Digital Marketing: Three Pillars of Internet Marketing

These are notes taken during my Digital Marketing Class with Professor Huff at Utah Valley University.

The Three Pillars of Internet Marketing: Traffic, Conversion, AOV (Average Order Value)

All of these business models rely on traffic, the more traffic, the better. 

Mathematical equation to value price of visitors via internet/e-commerce: 

1,000 visitors * 1% CR * $50 AOV = $500

What's the value of a 20% increase?

1,200 visitors * 1.0% CR * $50 AOV = $600

Another Example

1,200 visitors * 1.2% CR * $50 AOV = $720

"There are three levels we can pull here, visitors, conversion rate, and average order value. We need to optimize all three levels, it will equal a much larger pay off."

Question 1: Are You Maximizing Traffic?

Look at the sources of your web-trafficking  Is it search engines, referring sites (like backlinks), and direct traffic. When using google analytics, they will color code things differently and will color the largest traffic source in blue. 

Is it better to have more traffic to your webpage through search engines or direct traffic? 

Search Engines: Good SEO's look for over 60% of your traffic coming from search. This shows that the business is growing. 

Direct Traffic: If most traffic is coming from direct, it means that your search is suffering. You want to try to get your search number for web traffic to 60%. 

Question 2: Do You Convert?

Question 3: What's a Visitor Worth?

Case Studies: White Canyon Software

Background: This software erases information completely from computers, it can also retrieve information that has been deleted from computers. It's a secure software and writes over memory information 6-8 times, making it hard to retrieve. 

"Please help us increase our sales" -White Canyon Software

1. What Data Do You Need?

-Target Market

-Current Sales

Current Company Info: Traffic is 7,000 visitors p/mo, 0% on Pay Per Click, 5% SEO

2.5% Conversion, $40.60 AOV, 99 WipeDrives @ $40 for every WipeDrivePRO @ $100

Which lever do you pull? Traffic, conversion, or AOV? 

They have a good conversion rate, so the only two levers we could utilize is Traffic and AOV. 

You can increase AOV by changing prices, promoting WipeDrivePRO, or by driving pay per click to AOV WipeDrivePro for a landing page. 

How Internet Marketing Firm Approached the Case

Goal 1: Increase Traffic/Visitors

$1,500 PPC Campaign: 10,000 new visitors

10,000 visitors *2.5 CR * $40.60 AOV = $10,150 More p/mo

Goal 2: Increase AOV 

Comparison Chart: Why upgrade to PRO?

Ratio from 99:1 to 65:35

Revenue = 17,000 visitors *2.5 CR *$61 AOV = $25,925 p/mo

Email

SPAM: The Terminology Spam, Comes from the Monty Python Skit about Spam. 

One of the users of the system of the ARPANET sent a message to multiple people at one time in the 1970's. "Sorry about the Spam," people started using the term, calling mass emails as SPAM. 

Misconceptions of Email Marketing: 

Is it E-mail, e-mail, email, or Email? It originally started as E-mail. The E stands for electronic. As E-mail became more common in the our language, it evolved to e-mail. As of a couple years ago, the AP Styleguide said that e-mail needs to be changed to email due to the extra effort of writing the hyphen. When referring to email, out of the four different writings email is best.