July 2010
In general we tend to use things without looking beyond the obvious; particularly, we use the internet without thinking about what is going on behind the scenes. Recently, I read "
The Long Tail" by Chris Anderson and I was so fascinated by the fundamental changes taking place that I read more about the internet. And that led me to the field of Internet Marketing. Also known as Marketing 2.0.
What this blog post will try to do is put a context around terms like Search Engine Optimization, Blog Marketing, Link Building, Pay per Click (PPC) and the like.
BackgroundThe core function of any business is selling. What fuel is to a car, money is to business - it makes the business run. And selling is what produces the money. Selling takes place when there is demand. And advertising creates demand.
Advertising is all about getting the message for a product or service in front of the largest possible audience. And so far, that message was best conveyed by television and supported by print media and outdoor advertising.
But recently (since 2006 or so), it has been observed that a significant part of the audience has changed their habits and have started spending more time on the internet rather than in front of the TV. Which necessitates businesses to spread the message about their products or services via this new medium in addition to broadcasts.
The Problem with the InternetThe question of how to get your message to your audience through the internet is a tricky one. The internet is a very different medium from the media we are generally accustomed to. What we are accustomed to is a broadcast medium - TV, newspapers, magazines etc.
These media have content ( like TV programs and news and articles) that the audience wants to consume. And riding on top of this content are the messages that advertisers want to push to the audience. And if you can have the message ride on the most popular content, then the largest number of people get to see it.
But the internet is not like that: it is not a broadcast medium. It is defined by a "pull" model. Each member of the "audience" decides what content he or she wants to consume (i.e. pull). So, how does an advertiser get the message about the product to the scattered audience?
A number of options have evolved over the last ten or so years.
Web SitesAlmost all companies now have a presence on the internet in the form of a web site. In fact, most large selling products have their own dedicated web sites too. And this is a very powerful medium for getting the advertising message across to the audience. The web site
is the advertiser's content. Once a member of the audience visits the site, it is like having him in the company store. All the products, all the messages are right there.
The problem for a business is to get the audience to their site. There is obviously no reason that the general audience is going to flock to a company web site like they would to watch a blockbuster movie. However, a potential buyer of the business' product is a likely visitor to the web site.
So there are really two problems to be solved. The larger problem is that of getting the message out to the general audience in order to create demand. The smaller (but equally significant) problem is related to getting a potential buyer to visit a company web site - this second problem is addressed by search engine optimization techniques described next.
Search Engine OptimizationOn the internet, the way a user navigates to web sites is through search engines, mainly google although other search engines are also getting popular (see
now-relevant for example). But google is by far the most widely used. The user types in a phrase that conveys the essence of what is of interest and the search engine responds with a list of web sites that match the criteria.
The user typically visits the top few sites from the list of search results before moving on to other things (typically via another search). So, it is imperative that the business' web site comes up in the top few entries in the list for the relevant search criteria. For example, a carpet cleaning service in Redington, WY should come up in the top few sites when a user specifies a search criteria of "carpet cleaners Redington".
Making this happen is called search engine optimization. It involves understanding the basis that search engines use to match results to search criteria and then making your web site comply with that basis. It includes techniques like link building, keyword management and others. There are specialist internet marketing professionals (and businesses) who perform search engine optimization for web sites.
Banner AdsWe now come to the point of addressing the larger problem of getting an advertiser's message out to the general audience on the internet. Banner ads was the earliest form of advertising on the internet. And it followed the familiar model from the TV and print media.
The basic proposition was (from the advertiser to the web site owner): since your site has so many visitors in a month, I will pay you X dollars to display my ad to N visitors on your site.
The most prominent location for the ad on a web page is the top banner on the web site's home page. There are other locations on the home page and other pages in the web site and correspondingly the terms of the proposition change. But the model is identical to the conventional one.
Ad ServersThe problem of putting banner ads on web sites is not a simple one to solve. Lets say you have a business that rents cars in a local area like a town. You want to advertise this on the web and you identify certain web sites that are related to your town like cultural web sites, web sites advertising other services, travel web sites and so on.
How do you get your ad on the web sites you selected? Getting the ad out there means that the HTML of the web site has to be changed. Every time you want to add a new service or feature, you need to change the ad and therefore the web site.
The solution to this problem is provided by a technology called Ad Servers. An ad server is a computer server that stores advertisements and delivers them to website visitors. The web master for the web site makes certain changes (on a one-time basis) to accommodate the ad server. Now, whenever a visitor navigates to the web site, the web site makes a request for an ad from the ad server.
So the visitor sees the content provided by the web site and the banner and other placeholders are filled in by the ad server.
Pay Per Click (PPC) AdvertisingThe banner ad model worked well enough but google came up with a brilliant invention which made advertising on the internet extremely attractive to advertisers. Since google is in the search engine business, they know what a user is looking for and their proposal to advertisers was "I will display a link to your web site whenever the user enters an advertiser-specified set of terms in the search criteria". Google displays these links separately from the search results. But google sweetened the proposal by saying "I will only charge you if a visitor clicks on the link". This was the origin of the pay per click model. It worked like magic for google.
This model was now extended to other web sites. Just as you have banner ads, you have pay per click ads on web sites. These are also served by ad servers. The only difference is that the PPC ads are tracked by the ad server. So if a visitor clicks on a PPC ad, the ad server is notified before the visitor navigates to the advertiser's web site. The ad server collects information as to which ads were clicked on on each web site it serves to and that forms the basis of the advertising payout.
To increase exposure of the ad, there are web sites that use the inducement of micropayments (1 cent per click) to invite users to click through the ads thereby increasing the exposure to the advertiser's message.
BlogsAlthough advertising is a very effective way of getting the message about the product to the audience, there has traditionally been another channel for the same purpose - PR or public relations. In the broadcast medium, this involves working with a journalist who has to be convinced that the product has "news" value and who then writes up a message about the product. This has had a downside too - the journalist may or may not print exactly what you have in mind and may pursue external sources which may say something negative about your product too.
Blogs extend this channel to the internet with the same positives and negatives. And of course, there are no journalists here. The starting point is to create a blog about your product and it has to contain something novel. Plus you have to offer something "free" like a promotion. And you have to get the blog to show up on search engine results (via search engine optimization techniques).
Once this is done, depending on the novelty of the offering, blog posts start appearing which reference your product through your original blog. These blog posts by other people form the function of public relations in broadcast media.
Of course, an advertiser can (and should) write large number of blogs about the product, each trying to explain different dimensions of the benefits of the product.