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Summary Exam prep - answers on exam questions (lectures 2019)

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This document contains the exam prep as discussed in lecture 11. In this lecture the questions were mentioned that will be at the exam. This document provides these questions the information from the lectures to answer these questions.

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Type Samenvatting

lectures
questions
digital marketing and metrics
exam
summary

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What to know?

1. Akpinar, E., & Berger, J. (2017). Valuable Virality, Journal of marketing research, forthcoming.
https://faculty.wharton.upenn.edu/wp-content/uploads/2017/02/Valuable-Virality-
4.03.docx

2. Babic-Rosario, A., Sotgiu, F., De Valck, K., & Bijmolt , T. (2016). The effect of electronic word-
of-mouth on sales: a meta-analytic review of platform, product, and metric factors. Journal
of Marketing Research, 53(3), 297-318.
http://journals.ama.org/doi/full/10.1509/jmr.14.0380

3. Naik, P., & Peters, K. (2009). A hierarchical Marketing Communication Model of Online and
Offline Media Synergies. Journal of Interactive Marketing, 23, 288-299.
http://www.sciencedirect.com/science/article/pii/S1094996809000711

4. Lemon, K., & Verhoef, P. (2016). Understanding Customer Experience Throughout the
Customer Journey. Journal of Marketing, 80(6), 69-96.
http://journals.ama.org/doi/pdf/10.1509/jm.15.0420

5. Oliver J. Rutz and Randolph E. Bucklin (2013), “Paid Search Advertising,” in Advanced
Database Marketing: Innovative Methodologies & Applications for Managing Customer
Relationships, Eds. Scott Neslin, Kristof Coussement and Koen De Bock, Gower/Ashgate
Publishing, available at http://faculty.washington.edu/orutz/docs/PaidSearch_2012.pdf.

6. Randolph E. Bucklin, Oliver J. Rutz and Michael Trusov (2009), “Metrics for the New Internet
Marketing Mix,” Review of Marketing Research, 5, 175-192, available at
http://faculty.washington.edu/orutz/docs/Metrics_2009.pdf.

7. Schweidel, D. & Moe, W. (2014). Listening In on Social Media: A Joint Model of Sentiment
and Venue Format Choice, Journal of Marketing Research, 51(4), 387-402.
8. Slides of the lectures

9. How to interpret analyses

10. Assignments 1-2-3

1. BBVA case

,BANNER ADS

What are banner ads?
A banner ad is a heading or advertisement appearing on a web page in the form of a bar, column or
box. They can be interactive or static and they have information of the brand. You can click on it.

Banner advertising can be purchased in different ways.
- Based on space and time on a website: for a daily fixed rate
- Based on performance: CTR

What is the goal of fixed rate banner ads vs performance rate banner ads?
- Fixed rate: brand awareness and brand association (more expensive) – daily fixed rate
- Based on performance: is about views, CTR, you pay for the performance (less expensive)

How do I measure effectiveness?
1. You can measure the effectiveness with following the clickstream. This can be done by
looking at the impressions. There are two types of impressions:
- Served impressions (are when a page has been requested through the web) and
- Viewable impressions: the page has been displayed, at least 1 second showing 50% of the
content.

2. Furthermore, to be sure from these metrics if the user processes the ads?
Click-through data can alleviate this concern (Bucklin et al, 2009)
Using click stream data you can use a logit model to identify the drivers of whether they clicked
or not (CTR).
You can also look at the time spend on a page, to make sure the information is processed.

3. Another way to test this can be with A/B testing:
a. Randomly divide customers into groups
b. Assign each group to a different treatment
c. Measure the response for both groups
d. Compare results

When dealing with effectiveness, what are the possible issues related to banner ads and how to
avoid them?

(1) People Avoiding banner ads is a big problem, you can avoid this by creating more alignment
with the place where the banner is located. Customize a context-congruent message to cut
down on perceived goal impediment.

(2) They text may not be congruent with the page or website. Better congruity leads to
favourable on attitudes, while incongruity can lead to shocking effects and to better recall
and recognition (sometimes you then want to play with those two things).
a. People are browsing on facebook and display websites for social or research reasons.
They are not looking to convert.

(3) Another issue might be the consumers goal, because users in a goal-directed mode are much
less likely to recall and recognize the brand ads than users who are already in a browsing
mode.

, SEARCH: ORGANIC & PAID

Search engine marketing
Search engine marketing (SEM) allows marketers to address an audience more likely to be interested
in the message and less likely to avoid it.

What is the difference between banner ads and search ads?

Banner ads Search ads
A banner ad is a heading or advertisement search ads can be paid search ads or organic
appearing on a web page in the form of a bar, search ads.
column or box and Search engine traffic originates from voluntary
It is audience-drven search rather than from
forced exposure to a message
While banner ads and traditional offline search engines offer a less intrusive method as
advertising often intrude on the audience and well as an opportunity to offer messages that
interrupt activities which creates avoidance. are congruent with the consumer’s goals
(customer is even expecting it)
There are 2 types of SEM (search engine
marketing):
- Organic search
- Paid search
Goal: to create awareness (high visibility and Goal: qualified leads, boosting traffic to your
retargeting = pulling customer back at a website. Because customers are actively
purchase) searching for keywords that result in seeing the
search ad.
It also generates higher CTR than display ads
because of these qualified leads.

Two types of SEM:
(1) Organic searches (or unpaid listings, links) are ranked based on:
- the text content of a web page (tags)
- external elements (number of links to that page at other sites)
- quality of the website (Penguin 2.0)
- mobile-friendly version of the website

How can advertisers influence organic search results?
Through search engine optimization (SEO) to reflect specific keywords and phrases relevant for the
business of the site. SEO process must be guided by marketing strategy:
- identify target customer segments
- nature of the search activity

- Firms with high “search equity” are deemed relevant for certain queries by the search
engines and will be displayed high in the organic rankings
- Managing SEO is a long-run process and search engines actively discourage short-term
gamesmanship, or so called “black-hat” strategies
o “Black-hat” can lead to the removal of the offender’s website from search engine
listings (e.g., BMW and J.C. Penney)
 Linking farms

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