MarketingSherpa Blog

Marketing has a language all its own. This is our latest in a series of posts aimed at helping new marketers learn that language. What term do you find yourself explaining most often to new hires during onboarding? Let us know.

This article was originally published in the MarketingSherpa email newsletter.

Digital marketing is the communication of value to a potential customer through their computer, tablet, smartphone or similar device to help that customer perceive the value of the product or service. The goal of digital marketing is to earn a “yes” (also known as a conversion) to the organization’s “ask” (also known as a call-to-action). That ask may be the ultimate conversion an organization seeks to achieve – often a sale – or an intermediate ask like signing up for an email list or joining a webinar. Copywriting and design are critical to this value communication.

Digital marketing, also known as online marketing, is often contrasted against traditional marketing, also known as offline marketing. While offline marketing has occurred since the dawn of humanity, it’s rise really occurred during the start of the era of mass production caused by industrialization and mass media. Marketers were needed to generate demand for this new, abundant supply.

Digital marketing’s rise has been driven by the mass adoption of the internet and the associated increase in the use of digital devices.

If you are searching for the definition of digital marketing, you likely want to understand this juxtaposition – in other words, what is particular about digital marketing as compared to traditional marketing. We’ll provide a few particular aspects, but first, some word usage examples.

Word usage examples

To put the term “digital marketing” in context, here are some examples of how we have used the term in our content:

• “A new hire recently asked me for a good place to start to get a better feel for digital marketing.” from The Beginner’s Guide to Digital Marketing: 53 articles (and 1 video) to help with onboarding
• “To help you come up with your next successful incentive, this MarketingSherpa article features six specific examples of digital marketing incentives that worked.” from Digital Marketing: Six specific examples of incentives that worked
• “Mondo’s placement data shows that digital marketers are keeping pace with the expected national average, reporting an average [salary] increase of 3% across all digital marketing” from Marketing Chart: Salaries for digital marketing positions increase by 3%

And our very first mention of “digital marketing” on February 26, 2008 (there were earlier mentions of similar phrases like “internet marketing”) came in a job title:

“However, Mikael Blido, head of Digital Marketing, Sony Ericsson, knows that…” from How Sony Ericsson Markets (In)directly to Consumers: Secrets Behind Their Online Strategy

Now let’s look at what is particular about digital marketing as compared to traditional marketing.

A/B testing is cheaper, quicker and easier in digital marketing

Before the rise of digital marketing, traditional marketers could split test direct mail and other direct marketing. They would mail one marketing message to a randomly selected group of potential customers, another marketing message to another randomly selected group, and see which performs better.

They would have to print multiple versions, have multiple calls to action (for example, two phone numbers), wait weeks or longer for the results to come in, and manually tabulate the results.

Digital marketing allows inexpensive, quick, and easy testing on a variety of channels – digital advertising networks, social media advertising, email platforms, or on websites with the help of testing software.

Since testing can help marketers improve results by better understanding their customers, digital marketing can allow more marketers to understand more customers quicker.

When Gartner’s GetApp brand surveyed 238 leaders at startups and small businesses about marketing technology, respondents cited A/B testing as the most effective software tool in their toolkit – 62% found A/B testing tools very effective.

“A/B testing may take a little getting used to, but once you get the hang of things you can discover business insights that help you increase conversions and—ultimately—your bottom line. Or, it may allow you to fail fast and move on,” said Amanda Kennedy, Senior Content Writer, GetApp.

Here are a few free resources you might find helpful if you’re looking for best practices for starting and/or measuring A/B tests for marketing experimentation:

A/B Testing in Digital Marketing: Example of four-step hypothesis framework

A Behind-the-Scenes Look at Creating an A/B test

Unlock the Power of Your A/B Testing Program

Email Marketing Optimization: How you can create a testing environment to improve your email results

Get Your Free Test Discovery Tool to Help Log all the Results and Discoveries from Your Company’s Marketing Tests

Prioritize your marketing experiments with the Test Planning Scenario Tool

Digital marketing is less expensive in general

Not only is A/B testing less expensive in digital marketing versus offline marketing, pretty much everything digital is less expensive (well, everything except digital marketing salaries).

