Digital and Direct-Response Advertising

Digital and Direct-Response Advertising

1. Pros of digital advertising

   • Relatively inexpensive, quick, targeted, measurable, and easily available medium
   • More engaging interactive audio/visual capabilities
   • Most flexible media, ability to change messages immediately

2. Cons of digital advertising

   • Still mostly untested
   • Consumers often hesitant
   • Digital clutter

3. Direct contact with consumers

   • Category marketing: broad demographic marketing
   • Niche marketing: more specific categories of consumers
   • Group or community marketing: groups with common interests

4. Customer Relationship Marketing: organizes a business according to the needs of the consumer

   • More effective cross-selling and upselling from current customers
   • Higher customer retention and loyalty
   • High customer profitability
   • High response to marketing campaigns
   • More effective investment of resources

5. Advertising and digital media

   • Keyword advertising
     • Marketers bid through auction systems on words or phrases related to offering
     • Only pay the search engine when customers click on sponsored links
   • Online display
     • Banners, buttons, microbars, skyscrapers, etc.
     • Measured by Click-through rate (# of clicks / # of times seen)
   • Email marketing
     • Most cost-effective and trackable
     • CTR is higher
     • Marketers can use demographic data to target consumers
     • Spam: online advertising messages that are unsolicited by recipient
     • Opt-in/opt-out: a form of permission in which online customers are sent messages only after they grant permission
   • Social media marketing
     • Blogs, social network sites, chat rooms, podcasts, etc.
     • Youtube makes it possible to share edgier content than on broadcast media
   • Mobile marketing
     • Apps and smartphone capabilities make mobile marketing possible