The end of the term is approaching and the Internet Marketing course is almost complete. I have to say that it was an amazing experience and I learned a lot of stuff useful for my personal entrepreneurial venture. My idea is not well defined yet, but it's in the digital world.
So, this is my last post as Guinea Pig. It was a pleasure to be a Guinea Pig.. The new students will take benefit of our class' blogs and feedbacks. I am sure the course will become even better.
I will possibly start a new blog and I will let you know.For now I will focus on some ideas to start the new business. Nevertheless, I'd like to thank those that followed Guinea Pig's blog and made comments, provided feedback and had fun!
For those who love figures, this blog has got (so far):
547 Visits
1,212 Page views
161 Unique visitors from 20 different countries
4:30 Average time on site
20 Clicks on Ads, totaling $19.11 (that I will never receive as it's <$100!) - The good news is that I was not banned from Google (as some thought/wanted hehehe)
14 videos
74 comments by 56 (intense debate) readers
As usual, videos to finish.
For the optmistics..
..for the pessimists..
and for all..
it's been nice.. will we ever meet again, in the digital world.
First of all I would like to anticipate that this is a very controversial and provocative post!
I want to get your view on it....
I was wondering why people use social networks. The intent, initially, are to catch up with friends, share a piece of your life and etc. However , I think some, if not most, use the tool to really show off!! I cannot prove or support well this argument, but I have a feeling that it is true...
People show off their trips, jobs, number of friends and others. Very often it's unnecessary or strange to have your life exposed to anyone. For example, we know that one can handle 120 friendships via social networks (Laura's post)... but some really want to have 1000+ friends! As mentioned in class in the past, human being loves ranks and number of friends might be a sign of status.. to say "I am pop!" .. is it?
Recently, reading Hamish's blog, I've got to know Secret Twitter .. very interesting because it's anonymous and you can read what really goes in people's minds. Having fun and being really scared after reading some "secrets" there....
Well, if the user's goals are to show off... Twitter is THETOOL! Because you can share whatever you're doing whenever you can.. Just to illustrate, look at the distribution of number of tweets per user per day:
So, there is one lonely soul tweeting more than 200 times a day?!?!??!? WTF!
Here is some data on Social Networks (source: eMarketer)
Finally, the unanswered question still be how much of your time would you use to tweet and why? I have no idea.
Yep. Brazil is written with "s" in Portuguese, our native language.
This weekend Carnaval started in Brazil, it goes 'til Tuesday, Wednesday is the day to recharge batteries to be back to work on Thursday! The entire country stops for Carnaval party.
In this video a documentary of Brazilian Carnaval...
Apple announced early January 2009 that its iTunes store will change current pricing strategy to adopt variable pricing. This decision was based on negotiations with major music labels, who believe this pricing strategy would be more profitable (to them ) and fair (to consumers). In return, iTunes will be able to sell DRM-free music.
Curious enough to know that despite the implementation of DRM, Apple increased sales through selling songs individually and at a fixed price ($0.99 USD) and became the leading online music store in the world.
The new variable pricing strategy on iTunes is a typical first-degree price discrimination where songs are valued at three price points: US $0.69, $0.99 and $1.29. Interesting that the average price point remains the same (US $0.99). So it seems to be a bet on price elasticity and higher profitability.
The major music labels say this strategy will let them sell music at a lower price. Of course, the converse is also true: selling in-demand music at a higher premium is really what the industry is after. But price differences stimulate thinking and change perceptions. Pricing definitely sends a signal. People might come to believe that "you get what you pay for". With that in mind, variable pricing would imply that the cheaper product is worse? Possibly yes.
This argument does raise another interesting point. Ultimately variable prices rely on supply and demand. It doesn't take an MBA to realize that popular tracks would increase in price and unpopular ones would decrease. But because we're not dealing in physical formats, why should higher demand mean higher cost? After all, there's no scarcity of stock for popular music sold on iTunes: in theory, it can be downloaded by an infinite number of people. Will Yield Management be the fate of digital music?
I was curious about what the financial markets thoughts were during the announcement (CEO presented the strategy around 12:30) and extracted the day trade of Apple that day. Guess what, analysts did not like the variable pricing idea. The stocks started to tumble right after Keynote speech finished.
If variable pricing is a risk, these alternatives come to my mind..
Re-bundling: implementation of incentives for album purchases (Rhapsody does that);
Effective Yield Management;
Boost sales through mobile devices, such as the iPhone, via 3G networks. Mobile buyers are those that usually buy by impulse and less price sensitive, which means more profitability. The real issue in this modality is billing. People are much more comfortable with paying through a carrier, but the iTunes store provides the ideal and safe platform to buy without have a third intermediary (carrier).
