Internet MKT: Online Advertising

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Contents
Articles
Online advertising Search engine optimization Social media marketing Email marketing Referral marketing Content marketing Native advertising Search engine marketing Pay per click Cost per impression Search analytics Web analytics Display advertising Contextual advertising Behavioral targeting Affiliate marketing Cost per action Revenue sharing Mobile advertising Digital marketing 1 12 18 25 29 30 32 33 37 41 42 44 53 55 57 59 69 72 73 78
References
Article Sources and Contributors Image Sources, Licenses and Contributors 81 85
Article Licenses
License 86
Online advertising
Online advertising
Part of a series on
Internet marketing

Search engine optimization Social media marketing Email marketing Referral marketing Content marketing Native advertising Search engine marketing
Pay per click Cost per impression Search analytics Web analytics Display advertising
Contextual advertising Behavioral targeting Affiliate marketing
Cost per action Revenue sharing Mobile advertising
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E-commerce
Online goods and services

Streaming media Electronic books Software Retail services
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Trading communities Auctions Online wallet Advertising
Online advertising

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Price comparison service Social commerce Mobile commerce

Payment Ticketing Customer service
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Marketing
Key concepts

Product marketing Pricing Distribution Service Retail Brand management Brand licensing Account-based marketing Ethics Effectiveness Research Segmentation Strategy Activation Management Dominance Marketing operations Social marketing Identity Promotional contents
Advertising Branding Underwriting spot Direct marketing Personal sales Product placement Publicity Sales promotion Sex in advertising Loyalty marketing Mobile marketing
Online advertising

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Premiums Prizes Corporate anniversary On-hold messaging Promotional media

Printing Publication Broadcasting Out-of-home advertising Internet Point of sale Merchandise Digital marketing In-game advertising Product demonstration Word-of-mouth Brand ambassador Drip marketing Visual merchandising
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Online advertising, also called Internet advertising, uses the Internet to deliver promotional marketing messages to consumers. It includes email marketing, search engine marketing, social media marketing, many types of display advertising (including web banner advertising), and mobile advertising. Like other advertising media, online advertising frequently involves both a publisher, who integrates advertisements into its online content, and an advertiser, who provides the advertisements to be displayed on the publisher's content. Other potential participants include advertising agencies who help generate and place the ad copy, an ad server who technologically delivers the ad and tracks statistics, and advertising affiliates who do independent promotional work for the advertiser. Online advertising is a large business and is growing rapidly. In 2011, Internet advertising revenues in the United States surpassed those of cable television and nearly exceeded those of broadcast television.:19 In 2012, Internet advertising revenues in the United States totaled $36.57 billion, a 15.2% increase over the $31.74 billion in revenues in 2011.:45 Online advertising is widely used across virtually all industry sectors.:16 Despite its popularity, many common online advertising practices are controversial and increasingly subject to regulation. Furthermore, online ad revenues may not adequately replace other publishers' revenue streams. Declining ad revenue has led some publishers to hide their content behind paywalls.
History
In early days of the Internet, online advertising wasn't allowed. For example, two of the predecessor networks to the Internet, ARPANET and NSFNet, had "acceptable use policies" that banned network "use for commercial activities by for-profit institutions". The NSFNet began phasing out its commercial use ban in 1991. Email. The first widely publicized example of online advertising was conducted via electronic mail. On 3 May 1978, a marketer from DEC (Digital Equipment Corporation), Gary Thuerk, sent an email to most of the ARPANET's American west coast users, advertising an open house for a new model of a DEC computer. Despite the prevailing acceptable use policies, electronic mail marketing rapidly expanded and eventually became known as spam.
Online advertising The first known large-scale non-commercial spam message was sent on 18 January 1994 by an Andrews University system administrator, by cross-posting a religious message to all USENET newsgroups. Four months later, Laurence Canter and Martha Siegel, partners in a law firm, broadly promoted their legal services in a USENET posting titled "Green Card Lottery Final One? Canter and Siegel's Green Card USENET spam raised the profile of online advertising, stimulating widespread interest in advertising via both Usenet and traditional email. More recently, spam has evolved into a more industrial operation, where spammers use armies of virus-infected computers (botnets) to send spam remotely. Display Ads. Online banner advertising began in the early 1990s as page owners sought additional revenue streams to support their content. Commercial online service Prodigy displayed banners at the bottom of the screen to promote Sears products. The first clickable web ad was sold by Global Network Navigator in 1993 to a Silicon Valley law firm. In 1994, web banner advertising became mainstream when HotWired, the online component of Wired Magazine, sold banner ads to AT&T and other companies. The first AT&T ad on HotWired had a 44% click-through rate, and instead of directing clickers to AT&T's website, the ad linked to an online tour of seven of the world's most acclaimed art museums. Search Ads. GoTo.com (renamed Overture in 2001, and acquired by Yahoo! in 2003) created the first search advertising keyword auction in 1998.:119 Google launched its "AdWords" search advertising program in 2000 and introduced quality-based ranking allocation in 2002, which sorts search advertisements by a combination of bid price and searchers' likeliness to click on the ads.:123 Recent Trends. More recently, companies have sought to merge their advertising messages into editorial content or valuable services. Examples include Red Bull's Red Bull Media House streaming Felix Baumgartner's jump from space online, Coca-Cola's online magazines, and Nike's free applications for performance tracking. Advertisers are also embracing social media and mobile advertising; mobile ad spending has grown 90% each year from 2010 to 2013.:13
Delivery Methods
Display advertising
Display advertising conveys its advertising message visually using text, logos, animations, videos, photographs, or other graphics. Display advertisers frequently target users with particular traits to increase the ads' effect. Online advertisers (typically through their ad servers) often use cookies, which are unique identifiers of specific computers, to decide which ads to serve to a particular consumer. Cookies can track whether a user left a page without buying anything, so the advertiser can later retarget the user with ads from the site the user visited. As advertisers collect data across multiple external websites about a user's online activity, they can create a detailed picture of the user's interests to deliver even more targeted advertising. This aggregation of data is called behavioral targeting. Advertisers can also target their audience by using contextual and semantic advertising to deliver display ads related to the content of the web page where the ads appear.:118 Retargeting, behavioral targeting, and contextual advertising all are designed to increase an advertiser's return on investment, or ROI, over untargeted ads. Advertisers may also deliver ads based on a user's suspected geography through geotargeting. A user's IP address communicates some geographic information (at minimum, the user's country or general region). The geographic information from an IP can be supplemented and refined with other proxies or information to narrow the range of possible locations. For example, with mobile devices, advertisers can sometimes use a phone's GPS receiver or the location of nearby mobile towers. Cookies and other persistent data on a user's machine may provide help narrowing a user's location further.
Online advertising Web banner advertising Web banners or banner ads typically are graphical ads displayed within a web page. Many banner ads are delivered by a central ad server. Banner ads can use rich media to incorporate video, audio, animations, buttons, forms, or other interactive elements using Java applets, HTML5, Adobe Flash, and other programs. Frame ad (traditional banner) Frame ads were the first form of web banners. The colloquial usage of "banner ads" often refers to traditional frame ads. Website publishers incorporate frame ads by setting aside a particular space on the web page. The Interactive Advertising Bureau's Ad Unit Guidelines proposes standardized pixel dimensions for ad units.[citation needed] Pop-ups/pop-unders A pop-up ad is displayed in a new web browser window that opens above a website visitor's initial browser window. A pop-under ad opens a new browser window under a website visitor's initial browser window.:22 Floating ad A floating ad, or overlay ad, is a type of rich media advertisement that appears superimposed over the requested website's content. Floating ads may disappear or become less obtrusive after a preset time period. Expanding ad An expanding ad is a rich media frame ad that changes dimensions upon a predefined condition, such as a preset amount of time a visitor spends on a webpage, the user's click on the ad, or the user's mouse movement over the ad. Expanding ads allow advertisers to fit more information into a restricted ad space. Trick banners A trick banner is a banner ad where the ad copy imitates some screen element users commonly encounter, such as an operating system message or popular application message, to induce ad clicks. Trick banners typically do not mention the advertiser in the initial ad, and thus they are a form of bait-and-switch. Trick banners commonly attract a higher-than-average click-through rate, but tricked users may resent the advertiser for deceiving them. Interstitial ads An interstitial ad displays before a user can access requested content, sometimes while the user is waiting for the content to load. Interstitial ads are a form of interruption marketing. Text ads A text ad displays text-based hyperlinks. Text-based ads may display separately from a web page's primary content, or they can be embedded by hyperlinking individual words or phrases to advertiser's websites. Text ads may also be delivered through email marketing or text message marketing. Text-based ads often render faster than graphical ads and can be harder for ad-blocking software to block.
Search Engine Marketing (SEM)

Search Engine Marketing, or SEM, is designed to increase a website's visibility in search engine results pages (SERPs). Search engines provide sponsored results and organic (non-sponsored) results based on a web searcher's query.:117 Search engines often employ visual cues to differentiate sponsored results from organic results. Search engine marketing includes all of an advertiser's actions to make a website's listing more prominent for topical keywords.
Online advertising Search Engine Optimization (SEO) Search Engine Optimization, or SEO, attempts to improve a website's organic search rankings in SERPs by increasing the website content's relevance to search terms. Search engines regularly update their algorithms to penalize poor quality sites that try to game their rankings, making optimization a moving target for advertisers. Many vendors offer SEO services.:22 Sponsored search Sponsored search (also called sponsored links or search ads) allows advertisers to be included in the sponsored results of a search for selected keywords. Search ads are often sold via real-time auctions, where advertisers bid on keywords.:118 In addition to setting a maximum price per keyword, bids may include time, language, geographical, and other constraints.:118 Search engines originally sold listings in order of highest bids.:119 Modern search engines rank sponsored listings based on a combination of bid price, expected click-through rate, keyword relevancy, and site quality.
Social media marketing

Social media marketing is commercial promotion conducted through social media websites. Many companies promote their products by posting frequent updates and providing special offers through their social media profiles.
Mobile Advertising
Mobile advertising is ad copy delivered through wireless mobile devices such as smartphones, feature phones, or tablet computers. Mobile advertising may take the form of static or rich media display ads, SMS (Short Message Service) or MMS (Multimedia Messaging Service) ads, mobile search ads, advertising within mobile websites, or ads within mobile applications or games (such as interstitial ads, advergaming, or application sponsorship).:23 Industry groups such as the Mobile Marketing Association have attempted to standardize mobile ad unit specifications, similar to the IAB's efforts for general online advertising. Mobile advertising is growing rapidly for several reasons. There are more mobile devices in the field, connectivity speeds have improved (which, among other things, allows for richer media ads to be served quickly), screen resolutions have advanced, mobile publishers are becoming more sophisticated about incorporating ads, and consumers are using mobile devices more extensively.:14 The Interactive Advertising Bureau predicts continued growth in mobile advertising with the adoption of location-based targeting and other technological features not available or relevant on personal computers.:14
Email Advertising
Email advertising is ad copy comprising an entire email or a portion of an email message.:22 Email marketing may be unsolicited, in which case the sender may give the recipient an option to opt-out of future emails, or it may be sent with the recipient's prior consent (opt-in). Chat advertising As opposed to static messaging, chat advertising refers to real time messages dropped to users on certain sites. This is done by the usage of live chat software or tracking applications installed within certain websites with the operating personnel behind the site often dropping adverts on the traffic surfing around the sites. In reality this is a subset of the email advertising but different because of its time window.
Online advertising
Online classified advertising

Online classified advertising is advertising posted online in a categorical listing of specific products or services. Examples include online job boards, online real estate listings, automotive listings, online yellow pages, and online auction-based listings.:22 Craigslist and eBay are two prominent providers of online classified listings.
Adware
Adware is software that, once installed, automatically displays advertisements on a user's computer. The ads may appear in the software itself, integrated into web pages visited by the user, or in pop-ups/pop-unders. Adware installed without the user's permission is a type of malware.
Affiliate Marketing
Affiliate marketing (sometimes called lead generation) occurs when advertisers organize third parties to generate potential customers for them. Third-party affiliates receive payment based on sales generated through their promotion.:22
Compensation Methods
Advertisers and publishers use a wide range of payment calculation methods. In 2012, advertisers calculated 32% of online advertising transactions on a cost-per-impression basis, 66% on customer performance (e.g. cost per click or cost per acquisition), and 2% on hybrids of impression and performance methods.:17
CPM (Cost Per Mille)

Cost per mille, often abbreviated to CPM, means that advertisers pay for every thousand displays of their message to potential customers (mille is the Latin word for thousand). In the online context, ad displays are usually called "impressions." Definitions of an "impression" vary among publishers, and some impressions may not be charged because they don't represent a new exposure to an actual customer. Advertisers can use technologies such as web bugs to verify if an impression is actually delivered.:59 Publishers use a variety of techniques to increase page views, such as dividing content across multiple pages, repurposing someone else's content, using sensational titles, or publishing tabloid or sexual content. CPM advertising is susceptible to "impression fraud, and advertisers who want visitors to their sites may not find per-impression payments a good proxy for the results they desire.:14
CPC (cost per click)

CPC (Cost Per Click) or PPC (Pay per click) means advertisers pay each time a user clicks on the ad. CPC advertising works well when advertisers want visitors to their sites, but it's a less accurate measurement for advertisers looking to build brand awareness. CPC's market share has grown each year since its introduction, eclipsing CPM to dominate two-thirds of all online advertising compensation methods.:18:1 Like impressions, not all recorded clicks are valuable to advertisers. GoldSpot Media reported that up to 50% of clicks on static mobile banner ads are accidental and resulted in redirected visitors leaving the new site immediately.
Online advertising
CPV (cost per view)

Cost per view video advertising. Both Google and TubeMogul endorsed this standardized CPV metric to the IAB's (Interactive Advertising Bureau)Digital Video Committee, and it's garnering a notable amount of industry support.[4]
Other performance-based compensation

CPA (Cost Per Action or Cost Per Acquisition) or PPP (Pay Per Performance) advertising means the advertiser pays for the number of users who perform a desired activity, such as completing a purchase or filling out a registration form. Performance-based compensation can also incorporate revenue sharing, where publishers earn a percentage of the advertiser's profits made as a result of the ad. Performance-based compensation shifts the risk of failed advertising onto publishers.:4, 16
Fixed cost
Fixed cost compensation means advertisers pay a fixed cost for delivery of ads online, usually over a specified time period, irrespective of the ad's visibility or users' response to it.
Benefits of Online Advertising

Cost
The low costs of electronic communication reduce the cost of displaying online advertisements compared to offline ads. Online advertising, and in particular social media, provides a low-cost means for advertisers to engage with large established communities. Advertising online offers better returns than in other media.:1
Measurability
Online advertisers can collect data on their ads' effectiveness, such as the size of the potential audience or actual audience response,:119 how a visitor reached their advertisement, whether the advertisement resulted in a sale, and whether an ad actually loaded within a visitor's view.:59 This helps online advertisers improve their ad campaigns over time.
Formatting
Advertisers have a wide variety of ways of presenting their promotional messages, including the ability to convey images, video, audio, and links. Unlike many offline ads, online ads also can be interactive. For example, some ads let users input queries or let users follow the advertiser on social media. Online ads can even incorporate games.
Targeting
Publishers can offer advertisers the ability to reach customizable and narrow market segments for targeted advertising. Online advertising may use geo-targeting to display relevant advertisements to the user's geography. Advertisers can customize each individual ad to a particular user based on the user's previous preferences. Advertisers can also track whether a visitor has already seen a particular ad in order to reduce unwanted repetitious exposures and provide adequate time gaps between exposures.
Online advertising
Coverage
Online advertising can reach nearly every global market, and online advertising influences offline sales.
Speed
Once ad design is complete, online ads can be deployed immediately. The delivery of online ads does not need to be linked to the publisher's publication schedule. Furthermore, online advertisers can modify or replace ad copy more rapidly than their offline counterparts.
Concerns
Banner blindness
Eye-tracking studies have shown that Internet users often ignore web page zones likely to contain display ads (sometimes called "banner blindness"), and this problem is worse online than in offline media. On the other hand, studies suggest that even those ads "ignored" by the users may influence the user subconsciously.
Fraud on the Advertiser

There are numerous ways that advertisers can be overcharged for their advertising. For example, click fraud occurs when a publisher or third parties click (manually or through automated means) on a CPC ad with no legitimate buying intent. For example, click fraud can occur when a competitor clicks on ads to deplete its rival's advertising budget, or when publishers attempt to manufacture revenue. Click fraud is especially associated with pornography sites. In 2011, certain scamming porn websites launched dozens of hidden pages on each visitor's computer, forcing the visitor's computer to click on hundreds of paid links without the visitor's knowledge. Like offline publications, online impression fraud can occur when publishers overstate the number of ad impressions they have delivered to their advertisers. To combat impression fraud, several publishing and advertising industry associations are developing ways to count online impressions credibly.
Technological variations
Heterogeneous clients Because users have different operating systems, web browsers and computer hardware (including mobile devices and different screen sizes), online ads may appear differently to users than the advertiser intended, or the ads may not display properly at all. A 2012 comScore study revealed that, on average, 31% of ads were not "in-view" when rendered, meaning they never had an opportunity to be seen. Rich media ads create even greater compatibility problems, as some developers may use competing (and exclusive) software to render the ads (see e.g. Comparison of HTML 5 and Flash). Furthermore, advertisers may encounter legal problems if legally required information doesn't actually display to users, even if that failure is due to technological heterogeneity.:i In the United States, the FTC has released a set of guidelines indicating that it's the advertisers' responsibility to ensure the ads display any required disclosures or disclaimers, irrespective of the users' technology.:48
Online advertising Ad-blocking Ad-blocking, or ad filtering, means the ads do not appear to the user because the user uses technology to screen out ads. Many browsers block unsolicited pop-up ads by default. Other software programs or browser add-ons may also block the loading of ads, or block elements on a page with behaviors characteristic of ads (e.g. HTML autoplay of both audio and video). Approximately 9% of all online page views come from browsers with ad-blocking software installed, and some publishers have 40%+ of their visitors using ad-blockers. Anti-targeting technologies Some web browsers offer privacy modes where users can hide information about themselves from publishers and advertisers. Among other consequences, advertisers can't use cookies to serve targeted ads to private browsers. Most major browsers have incorporated Do Not Track options into their browser headers, but the regulations currently are only enforced by the honor system.
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Privacy Concerns
The collection of user information by publishers and advertisers has raised consumer concerns about their privacy. Sixty percent of Internet users would use Do Not Track technology to block all collection of information if given the opportunity. Over half of all Google and Facebook users are concerned about their privacy when using Google and Facebook, according to Gallup. Many consumers have reservations about by online behavioral targeting. By tracking users' online activities, advertisers are able to understand consumers quite well. Advertisers often use technology, such as web bugs and respawning cookies, to maximizing their abilities to track consumers.:60 According to a 2011 survey conducted by Harris Interactive, over half of Internet users had a negative impression of online behavioral advertising, and forty percent feared that their personally-identifiable information had been shared with advertisers without their consent. Consumers can be especially troubled by advertisers targeting them based on sensitive information, such as financial or health status.
Trustworthiness of advertisers
Scammers can take advantage of consumers' difficulties verifying an online persona's identity,:1 leading to artifices like phishing (where scam emails look identical to those from a well-known brand owner) and confidence schemes like the Nigerian "419" scam. The Internet Crime Complaint Center received 289,874 complaints in 2012, totaling over half a billion dollars in losses, most of which originated with scam ads. Consumers also face malware risks when interacting with online advertising. Cisco's 2013 Annual Security Report revealed that clicking on ads was 182 times more likely to install a virus on a user's computer than surfing the Internet for porn.
Spam
The Internet's low cost of disseminating advertising contributes to spam, especially by large-scale spammers. Numerous efforts have been undertaken to combat spam, ranging from blacklists to regulatorily-required labeling to content filters, but most of those efforts have adverse collateral effects, such as mistaken filtering.
Regulation
In general, consumer protection laws apply equally to online and offline activities.:i However, there are questions over which jurisdiction's laws apply and which regulatory agencies have enforcement authority over transborder activity.
Online advertising As with offline advertising, industry participants have undertaken numerous efforts to self-regulate and develop industry standards or codes of conduct. Several United States advertising industry organizations jointly published Self-Regulatory Principles for Online Behavioral Advertising based on standards proposed by the FTC in 2009. European ad associations published a similar document in 2011. Primary tenets of both documents include consumer control of data transfer to third parties, data security, and consent for collection of certain health and financial data.:24 Neither framework, however, penalizes violators of the codes of conduct.
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Privacy and Data Collection