Email marketing is generally less expensive than direct mail. Video pre-roll ads are generally less expensive than TV commercials. And while rates are increasing as competition increases, online display ads are generally less expensive than print advertisements in newspapers and magazines.

Here are a few free resources if you need help with digital media buying and budgeting:

Reprioritize Your Marketing Spend and Transform Your Results: Learn a radical new framework

Advertising Chart: How digital ad placement strategy affects customer response

Marketing Budget Charts: B2B customer experience investments (plus 4 budgeting tips)

Advice From Three Digital Marketing Experts on Building Your Budget

It is easier to track the ROI of digital marketing

Department store owner John Wanamaker famously said, “Half the money I spend on advertising is wasted; the trouble is, I don’t know which half.”

It is notoriously difficult to track the ROI (return on investment) of offline marketing. For example, you could put a coupon in a newspaper advertisement with a unique code and count how many times the coupon is redeemed (or even, the exact amount of sales the coupon and ad secured). But what about people who saw the ad and aren’t coupon clippers? Or even more complex, what about people who saw the ad, had a positive brand impression, and then your digital ad stuck out to them and they clicked and purchased? How can you know what role the newspaper ad played?

While there is certainly branding in digital marketing, most digital marketing has a clear and direct call-to-action, and marketers can track from a click on that call-to-action and see how customers performed throughout the funnel up to a purchase, helping them measure the ROI of the digital ad.

Still, ROI tracking is far from perfect in digital marketing as well. If your company has a long and complex sales funnel, you have to decide how to measure ROI. Should the ROI be credited to the initial ad they clicked on that got them to download a whitepaper and signup for your email list nine months ago? Or the email they clicked on today that lead them to finally purchase? Or a combination? (This general topic is known as marketing attribution, and first-touch, multi-touch, and last-touch attribution models specifically).

What about if a customer reads a review of a product on your review site, but doesn’t click the affiliate link? Perhaps they purchase your product in a physical store or simply go back to your ecommerce store later to purchase. Are you properly attributing revenue to the review site?

If you are interested in tracking the ROI of your digital marketing, here are some free resources that can help:

Marketing Attribution Chart: Data from more than 500,000 customer buying journeys

Marketing 101: What is lead attribution?

Improve Attribution: 8 Steps to Measure the Impact of Your Marketing Efforts

Ecommerce Research Chart: ROI on marketing spend

Social Media: 4 simple steps to calculate social media ROI

It is easier to reach the niche group of people who can be best served by your product

Marketers typically call this targeting. But who wants to be targeted? Targeting implies you are about to be attacked.

So let’s call it – reaching the people your brand can best serve. That might be a small niche. A giant group. Or an amalgamation of personas that together comprise a large group of people.

This is possible in offline marketing to some extent. If you only serve a particular city, you can buy an ad in the local newspaper. Or if you are looking for outdoor enthusiasts, you can advertise in Outdoor or Sierra magazine.

But digital marketing allows for a much deeper and more granular focus for your marketing messages. You can build your own email list of people who are interested in your product. You can host a sweepstakes and attract people who are interested in your giveaway prize (for example, a trip to an organic resort could attract people interested in buying organic milk). You can only serve up your advertising to people who take a certain action, such as search for a specific term or put a specific product in a shopping cart.

For example, Bladder Cancer Advocacy Network (BCAN) was able to generate 2,555 leads from a $6,500 ad spend on Facebook by using specific parameters that focused the ads around a lookalike audience (people who had similar characteristics to BCAN’s current community) along with specific demographic parameters of people who are considered ‘at risk’ for bladder cancer diagnosis, such as firefighters and Vietnam veterans (you can read more in Quick Case Study #4 in Anti-Selfish Marketing Case Studies: 4 specific examples of focusing on what the customer gets).

This ability to reach a niche group of people may get harder and more expensive though. As customer privacy concerns increase, governments along with major corporations that make operating systems and devices are putting limits on tracking customer behavior.

