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Online Marketing IntroductionUniversity of Texas – Executive MBA Jim McKinley 512-334-1333 jim@360partners.com
About Jim McKinley Grew up in St. Louis, Missouri Graduated with a BA in Business from Baylor University Major: Marketing Graduated in 1990 MBA from the University of Chicago Serial entrepreneur will skills in marketing Currently co-founder and principal of 360Partners Personal Married and have an 1-year old son Enjoy running, playing basketball and traveling 2
3 The First 10 Years of My Career had Very Little to do with Marketing 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Strategy consultant - Made recommendations on strategy to Fortune 500 companies Fulltime MBA Student Software Developer - Programmed and designed custom computer software Role: 3
4 Example of the Type of Work I was Involved in during 1995-1996
5 Teams Strategy Work Led to the Launch of Travelocity
6 Second 10 Years of My Career have been Focused on Entrepreneurship and Online Marketing 2010 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Role: ,[object Object]
 VP of Marketing, Responsible for all customer acquisition
 Co-founder
 Currently the head of the online ad agency6
7 SmartPrice.com Circa 2000
Online, direct response ad agency Different from a traditional ad agency “We do marketing with Excel not Photoshop” Specializing in online marketing Organic search, pay-per-click search marketing, and display advertising Founders have over 10 years experience in online marketing Over 35 clients across the United States Across a variety of industries Founded in 2005 26 employees  Located in Austin, TX About 360Partners 8
9 360Partners has Clients that Span Across Many Industries Other clients range from start-ups to Fortune 500 companies Deep Experience with Brands and eCommerce ,[object Object]
Credit card recommendation website
Manages online program for traditional not-for-profit universities
Partners include Northwestern, Boston University, University of Florida, etc.
Largest eyeglasses retailer on the internet,[object Object]
Agenda Online Marketing Introduction Case Studies Search Engine Marketing Keys to Success (and Top 10 Mistakes) Performance Measurement After lunch today. Come see Brian Massey talk about improving the conversion of your website in his presentation “Killing Brad Pitt: Define and Understand Your Visitors” (1pm) 11
Types of Online Marketing – Pay-Per-Click Search 12
Types of Online Marketing – Pay-Per-Click Search 13 ,[object Object]
Ads run by Google, Yahoo and Bing based on specific search queries
Advertisers  payonly when a user clicks on an ad (cost-per-click)
Position on the page is determined by an auction
Pros:
Searchers tend to be far in the buying funnel (i.e. researching purchase options)
Highlymeasurable and trackable
Advertisers do not pay for impressions but for clicks
Able to start and stop campaigns quickly
Cons:
Can be expensive
Some clicks can be as high as $200 per click
Google has done a great job at creating an efficient market
Can have limited scale in certain markets
Mistakes can be expensive
When to Use:
Most clients can utilize paid search
B2b, B2c, large companies, small companies, simple sales cycles, complex sales cycles, etc.
In competitive markets, need to have differentiators ,[object Object]
Types of Online Marketing – Organic Search 15 ,[object Object]
“Unpaid” listings in Google, Yahoo and Bing
Listings and order determined by the relevance and expertise of the content on the page as perceived by the search engines
Pros:
Searchers skew towards being further in the buying funnel (i.e. researching purchase options)
“Free” – Don’t have to pay every time a user clicks on a listing
Cons:
Very competitive
Lots of companies investing significant resources in organic search
Expensive
In competitive markets, companies have to spend an inordinate amount of time on site optimization, content creation and link building
Google is actively seeking to direct more clicks to their paid advertisements
Long lead time – Changes made today could take months to see results
When to Use:
Clients that have had a web presence for a long time
Clients who have a good story or brand presence,[object Object]
Types of Online Marketing – Display 17
Types of Online Marketing – Display 18 ,[object Object]
Graphical ads scattered throughout a page- different sizes and shapes
The original form of advertisement on the internet
Advertisers pay on a cost-per-impression or a cost-per-click basis
Pros:
Almost unlimited inventory – can scale
Can trigger emotional responses via graphics and pictures
Cons:
Tends to attract users higher up in the buying funnel
Customer acquisition costs usually higher than other online mediums
Can be untargeted
When to Use:
Clients that want to scale to a large size
Clients that have tapped out other forms of marketing,[object Object]
Types of Online Marketing – Retargeting 20
Types of Online Marketing – Retargeting 21
Types of Online Marketing – Facebook Fan Pages 22
Types of Online Marketing – Facebook Fan Pages 23 ,[object Object]
Profile set-up on Facebook which allows companies or brands to connect one-on-one with their customers
Can “push” out notifications of sales, specials, new products, etc.