Privacy regulation can require users' consent before an advertiser can track the user or communicate with the user. However, affirmative consent ("opt in") can be difficult and expensive to obtain.:60 Industry participants often prefer other regulatory schemes. Different jurisdictions have taken different approaches to privacy issues with advertising. The United States has specific restrictions on online tracking of children in the Children's Online Privacy Protection Act (COPPA),:1617 and the FTC has recently expanded its interpretation of COPPA to include requiring ad networks to obtain parental consent before knowingly tracking kids. Otherwise, the U.S. Federal Trade Commission frequently supports industry self-regulation, although increasingly it has been undertaking enforcement actions related to online privacy and security. The FTC has also been pushing for industry consensus about possible Do Not Track legislation. In contrast, the European Union's "Privacy and Electronic Communications Directive" restricts websites' ability to use consumer data much more comprehensively. The EU limitations restrict targeting by online advertisers; researchers have estimated online advertising effectiveness decreases on average by around 65% in Europe relative to the rest of the world.:58
Delivery methods
Many laws specifically regulate the ways online ads are delivered. For example, online advertising delivered via email is more regulated than the same ad content delivered via banner ads. Among other restrictions, the U.S. CAN-SPAM Act of 2003 requires that any commercial email provide an opt-out mechanism. Similarly, mobile advertising is governed by the Telephone Consumer Protection Act of 1991 (TCPA), which (among other restrictions) requires user opt-in before sending advertising via text messaging.
References
[1] [2] [3] [4] http:/ / en. wikipedia. org/ w/ index. php?title=Template:Internet_marketing& action=edit http:/ / en. wikipedia. org/ w/ index. php?title=Template:E-commerce& action=edit http:/ / en. wikipedia. org/ w/ index. php?title=Template:Marketing& action=edit http:/ / www. mediapost. com/ publications/ article/ 151287/ cost-per-view-pricing-for-digital-video-what-woul. html
Search engine optimization
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Search engine optimization (SEO) is the process of affecting the visibility of a website or a web page in a search engine's "natural" or un-paid ("organic") search results. In general, the earlier (or higher ranked on the search results page), and more frequently a site appears in the search results list, the more visitors it will receive from the search engine's users. SEO may target different kinds of search, including image search, local search, video search, academic search, news search and industry-specific vertical search engines. As an Internet marketing strategy, SEO considers how search engines work, what people search for, the actual search terms or keywords typed into search engines and which search engines are preferred by their targeted audience. Optimizing a website may involve editing its content, HTML and associated coding to both increase its relevance to specific keywords and to remove barriers to the indexing activities of search engines. Promoting a site to increase the number of backlinks, or inbound links, is another SEO tactic. The plural of the abbreviation SEO can also refer to "search engine optimizers", those who provide SEO services.
History
Webmasters and content providers began optimizing sites for search engines in the mid-1990s, as the first search engines were cataloging the early Web. Initially, all webmasters needed to do was to submit the address of a page, or URL, to the various engines which would send a "spider" to "crawl" that page, extract links to other pages from it, and return information found on the page to be indexed. The process involves a search engine spider downloading a page and storing it on the search engine's own server, where a second program, known as an indexer, extracts various
Search engine optimization information about the page, such as the words it contains and where these are located, as well as any weight for specific words, and all links the page contains, which are then placed into a scheduler for crawling at a later date. Site owners started to recognize the value of having their sites highly ranked and visible in search engine results, creating an opportunity for both white hat and black hat SEO practitioners. According to industry analyst Danny Sullivan, the phrase "search engine optimization" probably came into use in 1997.[1] The first documented use of the term Search Engine Optimization was John Audette and his company Multimedia Marketing Group as documented by a web page from the MMG site from August, 1997. Early versions of search algorithms relied on webmaster-provided information such as the keyword meta tag, or index files in engines like ALIWEB. Meta tags provide a guide to each page's content. Using meta data to index pages was found to be less than reliable, however, because the webmaster's choice of keywords in the meta tag could potentially be an inaccurate representation of the site's actual content. Inaccurate, incomplete, and inconsistent data in meta tags could and did cause pages to rank for irrelevant searches.Wikipedia:Disputed statement Web content providers also manipulated a number of attributes within the HTML source of a page in an attempt to rank well in search engines. By relying so much on factors such as keyword density which were exclusively within a webmaster's control, early search engines suffered from abuse and ranking manipulation. To provide better results to their users, search engines had to adapt to ensure their results pages showed the most relevant search results, rather than unrelated pages stuffed with numerous keywords by unscrupulous webmasters. Since the success and popularity of a search engine is determined by its ability to produce the most relevant results to any given search, poor quality or irrelevant search results could lead users to find other search sources. Search engines responded by developing more complex ranking algorithms, taking into account additional factors that were more difficult for webmasters to manipulate. Graduate students at Stanford University, Larry Page and Sergey Brin, developed "Backrub," a search engine that relied on a mathematical algorithm to rate the prominence of web pages. The number calculated by the algorithm, PageRank, is a function of the quantity and strength of inbound links. PageRank estimates the likelihood that a given page will be reached by a web user who randomly surfs the web, and follows links from one page to another. In effect, this means that some links are stronger than others, as a higher PageRank page is more likely to be reached by the random surfer. Page and Brin founded Google in 1998. Google attracted a loyal following among the growing number of Internet users, who liked its simple design. Off-page factors (such as PageRank and hyperlink analysis) were considered as well as on-page factors (such as keyword frequency, meta tags, headings, links and site structure) to enable Google to avoid the kind of manipulation seen in search engines that only considered on-page factors for their rankings. Although PageRank was more difficult to game, webmasters had already developed link building tools and schemes to influence the Inktomi search engine, and these methods proved similarly applicable to gaming PageRank. Many sites focused on exchanging, buying, and selling links, often on a massive scale. Some of these schemes, or link farms, involved the creation of thousands of sites for the sole purpose of link spamming. By 2004, search engines had incorporated a wide range of undisclosed factors in their ranking algorithms to reduce the impact of link manipulation. In June 2007, The New York Times' Saul Hansell stated Google ranks sites using more than 200 different signals. The leading search engines, Google, Bing, and Yahoo, do not disclose the algorithms they use to rank pages. Some SEO practitioners have studied different approaches to search engine optimization, and have shared their personal opinions Patents related to search engines can provide information to better understand search engines. In 2005, Google began personalizing search results for each user. Depending on their history of previous searches, Google crafted results for logged in users. In 2008, Bruce Clay said that "ranking is dead" because of personalized search. He opined that it would become meaningless to discuss how a website ranked, because its rank would potentially be different for each user and each search.
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Search engine optimization In 2007, Google announced a campaign against paid links that transfer PageRank. On June 15, 2009, Google disclosed that they had taken measures to mitigate the effects of PageRank sculpting by use of the nofollow attribute on links. Matt Cutts, a well-known software engineer at Google, announced that Google Bot would no longer treat nofollowed links in the same way, in order to prevent SEO service providers from using nofollow for PageRank sculpting. As a result of this change the usage of nofollow leads to evaporation of pagerank. In order to avoid the above, SEO engineers developed alternative techniques that replace nofollowed tags with obfuscated Javascript and thus permit PageRank sculpting. Additionally several solutions have been suggested that include the usage of iframes, Flash and Javascript. In December 2009, Google announced it would be using the web search history of all its users in order to populate search results. Google Instant, real-time-search, was introduced in late 2010 in an attempt to make search results more timely and relevant. Historically site administrators have spent months or even years optimizing a website to increase search rankings. With the growth in popularity of social media sites and blogs the leading engines made changes to their algorithms to allow fresh content to rank quickly within the search results. In February 2011, Google announced the Panda update, which penalizes websites containing content duplicated from other websites and sources. Historically websites have copied content from one another and benefited in search engine rankings by engaging in this practice, however Google implemented a new system which punishes sites whose content is not unique. In April 2012, Google launched the Google Penguin update the goal of which was to penalize websites that used manipulative techniques to improve their rankings on the search engine. In September 2013, Google released the Google Hummingbird update, an algorithm change designed to improve Google's natural language processing and semantic understanding of web pages.
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Relationship with search engines

By 1997, search engine designers recognized that webmasters were making efforts to rank well in their search engines, and that some webmasters were even manipulating their rankings in search results by stuffing pages with excessive or irrelevant keywords. Early search engines, such as Altavista and Infoseek, adjusted their algorithms in an effort to prevent webmasters from manipulating rankings. In 2005, an annual conference, AIRWeb, Adversarial Information Retrieval on the Web was created to bring together practitioners and researchers concerned with search engine optimisation and related topics.
Yahoo and Google offices
Companies that employ overly aggressive techniques can get their client websites banned from the search results. In 2005, the Wall Street Journal reported on a company, Traffic Power, which allegedly used high-risk techniques and failed to disclose those risks to its clients. Wired magazine reported that the same company sued blogger and SEO Aaron Wall for writing about the ban. Google's Matt Cutts later confirmed that Google did in fact ban Traffic Power and some of its clients. Some search engines have also reached out to the SEO industry, and are frequent sponsors and guests at SEO conferences, chats, and seminars. Major search engines provide information and guidelines to help with site optimization. Google has a Sitemaps program to help webmasters learn if Google is having any problems indexing their website and also provides data on Google traffic to the website. Bing Webmaster Tools provides a way for webmasters to submit a sitemap and web feeds, allows users to determine the crawl rate, and track the web pages index status.
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Methods
Getting indexed
The leading search engines, such as Google, Bing and Yahoo!, use crawlers to find pages for their algorithmic search results. Pages that are linked from other search engine indexed pages do not need to be submitted because they are found automatically. Two major directories, the Yahoo Directory and the Open Directory Project both require manual submission and human editorial review. Google offers Google Webmaster Tools, for which an XML Sitemap feed can be created and submitted for free to ensure that all pages are found, especially pages that are not discoverable by automatically following links. Yahoo! formerly operated a paid submission service that guaranteed crawling for a cost per click; this was discontinued in 2009. Search engine crawlers may look at a number of different factors when crawling a site. Not every page is indexed by the search engines. Distance of pages from the root directory of a site may also be a factor in whether or not pages get crawled.
Preventing crawling
To avoid undesirable content in the search indexes, webmasters can instruct spiders not to crawl certain files or directories through the standard robots.txt file in the root directory of the domain. Additionally, a page can be explicitly excluded from a search engine's database by using a meta tag specific to robots. When a search engine visits a site, the robots.txt located in the root directory is the first file crawled. The robots.txt file is then parsed, and will instruct the robot as to which pages are not to be crawled. As a search engine crawler may keep a cached copy of this file, it may on occasion crawl pages a webmaster does not wish crawled. Pages typically prevented from being crawled include login specific pages such as shopping carts and user-specific content such as search results from internal searches. In March 2007, Google warned webmasters that they should prevent indexing of internal search results because those pages are considered search spam.
Increasing prominence
A variety of methods can increase the prominence of a webpage within the search results. Cross linking between pages of the same website to provide more links to most important pages may improve its visibility. Writing content that includes frequently searched keyword phrase, so as to be relevant to a wide variety of search queries will tend to increase traffic. Updating content so as to keep search engines crawling back frequently can give additional weight to a site. Adding relevant keywords to a web page's meta data, including the title tag and meta description, will tend to improve the relevancy of a site's search listings, thus increasing traffic. URL normalization of web pages accessible via multiple urls, using the canonical link element or via 301 redirects can help make sure links to different versions of the url all count towards the page's link popularity score.
White hat versus black hat techniques

SEO techniques can be classified into two broad categories: techniques that search engines recommend as part of good design, and those techniques of which search engines do not approve. The search engines attempt to minimize the effect of the latter, among them spamdexing. Industry commentators have classified these methods, and the practitioners who employ them, as either white hat SEO, or black hat SEO. White hats tend to produce results that last a long time, whereas black hats anticipate that their sites may eventually be banned either temporarily or permanently once the search engines discover what they are doing. An SEO technique is considered white hat if it conforms to the search engines' guidelines and involves no deception. As the search engine guidelines are not written as a series of rules or commandments, this is an important distinction to note. White hat SEO is not just about following guidelines, but is about ensuring that the content a search engine
Search engine optimization indexes and subsequently ranks is the same content a user will see. White hat advice is generally summed up as creating content for users, not for search engines, and then making that content easily accessible to the spiders, rather than attempting to trick the algorithm from its intended purpose. White hat SEO is in many ways similar to web development that promotes accessibility, although the two are not identical. Black hat SEO attempts to improve rankings in ways that are disapproved of by the search engines, or involve deception. One black hat technique uses text that is hidden, either as text colored similar to the background, in an invisible div, or positioned off screen. Another method gives a different page depending on whether the page is being requested by a human visitor or a search engine, a technique known as cloaking. Search engines may penalize sites they discover using black hat methods, either by reducing their rankings or eliminating their listings from their databases altogether. Such penalties can be applied either automatically by the search engines' algorithms, or by a manual site review. One example was the February 2006 Google removal of both BMW Germany and Ricoh Germany for use of deceptive practices. Both companies, however, quickly apologized, fixed the offending pages, and were restored to Google's list.
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As a marketing strategy
SEO is not an appropriate strategy for every website, and other Internet marketing strategies can be more effective like paid advertising through PPC campaigns, depending on the site operator's goals. A successful Internet marketing campaign may also depend upon building high quality web pages to engage and persuade, setting up analytics programs to enable site owners to measure results, and improving a site's conversion rate. SEO may generate an adequate return on investment. However, search engines are not paid for organic search traffic, their algorithms change, and there are no guarantees of continued referrals. Due to this lack of guarantees and certainty, a business that relies heavily on search engine traffic can suffer major losses if the search engines stop sending visitors. Search engines can change their algorithms, impacting a website's placement, possibly resulting in a serious loss of traffic. According to Google's CEO, Eric Schmidt, in 2010, Google made over 500 algorithm changes almost 1.5 per day. It is considered wise business practice for website operators to liberate themselves from dependence on search engine traffic.
International markets
Optimization techniques are highly tuned to the dominant search engines in the target market. The search engines' market shares vary from market to market, as does competition. In 2003, Danny Sullivan stated that Google represented about 75% of all searches. In markets outside the United States, Google's share is often larger, and Google remains the dominant search engine worldwide as of 2007. As of 2006, Google had an 8590% market share in Germany. While there were hundreds of SEO firms in the US at that time, there were only about five in Germany. As of June 2008, the marketshare of Google in the UK was close to 90% according to Hitwise. That market share is achieved in a number of countries. As of 2009, there are only a few large markets where Google is not the leading search engine. In most cases, when Google is not leading in a given market, it is lagging behind a local player. The most notable example markets are China, Japan, South Korea, Russia and the Czech Republic where respectively Baidu, Yahoo! Japan, Naver, Yandex and Seznam are market leaders. Successful search optimization for international markets may require professional translation of web pages, registration of a domain name with a top level domain in the target market, and web hosting that provides a local IP address. Otherwise, the fundamental elements of search optimization are essentially the same, regardless of language.
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Legal precedents
On October 17, 2002, SearchKing filed suit in the United States District Court, Western District of Oklahoma, against the search engine Google. SearchKing's claim was that Google's tactics to prevent spamdexing constituted a tortious interference with contractual relations. On May 27, 2003, the court granted Google's motion to dismiss the complaint because SearchKing "failed to state a claim upon which relief may be granted." In March 2006, KinderStart filed a lawsuit against Google over search engine rankings. Kinderstart's website was removed from Google's index prior to the lawsuit and the amount of traffic to the site dropped by 70%. On March 16, 2007 the United States District Court for the Northern District of California (San Jose Division) dismissed KinderStart's complaint without leave to amend, and partially granted Google's motion for Rule 11 sanctions against KinderStart's attorney, requiring him to pay part of Google's legal expenses.
Notes
[1] See Google groups thread (http:/ / groups. google. com/ group/ alt. current-events. net-abuse. spam/ browse_thread/ thread/ 6fee2777dc17b8ab/ 3858bff94e56aff3?lnk=st& q="search+ engine+ optimization"& rnum=1#3858bff94e56aff3).
External links
Google Webmaster Guidelines (http://support.google.com/webmasters/bin/answer.py?hl=en& answer=35769) Yahoo! Webmaster Guidelines (http://help.yahoo.com/kb/index?locale=en_US&page=content& y=PROD_SRCH&id=SLN2245) Bing Webmaster Guidelines (http://www.bing.com/webmaster/help/webmaster-guidelines-30fba23a) " The Dirty Little Secrets of Search (http://www.nytimes.com/2011/02/13/business/13search.html)," article in The New York Times (February 12, 2011) Google I/O 2010 SEO site advice from the experts (https://www.youtube.com/watch?v=7Hk5uVv8JpM) on YouTube Technical tutorial on search engine optimization, given at Google I/O 2010.
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Part of a series on
Internet marketing

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Social media marketing refers to the process of gaining website traffic or attention through social media sites. Social media marketing programs usually center on efforts to create content that attracts attention and encourages readers to share it with their social networks. The resulting electronic word of mouth (eWoM) refers to any statement consumers share via the Internet (e.g., web sites, social networks, instant messages, news feeds) about an event, product, service, brand or company. When the underlying message spreads from user to user and presumably resonates because it appears to come from a trusted, third-party source, as opposed to the brand or company itself, this form of marketing results in earned media rather than paid media.[1]
Social media platforms

Social networking websites
Social networking websites allow individuals to interact with one another and build relationships. When companies join the social channels, consumers can interact with them and they can communicate with consumers directly. That interaction feels more personal to users than traditional methods of strictly outbound marketing & advertising. Social networking sites and blogs allow individual followers to retweet or repost comments made by the product being promoted. By repeating the message, all of the users connections are able to see the message, therefore reaching more people. Social networking sites act as word of mouth. Because the information about the product is being put out there and is getting repeated, more traffic is brought to the product/company.
Social media marketing Through social networking sites, companies can interact with individual followers. This personal interaction can instill a feeling of loyalty into followers and potential customers. Also, by choosing whom to follow on these sites, products can reach a very narrow target audience. Social networking sites also include a vast amount of information about what products and services prospective clients might be interested in. Through the use of new Semantic Analysis technologies, marketers can detect buying signals, such as content shared by people and questions posted online. Understanding of buying signals can help sales people target relevant prospects and marketers run micro-targeted campaigns.
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Mobile phones
Mobile phone usage has also become beneficial for social media marketing. Today, many cell phones have social networking capabilities: individuals are notified of any happenings on social networking sites through their cell phones, in real-time. This constant connection to social networking sites means products and companies can constantly remind and update followers about their capabilities, uses, importance, etc. Because cell phones are connected to social networking sites, advertisements are always in sight. Also many companies are now putting QR codes along with products for individuals to access the company website or online services with their smart-phones.
Engagement
In the context of the social web, engagement means that customers and stakeholders are participants rather than viewers. Social media in business allows anyone and everyone to express and share an opinion or an idea somewhere along the businesss path to market. Each participating customer becomes part of the marketing department, as other customers read their comments or reviews. The engagement process is then fundamental to successful social media marketing.
Campaigns
Betty White
Social networking sites can have a large impact on the outcome of events. In 2010, a Facebook campaign surfaced in the form of a petition. Users virtually signed a petition asking NBC Universal to have actress Betty White host Saturday Night Live. Once signed, users forwarded the petition to all of their followers. The petition went viral and on May 8, 2010, Betty White hosted SNL.
2008 US presidential election

The 2008 US presidential campaign had a huge presence on social networking sites. Barack Obama, a Democratic candidate for US President, used Twitter and Facebook to differentiate his campaign. His social networking profile pages were constantly being updated and interacting with followers. The use of social networking sites gave Barack Obamas campaign access to e-mail addresses, as posted on social network profile pages. This allowed the Democratic Party to launch e-mail campaigns asking for votes and campaign donations.
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Local businesses
Small businesses also use social networking sites as a promotional technique. Businesses can follow individuals social networking site uses in the local area and advertise specials and deals. These can be exclusive and in the form of get a free drink with a copy of this tweet. This type of message encourages other locals to follow the business on the sites in order to obtain the promotional deal. In the process, the business is getting seen and promoting itself (brand visibility).
Kony 2012
A short film released on March 5, 2012, by humanitarian group Invisible Children, Inc. This 29 minute video aimed at making Joseph Kony, an International Criminal Court fugitive, famous worldwide in order to have support for his arrest by December 2012; the time when the campaign ends. The video went viral within the first six days after its launch, reaching 100 million views on both Youtube and Vimeo. According to research done by Visible Measures [2] , the Kony 2012 short film became the fastest growing video campaign, and most viral video, to reach 100 million views in 6 days followed by Susan Boyle performance on Britains Got Talent that reached 70 million views in 6 days.
Nike #MakeItCount
In early 2012, Nike introduced it's Make It Count social media campaign. The campaign kickoff began Youtubers Casey Neistat and Max Joseph launching a Youtube video, where they traveled 34,000 miles to visit 16 cities in 13 countries. They promoted the #makeitcount hashtag, which millions of consumers shared via Twitter and Instagram by uploading photos and sending tweets. The #MakeItCount Youtube video went viral and Nike saw an 18% increase in profit in 2012, the year this product was released.
Tactics
Twitter
Twitter allows companies to promote their products on an individual level. The use of a product can be explained in short messages that followers are more likely to read. These messages appear on followers home pages. Messages can link to the products website, Facebook profile, photos, videos, etc. This link provides followers the opportunity to spend more time interacting with the product online. This interaction can create a loyal connection between product and individual and can also lead to larger advertising opportunities. Twitter promotes a product in real-time and brings customers in.
Facebook
Facebook pages are far more detailed than Twitter accounts. They allow a product to provide videos, photos, and longer descriptions. Videos can show when a product can be used as well as how to use it. These also can include testimonials as other followers can comment on the product pages for others to see. Facebook can link back to the products Twitter page as well as send out event reminders. Facebook promotes a product in real-time and brings customers in. As marketers see more value in social media marketing, advertisers continue to increase sequential ad spend in social by 25%. Strategies to extend the reach with Sponsored Stories and acquire new fans with Facebook ads contribute to an uptick in spending across the site. The study attributes 84% of "engagement" or clicks to Likes that link back to Facebook advertising. Today, brands increase fan counts on average of 9% monthly, increasing their fan base by two-times the amount annually.
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Google+
Google+, in addition to providing pages and some features of Facebook, is also able to integrate with the Google search engine. Other Google products are also integrated, such as Google Adwords and Google Maps. With the development of Google Personalized Search and other location-based search services, Google+ allows for targeted advertising methods, navigation services, and other forms of location-based marketing and promotion.
LinkedIn
LinkedIn, a professional business-related networking site, allows companies to create professional profiles for themselves as well as their business to network and meet others. Through the use of widgets, members can promote their various social networking activities, such as Twitter stream or blog entries of their product pages, onto their LinkedIn profile page. LinkedIn provides its members the opportunity to generate sales leads and business partners. Members can use Company Pages similar to Facebook pages to create an area that will allow business owners to promote their products or services and be able to interact with their customers. Due to spread of spam mail sent to job seeker, leading companies prefer to use LinkedIn for employee's recruitment instead using different job portals. Additionally, companies have voiced a preference for the amount of information that can be gleaned from LinkedIn profile, versus a limited email.[3]
Yelp
Yelp consists of a comprehensive online index of business profiles. Businesses are searchable by location, similar to Yellow Pages. The website is operational in seven different countries, including the United States and Canada. Business account holders are allowed to create, share, and edit business profiles. They may post information such as the business location, contact information, pictures, and service information. The website further allows individuals to write, post reviews about businesses and rate them on a five-point scale. Messaging and talk features are further made available for general members of the website, serving to guide thoughts and opinions.
Foursquare
Foursquare is a location based social networking website, where users can check into locations via their smartphones. Foursquare allows businesses to create a page or create a new/claim an existing venue. A good marketing strategy for businesses to increase footfall or retain loyal customers includes offering incentives such as discounts or free food/beverages for people checking into their location or special privileges for the mayor of that location.
Instagram
Instagram is a free photo and video-sharing program and social network that was launched in October 2010. The service enables users to take a photo or video, apply a digital filter to it, and then share it with other Instagram users they are connected to on the social network as well as on a variety of social networking services.[4] Instagram debuted as a photo sharing network but implemented support for video on June 2013.[5] As of June 2013, Instagram had 130 million monthly active users.[6]
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YouTube
YouTube is another popular avenue; advertisements are done in a way to suit the target audience. The type of language used in the commercials and the ideas used to promote the product reflect the audience's style and taste. Also, the ads on this platform are usually in sync with the content of the video requested, this is another advantage YouTube brings for advertisers. Certain ads are presented with certain videos since the content is relevant. Promotional opportunities such as sponsoring a video is also possible on YouTube, for example, a user who searches for a YouTube video on dog training may be presented with a sponsored video from a dog toy company in results along with other videos.Youtube also enable publishers to earn money through Youtube Partner Program.
Delicious, Digg and Reddit

