creating a social media strategy for a tourism business | block 1: basics of online marketing
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Creating a social media strategy for a tourism business
Block 1: Basics of online marketing
International Master in Hospitality and Tourism Management
This document has been produced by 11 Goals & Associates. It is not complete unless supported by the underlying detailed analyses and oral presentation.
January 7th, 2013 Francisco Hernández fran.me
About me SHAMELESS SELF-PROMOTION
Education: Universidad Politécnica de Madrid, UNED,
London Business School, University of Chicago – Fundaciò
“laCaixa” & Fundación Rafael del Pino scholarships.
Firms worked for full-time: Abengoa, McKinsey&Co, ABN
AMRO, Real Madrid C.F.
Entrepreneurship: Crisalia
Social Media & Internet consulting: 11goals.com
Lectures & Speaker in 3 continents: The Wall Street Journal, Universidad Politécnica
de Madrid, London Business School, Cornell University, Politecnico di Milano, CEIBS
(Shanghai), Kungliga Tekniska högskolan, The Business Factory, Asociación J.W.
Fulbright Spain, ESCP Europe, UIMP, and several private companies.
Full profile: linkedin.com/in/franciscohm
Seminar’s agenda
How do I make money in Internet?
(Block 3)
How can I market my business in
Internet? (Blocks 1 and 2)
Block 1: Basics of online marketing (day 1)
Block 2: Social tourism (days 2 & 3)
Block 3: E-Commerce in tourism (day 3)
Block 4: Case presentations (day 4)
“One should not simply trust quotations in Internet”
Julius Caesar
Quote of the block
Agenda
Online advertising
Affiliate programs
Referral marketing
Email marketing
SEO
Content marketing
Online public relations
Social marketing (block 2)
Fake marketing
Online advertising industry map
Source: Progress Partners
See definitions in “The Online Advertising Technology Marketplace”
Pricing models
PPI (Pay per impression)
•Advertiser pays a fee every time the ad is shown
Description Comments
• Have to measure impressions. • CPM: Cost per thousand impressions. • Ej.: Brand awareness/building.
•Advertiser pays a fee every time the ad is shown AND clicked
• Have to measure clicks (both sides). • The network work to target customers who click. • CPC: Cost per click (Flat or Bid). • CTR: Click-Through-Rate. • CPC=CPM/1000*CTR. • Ej.: Simple transactional business.
•Advertiser pays a fee every time the ad is shown AND clicked AND a target action is carried out by the user (typically a purchase)
• Have to measure conversions (both sides). • The network works to target customers who convert. • Integration between Ad network and landing website. • CPA: Cost per Action. • CPA=CPC*Conversion Rate. • Ej.: Transactional business where client targeting is
valuable
Type
PPC (Pay per click)
PPA (Pay per action)
Revenue Sharing
•Advertiser shares part of the revenue generated by the ads
• Have to open books to advertiser. • Short-term or Long-term revenue. • Sometimes it is considered a type of PPA. • Ej.: Transactional business where client value over time
is important, and advertiser plays a role in identifying it.
Agenda
Online advertising
Google AdWords/AdSense
Mobile advertising
Affiliate programs
Referral marketing
Email marketing
SEO
Content marketing
Online public relations
Social marketing (block 2)
Fake marketing
How does Google Search present results?
Sponsored results: •Pay
Organic results: •Free •Not exist if not in the first 5 spots
If you are well positioned in the organic search (SEO) you do not need to pay
(SEM)
Contextual Ads
AdSense (offer your website to Ad Network) Offer your website to Ad Network
Google Insights / Google Trends
Source: http://www.google.com/insights/search/
Relative scale
Similar system: Google Trends
www.google.com/trends
How popular are your keywords of interest?
Google AdWords
Source: https://adwords.google.com/select/KeywordToolExternal
Estimating Keyword Search Volume
Google AdWords Estimating cost and outcome of campaign
Is EUR 0,50 cheap or expensive?
Depends on: •Conversion Rate
•Product/Service gross margin •Commercial alternatives
Keyword auction system
For each keyword or keyword combination=> Second-price auction system with combined criteria: 1. Bidding price 2. Relevancy for the user
Watch this video: http://www.youtube.com/watch?v=qwuUe5kq_O8
Hal Varian Chief Economist
Google Inc.
Google AdWords Inserting ads
EXAMPLE
Google AdWords Outcome, managing ads
EXAMPLE
Agenda
Online advertising
Google AdWords/AdSense
Mobile advertising
Affiliate programs
Referral marketing
Email marketing
SEO
Content marketing
Online public relations
Social marketing (block 2)
Fake marketing
Online Advertising
o Select the right keywords or segmentation.
o Always measure results.
o Send clicks to a landing page as relevant to the content of the ad as possible. You would convert more AND you could lower the price of the auction.
oMake many campaigns changing wording, images, segmentation, etc. Manage dynamically all those campaign so that you keep only the most profitable.
o Spend little money at the beginning, and only escalate your spending when you are sure the conversion funnel works and is profitable.
o Learn from testing, extract general conclusions you can use in the future.
