CP3401/5636

E-Commerce Marketing and Advertising 1

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Readings / Preparations

Pre-lecture Preparation:
Video: What is AdWords ?
https://youtu.be/05we2g3Edgs

Extended Readings:
• Laudon Ch 6

• Reference:
• Google AdWords Certification Exam Study Guides
• https://
support.google.com/partners/topic/3204437?hl=en
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Learning outcomes
By the end of this topic, you should be able to

• Identify and describe the basics of digital commerce marketing

and related advertising strategies and tools
• Using Google AdWords for search engine marketing and online
advertising

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Multi-Channel Marketing

1. Web site
2. Traditional online marketing
• Search engine, display, e-mail, affiliate, e.g. Google
AdWords
• New type of online marketing, e.g. Video ads in Youtube
3. Social marketing
• Social networks, blogs, video, game
4. Mobile marketing
• Mobile/tablet sites, apps
5. Offline marketing
• Television, radio, newspapers
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Establishing the Customer
Relationship
• Creating a website to promote your own
product/service/brand

• Web site functions to:

• Establish brand identity and customer expectations
• Differentiating product
• Anchor the brand online
• Central point for all marketing messages
• Inform and educate customer
• Shape customer experience

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Online Advertising

• Online advertising
• Display, search, mobile messaging, sponsorships,
classifieds, lead generation, e-mail
• Fastest growing form of advertising
• Advantages:
• 18–34 audience is online
• Ad targeting
• Price discrimination
• Personalization

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Traditional Online Marketing and
Advertising Tools
• Search engine marketing and advertising,
• Display ads
• E-mail marketing
• Affiliate marketing
• Viral marketing (e.g. make use of social
network, blog, referrals)
• Lead generation marketing

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Search Engine Marketing and
Advertising
• Search engine marketing (SEM): Use of search engines
for branding

• Search engine advertising

• Use of search engines to support direct sales

• Types of search engine advertising

• Sponsored links (keyword paid inclusion)
• Keyword advertising
• Network keyword advertising (context advertising)

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Search Engine Marketing (cont.)

• Search engine optimization (SEO)

• Social search
• Utilizes social contacts and social graph to provide fewer and more
relevant results

• Google search engine algorithms

• Panda, Penguin, Hummingbird, Knowledge Graph
• The Evolution of Search https://youtu.be/mTBShTwCnD4

• Search engine issues

• Paid inclusion and placement practices
• Link farms, content farms
• Click fraud
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Search Engine Marketing (cont.)

• Google search engine algorithms

• Panda: Google algorithm to eliminate low-quality
sites (thin content, duplicate content, content
copied from elsewhere)from search results.
• Penguin: Google algorithm to eliminate sites with
low-quality back links
• Hummingbird: semantic search component of
Google’s search algorithm
• Knowledge Graph: function in Google’s search
engine that displays a selection of facts related to
your search term that you may be interested in
knowing more about
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Display Ad Marketing

• Banner ads
• Rich media ads
• Interstitial ads
• Video ads
• Far more effective than other display formats
• Sponsorships
• Native advertising

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Discussion 1:

• Your friend owns a café in your city and ask you how
he/she can use Google to promote the website of the
café.

• Can you suggest 3 different ways to promote the café

website with Google ?

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How an Advertising Network
Such as DoubleClick Works

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Display Ad Marketing (cont.)

• Advertising networks
• Programmatic advertising
• Real-time bidding process (RTB)
• Ad exchanges
• Display advertising issues
• Ad fraud, robot traffic
• Viewability

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E-mail Marketing

• Direct e-mail marketing

• Messages sent directly to interested users
• Benefits include
• Inexpensive
• Average over 6% click-throughs for in-house lists
• Measuring and tracking responses
• Personalization of messages and offers
• Three main challenges
• Spam
• Anti-spam software
• Poorly targeted purchased e-mail lists

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Social & Email Marketing Metrics

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Spam

• Unsolicited commercial e-mail

• Around 60% of all e-mail in 2014
• Most originates from bot networks
• Efforts to control spam have largely failed:
• Government regulation (CAN-SPAM)
• State laws
• Voluntary self-regulation by industries (DMA )
• Canada’s stringent anti-spam laws

