Digital Marketing - Complete Study Notes

(Chapters 1 & 2)
CHAPTER 1: INTRODUCTION TO DIGITAL MARKETING

1. What is Digital Marketing?

Definition: Promotion of brands or products through different forms of electronic media
Alternative names: Internet marketing, web marketing, online marketing
Philip Kotler's definition: "A form of direct marketing which links consumers with sellers
electronically using interactive technologies"

2. Defining Characteristics of Digital Marketing

Two-way Communication
Consumers decide which brands to interact with
Consumers co-create brand and content
Not marketer-controlled messaging

Targeting of One
Precise targeting based on multiple factors:
Age, location, gender, seniority, income
Interest, behavior, lookalike, CRM data
Remarketing, device type
Highly personalized and interactive communication

Level Playing Field

No discrimination between small and large businesses
Low entry barriers
Same media rates for all business sizes

Measurability
Enables measurement of performance and ROI calculation
Track complete customer journey:
How many saw the ad → clicked → visited website → registered → bought
Push and Pull Medium
Pull medium: Search (users seek information)
Push medium: Banner ads (shown based on context)
Enables both brand building and sales activities

Real-time Optimization
Instant feedback enables campaign tweaking
Short planning cycles required
Flexible plans based on real-time metrics

Zero Moment of Truth

Consumers research online before visiting stores
Internet precedes all other moments of truth
Essential for marketers to have digital presence

3. Origin and Evolution of Digital Marketing

Year Milestone

1994 First banner ad on HotWired

1996 US digital ad market: $301 million

1997 Market reached $1 billion

1998 HotWired achieved 30% CTR

2000 Google launched AdWords

2002 LinkedIn launched

2004 Facebook launched

2006 Twitter launched

4. Traditional vs Digital Marketing Comparison

Aspect Traditional Marketing Digital Marketing

Communication Unidirectional (one to many) Multidirectional (many to many)

Planning Long-term, structured Short-term, flexible

Communication Style Private, formal Public, genuine, direct

Availability Working hours only 24x7

Response Time Longer Quick, immediate

Control Company active, consumers passive Both company and consumers active
5. Internet Users Statistics

Global (2017)
Total users: 3.5 billion (47% of world population)
Growth rate: 5.8% annually

India (2017)
Internet users: 429 million (34% penetration)
Mobile connections: 1,047 million (82% of population)
Smartphone users: 267 million (21% of population)
Social media users: 223 million (52.1% of Internet users)
Facebook users: 156 million (36.3% of Internet users)
Digital buyers: 180 million (52% of Internet users)

6. Consumer Decision Journey (Extended AIDA Model)

Traditional AIDA + Advocacy

1. Awareness: Consumer becomes aware of brand
2. Interest: Consumer wants to know more about brand
3. Desire: Consumer develops preference after evaluation
4. Action: Consumer makes purchase
5. Advocacy: Consumer shares experience and becomes loyal (Digital addition)

Digital Channels by Stage

Awareness: Display advertising, social media, YouTube
Interest: Creative campaigns, emotional messaging
Desire: Community forums, blogs, review sites
Action: Search engines, websites with smooth navigation
Advocacy: Social media platforms

7. P-O-E-M Framework

Paid Media
Sponsored advertisements across digital channels
Google AdWords, Facebook ads, LinkedIn campaigns
Guarantees reach and impressions
 Short-term strategy

Owned Media
Company assets: websites, microsites, social media pages
Mobile apps, blogs, original content
Videos, images, infographics, posts
Long-term strategy

Earned Media
Organic and unpaid publicity
Word of mouth, social media engagement
Likes, shares, comments, retweets
More credible but takes longer

Best Practice Rule

50% budget for paid media
50% budget for owned/earned media
Balance between short-term and long-term strategies

8. Digital Marketing Strategy Components

Segmentation Methods
Geographic: Hyperlocal targeting for local businesses
Demographic: Age, gender, income, education
Psychographic: Lifestyle, interests, values
Behavioral: Online behavior, intent-based targeting
CRM Data: Existing customers and leads
Lookalike: Users similar to best customers

9. Digital Landscape by Objective

Objective Best Channels Reason

Customer Acquisition Search engines (Google, Bing) Capture user intent (pull medium)

Brand Building YouTube, Yahoo, Indiatimes Huge reach and awareness

Customer Engagement Facebook, LinkedIn, Twitter Community building

Information Dissemination Twitter, micro-blogging Rapid information spread

Reputation Management Listening tools (Radian 6) Monitor sentiment

10. Digital Advertising Market in India (2017)
Medium Budget Share Growth Rate

Television 39.4% 13%

Newspapers 34% 5%

Digital 15% 30%

Radio 5% 14%

Out-of-home 5% 6%

Digital Ad Spending Breakdown

Display ads: 58.6%
Search ads: 35.4%
Mobile ads: 38% (growing at 85%)

