Digital Marketing - Display Advertising | Week 5 Blog

Display Advertising 

DeVry Blog Project - Week 5 | 1/31/17

This week, I'm exploring the different options available for advertisers that are looking for branding and awareness opportunities. This may seem like a bit of an assumption, but the purpose of the following display advertising formats is to create as many cost-effective impressions as possible. On Google, the advertiser is only charged for each engagement with an advertisement. This is much like a PPC campaign, where the advertiser is only charged for each click on a campaign that leads to their landing page.

Below are the three examples of Lightbox display ads that are provided by DoubleClick Studio via Google. As mentioned in our book Internet Marketing (2013, Roberts), these are known as Rising Stars or Rich Media Branding Units. These screen grabs are from various stages of the ad being displayed, on various mediums.

Example 1: Mobile Lightbox ad, pre-engagement

This version of the ad hasn't charged the advertiser for any engagement because the user hasn't clicked on the ad. Also, on mobile and tablet, the call to action on the banner will be changed to "tap to expand" instead of "hover to expand". The content of the landing page is grayed out and is partially displayed behind the Lightbox Ad. In the next example, I'll show what happens if the user engages with the call to action.

Example 2: Tablet Lightbox ad, post-engagement

If the user tapped on "tap to expand", this pseudo brand has a Youtube video embedded, with a few other related Branding videos, as well as a location of where the user could find the brand. There is also a "Learn More" button at the top which will most likely provide a landing page with information of where to get Ka-Boom.


Example 3: Desktop Lightbox Ad, pre-engagement

Again, we see the ad on the left, before the user engages. However, on desktop, this only requires a hover over rather than a direct click. It also doesn't require the user to exit out, it appears on the page instead of a pop-up style ad. General guidelines are that a user has to hover over for 2+ seconds for the ad to expand into the video experience that's seen in example 2, so the advertiser is not charged for an unwanted engagement.


In all of these examples, Google requires the advertiser to submit banners in certain formats to display correctly on different platforms. A guideline of best practices for banner and display ads can be found below.
IAB Ad Content Guidelines

How does this all work?

Google has a stronghold on this type of advertising because they supply the network (known as the Google Display Network), where thousands of partner sites can display a banner or display ad that is relevant to you. If you've ever wondered why you get display advertisements that are completely unrelated to the content you are browsing, it is because the site is a partner on a display network, and your demographics and browsing behavior have put you into the desired target for the advertiser.

Real Life Example

None of the sites I'm following have any display or banner ads, nor do they have any event triggered ads. However, I do remember a shopping experience before Christmas that stuck with me. My reaction was mostly negative, and I'll explain why. The example was completed in incognito mode, so no previous browsing sessions nor cookies were stored. This is to get the user experience from the first time customer's point of view.

Below is a SERP for the search query "omaha steaks". Completely unrelated, but I will always be interested in the slight differences in copy from the SERP ad, and the organic result. The research and psychology of what sitelink extensions and call to action provide better results that show the slight differences in wording is amazing. Side note- Omaha Steaks uses Google Shopping to offer some of their best deals.

Moving on- I clicked the PPC ad to get to the Omaha Steaks home page (not sorry). Within 2 seconds of landing, an event occurred. I believe this is coded in the Javascript, and I'm still unsure of the technical term of this. I call it a modern day pop-up ad, and it's captured below.

Personally, I hate this trend and I secretly hope that search engine algorithms start to account for the bounces associated with these pop-ups. As we move through the purchase funnel, this continues to be a theme. I closed the window to add my e-mail address, and added the first item on the landing page to my cart. Here is the result of that action.

Another pop-up! This one with a different objective in mind. The first was a new customer acquisition, with the call to action being inputting an email address in exchange for a special deal. This pop-up was an upsell/add-on attempt.

I click "no thanks" and continue to the check out screen. Here is what follows:

There are two more upsell/add-on attempts, but not via a pop-up. The top banner attempts to sell side dishes. There is an additional banner at the bottom that is offering me burgers. At this point, I cannot continue without converting, so I must abandon my cart.

Also, I recreated the same process on my phone. The user experience is the same on mobile in terms of pop-ups and add-on offers. However, their site is mobile optimized, and all banners/pop-ups fit the screen nicely, even when rotated.

