Revised Web Traffic
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SEARCH ENGINE MARKETING
Why Search Engine Marketing (SEM)?
As a way for traffic building to company’s webpage. Building awareness Optimizing online promotions Some terms
Cost per thousand impression (CPM) Click through rate (CTR) Conversion rate (CR) Click stream (CS)
Cost per Thousand Impression (CPM)
Cost per thousand (CPM) is a marketing term referring to the cost of a media vehicle reaching 1,000 members of an audience. The M in CPM is the Roman numeral for 1,000. CPM = (Cost / Number of impressions)*1000 Let's say that you have 465,000 impressions that you're selling for $19,530. What is the CPM? If you said $42, you got it right. If I have $16,400 to spend and the CPM is $64, how many ad impressions can I buy? Cost per thousand (CPM) is important because it is used to compare the cost effectiveness of different media vehicles.
Click Through Rate (CTR)
A ratio showing how often people who see your ad end up clicking it. CTR can be used to gauge how well your keywords and ads are performing. This number is the percentage of people who view your ad (impressions) and then actually go on to click the ad (clicks). The formula for CTR looks like this: (Total Clicks on Ad) / (Total Impressions) *100 = Click Through Rate An ad that is displayed 1,000 times and receives 10 clicks has a click-through rate of 1 percent. The CTR can be an indicator of how relevant an ad is to the searcher or to the audience targeted.
Conversion Rate(CR)
The average number of conversions per ad click, shown as a percentage. Conversion rates are calculated by simply taking the number of conversions and dividing that by the number of total ad clicks that can be tracked to a conversion during the same time period. The typical e-commerce conversion rate lies between 2% and 3%, which means that around 98% of the visitors leave your website without purchasing a product.
Clickstream Analysis
On a Web site, clickstream analysis (sometimes called clickstream analytics) is the process of collecting, analyzing, and reporting aggregate data about which pages visitors visit in what order - which are the result of the succession of mouse clicks each visitor makes (that is, the clickstream) There are two levels of clickstream analysis: traffic analysis and e-commerce analysis. Traffic analysis operates at the server level by collecting clickstream data related to the path the user takes when navigating through the site. Traffic analysis tracks how many pages are served to the user, how long it takes pages to load, how often the user hits the browser's back or stop button, and how much data is transmitted before a user moves on.
Clickstream Analysis
E-commerce-based analysis uses clickstream data to determine the effectiveness of the site as a channel-tomarket by quantifying the user's behavior while on the Web site. It is used to keep track of what pages the user lingers on, what the user puts in or takes out of their shopping cart, and what items the user purchases. What is the most efficient path for a site visitor to research a product, and then buy it? What products do visitors tend to buy together, and what are they most likely to buy in the future? Where should I spend resources on fixing or enhancing the user experience on my website?
Bounce Rate
Bounce Rate is the percentage of single-page sessions (i.e. sessions in which the person left your site from the entrance page without interacting with the page).
Bounce Rate Vs Exit Rate
To understand the difference between Exit Rate and Bounce Rate for a particular page, keep the following points in mind:
For all page views to the page, Exit Rate is the percentage that were the last in the session. For all sessions that start with the page, Bounce Rate is the percentage that were the only one of the session. Bounce Rate for a page is based only on sessions that start with that page.
Bounce Rate Vs Exit Rate
Your site has pages A through C, and only one session per day exists, with the following page view order:
Monday: Page A > Page B > Page C Tuesday: Page B > Page A > Page C Wednesday: Page A > exit Consider that a bounce is the notion of a session with only one interaction from the user, and the session-centric analysis answers a simple yes/no question: "Did this session contain more than one pageview?" If the answer to that question is "no," then it's important to consider which page was involved in the bounce. If the answer is "yes," then it only matters that the initial page in the session lead to other pageviews. For that reason, bounce rate for a page is only meaningful when it initiates the session.
