i Understanding Digital Marketing ii Also available by Damian Ryan: The Best Digital Marketing Campaigns in the World II In the second collection of The Best Digital Marketing Campaigns in the World, Damian Ryan presents an international showcase of the most successful digital marketing campaigns in recent history. Full of behind-the-scenes insights into campaign strategy, implementation and results, it explores how businesses and agencies, large and small, have harnessed social media, blogs, video, e-mail, mobile and search to boost their brand and engage with consumers. Covering a wide range of world-class, award-winning campaigns including Red Bull and Stratos, Peugeot: Let Your Body Drive, and Students Beans’ Freshersfields.com, The Best Digital Marketing Campaigns in the World II is an inspirational showcase of digital creativity. Providing a fascinating snapshot of the digital landscape and a privileged insight into some of the freshest, most creative thinking in the industry, this is a must-read for everyone studying or working in marketing and advertising. ISBN: 978 0 7494 6968 9 Published by Kogan Page iii Third ediTion Understanding Digital Marketing Marketing strategies for engaging the digital generation Damian Ryan iv Publisher’s note Every possible effort has been made to ensure that the information contained in this book is accurate at the time of going to press, and the publishers and authors cannot accept responsibility for any errors or omissions, however caused. No responsibility for loss or damage occasioned to any person acting, or refraining from action, as a result of the ma- terial in this publication can be accepted by the editor, the publisher or the authors. First published in Great Britain and the United States in 2009 by Kogan Page Limited Second edition 2012 Third edition 2014 Apart from any fair dealing for the purposes of research or private study, or criticism or review, as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be repro- duced, stored or transmitted, in any form or by any means, with the prior permission in writing of the publishers, or in the case of reprographic reproduction in accordance with the terms and licences issued by the CLA. Enquiries concerning reproduction outside these terms should be sent to the publishers at the undermentioned addresses: 2nd Floor, 45 Gee Street 1518 Walnut Street, Suite 1100 4737/23 Ansari Road London EC1V 3RS Philadelphia PA 19102 Daryaganj United Kingdom USA New Delhi 110002 www.koganpage.com India © Damian Ryan, 2014 The right of Damian Ryan to be identified as the author of this work has been asserted by him in accordance with the Copyright, Designs and Patents Act 1988. ISBN 978 0 7494 7102 6 E-ISBN 978 0 7494 7103 3 British Library Cataloguing-in-Publication Data A CIP record for this book is available from the British Library. Library of Congress Cataloging-in-Publication Data Ryan, Damian. Understanding digital marketing / Damian Ryan. – Third edition. pages cm ISBN 978-0-7494-7102-6 (paperback) – ISBN 978-0-7494-7103-3 (ebook) 1. Internet marketing. 2. Social media. 3. Strategic planning. 4. Marketing–Management. I. Title. HF5415.1265.R93 2014 658.8’72–dc23 2014013409 Typeset by Graphicraft Limited, Hong Kong Print production managed by Jellyfish Printed and bound by CPI Group (UK) Ltd, Croydon, CR0 4YY Contents Contents v Preface ix Contributors’ Biographies xiv Acknowledgements xix So... you want to go digital??? 1 In the beginning... 1 The changing face of advertising 2 The technology behind digital marketing 4 Enough technology... let’s talk about people 12 @first... think! 21 v Why you need a digital marketing strategy 21 Your business and digital marketing 22 Defining your digital marketing strategy 25 Understanding the digital consumer 27 Mind your Ps 33 Contents Eyes on the prize 37 Bringing it all together 39 Then build your channel 43 Your website – the hub of your digital marketing world 43 Building an effective website 45 The main steps of building your website 46 Before you start 46 Choosing your domain name 51 Hosting – your website’s home on the internet 53 How to choose a web designer/developer 57 Arranging your information 58 Writing effective web content 60 Preface ix Is it working? 69 Owned, paid and earned 70 Contributors’ biographies xiv Log files versus page tagging 72 Augmenting information using cookies 73 Acknowledgements xix Test and test again 74 Measuring paid media 76 Attribution modelling 77 Who am I talking to? 79 Making Measurement Make Sense (3MS) 81 01 so... you want to go digital??? 1 TThhee rpertoubrlne mof oGf ReaPr ned media 8823 What are you trying to achieve? 