Summary of the Harvard reading for digital media exam, did my best to cover all the important things and included a list of key terms at the end. also includes the important exhibits.
For decades, it was impossible for new entrants to enter the market because established
companies had dominated the market What explains sudden rise in direct-to-consumer
companies?
New entrants faced two major obstacles:
Distribution
Established players controlled the shelf space at retailers and this made it difficult for
startups to get distribution for their products.
Advertising
The dominant form of advertising was television, which was too expensive for most startups.
Both of those are less restrictive in the digital era. With the rise of e-commerce, retail
shelf space is no longer the only channel for distribution. Which made it easier for small
players to reach their targeted customers in a very cost-effective way.
Another result is the changed consumer behavior and the marketing practice of established
firms. The way consumers search for information, interacted and buy products and services
have also changed by digital technology. New way of altering consumers and building
brands`;
Digital cookies track customers as they surf the web
Content-curation (e.g. BuzzFeed and Reddit) and content-sharing websites (e.g.
SlideShare, LinkedIn, Medium and YouTube) enables individuals to achieve a new
level of self-expression and offer businesses new marketing tools.
Social Media empowers consumers to create or share content that reaches a wide
audience within seconds.
Mobile phones open up more possibilities (especially in developing countries where
people did not previously had access to the broad internet)
Results in better understanding their customers’ decision journeys and subsequent word-of-
mouth discussions about products. Changing tracking form surveys, transaction records and
focus groups by seeing how consumers interact and browse your website/product.
Better targeting and linking of marketing touch points to sales and customer lifetime
value (CLV).
, Exhibit Ad spend in 2023
In 2023 the total ad spend by digital advertising is expected to count for 60% of all total ad
spend. Firms need to understand how to use digital marketing and the use of digital
channels to communicate with, engage, and influence consumers effectively alongside
traditional marketing.
Reading is about increasing companies’ efficiency in allocating media budgets in the digital
environment and provides an overview of the set of marketing technologies available in the
digital landscape.
A company has to use different moving parts:
Paid media
Owned media
Earned media
Word-of-mouth, can reduce the need for traditional advertising or amplify its
effectiveness.
Review websites, can reduce the need for traditional advertising or amplify its
effectiveness.
Consumers create and access more and more
content online managers need to understand
how to leverage digital marketing to influence
them.
Exhibit 1 illustrates the four key elements that will
explore this reading. Outbound marketing refers
to the way that firms reach out to target
consumers, digital outbound marketing consists
mainly of search, display, and video
advertisements. Inbound marketing refers to the
ways companies ensure they can be found when
consumers search for a service or product. It
requires firms to align their websites to consumers Exhibit 2 Framework For Digital Marketing
search processes as well as to search engine algorithms, and along with this an entirely new
process of search engine optimization (SEO).
Social media comprises digital platforms where consumers actively create content to
influence other consumers’ purchase decisions Firms start actively participate in these
platforms to reach and serve consumers in innovative ways.
Mobile technology has changed the way consumers search for and buy products and
services by keeping the consumer connected anytime, anywhere Unique challengers for
marketing managers.
, Native advertising= a form of online advertising in which brands create sponsored content
that blends into the main story or editorial content of an article. It creates compelling
content to engage consumers who are ignoring both online and offline ads. The use
increased and unlike banner ads (with click-through rates (CTR) of about 0.02%) native ads
CTR is as high as 1% to 3%. Native ads tent to use rich media (i.e. web pages with videos or
interactive advertisements) which are usually mobile-friendly and are designed to encourage
social sharing to make the content go viral.
Exhibit 3Editorial Articles Adapted for Native Advertising
Native advertising has garnered attention form advertisers, industry associations and
government regulators who are concerned about the blurring of editorial and sponsored
content. Savvy marketers will continue to explore native advertising as part of their digital
marketing strategy.
2. ESSENTIAL READING
2.1 OUTBOUND MARKETING
A firm initiates a conversation and sends a message to target consumers. Outbound
marketing takes the form of search, display, and video ads.
2.1.1 Search Ads
80% of all online sessions start with search of some kinds Search Engines have become
the gateway of the internet. Consumers search for relevant terms and explore the links
rather than directly typing in the URL search ads are powerful points of interaction.
There are two types of search ads in a search engine:
Paid Links (e.g. sponsored links or
search ads for which companies
pay), these appear on top of organic
links, or in a column alongside them.
Organic Links
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