CHAPTER 8· INTERACTIVE MARKETING COMMUNICATIONS
Table 8.5 Summary of the strengths and weaknesses of different communications tools for promoting an
online presence
Promotion technique Main strengths Main weaknesses
1a Search engine Highly targeted, relatively low cost cf PPC. Intense competition, may compromise look
optimisation (SEO) High traffic volumes if effective of site. Changes to ranking algorithm
1b Pay-per-click (PPC) Highly targeted with controlled cost Relatively costly in competitive sectors and
marketing of acquisition low volume compared with SEO
1c Trusted feed Update readily to reflect changes Relatively costly, mainly relevant for
in product lines and prices e-retailers
2 Online PR Relatively low cost and good targeting. Setting up a large number of links can be
Can control links-in time-consuming. Need to monitor
comments on third-party sites
3a Affiliate marketing Payment is by results (e.g. 10% of sale or Costs of payments to affiliate networks
leads goes to referring site) for set-up and management fees. Changes
to ranking algorithm may affect volume
from affiliates
3b Online sponsorship Most effective if low-cost, long-term May increase awareness, but does not
co-branding arrangement with necessarily lead directly to sales
synergistic site
4 Interactive advertising Main intention to achieve visit, i.e. direct Response rates have declined historically
response model. Useful role in branding because of banner blindness
also
5 E-mail marketing Push medium – can’t be ignored in user’s Requires opt-in for effectiveness. Better
inbox. Can be used for direct response for customer retention than for acquisition?
link to web site Inbox cut-through – message diluted
amongst other e-mails. Limits on
deliverability
6 Viral marketing With effective creative possible to reach Difficult to create powerful viral concepts
a large number at relatively low cost and control targeting. Risks damaging
brand since unsolicited messages may
be received
Traditional offline Larger reach than most online techniques. Targeting arguably less easy than online.
advertising (TV, Greater creativity possible, leading to Typically high cost of acquisition
print, etc.) greater impactTable 8.6Relative effectiveness of different forms of marketing communications for a
B2C companyMedium Budget % Contribution % Effectiveness
Print (off) 20% 10% 0.5
TV (off) 25% 10% 0.25
Radio (off) 10% 5% 0.5
PR (off) 5% 15% 3
Word of mouth (off) 0% 25% Infinite
Banners (on) 20% 20% 1
Affiliate (on) 20% 10% 0.5
Links (on) 0% 3% Infinite
Search engine registration (on) 0% 2% Infinite