If you are interested in reaching a specific group of people with your digital marketing, here are some free resources:

Online Behavioral Advertising: How to benefit from targeted ads in a world concerned with privacy

The Benefits of Combining Content Marketing and Segmentation

Email Segmentation: Finish Line’s automation initiative lifts email revenue 50%

How to Tailor Ads to Demographic-based Preferences & 5 Tips for Motivating Mature Consumers

Advertising Research Chart: Customer perception of what makes a travel ad effective, by age group

Email Marketing: Groupon’s segmentation strategies across 115 million subscribers

Local SEO: How geotargeting keywords brought 333% more revenue

You have many opportunities to learn about the customer

While it plays a role of some of the other aspects of digital marketing I’ve already discussed, data deserves its own distinct section as well.

With A/B testing, you are building an experiment to learn how specific changes you make affect customer behavior.

But even if you don’t build A/B tests, it’s almost impossible not to get some data from your digital marketing. Even better if you proactively set up your campaigns to record the data that will be most insightful about the customer.

With offline marketing, you may be able to collect data if a person responds to the ad. For example, if they send you the postcard you included in a magazine or call the phone number on your newspaper ad.

With digital marketing, the data is far more extensive. You can granularly track many behaviors customers taken, even how they scroll on your website or where they hover their mouse.

While we’re on the subject, data is a very buzz-y word that seems big and scary to the non-analytical marketer. It can be complex, for sure. However, data simply gives us an opportunity to better learn about and serve real human beings on the other side of the mouse – the people we call current and potential customers.

If you are interested in digital marketing data, here are some free resources:

The Data Pattern Analysis: 3 ways to turn info into insight

Digital Analytics: How to use data to tell your marketing story

Get Your Free Simplified MECLABS Institute Data Pattern Analysis Tool to Discover Opportunities to Increase Conversion

Digital marketing is less trusted

We’re on a roll discussing all of the bonafides of digital marketing, so I hate to be a Debbie Downer. But if we’re going to discuss what is particular about digital marketing…let’s be honest. At least one thing that is particular is negative.

Digital marketing is generally less trusted than traditional marketing.

We asked 1,200 consumers: “In general which type of advertising channels do you trust more when you want to make a purchase decision?” Prints ads ranked first, with 82% of Americans saying they trusted advertisements in newspapers and magazines when making a purchase decision. But it goes beyond just that one channel. All of the top six most trusted media were traditional, and all of the seven least trusted media were digital.

You can see the data for yourself in Marketing Chart: Which advertising channels consumers trust most and least when making purchases.

If you need help instilling trust in your digital marketing, here are some free resources:

Anxiety: Use privacy as a competitive advantage

The Marketer and Buyer Anxiety: Three ways to counter anxiety in the purchase funnel

The Importance of Building Trust: What 2,400 consumers say about trust in the conversion process

The Trust Trial: Could you sell an iChicken?

Four Quick Case Studies of Anxiety-Reducing Marketing

You can follow Daniel Burstein, Senior Director, Content & Marketing, MarketingSherpa and MECLABS Institute, on Twitter @DanielBurstein.

If you are interested in digital marketing, you might also like…

B2C Marketing: 65% lift in organic traffic from in-house digital marketing transition

A Simple Guide for the Busy Marketer: Using data from online marketing and web analytics tools

Social Media Marketing: Doubleday combines geocaching and Facebook to boost sales 23% for John Grisham book

If you are interested in entry-level marketing content, you might also like…

Marketing 101: What is source/medium?

Marketing 101: What is PPC in marketing?

Marketing 101: What is CRO (Conversion Rate Optimization)?

The Beginner’s Guide to Digital Marketing: 53 articles (and 1 video) to help with onboarding

As a member of the famous MIT Blackjack Team and the inspiration for the main character in the book Bringing Down the House and the Kevin Spacey film 21, Jeff Ma knows a thing or two about gambling.

Scratch that — Jeff Ma isn’t a gambler. That’s because every move in blackjack has one correct decision. It’s just about understanding basic strategy, and implementing it. Remove human instincts, or “gut feelings,” and you will stack the odds in your favor.

Currently the senior director of analytics at Twitter (after selling his startup to the social network) and a former predictive analytics expert for ESPN, Jeff spoke to the MarketingSherpa Summit audience about how to use data and analytics to come out on top with customers.

By using data to overcome emotional biases, Ma said, not only can marketers win big with customers, but they’ll also build influence within their organizations.

