Thursday, March 25, 2010
Your business needs a website
Thursday, February 18, 2010
Maintain the proper balance
http://bx.businessweek.com/tech-startups/view?url=http%3A%2F%2Fxaxii.com%2Fblog%2F-%2Fblogs%2Fbalancing-creativity-with-practicality
What are your thoughts about what people should do before purchasing or implementing technology?
Thursday, February 11, 2010
Affiliate Marketing: Performance based marketing
Affiliate marketing is an internet based marketing practice that is rewarded for each “action, or acquisition” brought by the affiliate’s marketing efforts. Affiliate Marketers use their skills to place these advertisements in locations that will not only get clicks, but achieve some end goal- such as a purchase. The topic of today’s blog will be to cover the perspective of an organization who may be unsure where to allocate their online marketing budget. Performance based campaigns are designed to generate leads, or sales for your business on a fixed cost. Calculating the “cost per acquisition” (CPA) for your desired campaign is the most important step. I won’t go into great detail on this matter, as your cost will depend on your particular business, and what your goals of the campaign are. This blog will help you understand the components of the industry, and will give you clear insight that you can apply to your businesses online marketing efforts.
Example 1
Max owns an online t-shirt business. He structures a campaign to pay out $4.00 per t-shirt sale. He lists this ad campaign with a network. This network is then accessed by ‘affiliates’ who will promote the ad on various websites, newsletters, or search engines. The affiliate can either place the ad on their own website, or find web space available for purchase. Theoretically, your affiliates will be doing the leg work, and will rigorously test various placements and text configurations. In exchange, they get $4.00 per sale they drive your way- without managing the website or shipping any t-shirts. You profit, depending on your costs and prices- what’s left over.
It’s easy to see why performance based ad campaigns would make sense- yet many businesses are reluctant to jump on board because of the shear nature of the industry. Performance based campaigns need to monitored closely to ensure that all of your affiliates are acting in accordance to your campaigns rules. Many performance based campaigns fail because the quality of leads are poor. Back to example 1- if we paid the affiliate marketer the $4.00 for a tshirt that was sold- but the order was canceled before we shipped out the shirt- we would lose out on the $4.00. Similarly, many businesses feel that affiliate marketers ride the fine line of ethical behavior.
Let’s step into the shoes of the Affiliate Marketer in the example above. I am looking to promote t-shirt sales through various channels. I decide I want to purchase ad inventory on a popular clothing search term, “Funny Shirts”. The cost to me would be on a cost-per-click (CPC) level, in which I want to minimize in order to maximize profits. I find that the term ‘Funny Shirts for Kids’ is nearly half the cost- so I buy there to start. The cost to me is .01 per click, I buy 5,000 clicks = $50 buy. In order for me to break even, I need to sell 13 shirts through this link. 13 / 5,000 = .0026 or .26% need to convert on this traffic. If I convert at a higher rate, lets say 1%- I would be earning profit. If it went below- I would be earning negatively. Since this traffic is so cheap however, the quality of the consumer purchasing is lower. Since this is also a keyword targeted towards kids, logically one would assume their purchase behavior to be quite different than an adult. Are they likely to make a purchase online? Do they have a credit card? All of these questions are relevant in the buying decision for an affiliate marketer. But costs are king in the industry. To keep costs as low as possible, some may be willing to give up quality- in turn affecting the perceived value of your brand.
On either side of the transaction, performance based campaigns are surely on the rise. More and more businesses are taking advantage of the solidarity of the networks and their trusted affiliates. Understanding how you can integrate performance based campaigns into your online marketing strategy, could lead to more sales- and more profit.
Thanks for reading, and enjoy your night.
. Consumers are required to do something, before we (as marketers) are paid. This means- a consumer needs to either make a purchase or simply enter an email.
From the perspective of an organization
Additional ways to use Technology
http://www.morebusiness.com/technology-grow-small-business
Thursday, February 4, 2010
Marketing Megatrend: Mass collaboration is powering the new economy
For Shizzle qxwzzer
Thursday, January 28, 2010
Leveraging your business with Google Analytics
Google Analytics is a fantastic product that can provide rich insights into your businesses strategy. For those businesses with websites, Google Analytics tracks visitors who browse your website. The product is so robust, it's possible to segment your visitors and conduct a deep dive analysis of potential customers. In addition to segmenting visitors, you can also build a marketing funnel in which you can track conversions.
To marketers, this tool is almost like the Bible. Those that understand the capabilities of this software can leverage it to their advantage.
In this blog post, I will specifically discuss the topic of analyzing who your visitors are. This allows you to focus on your business and develop pages that will cater to potential customers. Before we get started, it’s best to login to Google Analytics while I discuss some of the key features of the section "visitors". Once you login, click the Visitors tab on the left hand side. For the purpose of this blog, I will simply talk about the overview page, and how we can use this information to build a better website. This blog will help build the foundation of understanding this tool, and will start to provide insights into who your customers are.
Right off the bat, we can see how many people have visited our website and how they have engaged with the content. The metrics listed on this page help illustrate this engagement. Here are some definitions if you are unfamiliar with the terms listed on this page:
Visits – The amount of people who have loaded your website with ‘fresh cookies’
Absolute Unique Visitors – The absolute unique number of visitors who have visited your site
Pageviews – The amount of pages that are loaded on your site by visitors
Average Pageviews / user – How many pages a user browses on your site
Time on site – How much time a browser spent on your website
Bounce Rate – What percent of people immediately leave your website after visiting only one page
New Visitors – The percent of new visitors to your website
After reviewing these terms, now we are ready to start understanding and analyzing this data.
Let’s start off by trying to answer a few questions regarding the use of the website:
Are visitors taking advantage of the website by viewing more than 4 pages on average?
Is our bounce rate higher than 40%? If so, our website may be overwhelming to visitors- or too difficult to navigate.
If we scroll down to the technical profile, we can then see which browsers our visitors use- and even their connection speed. This can help guide decisions regarding the structure of your website. For example, if you have a website that is mainly based in flash, yet most of your browsers don’t have flash…this could be extremely traumatic to your business. Understanding who your visitors are, and how they engage with your website, will ultimately guide the development of your site. Next week we will discuss analyzing how visitors browse your website, and how you can optimize your layout to maximize each visit.