Just to understand your view, I'd like to invite you to take the following poll..
..there will be a lot of interesting stuff out there. There is a blog I use to read, wrote by Mac Funamizu, an in-house web/graphic designer working in Tokyo, Japan. He has some "disturbing" ideas about the future of search and electronic devices.
I post below some images of Mac's work so that you can reflect about what internet marketing possibilities will be in the future.
I was wondering if the high tech developments go in this way, computer and mobiles will truly converge into one device. Are the advertising investments moving the same way?
In December 2008, Frost & Sullivan estimated that mobile subscriptions would just pass 50% worldwide in 2013.
and ad spending is going towards search and video..
...in mobiles (wow!)...
..and the ad spending split on mobile advertising...
This table does not include the ads on games, which is becoming very common now. In the last 2 weeks I have been witnessing ad banners in my free iPhone apps (including games). So now the free apps' business model makes sense financially.
Last week I took some time to explore Google Analytics in further details and learnt a lot about my blog and its readers. First I was surprised by the number of unique visitors, which exceeds the class size by far.. and 600+ page views. Guinea Pig is very grateful for its loyal readers!
Well, in one day Guinea Pig published a long post (although it's difficult for him to type as you may see in the profile picture) and put a very popular Youtube Video. The result? 24 new unique visitors, 56 page views with a record time on site of 10:27. So, the million dollar question is: Did it happen because of the video or the larger post?
A consultant would say "It depends" and actually he will be right. There is no "one-size-fits-all" for blog posts' size and from what I 've been reading online, it will depend a lot on the type of blog, content, readers expectations and so on.
Some hugely popular blogs post 1500 words less often while equally popular blogs post several 200-300 word posts in a day. It’s about matching the content/reader/writer in a way that works. In fact some blogs are wildly successful with 150-word posts [negotiable?]. Again, sometimes, less is more.
Conversely, long posts (over 1000 words) should be used sparingly and formatted carefully. It’s proven fact that it’s hard on the human eye to read long articles online. Contrast on a computer screen is lower than for print pages. Your eyes get tired faster. It’s harder to concentrate. Long expanses of text should be broken up with short paragraphs, bullet points and images
In the end, some blogs' size will not matter at all! Value in these blogs comes in all shapes and sizes, but only in 3 flavors:
Massively informative
Hugely entertaining
Deeply insightful/inspirational or provocative
Week 5 notes soon available.
Should I finish the post with a question to boost comments or a video? The video answers our question....
1) An example of Overlay Video Ad sponsored by Amazon.com. It starts at 00:10. Overlay Ad – an ad that appears in the bottom 20% of the video window. Click action generally initiates a linear video ad spot or takes the user to a website; also commonly referred to as an Invitation Unit.
2) A response to the comment "virtually" accusing me of click FRAUD!
Since I became Guinea Pig, I started reading more about the internet business, marketing opportunities and online tools. And AdSense was one of them. I installed it in this blog and made $15.70 in three weeks! Is it attractive to be a professional blogger after the MBA? Let's see:
My base case: Simple blog, 320 page views from UK, US, Canada and Brazil. Three AdSense components: content, search and feed. Implemented: 1 super search, 3 content ads and 1 feed ad. And the results are:
So, let's say that as a professional blogger I would, write interesting topics with a goal of a $200,000 salary. Assuming that the number of clicks on ads will raise linearly with number of unique visitors, and that ads' content will be more accurate as I post more content, the back of envelope calculation tells me that I would need 10,043 page impressions and 100,057 queries on my super search (per day!).
Do you think it's a good idea to be a professional blogger?
Some week 3 notes...
Web Chain – is the sequence of steps taken as the result of an online contact. It can be as short as a single click. NNR – No Notice Rate CTR – Click Through Rate (1-NNR)(1-CTR) = User notices Ad but doesn’t click (In practice, difficult to measure/identify) Google made a study on eye-tracking. Find more details on Internet Marcoting.
PCR – Prospect Conversion Rate OIB – Offline Induced Buy Rate RR – Repeat Buyer Rate OBR – Offline Buying Rate LTV (or CLV) – Customer Lifetime Value. It’s the present value of the potential cash flow generated by the customer relationship. Customer Equity = LTV + First Purchase Contribution – Acquisition Cost Web benefits to firms can come in two different flavors: Improved Processes and Revenue Benefits.
They way an engineer summaries it:
It’s important that the Brand Strategy is connected to Online Presence. To do so, we can work on Customer-based brand equity. Refer to Keller’s framework.
Domain Name – Hierarchical naming structure that provides a symbolic representation of hosts on Internet. (Example: London.edu). It’s part of the organization’s brand on Internet. One domain name can be linked to different IP addresses. One IP address can have several alias or domain names. A good domain name will boost Memorability. Are you confused? get to know why here.