Bounce Rate Vs Exit Rate
Now let's extend this example to explore the Exit rate and Bounce rate metrics for a series of single-session days on your site. Monday: Page B > Page A > Page C Tuesday: Page B > Exit Wednesday: Page A > Page C > Page B Thursday: Page C > Exit Friday: Page B > Page C > Page A
Bounce Rate Vs Exit Rate
The % Exit and Bounce Rate calculations are: Exit Rate: Page A: 33% (3 of 5 sessions included Page A) Page B: 50% (4 of 5 sessions included Page B) Page C: 50% (4 of 5 sessions included Page C) Bounce Rate: Page A: 0% (one session began with Page A, but that was not a single-page session, so it has no Bounce Rate) Page B: 33% (Bounce Rate is less than Exit Rate, because 3 sessions started with Page B, with one leading to a bounce) Page C: 100% (one session started with Page C, and it lead to a bounce)
The Difficult Battle for Web Traffic
1.
2.
Value and Scarcity Online content, attention, and the DiamondWater paradox Novelty no longer generate traffic Spending on traffic building Organic Search Engine Optimization: spending to ensure that search engines rank a site highly relevant in the relevant search criteria & searches “organically” find the listing & the site. Search Engine Marketing (SEM): technology spending to make onsite search more effective (PPC advertising)
The Difficult Battle for Web Traffic
The Difficult Battle for Web Traffic
Sources of Web Traffic
1. 2. 3.
Web Traffic Plan: combination of strategic & tactical choices a company makes to build an active user base. Branding Choices Affiliate Program Online Promotion i. ii. iii. iv.
4.
Banner Advertising Mass Media Advertising WOM Publicity
Search Engine
Traffic Volume and Quality
Typical Visit Pattern
Wine glass plot tool: web visualization tool that presents the average visit pattern of website visitors, either from all visitors or for a target demographic segment of customers.
Star-field tool: spotting problems of over- and under-exposure of individual product items or desirable actions.
Wine Glass Pattern
Wine Glass Pattern
Traffic Volume and Pattern
Suppose a typical customer pass through following four stages before making a purchase: Shown ads Visit websites Compare products Add to wish list / kept in cart Make purchase. The percentage of customers passing through these stages are as follows: Shown ads (100%) Visit websites (25 %) Compare products (10 %) Add to wish list / kept in cart (5%) Make a purchase (1%). What could be the source of problem for such a low buying rate?
Traffic Volume and Pattern
Suppose a typical customer pass through following four stages before making a purchase: Shown ads Visit websites Compare products Add to wish list / kept in cart Make purchase. The percentage of customers passing through these stages are as follows: Shown ads (100%) Visit websites (90 %) Compare products (50 %) Add to wish list / kept in cart (10 %) Make a purchase (5 %). What could be the source of problem for such a low buying rate?
Star-field tool
Size of the box represents sales performance
Width: Product Price
Height: Product margin
Star-field tool
Traffic Volume and Pattern
Typical Visit Pattern
Wine glass plot tool Star-field tool
Cost Per Action (CPA): No. of visitors that make a particular stage (the action) divided by the cost of the campaign. E.g Cost per Impression, CPM, CTR, CR etc.
Cost-per Action
Cost per Action
Suppose a typical customer pass through following four stages before making a purchase: Shown ads Visit websites Compare products Add to wish list / kept in cart Make purchase. The percentage of customers passing through these stages are as follows: Shown ads (100%),Visit websites (25 %),Compare products (10 %) Add to wish list / kept in cart (5%) Make a purchase (1%). Assuming cost per action to be same across stages, i) which stage reflects the most efficient performance in terms of per rupee spent? ii) which stage reflects the least efficient performance in terms of per rupee spent? (D) A
Cost per Action
IF CPM = $ 10.00, CTR = 2%, CR = 5%, then calculate cost per buyer.
IF CPM = $ 10.00, CTR = 2%, CR = 5%, then calculate cost per impression.