Pros:
Allows companies to connect directly with their best customers
No advertising costs outside of time to manage
Cons:
Can be extremely time consuming
Return on investment of efforts spotty and can be overhyped
When to Use:
Brands (either national of local) that have a connection with their customers (i.e. a clothing line or a local restaurant not a industrial generator manufacturer),[object Object]
Types of Online Marketing – Facebook Display Advertisements 25 ,[object Object]
Graphical ads scattered throughout Facebook
Advertisers pay on a cost-per-click basis
Highly targeted by demographics, psychographic, geographic, interests and/or life stage
Pros:
Large amount of inventory

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2011 1-22 university of texas executive mba

  • 1. Online Marketing IntroductionUniversity of Texas – Executive MBA Jim McKinley 512-334-1333 jim@360partners.com
  • 2. About Jim McKinley Grew up in St. Louis, Missouri Graduated with a BA in Business from Baylor University Major: Marketing Graduated in 1990 MBA from the University of Chicago Serial entrepreneur will skills in marketing Currently co-founder and principal of 360Partners Personal Married and have an 1-year old son Enjoy running, playing basketball and traveling 2
  • 3. 3 The First 10 Years of My Career had Very Little to do with Marketing 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 Strategy consultant - Made recommendations on strategy to Fortune 500 companies Fulltime MBA Student Software Developer - Programmed and designed custom computer software Role: 3
  • 4. 4 Example of the Type of Work I was Involved in during 1995-1996
  • 5. 5 Teams Strategy Work Led to the Launch of Travelocity
  • 6.
  • 7. VP of Marketing, Responsible for all customer acquisition
  • 9. Currently the head of the online ad agency6
  • 11. Online, direct response ad agency Different from a traditional ad agency “We do marketing with Excel not Photoshop” Specializing in online marketing Organic search, pay-per-click search marketing, and display advertising Founders have over 10 years experience in online marketing Over 35 clients across the United States Across a variety of industries Founded in 2005 26 employees Located in Austin, TX About 360Partners 8
  • 12.
  • 14. Manages online program for traditional not-for-profit universities
  • 15. Partners include Northwestern, Boston University, University of Florida, etc.
  • 16.
  • 17. Agenda Online Marketing Introduction Case Studies Search Engine Marketing Keys to Success (and Top 10 Mistakes) Performance Measurement After lunch today. Come see Brian Massey talk about improving the conversion of your website in his presentation “Killing Brad Pitt: Define and Understand Your Visitors” (1pm) 11
  • 18. Types of Online Marketing – Pay-Per-Click Search 12
  • 19.
  • 20. Ads run by Google, Yahoo and Bing based on specific search queries
  • 21. Advertisers payonly when a user clicks on an ad (cost-per-click)
  • 22. Position on the page is determined by an auction
  • 23. Pros:
  • 24. Searchers tend to be far in the buying funnel (i.e. researching purchase options)
  • 26. Advertisers do not pay for impressions but for clicks
  • 27. Able to start and stop campaigns quickly
  • 28. Cons:
  • 30. Some clicks can be as high as $200 per click
  • 31. Google has done a great job at creating an efficient market
  • 32. Can have limited scale in certain markets
  • 33. Mistakes can be expensive
  • 35. Most clients can utilize paid search
  • 36. B2b, B2c, large companies, small companies, simple sales cycles, complex sales cycles, etc.