Delicious, Digg and Reddit are also popular social marketing sites used in social media promotion. They are heavily used by the social media marketers to promote their websites due to their ability to share links.
Blogs
Platforms like LinkedIn create an environment for companies and clients to connect online. Companies that recognize the need for information, originality, and accessibility employ blogs to make their products popular and unique, and ultimately reach out to consumers who are privy to social media. Blogs allow a product or company to provide longer descriptions of products or services, can include testimonials and can link to and from other social network and blog pages. Blogs can be updated frequently and are promotional techniques for keeping customers, and also for acquiring followers and subscribers who can then be directed to social network pages. Online communities can enable a business to reach the clients of other businesses using the platform. To allow firms to measure their standing in the corporate world, sites like Glassdoor enable employees to place evaluations of their companies. Some businesses opt out of integrating social media platforms into their traditional marketing regimen. There are also specific corporate standards that apply when interacting online. To maintain an advantage in a business-consumer relationship, businesses have to be aware of four key assets that consumers maintain: information, involvement, community, and control.
Marketing techniques
Targeting, COBRAs, and eWOM
Social media marketing involves the use of social networks, COBRAs and eWOM to successfully advertise online. Social networks such as Facebook and Twitter provide advertisers with information about the likes and dislikes of their consumers. This technique is crucial, as it provides the businesses with a target audience. With social networks, information relevant to the users likes is available to businesses; who then advertise accordingly. Consumers online brand related activities (COBRAs) is another method used by advertisers to promote their products. Activities such as uploading a picture of your new Converse sneakers to Facebook is an example of a COBRA. Another technique for social media marketing is electronic word of mouth (eWOM). Electronic recommendations and appraisals are a convenient manner to have a product promoted via consumer-to-consumer interactions. An example of eWOM would be an online hotel review; the hotel company can have two possible outcomes based on their service. A good service would result in a positive review which gets the hotel free advertising via social media, however a poor service will result in a negative consumer review which can potentially ruin the company's reputation.
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Social media marketing tools

Besides research tools, various companies provide specialized platforms and tools for social media marketing: Social media measurement Social network aggregation Social bookmarking Social analytics Automation Social media Blog marketing Validation Brand ambassador
Implications on traditional advertising

Minimizing use
Traditional advertising techniques include print and television advertising. The Internet has already overtaken television as the largest advertising market.[citation needed] Websites often include banner or pop-up ads. Social networking sites dont always have ads. In exchange, products have entire pages and are able to interact with users. Television commercials often end with a spokesperson asking viewers to check out the product website for more information. Print ads are also starting to include QR Codes on them. These QR codes can be scanned by cell phones and computers, sending viewers to the product website. Advertising is beginning to move viewers from the traditional outlets to the electronic ones.
Leaks
Internet and social networking leaks are one of the issues facing traditional advertising. Video and print ads are often leaked to the world via the Internet earlier than they are scheduled to premiere. Social networking sites allow those leaks to go viral, and be seen by many users more quickly. Time difference is also a problem facing traditional advertisers. When social events occur and are broadcast on television, there is often a time delay between airings on the east coast and west coast of the United States. Social networking sites have become a hub of comment and interaction concerning the event. This allows individuals watching the event on the west coast (time-delayed) to know the outcome before it airs. The 2011 Grammy Awards highlighted this problem. Viewers on the west coast learned who won different awards based on comments made on social networking sites by individuals watching live on the east coast. Since viewers knew who won already, many tuned out and ratings were lower. All the advertisement and promotion put into the event was lost because viewers didnt have a reason to watch. Wikipedia:Avoid weasel words
Social media marketing mishaps

Social media marketing provides organizations with a way to connect with their customers. However, organizations must protect their information as well as closely watch comments and concerns on the social media they use. A flash poll done on 1225 IT executives from 33 countries revealed that social media mishaps caused organizations a combined $4.3 million in damages in 2010. The top three social media incidents an organization faced during the previous year included employees sharing too much information in public forums, loss or exposure of confidential information, and increased exposure to litigation. Due to the viral nature of the internet, a mistake by a single employee has in some cases shown to result in devastating consequences for organizations.
Social media marketing An example of a social media mishap includes designer Kenneth Cole's Twitter mishap in 2011. When Kenneth Cole tweeted, "Millions are in uproar in #Cairo. Rumor is they heard our new spring collection is now available online at [Kenneth Cole's website]".[7] This reference to the 2011 Egyptian Revolution drew objection from the public; it was widely objected to on the Internet. Kenneth Cole realized his mistake shortly after and responded with a statement apologizing for the tweet.[8] Numerous additional online marketing mishap examples exist. Examples include a YouTube video of a Domino's Pizza employee doing unspeakable things to pizza ingredients, which went viral on the internet. A Twitter hashtag posted by McDonald's in 2012 attracting attention due to numerous complaints and negative events customers experienced at the chain store; and a 2011 tweet posted by a Chrysler Group employee that no one in Detroit knows how to drive.[9] When the Link REIT opened a Facebook page to recommend old-style restaurants, the page was flooded by furious comments criticising the REIT for having forced a lot of restaurants and stores to shut down; it had to terminate its campaign early amid further deterioration of its corporate image.[10]
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References
[1] How Social Media Is Changing Paid, Earned & Owned Media (http:/ / mashable. com/ 2011/ 06/ 23/ paid-earned-owned-media/ ). Mashable.com (2011-06-23). Retrieved on 2013-07-28. [2] http:/ / www. visiblemeasures. com/ [3] Caravella, Andrew. " Four Functions of Social Media Guide (http:/ / downloads. sproutsocial. com/ Sprout-2013-Four-Functions-Guide. pdf)." Retrieved 15 August 2013. [4] What Is Instagram? (http:/ / www. businessinsider. com/ instagram-2010-11). Business Insider (2010-11-01). Retrieved on 2013-01-11. [5] Introducing Video on Instagram (http:/ / blog. instagram. com/ post/ 53448889009/ video-on-instagram). blog.instagram.com (2013-06-20). Retrieved on 2013-07-02. [6] Instagram Has 130 Million Monthly Active Users (http:/ / mashable. com/ 2013/ 06/ 20/ instagram-130-million-users/ ). Mashable.com (2013-06-20). Retrieved on 2013-07-02. [7] Twitter account dedicated to poke fun at Kenneth Cole for #Cairo tweet (http:/ / www. ibtimes. com/ articles/ 108811/ 20110204/ kenneth-cole-tweets-egypt-cairo-politically-incorrect-inappropriate-kc-pr-twitter-facebook-apology-h. htm). Ibtimes.com (2011-02-04). Retrieved on 2013-01-11. [8] Kenneth Coles Twitter Fail PRNewser (http:/ / www. mediabistro. com/ prnewser/ kenneth-coles-twitter-fail_b14367). Mediabistro.com (2011-02-03). Retrieved on 2013-01-11. [9] High price to be paid for controversial social-media mishaps (http:/ / www. sfgate. com/ cgi-bin/ article. cgi?f=/ c/ a/ 2011/ 03/ 16/ BUA61ID19P. DTL) San Francisco Chronicle March 17, 2011, retrieved April 4, 2012 [10] (The Link terminates its search for "old tastes": How to improve online corporate image (http:/ / lifestyle. etnet. com. hk/ column/ index. php/ management/ executive/ 10010?locdes=content), Hong Kong Economic Times April 20, 2012, retrieved April 25, 2012
External links
Library resources about social media marketing

Online books (http://tools.wmflabs.org/ftl/cgi-bin/ftl?st=wp&su=Social+media+marketing&library=OLBP) Resources in your library (http://tools.wmflabs.org/ftl/cgi-bin/ftl?st=wp&su=Social+media+marketing) Resources in other libraries (http://tools.wmflabs.org/ftl/cgi-bin/ftl?st=wp&su=Social+media+marketing&library=0CHOOSE0)
Kang, Juhee (2011). Social media marketing in the hospitality industry: The role of benefits in increasing brand community participation and the impact of participation on consumer trust and commitment toward hotel and restaurant brands (http://lib.dr.iastate.edu/etd/10447/) (dissertation). Iowa State University. Retrieved 8 February 2013.
Email marketing
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Email marketing
Part of a series on
Internet marketing

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Electronic marketing is directly marketing a commercial message to a group of people using email. In its broadest sense, every email sent to a potential or current customer could be considered email marketing. It usually involves using email to send ads, request business, or solicit sales or donations, and is meant to build loyalty, trust, or brand awareness. Email marketing can be done to either sold lists or current customer database. Broadly, the term is usually used to refer to: Sending email messages with the purpose of enhancing the relationship of a merchant with its current or previous customers, to encourage customer loyalty and repeat business. Sending email messages with the purpose of acquiring new customers or convincing current customers to purchase something immediately. Adding advertisements to email messages sent by other companies to their customers. Researchers estimate that United States firms alone spent US $1.51 billion on email marketing in 2011 and will grow to $2.468 billion by 2016.[1]
Email marketing
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Types of email marketing

Email marketing can be carried out through different types of emails:
Transactional emails
Transactional emails are usually triggered based on a customers action with a company. Triggered transactional messages include dropped basket messages, purchase or order confirmation emails and email receipts. The primary purpose of a transactional email is to convey information regarding the action that triggered it. But, due to its high open rates (51.3% compared to 36.6% for email newsletters) transactional emails are a golden opportunity to engage customers; to introduce or extend the email relationship with customers or subscribers, to anticipate and answer questions or to cross-sell or up-sell products or services.[2]Wikipedia:Identifying reliable sources Many email newsletter software vendors offer transactional email support, which gives companies the ability to include promotional messages within the body of transactional emails. There are also software vendors that offer specialized transactional email marketing services, which include providing targeted and personalized transactional email messages and running specific marketing campaigns (such as customer referral programs).
Direct emails
Direct email involves sending an email solely to communicate a promotional message (for example, an announcement of a special offer or a catalog of products). Companies usually collect a list of customer or prospect email addresses to send direct promotional messages to, or they can also rent a list of email addresses from service companies.
Comparison to traditional mail

There are both advantages and disadvantages to using email marketing in comparison to traditional advertising mail.
Advantages
Email marketing (on the Internet) is popular with companies for several reasons: Email's immediacy reduces delays in communication, allowing businesses to run more smoothly. An exact return on investment can be tracked ("track to basket") and has proven to be high when done properly. Email marketing is often reported as second only to search marketing as the most effective online marketing tactic.[3] Email Marketing is significantly cheaper and faster than traditional mail, mainly because of high cost and time required in a traditional mail campaign for producing the artwork, printing, addressing and mailing. Advertisers can reach substantial numbers of email subscribers who have opted in (i.e., consented) to receive email communications on subjects of interest to them. Almost half of American Internet users check or send email on a typical day,[4] with email blasts that are delivered between 1 am and 5 am local time outperforming those sent at other times in open and click rates.[5][6] Email is popular with digital marketers, rising an estimated 15% in 2009 to 292m in the UK.[7]
Email marketing
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Disadvantages
A report issued by the email services company Return Path, as of mid-2008 email deliverability is still an issue for legitimate marketers. According to the report, legitimate email servers averaged a delivery rate of 56%; twenty percent of the messages were rejected, and eight percent were filtered.[8] Companies considering the use of an email marketing program must make sure that their program does not violate spam laws such as the United States' Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM),[9] the European Privacy and Electronic Communications Regulations 2003, or their Internet service provider's acceptable use policy.
Opt-in email advertising

Opt-in email advertising, or permission marketing, is a method of advertising via email whereby the recipient of the advertisement has consented to receive it. This method is one of several developed by marketers to eliminate the disadvantages of email marketing.[10] Opt-in email marketing may evolve into a technology that uses a handshake protocol between the sender and receiver. This system is intended to eventually result in a high degree of satisfaction between consumers and marketers. If opt-in email advertising is used, the material that is emailed to consumers will be "anticipated." It is assumed that the consumer wants to receive it, which makes it unlike unsolicited advertisements sent to the consumer. Ideally, opt-in email advertisements will be more personal and relevant to the consumer than untargeted advertisements. A common example of permission marketing is a newsletter sent to an advertising firm's customers. Such newsletters inform customers of upcoming events or promotions, or new products.[11] In this type of advertising, a company that wants to send a newsletter to their customers may ask them at the point of purchase if they would like to receive the newsletter. With a foundation of opted-in contact information stored in their database, marketers can send out promotional materials automaticallyknown as Drip Marketing. They can also segment their promotions to specific market segments.[12]
Legal requirements
In 2002 the European Union introduced the Directive on Privacy and Electronic Communications. Article 13 of the Directive prohibits the use of personal email addresses for marketing purposes. The Directive establishes the opt-in regime, where unsolicited emails may be sent only with prior agreement of the recipient, this does not apply to business email addresses. The directive has since been incorporated into the laws of member states. In the UK it is covered under the Privacy and Electronic Communications (EC Directive) Regulations 2003[13] and applies to all organisations that send out marketing by some form of electronic communication. The CAN-SPAM Act of 2003 authorizes a US $16,000 penalty per violation for spamming each individual recipient. Therefore, many commercial email marketers within the United States utilize a service or special software to ensure compliance with the Act. A variety of older systems exist that do not ensure compliance with the Act. To comply with the Act's regulation of commercial email, services typically require users to authenticate their return address and include a valid physical address, provide a one-click unsubscribe feature, and prohibit importing lists of purchased addresses that may not have given valid permission. In addition to satisfying legal requirements, email service providers (ESPs) began to help customers establish and manage their own email marketing campaigns. The service providers supply email templates and general best practices, as well as methods for handling subscriptions and cancellations automatically. Some ESPs will provide
Email marketing insight/assistance with deliverability issues for major email providers. They also provide statistics pertaining to the number of messages received and opened, and whether the recipients clicked on any links within the messages. The CAN-SPAM Act was updated with some new regulations including a no fee provision for opting out, further definition of "sender", post office or private mail boxes count as a "valid physical postal address" and definition of "person". These new provisions went into effect on July 7, 2008.[14]
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References
[1] VanBoskirk, Shar et al. (August 24, 2011) US Interactive Marketing Forecast, 2011 To 2016 (http:/ / www. forrester. com/ rb/ Research/ us_interactive_marketing_forecast,_2011_to_2016/ q/ id/ 59379/ t/ 2). forrester.com [2] McDonald, Loren (April 23, 2009) Transactional Emails: Make Your First Impression Count (http:/ / www. mediapost. com/ publications/ article/ 104687/ ). mediapost.com [3] "New Survey Data: Email's ROI Makes Tactic Key for Marketers in 2009 " (http:/ / www. marketingsherpa. com/ article. php?ident=31009#), MarketingSherpa, January 21, 2009 [4] Pew Internet & American Life Project, "Tracking surveys" (http:/ / www. pewinternet. org/ trends. asp), March 2000 March 2009 [5] How Scheduling Affects Rates (http:/ / www. mailermailer. com/ resources/ metrics/ 2012/ how-scheduling-affects-rates. rwp). Mailermailer.com (July 2012). Retrieved on 2013-07-28. [6] BtoB Magazine, "Early Email Blasts Results in Higher Click & Open Rates" (http:/ / www. btobonline. com/ article/ 20110901/ EMAIL13/ 309019997/ early-morning-email-blasts-pay-off-with-strong-opens-clicks), September 2011 [7] UK e-mail marketing predicted to rise 15% (http:/ / www. mediaweek. co. uk/ news/ comment/ vital+ stats/ 945161/ UK-e-mail-marketing-predicted-rise-15/ ). MediaWeek.co.uk (13 October 2009) [8] Bannan, Karen J. (July 31, 2008) "5 ways to increase deliverability" (http:/ / www. btobonline. com/ apps/ pbcs. dll/ article?AID=/ 20080731/ FREE/ 180513096/ 1116/ FREE), BtoB Magazine [9] The CAN-SPAM Act of 2003 (http:/ / www. ftc. gov/ bcp/ conline/ pubs/ buspubs/ canspam. htm) online at ftc.gov or PDF Version (http:/ / www. ftc. gov/ bcp/ conline/ pubs/ buspubs/ canspam. pdf) [10] Fairhead, N. (2003) All hail the brave new world of permission marketing via email (Media 16, August 2003) [11] Dilworth, Dianna. (2007) Ruth's Chris Steak House sends sizzling e-mails for special occasions (http:/ / www. dmnews. com/ Ruths-Chris-Steak-House-sends-sizzling-e-mails-for-special-occasions/ article/ 94733/ ), DMNews retrieved on February 19, 2008 [12] O'Brian J. & Montazemia, A. (2004) Management Information Systems (Canada: McGraw-Hill Ryerson Ltd.) [13] The Privacy and Electronic Communications (EC Directive) Regulations 2003 (http:/ / www. opsi. gov. uk/ si/ si2003/ 20032426. htm). Opsi.gov.uk. Retrieved on 2013-07-28. [14] FTC Approves New Rule Provision Under The CAN-SPAM Act (http:/ / www. ftc. gov/ opa/ 2008/ 05/ canspam. shtm). Ftc.gov (2011-06-24). Retrieved on 2013-07-28.
Referral marketing
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Referral marketing
Referral marketing is a method of promoting products or services to new customers through referrals, usually word of mouth. Such referrals often happen spontaneously but businesses can influence this through appropriate strategies.
Overview
Referral marketing is a structured and systematic process to maximize word of mouth potential. Referral marketing does this by encouraging, informing, promoting and rewarding customers and contacts to think and talk as much as possible about their supplier, their company, product and service and the value and benefit the supplier brings to them and people they know. Referral marketing takes word of mouth from the spontaneous situation to one where maximum referrals are generated. Online referral marketing, using digital marketing as a platform, is the internet based approach to traditional referral marketing. Given the advances in tracking customer behavior online through the use of web browser cookies, online referral marketing provides a high degree of tracking and accountability. As mobile access to the internet becomes increasingly popular, offline referral marketing using trackable business cards are also becoming increasingly popular. Trackable business cards typically contain QR codes linking them to online content for sale while providing a way to track that sale back to the person whose card was scanned.
Benefits of referral programs

A study conducted by the Goethe University Frankfurt and the University of Pennsylvania, on referral programs and customer value which followed the customer referral program of a German bank that paid customers 25 euro for bringing in a new customer, was released in July 2010. [1] According to Professor Van den Bulte, this is the first ever study published on the financial evaluation of customer referral programs.[2] The study found that referred customers were both more profitable and loyal than normal customers. Referred customers had a higher contribution margin, a higher retention rate and were more valuable in both the short and long run. On whether customer referral programs are worth the cost, the study says that it records "a positive value differential, both in the short term and long term, between customers acquired through a referral program and other customers. Importantly, this value differential is larger than the referral fee. Hence, referral programs can indeed pay off."[3]
References
[1] " Referral Programs and Customer Value (http:/ / www. marketing. uni-frankfurt. de/ fileadmin/ Publikationen/ JM_Referral_Programs_and_Customer_Value. pdf) [2] http:/ / www. forbes. com/ 2010/ 07/ 21/ viral-marketing-referral-program-entrepreneurs-sales-marketing-wharton_print. html [3] Page 25 of " Referral Programs and Customer Value (http:/ / www. marketing. uni-frankfurt. de/ fileadmin/ Publikationen/ JM_Referral_Programs_and_Customer_Value. pdf)"
Content marketing
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Content marketing
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Content marketing is any marketing format that involves the creation and sharing of media and publishing content in order to acquire customers. This information can be presented in a variety of formats, including news, video, white papers, e-books, infographics, case studies, how-to guides, question and answer articles, photos, etc. Content marketing is focused not on selling, but on simply communicating with customers and prospects. The idea is to inspire business and loyalty from buyers by delivering "consistent, ongoing valuable information".
Content marketing
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History
The following examples demonstrate early use of content to disseminate information about a brand, and build a brand's reputation: 1891: August Oetker sold small packages of his Backin backingpowder to households with recipes printed on the back. In 1911 he started publishing his very successful cookbook. It went through major updates over past 100 years and is one of the most successful cookbooks globally reaching 19 million printed copies. All recipes originated from the test kitchen of the Oetker company and the book was carefully written as a textbook to teach cooking from scratch. Oetker was very aware of the need for good marketing, practical communication and use of his doctor title to lend authority to his marketing. 1895: John Deere launched the magazine The Furrow, providing information to farmers on how to become more profitable. The magazine, considered the first custom publication, is still in circulation, reaching 1.5 million readers in 40 countries in 12 different languages. 1900: Michelin developed the Michelin Guide, offering drivers information on auto maintenance, accommodations, and other travel 10g Backin package (1902) tips. 35,000 copies were distributed for free in this first edition. Although Michelin eventually began selling these books, the publication still set a precedent for both informative guides and content marketing distribution. 1904: Jell-O salesmen went door-to-door, distributing their cookbook for free. Touting the dessert as a versatile food, the company saw its sales rise to over $1 million by 1906. The phrase "content marketing" was used as early as 1996,[1] when John F. Oppedahl led a roundtable for journalists at the American Society for Newspaper Editors. In 1998, Jerrell Jimerson held the title of "director of online and content marketing" at Netscape.[2] In 1999, author Jeff Cannon wrote,In content marketing, content is created to provide consumers with the information they seek.[3]
References
[1] http:/ / files. asne. org/ kiosk/ editor/ june/ doyle. htm [2] http:/ / news. cnet. com/ Netscape-to-offer-Web-forums/ 2100-1023_3-209008. html [3] Cannon, Jeff (1999), 'Make Your Website Work For You', pg. 45. McGraw Hill Professional, ISBN 978-0071352413
Native advertising
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Native advertising
Native advertising is an online advertising method in which the advertiser attempts to gain attention by providing content in the context of the user's experience. Native ad formats match both the form and the function of the user experience in which it is placed. The advertiser's intent is to make the paid advertising feel less intrusive and thus increase the likelihood users will click on it.
Forms
One form of native advertising, publisher-produced brand content, is similar in concept to a traditional advertorial, which is a paid placement attempting to look like an article. A native ad tends to be more obviously an ad than most advertorials. Formats for native advertising include promoted videos, images, articles, music and other media. Examples of the technique include Search engine marketing (ads appearing alongside search results are native to the search experience) and Twitter with promoted Tweets, trends and people. Other examples include Facebook's promoted stories or Tumblr's promoted posts. Content marketing is another form of native advertising, placing sponsor-funded content alongside editorial content or showing "other content you might be interested in" which is sponsored by a marketer alongside editorial recommendations.
Platforms
The types of platforms and websites that participate in native advertising can be split into two categories, open and closed platforms:[citation needed] Closed platforms are brands creating profiles and/or content within a platform, then promoting that content within the confines of that same closed platform. Examples include Promoted Tweets on Twitter, Sponsored Stories on Facebook and TrueView Video Ads on YouTube. Open platforms are defined by promoting the same piece of branded content across multiple platforms within native ad formats. Unlike closed platforms, the branded content asset lives outside the platform. For example, Adyoulike, AdsNative, Sharethrough and Nativo are open native advertising platforms, which allow brands to include the same content in native ad placements on multiple publishers. Large publishers, such as Washington Post, have recently started introducing their own native advertising formats.
Examples
Advertorial in printed media demonstrate native advertising where bloggers are established as credible authorities but in fact are recommending brands they are paid to recommend and by definition are conflicted. More subtle forms of native advertising with less of an ethical backlash began emerging on Facebook in 2012 and 2013 where brands captured photos or videos of guests and overlaid a logo or brand message and then posted to either the guest's own Facebook page or the brand's corporate page on Facebook. For example, ads for the premiere of The Hobbit: An Unexpected Journey consisted of photographs of VIPs with a Hobbit logo at the bottom. Twitter's base advertising product MoPub, acquired in September 2013, creates native ads within the Twitter stream such that posts from brands fit into the context around the rest of the user's Twitter updates. MoPub has been very successful in generating not only click-through to websites (lead generation) but even so far as direct sale of gaming applications.
Native advertising
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References External links

