While browsing through the web for proper understanding of the semantics of various online marketing terms this is what I learnt:
Cost per milli=Cost per 1000= Cost per impression:
These three terms all mean the same. This model of online marketing generates revenue in the ways similar to the traditional marketing- amount of exposure. The firm is charged on the basis of number of people to whom the content was displayed. Mind it DISPLAYED.
Cost per click: Is the next step in online marketing evolution. Here the firm is charged either a fixed or a varying amount for every click on the ad being displayed. This is a better quantifying metric to estimate the success of ones marketing campaign as you can actually see how well you ad campaign is doing and accordingly change it.
Cost per action: This is the final step of evolution in the online marketing strategy. Here is the firm is charged on the basis of execution of a pre-defined action like purchase of a product, filling of a form etc. This ad campaign though best for the advertising firm is not the best from the website's point of view. because majority of the people still buy things offline (for reasons click here- http://www.theatlanticwire.com/technology/2011/12/we-still-shop-mall-bunch-reasons/45738/ ). People come online survey the product of their choice and still buy stuff from the store/mall.
Lastly we have another form of marketing campaign but this one is different in its essence. Pay per sale followed by Groupon and similar businesses needs equal dedicated efforts from both sides.
Monday, February 6, 2012
online v/s offline marketing
The times have changed. The proverb- First impression is the last impression, cannot be truer. The attention span of an average person is so small that as a product either you make it big or you find your place in the basement. In such volatile times marketing has reached a completely new dimension, with a plethora of options the marketing team had to find the right audience and target them in the only best way possible.
The technology is supporting these advancements. Benefits of online marketing
1. targeting the right person: based on the users shopping/ browsing history you can find the right person to market to rather than spend millions on trying to woo everyone.
2. dynamic: you can change/ tweak you marketing campaign very readily from the comfort of your home/ office rather than changing all the billboards all over the country or coming up with a new print/media ad, shooing for a commercial etc.
3. ubiquitous: with the huge number of mobile apps and internet devices all around us online marketing is able to penetrate every minute of our lives rather than just one glance from the morning newspaper.
Google has become the leader for these and many more reasons.
The technology is supporting these advancements. Benefits of online marketing
1. targeting the right person: based on the users shopping/ browsing history you can find the right person to market to rather than spend millions on trying to woo everyone.
2. dynamic: you can change/ tweak you marketing campaign very readily from the comfort of your home/ office rather than changing all the billboards all over the country or coming up with a new print/media ad, shooing for a commercial etc.
3. ubiquitous: with the huge number of mobile apps and internet devices all around us online marketing is able to penetrate every minute of our lives rather than just one glance from the morning newspaper.
Google has become the leader for these and many more reasons.
Sunday, February 5, 2012
A/B testing
Testing for web analytics: testing entails one of the major costly operations for any organization. And when the issue is of website designing where user input and perspective is of paramount importance A/B testing is the best route out. A business can assess its competence at converting its visitors to customers by defining certain metrics or KPIs and then make "minor" changes to the website to see which option helps them achieve their KPI better.
The problematic issue with A/B testing is that the changes made to the website should not be drastic and frequent, and that KPIs should be well defined and quantifiable. Implementing A/B testing is easy but understanding what you want to achieve out of it and planning around it is mind-boggling.
In today's fast paced time the human mind is accustomed to living in their comfort zone, changing site drastically will offset this convenience and the A/B testing can result in a business loss.
The problematic issue with A/B testing is that the changes made to the website should not be drastic and frequent, and that KPIs should be well defined and quantifiable. Implementing A/B testing is easy but understanding what you want to achieve out of it and planning around it is mind-boggling.
In today's fast paced time the human mind is accustomed to living in their comfort zone, changing site drastically will offset this convenience and the A/B testing can result in a business loss.
Friday, January 27, 2012
BI for Currency Exchange Predictor Model
One of the most economically lucrative idea: Currency exchange predictor. What if you knew when the dollar price will go up and by how much, when will it fall. You can earn and pretty much make a living out of this knowledge. And you know what is behind all of this BI !!!
Using the basic knowledge of currency exchange, some awareness of world affairs and guts to invest money is all you need. I had done a very detailed report back in India but sadly it seems I have lost it. Here I have collected the 10 years of U.S. $ data from::
http://www.bankofcanada.ca/rates/exchange/10-year-lookup/
and made something very trivial but on similar lines.
As we see a periodicity in the trend of how US dollar changed over time. Anyone can capitalize on this information and earn bountiful profits.
Industrial Use: I will take my own example here. My company was based in India and our client was GUESS, US. My company used to get money in dollars and it had to pay us in Indian Rupees. This knowledge of when to get the maximum return from our $ earnings made my Vice President put this project infront of us.