IP – Internet Protocol IP address – example 192.168.0.1 “Lean back” media consumption - prospective consumers are in a passive entertainment mode (TV ad).
“Lean-forward” media – online users are more in a problem-solving mode Internet is the natural glue for integrated marketing: Advertising, Sponsorships, Promotions, PR and e-mail.
It was mentioned today in class, and I just saw the latest version on TV. It was launched 3 days ago - already in YouTube. Several versions uploaded to YouTube, sums +100,000 visits in 3 days !!!
Best so far.
I wonder how Cadbury's online marketing team is capitalizing on it...
Today, we’ve got some interesting insights from the guest speaker… and some abbreviations. So, week 2 list is…
ARPU – Average Revenue per User.
SEO – Search Engine Optimization. WiFi - Usually referred as wireless internet, but.. is a trademark of the Wi-Fi Alliance, founded in 1999 as WECA (Wireless Ethernet Compatibility Alliance). The organization comprises more than 300 companies, whose products are certified by the Wi-Fi Alliance, based on the IEEE 802.11 standards (also called WLAN (Wireless LAN) and Wi-Fi). This certification warrants interoperability between different wireless devices. SMS (or Text) – Short message service, via mobile phone. RSS – Really Simple Syndication. HTML – Hyper text Markup Language. Metcalf’s Law – Translates the number of connections in a network into value for the network. With everyone connected we have: n(n-1)/2 conversations and a value of n(n-1)*$. The community value is the sum of individual values in the network. Opt-In – the user must give permission before any use of personalized info. Opt-Out – the user can choose not to receive any solicitation. Otherwise, his/her information (incl. e-mail) can be used or sold. Spam – rubbish e-mails one receives. Interesting that “Spam is a popular Monty Python sketch, first televised in 1970. In the sketch, two customers are trying to order a breakfast from a menu that includes the processed meat product in almost every dish. The term spam (in electronic communication, and general slang) is derived from this sketch”
Why I receive so much spams?
There are several reasons. One common reason is that your e-mail address was sold by a website you registered to (Opt-Out or No Restrictions), the other one is by accessing “unethical” websites (warez, crack, MP3 downloads or porn) that reads your e-mail inside local cookie files… latest browsers might protect you against it. RFID – Radio Frequency Identification. Works by embedding a small; electronic circuit into the labeling of a package. Allows for tracking just as a FEDEX package.
Individualization allows the online world to? Be more adaptative, secure and intelligent.
Useful category breakdown of online user activity is: commerce, communications, content and search.
Do you remember those traveler reviews on Expedia website? They are an example of “Quality Cues”.
The Hidden Pixel – A method of multi-site cookie. It hides an image file in the same color of the background. Invisible to the user. Used to outsource website tracking to a firm specializing in online metrics.
Video killed the radio star, so what comes next?
If you care to help Guinea Pig fund his MBA, please visit my sponsor's website (link on the right) :-)
Although I use to read lots of blogs, I’ve never imagined myself writing one. Yes, we all will have to; I mean the Internet Marketing class.
Internet Marketing is a new elective course at London Business School by Prof Dan Goldstein, also new are the teaching tools and method. First of all, there is no course binder, but a book / no info in the school’s portal, but in the blogs / I wonder it hadn’t a final quiz too.. Nobody knows how it’s going to be or end, that’s why I consider myself a Guinea Pig in this course.
Ok, so lets get down to what I am planning to write in my blog. I’ve heard today in class that we will have to understand, and remember, all terminologies abbreviations, technologies and etc. Time for MEMORIZATION! For this reason I will mostly write about those terminologies so that you don’t need to get any INTELECTOL® tablets.
For Week 1 they are:
Virtuous Cycle for Net Growth Web sites/content > Consumer and Business internet access > Popular fascination.. and back again
Re-check the Production, Selling and Brand Management concepts
GPT General Purpose Technologies: Fundamental breakthroughs, causing numerous spin-offs and associated inventions
The three GPT Digital Revolution, Networking and Individualization
DNI Digital Network Individualization
Moore Law The number of transistors that can be placed inexpensively on an integrated circuit has increased exponentially, doubling approximately every 18 months (applies to other contexts)
Digital Convergence Merging of industries, technologies and content that used to be separated (ie. iPhone).
Steps in Digitizing Marketing Archive > Substitute > Redesign
Surround Picture Technology IPX Used to perform a 3D scan of something
IMDB Internet Movie Database
CPC Cost per Click
CPA Cost per Action (corrected - thx to Davexpc)
ah, a video to kickstart Internet Marketing mindset....
