Please share this with everyone you know as we would really like Richard Branson to hear about it and say ‘YES’.
Yipeeeee, I graduated on Friday the 8th of November and am now the proud possessor of a Foundation degree in Marketing. The past two years needed to acquire this, were at times extremely stressful, but on the whole both enjoyable and very worthwhile. I am now in my forth month at Liverpool Victoria, working with a great team and learning a lot. Really looking forward to starting my final at Bournemouth University in September 2014.
I am now in my 3rd Year at university and my degree course requires me to undertake a one-year Placement within the Marketing industry. I have been successful in obtaining a position within one of the many marketing departments at the Liverpool Victoria ( LV= ) insurance company. Having completed my first month with this company, I have realised that I have been very lucky with this appointment. I have been made very welcome, my team and everyone else I have met there have all been very friendly and very helpful and I feel sure that the experience I will gain over the next year will be invaluable to my future career. The knowledge I have gained at the Bournemouth University in the last 2 years is now being put into practice, and I am also learning how things are done in the ‘real world’ as opposed to theory.
In my last post, I admitted that I am not particularly attracted to the Digital world I have blogged about. However, possibly against my better judgement, I have decided to continue my blog in the academic style that has been set from the start. As my posts begin to flow, I will attempt to stay objective and provide as much scope and information as I attempted in my previous posts.
Companies use various online revenue models in order to attract customers to a wider range of products and services through which they generate profitability from interaction with customers. According to the Internet Advertising Bureau (IAB, 2013), digital advertising expenditure in the UK grew 12.6% to £2.59 billion in the first half of 2012.
To generate revenue online, companies use advertising models such as display ads on Yahoo, search and text ads on Google, promoted content on Twitter, Recruitment ads on LinkedIn and many more.
However, there are implicating factors in this model such as a correlation between an individual’s online behaviour and advertising exposure, and actually having a positive effect on buyer behaviour (Ekimov, 2013). Google’s interactive advertising model can be used to achieve more desirable results.
Subscription revenue models allow customers to subscribe for a sum of money for a certain period of time (daily, monthly or annual). Typically this model was used by newspapers and magazines, however, others also embraced it. According to International Business Times (IBTimes, 2013) Sony Play Station 4 due for November release will charge users for its online features through offering a premium subscription, enabling users to access thousands of games for a monthly fee.
The revenue model benefits businesses providing them with constant revenue from subscribers. Subscriptions are paid in advance, meaning reduced risk and uncertainty for the businesses.
“Affiliate”, another form of revenue model is commission based, providing purchase opportunities wherever people surf (Slideshare, 2012). This can be done, offering financial incentives in the form of a percentage of revenue to its affiliated partner sites.
This model offers merchants a wider area to sell their products and services, whereas for affiliate marketers it proves to be an easy way of creating additional income for their websites. However, by implementing this model, merchants may suffer from costly set up and high commission costs, and affiliates can be cheated by merchants when dishonest ones close down programs without informing the affiliates, and leaving them without paying commission (Bandyopadhyay et al., 2009).
Amazon, for example offers an affiliate program for those interested, by encouraging people to promote the Amazon website in return for payment.
AVC, 2012. Web and Mobile Revenue Models. Photograph. AVC. Available from: http://www.avc.com/a_vc/2012/12/mba-mondays-revenue-models-advertising.html [Accessed 28 March 2013].
Bandyopadhyay, S., Wolfe, J., Kini, R., 2009. A critical review of online affiliate models. Journal of the Academy of Business & Economics, 9 (4), 141-148. Available from: http://ehis.ebscohost.com/eds/search/advanced?sid=5e230881-e00e-4d69-9a01-9ea7c7268467%40sessionmgr11&vid=11&hid=104 [Accessed 28 March 2013].
Ekimov, G., 2013. How to build successful internet advertising network. Available from: http://www.webxiom.com/how-to-build-successful-internet-advertising-network/ [Accessed 28 March 2013].
International Business Times, 2013. Sony PlayStation 4 to force premium subcsriptions similar to Xbox Live. Available from: http://www.ibtimes.co.uk/articles/437194/20130220/ps4-playstation-sony-price-launch-details-specs.htm [Accessed 28 March 2013].
Internet Advertising Bureau, 2013. 2012 H1 Digital Adspend Results. London: Internet Advertising Bureau Available from: http://www.iabuk.net/research/library/2012-h1-digital-adspend-results [Accessed 28 March 2013].
