Online Marketing Trends Guide

Implications of Web 2.0 Trends on Online Marketing

Jong-Seo Kim

29 January 2008

Agenda

1. What is Web 2.0?
2. What is the impact of Web 2.0 on the media usage behavior?
3. How are Web 2.0 trends impacting online marketing?
4. How can Web 2.0 trends be used as new touchpoints?
5. Case studies
6. Innovative ideas on the Web
7. Glossary

© Pepper. a Computershare company 2

What has changed during the past decade?

PAST TODAY

Slow Internet connection Affordable high Internet
(e.g. 56k) restricts usage speed (ADSL, cable, etc.)
possibilities opens usage opportunities

Access the Web from
Access the Web from a
anywhere and via various
desktop PC
tools (wireless, UMTS, etc.)

Dynamic platforms through AJAX
HTML Static websites as silos recently developed XML
programming techniques CSS

Mature Internet user
Infant Internet user and all age groups using
the Web


What is Web 2.0 all about?

Web 2.0 is to a lesser extent about new technology creating greater Internet capabilities and
enabling the goals of the end-users, but it is to a greater extent about how the Internet is
being used by its users

Social Web

Technology as an enabler

Rich Internet Service-
Applications oriented
(RIA) architecture
+ (SOA)
• 100% user centric
• Decentralization
• Participatory culture
• Encourages open communication
• User has control over own data


Active participation online is strongly growing


How can participation in the Social Web look like?

Connecting with other users and communicating
with them in social networks
CONNECTING

CREATING COLLABORATING
Generating user-generated content, Work together with other users to
e.g. blogs, podcasts, etc. USER create collective knowledge and
share it online

COLLECTING AND SHARING
Sharing user-generated content or content in
general on the Web in online communities and also
collecting content from others (tags, bookmarking)


Agenda

1. What is Web 2.0?
2. What is the impact of Web 2.0 on the media usage
behavior?
5. Case studies
7. Glossary


How is social media being used among the different age
groups?

The majority of social media users comes from the age group 18-44, this is especially valid in
terms of active participation and creation of content (upload video/blog).

100% 6% 4% 4% 5% 6%
7%
9% 8%
18% 13%
20% 17%
80% 19% 21%
23%
24% 23%
60% 24%
24%
25%

40% 33%
28% 32% 31%
27% 24%
20%
22% 21% 21% 25%
16% 17%
0%
Watch video Upload video Photo sharing Social Update a blog Read a blog
networking

18-24 25-34 35-44 45-54 55-64 65+

Source: Global digital Living II, Parks Associates, 2007


How is social media being used among genders?

Except for watching and uploading videos, females use social media to a greater percentage
than males, especially photo sharing is much more used by females.

100%

80%
48% 49% 53% 53%
55%
61%
60%

40%

52% 51% 47% 47%
20% 39% 45%

0%
Watch video Upload video Photo sharing Social Update a blog Read a blog
networking

Male Female

Source: Global digital Living II, Parks Associates, 2007


How much time do consumers spent with different media?

Younger consumers in the US spend more time on the Internet than they are watching TV.

(in hours per Week)
15
14,3
13,5
12
12 11,8
10,7 11
9,8
9
8
7,4
6
4,8
3

0
Gen Y (18-26) Gen X (27-40) Younger boomers Older boomers Seniors (62+)
(41-50) (51-61)

Base: US households Watching TV Using the Internet

Source: Forrester‘s NACTAS 2006 Benchmark Survey


How much time do consumers spent with different media?

Broadband adoption drives up consumers‟ time online and at the same time decreases the
time spent for other media.

5,5
Using the Internet 6,1
7,4

7,9
Listening to the radio 7,3
7,1

13,1
Watching TV 12,8
12,7

(in hours per
week)
0 3 6 9 12 15

Base: US households 2006 2005 2004

Source: Forrester‘s NACTAS 2004-2006 Benchmark Survey


Agenda

1. What is Web 2.0?
2. What is the impact of Web 2.0 on the media usage behavior?
5. Case studies
7. Glossary


How did Marketing on the Web look in the past?

Marketing on the Web in the past was a top-down approach from the brand to the consumer,
the same as offline: Consumers were communicated through communication channels with a
message from the company and the outcome was a response from a limited amount of
consumers that received the message.

Consumers have become more
Consumers reluctant to plain advertising,
preferring the “neutral” opinion of
their peers:
“…the “person like yourself or your
peer” is seen as the most credible
spokesperson about a company and
Communication among the top three spokespeople in
message from every country surveyed.”
the organization (Source: Edelman Trust Barometer 2006)
“80% of consumers trust word of
mouth more than any other source“
Response (Source: emarketer.com)


How does Marketing on the Web look now?