Learning to make better decisions

It all begins with increasing your odds by using basic strategy.

“A lot of people don’t use basic strategy, which is why we’re so bad at making decisions as a people,” Jeff said. “Decisions are best when you have data behind them.”

One common mistake people fall prey to is omission bias. Basically, people don’t want to be perceived as the agent for harm to themselves — or their company. As Jeff put it, people would rather make a decision with a lower chance of success if the “dealer” or “fate” beats them, rather than going with a higher chance of success that, if it fails, will mean they’ve made a “bad” decision.

Or to put it in Vegas terms: big risk, big reward.

There are no bad decisions — only ones informed by data

Read more…

Every year when I’m in Las Vegas for MarketingSherpa Summit, I find myself on the casino floor at some point. All roads in Vegas lead through the casino.

There’s bright flashing lights and sounds. Lively chatter. General bacchanalia.

Gambling looks like a lot of fun, and many people enjoy it. But other than a few bucks here or there, I don’t partake. Because, as someone who has written about evidence-based marketing for these many years, I suspect the odds are not in my favor.

The house always wins. In the gambler-casino relationship, the casino has the slight edge that, over billions of transactions, generates positive cash flow. This is a business after all, and revenue for the fountains, the curved glass and steel towers, the futuristic trams — it has to come from somewhere.

So when I had a chance to interview Jeff Ma, I wanted his opinion on the customer-marketer relationship. Who has the edge?

The customer and the marketer shouldn’t be opposed

“I think ultimately it’s not a similar thing because the difference . . . this is like honestly one of the things I don’t think people realize — the customer and the marketer shouldn’t be opposed. There’s not a contentious relationship. This should actually be a very positive relationship,” Jeff told me.

“If I were a customer, as long as the marketer had my best intentions, I wouldn’t give a s%&@ if they knew everything about me and all the data about me. As long as they’re not going to harm or use that against me, I want them to have as much information as they can.”

Jeff Ma is currently the senior director of analytics for Twitter, was previously ESPN’s predictive analytics expert, and is perhaps best known for his role on the infamous MIT Blackjack Team. Using creativity, math and teamwork, Ma created a card-counting method that helped the group win millions in Las Vegas. He was the inspiration for the book Bringing Down the House and the Kevin Spacey movie 21.

I was interviewing Jeff because he is a featured speaker at MarketingSherpa Summit 2017 in Las Vegas, and his response was right in line with discoveries from MarketingSherpa’s recent research.

For example, “showing personalized ads based on data about me is invasive” was not a major factor in why consumers blocked online ads.

However, that part Jeff mentioned about “as long as the marketer had my best intentions” was huge. Customer-first marketing was the key difference between how satisfied and unsatisfied customers described a company’s marketing, showing that the intentions behind the marketing play a critical role in the relationship with a customer.

Here are a few more quick takeaways from my conversation with Jeff to help you look at your data through a new lens.

Read more…

After 35 years in the industry, Chinese Laundry, a privately held women’s footwear company, continues to expand its influence season after season.

During Internet Retailer Conference Exhibition (IRCE) 2015, MarketingSherpa’s Courtney Eckerle spoke at the MarketingSherpa Media Center with Scott Cohn, Vice President of Ecommerce, Chinese Laundry.

Scott spoke about how marketers tend to establish processes or utilize platforms that work for specific projects or campaigns, but don’t always think about how it affects our customers.

“The biggest challenge we had is that they [platforms] were perpetually out of sync. So our inventory, pricing and a whole variety of other things that a customer expects to be consistent across channels, just weren’t consistent,” he said.

Whether you are looking to condense your blog platforms to update your content strategy or want to build product awareness, Cohn shared two key takeaways on maximizing multiple marketing platforms:

Be on the lookout

When undertaking a technology innovation, how do you begin to think about where you pain points lie?

Read more…

As an Operations Manager, I believe it is vital to establish processes that ultimately work for you and benefit your team. So I get very excited when I find a new process that could help my team with their workloads.

The challenge I often face is, how do I implement and make this development a success?