Even though my experience was poor due to excessive pop-ups, add-ons, and banners, these tactics must deliver great retention rates from other users. It would be interesting to see the conversion rates for the special offers, and how much return is provided from these efforts vs. exit rates.

Roberts, M. L. (2013). Internet Marketing: Integrating Online and Offline Strategies, 3rd Edition. [Bookshelf Online]. Retrieved from https://online.vitalsource.com/#/books/9781285827261/

Search Engine Marketing | Ranking At The Top | Whistler Blackcomb

Naturally, I've chosen to follow a ski related company due to my draw to the sport. I had a professional relationship with Vail Resorts for 12 years during my athletic career. Specifically, Heavenly Resort in Lake Tahoe. Since I represented myself, I maintained a close relationship with the Marketing team and always had a passion for the field. Heavenly is owned and operated by Vail Resorts. Vail Resorts recently acquired Whistler Blackcomb in Canada, and their search engine marketing is the focus of my week 4 assignment.

My first example is for the search string "whistler blackcomb". As seen in the example below, the paid ad appears first. Their site is also the first organic result. The results are complimented by social links on the right, with the copy coming from Wikipedia. Between the paid search result and organic result is a recent weather report. These snow condition reports are important to skiers and boarders, and can help add value to any ads purchased on this SERP for people interested in possibly skiing here.

The ad title is has a clear call-to-action, and also gives customers a reason to click the ad (to save 30%). The ad copy caters to the audience looking for deals, and gives the user a great idea of where they will land if they click. The result even offers sitelink extensions that allow users to land directly on a specific page that eliminates the path to conversion, and improves user experience for customers that are in the buying phase. This also shortens the conversion funnel for Whistler Blackcomb.

The first organic result is very similar to the paid ad, but doesn't have as many "buy ready" keywords in the title and copy. This would attract a user that is still in the consideration stage, but the search string may signal that they are prospects for the Whistler Blackcomb ski area. This organic result also features sitelink extensions with an internal search bar. However, these sitelinks offer more informational pages that the paid ad doesn't. Again, this is consistent with which type of behavior that each result is targeting.

The social media pages results for Whistler Blackcomb also appear on the first SERP. Their Twitter page is the third result, and Facebook page (not pictured) is the fourth result. Wikipedia is sandwiched between these two results.

Pictured below is a screenshot of a free search results information tool, SEM Rush. The same search string was used to see the volume of search results, possible ad copies for the results, the estimated cost per click for the ads, and competitiveness for the search string.

This analysis shows that Whistler/Blackcomb doesn't have much competition on this search string. This may be due to the specificity of the search. The search has been trending lately because of winter. They have consistently used ads throughout the year with the exception of March and May. Another interesting note is the Cost Per Click distribution being higher in Mexico, UK, and France. They are paying more per click in foreign countries.

The social media channels (seen below) are used as informational outlets rather than direct selling. The purpose of these channels are to drive engagement, entertainment, and information rather than conversions. Their Facebook page has over 280,000 likes, and their Twitter has over 82,000 followers. The Facebook page also boasts 4.7 out of 5 stars, which can also improve search engine rankings

Overall, I believe Vail Resorts and Whistler/Blackcomb have a great digital strategy. While not mentioned above, two huge advantages they have over the competition the support of the Vail Corporation, and their groundbreaking engagement/retention tool called EpicMix. This tool also leverages the superpower of social sharing with bragging rights and added value and convenience of having professional photographers available at every mountain. If I were to offer one improvement, I would either have a Rich Media item on the SERP that offers Live Webcams of the mountain, or at least a sitelink extension to one. This may improve relevancy and user experience. 

Email Marketing | Best Practices

I never thought I'd say this, but I'm disappointed because I haven't received my promotional emails that I've signed up for. I only have the welcome email from Vail Resorts and Nike. Even after three tries in three weeks, my "welcome" email hasn't arrived from Topgolf. My examples may not be the greatest, and I've had to branch out from my targeted companies to analyze the design, user experience, and compliance of an email.

The first email is from Vail Resorts. Interesting, because they also brand themselves as "snow.com"
Their welcome email is seen below.