Khan, Fahad, Toward (Re) Defining Native Advertising (http://www.huffingtonpost.com/fahad-khan/ toward-redefining-native-_b_3860826.html), Huffington Post, 3 September 2013. Joel, Mitch (13 February 2013). "We Need a Better Definition of "Native Advertising"" (http://blogs.hbr.org/ 2013/02/we-need-a-better-definition-of/). Harvard Business Review Blog. Salmon, Felix, "The disruptive potential of native advertising" (http://blogs.reuters.com/felix-salmon/2013/ 04/09/the-disruptive-potential-of-native-advertising/), Reuters blogpost, 9 April 2013. Rice, Andrew, Does BuzzFeed know the secret? (http://nymag.com/news/features/buzzfeed-2013-4/), New York Magazine, 7 April 2013.
Search engine marketing

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Search engine marketing (SEM) is a form of Internet marketing that involves the promotion of websites by increasing their visibility in search engine results pages (SERPs) through optimization and advertising. SEM may use search engine optimization (SEO), that adjusts or rewrites website content to achieve a higher ranking in search engine results pages or use pay per click listings.
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Market
In 2012, North American advertisers spent US$19.51 billion on search engine marketing. The largest SEM vendors were Google AdWords and Bing Ads As of 2006, SEM was growing much faster than traditional advertising and even other channels of online marketing. Because of the complex technology, a secondary 'search marketing agency' market has evolved. Some marketers have difficulty understanding the intricacies of search engine marketing and choose to rely on third party agencies to manage their search marketing.
History
As the number of sites on the Web increased in the mid-to-late 90s, search engines started appearing to help people find information quickly. Search engines developed business models to finance their services, such as pay per click programs offered by Open Text in 1996 and then Goto.com in 1998. Goto.com later changed its name to Overture in 2001, and was purchased by Yahoo! in 2003, and now offers paid search opportunities for advertisers through Yahoo! Search Marketing. Google also began to offer advertisements on search results pages in 2000 through the Google AdWords program. By 2007, pay-per-click programs proved to be primary money-makers for search engines. In a market dominated by Google, in 2009 Yahoo! and Microsoft announced the intention to forge an alliance. The Yahoo! & Microsoft Search Alliance eventually received approval from regulators in the US and Europe in February 2010. Search engine optimization consultants expanded their offerings to help businesses learn about and use the advertising opportunities offered by search engines, and new agencies focusing primarily upon marketing and advertising through search engines emerged. The term "Search Engine Marketing" was proposed by Danny Sullivan in 2001 to cover the spectrum of activities involved in performing SEO, managing paid listings at the search engines, submitting sites to directories, and developing online marketing strategies for businesses, organizations, and individuals.
Methods and metrics

There are four categories of methods and metrics used to optimize websites through search engine marketing. 1. Keyword research and analysis involves three "steps": ensuring the site can be indexed in the search engines, finding the most relevant and popular keywords for the site and its products, and using those keywords on the site in a way that will generate and convert traffic. 2. Website saturation and popularity, or how much presence a website has on search engines, can be analyzed through the number of pages of the site that are indexed on search engines (saturation) and how many backlinks the site has (popularity). It requires pages to contain keywords people are looking for and ensure that they rank high enough in search engine rankings. Most search engines include some form of link popularity in their ranking algorithms. The following are major tools measuring various aspects of saturation and link popularity: Link Popularity, Top 10 Google Analysis, and Marketleap's Link Popularity and Search Engine Saturation. 3. Back end tools, including Web analytic tools and HTML validators, provide data on a website and its visitors and allow the success of a website to be measured. They range from simple traffic counters to tools that work with log files and to more sophisticated tools that are based on page tagging (putting JavaScript or an image on a page to track actions). These tools can deliver conversion-related information. There are three major tools used by EBSCO: (a) log file analyzing tool: WebTrends by NetiQ; (b) tag-based analytic programs WebSideStory's Hitbox; (c) transaction-based tool: TeaLeaf RealiTea. Validators check the invisible parts of websites, highlighting potential problems and many usability issues ensure websites meets W3C code standards. Try to use more than one HTML validator or spider simulator because each tests, highlights, and reports on slightly different aspects of your website.
Search engine marketing 4. Whois tools reveal the owners of various websites, and can provide valuable information relating to copyright and trademark issues.
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Paid inclusion
Paid inclusion involves a search engine company charging fees for the inclusion of a website in their results pages. Also known as sponsored listings, paid inclusion products are provided by most search engine companies either in the main results area, or as a separately identified advertising area. The fee structure is both a filter against superfluous submissions and a revenue generator. Typically, the fee covers an annual subscription for one webpage, which will automatically be catalogued on a regular basis. However, some companies are experimenting with non-subscription based fee structures where purchased listings are displayed permanently. A per-click fee may also apply. Each search engine is different. Some sites allow only paid inclusion, although these have had little success. More frequently, many search engines, like Yahoo!, mix paid inclusion (per-page and per-click fee) with results from web crawling. Others, like Google (and as of 2006, Ask.com), do not let webmasters pay to be in their search engine listing (advertisements are shown separately and labeled as such). Some detractors of paid inclusion allege that it causes searches to return results based more on the economic standing of the interests of a web site, and less on the relevancy of that site to end-users. Often the line between pay per click advertising and paid inclusion is debatable. Some have lobbied for any paid listings to be labeled as an advertisement, while defenders insist they are not actually ads since the webmasters do not control the content of the listing, its ranking, or even whether it is shown to any users. Another advantage of paid inclusion is that it allows site owners to specify particular schedules for crawling pages. In the general case, one has no control as to when their page will be crawled or added to a search engine index. Paid inclusion proves to be particularly useful for cases where pages are dynamically generated and frequently modified. Paid inclusion is a search engine marketing method in itself, but also a tool of search engine optimization, since experts and firms can test out different approaches to improving ranking, and see the results often within a couple of days, instead of waiting weeks or months. Knowledge gained this way can be used to optimize other web pages, without paying the search engine company.
Comparison with SEO

SEM is the wider discipline that incorporates SEO. SEM includes both paid search results (using tools like Google Adwords or Bing Ads, formerly known as Microsoft adCenter) and organic search results (SEO). SEM uses paid advertising with AdWords or Bing Ads, pay per click (particularly beneficial for local providers as it enables potential consumers to contact a company directly with one click), article submissions, advertising and making sure SEO has been done. A keyword analysis is performed for both SEO and SEM, but not necessarily at the same time. SEM and SEO both need to be monitored and updated frequently to reflect evolving best practices. In some contexts, the term SEM is used exclusively to mean pay per click advertising, particularly in the commercial advertising and marketing communities which have a vested interest in this narrow definition. Such usage excludes the wider search marketing community that is engaged in other forms of SEM such as search engine optimization and search retargeting. Another part of SEM is social media marketing (SMM). SMM is a type of marketing that involves exploiting social media to influence consumers that one companys products and/or services are valuable. Some of the latest theoretical advances include search engine marketing management (SEMM). SEMM relates to activities including SEO but focuses on return on investment (ROI) management instead of relevant traffic building (as is the case of mainstream SEO). SEMM also integrates organic SEO, trying to achieve top ranking without using paid means to achieve it, and pay per click SEO. For example some of the attention is placed on the web page layout design and how content and information is displayed to the website visitor. SEO & SEM are two pillars of one marketing job
Search engine marketing and they both runs side by side to produce much better results rather focusing on only one pillar.
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Ethical questions
Paid search advertising has not been without controversy, and the issue of how search engines present advertising on their search result pages has been the target of a series of studies and reports by Consumer Reports WebWatch. The Federal Trade Commission (FTC) also issued a letter in 2002 about the importance of disclosure of paid advertising on search engines, in response to a complaint from Commercial Alert, a consumer advocacy group with ties to Ralph Nader. Another ethical controversy associated with search marketing has been the issue of trademark infringement. The debate as to whether third parties should have the right to bid on their competitors' brand names has been underway for years. In 2009 Google changed their policy, which formerly prohibited these tactics, allowing 3rd parties to bid on branded terms as long as their landing page in fact provides information on the trademarked term. Though the policy has been changed this continues to be a source of heated debate. On April 24, 2012 many started to see that Google has started to penalize companies that are buying links for the purpose of passing off the rank. The Google Update was called Penguin. SEM has, however, nothing to do with link buying and focuses on organic SEO and PPC management.
Examples
AdWords is recognised as a web-based advertising utensil since it adopts keywords which can deliver adverts explicitly to web users looking for information in respect to a certain product or service. This project is highly practical for advertisers as the project hinges on cost per click (CPC) pricing, thus the payment of the service only applies if their advert has been clicked on. SEM companies have embarked on AdWords projects as a way to publicize their SEM and SEO services. This promotion has helped their business elaborate, offering added value to consumers who endeavor to employ AdWords for promoting their products and services. One of the most successful approaches to the strategy of this project was to focus on making sure that PPC advertising funds were prudently invested. Moreover, SEM companies have described AdWords as a fine practical tool for increasing a consumers investment earnings on Internet advertising. The use of conversion tracking and Google Analytics tools was deemed to be practical for presenting to clients the performance of their canvas from click to conversion. AdWords project has enabled SEM companies to train their clients on the utensil and delivers better performance to the canvass. The assistance of AdWord canvass could contribute to the huge success in the growth of web traffic for a number of its consumers website, by as much as 250% in only nine months. Another way search engine marketing is managed is by contextual advertising. Here marketers place ads on other sites or portals that carry information relevant to their products so that the ads jump into the circle of vision of browsers who are seeking information from those sites. A successful SEM plan is the approach to capture the relationships amongst information searchers, businesses, and search engines. Search engines were not important to some industries in the past but over the past years, the use of search engines for accessing information has become vital to increase business opportunities. The use of SEM strategic tools for businesses such as tourism can attract potential consumers to view their products but it could also pose various challenges. These challenges could be the competition that companies face amongst their industry and other sources of information that could draw the attention of online consumers. To assist the combat of challenges, the main objective for businesses applying SEM is to improve and maintain their ranking as high as possible on SERPs so that they can gain visibility. Therefore search engines are adjusting and developing algorithms and the shifting criteria by which web pages are ranked sequentially to combat against search engine misuse and spamming, and to supply the most relevant information to searchers. This could enhance the relationship amongst information searchers, businesses, and search engines by understanding the strategies of marketing to attract business.
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References
Pay per click

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Pay per click (PPC) (also called cost per click) is an internet advertising model used to direct traffic to websites, in which advertisers pay the publisher (typically a website owner) when the ad is clicked. It is defined simply as the amount spent to get an advertisement clicked.[1] With search engines, advertisers typically bid on keyword phrases relevant to their target market. Content sites commonly charge a fixed price per click rather than use a bidding system. PPC "display" advertisements, also known as "banner" ads, are shown on web sites or search engine results with related content that have agreed to show ads. In contrast to the generalized portal, which seeks to drive a high volume of traffic to one site, PPC implements the so-called affiliate model, which provides purchase opportunities wherever people may be surfing. It does this by offering financial incentives (in the form of a percentage of revenue) to affiliated partner sites. The affiliates provide purchase-point click-through to the merchant. It is a pay-for-performance model: If an affiliate does not generate sales, it represents no cost to the merchant. Variations include banner exchange, pay-per-click, and revenue sharing programs. Websites that utilize PPC ads will display an advertisement when a keyword query matches an advertiser's keyword list, or when a content site displays relevant content. Such advertisements are called sponsored links or sponsored ads, and appear adjacent to, above, or beneath organic results on search engine results pages, or anywhere a web developer chooses on a content site.[2]
Pay per click The PPC advertising model is open to abuse through click fraud, although Google and others have implemented automated systems to guard against abusive clicks by competitors or corrupt web developers.[3]
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Purpose
Pay-per-click, along with cost per impression and cost per order, are used to assess the cost effectiveness and profitability of internet marketing. Pay-per-click has an advantage over cost per impression in that it tells us something about how effective the advertising was. Clicks are a way to measure attention and interest. Inexpensive ads that few people click on will have a low cost per impression and a high pay-per-click. If the main purpose of an ad is to generate a click, then pay-per-click is the preferred metric. Once a certain number of web impressions are achieved, the quality and placement of the advertisement will affect clickthrough rates and the resulting pay-per-click.
Construction
Pay-per-click is calculated by dividing the advertising cost by the number of clicks generated by an advertisement. The basic formula is: Pay-per-click ($) = Advertising cost ($) Ads clicked (#) There are two primary models for determining pay-per-click: flat-rate and bid-based. In both cases, the advertiser must consider the potential value of a click from a given source. This value is based on the type of individual the advertiser is expecting to receive as a visitor to his or her website, and what the advertiser can gain from that visit, usually revenue, both in the short term as well as in the long term. As with other forms of advertising targeting is key, and factors that often play into PPC campaigns include the target's interest (often defined by a search term they have entered into a search engine, or the content of a page that they are browsing), intent (e.g., to purchase or not), location (for geo targeting), and the day and time that they are browsing.
Flat-rate PPC
In the flat-rate model, the advertiser and publisher agree upon a fixed amount that will be paid for each click. In many cases the publisher has a rate card that lists the pay-per-click (PPC) within different areas of their website or network. These various amounts are often related to the content on pages, with content that generally attracts more valuable visitors having a higher PPC than content that attracts less valuable visitors. However, in many cases advertisers can negotiate lower rates, especially when committing to a long-term or high-value contract. The flat-rate model is particularly common to comparison shopping engines, which typically publish rate cards.[4] However, these rates are sometimes minimal, and advertisers can pay more for greater visibility. These sites are usually neatly compartmentalized into product or service categories, allowing a high degree of targeting by advertisers. In many cases, the entire core content of these sites is paid ads.
Bid-based PPC
The advertiser signs a contract that allows them to compete against other advertisers in a private auction hosted by a publisher or, more commonly, an advertising network. Each advertiser informs the host of the maximum amount that he or she is willing to pay for a given ad spot (often based on a keyword), usually using online tools to do so. The auction plays out in an automated fashion every time a visitor triggers the ad spot. When the ad spot is part of a search engine results page (SERP), the automated auction takes place whenever a search for the keyword that is being bid upon occurs. All bids for the keyword that target the searcher's geo-location, the day and time of the search, etc. are then compared and the winner determined. In situations where there are multiple ad spots, a common occurrence on SERPs, there can be multiple winners whose positions on the page are influenced by the amount each has bid. The ad with the highest bid generally shows up first, though additional
Pay per click factors such as ad quality and relevance can sometimes come into play (see Quality Score).The predominant three match types for both Google and Bing are broad, exact and phrase. Google also offers the broad modifier match type. In addition to ad spots on SERPs, the major advertising networks allow for contextual ads to be placed on the properties of 3rd-parties with whom they have partnered. These publishers sign up to host ads on behalf of the network. In return, they receive a portion of the ad revenue that the network generates, which can be anywhere from 50% to over 80% of the gross revenue paid by advertisers. These properties are often referred to as a content network and the ads on them as contextual ads because the ad spots are associated with keywords based on the context of the page on which they are found. In general, ads on content networks have a much lower click-through rate (CTR) and conversion rate (CR) than ads found on SERPs and consequently are less highly valued. Content network properties can include websites, newsletters, and e-mails. Advertisers pay for each click they receive, with the actual amount paid based on the amount bid. It is common practice amongst auction hosts to charge a winning bidder just slightly more (e.g. one penny) than the next highest bidder or the actual amount bid, whichever is lower.[5] This avoids situations where bidders are constantly adjusting their bids by very small amounts to see if they can still win the auction while paying just a little bit less per click. To maximize success and achieve scale, automated bid management systems can be deployed. These systems can be used directly by the advertiser, though they are more commonly used by advertising agencies that offer PPC bid management as a service. These tools generally allow for bid management at scale, with thousands or even millions of PPC bids controlled by a highly automated system. The system generally sets each bid based on the goal that has been set for it, such as maximize profit, maximize traffic at breakeven, and so forth. The system is usually tied into the advertiser's website and fed the results of each click, which then allows it to set bids. The effectiveness of these systems is directly related to the quality and quantity of the performance data that they have to work with low-traffic ads can lead to a scarcity of data problem that renders many bid management tools useless at worst, or inefficient at best.
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History
In 1996, the first known and documented version of a PPC was included in a web directory called Planet Oasis. This was a desktop application featuring links to informational and commercial web sites, and it was developed by Ark Interface II, a division of Packard Bell NEC Computers. The initial reactions from commercial companies to Ark Interface II's "pay-per-visit" model were skeptical, however.[6] By the end of 1997, over 400 major brands were paying between $.005 to $.25 per click plus a placement fee.[citation needed] In February 1998 Jeffrey Brewer of Goto.com, a 25-employee startup company (later Overture, now part of Yahoo!), presented a pay per click search engine proof-of-concept to the TED conference in California.[7] This presentation and the events that followed created the PPC advertising system. Credit for the concept of the PPC model is generally given to Idealab and Goto.com founder Bill Gross. Google started search engine advertising in December 1999. It was not until October 2000 that the AdWords system was introduced, allowing advertisers to create text ads for placement on the Google search engine. However, PPC was only introduced in 2002; until then, advertisements were charged at cost-per-thousand impressions. Overture has filed a patent infringement lawsuit against Google, saying the rival search service overstepped its bounds with its ad-placement tools. Although GoTo.com started PPC in 1998, Yahoo! did not start syndicating GoTo.com (later Overture) advertisers until November 2001. Prior to this, Yahoo's primary source of SERPS advertising included contextual IAB advertising units (mainly 468x60 display ads). When the syndication contract with Yahoo! was up for renewal in July 2003, Yahoo! announced intent to acquire Overture for $1.63 billion. Today, companies such as adMarketplace, ValueClick and adknowledge offer PPC services, as an alternative to AdWords and AdCenter.
Pay per click Among PPC providers, Google AdWords, Yahoo! Search Marketing, and Microsoft adCenter had been the three largest network operators, all three operating under a bid-based model. In 2010, Yahoo and Microsoft launched their combined effort against Google and Microsoft's Bing began to be the search engine that Yahoo used to provide its search results. Since they joined forces, their PPC platform was renamed AdCenter. Their combined network of third party sites that allow AdCenter ads to populate banner and text ads on their site is called BingAds.
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Legal
In 2012 Google was ruled to have engaged in misleading and deceptive conduct by the Australian Competition and Consumer Commission in possibly the first legal case of its kind. The Commission ruled unanimously that Google was responsible for the content of its sponsored AdWords ads that had shown links to a car sales website CarSales. The Ads had been shown by Google in response to a search for Honda Australia. The ACCC said the ads were deceptive, as they suggested CarSales was connected to the Honda company. The ruling was later overturned when Google appealed to the Australian High Court. Google was found not liable for the misleading advertisements run through AdWords despite the fact that the ads were served up by Google and created using the companys tools.
References
[1] Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; David J. Reibstein (2010). Marketing Metrics: The Definitive Guide to Measuring Marketing Performance. Upper Saddle River, New Jersey: Pearson Education, Inc. ISBN 0-13-705829-2. The Marketing Accountability Standards Board (MASB) endorses the definitions, purposes, and constructs of classes of measures that appear in Marketing Metrics as part of its ongoing Common Language: Marketing Activities and Metrics Project (http:/ / www. themasb. org/ common-language-project/ ). [2] "Customers Now", David Szetela, 2009. [3] How do you prevent invalid clicks and impressions? (https:/ / www. google. com/ adsense/ support/ bin/ answer. py?answer=9718& ctx=en:search& query=invalid+ click& topic=& type=f) Google AdSense Help Center, Accessed January 9, 2008 [4] Card Shopping.com Merchant Enrollment (https:/ / merchant. shopping. com/ enroll/ app?service=page/ Rate) Shopping.com, Accessed June 12, 2007 [5] The cost of AdWords (http:/ / support. google. com/ adwords/ bin/ answer. py?hl=en& answer=1704424) Google AdWords Help, Accessed May 18, 2012 [6] and documented Planet Oasis gives web sites promotion clout (http:/ / adage. com/ article/ news/ interactive-planet-oasis-web-sites-promotion-clout/ 78467/ ), Advertising Age July 8, 1996, retrieved December 5, 2012 [7] Overture and Google: Internet Pay Per Click (PPC) Advertising Auctions (http:/ / www-scf. usc. edu/ ~csci572/ papers/ Overture. pdf), London Business School, Accessed June 12, 2007
External links
Paid listings confuse web searchers (http://www.pcworld.com/article/112132/ study_paid_listings_still_confuse_web_searchers.html), PC World
Cost per impression
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Cost per impression

Part of a series on
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Cost per impression, often abbreviated CPI, is a term used in online advertising and marketing related to web traffic.[1] It refers to the cost of internet marketing or email advertising campaigns where advertisers pay each time an ad is displayed. Specifically, it is the cost or expense incurred for marketing potential customers who view the advertisement(s).[2]
Purpose
Cost per impression, along with cost per click and cost per order, is used to assess the cost effectiveness and profitability of online advertising. CPI is the closest online advertising strategy to those offered in other media such as television or print, which sell advertising based on estimated viewership or readership. CPI provides a comparable measure to contrast internet advertising with other media.
Impression versus Pageview