11. Skills Required in Digital Marketing

Think (Analytical)
Campaign analysis and optimization
A/B testing capabilities
Strategic goal identification
Market research and consumer trends

Feel (Empathy)
Understanding customer pain points
Content strategy development
Sentiment analysis using listening tools
Brand association understanding

Act (Creative Execution)

Graphic design and video creation
Artistic and creative abilities
Brand-aligned content creation
Technical software knowledge
12. Digital Marketing Plan Components

1. Objectives
Branding objectives: Recall, awareness, brand equity
Performance objectives: Sales, leads, conversions
Define specific metrics for measurement

2. Buyer Personas
Who: Age, gender, location, job title, education
What: Goals, pain points, interests, media consumption
Why: Unique selling proposition, buying motivation

3. Content Strategy
Analyze past performance
Create more of high-performing content types
Video, images, infographics, eBooks, webinars

4. Channel Strategy
Paid media: Search engines, display ads, social media
Owned media: Website, microsite, social pages
Earned media: Blogs, forums, Q&A sites

5. Timeline Planning
Month-wise activity calendar
Week-wise content breakdown
Target audience scheduling

6. Budget Allocation
Media costs for paid campaigns
Content creation expenses
Technology development costs
Industry-dependent allocation
7. Measurement Metrics
Branding: Recall studies, attitude surveys
Performance: CTR, leads, conversions, CPA

CHAPTER 2: DISPLAY ADVERTISING

1. Concept of Display Advertising

Definition
Art of communicating advertising message using visually rich media
Main objective: Build brand image and create awareness
Based on Picture Superiority Effect (PSE): Human brain remembers images better than
words

Success Story Example

Ford New Zealand (2014):
Used interactive display banners with Google Display Network
Results:
3x average time spent on website
60% increase in website visitors
Bounce rate dropped from 65% to 1.5%
5% of leads came directly from display advertising

2. Display Advertising Media Types

Print Media
Metric: Circulation or number of readers
Traditional and established medium

Television
Metric: Number of viewers
Better engagement than print media
Audio-visual capability
Digital
Metric: Unique users and page views
Available on mobile and desktop
Most measurable and targetable

3. Key Digital Metrics

Unique Users
Definition: Distinct individual users who visited a site
Tracking method: Cookie ID or IP address
Important note: New browser/device = new unique user count

Page Views
Definition: Each visit to a new page on website
Counts: Both repeat and first-time visitors
Example: 1 user visiting 3 pages = 1 unique user, 3 page views

Ad Impressions
Definition: Number of times an ad is displayed
Calculation: Multiple ads on one page = multiple impressions
Top publishers in India: Facebook (26.7%), Google sites (12.0%), Yahoo sites (11.9%)

Clicks
Definition: When user clicks on an ad
Action: Redirects user to landing page
Payment: Advertiser pays only for clicks in CPC model

Click Through Rate (CTR)

Formula: CTR = (Clicks ÷ Impressions) × 100
India benchmark (2016): 0.13%
Factors affecting CTR:
Product category (automobiles > cosmetics)
Creative quality
Ad placement relevance
4. Types of Display Ads

By Format
Image Ads
Static images related to product/service
No interactive effects
Most standard format
Rich Media Ads
Interactive elements: animations, GIFs
Dynamic aspects changing with user interaction
Example: Page peel ads
Video Ads
Embedded video content
Highly effective for storytelling
Popular on YouTube platform

By Size (Standard IAB Sizes)

Ad Size Dimensions Platform Usage

Medium Rectangle 300×250 Desktop/Mobile Most popular

Large Rectangle 336×280 Desktop only More content space

Leaderboard 728×90 Desktop only Top of page

Half Page 300×600 Desktop only Maximum impact

Large Mobile Banner 320×100 Mobile only Mobile-optimized

Special Formats
Large Format Ads: Expandable on hover
Skinning/Takeover: One advertiser takes all ad spaces on page

5. Buying Models

Cost Per Click (CPC)

Payment: Only when someone clicks
Best for: Driving website traffic
Risk level: Lower for advertisers
 When to use: High CTR campaigns

Cost Per Mille (CPM)

Payment: Per 1000 impressions served
Best for: Brand building and awareness
Preferred by: Publishers (guaranteed revenue)
When to use: Low CTR but high reach needs

Cost Per Lead (CPL)

Payment: For acquiring a lead
Lead definition: Intermediate action (signup, download, subscription)
Objective: Lead nurturing for future conversions