Slideshare, 2012. Business and Revenue models in e-commerce. Available from: http://www.slideshare.net/pranaypanday/business-and-revenue-models-in-ecommerce [Accessed 28 March 2013].
WordPress, 2010. Affiliate Marketing. Photograph. WordPress. Available from: http://welaoh.wordpress.com/2010/02/18/ [Accessed 28 March 2013].
YouTube, 2013. Playstation 4 News: Subscription Models and all games are digital. Available from: http://www.youtube.com/watch?v=I7tGnXalwVM [Accessed 28 March 2013].
The Internet is used to increase exposure to a larger number of people creating a larger customer base, enabling businesses to generate revenue.
According to the Internet Advertising Bureau (IAB, 2013), UK businesses spent £814 million on affiliate marketing and lead generation activities, generating £9 billion in 2012. Online Performance Marketing (OPM) operates on the basis that advertisers will only pay once someone makes a purchase or submits their contact details because of the advertisement. Comparison sites such as USwitch or CompareTheMarket, voucher sites – VoucherCodes.co.uk; loyalty/reward sites – Nectar; and cashback sites – Quidco are all examples of OPM.
In 2012 OPM drove 5-6% of e-commerce retail sales, resulting in 100 million consumer “direct transactions” valued at £8 billion as a result of affiliate marketing, and 70 million submitted enquiries (IAB, 2013).
Affiliate marketing “connects online merchants with an affiliate” (Birkner, 2012), allowing retailers to spend less, generate sales with payment only required when sales are made. However, the complex structure of an affiliate network and lack of education in industry makes marketers cautious of implementing this method as a customer acquisition and revenue generation tool (Shields, 2013).
Some companies embrace subscriptions helping reduce customer acquisition costs, inventory requirements, and generate a steady cash flow (Business Week, 2012). YouTube is planning to sell subscriptions to some of the channels on its video platform (Financial Times, 2013).
“Pay-per-click” is another online advertising model, directing more traffic to the website. Search engine marketing platforms, “Google Adwords” and “Bing Ads”, allow businesses to buy listings in their search results.
The Perfume Shop used a YouTube Video Targeting Tool in conjunction with Mercury technology to “overlay adverts for celebrity perfumes targeting matching celebrity videos” (Moth, 2013). The agency targeted thousands of YouTube videos with 100% relevance to the viewers. The PPC achieved a 236+% return in investment on a view through conversion.
ASL, 2013. Organic search results. Photograph. Canada: ASL Internet. Available from: http://www.aslinternet.com/products/organic-search-engine-listings.php [Accessed 20 March 2013].
Birkner, C., 2012. The ABCs of Affiliate Marketing. Marketing News, 46 (10), 6. Available from: http://ehis.ebscohost.com/eds/search/advanced?sid=4b49549c-4afc-4246-8de3-5a980d5f1552%40sessionmgr112&vid=3&hid=109 [Accessed 20 March 2013].
Financial Times, 2013. YouTube to switch on paid-for video. London: Financial times. Available from: http://www.ft.com/cms/s/0/d1c0b348-6a37-11e2-a7d2-00144feab49a.html#axzz2O67TvBev [Accessed 20 March 2013].
Gupta, A., 2012. YouTube Pay-per-view. Photograph. Trak.in. Available from: http://trak.in/tags/business/2012/10/18/youtube-pay-per-view-service-india/ [Accessed 20 March 2013].
Internet Advertising Bureau, 2013. UK’s “hidden” £814m online economy. London: Internet Advertising Bureau. Available from: http://www.iabuk.net/about/press/archive/uks-hidden-814m-online-economy [Accessed 20 March 2013].
Klein, K.E., 2012. Making the Web’s subscription economy hum. Business Week, 12 June 2012. Available from: http://www.businessweek.com/articles/2012-06-12/making-the-subscription-economy-hum [Accessed 20 March 2013].
Moth, D., 2013. Six examples of effective PPC and SEO campaigns. London: Econsultancy. Available from: http://econsultancy.com/uk/blog/62270-six-examples-of-effective-ppc-and-seo-campaigns [Accessed 20 March 2013].
Shields, R., 2013. Despite the big number affiliate marketing still has lost of convincing to do. Marketing Week, 23 January 2013. Available from: http://ehis.ebscohost.com/eds/search/advanced?sid=4b49549c-4afc-4246-8de3-5a980d5f1552%40sessionmgr112&vid=3&hid=109 [Accessed 20 March 2013].