84 Why KPIs are important 84 In the beginning... 1 Choosing effective KPIs 85 The need for trust 89 The changing face of advertising 2 Are customers finding you? 103 Search: still the online marketer’s holy grail 103 About the engines 106 The technology behind digital marketing 4 Optimizing your site for the engines 108 Advertising on the search engines 128 Enough technology... let’s talk about people 12 Mobile search 136 Black hat, the darker side of search 137 Case study: Harley-Davidson 17 Bringing in the pros 141 Universal search – more opportunities to rank 142 Shifting goalposts – search innovation and the quest for relevance 143 Looking forward 147 Understanding social media 150 02 @first... think! 21 JWoihna tt hise scoocnivael rmsaetdioian? 115501 Different forms of social media 156 Social media dashboards – all your updates in one place 169 Why you need a digital marketing strategy 21 The rules of engagement 170 Adding social media to your own site 172 Your business and digital marketing 22 Understanding e-mail marketing 178 The new direct mail 178 What exactly is e-mail marketing? 180 Defining your digital marketing strategy 25 Before you start 182 Planning your campaign 187 Understanding the digital consumer 27 Measuring your success 198 E-mail – a vital component of digital marketing 203 Mind your Ps 33 Understanding mobile marketing 206 Mobile – market size and rate of growth 206 Mobile – Web 2.0 209 Eyes on the prize 37 Mobile marketing – a game-changing channel, or just another conduit? 209 Location, location, location 218 Bringing it all together 39 Mobile gaming 219 Mobile applications 222 Case study: MercadoLibre 40 Measuring mobile 224 Mobile privacy 226 Mobile data 228 Further exploration 231 Building a multichannel marketing strategy 232 03 then build your channel 43 URnecdoegrnstiaznindgi nogp ppeorrftournmitaiensc efo mr astrrkaetteignigc partnership2 36 236 What is performance marketing? 239 Understanding online public relations 264 Your website – the hub of your digital marketing world 43 Google – judge and jury 265 Online – it’s where PR lives now 266 Building an effective website 45 Understanding content marketing 298 Why content? – an overview 298 Content strategy 308 The main steps of building your website 46 Content production 314 Promoting your content 318 Before you start 46 The future of online content 321 Convincing your boss to invest in digital marketing 327 Case study: Alpharooms 49 Understanding your objectives 328 Your market and website function 334 Understanding decision making and knowing your decision makers 336 Choosing your domain name 51 Budget considerations 339 Key channel benefits 341 Hosting – your website’s home on the internet 53 The perfect website 350 Further considerations 352 How to choose a web designer/developer 57 Structuring your proposal 358 Advocacy 365 What’s next? 367 Arranging your information 58 Prediction 1 – a new internet 367 Prediction 2 – democratization of marketing knowledge 369 Writing effective web content 60 Prediction 3 – natural selection of content 370 Prediction 4 – greater learning and being more competitive 370 Case study: Hg2 66 Prediction 5 – lessons from the emerging markets 371 Prediction 6 – the case for a circular marketing economy... 372 Prediction 7 – agencies go arbitrage 374 Prediction 8 – fast and super fast 375 Prediction 9 – radio 376 Prediction 10 – your online persona 376 The end bit 377 vi Contents 04 Is it working? 69 Owned, paid and earned 70 Log files versus page tagging 72 Augmenting information using cookies 73 Test and test again 74 Measuring paid media 76 Attribution modelling 77 Who am I talking to? 79 Making Measurements Make Sense (3MS) 81 The return of GRP 82 The problem of earned media 83 What are you trying to achieve? 84 Why KPIs are important 84 Choosing effective KPIs 85 The need for trust 89 05 Are customers finding you? 103 Search: still the online marketer’s holy grail 103 About the engines 106 Optimizing your site for the engines 108 Advertising on the search engines 128 Mobile search 136 Black hat, the darker side of search 137 Bringing in the pros 141 Universal search – more opportunities to rank 142 Shifting goalposts – search innovation and the quest for relevance 143 Looking forward 147 Case study: The Entertainer 147 06 Understanding social media 150 Join the conversation 150 What is social media? 151 Different forms of social media 156 Social media dashboards – all your updates in one place 169 The rules of engagement 170 Adding social media to your own site 172 Case study: Bennetts Bike Social 174 Contents vii 07 Understanding e-mail marketing 178 The new direct mail 178 What exactly is e-mail marketing? 