  • 37.
  • 38.
  • 39. “Unpaid” listings in Google, Yahoo and Bing
  • 40. Listings and order determined by the relevance and expertise of the content on the page as perceived by the search engines
  • 41. Pros:
  • 42. Searchers skew towards being further in the buying funnel (i.e. researching purchase options)
  • 43. “Free” – Don’t have to pay every time a user clicks on a listing
  • 44. Cons:
  • 46. Lots of companies investing significant resources in organic search
  • 48. In competitive markets, companies have to spend an inordinate amount of time on site optimization, content creation and link building
  • 49. Google is actively seeking to direct more clicks to their paid advertisements
  • 50. Long lead time – Changes made today could take months to see results
  • 52. Clients that have had a web presence for a long time
  • 53.
  • 54. Types of Online Marketing – Display 17
  • 55.
  • 56. Graphical ads scattered throughout a page- different sizes and shapes
  • 57. The original form of advertisement on the internet
  • 58. Advertisers pay on a cost-per-impression or a cost-per-click basis
  • 59. Pros:
  • 61. Can trigger emotional responses via graphics and pictures
  • 62. Cons:
  • 63. Tends to attract users higher up in the buying funnel
  • 64. Customer acquisition costs usually higher than other online mediums
  • 67. Clients that want to scale to a large size
  • 68.
  • 69. Types of Online Marketing – Retargeting 20
  • 70. Types of Online Marketing – Retargeting 21
  • 71. Types of Online Marketing – Facebook Fan Pages 22
  • 72.
  • 73. Profile set-up on Facebook which allows companies or brands to connect one-on-one with their customers
  • 74. Can “push” out notifications of sales, specials, new products, etc.
  • 75. Pros:
  • 76. Allows companies to connect directly with their best customers
  • 77. No advertising costs outside of time to manage
  • 78. Cons:
  • 79. Can be extremely time consuming
  • 80. Return on investment of efforts spotty and can be overhyped
  • 82.
  • 83.
  • 84. Graphical ads scattered throughout Facebook
  • 85. Advertisers pay on a cost-per-click basis
  • 86. Highly targeted by demographics, psychographic, geographic, interests and/or life stage
  • 87. Pros:
  • 88. Large amount of inventory
  • 90. Cons:
  • 91. Historically cheap but getting more expensive
  • 92. Attracts potential customers higher up in the buying funnel
  • 95. Consumer products where the target group has identifiable characteristics
  • 96.
  • 97. Agenda Online Marketing Introduction Case Studies Search Engine Marketing Keys to Success (and Top 10 Mistakes) Performance Measurement 27
  • 98. Case Study: EyeBuyDirect – Worlds Largest Online Glasses Retailer Based in Beijing, China Sells prescription glasses for as low as $7.95 No brand knowledge with U.S. Consumers Competing against other online and traditional glasses retailers such as Lens Crafters 28 Where would you advertise?
  • 99. 29 Case Study: We have run a lot of pay-per-click search engine marketing ads 29
  • 100. 30 Case Study: Users Click on the Ad and are Directed to the EyeBuyDirect.com Website 30
  • 101. 31 Case Study: We can See What Users did on the Website after they Clicked 31
  • 102. Case Study: On an Aggregate Level We can Measure Results Over Time 32
  • 103. Case Study: On an Aggregate Level We can Measure Results Over Time 33
  • 104. Case Study: University of Texas- Arlington Nursing Degree Program Nursing degree targeted at registered nurses (RN) to help them get their bachelors of nursing degree (BSN) RN’s have the equivalent of an associates degree Need two more years of school to complete a bachelors degree Financial incentives for RNs to complete the program Higher pay Many hospitals will help pay for tuition University of Texas – Arlington’s program is widely recognized Highly rated Extremely low cost compared to competitors Competitors include full-time programs as well as “for profit” online schools such as the University of Phoenix 34 Where would you advertise?