The difference
My experience with the BI class till now has been great. I got to learn a lot about data collection from online traffic and the various KPIs and metrics that differentiate a better website from a worse.
But in the last class I felt there was something lacking in the presentations. Everyone
has great data to backup their conclusions but the conclusions were more data-centric rather than business-centric.
To me the picture of business intelligence is composed of data, the information we collect from the data and the reporting where we suggest ways to improve the business. The 3rd component is the most important part of that picture, because even if you have the data and you extract the correct information from it unless you can relate it to the business everything is in vain. Its like watching a suspense movie but without the ending.
The "So what?" question is something I and my classmates need to keep in mind in our future analysis.
But in the last class I felt there was something lacking in the presentations. Everyone
has great data to backup their conclusions but the conclusions were more data-centric rather than business-centric.
To me the picture of business intelligence is composed of data, the information we collect from the data and the reporting where we suggest ways to improve the business. The 3rd component is the most important part of that picture, because even if you have the data and you extract the correct information from it unless you can relate it to the business everything is in vain. Its like watching a suspense movie but without the ending.
The "So what?" question is something I and my classmates need to keep in mind in our future analysis.
Friday, January 13, 2012
I and BI
As an Electrical and Electronics Engineer from BITS, Pilani when I got an opportunity to work for a start-up, Apex Decisions, Bangalore India that works in BI I was confused, because before that day I did not even know what Business Intelligence is.
To my surprise I saw the diverse application of BI in all walks of life. My project area was Retail market with US based clients as GUESS and BigM. I was surprised to see all the sales and promotions run by various retail brands like GUESS, Nike, GAP etc have proper quantitative decisions behind every move. To my surprise I was told that our pilot run with GUESS had increased their yearly revenue by about $20 Million- all because of BI. It was unbelievable for me but as I started working with them and implementing their algorithm and using their tools I could feel how BI can augment a retail business.
Extracting seasonality pattern information from traffic pattern of sales round the year, considering special events like Easter, 4th of July, Thanksgiving and Christmas, and using the tools in the best way possible I could forecast sales patterns for my clients for the coming year.
The biggest surprise was to when my analysis was actually forwarded to GUESS and implemented. The accuracy of my forecast coincided with less that 5% error with their actual yearly sale. This was the moment that ushered me towards BI and couple of months later I find myself in the BI class. Hope my journey takes me to more interesting places. Later.
To my surprise I saw the diverse application of BI in all walks of life. My project area was Retail market with US based clients as GUESS and BigM. I was surprised to see all the sales and promotions run by various retail brands like GUESS, Nike, GAP etc have proper quantitative decisions behind every move. To my surprise I was told that our pilot run with GUESS had increased their yearly revenue by about $20 Million- all because of BI. It was unbelievable for me but as I started working with them and implementing their algorithm and using their tools I could feel how BI can augment a retail business.
Extracting seasonality pattern information from traffic pattern of sales round the year, considering special events like Easter, 4th of July, Thanksgiving and Christmas, and using the tools in the best way possible I could forecast sales patterns for my clients for the coming year.
The biggest surprise was to when my analysis was actually forwarded to GUESS and implemented. The accuracy of my forecast coincided with less that 5% error with their actual yearly sale. This was the moment that ushered me towards BI and couple of months later I find myself in the BI class. Hope my journey takes me to more interesting places. Later.
Wednesday, May 26, 2010
The predicament called Youth
As I cruise through the most celebrated phase of life I stand to wonder of the complexities and perplexes of the years to follow. Never before in life ever was every decision of as monumental and vehemently significant as of today’s. The comforts of today are transitory the perils of future are inevitable. My self-creation and very often used phrase “ life is a progressive realization of your mistakes “ never seemed truer than before. How drastically a minuscule of change can transform the future you withhold . I fear to have screwed up my life till now but still the future holds redoubtable cornucopia of opportunities . Now the ball is in my court ,as always, and its all about how you play your game this point onwards.
As I get troubled thinking over the numerous possibilities I need to consider before taking any major step with my life I was very aptly reminded by a sage yesterday that this predicament is very short lived and is undoubtedly the most profound advantage of youth. You have options , You have choices you have the power to decide your fate and write your destiny. Very soon in less than 3-4 years this edge will be lost and we shall forever be enchained in what we have made of ourselves. This confidence of having options will be lost and all we will be left with is the culmination of our effort.
As I get troubled thinking over the numerous possibilities I need to consider before taking any major step with my life I was very aptly reminded by a sage yesterday that this predicament is very short lived and is undoubtedly the most profound advantage of youth. You have options , You have choices you have the power to decide your fate and write your destiny. Very soon in less than 3-4 years this edge will be lost and we shall forever be enchained in what we have made of ourselves. This confidence of having options will be lost and all we will be left with is the culmination of our effort.
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