Introduction to Digital Marketing

DIGITAL MARKETING STRATEGIES AT LARGE COMPANIES

Cradle Fund Presentation

You are not a large company

¨  Spend more in a month then you will ever get in seed funding

¨  ‘Shock and awe’ launch ¨  Huge teams of people

focused on just doing one thing

¨  Cover every conceivable marketing channel

¨  Everything gets more complicated the bigger you get ¤  Limits to volume so CaC goes

up

Role of marketing manager

¨  Goal of online marketing is to drive traffic to your business /website at:

1.  Lowest cost 1.  -> Profit per customer

2.  Highest quality 1.  -> Conversion

¨  Good marketing managers can and need to do BOTH! ¤ This gets hard when you need to bigger volumes

Marketing is more than generating traffic… show me the money! SEM, Social, Display…. Conversion AKA

“Sale” Your Website

Attracting Conversion TO the site

(ie. Visitors, CTR)

Converting Conversion ON the site (ie. Conversions, CR)

1 2

Channels tracked for orders

¨  Google / cpc ¨  Google / organic ¨  Sociomantic / Retargeting ¨  Facebook / Social Media Paid ¨  Facebook.com / referral ¨  Facebook / Social Media ¨  Newsletter / Email ¨  PR (direct) / (none) On site

¨  Homepage / Slider-Banner

5 pillars of conversion rate at ecommerce 1.  Quality of traffic

1.  Marketing team 2.  Volume of traffic

1.  No traffic = no sales 2.  Marketing team

3.  Price 1.  Buying team

4.  Assortment 1.  Buying team

5.  Quality and relevancy of landing page 1.  Onsite team

In Asia TRUST and

CONVENIENCE are key!

Watch out for last click attribution

Marketing can get really expensive when you get big (and market small)

CPO

# Customers

Market education cost

Marketing as a function of growth not profit (Groupon ASCOI..) ¨  Revenue ¨  - COGS ¨  = Profit contribution 1

¨  - All other non-marketing costs ¨  = Profit contribution 2

¨  - Marketing cost ¨  = Profit contribution 3 (=EBITDA)

Don’t focus on offline

¨  Focus is on online ¨  Why?

¤  Trackable (KEY!) ¤  Purchasing intent / Already on a

computer ¤  Generally better CAC

¨  When do offline? ¤  You have spent so much cash

online it gets expensive ¤  Brand building (Suppliers like it) ¤  Halo effect of multi-channel

marketing ¤  TV costs a lot, but can bump

sales fast!

Key learnings to apply

¨  Test everything that moves

¨  Develop a hypothesis, list assumptions and test them

¨  Focus on what converts and kill what doesn’t

¨  Know your numbers!

SEM

¨  Thousands of campaigns (Bundles of keywords) ¤ Need to capture all the

volume you can across long tail

¨  Perfect for capturing specific purchasing intent

¨  Need to track all the time, ultimate binary keep/kill

¨  GDN (Display) and FB are good traffic driver, but quality lower than SEM

SEO

¨  Long-term approach, think months and years

¨  Really important to drive down marketing cost over time, need to start

¨  Can also help cover up bad bloggers…

¨  Contribute to increasing your google ranking (Get on the first page)

¨  Want to get lots of backlinks ¤  Sites with good rep are more

valuable (pareto) ¤  You can call/email people

and ask!

Newsletter examples

¨  Newsletters are a great source of converts ¤  Get higher LTV by re-activating

¨  Smiley faces in subject headers ¨  Sending from a person’s name

not a company ¨  Segmentation to target

different kinds of users ¨  Timing of the day you send

¤  Open rates

¨  Check what they look like across different clients ¤  Outlook often weird

Social Media

¨  Focus on Facebook, don’t care about others

¨  ‘Gadgets go viral’ and convert well

¨  Boring stuff does not get shared

¨  Generally low IQ ¤  People like cats (Engagement)

¨  Social, social sharing have higher quality traffic at attractive cost

Affiliates

¨  Beware, think of affiliates like real people ¤  If you do not convert they will kill you and will be

difficult to sign them again ¤ How much you pay doesn’t matter if don’t convert!

Sneaky and scrappy (AKA latent markets)

¨  Some models, people aren’t looking for you ¤ Twitter, Glossybox/Birchbox

¨  Content marketing can get you going (Forum posts) ¤ “We are 3 girls and not enough guys signed up”

¨  Viral ¤ Dollar shave club!

¨  Generating content for social sharing ¤ Memes

Retargeting (Sociomantic)

¨  Ultimate stalking ¨  This is why you see

ads everywhere after going to Lazada

¨  CAC is really good