An impression is the display of an ad to a user while viewing a web page. A single web page may contain multiple ads. In such cases, a single pageview would result in one impression for each ad displayed.[3] In order to count the impressions served as accurately as possible and prevent fraud, an ad server may exclude certain non-qualifying activities such as page-refreshes or other user actions from counting as impressions. When advertising rates are described as CPM or CPI, this is the amount paid for every thousand qualifying impressions served at cost.
Cost per impression
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Construction
Cost per impression is derived from advertising cost and the number of impressions. Cost per impression ($) = Advertising cost ($) Number of Impressions (#) Cost per impression is often expressed as Cost per Thousand Impressions (CPM) to make the numbers easier to manage.
References
[1] What Is CPM-Based Web Advertising? (http:/ / www. allbusiness. com/ marketing/ advertising-internet-advertising/ 2646-1. html) [2] Farris, Paul W.; Neil T. Bendle; Phillip E. Pfeifer; David J. Reibstein (2010). Marketing Metrics: The Definitive Guide to Measuring Marketing Performance. Upper Saddle River, New Jersey: Pearson Education, Inc. ISBN 0-13-705829-2. The Marketing Accountability Standards Board (MASB) endorses the definitions, purposes, and constructs of classes of measures that appear in Marketing Metrics as part of its ongoing Common Language: Marketing Activities and Metrics Project (http:/ / www. themasb. org/ common-language-project/ ). [3] AdBalance - Glossary (http:/ / www. adbalance. com/ glossary/ )
Further reading
Chaffey, Dave; et al. (2006). Internet Marketing: Strategy, Implementation and Practice (3rd ed.). Harlow, England: Prentice Hall. ISBN0-273-69405-7.
External links
MASB Official Website (http://www.themasb.org/)
Search analytics
Search analytics is the analysis and aggregation of search engine statistics for use in search engine marketing (SEM) and search engine optimization (SEO). In other words, search analytics helps website owners understand and improve their performance on search engines. Search analytics includes search volume trends and analysis, reverse searching (entering websites to see their keywords), keyword monitoring, search result and advertisement history, advertisement spending statistics, website comparisons, affiliate marketing statistics, multivariate ad testing, et al.
Services
Service Date Started Cost/mo Data Data Reverse Search Collection Verification Search Vol. Search Keyword Result Advertisement Ad Website Affiliate Multivariate Vol. Monitoring History History Spending Comparisons Stats Testing History Yes No No No No Yes No No
Google Trends Google Insights
2004
$0
Owns Data Owns Data ISP Scraping Scraping
Not applicable Not applicable No No Cached SERPs
Top 10 Relative
2008-8-5
$0
No Yes Yes Yes
Relative
Yes No No No
No No Yes No
No No No Yes
No No Yes Yes
No Yes Yes Yes
Yes Yes No Yes
No No Yes No
No No No No
Compete.com 2008-7-4 Adgooroo SpyFu
$500
Yes Yes Yes
2004-10-14 $90 2005-5-5 $60
Last updated: 2014-002-15
Search analytics
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Data collection
Search analytics data can be collected in several ways. Search engines provide access to their own data with services such as Google Trends and Google Insights. Third party services must collect their data from ISP's, phoning home software, or from scraping search engines. Getting traffic statistics from ISP's and phone homes provides for broader reporting of web traffic in addition to search analytics. Services that perform keyword monitoring only scrape a limited set of search results depending on their clients' needs. Services providing reverse search however, must scrape a large set of keywords from the search engines, usually in the millions, to find the keywords that everyone is using. Since search results, especially advertisements, differ depending on where you are searching from, data collection methods have to account for geographic location. Keyword monitors do this more easily since they typically know what location their client is targeting. However, to get an exhaustive reverse search, several locations need to be scraped for the same keyword.
Accuracy
Search analytics accuracy depends on service being used, data collection method, and data freshness. Google releases its own data, but only in an aggregated way and often without assigning absolute values such as number of visitors to its graphs. ISP logs and phone home methods are accurate for the population they sample, so sample size and demographics must be adequate to accurately represent the larger population. Scraping results can be highly accurate, especially when looking at the non-paid, organic search results. Paid results, from Google Adwords for example, are often different for the same search depending on the time, geographic location, and history of searches from a particular computer. This means that scraping advertisers can be hit or miss.
Market conditions
Taking a look at Google Insights to gauge the popularity of these services shows that compared to searches for the term Adwords (Google's popular search ad system), use of search analytics services is still very low, around 1-25% as of Oct. 2009. This could point to a large opportunity for the users and makers of search analytics given that services have existed since 2004 with several new services being started since.
References
Web analytics
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Web analytics
Part of a series on
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Web analytics is the measurement, collection, analysis and reporting of internet data for purposes of understanding and optimizing web usage.[1] Web analytics is not just a tool for measuring web traffic but can be used as a tool for business and market research, and to assess and improve the effectiveness of a web site. Web analytics applications can also help companies measure the results of traditional print or broadcast advertising campaigns. It helps one to estimate how traffic to a website changes after the launch of a new advertising campaign. Web analytics provides information about the number of visitors to a website and the number of page views. It helps gauge traffic and popularity trends which is useful for market research. There are two categories of web analytics; off-site and on-site web analytics. Off-site web analytics refers to web measurement and analysis regardless of whether you own or maintain a website. It includes the measurement of a website's potential audience (opportunity), share of voice (visibility), and buzz (comments) that is happening on the Internet as a whole. On-site web analytics measure a visitor's behavior once on your website. This includes its drivers and conversions; for example, the degree to which different landing pages are associated with online purchases. On-site web analytics measures the performance of your website in a commercial context. This data is typically compared against key performance indicators for performance, and used to improve a web site or marketing campaign's audience response. GoogleAnalyticsisthemostwidely used on-site web analytics service; although new tools are emerging that provide additional layers of information, including heat maps and session replay.
Web analytics Historically, web analytics has referred to on-site visitor measurement. However in recent years this has blurred, mainly because vendors are producing tools that span both categories.
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On-site web analytics technologies

Many different vendors provide on-site web analytics software and services. There are two main technical ways of collecting the data. The first and older method, server log file analysis, reads the logfiles in which the web server records file requests by browsers. The second method, page tagging, uses JavaScript embedded in the site page code to make image requests to a third-party analytics-dedicated server, whenever a page is rendered by a web browser or, if desired, when a mouse click occurs. Both collect data that can be processed to produce web traffic reports. In addition, other data sources may be added to augment the web site behavior data described above. For example: e-mail open and click-through rates, direct mail campaign data, sales and lead history, or other data types as needed.
Web server logfile analysis

Web servers record some of their transactions in a logfile. It was soon realized that these logfiles could be read by a program to provide data on the popularity of the website. Thus arose web log analysis software. In the early 1990s, web site statistics consisted primarily of counting the number of client requests (or hits) made to the web server. This was a reasonable method initially, since each web site often consisted of a single HTML file. However, with the introduction of images in HTML, and web sites that spanned multiple HTML files, this count became less useful. The first true commercial Log Analyzer was released by IPRO in 1994.[2] Two units of measure were introduced in the mid-1990s to gauge more accurately the amount of human activity on web servers. These were page views and visits (or sessions). A page view was defined as a request made to the web server for a page, as opposed to a graphic, while a visit was defined as a sequence of requests from a uniquely identified client that expired after a certain amount of inactivity, usually 30 minutes. The page views and visits are still commonly displayed metrics, but are now consideredWikipedia:Manual of Style/Words to watch#Unsupported attributions rather rudimentary. The emergence of search engine spiders and robots in the late 1990s, along with web proxies and dynamically assigned IP addresses for large companies and ISPs, made it more difficult to identify unique human visitors to a website. Log analyzers responded by tracking visits by cookies, and by ignoring requests from known spiders.[citation
needed]
The extensive use of web caches also presented a problem for logfile analysis. If a person revisits a page, the second request will often be retrieved from the browser's cache, and so no request will be received by the web server. This means that the person's path through the site is lost. Caching can be defeated by configuring the web server, but this can result in degraded performance for the visitor and bigger load on the servers.[citation needed]
Page tagging
Concerns about the accuracy of logfile analysis in the presence of caching, and the desire to be able to perform web analytics as an outsourced service, led to the second data collection method, page tagging or 'Web bugs'. In the mid-1990s, Web counters were commonly seen these were images included in a web page that showed the number of times the image had been requested, which was an estimate of the number of visits to that page. In the late 1990s this concept evolved to include a small invisible image instead of a visible one, and, by using JavaScript, to pass along with the image request certain information about the page and the visitor. This information can then be processed remotely by a web analytics company, and extensive statistics generated. The web analytics service also manages the process of assigning a cookie to the user, which can uniquely identify them during their visit and in subsequent visits. Cookie acceptance rates vary significantly between web sites and may affect the quality of data collected and reported.
Web analytics Collecting web site data using a third-party data collection server (or even an in-house data collection server) requires an additional DNS look-up by the user's computer to determine the IP address of the collection server. On occasion, delays in completing a successful or failed DNS look-ups may result in data not being collected. With the increasing popularity of Ajax-based solutions, an alternative to the use of an invisible image is to implement a call back to the server from the rendered page. In this case, when the page is rendered on the web browser, a piece of Ajax code would call back to the server and pass information about the client that can then be aggregated by a web analytics company. This is in some ways flawed by browser restrictions on the servers which can be contacted with XmlHttpRequest objects. Also, this method can lead to slightly lower reported traffic levels, since the visitor may stop the page from loading in mid-response before the Ajax call is made.
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Logfile analysis vs page tagging

Both logfile analysis programs and page tagging solutions are readily available to companies that wish to perform web analytics. In some cases, the same web analytics company will offer both approaches. The question then arises of which method a company should choose. There are advantages and disadvantages to each approach.[3] Advantages of logfile analysis The main advantages of logfile analysis over page tagging are as follows: The web server normally already produces logfiles, so the raw data is already available. No changes to the website are required. The data is on the company's own servers, and is in a standard, rather than a proprietary, format. This makes it easy for a company to switch programs later, use several different programs, and analyze historical data with a new program. Logfiles contain information on visits from search engine spiders, which generally do not execute JavaScript on a page and are therefore not recorded by page tagging. Although these should not be reported as part of the human activity, it is useful information for search engine optimization. Logfiles require no additional DNS lookups or TCP slow starts. Thus there are no external server calls which can slow page load speeds, or result in uncounted page views. The web server reliably records every transaction it makes, e.g. serving PDF documents and content generated by scripts, and does not rely on the visitors' browsers cooperating. Advantages of page tagging The main advantages of page tagging over logfile analysis are as follows: Counting is activated by opening the page (given that the web client runs the tag scripts), not requesting it from the server. If a page is cached, it will not be counted by the server. Cached pages can account for up to one-third of all pageviews. Not counting cached pages seriously skews many site metrics. It is for this reason server-based log analysis is not considered suitable for analysis of human activity on websites. Data is gathered via a component ("tag") in the page, usually written in JavaScript, though Java can be used, and increasingly Flash is used. Ajax can also be used in conjunction with a server-side scripting language (such as PHP) to manipulate and (usually) store it in a database, basically enabling complete control over how the data is represented.Wikipedia:Disputed statement The script may have access to additional information on the web client or on the user, not sent in the query, such as visitors' screen sizes and the price of the goods they purchased. Page tagging can report on events which do not involve a request to the web server, such as interactions within Flash movies, partial form completion, mouse events such as onClick, onMouseOver, onFocus, onBlur etc. The page tagging service manages the process of assigning cookies to visitors; with logfile analysis, the server has to be configured to do this.
Web analytics Page tagging is available to companies who do not have access to their own web servers. Lately page tagging has become a standard in web analytics.[4] Economic factors Logfile analysis is almost always performed in-house. Page tagging can be performed in-house, but it is more often provided as a third-party service. The economic difference between these two models can also be a consideration for a company deciding which to purchase. Logfile analysis typically involves a one-off software purchase; however, some vendors are introducing maximum annual page views with additional costs to process additional information. In addition to commercial offerings, several open-source logfile analysis tools are available free of charge. For Logfile analysis you have to store and archive your own data, which often grows very large quickly. Although the cost of hardware to do this is minimal, the overhead for an IT department can be considerable. For Logfile analysis you need to maintain the software, including updates and security patches. Complex page tagging vendors charge a monthly fee based on volume i.e. number of pageviews per month collected. Which solution is cheaper to implement depends on the amount of technical expertise within the company, the vendor chosen, the amount of activity seen on the web sites, the depth and type of information sought, and the number of distinct web sites needing statistics. Regardless of the vendor solution or data collection method employed, the cost of web visitor analysis and interpretation should also be included. That is, the cost of turning raw data into actionable information. This can be from the use of third party consultants, the hiring of an experienced web analyst, or the training of a suitable in-house person. A cost-benefit analysis can then be performed. For example, what revenue increase or cost savings can be gained by analysing the web visitor data?
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Hybrid methods
Some companies produce solutions that collect data through both logfiles and page tagging and can analyze both kinds. By using a hybrid method, they aim to produce more accurate statistics than either method on its own. An early hybrid solution was produced in 1998 by Rufus Evison. [citation needed]
Geolocation of visitors
With IP geolocation, it is possible to track visitors location. Using IP geolocation database or API, visitors can be geolocated to city, region or country level. IP Intelligence, or Internet Protocol (IP) Intelligence, is a technology that maps the Internet and catalogues IP addresses by parameters such as geographic location (country, region, state, city and postcode), connection type, Internet Service Provider (ISP), proxy information, and more. The first generation of IP Intelligence was referred to as geotargeting or geolocation technology. This information is used by businesses for online audience segmentation in applications such online advertising, behavioral targeting, content localization (or website localization), digital rights management, personalization, online fraud detection, geographic rights management, localized search, enhanced analytics, global traffic management, and content distribution.
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Click analytics
Click analytics is a special type of web analytics that gives special attention to clicks. Commonly, click analytics focuses on on-site analytics. An editor of a web site uses click analytics to determine the performance of his or her particular site, with regards to where the users of the site are clicking. Also, click analytics may happen real-time or "unreal"-time, depending on the type of information sought. Typically, front-page Clickpath Analysis with referring pages on the left and arrows and rectangles editors on high-traffic news media sites will differing in thickness and expanse to symbolize movement quantity. want to monitor their pages in real-time, to optimize the content. Editors, designers or other types of stakeholders may analyze clicks on a wider time frame to aid them assess performance of writers, design elements or advertisements etc. Data about clicks may be gathered in at least two ways. Ideally, a click is "logged" when it occurs, and this method requires some functionality that picks up relevant information when the event occurs. Alternatively, one may institute the assumption that a page view is a result of a click, and therefore log a simulated click that led to that page view.
Customer lifecycle analytics

Customer lifecycle analytics is a visitor-centric approach to measuring that falls under the umbrella of lifecycle marketing.[citation needed] Page views, clicks and other events (such as API calls, access to third-party services, etc.) are all tied to an individual visitor instead of being stored as separate data points. Customer lifecycle analytics attempts to connect all the data points into a marketing funnel that can offer insights into visitor behavior and website optimization.[citation needed]
Other methods
Other methods of data collection are sometimes used. Packet sniffing collects data by sniffing the network traffic passing between the web server and the outside world. Packet sniffing involves no changes to the web pages or web servers. Integrating web analytics into the web server software itself is also possible.[5] Both these methods claim to provide better real-time data than other methods.
On-site web analytics - definitions

There are no globally agreed definitions within web analytics as the industry bodies have been trying to agree on definitions that are useful and definitive for some time. The main bodies who have had input in this area have been JICWEBS (The Joint Industry Committee for Web Standards in the UK and Ireland) [6], ABCe (Audit Bureau of Circulations electronic, UK and Europe) [7], The DAA (Digital Analytics Association) [8], formally known as the WAA (Web Analytics Association, US) and to a lesser extent the IAB (Interactive Advertising Bureau). However, many terms are used in consistent ways from one major analytics tool to another, so the following list, based on those conventions, can be a useful starting point. Both the WAA and the ABCe provide more definitive lists for those who are declaring their statistics as using the metrics defined by either.
Web analytics Hit - A request for a file from the web server. Available only in log analysis. The number of hits received by a website is frequently cited to assert its popularity, but this number is extremely misleading and dramatically overestimates popularity. A single web-page typically consists of multiple (often dozens) of discrete files, each of which is counted as a hit as the page is downloaded, so the number of hits is really an arbitrary number more reflective of the complexity of individual pages on the website than the website's actual popularity. The total number of visits or page views provides a more realistic and accurate assessment of popularity. Page view - A request for a file, or sometimes an event such as a mouse click, that is defined as a page in the setup of the web analytics tool. An occurrence of the script being run in page tagging. In log analysis, a single page view may generate multiple hits as all the resources required to view the page (images, .js and .css files) are also requested from the web server. Event - A discrete action or class of actions that occurs on a website. A page view is a type of event. Events also encapsulate clicks, form submissions, keypress events, and other client-side user actions. Visit / Session - A visit or session is defined as a series of page requests or, in the case of tags, image requests from the same uniquely identified client. A visit is considered ended when no requests have been recorded in some number of elapsed minutes. A 30 minute limit ("time out") is used by many analytics tools but can, in some tools, be changed to another number of minutes. Analytics data collectors and analysis tools have no reliable way of knowing if a visitor has looked at other sites between page views; a visit is considered one visit as long as the events (page views, clicks, whatever is being recorded) are 30 minutes or less closer together. Note that a visit can consist of one page view, or thousands. First Visit / First Session - (also called 'Absolute Unique Visitor' in some tools) A visit from a uniquely identified client that has theoretically not made any previous visits. Since the only way of knowing whether the uniquely identified client has been to the site before is the presence of a persistent cookie that had been received on a previous visit, the First Visit label is not reliable if the site's cookies have been deleted since their previous visit. Visitor / Unique Visitor / Unique User - The uniquely identified client that is generating page views or hits within a defined time period (e.g. day, week or month). A uniquely identified client is usually a combination of a machine (one's desktop computer at work for example) and a browser (Firefox on that machine). The identification is usually via a persistent cookie that has been placed on the computer by the site page code. An older method, used in log file analysis, is the unique combination of the computer's IP address and the User Agent (browser) information provided to the web server by the browser. It is important to understand that the "Visitor" is not the same as the human being sitting at the computer at the time of the visit, since an individual human can use different computers or, on the same computer, can use different browsers, and will be seen as a different visitor in each circumstance. Increasingly, but still somewhat rarely, visitors are uniquely identified by Flash LSO's (Local Shared Object), which are less susceptible to privacy enforcement. Repeat Visitor - A visitor that has made at least one previous visit. The period between the last and current visit is called visitor recency and is measured in days. New Visitor - A visitor that has not made any previous visits. This definition creates a certain amount of confusion (see common confusions below), and is sometimes substituted with analysis of first visits. Impression - The most common definition of "Impression" is an instance of an advertisement appearing on a viewed page. Note that an advertisement can be displayed on a viewed page below the area actually displayed on the screen, so most measures of impressions do not necessarily mean an advertisement has been viewable. Single Page Visit / Singleton - A visit in which only a single page is viewed (a 'bounce'). Bounce Rate - The percentage of visits that are single page visits. Exit Rate / % Exit - A statistic applied to an individual page, not a web site. The percentage of visits seeing a page where that page is the final page viewed in the visit. Page Time Viewed / Page Visibility Time / Page View Duration - The time a single page (or a blog, Ad Banner...) is on the screen, measured as the calculated difference between the time of the request for that page and
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Web analytics the time of the next recorded request. If there is no next recorded request, then the viewing time of that instance of that page is not included in reports. Session Duration / Visit Duration - Average amount of time that visitors spend on the site each time they visit. This metric can be complicated by the fact that analytics programs can not measure the length of the final page view.[9] Average Page View Duration - Average amount of time that visitors spend on an average page of the site. Active Time / Engagement Time - Average amount of time that visitors spend actually interacting with content on a web page, based on mouse moves, clicks, hovers and scrolls. Unlike Session Duration and Page View Duration / Time on Page, this metric can accurately measure the length of engagement in the final page view, but it is not available in many analytics tools or data collection methods. Average Page Depth / Page Views per Average Session - Page Depth is the approximate "size" of an average visit, calculated by dividing total number of page views by total number of visits. Frequency / Session per Unique - Frequency measures how often visitors come to a website in a given time period. It is calculated by dividing the total number of sessions (or visits) by the total number of unique visitors during a specified time period, such as a month or year. Sometimes it is used interchangeable with the term "loyalty." Click path - the chronological sequence of page views within a visit or session.
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Click - "refers to a single instance of a user following a hyperlink from one page in a site to another".[10] Site Overlay is a report technique in which statistics (clicks) or hot spots are superimposed, by physical location, on a visual snapshot of the web page.
Common sources of confusion in web analytics

The hotel problem
The hotel problem is generally the first problem encountered by a user of web analytics. The problem is that the unique visitors for each day in a month do not add up to the same total as the unique visitors for that month. This appears to an inexperienced user to be a problem in whatever analytics software they are using. In fact it is a simple property of the metric definitions. The way to picture the situation is by imagining a hotel. The hotel has two rooms (Room A and Room B).
Day 1 Day 2 Day 3 Room A John Room B Mark Total 2 John Jane 2 Mark Jane 2 Total 2 Unique Users 2 Unique Users ?
As the table shows, the hotel has two unique users each day over three days. The sum of the totals with respect to the days is therefore six. During the period each room has had two unique users. The sum of the totals with respect to the rooms is therefore four. Actually only three visitors have been in the hotel over this period. The problem is that a person who stays in a room for two nights will get counted twice if you count them once on each day, but is only counted once if you are looking at the total for the period. Any software for web analytics will sum these correctly for the chosen time period, thus leading to the problem when a user tries to compare the totals.
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New visitors + Repeat visitors unequal to total visitors

Another common misconception in web analytics is that the sum of the new visitors and the repeat visitors ought to be the total number of visitors. Again this becomes clear if the visitors are viewed as individuals on a small scale, but still causes a large number of complaints that analytics software cannot be working because of a failure to understand the metrics. Here the culprit is the metric of a new visitor. There is really no such thing as a new visitor when you are considering a web site from an ongoing perspective. If a visitor makes their first visit on a given day and then returns to the web site on the same day they are both a new visitor and a repeat visitor for that day. So if we look at them as an individual which are they? The answer has to be both, so the definition of the metric is at fault.
Web analytics methods