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Other Types of Traditional Online
Marketing
• Affiliate marketing
• Commission fee paid to other Web sites for sending
customers to their Web site
• Viral marketing
• Marketing designed to inspire customers to pass message to
others
• Lead generation marketing
• Services and tools for collecting, managing, and converting
lead

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Online Marketing Metrics:
Lexicon

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Online Marketing Metrics:
Lexicon

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An Online Consumer Purchasing
Model

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Google AdWords

• AdWords is Google’s internet advertising platform to

help driving interested people to websites

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Google's advertising networks

• Google Search Network

• includes Google Search, other Google sites such as
Maps and Shopping, and hundreds of non-Google
search partner websites that show AdWords ads
matched to search results.
• Showing your ads alongside search results

• Reach customer actively searching for your services

products

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Google's advertising networks

• Google Display Network

• The Display Network includes a collection of Google
websites (like Google Finance, Gmail, Blogger, and
YouTube), partner sites, and mobile sites and apps
that show AdWords ads matched to the content on a
given page.
• Showing your ads on websites across the Internet

• Reaching a wide range of customers of broad

interests
• Building brand awareness, engagement and loyalty
• Specific placement targeting
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Organizing campaigns and ads in your Google AdWords account

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Google AdWords Campaign
Types
• The most commonly used campaign types:
• Search Network only
• Display Network only
• Search Network with Display Select

• There are 4 campaign sub-types:

• Standard
• All features
• Remarketing
• Ads in mobile apps

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Search ad formats

• Text ads:
• The simplest and most common kind of search ad, text ads are made up
of a headline, a display URL that shows the address of your website, and
a description.
• Ads with extensions:
• Ad extensions are visual enhancements to search ads that more
prominently display information about your business, such as a phone
number, location, or links to other pieces of relevant content from
deeper within your sitemap.
• You can add these enhancements, which often appear in ads above
search results, manually or they can be added by our automated
formatting systems.

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Targeting with Google Display
Network
• Ad placements: which are sites across the Internet
where your ads can appear.
• Google automatically determines where your ads appear by
matching your keywords to these placements, or you can
pick specific placements yourself for greater control over
where your ads appear.

• You can use different Display Network targeting options to

show your ads to specific groups of people based on their
interests, age or gender, or whether they've previously
visited your website

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Display ad formats

• Text ads
• Image ads
• Video ads
• Product Listing Ads

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Ad Rank

• Ad Rank determines your ad position -- where your ad

shows on the page in relation to other ads -- and whether
your ads are eligible to show at all.
• Google AdWords uses a lightning-fast ad auction, which
takes place every time someone searches on Google or
visits a site that shows AdWords ads.

• 3 main factors determine Ad Rank

• Your bid
• The quality of your ads (Quality Score)
• The expected impact from your ad extensions and other ad
formats
https://support.google.com/adwords/answer/1752122

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Quality Score

• Reported on a 1-10 scale

• An estimate of the quality of your ads, keywords, and
landing pages.
• Higher quality ads can lead to lower prices and better
ad positions.
• 3 components of Quality Score:
• expected clickthrough rate (CTR)
• ad relevance
• landing page experience
• each with a descriptive estimate such as "average" or
"above average" -- also don't consider auction-time factors.

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How the components of Quality Score affect Ad Rank

• Every time someone does a search that triggers an ad

that competes in an auction, Google calculates an Ad
Rank.
• By improving the following factors you can help
improve the quality components of your Ad Rank:

• Your ad's expected CTR

• Your display URL's past CTR
• The quality of your landing page
• Your ad/search relevance
• Geographic performance
• Your targeted devices
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How ad quality affects your Google AdWords account

• The quality components of Ad Rank are used in several

different ways and can affect the following things in your
account:

• Ad auction eligibility
• Your actual cost-per-click (CPC)
• Ad position
• Your keyword's ad position bid estimates:
• First page bid estimate
• Top of page bid estimate
• First position bid estimate
• Eligibility for ad extensions and other ad formats:

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Ad Landing Page

• Landing page: the webpage where people end up after

they click your ad.

