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Digital Marketing Education Program by RMN Company ANNEX-1 Digital Ad Pricing Like in the case of newspapers, magazines or TV, the ad rates differ on different digital media properties depending on their popularity among the consumers. There are various ad pricing models that you can choose based on your requirement. For example, in the Cost per Click (CPC) model, the advertisers pay to the publishers when a consumer clicks on their text or banner ad unit. Cost per millennium (CPM) rates are based on the impressions instead of clicks. Advertisers pay a certain amount to the publishers for every 1,000 impressions served through their Web properties. Factory visits during UNIDO Digital Marketing <strong>Training</strong> Program in Balasore, November 2012 Similarly, Cost per Period (CPP) is based on the time for which your ad is displayed on a publisher’s Website. In this case, advertisers pay a fixed amount to the publisher for a fixed period of time – say, with weekly or monthly payment options. It is much easier for advertisers to estimate the Return on Investment (RoI) for their ads in digital environment – which is not possible in traditional advertising. Besides, there are performance-based ad options. That means, advertisers will pay only when they get business benefit though their advertisements. In the Cost per Lead (CPL) option, advertisers will pay to the publisher when there’s a qualified business lead from potential buyers. And in Cost per Acquisition (CPA) business model, advertisers pay only when they get actual conversions from their ads. That means, they will pay when they are able to generate business through their ads. Thus, you can see that it is much easier for advertisers to estimate the Return on Investment (RoI) for their ads in digital environment – which is not possible in traditional advertising. Page 14 of 18
Digital Marketing Education Program by RMN Company ANNEX-1 Online Social Media Social media is a relatively new development in the Web space. Social media sites allow users from all over the world to interact with each other on diverse subjects. Estimates suggest that social media sites connect 1.5 billion people all across the world. As many of them are presumed to be the consumers of various products and services, marketers target them through social media messaging to promote their brands. There are further categories of social media sites including general-purpose sites, professional networks, and microblogging sites. Facebook, Google+, LinkedIn, and Twitter are some of the popular social networks. Similarly, YouTube for video sharing and Pinterest for picture sharing are the other examples of social networking sites. You can use social media sites in different ways. For example, you can create your own profile, connect with other users, and start sharing your brand information with people in your network. You can also create an exclusive page or section about your company or brand on a social network and invite others to connect with that page. All this can be done free of charge. Today, the most important aspect of social communications is to build and manage consumer communities around your brand. However, it is not very easy to attract users to your brand messages. Social media messaging is a highly specialized job. It is easy to create your social media presence through profiles or pages. But you can attract other eyeballs toward your brand only with right messaging scheduled at different time periods while targeting different groups of users. The number of users connected with your social media page won’t have any significance in the absence of their engagement with your brand messages. Level of engagement is the only measure to evaluate the success of your social media-based promotions. Engagement can be in the form of users’ comments and sharing of your information. Although there are quantitative tools available to estimate social media engagement, they are not quite effective. A true impact of your social media campaigns can be measured only with qualitative analysis, which is a very difficult task. Although you need not pay for using most social media sites, you can also advertise your brands on them for which you will have to pay to the social networking service providers. As social media communications is a highly specialized job, you may have to hire these services though the skills availability is scarce. While most public social media properties have not yet established their utility for marketers, big companies have started creating their own private social networks to interact with their buyers and other stakeholders like channel partners. Today, the most important aspect of social communications is to build and manage consumer communities around your brand. So, big brands are managing such communities for all types of brand communications. They are educating their buyers and resellers by delivering multimedia content through such private networks. Companies are also offering after-sales support to buyers using these community networks. The online communities can be created for customers, resellers, employees, investors, suppliers, etc. depending on your requirement. And only content can drive these communities. Page 15 of 18
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