First of all, their email is CAN-SPAM compliant. The sender is recognizable, the current mailing address of the HQ is listed, and there is a clear opt-out. As for the user experience and design, this email is visually appealing and simple. The pre-header echoes the subject line message, this area may show as a preview in some email clients, and can help open rates. Although not very big or obvious, there are also social links. The call to action in this email is to visit the site and explore the various resorts that Vail owns, so users can find their next destination. They also provide a link to their award winning app, Epicmix. Epicmix adds value to every visit by tracking the vertical feet that a visitor skis, stores all of the pictures taken by professional photographers on the hill, and keeps track of all awards earned on the hill. Since this is a welcome email, the main goal is for awareness. However, I could see a goal conversion being an app download for Epicmix.

By the design, it looks like Vail used a Constant Contact template to develop this welcome email. This looks very familiar.

The next example is a promotional email from Sprint. The subject line on this email is "Happy New Year! Happy New Phone!" Below is the email:

This email is also CAN-SPAM compliant. The sender is sprint@sprint.delivery.net. The opt-out, confirmation that it is an ad, and HQ address are listed at the bottom. The subject line is a bit spammy, but it's clear that the recipient could have instructions on how to get a new phone. As far as design, the call of action is a bit small compared to the glittery image, and does occur after the fold on a mobile device. However, clicking on the glittery image does go to the same landing page as the "upgrade now" button, even though there is no call to action on the image. I would have had an issue with the actionable item being below the fold if I was testing this email, especially on mobile. Since Sprint is trying to reach audiences on these mobile devices, I would have put more weight on this. 

Obviously, the goal conversion is to get a customer to upgrade the phone. The landing page experience is pretty good, takes the user right to a page where they could choose from a selection of new phones. However, since new phones are a big purchase, I believe this campaign would be more of an assisted conversion for conversion to happen later. This would be more of an informational campaign for a purchasing decision down the road.

The last example I will use is the Nike welcome email. This was delivered from nike@official.nike.com. The subject line was "Thank You for Signing Up for Nike Emails"

The email was lengthy, so it had to be split into three screenshots. However, the design of the email does match the design of the "shop now" landing page. The Nike site is designed just like this email, simple, lots of white space, and user friendly. The call to action is above the fold, and does offer add-on items below the fold as well. The email is a great introduction into the product mix without being too overwhelming. I believe conversion goals for this email would be to get a user to sign up for a Nike+ membership, or downloading the Nike+ app. Building brand loyalty is the main goal, there are no product offerings on this campaign.

The email is CAN-SPAM compliant by offering a clear opt out and headquarters address. There are clear instructions on what do to or who to contact if a user has questions at the bottom.

Week 2: Topgolf Business Model

Topgolf provides goods and services directly to the customer in the form of golf games, and food & beverage. The unique value proposition is the entertainment it can provide golfers of all ages and skill levels, without the expensive equipment cost, time commitment, and skill level required for traditional golf. Surprisingly, most of Topgolf's revenue- about 60%, comes from food & beverage (Golfweek, 2012).

Topgolf also provides another option trending in the e-commerce world- a subscription option to provide another revenue stream and loyal customers to Topgolf. In Alexandria, VA, two types of memberships are provided for monthly fees that included value-added perks and benefits as shown below.

These two business models create a hybrid style for Topgolf between a direct model and a subscription model. Out of the nine models, these two are probably the only ones that make sense for Topgolf. They are in the family entertainment industry, and provide the games, food, and beverage directly to their customers. The subscription model comes into play with the one-time initiation fee to set up an account to become a lifetime member. As seen above, there are also monthly memberships at higher fees to support customers that visit frequently, and come with value added benefits.

In a way, Topgolf does support B2C e-commerce on their site. Although almost all transactions occur at physical Topgolf locations, their site does allow for customers to sign up and pay for memberships. Also, gift cards may be purchased on their site.