“Ads+online” (we have focused on website display ads)
Definition
Key points
Agenda
Online advertising
Affiliate programs
Referral marketing
Email marketing
SEO
Content marketing
Online public relations
Social marketing (block 2)
Fake marketing
Amazon Associates
• Since 1996
• Long-Tail concept too
• Multiple integration tools, even APIs.
affiliate-program.amazon.com
Bible Gateway
Affinity between a website dedicated to the Bible and a Christian publisher.
www.biblegateway.com
Affiliate programs
Source: Wikipedia; others
o One step above the concept of mere advertising. More integration and alignment, longer term.
o Little-intrusive marketing. Users may thank the website for searching interesting items to buy around the topic of interest.
o Pricing: Most frequently is revenue sharing, typically paying per sale; but it can be PPC or PPI.
o Success determined in great par buy i) public affinity/niche or ii) contextual ads
o Multi-Tier programs (affiliate gets rewards for his clients and the clients coming from the affiliates he brought in, and the clients of the affiliates his affiliates helped to bring in…
o Very popular in betting, adult websites, and file-sharing.
“a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's own marketing efforts”
Definition
Key points
Agenda
Online advertising
Affiliate programs
Referral marketing
Email marketing
SEO
Content marketing
Online public relations
Social marketing (block 2)
Fake marketing
DropBox
• Two-sided incentive: more storage for the user who reefers, and for the user who accepts.
• Increased signups by 60%
• 2.8 mill. referral invites in about a year.
www.dropbox.com
Tuenti
• Exclusive access by invitation.
• Reward for the sender: improves her social network.
• Reward for receiver: only way to signup.
• Limited number of invitations: you select better who you send an invitation.
• Smart strategy: Tuenti grew concentrically so that interaction was always high (low-interaction social networks die).
www.tuenti.com
Referral marketing
Source: Wikipedia; others
o Works better for superior products, specially if they are innovative and the user needs to make an effort to use the product (change his current brand, learning curve, etc.).
o Referred customers usually are more loyal and profitable.
o Think it twice before offering money as a reward; the user can be concerned about feeling he is a salesman for the website.
o The “best” rewards can be virtual items or simply the pleasure of being seen as a pioneer in the eyes of friends.
o Think of trying to embed an limited-in-time offer tied to the acceptance of the referral email: extra features, discount price, etc.
o Limiting the number of invitations can make a lot of sense. It may add value to the act of referring.
“structured and systematic process designed by the website with the mission of promoting products or services to new customers through referrals, usually word of mouth”
Definition
Key points
Agenda
Online advertising
Affiliate programs
Referral marketing
Email marketing
SEO
Content marketing
Online public relations
Social marketing (block 2)
Fake marketing
idealista.com
• Value-added services that turn a proactive, punctual contact into a passive, continuous relationship.
oAlerts (predefined searches, changes on favorite items, etc.)
oNewsletter.
oContacts between users.
www.idealista.com
Email marketing
Source: Wikipedia; others
o Three types: Direct emails, Newsletters, and Transactional emails.
o There are many software tools that allow to measure the impact of these type of communications: bounce rate, % received, % opened, % clicked, % converted, etc.
o Few things annoy users more than spam. It is not what you think it is spam, but what they think!
o Prevent being classified as spam buy security systems: easy unsubscribe, remind the user she subscribed, provide a postal address, reliable landing pages, not big images, ask reader to label you as “safe sender”, personalize, pace sending, etc.
o Test concepts with a small user base, measuring unsubscriptions and other parameters in order to tradeoff between reach and conversion.
o For huge communications (buying database): are you prepared for so much traffic and sales?
“marketing a commercial message –directly or indirectly- to a group of people using electronic mail”
Definition
Key points
Agenda
Online advertising
Affiliate programs
Referral marketing
Email marketing
SEO
Content marketing
Online public relations
Social marketing (block 2)
Fake marketing
How does Google select and rank information?
Organic search
Each keyword or combination of keywords: => Relevancy score algorithm (PageRank) using the following information:
• Incoming hyperlinks (quantity and quality) • ~200 variables: outgoing hyperlinks,
content coherence, update frequency, adherence to programming standards, load time, etc. etc.
More info: http://en.wikipedia.org/wiki/PageRank
Softonic • Founded in 1997.
• Clear SEO strategy.
• Revenue model: has changed but now it seems to be mostly advertisement.
• #1 software download website in the World
• 112 mill. Unique users per month (Dec 2011) → #1 Spanish website.