• Landing page experience refers to how good we think

someone's experience will be when they get to your
landing page providing relevant, useful, and original
content.
• Your landing page experience affects not only your
Quality Score but also your Ad Rank and advertising
costs.

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Improving your landing page experience

• Relevant, useful and original content

• Transparency and trustworthiness
• Ease of navigation
• Improve Your landing page loading time
• can use PageSpeed Insights to measure the performance of
your landing page.

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Ad Rotation

• Ad Rotation determines which ad in your ad group

should show (when you have multiple ads)
Ad rotation
What it does
setting
Optimize for clicks Gives preference to ads that are expected to attract more
(default setting) clicks than other ads in the ad group, based on your past
clickthrough rates (CTRs)
.
Optimize for Gives preference to ads that are expected to provide more
conversions conversions, like purchases and sign-ups, than other ads in
the ad group.

Rotate evenly Gives equal preference to all active ads in your ad group,
regardless of how each ad performs.
Rotate Similar to the "Rotate evenly" setting, this option delivers your
indefinitely ads more evenly into the ad auction, but does so for an
indefinite amount of time and does not optimize.

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Targeting your audience in AdWords
(in Google Search and Search partners sites)

• Keyword targeting: Choose words or phrases relevant

to your product or service
• Location and language targeting: Choose the language
and geographic locations
• Device targeting: Show your ads to the right people
across all devices, based on their specific location, time
of day and device type.
• Audience targeting: Show your ads to people who
have previously visited your website

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Targeting your audience in AdWords
(in Google Search and Search partners sites)

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Keyword match types
control which searches trigger your ad

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Negative Keywords

• Negative keywords prevent your ads from showing to

people searching for those terms or visiting websites
that contain those terms.
• e.g. the word “Java” can be related computer
programming language or related to coffee.

Example
Let's say you're an optometrist who sells glasses.
What negative keywords you will use ?

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Targeting your audience in AdWords
(on websites that partner with Google)

• Contextual targeting: This type of targeting is used to

match your ads to websites or pages (also known as
automatic placements) based on the keywords or
topics that you've chosen
• Keyword targeting: Choose words or phrases related
to your product or service so that Google can
automatically target your ads to relevant websites
• Topic targeting: Target your ad to multiple pages about
specific topics simultaneously
• Location and language targeting: Choose the language
and geographic locations

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Targeting your audience in AdWords
(on websites that partner with Google)

• Placement targeting: Choose websites on the Display

Network that your customers visit where you'd like to
see your ads.
• Audience targeting: Show your ads to specific groups
of people based on (interest categories,
demographics, and remarketing) when they visit
Display Network websites and apps.
• Device targeting: Choose to show ads to your
customer when they visit Display Network websites
only on desktop and laptop computers, or only on
iPhones and Android devices, or on all of these.

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Targeting your audience in AdWords
(on websites that partner with Google)

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Remarketing

• Remarketing lets you show ads to people who have

visited your website or used your mobile app before.

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Different Types of Remarketing

• Standard remarketing: Show ads to your past visitors as they

browse Display Network websites and use Display Network apps.
• Dynamic remarketing: Show dynamic ads to past visitors with
products and services they viewed on your website as they browse
Display Network websites and use Display Network apps.
• Remarketing for mobile apps: Show ads to people who have used
your mobile app or mobile website as they use other mobile apps
or browse other mobile websites.
• Remarketing lists for search ads: Show ads to your past visitors as
they do follow-up searches for what they need on Google, after
leaving your website.
• Video remarketing: Show ads to people who have interacted with
your videos or YouTube channel as they use YouTube and browse
Display Network videos, websites and apps.
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Remarketing Strategies

• Reach all your website visitors

• Showcase different product categories
• Appeal to visitors who didn't convert
• Re-engage visitors with abandoned shopping baskets
• Up-sell or cross-sell to existing customers
• Reach customers within a certain time period after
they completed a purchase

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Remarketing Strategies

• Example:
• Nina runs an online electronics store. She finds that
her customers put expensive items into their shopping
baskets but don't always complete their purchases.
Nina decides to set up a remarketing campaign to
attract these customers back to her shop and hopefully
complete the sale.

