a highly focused, often single, specific task. Web widgets can be embedded in web pages or run on the desktop of a PC (Windows or Mac) using software such as Apple's Dashboard software or Yahoo! Widgets Engine.

Inbound marketing

Inbound marketing and its opposite outbound marketing have various meanings depending on the context.

• One pair of definitions^[ are:
  • Inbound marketing is a style of marketing that focuses on getting found by customers. This sense is related to relationship marketing and Seth Godin's idea of permission marketing. David Meerman Scott recommends that marketers "publish their way in" (via blogs etc.) in contrast to outbound marketing where they used to have to "buy their way in" (via paid advertisements). Next best action marketing can also be applied.
  • Traditional marketing (outbound marketing) is where companies focus on finding customers by advertising. This sense is related to intrusion marketing and Godin's term interruption marketing.
• An older pair of definitions^[5] are:
  • Inbound marketing is market research. In this sense, pieces of information about customer needs, not customers themselves, flow into the company. Knowledge of customer needs drives future product capability. This sense is related to the term product management. Peter Drucker believed^[6] this to be the quintessence of marketing.
  • Outbound marketing is marketing communications. In this sense, information about finished product capability flows out to prospective customers who have a need for it. This sense is related to the term product marketing.

In-text advertising

In-text advertising is a form of contextual advertising where specific words within the text of a webpage are associated with advertising content.

DESCRIPTION

Although contextual advertising in general refers to the inclusion of advertisements adjacent to relevant online context (e.g., Google AdSense), in-text advertising places hyperlinks directly into the text of the webpage. Most in-text advertising has the following characteristics:

1. The text associated with an advertisement is identified by a double-underline to differentiate it from regular hyperlinks.
2. An in-page window containing advertising content appears when the cursor is positioned over the corresponding text.

Lead scoring

Lead scoring is a method of assigning points to each prospect you come across. Points are assigned based on specific criteria you set—those attributes you've identified as being most often associated with serious prospective customers. The higher the score, the more likely they're the right target prospect who is actively engaged in the buying process, and should be routed to sales.

The most accurate lead scoring models comprise both explicit and implicit information. Explicit scores are based on information provided by or about the prospect—for example, company size, industry segment, job title or geographic location. Implicit scores are derived from monitoring prospect behavior; examples of these include Web-site visits, whitepaper downloads or e-mail opens and clicks.

Research has shown that self-supplied explicit data can sometimes be overinflated or understated, but actions never lie, so a combination of the two (implicit and explicit) will give the best criteria on which to score.

Media transparency

Media transparency is the concept of determining how and why information is conveyed through various means.

This is a specific case of the topic, Transparency (humanities)^[1]. As used in the humanities, it implies openness and accountability. It is a metaphorical extension of the meaning used a “transparent” object is one that can be seen through.

In communication studies, Media is transparent when:

• there are many, often competing, sources of information
• much is known about the method of information delivery
• the funding of media production is publicly available

Aspects of transparent media include open source documentation, open meetings, financial disclosure statements, the freedom of information legislation, budgetary review, audit, peer review, etc.

Some organisations and networks insist that not only the ordinary information of interest to the community is made freely available, but that all (or nearly all) meta-levels of organising and decision-making are themselves also published. This is known as radical transparency. These organizations include: Wikipedia, the GNU/Linux community, and Indymedia.

Online identity management (OIM)

Online identity management (OIM) also known as online image management or online personal branding is a set of methods for generating a distinguished Web presence of a person on the Internet. That presence could be reflected in any kind of content that refers to the person, including news, participation in blogs and forums, personal web sites (Marcus, Machilek & Schütz 2006), social media presence, pictures, video, etc.

Online identity management also refers to identity exposure and identity disclosure, and has particularly developed in the management on online identity in social network services (Tufekci 2008) or online dating services (Siibak 2007).

One aspect of the online identity management process has to do with improving the quantity and quality of traffic to sites that have content related to a person. In that aspect, OIM is a part of another discipline called search engine optimization with the difference that the only keyword is the person's name, and the optimization object is not necessary a single web site; it can consider a set of completely different sites that contain positive online references. The objective in this case is to get high rankings for as many sites as possible when someone search for a person's name. If the search engine used is Google, this action is called "to google someone"

Another aspect has to do with impression management, i.e. "the process through which people try to control the impressions other people form of them". One of the objective is in particular to increase the online reputation of the person.

Online identity management often involves participation in social media sites like Facebook, Flickr, YouTube, Twitter, Twitxr, Last.fm, Myspace, Orkut and other online communities and community websites, and is related to blogging, blog social networks like MyBlogLog and blog search engines like Technorati.