IF CPM = $ 10.00, CTR = 2%, CR = 5%, then calculate cost per click-through.
Web Visibility and Competitive Analysis
Website Traffic
One of the companies that provide details on website traffic : Alexa.com Provides data on various parameters related to daily traffic(site popularity) viz. daily page views per visitors, time spend on the website and bounce rate. Upstream Sites: websites visited by people just before coming to the concerned website. Downstream Sites: websites visited by people just after exiting the concerned website.
Traffic Building Goals
Maximize Profit
Customer lifetime value (CLV) vs. unified visit value (UVV) CLV: discounted net present value of the expected profits from a new customer. UVV: full expected benefits arising from a customer visit to a website including branding and purchase benefits. For a new firms, largest impact of UVV comprise of prob. (new customer acquisition) * CLV. For established firms, UVV largest impact through long term branding. Spend on traffic building sources that maximize the difference between CLV (UVV) and online customer acquisition cost. Spent on traffic sources that maximize the difference between unified visit value and cost per visit.
Minimize Cost-per Action
A certain no. of new visitors A certain no. of new registered users providing email address A certain no. of visitors enquiring about a product A certain no. of new customers A certain no. of returning customers
Maximize Actions
Online promotional / engagement activities Online / social networks site polls / quizzes
Search Engine Optimization
Site Optimization (Search Engine Optimization)
The power of “Above the Fold” Search Engine Awareness Use Meta-Tags to Flag Important Concepts Structure website Content Keyword
Cultivate External Links Inline
density
links
Approach
White-hat techniques Black-hat techniques
Keyword Advertising Evaluation
Step 1: Identify possible keywords
Step 2: Expand the list
E.g. Google AdWords keyword planner tool
Step 3: Testing keywords
Review weblogs Keyword length (1/2/3/4 words)
Keywords and their corresponding CTRs and CRs
Step 4: Bid, trim and track
Bid-based listing CTR based listing
HEAT MAP - WEBSITE
GET READY FOR GOOGLE ADWORDS
Why Search Engine Marketing (SEM)?
As a way for traffic building to company’s webpage. Building awareness Optimizing online promotions Some terms
Cost per thousand impression (CPM) Click through rate (CTR) Conversion rate (CR) Click stream (CS)
Cost per Thousand Impression (CPM)
Cost per thousand (CPM) is a marketing term referring to the cost of a media vehicle reaching 1,000 members of an audience. The M in CPM is the Roman numeral for 1,000. CPM = (Cost / Number of impressions)*1000 Let's say that you have 465,000 impressions that you're selling for $19,530. What is the CPM? If you said $42, you got it right. If I have $16,400 to spend and the CPM is $64, how many ad impressions can I buy? Cost per thousand (CPM) is important because it is used to compare the cost effectiveness of different media vehicles.
Click Through Rate (CTR)
A ratio showing how often people who see your ad end up clicking it. CTR can be used to gauge how well your keywords and ads are performing. This number is the percentage of people who view your ad (impressions) and then actually go on to click the ad (clicks). The formula for CTR looks like this: (Total Clicks on Ad) / (Total Impressions) *100 = Click Through Rate An ad that is displayed 1,000 times and receives 10 clicks has a click-through rate of 1 percent. The CTR can be an indicator of how relevant an ad is to the searcher or to the audience targeted.
Conversion Rate(CR)
The average number of conversions per ad click, shown as a percentage. Conversion rates are calculated by simply taking the number of conversions and dividing that by the number of total ad clicks that can be tracked to a conversion during the same time period. The typical e-commerce conversion rate lies between 2% and 3%, which means that around 98% of the visitors leave your website without purchasing a product.
