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The biggest benefit of digital media delivery is in advertising. Most media earn their money by displaying advertising. The bulk of newspaper and magazine revenues is based on advertising, not subscriptions. TV and radio are based entirely on advertising. By improving the ability to display advertising, the media channels can either earn more money or simply stay in business. Web marketing itself is evolving. Several years ago, SEO and PPC were the main issues in search marketing. Tracking was done with web stats packages that simply read the server log files to report the total number of visitors, number of viewed pages, time-on-page, and other basic data. PPC was trackable because Google included simple reporting tools. SEO for the most part was untrackable, and many assumed it was a form of public relations (PR). Today, this model has flipped around. Analytics is now the main issue. Digital media send data to the analytics. This includes PPC (Yahoo!, Google, Microsoft), SEO, banner ads, bulk e-mail, and so on. The traditional media (radio, TV, and print) have been digitized and added into the data stream. All of these marketing channels feed data into analytics. Analytics is used to study and manage these channels. The various digital campaigns feed data into the analytics tool. Analytics can show and compare the results of a campaign: where the converting traffic came from, how much it cost per lead, how much it cost per sale, the value per visitor, and so on. Because analytics can compare campaigns, analytics is turning into a business tool to manage channels on the basis of your business goals and results. We use analytics to answer two questions: What is going on What can we do about it You decrease (or shut down) the campaigns that don t perform. You increase the campaigns that produce profits.
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The most significant driver of this revolution in digital marketing has been Google. Although other companies invented PPC and analytics, Google popularized these tools. Google AdWords was easy to use and it worked better than the other services, so hundreds of thousands of advertisers used it for their campaigns. The tool allowed advertisers to pay only if someone clicked on the ad, and the tool reported the cost-per-click down to the penny. As a result, advertisers learned to manage campaigns by the numbers. They learned marketing could be trackable. By 2007, Google reached the limits of PPC. With close to 90% market share, there isn t much more growth for Google in online marketing. So Google began to expand into other media markets. They developed tools similar to AdWords that let you place advertising in AM/FM radio. You select a radio station in a city, you upload a sound clip, you place a bid, and your ad plays on AM radio. With Google s bulk purchase of radio ad minutes, you can place ads on the radio for as little as $2.14 per ad play. Through Google, you can also place ads in TV. This includes hundreds of video channels, such as CNN, MSNBC, and Animal Planet. You upload a video clip, select the markets, place the bids, and your ad campaign is on TV. Google is also going after the newspaper market. Through Google s tools, you can place ads in hundreds of newspapers, including The New York Times and newspapers in smaller cities. Google is also rolling out tools for advertising on mobile devices, such as cell phones and PDAs. These new tools will change the old media. Google has also added an analytics package to help advertisers study and manage the results. Marketing now wants more tools. They want to go further into the data. This includes enterprise-level analytics, automated marketing rules, business intelligence, data mining, predictive modeling, and so on. Other companies offer these advanced tools.
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