  • 105. 35 Example: University of Texas – Arlington Nursing Program 35
  • 106. Case Example: Facebook is a Great Outlet for Finding our Target Market 36
  • 107. Case Study 3: Nortel Networks Recently Went Through Bankruptcy Nortel Networks is a large manufacturer of telecommunications, computer network equipment and software At one point in time Nortel was the largest private employer in Canada Went into bankruptcy protection in 2009 Company was either going to reorganize as a smaller company or be sold Sales pipeline froze with uncertainty of bankruptcy Over $1B is sales prospects in the pipeline Customers stopped talking to sales rep, paused or cancelled orders Nortel’s Challenge: Assure prospective customers, vendors, employees, investors, etc. that the company will be around for the long-term 37 Where would you advertise?
  • 108. 38 For Many Search Terms, Competitors and Other Parties were Framing the Discussion about Nortel
  • 109. 39 Landing Page Example – Vendors were Framing Themselves as the Source of Information
  • 110. 40 Landing Page Example – Competitors were Using Fear, Uncertainty and Doubt as a Means to Promote their Own Products
  • 111. 41 Landing Page Example – Other Competitors were Suggesting Current and Potential Customers “Upgrade” to Their Brand
  • 112. 42 Landing Page Example – Creditor Liquidation Company Attempting to Purchase Nortel Receivables
  • 113. Case Study – In addition to Paid Search, the Team Focused on an Aggressive Display Campaign 43
  • 114. Agenda Online Marketing Introduction Case Studies Search Engine Marketing Keys to Success (and Top 10 Mistakes) Performance Measurement 44
  • 115. Two Key Principals for Successful Pay-per-Click Search Engine Marketing Answer the specific question searchers are asking Remove any barriers or “friction” that prevent searchers from taking the action you want them to take 45
  • 116. Answer the Question Searchers are Asking 46 … landing page answers the specific question using the searchers language. User enters a search query…. … ad answers the specific question using the searchers language… “Men’s Prescription Eyeglasses” “Men’s Prescription Eyeglasses for sale” “Men’s Prescription Eyeglasses” page of the website
  • 117. 47 Best Practice Example – EyeBuyDirect.com
  • 118. 48 Mistake #1: Not Properly Matching your Keywords to Your Product
  • 119. 49 Mistake #2: Not Using the Language of Your Searchers
  • 120. 50 Mistake #3: Letting Competitors Give Searchers Information about Your Company
  • 121.
  • 122. What information does the user need to make a decision?
  • 123. What is the minimum amount of information I can ask?
  • 124. Is my ad setting the proper expectations?
  • 125.
  • 126. 53 Mistake #4: Setting the Wrong Expectations in Your Ads
  • 127. 54 Mistake #5: Not Matching Your Landing Page with Your Ad’s Call to Action
  • 128. 55 Mistake #6: Putting Desired Action Below the Fold
  • 129. 56 Mistake #7: Asking for Unnecessary Information… and Not Providing Help
  • 130. 57 Mistake #7: Asking for Unnecessary Information… and Not Providing Help
  • 131. 58 Mistake #7: Asking for Unnecessary Information… and Not Providing Help
  • 132. Mistake #8: Running Ads on the iPhone/SmartPhone Platform Ad running on my SmartPhone for a $60,000 Industrial Generator
  • 133. Mistake #9: Allowing Google to Opt You into Options which May or May not be Applicable 60
  • 134. Mistake #10: Only Running Ads on Google Google is not the only online channel out there Google has reach (i.e. a lot of searches) but can be expensive Yahoo/Bing alliance offers a viable alternative to Google Google has ~65% market share Yahoo/Bing have ~30% market share Other mediums outside of search Facebook (depending on your product) Display advertising (specifically retargeting) Other social media techniques 61
  • 135. Summary Search engine marketing can be powerful Done correctly it can be a wildly successful advertising channel to help your business grow However, you can make costly mistakes Like fire – you can use it to cook your food or burn down your house Key to successful search engine marketing Answer the specific question searchers are asking Remove any barriers or “friction” that prevent searchers from taking the action you want them to take 62
  • 136. Exercise Live search examples 63
  • 137. Agenda Online Marketing Introduction Case Studies Search Engine Marketing Keys to Success (and Top 10 Mistakes) Performance Measurement 64
  • 138. Online Marketing has a Huge Advantage to Traditional Advertising as it is Highly Measurable “Half of the money I spend on advertising is wasted; the trouble is I don’t know which half.” - John Wanamaker, ~1910 Wanamaker’s statement is still true today for most forms of advertisements Online marketing has a huge advantage is that it is highly measurable Transparency into what a user does once they click on an ad Can get quick feedback on what is working and what is not working 65
  • 139.
