How exactly does web marketing work
Online Marketing: Brief Explanation
Online marketing is a marketing discipline that, unlike traditional advertising, is based solely on the Internet as a medium. In online marketing, a distinction can be made between search engine marketing, banner advertising, email marketing, affiliate marketing and social media marketing.
Online marketing has long been a fixture in the company's marketing mix. According to the OVK online report 2013/02, advertising on the Internet now accounts for almost a quarter of the company's marketing expenditure. This makes online marketing the second most important factor in a company's marketing mix after television. According to the Online-Vermarkterkreis (OVK), the market development of online advertising in Europe is currently mainly driven by keyword marketing and display advertising. Campaigns on the Internet are becoming increasingly creative and the online marketing discipline increasingly complex.
Goals of online marketing
Like classic marketing, online marketing can pursue a multitude of goals. According to the B2B-Online-Monitor 2013, these include:
- Increase in product and brand awareness
- Acquisition of new customers
- Increase the number of hits on the website / traffic
- Customer loyalty
- Better ranking on search engines like Google
- Improvement of the image (branding)
In the long term, online marketing measures by companies are usually aimed at increasing sales - e. B. through more orders on your own website or more sales. However, measures that support branding, such as increasing mentions in social media such as Facebook, are also pursued by many companies through online marketing.
When planning campaigns on the Internet, it is usually not enough to transfer concepts from the offline world 1: 1 to the digital world. Instead, your own strategies are required in online marketing. A wide variety of instruments are used, depending on the company's definition of goals:
Search engine marketing
Search engine marketing is divided into the areas of search engine optimization (SEO) and search engine advertising (SEA). All search engine marketing measures aim to achieve better visibility in the search result lists of search engines such as Google. While search engine optimization (SEO) aims to achieve a better ranking in organic search hits, search engine advertising refers to paid advertisements in the search result lists.
According to the SEO Monitor 2013 survey by the SEO agency Barketing, search engine optimization has the highest priority in the online marketing mix of companies, even before search engine advertising. But achieving a good ranking in Google's search engine results is complex. The exact rating algorithm used by Google is not known. According to its own information, Google weights over 200 different factors that have an influence on the ranking of a website in search engines. In the opinion of many experts, this includes the number and quality of backlinks. Social signals via Facebook, Google+ and Twitter also seem to play an increasing role. According to Google, however, the quality of the content on a website is decisive for the ranking. It is important that the content of the website is unique. Google rates unique content as positive, while the search engine penalizes duplicate content.
With search engine advertising (SEA), on the other hand, advertisements for certain keywords are bought. This is also known as keyword advertising. Due to the high market power of Google, keyword advertising in Germany can usually be equated with advertising through Google Adwords. In order to achieve a good placement of their own advertisements on Google, companies should ask themselves which search terms potential customers could use to search for their own offers via Google.
Due to the increasing complexity of search engine marketing, many companies rely on the support of an agency specializing in SEO or SEA and Google Adwords.
Source: SEO Monitor 2013, Barketing
Banner advertising refers to online advertising with graphic advertising media. The internet advertising usually links to a company's website or its own landing page. In this context, the term display advertising or display advertising is often used, with banner advertising often being classified as the best-known type of display advertising. While the first banners were still static, there are now a variety of dynamic and animated formats. Depending on the size and format of the banner, a distinction is made between various standard formats. According to the German Association for the Digital Economy, these include full banners, super banners, rectangles and skyscrapers. Special forms of advertising include wallpaper and interstitial.
Campaigns with banners are initially measured using the click-through rate. It records how many users clicked on an ad. The potential customers are then supposed to conduct an interaction (e.g. order or registration) on the company's website. Companies are also using graphic advertising materials more and more frequently as part of branding campaigns. These campaigns aim to build or strengthen your own brand. In order to show the users relevant advertising material, banners are increasingly being delivered through target group-specific targeting. The advertising material is often delivered via so-called ad servers.
Since many users on the Internet feel disturbed by banners, advertising filters are often used. In addition, experts are now discussing what is known as banner blindness: Internet users no longer notice the advertising material on their screen. For this reason, many companies switch to alternative forms of advertising such as online video advertising for their online marketing campaigns. According to a study by the OVK, whether and how a campaign with graphic advertising is successful depends largely on the creation.
E-mail marketing refers to the sending of advertising messages by e-mail, e.g. B. through newsletters. Email marketing is still regarded as an efficient tool in a company's marketing mix. On the one hand, email marketing is increasingly facing technical and legal hurdles. On the other hand, the possibilities for email marketing are becoming more and more diverse. Trends are, for example, the integration of social media buttons and the integration of videos.
In marketing practice, different variants of e-mails are often tested in order to identify the more successful advertising medium. The content and length of the subject line are essential for the opening rate of an email. The correct address distribution list and the design of the advertising material are also important for the success of e-mail marketing. In addition, personalized emails are particularly successful. Many companies use professional email marketing software.
Affiliate marketing is a marketing principle in which an affiliate (partner) advertises the products of another company (merchant) on his website and receives a commission for this. The dealer can advertise his offers through many partners. There are different models that affiliate marketing partners can use to generate income, including:
- Pay per click (payment per click on the advertising material)
- Pay per lead (payment per contact of the potential customer)
- Pay per sale (payment per sale)
Affiliate networks have been established that provide a platform for affiliate marketing and mediate between partners and dealers. Among other things, they determine the right affiliates for the dealers, provide advertising material and take care of billing between dealers and affiliates. Affiliate networks known in Germany are for example Zanox and Affilinet.
Social media marketing
Social media marketing means advertising through social networks like Facebook and Twitter. This includes, for example, placing paid advertisements on Facebook (Facebook ads) and creating a company's own fan page on Facebook.
Marketing via social media is still a fairly new discipline in online marketing. But with the growing use of social media, the importance of social networks in the marketing mix of companies has also increased. According to the “2014 State of Marketing” study, 57 percent of marketers in companies plan to increase their budgets for social media.
According to a survey by the German Institute for Marketing in 2012, the most common goals that companies pursue with social media marketing were customer loyalty and new customer acquisition. Many measures in social media marketing are also aimed at branding. According to the German Institute for Marketing (DIM), most of the companies use the channels Facebook, Xing, Twitter and Youtube in the context of social media marketing.
The advantages of social media marketing are that advertising can be tailored precisely to the target group of companies and that company content can spread virally on the social web. The extent to which social media marketing actually contributes to corporate success is, however, controversial. Experts recommend a well thought-out strategy and consistent monitoring of all social media activities.
The importance of the Internet in the media mix is increasing. Digital advertising has now become a matter of course for most companies. A big advantage over traditional advertising is the direct measurability of online marketing measures. In order to be able to operate and measure online marketing successfully, many companies rely on tools such as Google Analytics or an experienced online marketing agency. In addition to the trend towards new and more creative formats and an even more specific target group approach, the optimization of advertising media for mobile devices is another important future topic in online marketing.
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