180 Before you start 182 Planning your campaign 187 Measuring your success 198 E-mail – a vital component of digital marketing 203 Case study: Help for Heroes 203 08 Understanding mobile marketing 206 Mobile – market size and rate of growth 206 Mobile – Web 2.0 209 Mobile marketing – a game-changing channel, or just another conduit? 209 Case study: Accor Hotels 216 Location, location, location 218 Mobile gaming 219 Case study: Kiip 221 Mobile applications 222 Measuring mobile 224 Mobile privacy 226 Mobile data 228 Further exploration 231 Building a multichannel marketing strategy 232 Case study: Dubizzle.com 233 09 Understanding performance marketing 236 Recognizing opportunities for strategic partnership 236 What is performance marketing? 239 Case study: Number One Shoes 261 10 Understanding online public relations 264 Google – judge and jury 265 Online – it’s where PR lives now 266 Case study: Royal Mail gold post boxes 270 Case study: Bristol-Myers Squibb 279 Case study: NatWest 282 viii Contents 11 Understanding content marketing 298 Why content? – an overview 298 Case study: East Coast 301 Case study: Littlewoods 305 Content strategy 308 Content production 314 Promoting your content 318 The future of online content 321 Case study: Makino 322 12 Convincing your boss to invest in digital marketing 327 Understanding your objectives 328 Your market and website function 334 Understanding decision making and knowing your decision makers 336 Budget considerations 339 Key channel benefits 341 The perfect website 350 Further considerations 352 Structuring your proposal 358 Advocacy 365 13 What’s next? 367 Prediction 1 – a new internet 367 Prediction 2 – democratization of marketing knowledge 369 Prediction 3 – natural selection of content 370 Prediction 4 – greater learning and being more competitive 370 Prediction 5 – lessons from the emerging markets 371 Prediction 6 – the case for a circular marketing economy... 372 Prediction 7 – agencies go arbitrage 374 Prediction 8 – fast and super fast 375 Prediction 9 – radio 376 Prediction 10 – your online persona 376 The end bit 377 Case study: UEFA Europa League 378 Glossary 387 Index 399 ix PRefACe If you are reading this... You already know the world of digital media is changing at a phenomenal pace. Its constantly evolving technologies, and the way people are using them, is transforming not just how you access your information, but how you interact and communicate with your friends and colleagues on a global scale. It has also changed the way you choose and buy products and services. People are embracing digital technology to communicate in ways that would have been inconceivable just a few short years ago. No longer the preserve of tech-savvy early adopters, today ordinary people are integrating digital technologies seamlessly into their everyday lives. From SMS updates on their favourite sports teams, to a free video call with relatives on the other side of the globe, to collaborative online gaming and much, much more: ordinary people – your customers – are starting to use digital media without giving it a second thought. The global online population was around 2.1 billion at the end of March 2011 (Internet World Stats). By mid 2012 the figure had already climbed to almost 2.5 billion people online or just over one-third of the 7 billion people on the planet being connected to the net. There is no doubt this figure is set to double in the years ahead – this means 5 billion of the 7 billion people in the world will be online in one manner or another: the question is no longer ‘if’ – it’s about ‘when’. The answer to ‘when’ is hotly debated by a lot of researchers, but if I take an average view it looks like 2018. However, it’s how we consume data, and the sheer volume of this data created by the soaring online population and the move towards more port- able access, that change the game out of all recognition. More video, more rich media, faster and faster access by more people in more parts of the world change the fabric of business and mean that digital marketing – and mastering the art thereof – is now a prequisite of any enterprise or indi- vidual planning to compete in the years ahead. Zettabytes? Because of this massive volume of data we need to invent new words and definitions to describe and rationalize the type of world ahead. A zettabyte is a number with 21 zeroes – equivalent to a trillion gigabytes and the similar level of data to 1 billion DVDs downloaded every day for a year!