Digital Marketing Channel Mix


By: Andres Castillo Ormaechea

In today's digital marketing world there are several channels through wich we can reach out to an audience:

  • Email marketing.
  • Display advertising.
  • Search marketing.
  • Social Media marketing.
  • Mobile advertising.

Search Marketing

Search marketing involves two types search:

  • SEO (search engine optimization): how well optimized and the quality of your website for giving users the best experience as possible and this involves a gazillion criterias that change everyday but to name some there is quality, trustworthiness, popularity and authority.
  • SEM (search engine marketing): is a way of promoting websites by increasing their visibility and findability in search engines. This involves areas such as organic search SEO and SEA (Search Engine Advertising) like PPC (pay per-click).

Type of search queries:

  • Do (Transactional queries): "I want to buy a movie ticket".
  • Know (Informational queries): "What is the name of the author of this book".
  • Go (Navigation queries): "I want to log out of my Facebook account".

Paid Search

Paid search works directly with ads and there are two important factors to keep in mind:

  • Ad Quality
  • Bid Ammount

Starting a paid search campaign requires goals definitions and could be branding to make awareness to users of the products, the organizations value and the brand overall. On the other hand could be more focus towards a direct response which is converting an ad into a sale.

You can use search engine data from user ad interaction to optimise your search campaign in real-time.

Display Advertising

The use of banner Ads to promote a brand. For example Google Banner Ads. This type of advertising gives you the power to target your audience with:

  • Demographics (age, gender).
  • Psycographics (like, dislikes, attitudes, aspirations).
  • Desktop, mobile, tablets.

A few concepts to keep in mind.

  • Programmatic advertising or RTB (real time bidding): the use of software to purchase digital ads.
  • Banner blindness: ads being ignored by the user.
  • Viewability: how visible are the ads depending on their location of in the page.
  • Targeting: creating ads designed specifically to a given audience.
  • Retargeting: use of cookies to serve specific ads to users who have shown interest in a product or website.
  • Segmentation: division of a single consumer market into smaller groups or segments based on certain characteristics.

For a display campaign to be successful goals and expectations need to be defined:

  1. Establish objective of the campaign. Is it awareness, direct response or conversion?
  2. Analyze Impressions, CTR's, CPC and conversion rates.
  3. Define target audience.
  4. Buy Ads. Display campaigns are based on CPM (cost per thousand).

How the digital display ad ecosystem works:

  • Ad Networks: these ad networks are like Google Ads where you have DSP (demand side platform) and SSP (sell side platform) and they are divided in two sections: search (SERP) and display (banner ads). They work a bit like blackboxes so a bit limited.
  • Ad Exchange: is a marketplace for ads where there are publishers and advertisers. For example DoubleClick is one of these platforms and they offer a lot of variety of publishers or suppliers to choose from but works with an ad bidding system.
Ad ecosystem

Ad Network Types

  • Rep network: exclusive publishers or groups.
  • Vertical Ad Network: publishers industry for example Fashion.
  • Targeted Ad Networks: segments based on demographics or behavioural characteristics.

Some numbers:

  • 80% of display ads are bid on today.
  • CTR of display ads is 0.35%.

Display Ads Real Time Bidding (RTB)

Real time bidding

Real Time bidding happens on the fly when a user reaeusts a website that has banners or some sort of space they offer for publicity. In the graph above what happens when bets are placed for ad spots the highest bid wins the first slot but pays the bid of the second best bid. As follows, the second best bid pays the bid of the third best bid. This causes a phenomenon calles "Edge worth cycles" that is basically when advertisers do bidding wars.

Social Marketing

The process of gaining traffic, attention and create brand awareness through social media platforms.

Four decades of engagement:

  • 1980's: single message.
  • 1990's: Segmentation.
  • 2000's: Customization.
  • 2010's: Socially Linked.
  • Network targeting: demographics of a user and their friends. Homophily is when you and your friends have similar interests at the same time.
  • Viral marketing: loyal customers to bring friends into buying a product or service.
  • Social advertising: google friendorsements is when you see "Sophie and 13 others like this brand".

Mobile Marketing

Targeting audiences via websites, email, apps, sms, multimedia message services, social media.

Mobile marketing is not an option is a requirement:

  • SEO.
  • PPC.
  • Display Marketing.
  • Social Media Marketing.
  • Mobile Marketing.

How to choose a marketing channel today?

  • Where is my business today and where do I want to go?
  • What are your goals?
    • Brand awareness.
    • Brand education.
    • Raw traffic.
    • Sales revenue.
  • Budget or "Marketing Math".
  • Context, tools and strategies.
  • Who are your customers or potential customers?
  • What behaviour triggers my customers to buy my product or service?
  • Businesses from 1-5 years should allocate between 12-20% of their budget of gross revenue to marketing.
  • Businesses with 5+ years should allocate 6-12% since they already have established brand awareness.