Samenvatting Digital Marketing Analytics
Lecture 1
● Marketing (AMA) → 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.
● Online marketing→ Term referring to the Internet and e-mail based aspects of a
marketing campaign. Can incorporate banner ads, email marketing, search engine
optimization, e-commerce and other tools.
Digital marketing (Financial Times) →
● The marketing of products or services using digital channels to reach consumers.
The key objective is to promote brands through various forms of digital media.
● Digital marketing extends beyond internet marketing to include channels that do not
require the use of the internet. It includes mobile phones (both SMS and MMS),
social media marketing, display advertising, search engine marketing, and any other
form of digital media
Moore’s Law:
● Number of transistors in a dense integrated circuit doubles approximately every two
years
● Applies to many other electronics (memory capacity, sensors)
● Digital responsibilities grow exponentially
Costs of storage→ decreased exponentially over time (2017- €0.029, 2022 - €0.017)
Rest of the world catching up→ rapid increase internet penetration and internet speed,
first in the developed world, later in the developing world. Developing world likely to catch up
or even skip phases (head start)
Market share of online retailing growing
● Online retailing wins market share from traditional retailing
● Large difference between categories and countries
,Research possibilities in digital marketing→ some advantages
● More and richer data available
● Disadvantage of traditional retailing (data collection through store scanners/surveys)
is that the impact of marketing decisions can only be investigated at the aggregate
level, amount of usable observations is therefore limited
● Online retailer can investigate individual customers that have been reached and their
purchasing behavior
● Customers can be tracked through different stages by using cookies (other tracking
data)
● Easy large scale A/B testing (people see different ads)
● Empirically investigate word-of-mouth through social media, mobile communication
etc.
Lecture 2
Forms of online advertising→ email/display banner/search engine/retargeting/affiliate
programs/online video ads etc.
Compensation methods
● Advertisers pay content provider for advertisement space
● In traditional media costs depends on few factors→ Type of advertisement, size
and position, the audience size, target group and quantity
For online advertising different payment schemes→
● Cost per mile (CPM) → amount to be paid per 1000 ad impressions
● Cost per click (CPC) → amount to be paid per click on an ad
● Cost per action/acquisition (CPA) → amount to be paid when a click on the ad led
to a certain action (filling in form, buying certain product, subscribing)
Simple online path to purchase
● When having the data (impressions, clicks and
conversion), its easy to compare different
advertisements and calculate ROI.
, Organic and sponsored search results
Heat map and click-through rate (CTR)
● Most attention to first search results
● Scoring high on Google on keywords is very important
● By being relevant, Search Engine Optimization (SEO) or Search Engine Advertising
(SEA)
Search Engine Optimization
● Search engines use complicated and secret algorithms (change over time)
● Some components are known, it's important to use to increase traffic to website
through organic AND paid search
Create:
● Unique content that is well written
● Use relevant keywords
● Optimize website→ uptime, speed, no errors, well structured and up-to-date
● Make sure external sites link (including social media)
● Monitor performance and improve continuously
How much to pay for search ad
● Advertisers bid for keywords
● Google uses ‘’second price auction’’ → pay just enough to outbid position below
them
● Quality score→ based on expected click through rate, quality of landing page and
relevance to ad
● Bid, Quality score and impact on ad’s format determine Ad Rank Score
● Highest rank gets first etc. The amount needed to pay just enough to maintain rank
Typical cost per click→ highly vary between keywords, has to do with amount of searches,
how specific or broad the search is, competition and potential revenue
Impact→
● CTR highest for non-branded keywords especially with high rank
● Conversion higher for branded searches, especially with low rank
● → people click on first link which might not be relevant for them, people clicking on
lower links might do this more consciously
● Because of the high cost per click for the top positions and the stable revenue per
position, it is better to place a lower bid and try to be in the mid- to lower range in
terms of ad position.
Lecture 1
● Marketing (AMA) → 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.
● Online marketing→ Term referring to the Internet and e-mail based aspects of a
marketing campaign. Can incorporate banner ads, email marketing, search engine
optimization, e-commerce and other tools.
Digital marketing (Financial Times) →
● The marketing of products or services using digital channels to reach consumers.
The key objective is to promote brands through various forms of digital media.
● Digital marketing extends beyond internet marketing to include channels that do not
require the use of the internet. It includes mobile phones (both SMS and MMS),
social media marketing, display advertising, search engine marketing, and any other
form of digital media
Moore’s Law:
● Number of transistors in a dense integrated circuit doubles approximately every two
years
● Applies to many other electronics (memory capacity, sensors)
● Digital responsibilities grow exponentially
Costs of storage→ decreased exponentially over time (2017- €0.029, 2022 - €0.017)
Rest of the world catching up→ rapid increase internet penetration and internet speed,
first in the developed world, later in the developing world. Developing world likely to catch up
or even skip phases (head start)
Market share of online retailing growing
● Online retailing wins market share from traditional retailing
● Large difference between categories and countries
,Research possibilities in digital marketing→ some advantages
● More and richer data available
● Disadvantage of traditional retailing (data collection through store scanners/surveys)
is that the impact of marketing decisions can only be investigated at the aggregate
level, amount of usable observations is therefore limited
● Online retailer can investigate individual customers that have been reached and their
purchasing behavior
● Customers can be tracked through different stages by using cookies (other tracking
data)
● Easy large scale A/B testing (people see different ads)
● Empirically investigate word-of-mouth through social media, mobile communication
etc.
Lecture 2
Forms of online advertising→ email/display banner/search engine/retargeting/affiliate
programs/online video ads etc.
Compensation methods
● Advertisers pay content provider for advertisement space
● In traditional media costs depends on few factors→ Type of advertisement, size
and position, the audience size, target group and quantity
For online advertising different payment schemes→
● Cost per mile (CPM) → amount to be paid per 1000 ad impressions
● Cost per click (CPC) → amount to be paid per click on an ad
● Cost per action/acquisition (CPA) → amount to be paid when a click on the ad led
to a certain action (filling in form, buying certain product, subscribing)
Simple online path to purchase
● When having the data (impressions, clicks and
conversion), its easy to compare different
advertisements and calculate ROI.
, Organic and sponsored search results
Heat map and click-through rate (CTR)
● Most attention to first search results
● Scoring high on Google on keywords is very important
● By being relevant, Search Engine Optimization (SEO) or Search Engine Advertising
(SEA)
Search Engine Optimization
● Search engines use complicated and secret algorithms (change over time)
● Some components are known, it's important to use to increase traffic to website
through organic AND paid search
Create:
● Unique content that is well written
● Use relevant keywords
● Optimize website→ uptime, speed, no errors, well structured and up-to-date
● Make sure external sites link (including social media)
● Monitor performance and improve continuously
How much to pay for search ad
● Advertisers bid for keywords
● Google uses ‘’second price auction’’ → pay just enough to outbid position below
them
● Quality score→ based on expected click through rate, quality of landing page and
relevance to ad
● Bid, Quality score and impact on ad’s format determine Ad Rank Score
● Highest rank gets first etc. The amount needed to pay just enough to maintain rank
Typical cost per click→ highly vary between keywords, has to do with amount of searches,
how specific or broad the search is, competition and potential revenue
Impact→
● CTR highest for non-branded keywords especially with high rank
● Conversion higher for branded searches, especially with low rank
● → people click on first link which might not be relevant for them, people clicking on
lower links might do this more consciously
● Because of the high cost per click for the top positions and the stable revenue per
position, it is better to place a lower bid and try to be in the mid- to lower range in
terms of ad position.