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Cost of Google AdWords

• Cost:
• Typically, you will pay when someone clicks your ad
• Cost-per-click (CPC)
• Cost-per-thousand impressions (CPM)
• Cost-per-acquisition (CPA)

• Tracking of advertising campaigns

• which ads get clicks and which ones don’t
• If they clicked your ad and then did something valuable to
your business -- purchased your product, downloaded your
app, or phoned in an order -- you can track that, too.

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Cost of Google AdWords

• Your daily budget is the amount you're willing to spend

each day, on average, for each ad campaign in your
account. The amount is entirely up to you, and you can
edit it whenever you like.

• your daily budget puts a limit on how much you can

accrue in costs over the average number of days in a
month (30.4)

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Cost of Google AdWords

• AdWords gives you several ways to bid for your ads,

depending on what matters most to you and your
business.

• Focus on clicks (for Search and Display ads)

• Focus on impressions
• Focus on conversions (for Search, Display, and
Shopping ads)
• Focus on views (for video ads only)

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Cost of Google AdWords

• Focus on clicks (for Search and Display ads)

• Use cost-per-click (CPC) bidding and you'll pay

only when someone actually clicks on your ad
and comes to your site.
• Automatic bidding : google adjust the amount the bid to
bring the most clicks possible within your budget
• Manual bidding: you set bids at ad groups, keywords, and
placement levels

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Types of automated bid strategies

• Maximize Clicks
• Target Search Page Location
• Target Outranking Share
• Target CPA
• Enhanced cost-per-click (ECPC)
• Target ROAS

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Types of automated bid strategies

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Choosing the Bidding Mode of
Google AdWords
• Focus on impressions
• Instead of paying by the click, you can pay by the number of times
your ad is viewable shown, if your campaign is targeting just the
Display Network.

• Viewable CPM bidding, like CPC manual bidding, lets

you set bids at the ad group level, or for individual
placements.

• With viewable CPM (vCPM) bids, you only pay when your ad is
able to be seen by potential customers.
• This means you're bidding on the actual value of your ad
appearing in a viewable position on a given placement.
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Choosing the Bidding Mode of
Google AdWords
• Focus on conversions (for Search, Display, and
Shopping ads)
• Use cost-per-acquisition (CPA)
• You pay for each click, but AdWords will automatically set
your bids for you to try to get you as many conversions as
possible at the cost-per-acquisition you specified.

• Focus on views (for video ads only)

• use cost-per-view (CPV) bidding
• you'll pay for video views and other video interactions, such
as clicks on the calls-to-action overlay (CTAs), cards, and
companion banners.

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Cost of Google AdWords

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Summary:
We have discussed,

• Various features of Google AdWords

• the basic digital commerce marketing and advertising strategies
and tools

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Quiz Question 1

Google introduced which of the following changes to its search

algorithm in 2011 to weed out low quality sites from search
results?
A) Penguin
B) Hummingbird
C) Panda
D) Knowledge Graph

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Quiz Question 2

Which of the following would you implement to collect and

analyze your company's Big Data?
A) data warehouse
B) Hadoop
C) SQL
D) profiling

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Quiz Question 3

Which of the following is not one of the main stages of the online
purchasing process?
A) post-purchase service and loyalty
B) awareness
C) evaluation
D) conversation

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Quiz Question 4

Which one of the following Google Ads bid strategy is the best to
increase the visibility of a website in the first page of the Google
search results ?

A. Maximize Clicks
B. Target Search Page Location
C. Target Outranking Share
D. Enhanced cost-per-click (ECPC)

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Quiz Question 5

Describe different any 3 types of remarketing in Google Ads.

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Quiz Question 6

Define the following online marketing metrics: view-through rate,

impression, attrition rate, acquisition rate, and cart conversion
rate.

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