• Revenues: EUR 32 mill. (2010)
• EBIT: EUR 15 mill. (2010)
www.softonic.com
Top tips for a good SEO strategy
Source: Top10SEOtips.com
1. Find the Best Keywords
2. Discover What Your Competitors are Doing
3. Write Very Linkable & Sharable Content
4. Optimize Your Title and Meta Tags
5. Optimizing Your Headings and Subheadings
6. Use Title and ALT Attributes
7. Optimizing File Nomenclatures
8. Tell the Search Engines What to Index
9. Feed Search Engines Static and XML Site Maps
10.Use Checklists and Validators
Best way to “be” an expert: Type “SEO” on Google and spend hours reading…
EXAMPLE
Search Engine Optimization
Source: Wikipedia; others
o Be patient, be patient, be patient, be patient… (e.g.: Softonic)
o “The only place where success comes before work is in the dictionary”. SEO is the marathon of online marketing.
o Very cheap marketing.
o All tips and strategies you have to follow are widely available online, and are common sense. No hidden secrets.
o Watch out black-hat SEO strategies: link farming, cloaking , etc.: BMW was banned by Google for some time!
o Does it really payoff to externalize SEO to an agency? Incentives are not the same (moral hazard). They may think short term while you should think long-term. External talent can be good if you make it sure to control/understand everything it is done, or establish penalties by contract.
“process of improving the visibility of a website or a web page in search engines via the "natural" or un-paid ("organic" or "algorithmic") search results”
Definition
Key points
Agenda
Online advertising
Affiliate programs
Referral marketing
Email marketing
SEO
Content marketing
Online public relations
Social marketing (block 2)
Fake marketing
idealista.com
• Real Estate reports based on ~1 million listings
www.idealista.com
Content Marketing
Source: Wikipedia; others
oWorks better if exclusive content coming from internal database mining.
oGood combination with PR in traditional media or social media.
oTry not to divert much from your brand’s values. Maybe the content you publish attracts a lot of attention but it may not be the sort of attention you need.
oRankings: that simple thing that has a phenomenal appeal to the users.
“all marketing formats that involve the creation or sharing of content for the purpose of engaging current and potential consumer bases”
Definition
Key points
Agenda
Online advertising
Affiliate programs
Referral marketing
Email marketing
SEO
Content marketing
Online public relations
Social marketing (block 2)
Fake marketing
eBay Move systematically interesting stories to traditional media
www.ebay.com
• “The frequently repeated story that eBay was founded to help Omidyar's fiancée trade Pez candy dispensers was fabricated by a public relations manager in 1997 to interest the media. This was revealed in Adam Cohen's 2002 bookand confirmed by eBay” (Wikipedia)
• eBay has spent years promoting stories such as:
- “Buys a USD 50 mill. private jet on eBay”.
- “Brand new Ferrari on sale at a current price of USD 1”.
- “Sells his brain on eBay”
- Etc. etc.
Facebook against Google Send negative stories of your competitors to mass media
Read the whole story: Bloomberg
airbnb Celebrity invests/promotes a website
www.airbnb.com
• As of today, Hollywood star Ashton Kutcher has ~13.8 mill. fans on Facebook, and ~13.4 mill. followers on Twitter.
• Invested on and promoted Ooma (2007), airbnb (2011) and Gidsy (2012).
Online Public Relations
o Most startups begin promoting a beautiful story about why the founder(s) decided to launch the service. Nobody says: “I spent 3 months crunching numbers and I saw this business opportunity”.
o Some websites are great sources of marketable stories (e.g. Classifieds, Social Networks, etc.).
o Usually cheap, specially if you pay a celebrity with equity (try not to regret later about the amount of equity you have given away) or are able to manage PR by yourself.
o Not only celebrities, successful entrepreneurs with blog audience can be very interesting too: smart capital + endorsement + promotion.
o At a small scale: create a network of fellow entrepreneurs who frequently talk about each other’s projects. Pay favors with favors.
o Other tactics: shit the big player, litigate, get sued, small-blogger relations, etc.
o PR is an art, hire a great professional if you can.
o Negative PR can damage yourself.
“practice of managing the flow of information between an organization and its publics” (applied to online business)
Definition
Key points
Source: Wikipedia; others
Agenda
Online advertising
Affiliate programs
Referral marketing
Email marketing
SEO
Content marketing
Online public relations
Social marketing (block 2)
Fake marketing
Fake Marketing
o Unethical. Unreal.
o Short-term strategy that usually hurts the company in the long-term: search engines would detect it, social networks know your followers are fake, etc. etc.
o Watch out! Some marketing magicians can be using them to deliver good results.
o I know a case a someone who was about to buy a website for EUR 4 mill. and it seemed the traffic was fake traffic.
o How to detect fake marketing: due diligence, in-depth analysis of analytics, smart Q&A with website marketers, etc.
o Aggressive advertising can be a sort of low-intensity fake marketing.
o Come on! You already know how to do it without cheating!
“Using external services or methods to achieve final marketing goals in a way that does not serve the indented benefit for the company”
Definition
Key points
Agenda
Online advertising
Affiliate programs
Referral marketing
Email marketing
SEO
Content marketing
Online public relations
Social marketing (block 2)
Fake marketing
Thanks
Francisco Hernández francisco_hernandez@11goals.com
www.11goals.com
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