Clickstream Analysis
On a Web site, clickstream analysis (sometimes called clickstream analytics) is the process of collecting, analyzing, and reporting aggregate data about which pages visitors visit in what order - which are the result of the succession of mouse clicks each visitor makes (that is, the clickstream) There are two levels of clickstream analysis: traffic analysis and e-commerce analysis. Traffic analysis operates at the server level by collecting clickstream data related to the path the user takes when navigating through the site. Traffic analysis tracks how many pages are served to the user, how long it takes pages to load, how often the user hits the browser's back or stop button, and how much data is transmitted before a user moves on.
Clickstream Analysis
E-commerce-based analysis uses clickstream data to determine the effectiveness of the site as a channel-tomarket by quantifying the user's behavior while on the Web site. It is used to keep track of what pages the user lingers on, what the user puts in or takes out of their shopping cart, and what items the user purchases. What is the most efficient path for a site visitor to research a product, and then buy it? What products do visitors tend to buy together, and what are they most likely to buy in the future? Where should I spend resources on fixing or enhancing the user experience on my website?
Bounce Rate
Bounce Rate is the percentage of single-page sessions (i.e. sessions in which the person left your site from the entrance page without interacting with the page).
Bounce Rate Vs Exit Rate
To understand the difference between Exit Rate and Bounce Rate for a particular page, keep the following points in mind:
For all page views to the page, Exit Rate is the percentage that were the last in the session. For all sessions that start with the page, Bounce Rate is the percentage that were the only one of the session. Bounce Rate for a page is based only on sessions that start with that page.
Bounce Rate Vs Exit Rate
Your site has pages A through C, and only one session per day exists, with the following page view order:
Monday: Page A > Page B > Page C Tuesday: Page B > Page A > Page C Wednesday: Page A > exit Consider that a bounce is the notion of a session with only one interaction from the user, and the session-centric analysis answers a simple yes/no question: "Did this session contain more than one pageview?" If the answer to that question is "no," then it's important to consider which page was involved in the bounce. If the answer is "yes," then it only matters that the initial page in the session lead to other pageviews. For that reason, bounce rate for a page is only meaningful when it initiates the session.
Bounce Rate Vs Exit Rate
Now let's extend this example to explore the Exit rate and Bounce rate metrics for a series of single-session days on your site. Monday: Page B > Page A > Page C Tuesday: Page B > Exit Wednesday: Page A > Page C > Page B Thursday: Page C > Exit Friday: Page B > Page C > Page A
Bounce Rate Vs Exit Rate
The % Exit and Bounce Rate calculations are: Exit Rate: Page A: 33% (3 of 5 sessions included Page A) Page B: 50% (4 of 5 sessions included Page B) Page C: 50% (4 of 5 sessions included Page C) Bounce Rate: Page A: 0% (one session began with Page A, but that was not a single-page session, so it has no Bounce Rate) Page B: 33% (Bounce Rate is less than Exit Rate, because 3 sessions started with Page B, with one leading to a bounce) Page C: 100% (one session started with Page C, and it lead to a bounce)
The Difficult Battle for Web Traffic
1.
2.
Value and Scarcity Online content, attention, and the DiamondWater paradox Novelty no longer generate traffic Spending on traffic building Organic Search Engine Optimization: spending to ensure that search engines rank a site highly relevant in the relevant search criteria & searches “organically” find the listing & the site. Search Engine Marketing (SEM): technology spending to make onsite search more effective (PPC advertising)
The Difficult Battle for Web Traffic
The Difficult Battle for Web Traffic
Sources of Web Traffic
1. 2. 3.
Web Traffic Plan: combination of strategic & tactical choices a company makes to build an active user base. Branding Choices Affiliate Program Online Promotion i. ii. iii. iv.
4.
Banner Advertising Mass Media Advertising WOM Publicity
Search Engine
Traffic Volume and Quality
Typical Visit Pattern
Wine glass plot tool: web visualization tool that presents the average visit pattern of website visitors, either from all visitors or for a target demographic segment of customers.
Star-field tool: spotting problems of over- and under-exposure of individual product items or desirable actions.