The tactics that support their business models mostly exist in the digital world. Social media and word of mouth are currently what are helping Topgolf's operations (Lukovitz, 2016). I believe their product life cycle is still in the introduction stage. Most of the tactics are targeting new customers and raising awareness of their brand. The video shown below is a great example of a simple introduction video with a funny twist. The content is contains plenty of sexual innuendos and will appeal to many millennials that watched educational videos about "the first time" possibly in the late 80's and early 90's. With that said, the video targets millennials to come try Topgolf for the first time. It highlights the food, entertainment, nightlife, and that skill is not a factor and that anyone can enjoy Topgolf.

The cost of their marketing tactics in 2015 to support their business model was estimated at about $18,000 in 2015 in US measured media (Rodriguez, 2015). This is minuscule considering Topgolf's annual revenue in 2015 was estimated at $300 million (Indap, 2016). Based on these numbers, I would say their business model and supporting marketing tactics are being utilized correctly. The product is unique and demanded from many different demographics and targets. They are expanding into dozens of the right places in the United States. The prices match the markets and premium time slots. Their promotional efforts bring ridiculous returns. Below is a snapshot of Topgolf's paid search tactics. The competition level is very low, and their paid search tactics are almost unnecessary because of this.

For the sake of this assignment, it would be fun to explore another business model they could add to their mix. This is something they have started and promoted this year (http://tour.topgolf.com/), but the Topgolf Tour could expand to reach new markets. The traditional golf market has been slumping since 2005 in the United States, and both markets may experience a boost by partnering with the PGA Tour or similar as an infomediary service. Since Topgolf is the owner of a large database of Topgolf visitors, they may be the holders of newly interested leads for the PGA tour to leverage. The PGA got a boost from the return to the Olympic Games in Rio 2016, and may want to continue to reach new markets. Yes, this is a farfetched idea, but I see opportunity in being able to bring in a new audience with the channels and reach that Topgolf currently has.

References:

Golfweek (2012, July 13). Topgolf's successful mix: swings, suds, and socializing. Retrieved from http://golfweek.com/2012/07/13/topgolfs-successful-mix-swings-suds-and-socializin/

Indap, S. (2016, March 9). Topgolf targets expansion beyond the green. Financial Times. Retrieved from https://www.ft.com/content/a3573b9e-dca8-11e5-8541-00fb33bdf038

Lukovitz, K. (2015, August 3). Topgolf ramps up national marketing with expansion push. Marketing Daily. Retrieved from http://www.mediapost.com/publications/article/255224/topgolf-ramps-up-national-marketing-with-expansion.html

Rodriguez, A. (2015, April 8). Fast-growing Topgolf expects to more than quadruple visits in just three years. Advertising Age. Retrieved from http://adage.com/article/cmo-strategy/topgolf-expects-quadruple-visits-years/297907/

http://topgolf.com/us/alexandria/gift-cards/

http://topgolf.com/us/alexandria/pricing/

Week 1: Topgolf Analysis

Topgolf is a unique combination of food, entertainment, and sports. This concept, which was launched in 2000 in the UK, by the Jolliffe brothers. They put together a concept of a driving range and dartboard, enriched it with tracking chip implanted golf balls, and produced this unique game that has expanded quickly into the United States.

This video shows a quick introduction to Topgolf. The video does a great job focusing on the atmosphere of Topgolf, as well as the typical player.

Topgolf now has over 30 locations in the United States and boasts over 35,000 visits per day (Topgolf, 2016). Much of their success comes from the younger demographic, but many of their visitors are not hardcore golfers. According to Topgolf's fact sheet, 53% of their visitors are between 18-34 with 83% of total visitors being under the age of 44. 45% of their visitors play traditional golf once or less per year. 

One thing to note is that Topgolf's success is coming at a time where the golf industry has been in a steady decline. Since 2005, when golf reached it's peak in the United States with over 30 million participants, the number of annual participants has steadily dropped to about 24 million in 2015 as shown in this chart from the Wall Street Journal.

This decline can be attributed to the fallout of Tiger Woods, or the time and money that go into a round of golf. An average round of golf takes about 4-5 hours to complete, and average round costs between $25-$150+ depending on the course (Chass, 2016). This doesn't include the cost of equipment, which tends to be on the expensive side of athletics. On top of this, course designs are not beginner friendly.