Problems with cookies
Historically, vendors of page-tagging analytics solutions have used third-party cookies sent from the vendor's domain instead of the domain of the website being browsed. Third-party cookies can handle visitors who cross multiple unrelated domains within the company's site, since the cookie is always handled by the vendor's servers. However, third-party cookies in principle allow tracking an individual user across the sites of different companies, allowing the analytics vendor to collate the user's activity on sites where he provided personal information with his activity on other sites where he thought he was anonymous. Although web analytics companies deny doing this, other companies such as companies supplying banner ads have done so. Privacy concerns about cookies have therefore led a noticeable minority of users to block or delete third-party cookies. In 2005, some reports showed that about 28% of Internet users blocked third-party cookies and 22% deleted them at least once a month.[11] Most vendors of page tagging solutions have now moved to provide at least the option of using first-party cookies (cookies assigned from the client subdomain). Another problem is cookie deletion. When web analytics depend on cookies to identify unique visitors, the statistics are dependent on a persistent cookie to hold a unique visitor ID. When users delete cookies, they usually delete both first- and third-party cookies. If this is done between interactions with the site, the user will appear as a first-time visitor at their next interaction point. Without a persistent and unique visitor id, conversions, click-stream analysis, and other metrics dependent on the activities of a unique visitor over time, cannot be accurate. Cookies are used because IP addresses are not always unique to users and may be shared by large groups or proxies. In some cases, the IP address is combined with the user agent in order to more accurately identify a visitor if cookies are not available. However, this only partially solves the problem because often users behind a proxy server have the same user agent. Other methods of uniquely identifying a user are technically challenging and would limit the trackable audience or would be considered suspicious. Cookies are the selected optionWikipedia:Avoid weasel words because they reach the lowest common denominator without using technologies regarded as spyware.
Secure analytics (metering) methods

It may be good to be aware that the third-party information gathering is subject to any network limitations and security applied. Countries, Service Providers and Private Networks can prevent site visit data to go to third parties. All the methods described above (and some other methods not mentioned here, like sampling) have the central problem of being vulnerable to manipulation (both inflation and deflation). This means these methods are imprecise and insecure (in any reasonable model of security). This issue has been addressed in a number of papers , but to-date the solutions suggested in these papers remain theoretic, possibly due to lack of interest from the engineering community, or because of financial gain the current situation provides to the owners of big websites. For more details, consult the aforementioned papers.
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References
[1] The Official DAA Definition of Web Analytics (http:/ / www. webanalyticsassociation. org/ ?page=aboutus) [2] Web Traffic Data Sources and Vendor Comparison (http:/ / www. advanced-web-metrics. com/ docs/ web-data-sources. pdf) by Brian Clifton and Omega Digital Media Ltd [3] Increasing Accuracy for Online Business Growth (http:/ / www. advanced-web-metrics. com/ blog/ 2008/ 02/ 16/ accuracy-whitepaper/ ) - a web analytics accuracy whitepaper [4] "Revisiting log file analysis versus page tagging": McGill University Web Analytics blog article (CMIS 530) Archive (http:/ / web. archive. org/ web/ 20110706165119/ http:/ / web. analyticsblog. ca/ 2010/ 02/ revisiting-log-file-analysis-versus-page-tagging/ ) [5] Web analytics integrated into web software itself (http:/ / portal. acm. org/ citation. cfm?id=1064677. 1064679& coll=GUIDE& dl=GUIDE& CFID=66492168& CFTOKEN=93187844) [6] http:/ / www. jicwebs. org/ [7] http:/ / www. abc. org. uk/ [8] http:/ / www. digitalanalyticsassociation. org/ default. asp?page=aboutus [9] ClickTale Blog Blog Archive What Google Analytics Can't Tell You, Part 1 (http:/ / blog. clicktale. com/ 2009/ 10/ 14/ what-google-analytics-cant-tell-you-part-1/ ) [10] Clicks - Analytics Help (http:/ / www. google. com/ support/ googleanalytics/ bin/ answer. py?hl=en& answer=32981) [11] clickz report (http:/ / www. clickz. com/ showPage. html?page=3489636)
Bibliography
Clifton, Brian (2010) Advanced Web Metrics with Google Analytics, 2nd edition, Sybex (Paperback.) Kaushik, Avinash (2009) Web Analytics 2.0 - The Art of Online Accountability and Science of Customer Centricity. Sybex, Wiley. Mortensen, Dennis R. (2009) Yahoo! Web Analytics. Sybex. Farris, P., Bendle, N.T., Pfeifer, P.E. Reibstein, D.J. (2009) Key Marketing Metrics The 50+ Metrics Every Manager needs to know, Prentice Hall, London. Plaza, B (2009) Monitoring web traffic source effectiveness with Google Analytics: An experiment with time series. Aslib Proceedings, 61(5): 474482. Arikan, Akin (2008) Multichannel Marketing. Metrics and Methods for On and Offline Success. Sybex. Tullis, Tom & Albert, Bill (2008) Measuring the User Experience. Collecting, Analyzing and Presenting Usability Metrics. Morgan Kaufmann, Elsevier, Burlington MA. Kaushik, Avinash (2007) Web Analytics: An Hour a Day, Sybex, Wiley. Bradley N (2007) Marketing Research. Tools and Techniques. Oxford University Press, Oxford. Burby, Jason and Atchison, Shane (2007) Actionable Web Analytics: Using Data to Make Smart Business Decisions. Davis, J. (2006) Marketing Metrics: How to create Accountable Marketing plans that really work John Wiley & Sons (Asia). Peterson Eric T (2005) Web Site Measurement Hacks. O'Reilly ebook. Peterson Eric T (2004) Web Analytics Demystified: A Marketers Guide to Understanding How Your Web Site Affects Your Business. Celilo Group Media Lenskold, J. (2003) Marketing ROI: how to plan, Measure and Optimise strategies for Profit London: McGraw Hill Contemporary Sterne, J. (2002) Web metrics, Proven Methods for Measuring Web Site Success, London: John Wiley & Sons. Srinivasan, J .(2001) E commerce Metrics, Models and Examples, London: Prentice Hall.
Display advertising
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Display advertising
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Display advertising is a type of advertising that typically contains text (i.e., copy), logos, photographs or other images, location maps, and similar items. In periodicals, display advertising can appear on the same page as, or on the page adjacent to, general editorial content. In contrast, classified advertising generally appears in a distinct section, was traditionally text-only, and was available in a limited selection of typefaces. Display advertisements are not required to contain images, audio, or video: Textual advertisements are also used where text may be more appropriate or more effective. An example of textual advertisements is commercial messages sent to mobile device users, or email. One common form of display advertising involves billboards. Posters, fliers, transit cards, tents, scale models are examples of display advertising.
Display advertising
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On the Internet
Display advertising also appears on the Internet, as a form of online advertising. Display advertising appears on web pages in many forms, including web banners. Banner ad standards continue to evolve.
Examples
Typical web banner, sized 46860 pixels.
References
Advertisement from early 20th century
Contextual advertising
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Part of a series on
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Contextual advertising is a form of targeted advertising for advertisements appearing on websites or other media, such as content displayed in mobile browsers. The advertisements themselves are selected and served by automated systems based on the content displayed to the user.
How contextual advertising works

A contextual advertising system scans the text of a website for keywords and returns advertisements to the webpage based on those keywords. The advertisements may be displayed on the webpage or as pop-up ads. For example, if the user is viewing a website pertaining to sports and that website uses contextual advertising, the user may see advertisements for sports-related companies, such as memorabilia dealers or ticket sellers. Contextual advertising is also used by search engines to display advertisements on their search results pages based on the keywords in the user's query. Contextual advertising is a form of targeted advertising in which the content of an ad is in direct correlation to the content of the web page the user is viewing. For example, if you are visiting a website concerning travelling in Europe and see that an ad pops up offering a special price on a flight to Italy, thats contextual advertising. Contextual advertising is also called In-Text advertising or In-Context technology. Apart from that when a visitor doesn't click on the ad in a go through time (a minimum time a user must click on the ad) the ad is automatically changed to next relevant ad showing the option below of going back to the previous ad.
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Service providers
Google AdSense was the first major contextual advertising network.[citation needed] It works by providing webmasters with JavaScript code that, when inserted into webpages, displays relevant advertisements from the Google inventory of advertisers. The relevance is calculated by a separate Google bot, Mediabot, that indexes the content of a webpage. Recent technology/service providers have emerged with more sophisticated systems that use language-independent proximity pattern matching algorithm to increase matching accuracy. Since the advent of AdSense, Yahoo! Bing Network Contextual Ads, Microsoft adCenter, Advertising.com , ads.hsoub.com Sponsored Listings (formerly Quigo) and others have been gearing up to make similar offerings.
Impact
Contextual advertising has made a major impact on earnings of many websites. Because the advertisements are more targeted, they are more likely to be clicked, thus generating revenue for the owner of the website (and the server of the advertisement). A large part of Google's earnings is from its share of the contextual advertisements served on the millions of webpages running the AdSense program. Contextual advertising has attracted some controversy through the use of techniques such as third-party hyperlinking, where a third-party installs software onto a user's computer that interacts with the web browser.[1] Keywords on a webpage are displayed as hyperlinks that lead to advertisers. This sort of advertising also applies to the airline industry, with more airlines offering advertisers the opportunity to advertise on their print-at-home boarding passes, itineraries and confirmation emails. The company driving this trend is Ink, who work with many airlines to help them generate additional revenues.
Agency roles
There are several advertising agencies that help brands understand how contextual advertising options affect their advertising plans. There are three main components to online advertising: 1. creation what the advertisement looks like 2. media planning where the advertisements are to be run 3. media buying how the advertisements are paid for Contextual advertising replaces the media planning component. Instead of humans choosing placement options, that function is replaced with computers facilitating the placement across thousands of websites.
Notes
[1] "Customers Now", David Szetela, 2009
Further references
Ferguson, Renee Boucher. "A Battle Is Brewing Over Online Behavioral Advertising" (http://www.eweek.com/ c/a/Enterprise-Applications/A-Battle-Is-Brewing-Over-Online-Behavioral-Advertising-Market/). www.eweek.com. Retrieved 2008-10-20. Ostrow, Adam. "When Contextual Advertising Goes Horribly Wrong - Mashable" (http://mashable.com/2008/ 06/19/contextual-advertising/). mashable.com. Retrieved 2008-10-20. "FTC Staff Proposes Online Behavioral Advertising Privacy Principles" (http://www.ftc.gov/opa/2007/12/ principles.shtm). www.ftc.gov. Retrieved 2008-10-20. Kenny, D. and Marshall, J. (NovemberDecember 2000). "Contextual Marketing: The Real Business of the Internet" (http://hbswk.hbs.edu/archive/2124.html). Harvard Business Review. Retrieved 2008-07-22.
Behavioral targeting
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Behavioral Targeting refers to a range of technologies and techniques used by online website publishers and advertisers which allows them to increase the effectiveness of their campaigns by capturing data generated by website and landing page visitors. When it is done without the knowledge of users, it may be considered a breach of browser security and illegal by many countries' privacy, data protection and consumer protection laws. When a consumer visits a web site, the pages they visit, the amount of time they view each page, the links they click on, the searches they make and the things that they interact with, allow sites to collect that data, and other factors, create a 'profile' that links to that visitor's web browser. As a result, site publishers can use this data to create defined audience segments based upon visitors that have similar profiles. When visitors return to a specific site or a network of sites using the same web browser, those profiles can be used to allow advertisers to position their online ads in front of those visitors who exhibit a greater level of interest and intent for the products and services being offered. On the theory that properly targeted ads will fetch more consumer interest, the publisher (or seller) can charge a premium for these ads over random advertising or ads based on the context of a site. Behavioral marketing can be used on its own or in conjunction with other forms of targeting based on factors like geography, demographics or contextual web page content. It's worth noting that many practitioners also refer to this process as "Audience Targeting".
Onsite Behavioral Targeting

Behavioral targeting techniques may also be applied to any online property on the premise that it either improves the visitor experience or it benefits the online property, typically through increased conversion rates or increased spending levels. The early adopters of this technology/philosophy were editorial sites such as HotWired,[1][2] online advertising[3] with leading online ad servers,[4] retail or other e-commerce website as a technique for increasing the relevance of product offers and promotions on a visitor by visitor basis. More recently, companies outside this traditional e-commerce marketplace have started to experiment with these emerging technologies. The typical approach to this starts by using web analytics to break-down the range of all visitors into a number of discrete channels. Each channel is then analyzed and a virtual profile is created to deal with each channel. These profiles can be based around Personas that gives the website operators a starting point in terms of deciding what content, navigation and layout to show to each of the different personas. When it comes to the practical problem of successfully delivering the profiles correctly this is usually achieved by either using a specialist content behavioral platform or by bespoke software development. Most platforms identify visitors by assigning a unique id cookie to each and every visitor to the site thereby allowing them to be tracked throughout their web journey, the platform then makes a rules-based decision about what content to serve. Again, this behavioral data can be combined with known demographic data and a visitor's past purchase history in order to produce a greater degree of data points that can be used for targeting. Self-learning onsite behavioral targeting systems will monitor visitor response to site content and learn what is most likely to generate a desired conversion event. Some good content for each behavioral trait or pattern is often established using numerous simultaneous multivariate tests. Onsite behavioral targeting requires relatively high level of traffic before statistical confidence levels can be reached regarding the probability of a particular offer generating a conversion from a user with a set behavioral profile. Some providers have been able to do so by leveraging its large user base, such as Yahoo!. Some providers use a rules based approach, allowing administrators to set the content and offers shown to those with particular traits.
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Network Behavioral Targeting

Advertising Networks use behavioral targeting in a different way than individual sites. Since they serve many advertisements across many different sites, they are able to build up a picture of the likely demographic makeup of internet users.[5] An example would be a user seen on football sites, business sites and male fashion sites. A reasonable guess would be to assume the user is male. Demographic analyses of individual sites provided either internally (user surveys) or externally (Comscore \ netratings) allow the networks to sell audiences rather than sites.[6] Although advertising networks used to sell this product, this was based on picking the sites where the audiences were. Behavioral targeting allows them to be slightly more specific about this.
Privacy and Security Concerns

Many online users and advocacy groups are concerned about privacy issues around doing this type of targeting. This is a controversy that the behavioral targeting industry is trying to contain through education, advocacy and product constraints to keep all information non-personally identifiable or to obtain permission from end-users. AOL created animated cartoons in 2008 to explain to its users that their past actions may determine the content of ads they see in the future.[7] Canadian academics at the University of Ottawa Canadian Internet Policy and Public Interest Clinic have recently demanded the federal privacy commissioner to investigate online profiling of Internet users for targeted advertising. The European Commission (via commissioner Meglena Kuneva) has also raised a number of concerns related to online data collection (of personal data), profiling and behavioral targeting, and is looking for "enforcing existing regulation".[8] In October 2009 it was reported that a recent survey carried out by University of Pennsylvania and the Berkeley Center for Law and Technology found that a large majority of US internet users rejected the use of behavioral advertising. Several research efforts by academicians and others have demonstrated [9] that data that supposedly anonymized can be used to identify real individuals. In March 2011, it was reported that the online ad industry would begin working with the Council of Better Business Bureaus to start policing itself as part of its program to monitor and regulate how marketers track consumers online, also known as behavioral advertising.[10]
Case law
In re DoubleClick FTC regulation of behavioral advertising
Notes and references

[1] Ad Age, Affinicast unveils personalization tool (http:/ / adage. com/ article/ news/ affinicast-unveils-personalization-tool/ 2714/ ), Dec 4, 1996 [2] Chip Bayers, Cover Story: The Promise of One to One (A Love Story) (http:/ / www. wired. com/ wired/ archive/ 6. 05/ one_to_one. html), Wired, May 1998 [3] Carol Emert, Web Advertisers Get New Tool (http:/ / articles. sfgate. com/ 1998-10-19/ business/ 17734632_1_web-ads-ad-servers-millward-brown) SF Chronicle, Oct 19, 1998 [4] Beth Cox, AdKnowledge Offers Millward Brown Interactive's Voyager Profile (http:/ / www. clickz. com/ clickz/ news/ 1702435/ adknowledge-offers-millward-brown-interactives-voyager-profile) ClickZ, June 8, 1999 [5] Wall Street Journal, On the Web's Cutting Edge, Anonymity in Name Only, August 4, 2010 (http:/ / online. wsj. com/ article/ SB10001424052748703294904575385532109190198. html?mod=googlenews_wsj) [6] iMedia Connection article on Behavioral Targeting for Networks in the USA (http:/ / www. imediaconnection. com/ content/ 3297. asp) [7] in [8] Behavioural targeting at the European Consumer Summit (http:/ / www. edri. org/ edri-gram/ number7. 7/ behavoural-target-eu-consumers), 8 April 2009, [9] http:/ / www. net-security. org/ secworld. php?id=8038
[10] adage.com (http:/ / adage. com/ article/ digital/ behavioral-advertising-principles-enforced/ 149228/ )
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Affiliate marketing
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Affiliate marketing is a type of performance-based marketing in which a business rewards one or more affiliates for each visitor or customer brought by the affiliate's own marketing efforts. The industry has four core players: the merchant (also known as 'retailer' or 'brand'), the network (that contains offers for the affiliate to choose from and also takes care of the payments), the publisher (also known as 'the affiliate'), and the customer. The market has grown in complexity, resulting in the emergence of a secondary tier of players, including affiliate management agencies, super-affiliates and specialized third party vendors. Affiliate marketing overlaps with other Internet marketing methods to some degree, because affiliates often use regular advertising methods. Those methods include organic search engine optimization (SEO), paid search engine marketing (PPC - Pay Per Click), e-mail marketing, content marketing and in some sense display advertising. On the other hand, affiliates sometimes use less orthodox techniques, such as publishing reviews of products or services offered by a partner. Affiliate marketing is commonly confused with referral marketing, as both forms of marketing use third parties to drive sales to the retailer. However, both are distinct forms of marketing and the main difference between them is that affiliate marketing relies purely on financial motivations to drive sales while referral marketing relies on trust and personal relationships to drive sales.
Affiliate marketing Affiliate marketing is frequently overlooked by advertisers.[1] While search engines, e-mail, and website syndication capture much of the attention of online retailers, affiliate marketing carries a much lower profile. Still, affiliates continue to play a significant role in e-retailers' marketing strategies.
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History
Origin
The concept of revenue sharingpaying commission for referred businesspredates affiliate marketing and the Internet. The translation of the revenue share principles to mainstream e-commerce happened in November 1994, almost four years after the origination of the World Wide Web. The concept of affiliate marketing on the Internet was conceived of, put into practice and patented by William J. Tobin, the founder of PC Flowers & Gifts. Launched on the Prodigy Network in 1989, PC Flowers & Gifts remained on the service until 1996. By 1993, PC Flowers & Gifts generated sales in excess of $6 million per year on the Prodigy service. In 1998, PC Flowers and Gifts developed the business model of paying a commission on sales to The Prodigy network.[2][3] In 1994, Tobin launched a beta version of PC Flowers & Gifts on the Internet in cooperation with IBM, who owned half of Prodigy.[4] By 1995 PC Flowers & Gifts had launched a commercial version of the website and had 2,600 affiliate marketing partners on the World Wide Web. Tobin applied for a patent on tracking and affiliate marketing on January 22, 1996 and was issued U.S. Patent number 6,141,666 on Oct 31, 2000. Tobin also received Japanese Patent number 4021941 on Oct 5, 2007 and U.S. Patent number 7,505,913 on Mar 17, 2009 for affiliate marketing and tracking.[5] In July 1998 PC Flowers and Gifts merged with Fingerhut and Federated Department Stores.[6] Cybererotica was among the early innovators in affiliate marketing with a cost per click program.[7] In November 1994, CDNOW launched its BuyWeb program. CDNOW had the idea that music-oriented websites could review or list albums on their pages that their visitors might be interested in purchasing. These websites could also offer a link that would take visitors directly to CDNOW to purchase the albums. The idea for remote purchasing originally arose from conversations with music label Geffen Records in the fall of 1994. The management at Geffen wanted to sell its artists' CD's directly from its website, but did not want to implement this capability itself. Geffen asked CDNOW if it could design a program where CDNOW would handle the order fulfillment. Geffen realized that CDNOW could link directly from the artist on its website to Geffen's website, bypassing the CDNOW home page and going directly to an artist's music page.[8] Amazon.com (Amazon) launched its associate program in July 1996: Amazon associates could place banner or text links on their site for individual books, or link directly to the Amazon home page. When visitors clicked from the associate's website to Amazon and purchased a book, the associate received a commission. Amazon was not the first merchant to offer an affiliate program, but its program was the first to become widely known and serve as a model for subsequent programs.[9][10] In February 2000, Amazon announced that it had been granted a patent on components of an affiliate program. The patent application was submitted in June 1997, which predates most affiliate programs, but not PC Flowers & Gifts.com (October 1994), AutoWeb.com (October 1995), Kbkids.com/BrainPlay.com (January 1996), EPage (April 1996), and several others.
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Historic development
Affiliate marketing has grown quickly since its inception. The e-commerce website, viewed as a marketing toy in the early days of the Internet, became an integrated part of the overall business plan and in some cases grew to a bigger business than the existing offline business. According to one report, the total sales amount generated through affiliate networks in 2006 was 2.16billion in the United Kingdom alone. The estimates were 1.35billion in sales in 2005.[11] MarketingSherpa's research team estimated that, in 2006, affiliates worldwide earned US$6.5billion in bounty and commissions from a variety of sources in retail, personal finance, gaming and gambling, travel, telecom, education, publishing, and forms of lead generation other than contextual advertising programs.[12] In 2006, the most active sectors for affiliate marketing were the adult, gambling, retail industries and file-sharing services.[13] The three sectors expected to experience the greatest growth are the mobile phone, finance, and travel sectors. Soon after these sectors came the entertainment (particularly gaming) and Internet-related services (particularly broadband) sectors. Also several of the affiliate solution providers expect to see increased interest from business-to-business marketers and advertisers in using affiliate marketing as part of their mix.[13]
Web 2.0
Websites and services based on Web 2.0 conceptsblogging and interactive online communities, for examplehave impacted the affiliate marketing world as well. The new media allowed merchants to become closer to their affiliates and improved the communication between them. Web 2.0 platforms have also opened affiliate marketing channels to personal bloggers, writers, and independent website owners. Regardless of web traffic, size, or business age, programs through eBay, Google, LinkShare, Clickbank and Amazon allow publishers at all levels of web traffic to place contextual ads in blog posts. Forms of new media have also diversified how companies, brands, and ad networks serve ads to visitors. For instance, YouTube allows video-makers to embed advertisements through Google's affiliate network.
Compensation methods
Predominant compensation methods
Eighty percent of affiliate programs today use revenue sharing or pay per sale (PPS) as a compensation method, nineteen percent use cost per action (CPA), and the remaining programs use other methods such as cost per click (CPC) or cost per mille (CPM, cost per estimated 1000 views).[citation needed]
Diminished compensation methods