As a marketer, have you ever found yourself passionate about showcasing the best practices you’ve learned in order to achieve your goal, only to realize there are countless steps and paths to take? Don’t worry. Take a deep breath; it happens to all of us.

At MarketingSherpa Email Summit 2015 in Las Vegas, Courtney Eckerle, Managing Editor, MarketingSherpa, sat down with Tink Taylor, Founder and Chief Operating Officer, dotmailer, to discuss how email marketers can overcome the underlying challenges they may face by establishing processes to deal with the mountains of information at their disposal.

For instance, when outlining and creating email marketing campaigns, how can you condense the valuable content into something that will benefit customers?

Every year at Email Summit, we ask marketers for their predictions.

Before MarketingSherpa reporter Courtney Eckerle interviews you about your marketing predictions in the Email Summit Media Center, I figured it was only fair to put a stake in the ground and make some predictions you could hold me to as well.

Prediction #1: Convergence is the watchword for digital marketing this year

You’ve already seen (and will continue to see) convergence among marketing and business software platforms, and this trend will continue to grow as the line blurs between publishers, brands and marketing agencies.

Curve by Getty Images. Verizon’s experiment with Sugarstring. And, of course, The Red Bulletin. More and more brands are learning the power of building this kind of one-to-one connection with their audiences, building an owned audienc, and not having to borrow interest from television or other content creators.

At the same time, publishers are creating content for brands with their own agency arms, as well (a bit of a blast from the past when newspapers used to help create ads to sell media space).

Tribune Publishing (which owns the Chicago Tribune, Los Angeles Times and other dailies) bought a stake in Contend, a content agency that creates branded campaigns. Onion Labs, The Onion’s in-house ad agency, has made some seriously cool campaigns. Condé Nast, publisher of Vogue, Vanity Fair and GQ recently hired a director of branded content and launched a branded content shop which blurs the line between editorial and promotion.

Advertising and marketing agencies, more threatened than ever by brands and publishers, will try to get an ownership stake in the ideas they help create, like Anomaly did with EOS cosmetics or how 37signals went from being a website redesign shop to a software company selling Basecamp.

Data, will of course, be huge. This will be of benefit to content creators of all stripes listed above. Since they have the traffic and relationship with the audience, they have the ability to learn the audience’s preferences based on their behavior, and then engage in A/B testing with these audiences to build a strong understanding of the products, services and offers that these customers will most respond to.

But behind it all, let’s not overlook the people with the knowhow to make it happen, which can be a scarce resource — brilliant, brilliant marketers, writers, designers and data scientists.

Being able to navigate this land of data and convergence, networking and real relationships will be critical for the marketer to build cross-functional teams that understand all the elements it will take to be successful — content, technology, data and strategy. That’s one reason we pay so much attention to the audience experience and foster interactions and networking at Email Summit.

Read more…

This week in the MarketingSherpa Book Giveaway, we’re giving out five free copies of The Big Data-Driven Business: How to use big data to win customers, beat competitors and boost profits.

In this MarketingSherpa Blog post, we interviewed one of the co-authors, Russell Glass, for his insights on leveraging big data and what’s on the horizon for this much-discussed topic.

Russell currently serves as Head of B2B Marketing Products at LinkedIn and previously served as Founder, President and CEO of Bizo, acquired by LinkedIn this year for $175 million.

Sean Callahan, Senior Manager of Content Marketing, LinkedIn, and former Marketing Director of Bizo, served as co-author of The Big Data-Driven Business.

Read on to discover how big data has brought Marketing and Sales closer than ever and what marketers can do to use big data effectively and ethically.

What really is big data?

“One of the reasons we wrote the book is that we saw a big discrepancy between those who understand big data and those who were either skeptical of it or didn’t know what to think about it,” Russell said.

For a marketer just getting started in understanding and leveraging big data, Russell explained that it’s all about knowing your customers much better than you know them today through technology.

Why is big data so valuable?

For CMOs and marketers driving success for their company and achieving huge gains by using big data, they are putting a culture in place that is asking deep and insightful questions about their customers.

“They are understanding what makes a customer tick, what their customer is looking for and how can marketers create more relevant experiences for that customer,” Russell said.

Then, these marketers using big data are putting the systems in place to answer those questions as well as using all of those increases in processing power, storage and technology to create a better experience for their customers.