But it can also consist in more questionable practices. Hense in the case of social network services users have the possibility to buy 'friends' so to increase their visibility

Online Lead Generation

Online Lead Generation is a marketing term that refers to the creation or generation of prospective consumer interest or inquiry into a business' products or services online. Leads can be generated for a variety of purposes - list building, e-newsletter list acquisition, building out reward programs, loyalty programs or for other member acquisition programs.

A lead is a sign-up for an advertiser offer that includes contact information and in some cases, demographic information. There are two types of leads in the lead generation market: sales leads and marketing leads.

Sales leads are generated on the basis of demographic criteria such as FICO score, income, age, HHI, etc. These leads are resold to multiple advertisers. Sales leads are typically followed up through phone calls by the sales force. Sales leads are commonly found in the mortgage, insurance and finance leads.

Marketing leads are brand-specific leads generated for a unique advertiser offer. In direct contrast to sales leads, marketing leads are sold only once. Because transparency is a necessary requisite for generating marketing leads, marketing lead campaigns can be optimized by mapping leads to their sources.

Online pricing models

There are three pricing models in the online advertising market that marketers can use to buy advertising and generate leads.

CPM (Cost-per-Thousand) Pricing Models charge advertisers for impressions — i.e. the number of times people view an advertisement. Display advertising is commonly sold on a CPM pricing model. The problem with CPM advertising is that advertisers are charged even if the target audience does not click on (or even view) the advertisement.

CPC (Cost-per-Click) advertising overcomes this problem by charging advertisers only when the consumer clicks on the advertisement. However, due to increased competition, search keywords have become very expensive. A 2007 Doubleclick Performics Search trends Report shows that there were nearly six times as many keywords with a cost per click (CPC) of more than $1 in January of 2007 than the prior year. The cost per keyword increased by 33% and the cost per click rose by as much as 55%.

CPL (Cost-per-Lead) advertising solves risk of CPM and CPC by charging only by the lead. Like CPC the price per lead can be bid up by demand. Also like CPC there are ways that providors can commit fraud by manufacturing leads or blending one source of lead with another (example - search driven leads with co-registration leads)to generate higher profits.

In recent times, there has been a rapid increase in online lead generation — banner and direct response advertising that works off a CPL pricing model. In a Cost-per-Lead pricing model, advertisers pay only for qualified leads — irrespective of the clicks or impressions that went into generating the lead. CPL advertising is also commonly referred to as online lead generation.

CPL pricing models are the most advertiser friendly. A recent IBM research study found that two-thirds of senior marketers expect 20 percent of ad revenue to move away from impression-based sales, in favor of action-based models within three years.

It also helps explain why 2007 saw a paradigm shift for the industry, with spending on performance based pricing models exceed that on display (IAB PWC 2007 Internet Spending Report)for the first time.

A GP Bullhound Research report states that the online lead generation is growing at 71% YTY — more than twice as fast as the online advertising market. The rapid growth is primarily driven by the advertiser demand for ROI focused marketing, a trend that is expected to accelerate during a recession.

Common types of opt-in ad units are:

• AdUnitX Banners: AdUnit X banners allow advertisers to run display advertising on a CPL pricing model. These banners eliminate the need for users to click-through a landing page. The user enters her/his information within the banner. Contact details are transmitted automatically from the publisher to the advertiser via the backend.
• Co-registration advertising (aka Co-Reg): The advertiser receives some or all of the standard fields collected by a site during the site's registration process.
• Full Page Lead Generation: The advertiser's offer appears as a full page ad in an HTML format with relevant text and graphics. The advertiser receives the standard fields and answers to as many as twenty custom questions that s/he defines.
• On-Line Survey: Consumers are asked to complete a survey, including their demographic information and product and lifestyle interests. This information is used as a sales leads for advertisers, who purchase the consumer's information. The consumer has 'opted-in' to receive correspondence from the advertiser and are therefore considered a 'qualified lead'.

CPL advertising and CPA advertising

For marketers that are looking to pay only for specific actions, there are two options: CPL advertising (or online lead generation) and CPA advertising (also referred to as affiliate marketing)

In CPL campaigns, advertisers pay for an interested lead — i.e. the contact information of a person interested in the advertiser's product or service. CPL campaigns are suitable for brand marketers and direct response marketers looking to engage consumers at multiple touchpoints — by building a newsletter list, community site, reward program or member acquisition program.

In CPA campaigns, the advertiser typically pays for a completed sale involving a credit card transaction. CPA is all about 'now' — it focuses on driving consumers to buy at that exact moment. If a visitor to the website doesn't buy anything, there's no easy way to remarket to them.