Topgolf provides a friendly entry into golf and removes the barriers that traditional golf present for recreational or novice players. The scoring system is simple, the tracking chips and computer systems do it all for you. Most Topgolf facilities are priced by the hour, so players can play as much as they can in their allotted time. Skill level does not matter, scoring points is easy for beginners because of the proximity of the shorter targets. Advanced players can opt to aim for the further targets, and some game modes can provide handicaps for advanced players. As for cost of equipment, rental clubs are provided free of charge. 

These points are all highlighted in the above introduction video. There are a good mix of professionals and amateurs- young and old. It also includes shots of additional value items like food and drinks. Some Topgolf facilities offer concerts, dance parties, and DJs as shown in the video. For example, Topgolf Las Vegas offers different products and services to cater to their audience. Bottle service, concerts, and special food menus are offered at higher prices than other locations.

The business model is very simple. A one-time, lifetime membership is offered for $5 and includes a membership card. The card provides additional branding for Topgolf, and provides value to the customer by keeping past game data on the card, and not having to pay for anymore membership fees in the future. Corporate memberships are also available with various bonus incentives. The pricing for games and hours vary during peak hours and also vary from location to location. The following link is for prices in Salt Lake City, UT.

http://topgolf.com/us/salt-lake-city/pricing/memberships/

Topgolf focuses most of their marketing efforts regionally, and in the digital space (Lukovitz, 2016). National Facebook and Twitter accounts support the regionally operated social media accounts. Each location manages their own social media accounts, but the national accounts have reached out for support from the marketing agency The Marketing Arm. To support growth, the firm developed a campaign to target 21-39 year olds on Facebook with zip codes near Topgolf locations that have been open more than a year. One campaign focused on customer acquisition, where first time Topgolf visitors were given incentives to register an email address to receive complimentary lifetime membership along with $10 off their first play. 

On social media, the National Topgolf accounts have almost 100k likes on Facebook and abou 24k followers on Twitter. They are also nearing 30k followers on Instagram.

Their mass media efforts are slim. Topgolf has stayed away from TV. In Las Vegas where they have their largest facility, advertising on trucks and taxis on the strip can be seen throughout the day. Topgolf also has a partnership with Callaway, who provides the rental clubs throughout every facility. 

Other campaigns on social media include viral videos, and launching the Topgolf tour. This video is shot by professional golfers George and Wesley Bryan hitting shots from the roof of the MGM Grand in Las Vegas, onto the Topgolf playing field across the street.

The Topgolf tour involved releasing a series of lengthy videos that showcased a more serious side of the game and reaching the intermediate and advanced players. 

Overall, Topgolf is making great use of their technologies and reaching their target audience. As lifetime memberships are purchased, Topgolf becomes a powerful database of demographic information that also connects behavioral data like number of visits, time of day visited, and if the customer engages in other channels such as email or social media that is connected to the membership information. Appealing to several different demographics is a huge advantage for Topgolf, and maintains a competitive advantage because it is such a unique product. 

Suggestions in the future would include things to convert the marketing tactics from customer acquisition to customer retention. As Topgolf continues to expand in the United States, they must look towards other ways to expand. Expanding into Japan may be a great option. According to Golf Datatech, Japan is the #2 largest golf market in the world behind the United States. Japan has been experiencing the same challenges with declining interest in the sport, and could benefit from the ease of entry into the sport that Topgolf presents. Although a great option, one challenge facing entry into Japan is the high cost of land in premium areas of Japan. 

To continue the growth of this blog, I've enriched it with Google Analytics. I can monitor the activity and behavior of anyone landing on it. I may have better ideas of where or how to promote it. For now, I can promote it on my personal Twitter page that has a modest following. However, the following is from my past career as a professional athlete and may have no interest in reading my digital marketing blog. I've attended some local conferences hosted by SLCSEM, who claims being Utah's largest digital marketing association. I can reach a network of local digital marketing experts for feedback and visibility.

Costa, B. (2016, March 7). Americans want to play golf-until they try it. The Wall Street Journal. Retrieved from http://www.wsj.com/articles/americans-want-to-play-golfuntil-they-try-it-1457379085

Golf Datatech. (2015, February). World wide golf report 2015. Retrieved from http://www.golfdatatech.com/2015/02/world-wide-golf-report-2015/