Abstract

Digital technology has changed how consumers search for information, interact with each other, and buy products. The popularization of these technologies has made it possible for companies to have a better understanding of their customers' decision journey and subsequent word-of-mouth recommendations. Digital marketing requires a new approach to reach and engage consumers. We highlight four key elements of digital marketing: outbound marketing (search and display advertisements), inbound marketing, social media networks, and the mobile revolution. The Reading explores each element, explaining relevant tools and how to assess their effectiveness; it also covers advanced topics such as online-offline interaction and linking measurements to customer lifetime value (CLV). This Reading contains an Interactive Illustration, "Search and Display Advertising ROI," which helps students understand the relationships among measures of efficiency of search and display advertising, as well as the dependence of advertising campaign profit and ROI (return on investment) on its measures of efficiency. The Reading also contains links to six video clips on the implementation of digital marketing techniques, including "AdWords Video: Plan Your Campaign," describing the effective design and budget of a digital marketing campaign; "Ads Manager: A Facebook Ads Tutorial," describing a tool for monitoring the cost and results of an active campaign; "Coca Cola Hong Kong Multiscreen Ad Campaign," a creative combination of TV and mobile marketing; "HubSpot CEO Interview on Inbound Marketing," about the importance of creating noteworthy content that will attract customers; "United Breaks Guitars," an example of negative word of mouth via social media; and "Advertising Symbiosis: The Key to Viral Videos," describing why certain customers are likely to share ads. We recommend assigning this reading together with Core Reading: Marketing Communications (HBP No. 8186).

Keywords: advertising; buzz marketing; internet marketing; marketing; marketing management; social media; social networks; Viral Marketing; word-of-mouth marketing; digital; Internet; Marketing Channels; Marketing Reference Programs; Online Advertising; Advertising Industry;