Wine Glass Pattern
Wine Glass Pattern
Traffic Volume and Pattern
Suppose a typical customer pass through following four stages before making a purchase: Shown ads Visit websites Compare products Add to wish list / kept in cart Make purchase. The percentage of customers passing through these stages are as follows: Shown ads (100%) Visit websites (25 %) Compare products (10 %) Add to wish list / kept in cart (5%) Make a purchase (1%). What could be the source of problem for such a low buying rate?
Traffic Volume and Pattern
Suppose a typical customer pass through following four stages before making a purchase: Shown ads Visit websites Compare products Add to wish list / kept in cart Make purchase. The percentage of customers passing through these stages are as follows: Shown ads (100%) Visit websites (90 %) Compare products (50 %) Add to wish list / kept in cart (10 %) Make a purchase (5 %). What could be the source of problem for such a low buying rate?
Star-field tool
Size of the box represents sales performance
Width: Product Price
Height: Product margin
Star-field tool
Traffic Volume and Pattern
Typical Visit Pattern
Wine glass plot tool Star-field tool
Cost Per Action (CPA): No. of visitors that make a particular stage (the action) divided by the cost of the campaign. E.g Cost per Impression, CPM, CTR, CR etc.
Cost-per Action
Cost per Action
Suppose a typical customer pass through following four stages before making a purchase: Shown ads Visit websites Compare products Add to wish list / kept in cart Make purchase. The percentage of customers passing through these stages are as follows: Shown ads (100%),Visit websites (25 %),Compare products (10 %) Add to wish list / kept in cart (5%) Make a purchase (1%). Assuming cost per action to be same across stages, i) which stage reflects the most efficient performance in terms of per rupee spent? ii) which stage reflects the least efficient performance in terms of per rupee spent? (D) A
Cost per Action
IF CPM = $ 10.00, CTR = 2%, CR = 5%, then calculate cost per buyer.
IF CPM = $ 10.00, CTR = 2%, CR = 5%, then calculate cost per impression.
IF CPM = $ 10.00, CTR = 2%, CR = 5%, then calculate cost per click-through.
Web Visibility and Competitive Analysis
Website Traffic
One of the companies that provide details on website traffic : Alexa.com Provides data on various parameters related to daily traffic(site popularity) viz. daily page views per visitors, time spend on the website and bounce rate. Upstream Sites: websites visited by people just before coming to the concerned website. Downstream Sites: websites visited by people just after exiting the concerned website.
Traffic Building Goals
Maximize Profit
Customer lifetime value (CLV) vs. unified visit value (UVV) CLV: discounted net present value of the expected profits from a new customer. UVV: full expected benefits arising from a customer visit to a website including branding and purchase benefits. For a new firms, largest impact of UVV comprise of prob. (new customer acquisition) * CLV. For established firms, UVV largest impact through long term branding. Spend on traffic building sources that maximize the difference between CLV (UVV) and online customer acquisition cost. Spent on traffic sources that maximize the difference between unified visit value and cost per visit.
Minimize Cost-per Action
A certain no. of new visitors A certain no. of new registered users providing email address A certain no. of visitors enquiring about a product A certain no. of new customers A certain no. of returning customers
Maximize Actions
Online promotional / engagement activities Online / social networks site polls / quizzes
Search Engine Optimization
Site Optimization (Search Engine Optimization)
The power of “Above the Fold” Search Engine Awareness Use Meta-Tags to Flag Important Concepts Structure website Content Keyword
Cultivate External Links Inline
density
links
Approach
White-hat techniques Black-hat techniques
Keyword Advertising Evaluation
Step 1: Identify possible keywords
Step 2: Expand the list
E.g. Google AdWords keyword planner tool
Step 3: Testing keywords
Review weblogs Keyword length (1/2/3/4 words)
Keywords and their corresponding CTRs and CRs
Step 4: Bid, trim and track
Bid-based listing CTR based listing
HEAT MAP - WEBSITE
GET READY FOR GOOGLE ADWORDS
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