17-07-2023

Outbound vs. Inbound

Marketing

Dr. Satish S. M.

Digital Marketing Framework

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Overview
• What is Outbound Marketing?

• What is Inbound Marketing?

• HubSpot Case

• Learnings

Introduction
• The way people search and buy products or services has changed

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Introduction

Outbound Marketing
• What is Outbound Marketing?
• Refers to the ways that firms reach out to target customers
• The modus operandi of traditional marketing

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Digital Outbound Marketing

• Consists mainly of:
• Search ads

• Display ads

• Video ads

Search Ads
• Why search ads are important?

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Search Ads
• Why search ads are important?
• Search engines are gateway to the Internet

• Consumers generally do not start the session with specific URLs

• Hence ads that appear on search result pages are important

Search Ads
• Google search provides (Google controls over 63% of the browser
market)
• Organic links

• Paid links (search ads)

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Examples of Search Ads in a Search Engine

Examples of Search Ads in a Search Engine

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Search Ads
• Will look at this concept in detail in later sessions
• SEO

• Search Ads and SEM

Display Ads
• A type of online advertisement that combines text, images, video, and
a URL that links to a website where a customer can learn more about
or buy products

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Display Ads
• Display ads can have two objectives:
• Designed like search ads for immediate action

• Like TV or Print ads to increase brand awareness

Display Ads
• Display ads come in various formats:
• Banner ads

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Types of Display Ads

• Contextually targeted ads
• Placed on websites based on
• Your language and location preference

• Host website overarching theme

• Browsing histories of the website’s recent visitors

• Remarketing/Retargeting ads

Types of Display Ads

• Personalised ads
• Based on user behaviour and preferences
• Affinity targeting

• Similar audience ads

• Site-placed ads

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Display Ad Industry Landscape

• Search ads – a few dominant search engine companies

• Display ads – highly fragmented

Display Ad Industry Landscape

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Display Ad Industry Landscape

• The process
• From the Marketer (on the left) to the people consuming the ad (on the right)

• Starts with Ad agencies who wish to buy digital spaces for ads

• Ends with an ad that is displayed by the content publisher

• Ultimately to consumers

Display Ad Industry Landscape

• Programmatic advertising
• With Digital Transformation, advertising isn’t just about growing brand
awareness or planting a seed

• Advertisers with their AdTech partners can reach audiences big and small at
any stage of the funnel

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Display Ad Industry Landscape

• Programmatic advertising
• Few of the programmatic offerings
• Google Display Network (GDN)

• DoubleClick Bid Manager (DBM)

• DoubleClick AdExchange

Display Ad Industry Landscape

• Constituents
• Advertisers or Ad Agencies – manage the campaign creative and purchasing process
• Content Publishers – sell space to advertisers on their website
• Ad Networks and Ad Exchanges – intermediaries that connect advertisers (buyers)
with publishers (sellers)
• Ad Networks – AdSense by Google, aggregate the supply of advertising space from variety of
publishers
• Ad Exchange – such as Rubicon, automate the matching between advertisers and publishers,
often called programmatic buying

• DSPs and SSPs act as brokers connecting various players in this landscape

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Real-time Bidding Process

Assessing Effectiveness of Display Ads

• Cost Per Thousand Impressions (CPM)

• Click-Through Rate (CTR)

• Test-control methodology

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Brand Impact of Display Ads

Metrics used to Assess a Bank’s Display Ads

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Assessment of Display Ads

• CPM Display Ad Profit = impressions * [(CTR*conversion rate*margin)
– CPM/1000]

• CPC Display Ad Profit = impressions * CTR * [(conversion rate *

margin) – cost per click]

Improving Effectiveness of Display Ads

• Contextual ads

• Native ads

• Interactive ads

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Video Ads
• Display ads are static image ads on websites or apps, whereas video
ads are more dynamic

TV and Digital Video Ad Spending - Worldwide

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TV and Digital Video Ad Spending - Worldwide

Video Ads Formats

• Skippable in-stream ads

• Non-skippable in-stream ads

• Bumper ads – non-skippable video ads of less than 6 seconds

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Measuring Video Ad Effectiveness

Measuring the Effectiveness of Outbound Marketing

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Measuring the Effectiveness of Outbound Marketing

• Correlation vs causation

• Attribution

• Dynamics (delayed impact of advertisement)

• Online-offline interaction

• CLV

Inbound Marketing
• In order to attract customers, marketers have to provide them with
something they will love

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Inbound Marketing
• This is where ‘Inbound Marketing’ comes

Inbound Marketing
• Inbound marketing is a holistic, data-driven approach to marketing
that attracts individuals to your brand and converts them into lasting
customers

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Marketing Needs to Adapt
Outbound Marketing
• Low response rate (1-5%)
• Expensive / Wasteful
• Becoming more difficult
• “Interruption” based
Inbound Marketing
• When you use inbound marketing
Customers come to you
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Inbound Marketing
• High response rate (20-50%)
• Low cost / High ROI
• Wide open playing field
• “Permission” based
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Inbound Marketing

Inbound Marketing
• Inbound marketing and content marketing are interrelated.
• Inbound relies on content

• Content needs the tools of inbound to get noticed and deliver ROI

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Elements of Inbound Marketing Strategy

• Buyer Persona

• The buyers journey

• SEO

• Content / Blogging strategy

• Community

Inbound Marketing Strategy

• Attracting Strategy

• Engaging Strategy

• Delighting Strategy

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Inbound Strategies in Marketing

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