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Digital Advertising Exam 1 Chapters 1-4
Study Guide-David Richardson
Marketing is “the activity, set of institutions, and processes for creating, communicating,
delivering, and exchanging offerings that have value for customers, clients, partners, and society
at large.” Providing brand and product information digitally is a means to provide value to the
consumer.
Website marketing is marketing done through one or more websites. Websites can serve as
channels for direct online marketing as well as a basis from which consumers may assess the
organization.
A call-to-action (CTA) is an item in an email or on a website that promotes a desired action.
These elements entice the consumer to sign up for the service.
Search engine optimization (SEO) involves improving a website to optimize its use by search
engines, which often prefer websites that have relevant content and that are secure and
accessible. A key benefit of SEO includes ranking highly on search engine results pages
(SERPs).
Many consumers are active on social media platforms, such as Facebook, Instagram, LinkedIn,
Twitter, YouTube, Pinterest, Snapchat, TikTok, and many others. Social media marketing may
include various activities such as social media advertising, promotion, sharing, branding, and
otherwise connecting with consumers.
Influencers may help to enhance the organization’s brand in the minds of consumers, and so
create value. Influencers are people, platforms, or organizations that make recommendations
relied on by online consumers.
Digital segmentation is dividing the total digital target market into smaller groups. It is often
more effective to aim at a more specific target market than to attempt to serve all markets.
In digital marketing, allure refers to any experience which will attract or fascinate a consumer.
Methods of allure include promotions, announcements, or enticing initiatives.
Digital marketing is also about the ability to adapt to and adjust based on changes in the
environment and consumer behavior. Digital marketers need to be able to change their approach
when the situation warrants and to be flexible in their strategy and tactics
2
Conversion involves an action by a consumer engaging with the organization’s digital marketing,
which results in an intended objective being met. Conversion may include a sale, a sign-up to a
newsletter, a new membership, completion of a survey, or other action.
An organization’s general 4P’s strategies may be applied in a digital marketing sense. Products
and services of an organization must provide value to consumers. Digital marketing product
strategies should include communicating that value to digital consumers.
Organizations such as cable and Internet providers and mobile phone companies may adopt a
bundled pricing strategy in which consumers are offered a lower price if they bundle products or
services together.
Some organizations adopt a freemium pricing strategy in which they offer a basic service at no
charge and consumers pay for added services or a premium service level.
A key factor of content strategy is creating appropriate content for various digital marketing
platforms that should enable search engines to determine which search results to display as
relevant content. Evergreen content, which remains “continually relevant” over time, is often
created with SEO in mind.
With digital marketing, an organization may build a set of digital assets—all of the digital items
of value that an organization owns, including content, data, websites, and accounts. These items
are considered digital assets if they have value for the organization and consumers.
Factors that may lead to a failure to advance include lack of relevant information, clunky
processes, unenticing design, non-user-friendly approaches, poor customer experience or user
experience, high perceived prices, or low perceived value. Advance strategies are those that
address failure of customers to advance toward a purchase.
An organization may wish to focus on specific digital marketing objectives that are tied to
overall marketing goals. For example, organizations may intend to increase digital conversion
rates, gain specific digital customer insights, enhance retention rates, or increase digital brand
image. It is important that these objectives are accompanied by metrics.
Part of understanding the digital target market is knowing the digital buyer. Therefore, digital
marketers may want to build a digital buyer persona, which is an outline of what the organization
knows about its target consumers.
3
A digital value proposition is a unique, convincing proposal about why a consumer within an
organization’s target market should purchase its offering(s). Writing a solid digital value
proposition is crucial; it enables an organization to document what it offers for its target
market(s). Digital value propositions should follow a set format.
An open rate is the percentage of recipients who open marketing communications.
Sometimes the term digital consumer is used interchangeably with the term digital customer,
although these terms have distinct meanings. Technically, a customer is one who purchases a
product, service, or offering of an organization, while a consumer is one who uses or consumes
it.