Within more mature markets, less than one percent of traditional affiliate marketing programs today use cost per click and cost per mille. However, these compensation methods are used heavily in display advertising and paid search. Cost per mille requires only that the publisher make the advertising available on his website and display it to his visitors in order to receive a commission. Pay per click requires one additional step in the conversion process to generate revenue for the publisher: A visitor must not only be made aware of the advertisement, but must also click on the advertisement to visit the advertiser's website. Cost per click was more common in the early days of affiliate marketing, but has diminished in use over time due to click fraud issues very similar to the click fraud issues modern search engines are facing today. Contextual advertising programs are not considered in the statistic pertaining to diminished use of cost per click, as it is uncertain if contextual advertising can be considered affiliate marketing. While these models have diminished in mature e-commerce and online advertising markets they are still prevalent in some more nascent industries. China is one example where Affiliate Marketing does not overtly resemble the same
Affiliate marketing model in the West. With many affiliates being paid a flat "Cost Per Day" with some networks offering Cost Per Click or CPM.
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Performance/Affiliate marketing
In the case of cost per mille/click, the publisher is not concerned about a visitor being a member of the audience that the advertiser tries to attract and is able to convert, because at this point the publisher has already earned his commission. This leaves the greater, and, in case of cost per mille, the full risk and loss (if the visitor can not be converted) to the advertiser. Cost per action/sale methods require that referred visitors do more than visit the advertiser's website before the affiliate receives commission. The advertiser must convert that visitor first. It is in the best interest for the affiliate to send the most closely targeted traffic to the advertiser as possible to increase the chance of a conversion. The risk and loss is shared between the affiliate and the advertiser. Affiliate marketing is also called "performance marketing", in reference to how sales employees are typically being compensated. Such employees are typically paid a commission for each sale they close, and sometimes are paid performance incentives for exceeding objectives.[14] Affiliates are not employed by the advertiser whose products or services they promote, but the compensation models applied to affiliate marketing are very similar to the ones used for people in the advertisers' internal sales department. The phrase, "Affiliates are an extended sales force for your business", which is often used to explain affiliate marketing, is not completely accurate. The primary difference between the two is that affiliate marketers provide little if any influence on a possible prospect in the conversion process once that prospect is directed to the advertiser's website. The sales team of the advertiser, however, does have the control and influence up to the point where the prospect signs the contract or completes the purchase.
Multi-tier programs
Some advertisers offer multi-tier programs that distribute commission into a hierarchical referral network of sign-ups and sub-partners. In practical terms, publisher "A" signs up to the program with an advertiser and gets rewarded for the agreed activity conducted by a referred visitor. If publisher "A" attracts publishers "B" and "C" to sign up for the same program using his sign-up code, all future activities performed by publishers "B" and "C" will result in additional commission (at a lower rate) for publisher "A". Two-tier programs exist in the minority of affiliate programs; most are simply one-tier. Referral programs beyond two-tier resemble multi-level marketing (MLM) or network marketing but are different: Multi-level marketing (MLM) or network marketing associations tend to have more complex commission requirements/qualifications than standard affiliate programs.[citation needed]
From the advertiser's perspective

Advantages for merchants
Merchants favor affiliate marketing because in most cases it uses a "pay for performance" model, meaning that the merchant does not incur a marketing expense unless results are accrued (excluding any initial setup cost).[15]
Implementation options
Some merchants run their own (in-house) affiliate programs using dedicated software, while others use third-party intermediaries to track traffic or sales that are referred from affiliates. There are two different types of affiliate management methods used by merchants: standalone software or hosted services, typically called affiliate networks. Payouts to affiliates or publishers can be made by the networks on behalf of the merchant, by the network,
Affiliate marketing consolidated across all merchants where the publisher has a relationship with and earned commissions or directly by the merchant itself.
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Affiliate management and program management outsourcing

Uncontrolled affiliate programs aid rogue affiliates, who use spamming,[16] trademark infringement, false advertising, cookie stuffing, typosquatting,[17] and other unethical methods that have given affiliate marketing a negative reputation. Some merchants are using outsourced (affiliate) program management (OPM) companies, which are themselves often run by affiliate managers and network program managers.[18] OPM companies perform affiliate program management for the merchants as a service, similar to the roll an advertising agencies serves in offline marketing.
Types of affiliate websites

Affiliate websites are often categorized by merchants (advertisers) and affiliate networks. There are currently no industry-wide standards for the categorization. The following types of websites are generic, yet are commonly understood and used by affiliate marketers. Search affiliates that utilize pay per click search engines to promote the advertisers' offers (i.e., search arbitrage) Price comparison service websites and directories Loyalty websites, typically characterized by providing a reward system for purchases via points back, cash back Cause Related Marketing sites that offer charitable donations Coupon and rebate websites that focus on sales promotions Content and niche market websites, including product review sites Personal websites Weblogs and website syndication feeds E-mail marketing list affiliates (i.e., owners of large opt-in -mail lists that typically employ e-mail drip marketing) and newsletter list affiliates, which are typically more content-heavy Registration path or co-registration affiliates who include offers from other merchants during the registration process on their own website Shopping directories that list merchants by categories without providing coupons, price comparisons, or other features based on information that changes frequently, thus requiring continual updates Cost per action networks (i.e., top-tier affiliates) that expose offers from the advertiser with which they are affiliated to their own network of affiliates Websites using adbars (e.g. AdSense) to display context-sensitive advertising for products on the site Virtual currency that offers advertising views in exchange for a handout of virtual currency in a game or other virtual platform. File-Sharing: Web sites that host directories of music, movies, games and other software. Users upload content to file-hosting sites, and then post descriptions of the material and their download links on directory sites. Uploaders are paid by the file-hosting sites based on the number of times their files are downloaded. The file-hosting sites sell premium download access to the files to the general public. The web sites that host the directory services sell advertising and do not host the files themselves.
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Publisher recruitment
Affiliate networks that already have several advertisers typically also have a large pool of publishers. These publishers could be potentially recruited, and there is also an increased chance that publishers in the network apply to the program on their own, without the need for recruitment efforts by the advertiser. Relevant websites that attract the same target audiences as the advertiser but without competing with it are potential affiliate partners as well. Vendors or existing customers can also become recruits if doing so makes sense and does not violate any laws or regulations (such as with pyramid schemes). Almost any website could be recruited as an affiliate publisher, but high-traffic websites are more likely interested in (for their own sake) low-risk cost per mille or medium-risk cost per click deals rather than higher-risk cost per action or revenue share deals.[19]
Locating affiliate programs

There are three primary ways to locate affiliate programs for a target website: 1. Affiliate program directories, 2. Large affiliate networks that provide the platform for dozens or even hundreds of advertisers, and 3. The target website itself. (Websites that offer an affiliate program often have a link titled "affiliate program", "affiliates", "referral program", or "webmasters"usually in the footer or "About" section of the website.) If the above locations do not yield information pertaining to affiliates, it may be the case that there exists a non-public affiliate program. Utilizing one of the common website correlation methods may provide clues about the affiliate network. The most definitive method for finding this information is to contact the website owner directly, if a contact method can be located.
Past and current issues

Since the emergence of affiliate marketing, there has been little control over affiliate activity. Unscrupulous affiliates have used spam, false advertising, forced clicks (to get tracking cookies set on users' computers), adware, and other methods to drive traffic to their sponsors. Although many affiliate programs have terms of service that contain rules against spam, this marketing method has historically proven to attract abuse from spammers.
E-mail spam
In the infancy of affiliate marketing, many Internet users held negative opinions due to the tendency of affiliates to use spam to promote the programs in which they were enrolled.[20] As affiliate marketing matured, many affiliate merchants have refined their terms and conditions to prohibit affiliates from spamming.
Search engine spam

As search engines have become more prominent, some affiliate marketers have shifted from sending e-mail spam to creating automatically generated webpages that often contain product data feeds provided by merchants. The goal of such webpages is to manipulate the relevancy or prominence of resources indexed by a search engine, also known as spamdexing. Each page can be targeted to a different niche market through the use of specific keywords, with the result being a skewed form of search engine optimization. Spam is the biggest threat to organic search engines, whose goal is to provide quality search results for keywords or phrases entered by their users. Google's PageRank algorithm update ("BigDaddy") in February 2006the final stage of Google's major update ("Jagger") that began in mid-summer 2005specifically targeted spamdexing with great success. This update thus enabled Google to remove a large amount of mostly computer-generated duplicate content from its index.[21]
Affiliate marketing Websites consisting mostly of affiliate links have previously held a negative reputation for underdelivering quality content. In 2005 there were active changes made by Google, where certain websites were labeled as "thin affiliates".[22] Such websites were either removed from Google's index or were relocated within the results page (i.e., moved from the top-most results to a lower position). To avoid this categorization, affiliate marketer webmasters must create quality content on their websites that distinguishes their work from the work of spammers or banner farms, which only contain links leading to merchant sites. Some commentators originally suggested that affiliate links work best in the context of the information contained within the website itself. For instance, if a website contains information pertaining to publishing a website, an affiliate link leading to a merchant's internet service provider (ISP) within that website's content would be appropriate. If a website contains information pertaining to sports, an affiliate link leading to a sporting goods website may work well within the context of the articles and information about sports. The goal in this case is to publish quality information within the website and provide context-oriented links to related merchant's websites. However, more recent examples exist of "thin" affiliate sites that are using the affiliate marketing model to create value for Consumers by offering them a service. These thin content service Affiliate fall into three categories: Price comparison Cause related marketing Time saving
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Consumer countermeasures
The implementation of affiliate marketing on the internet relies heavily on various techniques built into the design of many web-pages and web-sites, and the use of calls to external domains to track user actions (click tracking, Ad Sense) and to serve up content (advertising) to the user. Most of this activity adds time [citation needed] and is generally a nuisance to the casual web-surfer and is seen as visual clutter. [citation needed] Various countermeasures have evolved over time to prevent or eliminate the appearance of advertising when a web-page is rendered. Third party programs (Ad Aware, SpyBot, pop-up blockers, etc.) and particularly, the use of a comprehensive HOSTS file can effectively eliminate the visual clutter and the extra time and bandwidth needed to render many web pages. The use of specific entries in the HOSTS file to block these well-known and persistent marketing and click-tracking domains can also aid in reducing a system's exposure to malware by preventing the content of infected advertising or tracking servers to reach a user's web-browser. [citation needed]
Adware
Although it differs from spyware, adware often uses the same methods and technologies. Merchants initially were uninformed about adware, what impact it had, and how it could damage their brands. Affiliate marketers became aware of the issue much more quickly, especially because they noticed that adware often overwrites tracking cookies, thus resulting in a decline of commissions. Affiliates not employing adware felt that it was stealing commission from them. Adware often has no valuable purpose and rarely provides any useful content to the user, who is typically unaware that such software is installed on his/her computer. Affiliates discussed the issues in Internet forums and began to organize their efforts. They believed that the best way to address the problem was to discourage merchants from advertising via adware. Merchants that were either indifferent to or supportive of adware were exposed by affiliates, thus damaging those merchants' reputations and tarnishing their affiliate marketing efforts. Many affiliates either terminated the use of such merchants or switched to a competitor's affiliate program. Eventually, affiliate networks were also forced by merchants and affiliates to take a stand and ban certain adware publishers from their network. The result was Code of Conduct by Commission Junction/beFree and Performics,[23] LinkShare's Anti-Predatory Advertising Addendum,[24] and ShareASale's complete ban of software applications as a medium for affiliates to promote advertiser offers.[25] Regardless of the progress made, adware continues to be an issue, as demonstrated by the class action lawsuit against ValueClick and
Affiliate marketing its daughter company Commission Junction filed on April 20, 2007.[26]
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Trademark bidding
Affiliates were among the earliest adopters of pay per click advertising when the first pay-per-click search engines emerged during the end of the 1990s. Later in 2000 Google launched its pay per click service, Google AdWords, which is responsible for the widespread use and acceptance of pay per click as an advertising channel. An increasing number of merchants engaged in pay per click advertising, either directly or via a search marketing agency, and realized that this space was already well-occupied by their affiliates. Although this situation alone created advertising channel conflicts and debates between advertisers and affiliates, the largest issue concerned affiliates bidding on advertisers names, brands, and trademarks. Several advertisers began to adjust their affiliate program terms to prohibit their affiliates from bidding on those type of keywords. Some advertisers, however, did and still do embrace this behavior, going so far as to allow, or even encourage, affiliates to bid on any term, including the advertiser's trademarks. And some affiliates abuse it by bidding on those terms by excluding the location of the advertiser alone in many Search engines.
Compensation disclosure
Bloggers and other publishers may not be aware of disclosure guidelines set forth by the FTC. Guidelines affect celebrity endorsements, advertising language, and blogger compensation.[27]
Lack of industry standards

Certification and training Affiliate marketing currently lacks industry standards for training and certification. There are some training courses and seminars that result in certifications; however, the acceptance of such certifications is mostly due to the reputation of the individual or company issuing the certification. Affiliate marketing is not commonly taught in universities, and only a few college instructors work with Internet marketers to introduce the subject to students majoring in marketing.[28] Education occurs most often in "real life" by becoming involved and learning the details as time progresses. Although there are several books on the topic, some so-called "how-to" or "silver bullet" books instruct readers to manipulate holes in the Google algorithm, which can quickly become out of date, or suggest strategies no longer endorsed or permitted by advertisers.[29] Outsourced Program Management companies typically combine formal and informal training, providing much of their training through group collaboration and brainstorming. Such companies also try to send each marketing employee to the industry conference of their choice.[30] Other training resources used include online forums, weblogs, podcasts, video seminars, and specialty websites. Code of conduct A code of conduct was released by affiliate networks Commission Junction/beFree and Performics in December 2002 to guide practices and adherence to ethical standards for online advertising.
Marketing term
Members of the marketing industry are recommending that "affiliate marketing" be substituted with an alternative name.[31] Affiliate marketing is often confused with either network marketing or multi-level marketing. Performance marketing is a common alternative, but other recommendations have been made as well.[citation needed]
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Sales tax vulnerability

In April 2008 the State of New York inserted an item in the state budget asserting sales tax jurisdiction over Amazon.com sales to residents of New York, based on the existence of affiliate links from New Yorkbased websites to Amazon.[32] The state asserts that even one such affiliate constitutes Amazon having a business presence in the state, and is sufficient to allow New York to tax all Amazon sales to state residents. Amazon challenged the amendment and lost at the trial level in January, 2009. The case is currently making its way through the New York appeals courts.
Cookie stuffing
Cookie stuffing involves placing an affiliate tracking cookie on a website visitor's computer without their knowledge, which will then generate revenue for the person doing the cookie stuffing. This not only generates fraudulent affiliate sales, but also has the potential to overwrite other affiliates' cookies, essentially stealing their legitimately earned commissions.
Click to reveal
Many voucher code web sites use a click-to-reveal format, which requires the web site user to click to reveal the voucher code. The action of clicking places the cookie on the website visitor's computer. In the United Kingdom, the IAB Affiliate Council regulations [33] have stated that "Affiliates must not use a mechanism whereby users are encouraged to click to interact with content where it is unclear or confusing what the outcome will be."
References
[1] [2] [3] [4] [5] [6] [7] Prussakov, Evgenii (2007). "A Practical Guide to Affiliate Marketing" (pp.16-17), 2007. ISBN 0-9791927-0-6. Chicago Tribune, October 4, 1995) The Sunsentinal, 1991 PC Week Article, January 9, 1995 Business Wire, January 24, 2000 Business Wire, March 31, 1999 Collins, Shawn (2000-11-10). History of Affiliate Marketing. ClickZ Network, 10 November 2000. Retrieved on 2007-10-15 from http:/ / www. clickz. com/ showPage. html?page=832131. [8] Olim, Jason; Olim, Matthew; and Kent, Peter (1999-01). "The CDNOW Story: Rags to Riches on the Internet", Top Floor Publishing, January 1999. ISBN 0-9661032-6-2. [9] Frank Fiore and Shawn Collins, "Successful Affiliate Marketing for Merchants", from pages 12, 13 and 14. QUE Publishing, April 2001 ISBN 0-7897-2525-8 [10] Gray, Daniel (1999-11-30). "The Complete Guide to Associate and Affiliate Programs on the Net". McGraw-Hill Trade, 30 November 1999. ISBN 0-07-135310-0. [11] October 2006, Affiliate Marketing Networks Buyer's Guide (2006) (http:/ / www. e-consultancy. com/ publications/ affiliate-marketing-networks-buyers-guide/ ), Page 6, e-Consultancy.com, retrieved June 25, 2007 [12] Anne Holland, publisher (January 11, 2006), Affiliate Summit 2006 Wrap-Up Report -- Commissions to Reach $6.5 Billion in 2006 (http:/ / www. marketingsherpa. com/ barrier. cfm?contentID=3157), MarketingSherpa, retrieved on May 17, 2007 [13] February 2007, Internet Statistics Compendium 2007 (http:/ / www. e-consultancy. com/ publications/ internet-stats-compendium/ ), Pages 149150, e-Consultancy, retrieved June 25, 2007 [14] CellarStone Inc. (2006), Sales Commission (http:/ / www. qcommission. com/ salescommission_details. htm), QCommission.com, retrieved June 25, 2007 [15] Tom Taulli (9 November 2005), Creating A Virtual Sales Force (http:/ / web. archive. org/ web/ 20100601034247/ http:/ / www. forbes. com/ 2005/ 11/ 08/ marketing-ecommerce-internet-cx_tt_1109straightup. html), Forbes.com Business. Retrieved 14 May 2007. [16] Danny Sullivan (June 27, 2006), The Daily SearchCast News from June 27, 2006 (http:/ / www. webmasterradio. fm/ episodes/ index. php?showId=30), WebmasterRadio.fm, retrieved May 17, 2007 [17] Wayne Porter (September 6, 2006), NEW FIRST: LinkShare- Lands' End Versus The Affiliate on Typosquatting (http:/ / www. revenews. com/ wayneporter/ archives/ 002263. html), ReveNews, retrieved on May 17, 2007 [18] Jennifer D. Meacham (July/August 2006), Going Out Is In (http:/ / www. revenuetoday. com/ story/ Going+ Out+ Is+ In), Revenue Magazine, published by Montgomery Research Inc, Issue 12., Page 36
Affiliate marketing
[19] Marios Alexandrou (February 4th, 2007), CPM vs. CPC vs. CPA (http:/ / www. allthingssem. com/ cpm-cpc-cpa/ ), All Things SEM, retrieved November 11, 2007 [20] Ryan Singel (October 2, 2005), Shady Web of Affiliate Marketing (http:/ / www. wired. com/ politics/ security/ news/ 2005/ 02/ 66556), Wired.com, retrieved May 17, 2007 [21] Jim Hedger (September 6, 2006), Being a Bigdaddy Jagger Meister (http:/ / www. webpronews. com/ expertarticles/ 2006/ 06/ 09/ being-a-bigdaddy-jagger-meister), WebProNews.com, retrieved on December 16, 2007 [22] Spam Recognition Guide for Raters (http:/ / www. searchbistro. com/ spamguide. doc) (Word document) supposedly leaked out from Google (http:/ / www. threadwatch. org/ node/ 2709) in 2005. The authenticity of the document was neither acknowledged nor challenged by Google. [23] December 10, 2002, Online Marketing Service Providers Announce Web Publisher Code of Conduct (http:/ / www. cj. com/ news/ press_releases0102/ press_021210. html) (contains original CoC text), CJ.com, retrieved June 26, 2007 [24] December 12, 2002, LinkShare's Anti-Predatory Advertising Addendum (http:/ / www. linkshare. com/ press/ addendum. html), LinkShare.com, retrieved June 26, 2007 [25] ShareASale Affiliate Service Agreement (http:/ / www. shareasale. com/ agreement. cfm), ShareASale.com, retrieved June 26, 2007 [26] April 20, 2007, AdWare Class Action Lawsuit against - ValueClick, Commission Junction and beFree (http:/ / www. cjclassaction. com/ ), Law Firms of Nassiri & Jung LLP and Hagens Berman, retrieved from CJClassAction.com on June 26, 2007 [27] FTC Publishes Final Guides Governing Endorsements, Testimonials (http:/ / www. ftc. gov/ opa/ 2009/ 10/ endortest. shtm). Ftc.gov (2013-06-27). Retrieved on 2013-09-19. [28] Alexandra Wharton (March/April 2007), Learning Outside the Box (http:/ / www. revenuetoday. com/ story/ Learning+ Outside+ the+ Box& readpage=1), Revenue Magazine, Issue: March/April 2007, Page 58, link to online version retrieved June 26, 2007 [29] Shawn Collins (June 9, 2007), Affiliate Millions - Book Report (http:/ / blog. affiliatetip. com/ archives/ affiliate-millions-book-report/ ), AffiliateTip Blog, retrieved June 26, 2007 [30] March/April 2007, How Do Companies Train Affiliate Managers? (http:/ / www. revenuetoday. com/ story/ webextra-issue16-2) (Web Extra), RevenueToday.com, retrieved June 26, 2007 [31] Vinny Lingham (11.October, 2005), Profit Sharing - The Performance Marketing Model of the Future (http:/ / www. vinnylingham. com/ 2006/ 10/ special-report-profit-sharing-the-performance-marketing-model-of-the-future. html),Vinny Lingham's Blog, retrieved on 14.May, 2007 [32] Linda Rosencrance,15.April, 2008), N.Y. to tax goods bought on Amazon (http:/ / www. computerworld. com/ action/ article. do?command=viewArticleBasic& taxonomyName=government& articleId=9077963& taxonomyId=13& intsrc=kc_top), Computerworld, retrieved on 16.April, 2008 [33] IAB, Friday, 27 March 2009 IAB affiliate council strengthens voucher code guidelines (http:/ / www. iabuk. net/ en/ 1/ iabaffiliatemarketingcouncilstrengthensonlinevouchercodebestpracticeguidelines270309. mxs)
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External links
Affiliate marketing (http://www.dmoz.org/Business/Opportunities/Online_Opportunities/ Affiliate_Programs) on the Open Directory Project Website Affiliate Programs (http://dir.yahoo.com/Business_and_Economy/Business_to_Business/ Business_Opportunities/Directories/Web_Site_Affiliate_Programs/) at the Yahoo! Directory Affiliate Programs (http://botw.org/top/Computers/Internet/Web_Design_and_Development/Authoring/ Webmaster_Resources/Affiliate_Programs/) at the BOTW Directory
Cost per action
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Cost per action

Part of a series on
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Cost Per Action or CPA (sometimes known as Pay Per Action or PPA; also Cost Per Conversion) is an online advertising pricing model, where the advertiser pays for each specified action - for example, an impression, click, form submit (e.g, contact request, newsletter sign up, registration etc), double opt-in or sale. Direct response advertisers consider CPA the optimal way to buy online advertising, as an advertiser only pays for the ad when the desired action has occurred. The desired action to be performed is determined by the advertiser. Radio and TV stations also sometimes offer unsold inventory on a cost per action basis, but this form of advertising is most often referred to as "per inquiry". Although less common print media will also sometimes be sold on a CPA basis.
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CPA as "Cost Per Acquisition"