YouTube, 2013. Exclusive chat with Christina Aguilera. Available from: http://www.youtube.com/watch?v=JTyKpDrl3Lg [Accessed 20 March 2013].
The Chartered Institute of Public Relations defines public relations as the state of a company’s reputation, acquired by, what the company does, what they say and what others say about them (CIPR, 2013). Branding on the other hand is used by businesses to influence consumer perception of particular products or services. Brands can be associated with a consistent set of attitudes, beliefs and emotions (Marketing Minds, 2012). Branding can also be described as the image or idea of specific products or services that customers connect with. A particularly good example of what Branding represents is given by the Norwich Business School (YouTube, 2011).
So, what is the relationship between public relations and branding ? Branding allows companies to convey messages of their products in potential consumer’s minds in order to connect with them, public relations, are used in order to strengthen that relationship with the company and what it has to offer. According to Prindle (2011) integration between the two lies in building brand trust where public relations is a vital element.
Some companies use celebrity endorsements to build trust with customers, make the brand easier to remember and attract new customers. “Chanel” for example, uses Keira Knightley to endorse their product to convey the message of a luxury brand. To be able to do this and also to attract consumer attention, they have used sensual stimuli in their advertisement to excite and hopefully encourage consumers to purchase the product.
In order to strengthen consumer’s perception of a luxury brand image, the advertisement shows that the brand and celebrity have similar personalities and are therefore connected. This shows how brands try to increase consumer desire for products advertised by using a successful and attractive celebrity.
CIPR, 2013. About PR. London: Chartered Institute of Public Relations. Available from: http://www.cipr.co.uk/content/about-us/about-pr [Accessed 12 March 2013].
Marketing Minds, 2012. Brand basics. Australia: Marketing Minds. Available from:
http://www.marketingminds.com.au/branding/brand_basics.html [Accessed 12 March 2013].
Prindle, R., 2011. A public relations role in brand messaging. International Journal of Business and Social Science, 2 (18), 32-36. Available from: http://ehis.ebscohost.com/eds/search/advanced?sid=044c535d-b940-4d3a-8411-3e681439464c%40sessionmgr10&vid=2&hid=4 [Accessed 12 March 2013].
YouTube, 2013. Keira Knightley in “Coco Chanel Mademoiselle” ad 1080p. Available from: http://www.youtube.com/watch?v=JTyKpDrl3Lg [Accessed 12 March 2013].
YouTube, 2011. What is branding? Available from: http://www.youtube.com/user/NorwichBSchool [Accessed 12 March 2013].
Web 2.0 provided consumers with communication power through social media, meaning that companies had to “join the conversation”, learn to listen and communicate with their audience and engage their brands (Shields, 2008).
Web 3.0 (Semantic Web) allowed brands to further engageme through personalisation, not just by style and format, but also content (Koren, 2012). Brand engagement becomes critical as trust is the crucial medium to relationship building with consumers.
Facebook introduced “Graph Search”, meaning that the integration of social elements and the semantic web enables users to have a more connective and smarter web experience (Fine, 2013), allowing a better search experience for users which is “more intuitive and yields better hits” (Fine, 2013). Brands also have access to more accurate data that mirrors the searches being done for their products (Schepke, 2013).
Web 3.0 allows brands to be much more engaging as brands use their powers of persuasion along with old marketing techniques to change consumer behaviour. The Guardian suggests desired behaviour can be achieved through visual, emotive and social nudges (Shea, 2012).
The Web 4.0 era will be more about the online customer assurance. It will also mean more powerful interfaces, such as ambient and artificial intelligence. Brands will have to replicate customer experience online as it is offline.
Massive Dynamics will unveil a first Web 4.0 computing tablet which will operate on Google’s Android platform. This device will give the company priority access to the potential 210 million tablets forecasted by Digitimes to be sold in 2013 (Marketwatch, 2013). The device can receive information and instructions from its user without the need to touch the tablet, or utilise voice input or involve any external peripheral device (Marketwatch, 2013).
Blanchard, O., 2013. Introducing Graph Search. Photograph. Available from: http://thebrandbuilder.files.wordpress.com/2013/01/fgs.jpg [Accessed 28 February 2013].