“These CMOs, because they are so close to the customer, they become the person in the organization that’s most likely able to move shareholder value,” he explained.

Read more…

The discoveries of science can never fully bridge the mystery of the human mind. We need art to discern the difference. The effective marketer converts experiments and metrics into elegant forms of communication. For the marketing organization to be truly successful, it must respect both the science and the art. Indeed, marketing translates science into art.

-Flint McGlaughlin, Managing Director, MECLABS Institute

As the FlintsNotes.com curator, I often come across profound observations like this one.

I try to have Flint elaborate on them, or at least jot down some notes of other lectures or observations that pertain to it. Flint sometimes says jokingly that he has been “accused of being a scientist,” the scientific approach to marketing being sometimes seen as a means to an end.

In a perfect world, we would instinctively know what our customers want, and the best way to communicate our message.

The science of marketing

The science behind online marketing today is a fairly new tool in which we can use to learn a great deal about our prospects.

This tool, the Internet, enables us to track how prospects react to our various offers or messaging. One of the reasons why this method of testing is superior is because it is a record of how your customers have already performed. It is far more powerful than a focus group – for example, where a person may believe they will act one way, but in reality, behave a in a completely different manner.

The art of marketing has been around for arguably much longer.

Since the dawn of man, we have been convincing each other to purchase or accept food, weapons, goods or even religious beliefs. The ability to connect with another human being, to innately know what the other person is seeking, becomes one of the sharpest weapons in the marketer’s arsenal.

Metrics and data analytics can begin to paint the picture of what your prospects are truly interested in.

Even when prospects do not accept an offer or click the desired button, the choices they do not make tell a great deal about what they want.

By interpreting these results, the marketer can glean discoveries about their customers’ behavior that can be implemented across various other channels.

When the marketer can be sure an offer is being communicated effectively online through testing, that same messaging is likely to be just as effective in other channels like direct mail, or in-person at a store.

  Read more…

As marketers, we see lots of benchmark data and statistics that we base our business decisions on.

At MarketingSherpa, we recently conducted a nine-month study on the state of ecommerce.

You’ll see the results of our research conducted with 4,346 marketers across 95 in-depth charts.

Obviously, this data didn’t come out of thin air. There was a survey that our MECLABS research team carefully constructed to gather those insights.

Crafting effective surveys is potentially the most important part of collecting useful data, whether you’re fielding research for a report or simply gaining customer feedback.

Diana Sindicich, Senior Manager, Data Sciences, MECLABS (parent company of MarketingSherpa), played an integral part in the MarketingSherpa Ecommerce Benchmark Study and provided some tips on how to produce the most effective survey for your needs.

Survey Tip #1. Evaluate your situation

There’s a good time, and a not-so-good time, for everything. This rule of life applies to surveys as well.

In surveys, situations may exist for you that make it a good idea to field a survey, Diana explained.

This could include scenarios of when you want to understand your customers’ motivations or characteristics. Maybe you’re looking to expand your product lines and want to know what your customers would like to see offered.

On the other hand, there are times when a survey may not be the best idea for what you want to accomplish. Perhaps you have a very personalized service with a small group of customers. Surveys can be perceived as impersonal — conversely, an interview would make the customer feel special and valued.

  Read more…

For Jermaine Griggs, Founder, Hear and Play Music, communicating with customers through email was a critical part of his marketing efforts. By embracing behavior-based marketing tactics, Jermaine achieved an increase in customer lifetime value (CLTV) of 416% in 14 months simply by harnessing the power of personalized marketing strategies.

At Email Summit 2013, Jermaine explained how he accomplished these results in his presentation, “How an Online Music Teaching Company Harnessed the Power of Email Automation & Behavior-based Marketing to Increase Conversions.”

In this video excerpt, learn about behavior-based marketing, and how Jermaine applied it to Hear and Play’s CRM system.

“Personalized marketing is about authentically altering the user experience based on data and behavior,” Jermaine explained

In this short clip, watch how Hear and Play captures and uses internal and external data to increase the effectiveness of campaigns. Also, understand how to let what your customers and prospects do dictate what you do in return.

Read more…