Cost Per Acquisition (CPA)

Payment: When user buys product/service
Risk level: Lowest for advertisers
Bid prices: Higher than other models
Challenge: Estimating target CPA

Fixed Cost/Sponsorship
Payment: Fixed daily cost regardless of impressions
Usage: Premium placements (YouTube homepage)
Includes: Logo presence and inventory package

Model Comparison Formula

Effective CPC (when buying CPM) = CPM cost ÷ Clicks from 1000 impressions
Example: CPM ₹80, CTR 0.2% = ₹80 ÷ 2 clicks = ₹40 eCPC

6. Display Plan Components

Essential Elements
Site selection: Choose relevant websites
Section targeting: Specific page sections
Ad size planning: Optimal dimensions for placement
Impressions forecasting: Expected reach
Rate negotiation: Cost optimization
 Duration planning: Campaign timeline

Plan Evaluation Metrics

Impressions delivered vs booked
Click performance by site
CTR analysis by placement
Effective CPC calculation
Budget allocation optimization

7. Targeting Methods

Contextual Targeting
Method: Based on content user consumes
Tools: Keywords or tags matching
Topics: Overall webpage theme
Google analysis: Text, language, link structure, page structure

Placement Targeting
Method: Choose specific websites/pages
Control level: Managed placement for position control
Best practice: Combine with contextual targeting
Example: Car brand advertising on automotive websites

Remarketing
Method: Target previous website visitors
Requirements: Remarketing pixel on website
Types:
Simple: Static predetermined creative
Dynamic: Customized ads based on browsed products
Effectiveness: Higher conversion rates due to prior interest

Interest Categories
Affinity Audience
Definition: Long-term, stable interests
Examples: Movie buffs, golf enthusiasts, fashionistas
Basis: Repeated online behavior patterns
Custom Affinity Audience
Method: Build own audience category
Input: Keywords + website URLs
Example: Fast food chain targeting McDonald's, KFC visitors
In-Market Audience
Definition: Currently researching to buy
Timing: Most likely to purchase soon
Best for: Performance campaigns seeking conversions

Geographic and Language Targeting

Geographic: Countries, regions, radius around location
Language: User's preferred language
Bulk targeting: Up to 1000 locations at once

Demographics
Age, gender, parental status, household income
Purpose: Prevent ads reaching inappropriate audience
Accuracy: Based on user-provided data

Advanced Targeting Options

Ad Scheduling
Control: Specific times/days for ad display
Example: Grocery ads 5-9 PM on weekends
Budget optimization: Focus on high-conversion times
Frequency Capping
Purpose: Limit ad exposure per user
Optimal frequency: 3-5 exposures
Benefit: Reach wider audience vs same person repeatedly

8. Programmatic Advertising
Definition
Process: Automated ad buying using Real Time Bidding (RTB)
Growth: 82% of US digital ad spending (2018)
Shift: From contextual targeting to audience targeting

Key Benefits
Audience targeting: Based on online behavior and intent
Real-time optimization: Instant campaign adjustments
Efficiency: Automated buying process
Scale: Access to multiple ad exchanges

Process Flow
1. User requests webpage
2. Ad exchange holds live auction
3. SSP sends bid request to DSPs
4. DSPs evaluate impression and return bids
5. Winning bid selected by ad exchange
6. Ad displayed on publisher website

Ecosystem Players
Supply-Side Platform (SSP)
Role: Maximize publisher revenue
Function: Sell impressions at highest CPM
Examples: LiveRail, OpenX, Rubicon Project
Demand-Side Platform (DSP)
Role: Represent advertiser interests
Function: Find most efficient impressions
Examples: DoubleClick, Rocket Fuel, Turn
Data Management Platform (DMP)
Role: Store and manage audience data
Types: First-party, second-party, third-party data
Examples: Adobe Audience Manager, Oracle DMP
Ad Exchange
Types: Open exchanges (unrestricted) vs Private exchanges (selective)
 Function: Facilitate automated buying/selling
Volume: 70+ billion impressions daily

9. YouTube Advertising

Channel Strategy
Create quality video content
Curate into YouTube channel/profile
Aid discovery through relevant content

Ad Formats
Display Ads
Placement: Next to video (desktop only)
Pricing: CPC or CPM
Availability: Not on mobile devices
Overlay Ads
Placement: Bottom 20% of video
Control: Viewers can dismiss anytime
Pricing: CPC only
Availability: Desktop/laptop only
Skippable Video Ads (TrueView)
Skip option: After 5 seconds
Placement: Before, during, or after video
Pricing: Pay only if viewed 30 seconds or complete
Availability: All devices
Non-Skippable Video Ads
Duration: 15-20 seconds
Payment: Only when fully watched
Placement: Before, during, or after video
Mid-roll Ads
Requirement: Videos over 15 minutes
Placement: Natural pauses between scenes
Types: Skippable or non-skippable
Bumper Ads
 Duration: Up to 6 seconds
Type: Non-skippable
Optimization: Mobile-focused