Blogspot, 2010. The future of artificial intelligence. Photograph. Available from: http://thefutureofartificialintelligence.blogspot.co.uk/2010/08/2010-is-start-of-web-40.html [Accessed 28 February 2013].
Fine, B., 2013. Web 3.0, Facebook Graph Search, Bing: What it means for brands. USA: Bob Fine. Available from: http://thesocialmediamonthly.com/web-3-0-facebook-graph-search-bing-what-it-means-for-brands/ [Accessed 28 February 2013].
Flickr, 2009. Web 3.0 Presentation World Cloud. Photograph. Available from: http://www.flickr.com/photos/bonus/3772366436/ [Accessed 28 February 2013].
Hinchcliffe, D., 2007. Web 2.o Concept. Photograph. Available from: http://www.labnol.org/internet/favorites/the-difference-between-web-10-and-web-20/665/ [Accessed 28 February 2013].
Koren, J., 2012. What is Web 3.0? USA: SlideShare. Available from: http://www.slideshare.net/joh5700/what-is-web-30-12562936 [Accessed 28 February 2013].
Marketwatch, 2013. Massive dynamics tentatively schedules unveiling of new Web 4.0 Table. USA: Marketwatch. Available from: http://www.marketwatch.com/story/massive-dynamics-tentatively-schedules-unveiling-of-new-web-40-tablet-in-cupertino-on-march-15th-2013-01-07 [Accessed 28 February 2013].
Schepke, J., 2013. Facebook Graph Search: How multi-location brands & local marketers can capitalize USA: Jon Schepke. Available from: http://searchenginewatch.com/article/2250855/Facebook-Graph-Search-How-Multi-Location-Brands-Local-Marketers-Can-Capitalize [Accessed 28 February 2013].
Shea, L., 2012. Nudging the nudgers: brands, persuasion and sustainable lifestyles. The Guardian, 19 October 2012. Available from: http://www.guardian.co.uk/sustainable-business/brands-sustainability-nudge-power [Accessed 28 February 2013].
Shields, L., 2008. How Web 2.0 is changing the World of Marketing. USA: Slideshare. Available from: http://www.slideshare.net/lanceshields/how-web-20-is-changing-the-world-of-marketing-presentation [Accessed 28 February 2013].
Nowadays in order to succeed online, companies have found they need to build an interaction with consumers. As Mintel (2012a) reports, 75% of online consumers widely access social networks, therefore companies are able to build their relationships online through social media like Facebook, Twitter, Google+, LinkedIn etc.. According to Webmoghuls (2012) Facebook reached 1 billion users in 2012, equating to 1/7th of the world’s population, providing a powerful facility for companies to reach consumers on the Facebook website.
63% of consumers visit Facebook daily (Mintel, 2012b). This should enable companies to build a strong presence and promote their brands. Branding through social media allows companies to reach the masses worldwide. Online public relations can be an important part of any brand, allowing companies to answer adverse comments, and design campaigns, to counteract negative publicity. It also allows monitoring of customer’s positive responses.
Many thousands of people love Oreo cookies, many like to separate the cookie from the crème. The company used social media to monitor debate on Twitter and Facebook as it has 32 million fans on Facebook across 200 countries and 76,000+ followers on Twitter (Mashable, 2013). In order to expand their “Cookie vs. Crème” campaign, the company posted videos on YouTube showing new innovative ways of eating Oreo’s. This example shows how Oreo engage their brand on social media sites, taking it a step further with fun video interaction with their consumers.
Mashable, 2013. Social media darling Oreo looks to boost YouTube following. USA: Mashable. Available from: http://mashable.com/2013/02/26/oreo-separator/ [Accessed 26 February 2013].
Mintel, 2012a. Digital Trends Winter – UK – December 2012. London: Mintel. Available from: http://academic.mintel.com [Accessed 26 February 2013].
Mintel, 2012b. Social Media and Networking – UK – May 2012. London: Mintel. Available from: http://academic.mintel.com [Accessed 26 February 2013].
Webmoghuls, 2012. Online brand building through social media. India: Webmoghuls. Available from: http://www.webmoghuls.com/blog/2012/12/online-brand-building-through-social-media/ [Accessed 26 February 2013].
YouTube, 2013. Oreo separator machine #1 – Creator: Physicist David Neevel. USA: YouTube. Available from: https://www.youtube.com/watch?v=pii4G8FkCA4&feature=player_embedded [Accessed 26 February 2013].