In the awareness stage of the digital conversion funnel, the consumer becomes aware of a brand
or its products or services through a digital channel. At this stage, the consumer may have come
across information or a digital ad and has been exposed to specific digital marketing.
In the desire stage of the digital conversion funnel, the consumer wishes to take next steps, has
the ability to do so, and seeks more information. The consumer may look further into the product
or service, get information about how to order the product (including its price and shipping
details), chat with the organization about buying, or even try the product.
Digital consumers may first recognize an issue or problem they wish or need to resolve. This
may be a product they need, such as medication, or a product or service they want, such as a
vacation package.
Affiliate marketing is a strategy of engaging an affiliate (such as another website operator),
usually through a commission or reimbursement-based model, whereby the affiliate gets paid for
customers referred.
A CRM system also can help with loyalty and retention. Loyalty describes the feeling of
customers who not only prefer buying from an organization but also continue purchasing despite
the marketing strategies of a competitive product. A positive customer experience may lead to
increased digital engagement which in turn can increase loyalty and sales.
User experience (UX), an aspect of customer experience (CX), is how digital marketing (such as
a mobile app) “feels” for consumers and how engaging and usable it is. It involves what the
consumer feels, thinks, and senses and the action they take when interacting and engaging with
digital activities of an organization.
4
Hick’s law says that the time it takes for a consumer to make a decision increases with increased
complexity of choice. To improve UX, there should not be an abundant or complicated set of
choices such as a disproportionate number of pages or options.
In digital marketing, consumers are the users, the context includes the environment in which the
consumers make decisions, and the content is the information provided through digital
marketing.
Icons are an important function of digital marketing. These images or symbols help consumers
identify actions, steps, or features. Icons used in digital marketing typically are in the form of
small images that represent a specific action.
A website can be an effective tool for increasing conversion. Often the conversion is a sale such
as for an e-commerce website or the number of new members that have signed up through the
site. Key text on the website includes terms such as New Releases, Shop women-owned
businesses, Try, Learn more, Shop, and Top Deal. These are all designed to attract consumer
attention and increase conversion.
An electronic database consists of data stored in an organized fashion. It may include customer
details such as name, contact details, products purchased, time of purchase, customer comments,
questions, contacts, web visits, website activity, and other data, any of which can be later
retrieved for various digital marketing efforts.
A website may be one among various possible touchpoints in the customer journey from inquiry
to purchase and beyond. Creating interactive experiences—opportunities for customers to engage
with a website—can enhance the customer’s overall website experience.
Websites often provide information for consumers and details that they may be looking for about
products and services. Websites are superior methods to provide information beyond what some
retail environments may be able to provide, and can also provide information about a company
or brand.
It is important to conduct a regular website audit, a formal examination of the effectiveness of a
website. The purpose of a website audit is to assess and optimize the website. Audits can be
performed using many different measures: loading speed, content issues, crawlability, internal
linking, SEO effectiveness, usability, performance, security, CRO, CTAs, and others.
Dynamic content, otherwise known as adaptive content, is content that changes based on user
behavior. For example, dynamic content enables the website to be personalized to the visitor
5
Website analytics is the collection, reporting, and analysis of website data. Organizations may be
interested in a variety of types of data related to websites, including conversion, customer
satisfaction, retention, and brand performance.
It is important to have specific objectives for an organization’s website. Many websites have
multiple website-marketing goals.
Google Analytics includes tools to help organizations understand how visitors are using their
website and how to improve the visitor’s experience. It can be useful to track consumer
interactions, which are the responses and actions a user takes while engaging with a website or
other digital marketing. Data relating to website visits, visits to specific pages, purchases,
returns, time spent with specific pages, and data in customer accounts on the site can provide
customer insights.
The goal of user experience design is to develop a website that is “accessible, usable, and
engaging.” One aspect of such design is to create a perception of superior service quality or
brand image such as by offering visitors ample opportunity to ask questions, or ensuring the
colors and content match the brand. In addition, a website design should increase the chances of
obtaining a desired response. A response is any action a consumer may take when presented with
digital marketing, such as a call-to-action button.
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