YouTube Buying Models

Cost Per View (CPV)
Payment trigger: 30 seconds viewed OR interaction
Ad types: TrueView instream and discovery
Pricing: Second-price auction model
Reserved Media Placements
Pricing: Fixed cost (CPM or CPD)
Booking: 6 business days advance
Creative delivery: 4 business days advance

Content Strategy for YouTube

First 5 seconds: Must be compelling (skip option)
Content types: How-to, testimonials, emotional stories
Length: ~30 seconds optimal
Avoid: Hard-sell commercial style

10. Analytics and Optimization Challenges

Viewability Issues
Problem: 57% of display ads not viewable (2015)
Causes: User behavior, page loading issues, out-of-view placement
Standard: 50% pixels visible for 1 second (images) or 2 seconds (video)
Solutions: Tools like Integral Ad Science, MOAT

Ad Fraud Types
1. Domain Identity Theft: Fake URLs in ad units
2. Click/Impression Fraud: Mechanized clicking/viewing
3. Bot Activity: Robots masking as real users
4. Ad-stacking: Multiple ads in same placement
5. Pixel Stuffing: Large ads crammed into 1×1 pixel
Brand Safety Concerns
Ads appearing on inappropriate content
User-generated controversial content
Negative context association
Solutions: Blacklisting, keyword filtering, content labeling

11. Best Practices for Effective Display Ads

Creative Excellence
Strong CTA: Clear call-to-action buttons
Price inclusion: If competitive advantage
Visual aesthetics: Fonts, images, colors optimization
USP communication: One clear benefit message
Multiple variations: A/B test different approaches

Targeting Optimization
Relevance first: Match ad to audience interest
Frequency management: Optimal 3-5 exposures
Timing optimization: Schedule for peak engagement
Device optimization: Mobile vs desktop strategies

Performance Monitoring
Regular optimization: Daily for short campaigns
Metric analysis: CTR, CPC, conversions
Budget reallocation: From low to high performers
Creative refresh: Prevent ad fatigue

Key Formulas and Calculations

Essential Metrics

1. CTR = (Clicks ÷ Impressions) × 100

2. Effective CPC = Total Cost ÷ Total Clicks
3. Effective CPL = Total Cost ÷ Number of Leads
4. Effective CPA = Total Cost ÷ Number of Acquisitions
5. Engagement Rate = (Interactions ÷ Reach) × 100
6. ROAS = Revenue ÷ Ad Spend
Programmatic Calculations

Total Value Score = f(Relevance Score, Estimated Action Rate, Bid Price)
AdRank = Max Bid × Quality Score

Important Statistics for Exams

Global Digital Landscape

Internet users 2017: 3.5 billion (47% global population)
India Internet users: 429 million (34% penetration)
Mobile users in India: 731 million (57% of population)
Smartphone penetration: 267 million (21% of population)

Market Growth Rates

Global Internet growth: 5.8% annually
India digital ad growth: 30% annually
Mobile ad spending growth: 85% in India
US programmatic spending: 82% of digital ads

Performance Benchmarks
Average display CTR India: 0.13%
YouTube first banner CTR (1998): 30%
Facebook display impressions share: 26.7%
LinkedIn average CTR: 0.35%
Display ad viewability: 43% (57% not viewable)

Budget Allocation Guidelines

India 2017: TV 39.4%, Print 34%, Digital 15%
Digital breakdown: Display 58.6%, Search 35.4%
P-O-E-M best practice: 50% paid, 50% owned/earned
Frequency capping: 3-5 exposures optimal

Critical Success Factors

Strategic Planning
1. Customer journey mapping: AIDA + Advocacy model
2. Integrated approach: Balance paid, owned, earned media
3. Mobile-first strategy: Growing mobile usage
4. Data-driven decisions: Continuous measurement and optimization

Execution Excellence
1. Precise targeting: Use multiple targeting methods
2. Creative quality: Visual appeal and clear messaging
3. Programmatic adoption: Automated buying for efficiency
4. Cross-platform integration: Consistent brand experience

Performance Optimization
1. Real-time monitoring: Daily optimization for short campaigns
2. A/B testing: Multiple ad variations
3. Budget flexibility: Reallocate from low to high performers
4. Brand safety: Protect brand reputation online
This comprehensive study guide covers all major concepts, metrics, strategies, and best
practices from both chapters, formatted for easy review and exam preparation.