  • 140.
  • 141. Example: Which Marketing Campaign Performed the Best? 68
  • 142. In this Example, A has the Lowest Cost per Click 69
  • 143. Example: Which Marketing Campaign Performed the Best? 70
  • 144. In This Example, B has the Lowest Cost per Action 71
  • 145. Example: Which Marketing Campaign Performed the Best? 72
  • 146. In this Example, C has the Highest Return on Ad Spend 73
  • 147. Numbers Examples: Which One is Best? Depends on What you Know and the Specific Situation 74
  • 148. Numbers Examples: Which One is Best? Depends on What you Know and the Situation 75
  • 149.
  • 150. 6-month delay between someone filling out a form and becoming a student
  • 151. Revenue can take years to receive
  • 152. Measure campaign performance based on cost per action (completed lead form)
  • 153.
  • 154.
  • 155. After lunch today. Come see Brian Massey talk about improving the conversion of your website in his presentation “Killing Brad Pitt: Define and Understand Your Visitors” (1pm) 80
  • 156. Appendix – Landing Pages 81
  • 157. Principles for Good Landing Page Design Skim-able and Scan-able Important elements above the fold Guide the eye to the point of action Limited exit points (i.e. hyperlinks) Attention-grabbing headline that answers the question “WIIFM” (What’s in it for me?) Clear call to action Clear value proposition (What value do you offer, what makes you better than your competitors?) Benefit-oriented language (Focus on benefits for the consumer, “We” versus “You”) High-quality, relevant images (users often engage best with faces) Prominent button with a clear call to action (avoid “submit”) Privacy and security assurances Match the language on the page to the search query 82
  • 158. Example of a Quality Landing Page 83 Repeats the search query Call to action “What’s In It For Me” Minimal number of fields Video, form and button all appear above the fold Prominent button Page is simple, uncluttered, & easy to digest
  • 159. Bad Example #1: The Overly-Long Form 84 Itty, bitty text at the top says nothing about the service. Why should I fill all of this out? Call to action is tiny Only 4 fields are required – why so many extra fields? How do I submit this thing? Oh, there’s the button!
  • 160. Bad Example #2: Word Glut 85 Very text heavy. Who wants to read all this? Summarize it in a few points. “Learn More” button blends in too much What are you supposed to do on this page? Should you click here, or here, or here? With a simpler design, a call to action, and a prominent “Learn More” button, the course of action would be clearer
  • 161. Bad Example #3: Too Many Options on the Page 86 Page is filled with links: upper navigation links, middle of the page links, right side navigation links. Where do you start? Download button gets lost, even though it is brightly colored and animated
  • 162. Bad Example #4: What’s the Benefit? 87 This had nothing to do with their business. What do they do exactly? This a very generic description of the service. What makes it distinct? What unique benefits does it offer? Besides phone number, there is nothing to do on this page. Users will probably exit. They need something to interact with.
  • 163. Bad Example #5: Homepage is the Landing Page 88 User must navigate through huge list on the homepage to find their category. Why not direct them to a specific page?