Tuesday, October 27, 2009

Week Twelve - Traffic - Building & Managing the Flow

1. Find an article on affiliate marketing (for example: http://www.iabuk.net). What is the difference between affiliate marketing and PPC (Pay per click) marketing and what are the advantages and disadvantages of both?
The article that I selected on the topic of affiliate marketing was titled “5 Things You Must Have to Succeed in Affiliate Marketing” (http://www.selfseo.com/story-19710.php). It basically outlines that in order to achieve in affiliate marketing, people must be willing to learn and be trained, invest time and effort even if direct results don’t seem apparent, possess self-determination, be disciplined and be optimistic.

Affiliate Marketing is an Internet-based marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's marketing efforts, whereas Pay per click (PPC) is an Internet advertising model used on websites, in which advertisers pay their host only when their ad is clicked.

The advantages of affiliate marketing are:
• Merchants have a wider environment generating more products and services signifying more sales.
• It is an easy way to create additional income for both merchants and websites.

The disadvantages of affiliate marketing are:
• High commission costs incurred by merchants.
• False and misleading types of advertising that has lead to unjust claims and also complaints from people.
• It is not a stable source of income for the merchant.

The advantages of PPC marketing are:
• They are generally targeted towards a very general audience.
• Drives lots of valuable traffic to a website.
• One of the most affordable forms of marketing on the Internet.
• Easy to set up and maintain.
• Pay commissions even if visitors never make any purchases.

The disadvantages of PPC marketing are:
• It is difficult to bid for select words, especially when small companies are up against larger companies.
• Pay less than affiliate programs since they are trading higher commission rates for a higher probability of earning income.

2. How is CRM relevant to affiliate marketing?
Customer Relationship Marketing provides the affiliate marketer with powerful tools that can effectively identify, track and monitor website's visitors. The software can even provide important information that enlightens the affiliate marketer to exactly what the visitor seeks and then apply to the right affiliate programs to fill the needs of the visitors.

The valuable information gathered by the CRM software provides the affiliate marketer with a clear idea of who is visiting the website and for what reason. This information allows the affiliate marketer the opportunity to make specific changes in advertising efforts, website content and other variables that will cause people to want to return to the website.

3. Where does viral marketing fit into this mix?
One of the best known forms of viral marketing is ‘word of mouth’. It relies on networks of people to spread the word. It is a form of promotion and can occur in social networks. It is important to get as many targeted online and offline mentions as possible in order to build traffic. Google uses a form of direct viral marketing, where invitations to potential customers are willingly sent by Google users. The secret to Google’s success is the simplicity of their product. They use simple interfaces and lack of obtrusive image-based ads, substituting them instead with simple text links. Rather than using image-based ads, Google designed text links where they scanned the content of the email or message being viewed and designed its ads based on that. This form of “intelligent” online marketing is related to viral marketing, and is very useful when used in conjunction.

4. In the PowerPoint presentation there is a link to Overture which was a 'key word' search tool. You will find that it is no longer there - one of the ongoing issues with web resources. Yahoo bought Overture and shut it down. Do your own search and see if you can find an alternative to Overture. Also see the discussion page and share your thoughts there.
Yahoo Search Marketing is a keyword-based pay per click or sponsored search Internet advertising service. Yahoo began offering this service after acquiring Overture, which provided a pay-for-placement search service. However, Overture was consequently shut-down.

An alternative to Overture is Vurr.com. It is a very simple site where users enter in a key word to find search queries matching and their frequency of use. For example, when I type in ‘health’, the top three results I get are health insurance, health and united health care. The most frequently use key word is rank at the top of the list. The benefits of Vurr.com are that it has a faster query response, results are not normalised (e.g. car insurance and auto insurance are not merged), typos and misspells are preserved allowing comparison to base word, word order is retained in the query, plurals and punctuation are retained for the query, and search frequencies are not subject to manipulation.

5. Methods used to improve search engine ranking include frequency of occurrence in body copy, number of inbound links, inclusion in directories such as DMoz, title HTML tag, Meta tags and hidden graphic text.

What is DMoz? Read about DMoz in Wikipedia. What search engines use DMoz? I have a personal online book business called OZRURAL. Is it listed in DMoz?
Directory MOZilla (DMoz) is a human reviewed directory. It is one of the largest directory systems that is maintained by human editors. A listing in DMoz is said to assist in boosting rankings in general search results. One of the main search engines that uses DMoz is Google. DMoz provides the means for the Internet to organise itself. As the Internet grows, so do the number of net-citizens. These citizens can each organise a small portion of the web and present it back to the rest of the population, culling out the bad and useless and keeping only the best content.

OZRURAL is listed on DMoz and it comes up with two results:
1. OzRural - New and Pre-loved horse books bought, sold or exchanged. Specialise in rare and hard to find classics.
2. OzRural - Includes rural news, bookshop, alternative and farm diversification information and links.

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