CPA is sometimes referred to as "Cost Per Acquisition", which has to do with the fact that many CPA offers by advertisers are about acquiring something (typically new customers by making sales).
Formula to calculate Cost Per Acquisition

Cost Per Acquisition (CPA) is calculated as: cost divided by the number of acquisitions. So for example, if you spend 100 on a campaign and get 10 acquisitions this would give a cost per acquisition of 10.
PPL as "Pay Per Lead"

PPL is a form of CPA (Cost Per Action), with the action in this case being the delivery of a lead. Online and Offline advertising payment model in which fees are charged based solely on the delivery of leads. In a pay per lead agreement, the advertiser only pays for leads delivered under the terms of the agreement. No payment is made for leads that don't meet the agreed upon criteria. Leads may be delivered by phone under the pay per call model. Conversely, leads may be delivered electronically, such as by email, SMS or a ping/post of the data directly to a database. The information delivered may consist of as little as an email address, or it may involve a detailed profile including multiple contact points and the answers to qualification questions. There are numerous risks associated with any Pay Per Lead campaign, including the potential for fraudulent activity by incentivized marketing partners. Some fraudulent leads are easy to spot. Nonetheless, it is advisable to make a regular audit of the results.
Differences between CPA and CPL advertising

In CPL campaigns, advertisers pay for an interested lead (hence, Cost Per Lead) i.e. the contact information of a person interested in the advertiser's product or service. CPL campaigns are suitable for brand marketers and direct response marketers looking to engage consumers at multiple touch points by building a newsletter list, community site, reward program or member acquisition program. In CPA campaigns, the advertiser typically pays for a completed sale involving a credit card transaction. There are other important differentiators: 1. CPA and affiliate marketing campaigns are publisher-centric. Advertisers cede control over where their brand will appear, as publishers browse offers and pick which to run on their websites. Advertisers generally do not know where their offer is running. 2. CPL campaigns are usually high volume and light-weight. In CPL campaigns, consumers submit only basic contact information. The transaction can be as simple as an email address. On the other hand, CPA campaigns are usually low volume and complex. Typically, consumer has to submit credit card and other detailed information.
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PPC or CPC campaigns

Pay Per Click (PPC) and Cost per Click (CPC) are both forms of CPA (Cost per Action) with the action being a click. PPC is generally used to refer to paid search marketing such as adwords from Google. Cost per click on the other hand is generally used for everything else including, email maketing, display, contextual and more.
Tracking CPA campaigns

With payment of CPA campaigns being on an action being delivered, accurate tracking is of prime importance to media owners. This is a complex subject in itself, however if usually performed in three main ways: 1)Cookie tracking when a media owner drives a click a cookie is dropped on the prospects computer which is linked back to the media owner when the action is performed. 2) Telephone tracking unique telephone numbers are used per instance of a campaign. So media owner XYZ would have their own unique phone number for an offer and when this number is called any resulting actions are allocated to media owner XYZ. Often payouts are based on a length of call (commonly 90 seconds) if a call goes over 90 seconds it is viewed that that there is a genuine interest and a lead is paid for. 3)Promotional codes promotional or voucher codes are commonly used for tracking retail campaigns. The prospect is asked to use a code at the checkout to qualify for an offer. The code can then be matched back to the media owner who drove the sale.
Effective cost per action

A related term, eCPA or Effective Cost Per Action, is used to measure the effectiveness of advertising inventory purchased (by the advertiser) via a CPC, CPI, or CPM basis. In other words, the eCPA tells the advertiser what they would have paid if they had purchased the advertising inventory on a Cost Per Action basis (instead of a Cost Per Click, Cost Per Impression, or Cost Per Mille/Thousand basis).
References
Revenue sharing
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Revenue sharing
Part of a series on
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Revenue sharing has multiple, related meanings depending on context. In business, revenue sharing refers to the sharing of profits and losses among different groups. One form shares between the general partner(s) and limited partners in a limited partnership. Another form shares with a company's employees, and another between companies in a business alliance. On the Internet, revenue sharing is also known as cost per sale, and accounts for about 80% of affiliate compensation programs.[1] E-commerce web site operators using revenue sharing pay affiliates a certain percentage of sales revenues (usually excluding tax, shipping and other 3rd party cost that the customer pays) generated by customers whom the affiliate refer via various advertising methods. Another form of online revenue sharing consists in people working together and registering online in a way similar to that of a corporation, and sharing the proceeds. A third form of revenue sharing on the internet consists of enticing internet users to sign up and create content by offering a share of advertising revenue.
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In taxation
United States government revenue sharing was in place from 1972-1986. Under this policy, Congress gave an annual amount of federal tax revenue to the states and their cities, counties and townships. Revenue sharing was extremely popular with state officials, but it lost federal support during the Reagan Administration. In 1987, revenue sharing was replaced with block grants in smaller amounts to reduce federal revenues given to states.[citation needed] In Canada, revenue sharing refers to the practice in which one level of government shares its revenues with a sub-jurisdictional government. For example, the Government of Canada has a revenue sharing agreement with the provinces for gasoline taxes it collects.
References
[1] AffStat Report 2007 (http:/ / www. affstat. com/ survey. shtml) a study based on survey responses from almost 200 affiliate managers in the marketing industry
External links
A match between suppliers and agents in real life (http://www.astal.com/marketing/revenue_sharing.html) Suppliers pay commission for sale. Agents are people who know they can make a one-time sale. Unlike PPS, the sale is not generated by an advertisement, but by a real life selling effort. A categorized list of internet revenue sharing sites (http://www.reviewerofsites.com/ the-internets-largest-list-of-adsense-revenue-sharing-sites/) - Internet revenue sharing sites share via a variety of income sources, including Google Adsense and Amazon Associates programs.
Mobile advertising
Part of a series on
Internet marketing

Mobile advertising
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Mobile advertising is a form of advertising via mobile (wireless) phones or other mobile devices. It is a subset of mobile marketing.
Overview
Some see mobile advertising as closely related to online or internet advertising, though its reach is far greater currently, most mobile advertising is targeted at mobile phones, that came estimably to a global total of 4.6 billion as of 2009. Notably computers, including desktops and laptops, are currently estimated at 1.1 billion globally. It is probable that advertisers and media industry will increasingly take account of a bigger and fast-growing mobile market, though it remains at around 1% of global advertising spend. Mobile media is evolving rapidly and while mobile phones will continue to be the mainstay, it is not clear whether mobile phones based on cellular backhaul or smartphones based on WiFi hot spot or WiMAX hot zone will also strengthen. However, such is the emergence of this form of advertising, that there is now a dedicated global awards ceremony organised every year by Visiongain. As mobile phones outnumber TV sets by over 3 to 1,[citation needed] and PC based internet users by over 4 to 1,[citation needed] and the total laptop and desktop PC population by nearly 5 to 1,[citation needed] advertisers in many markets have recently rushed to this media.[citation needed] In Spain 75% of mobile phone owners receive ads,[citation needed] in France 62%[citation needed] and in Japan 54%.[citation needed] More remarkably as mobile advertising matures, like in the most advanced markets, the user involvement also matures. In Japan today, already 44% of mobile phone owners click on ads they receive on their phones. Mobile advertising was worth 900 million dollars in Japan alone.[citation needed] According to the research firm Berg Insight the global mobile advertising market that was estimated to 1 billion in 2008.[citation needed] Furthermore, Berg Insight forecasts the global mobile advertising market to grow at a compound annual growth rate of 43 percent to 8.7 billion in 2014.[1] In the Q2 2013 "State of Mobile Advertising Report" by Opera Mediaworks, it is reported that mobile advertising is growing globally at a rapid rate. Rich media ads are now averaging a 1.53 percentage click rate among users. In app large banner adds are still the most popular, but they are on the decline.
Types of mobile ads

In some markets, this type of advertising is most commonly seen as a Mobile Web Banner (top of page) or Mobile Web Poster (bottom of page banner), while in others, it is dominated by SMS advertising (which has been estimated at over 90% of mobile marketing revenue worldwide). Other forms include MMS advertising, advertising within mobile games and mobile videos, during mobile TV receipt, full-screen interstitials, which appear while a requested item of mobile content or mobile web page is loading up, and audio advertisements that can take the form of a jingle before a voicemail recording, or an audio recording played while interacting with a telephone-based service such as movie ticketing or directory assistance. The Mobile Marketing Association and the IAB (Interactive Advertising Bureau) has published mobile advertising guidelines,[2][3] but it is difficult to keep such guidelines current in such a fast-developing area. The effectiveness of a mobile media ad campaign can be measured in a variety of ways. The main measurements are impressions (views) and click-through rates. They are also sold to advertisers by views (Cost Per Impression) or by click-through (Cost Per Click). Additional measurements include conversion rates, such as click-to-call rates and other degrees of interactive measurement. Mobile media can run on a mobile web page or within a mobile application, often referred to as in-App.[4]
Mobile advertising One of the popular models in mobile advertising is Cost Per Install (CPI) where there the pricing model is based on the user installing an App on their mobile phone. CPI Mobile Advertising Networks work either as incent or non-incent. In the incent model the user is given virtual points or rewards to install the game or App.
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Mobile Rich Media

In addition to standard mobile display banners, a growing trend is to include rich media execution within the banner ads. This includes banners that would expand to a larger size, offering advertisers a larger display to communicate their message. Games within the banner to make the experience more interactive or a video within the banner space. There are limitations to rich media on mobile because all of the coding must be done in HTML5, since the iOS does not support flash.
Handsets display and corresponding ad images

There are hundreds of handsets in the market and they differ by screen size and supported technologies (e.g. MMS, WAP 2.0). For color images, formats such as PNG, JPEG, GIF and BMP are typically supported, along with the monochrome WBMP format. The following gives an overview of various handset screen sizes and a recommended image size for each type.[5]
Handset Approx Handset Screen Size (px W x H) 320 x 320 240 x 320 Example Handsets Ad Unit X-Large Large Ad Size (pixels) 300 x 50 216 x 36
X-Large Large
Palm Treo 700P, Nokia E70 Samsung MM-A900, LG VX-8500 Chocolate, Sony Ericsson W910i Motorola RAZR, LG VX-8000, Motorola ROKR E1 Motorola V195
Medium Small
176 x 208 128 x 160
Medium Small
168 x 28 120 x 20
Source: Mobile Marketing Association[6]
History
Martin Cooper invented a portable handset in 1973, when he was a project manager at Motorola. It was almost three decades after the idea of cellular communications was introduced by Bell Laboratories. Two decades later, cellular phones made a commercial debut in the mass market in the early 1990s. In the early days of cellular handsets, phone functionality was limited to dialing, and voice input/output. When the second generation of mobile telecoms (so-called 2G) was introduced in Finland by Radiolinja (now Elisa) on the GSM standard (now the world's most common mobile technology with over 2 billion users) in 1991, the digital technology introduced data services. SMS text messaging was the first such service. The first person-to-person SMS text message was sent in Finland in December 1994. SMS (Short Message Service) gradually began to grow, becoming the largest data service by number of users in the world, currently with 74% of all mobile subscribers or 2.4 billion people active users of SMS in 2007. One advantage of SMS is that while even in conference, users are able to send and receive brief messages unobtrusively, while enjoying privacy. Even in such environments as in a restaurant, caf, bank, travel agency office, and so on, the users can enjoy some privacy by sending/receiving brief text messages in an unobtrusive way. It would take six years from the launch of SMS until the first case of advertising would appear on this new data media channel, when a Finnish news provider offered free news headlines via SMS, sponsored by advertising. This led to rapid experimentation in mobile advertising and mobile marketing, and the world's first conference to discuss mobile advertising was held in London in 2000, sponsored by the Wireless Marketing Association (which later
Mobile advertising merged into the Mobile Marketing Association). The first books to discuss mobile advertising were Ahonen's M-Profits and Haig's Mobile Marketing in 2002. Several major mobile operators around the world launched their own mobile advertising arms, like Aircross in South Korea, owned by the parents of SK Telecoms the biggest mobile operator, or like D2 Communications in Japan, the joint venture of Japan's largest mobile operator NTT DoCoMo and Dentsu, Japan's largest ad agency.
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Mobile as media
This unobtrusive two-way communications caught the attention of media industry and advertisers as well as cellphone makers and telecom operators. Eventually, SMS became a new media - called the seventh mass media channel by several media and mobile experts - and even more, it is a two-way mobile media, as opposed to one-way immobile media like radios, newspapers and TV. Besides, the immediacy of responsiveness in this two-way media is a new territory found for media industry and advertisers, who are eager to measure up market response immediately. Additionally, the possibility of fast delivery of the messages and the ubiquity of the technology (it does not require any additional functionality from the mobile phone, all devices available today are capable of receiving SMS), make it ideal for time- and location-sensitive advertising, such as customer loyalty offers (ex. shopping centres, large brand stores), SMS promotions of events, etc. To leverage this strength of SMS advertising, timely and reliable delivery of messages is paramount, which is guaranteed by some SMS gateway providers. Mobile media has begun to draw more significant attention from media giants and advertising industry since the mid-2000s, based on a view that mobile media was to change the way advertisements were made, and that mobile devices can form a new media sector. Despite this, revenues are still a small fraction of the advertising industry as a whole but are most certainly on the rise. Informa reported that mobile advertising in 2007 was worth $2.2 billion. This is less than 0.5% of the approximately $450 billion global advertising industry.[citation needed] Types of mobile advertising are expected to change rapidly. In other words, mobile technology will come up with a strong push for identifying newer and unheard-of mobile multimedia, with the result that subsequent media migration will greatly stimulate a consumer behavioral shift and establish a paradigm shift in mobile advertising. A major media migration is on, as desktop Internet evolves into mobile Internet. One typical case in point is Nielsens buyout of Telephia.[7] However it should be kept in mind that the rapid change in the technology used by mobile advertisers can also have adverse effect to the number of consumers being reached by the mobile advertisements, due to technical limitations of their mobile devices. Because of that, campaigns that aim to achieve wide response or are targeting lower income groups might be better off relying on older, more widespread mobile advertising technologies, such as SMS.
Viral marketing
As mobile is an interactive mass media similar to the internet, advertisers are eager to utilize and make use of viral marketing methods, by which one recipient of an advertisement on mobile, will forward that to a friend. This allows users to become part of the advertising experience. At the bare minimum mobile ads with viral abilities can become powerful interactive campaigns. At the extreme, they can become engagement marketing experiences. A key element of mobile marketing campaigns is the most influential member of any target audience or community, which is called the alpha user
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Privacy concern
Advocates have raised the issue of privacy. Targeted mobile marketing requires customization of ad content to reach interested and relevant customers. To customize such behavioral personal data, user profiling, data mining and other behavior watch tools are employed, and privacy advocates warn that this may cause privacy infringement.[8] Some mobile carriers offer freebie or cheaper rate plans in exchange for SMS or other mobile ads. However, mobile TV and mobile search may override this privacy concern, as soon as they are implemented on a full-blown basis. In a naive way to override privacy concern, however, Users prior consent needs to be obtained through membership to join or User account to set up. Both mobile TV and mobile search may supersede the way of getting Users prior consent through membership or User account because users are free to choose mobile TV channels or mobile search services on a voluntary basis.
Interactivity
Mobile devices aim to outgrow the domain of voice-intensive cellphones and to enter a new world of multimedia mobile devices, like laptops, PDA phones and smartphones. Unlike the conventional one-way media like TV, radio and newspaper, web media has enabled two-way traffic, thereby introducing a new phase of interactive advertising, regardless of whether static or mobile. This user-centric approach was noted at the 96th annual conference of Association of National Advertisers in 2006, which described a need to replace decades worth of top-down marketing tactics with bottom-up, grass-roots approaches. Many use 2d bar codes to make offline print material more interactive with their mobile device. This has been proven to be successful in Japan, UK, Philippines and has been catching on in Northern America.
Mobile device issues

Coincidentally, however, mobile devices are encountering technological bottlenecks in terms of battery life, formats, and safety issue In a broad sense, mobile devices are categorically broken down into portable and stationary equipment. Technically, mobile devices are categorized as below: Handheld [portable] Laptop, including ultraportable [portable] Dashtop, including GPS navigation, satellite radio, and WiMAX-enabled dashtop mobile payment platforms[fixed on dashboards] The battery life and safety issues will perhaps combine to eventually push mobile equipments inroads into vehicle dashtops. However, satellite-based GPS navigation and satellite radio may already hit a snag because of their part-time usage and technological hierarchy. Put differently, people want more functions than GPS navigation and satellite radios. The trend indicates an ongoing convergence into all-in-one dashtop mobile devices incorporating GPS navigators, satellite radios, MP3 players, mobile TV, mobile Internet, MVDER (vehicle black box), driving safety monitors, smartphones and even video games.
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References
[1] [2] [3] [4] [5] [6] [7] [8] Berg Insight says mobile will account for 11.7 percent of digital ad spend in 2014 (http:/ / berginsight. com/ News. aspx?m_m=6& s_m=1) MMA mobile advertising guidelines (http:/ / www. mmaglobal. com/ mobileadvertising. pdf) iAB mobile advertising guidelines (http:/ / www. iab. net/ iab_products_and_industry_services/ 508676/ mobile_guidance) Prevailing Mobile In-Application Advertising Formats (http:/ / www. iab. net/ mobileadformats) Mobile Marketing Association (MMA) (http:/ / www. mmaglobal. com/ mobileadvertising. pdf). Mobile Marketing Association Mobile Marketing Association http:/ / www. nytimes. com/ 2007/ 06/ 28/ business/ media/ 28adco. html?_r=0 "Online Ads vs. Privacy" (http:/ / www. nytimes. com/ 2007/ 05/ 12/ technology/ 12online. html?ex=1184731200& en=918ecf7f7ad45201& ei=5070)
External links
Association of National Advertisers (http://www.ana.net/) Letting Consumers Control Marketing: Priceless (http://www.nytimes.com/2006/10/09/business/media/ 09adcol.html?ex=1183348800&en=93c51f8d013d75f7&ei=5070)
Digital marketing
Digital marketing is marketing that makes use of electronic devices (computers) such as personal computers, smartphones, cellphones, tablets and game consoles to engage with stakeholders. Digital marketing applies technologies or platforms such as websites, e-mail, apps (classic and mobile) and social networks. Many organisations cross traditional and digital marketing channels.
Marketing
Key concepts

Product marketing Pricing Distribution Service Retail Brand management Brand licensing Account-based marketing Ethics Effectiveness Research Segmentation Strategy Activation Management Dominance Marketing operations Social marketing Identity Promotional contents
Advertising Branding Underwriting spot
Digital marketing

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Direct marketing Personal sales Product placement Publicity Sales promotion Sex in advertising Loyalty marketing Mobile marketing Premiums Prizes Corporate anniversary On-hold messaging Promotional media

Printing Publication Broadcasting Out-of-home advertising Internet Point of sale Merchandise Digital marketing In-game advertising Product demonstration Word-of-mouth Brand ambassador Drip marketing Visual merchandising
e [3]
v t
History
The term 'digital marketing' was first used in the 1990s. In the 2000s and the 2010s, digital marketing became more sophisticated as an effective way to create a relationship with the consumer that has depth and relevance. In 2012 and 2013 statistics showed digital marketing remained a growing field. Digital Marketing is often referred to as 'online marketing' or 'internet marketing'. The term 'Digital Marketing' has grown in popularity over time, particularly in certain countries. In the USA 'online marketing' is still prevalent but in the UK, 'Digital Marketing' has become the most common term.
Types of digital marketing

Two different forms of digital marketing exist:[citation needed] In pull digital marketing, the consumer actively seeks the marketing content, often via web searches or opening an email, text message or web feed[citation needed] Websites, blogs and streaming media (audio and video) are examples of pull digital marketing.[citation needed] In each of these, users have to navigate to the website to view the content. Only current web browser technology is required to maintain static content.[citation needed] Search engine optimization is one tactic used to increase activity. In 2003, Martin et al. found that consumers prefer special sales and new product information, whereas "interesting" content was not useful.
Digital marketing In push digital marketing the marketer sends a message without the recipient actively seeking the content, such as display advertising on websites and news blogs.[citation needed] Email, text messaging and web feeds can also be classed as push digital marketing when the recipient has not actively sought the marketing message.[citation needed] To summarize, Pull digital marketing is characterized by consumers actively seeking marketing content while Push digital marketing occurs when marketers send messages without that content being actively sought by the recipients.
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Multi-Channel Communications
Push and pull message technologies can be used in conjunction. For example, an email campaign can include a banner ad or link to a content download.[citation needed]
Notes References and further reading

Ryan, Damian; Jones, Calvin (2009), Understanding digital marketing: marketing strategies for engaging the digital generation, Kogan Page, ISBN0749453893 Carter, Ben; Brooks, Gregory; Catalano, Frank; Smith, Bud (2007), Digital Marketing for Dummies, John Wiley & Sons, ISBN9780470057933
Article Sources and Contributors
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Internet MKT

Contextual advertising Behavioral targeting Affiliate marketing

Cost per action Revenue sharing Mobile advertising

Streaming media Electronic books Software Retail services

Trading communities Auctions Online wallet Advertising

Payment Ticketing Customer service

Call center Help desk Live support software E-procurement Purchase-to-pay

Search Engine Marketing (SEM)

Social media marketing

Online classified advertising

CPM (Cost Per Mille)

CPC (cost per click)

CPV (cost per view)

Other performance-based compensation

Benefits of Online Advertising

Fraud on the Advertiser

Privacy and Data Collection

Search engine optimization

Search engine optimization

Contextual advertising Behavioral targeting Affiliate marketing

Cost per action Revenue sharing Mobile advertising

Relationship with search engines

Search engine optimization

White hat versus black hat techniques

Search engine optimization

Social media marketing

Social media marketing

Contextual advertising Behavioral targeting Affiliate marketing

Cost per action Revenue sharing Mobile advertising

Social media platforms

2008 US presidential election

Social media marketing

Social media marketing

Social media marketing

Delicious, Digg and Reddit

Social media marketing

Social media marketing tools

Implications on traditional advertising

Social media marketing mishaps

Contextual advertising Behavioral targeting Affiliate marketing

Cost per action Revenue sharing Mobile advertising

Types of email marketing

Comparison to traditional mail

Opt-in email advertising

Benefits of referral programs

Contextual advertising Behavioral targeting Affiliate marketing

Cost per action Revenue sharing Mobile advertising

References External links

Search engine marketing

Contextual advertising Behavioral targeting Affiliate marketing

Cost per action Revenue sharing Mobile advertising

Search engine marketing

Methods and metrics

Comparison with SEO

Search engine marketing

Pay per click

Contextual advertising Behavioral targeting Affiliate marketing

Cost per action Revenue sharing Mobile advertising

Cost per impression

Cost per impression

Contextual advertising Behavioral targeting Affiliate marketing

Cost per action Revenue sharing Mobile advertising