Classified advertising

Classified advertising is a form of advertising which is particularly common in newspapers, online and other periodicals, e.g. free ads papers or Pennysavers. Classified advertising differs from standard advertising or business models in that it allows private individuals (not simply companies or corporate entities) to solicit sales for products and services.

Pay per click

Pay per click (PPC) is an Internet advertising model used on websites, in which advertisers pay their host only when their ad is clicked. With search engines, advertisers typically bid on keyword phrases relevant to their target market. Content sites commonly charge a fixed price per click rather than use a bidding system.

Cost per click (CPC) is the amount of money an advertiser pays search engines and other Internet publishers for a single click on its advertisement that brings one visitor to its website.

In contrast to the generalized portal, which seeks to drive a high volume of traffic to one site, PPC implements so called affiliate model, that provides purchase opportunities wherever people may be surfing. It does this by offering financial incentives (in the form of a percentage of revenue) to affiliated partner sites. The affiliates provide purchase-point click-through to the merchant. It is a pay-for-performance model -- if an affiliate does not generate sales, it represents no cost to the merchant. The affiliate model is inherently well-suited to the web, which explains its popularity. Variations include, banner exchange, pay-per-click, and revenue sharing programs.

Websites that utilize PPC ads will display an advertisement when a keyword query matches an advertiser's keyword list, or when a content site displays relevant content. Such advertisements are called sponsored links or sponsored ads, and appear adjacent to or above organic results on search engine results pages, or anywhere a web developer chooses on a content site.

Although many PPC providers exist, Google AdWords, Yahoo! Search Marketing, and Microsoft adCenter are the three largest network operators, and all three operate under a bid-based model. Cost per click (CPC) varies depending on the search engine and the level of competition for a particular keyword.

The PPC advertising model is open to abuse through click fraud, although Google and others have implemented automated systems to guard against abusive clicks by competitors or corrupt web developers.

Social media optimization

Social media optimization (SMO) is a set of methods for generating publicity through social media, online communities and community websites. Methods of SMO include adding RSS feeds, social news buttons, blogging, and incorporating third-party community functionalities like images and videos. Social media optimization is related to search engine marketing, but differs in several ways, primarily the focus on driving traffic from sources other than search engines, though improved search ranking is also a benefit of successful SMO.

Social media optimization is in many ways connected as a technique to viral marketing where word of mouth is created not through friends or family but through the use of networking in social bookmarking, video and photo sharing websites. In a similar way the engagement with blogs achieves the same by sharing content through the use of RSS in the blogosphere and special blog search engines.

Social Media optimization is considered an integral part of an online reputation management (ORM) or Search Engine Reputation Management (SERM) strategy for organizations or individuals who care about their online presence.

Template:Business Strategy Social Media Optimisation (SMO), is not limited to marketing and brand building. Increasingly smart businesses are integrating social media participation as part of their knowledge management strategy (ie. product/service development, recruiting, employee engagement and turnover, brand building, customer satisfaction and relations, business development and more).

WEB BANNER

A web banner or banner ad is a form of advertising on the World Wide Web. This form of online advertising entails embedding an advertisement into a web page. It is intended to attract traffic to a website by linking to the website of the advertiser. The advertisement is constructed from an image (GIF, JPEG, PNG), JavaScript program or multimedia object employing technologies such as Silverlight, Java, Shockwave or Flash, often employing animation, sound, or video to maximize presence. Images are usually in a high-aspect ratio shape (i.e. either wide and short, or tall and narrow) hence the reference to banners. These images are usually placed on web pages that have interesting content, such as a newspaper article or an opinion piece.
Typical web banner, sized 468×60 pixels.

The web banner is displayed when a web page that references the banner is loaded into a web browser. This event is known as an "impression". When the viewer clicks on the banner, the viewer is directed to the website advertised in the banner. This event is known as a "click through". In many cases, banners are delivered by a central ad server.

When the advertiser scans their logfiles and detects that a web user has visited the advertiser's site from the content site by clicking on the banner ad, the advertiser sends the content provider some small amount of money (usually around five to ten US cents). This payback system is often how the content provider is able to pay for the Internet access to supply the content in the first place.

Web banners function the same way as traditional advertisements are intended to function: notifying consumers of the product or service and presenting reasons why the consumer should choose the product in question, although web banners differ in that the results for advertisement campaigns may be monitored real-time and may be targeted to the viewer's interests.

Many web surfers regard these advertisements as highly annoying because they distract from a web page's actual content or waste bandwidth. (Of course, the purpose of the banner ad is to attract attention and many advertisers try to get attention to the advert by making them annoying. Without attracting attention it would provide no revenue for the advertiser or for the content provider.) Newer web browsers often include options to disable pop-ups or block images from selected websites. Another way of avoiding banners is to use a proxy server that blocks them, such as Privoxy.