Marketing on the Web today is influenced through the fact that consumers are talking and
listening to each other and exchanging information through various tools, the idea of push-
marketing is no longer effective in this highly-connected marketplace

Consumers Consumers

Message Consumers are talking and
listening to each other

What is the situation that the paradigm shift creates for a
company and its brand?

• Ease of access to social • Content/communication • Consumers online add
media has democratized from companies is an their own content,
the market invitation for which makes
consumers to engage communication once
• Customers have more
with the brand coming from the brand
abilities to talk back,
“take a life of its
criticize, share stories • It is no longer just a
own”
and opinions simple top-down
communication approach • As an example a
• Customers value
from the company to the website such as
information about brands
consumer Youtube features
more from other trusted
hundreds of videos
customers online than
on brands or
from billboards or glossy
products directly
collaterals
created by users
independent from
© Pepper. a Computershare company the company 20

How can companies react to the online developments?

Social Media demands that brands loose some control, but at the same time opens the
opportunity to gain influence through contributing to the online conversation.

Monitor what

1 is happening
around your
brand online

4
Leverage conversation 2
with customer
community for your
Brand Engage in transparent
and authentic
benefits conversation

Give target groups

3 tools to share their
message

Agenda

1. What is Web 2.0?
2. What is the impact of Web 2.0 on the online behavior of users?
5. Case studies
7. Glossary


How can the Web 2.0 trends act as customer touchpoints for
companies?

interaction

conversation

Customers contributions Company

Web 2.0 is characterized through much stronger interaction, which creates an open
conversation between customers themselves and between customers and company

Platforms support interaction and conversation between customers and the company;
social networks, blogs, virtual worlds, RSS, podcasts, etc. serve as strongly growing
online touchpoints


What are popular online customer touchpoints?

Touchpoint Description Example

Provide commentary or news on a particular subject combining text, images,
Blogs
and links to other blogs, websites and other media related to its topic

Media sharing Platforms that give users the possibility to share media content such as
networks photos and videos (e.g. Youtube for videos and Flickr for photos)

Information Platforms that give users the possibility to share text-based content (in
sharing networks contrast to media sharing networks)

Support communication and identify community structures, mostly with focus
Social networks
on a specific target group (e.g. students, professionals, etc.)

Distinguishes itself through its ability to be syndicated, subscribed to, and
Podcasts
downloaded automatically (e.g. through RSS)

Makes it possible to be informed with frequently updated content (e.g. blogs,
RSS feeds
podcasts) in an automated manner, which is easier than checking manually

Interact online (socialize, participate in activities, create and trade items,
Virtual worlds
etc.) with others through an advanced level of a social network service


What impact do the new touchpoints have on the
communication habits of people?

Blogs
Communities

Podcasts
Wikis +
Mass of new touchpoints ―live‖ from interaction of
Traditional media have a stronger penetration in terms people and provide more in-depth information
of reach, but offer low possibility of interaction for The penetration disadvantage is overcome by search
people and are rather controlled by the producers engines and innovative mechanisms (e.g. tagging)

The Long Tail
phenomenon
describes the
importance of
niche media
touchpoints
through user
participation


Characterization of online customer touchpoints

Online customer touchpoints will be characterized through five criteria:

Number of Internet users that can be
reached with the customer touchpoint

Reach Ability of the customer
Level of control the 5 touchpoint to further
company can maintain
4 spread the message to
over its message through
3 other online customer
the customer touchpoint
2 touchpoints
Control Spread
1
0

Level of interaction that
All costs incurring
can be generated
through the
through the Interaction Costs usage/presence of the
usage/presence of the
customer touchpoint
customer touchpoint


Touchpoint: Social networks

• MySpace has more than 100 million members,
Reach Facebook follows with approx. 50 million
5 members; in total social networks reach
4 approx. 40% of all Internet users
3 • 68% of social networkers use photo sharing
2 sites, 80% read blogs
Control Spread
1 • Spread of message is mostly limited on network
0 platform
• Having a presence on a social network requires
low investment, placing ads on popular
networks is expensive (in 2006 MySpace alone
Interaction Costs accumulated USD 180 million in ad spends)
• Strong interaction with members of network
Costs: Higher rating indicates low costs, lower rating indicates higher costs • Control over own presence is given, but no
control on member communication

• The possibilities for companies vary depending on the network, e. g. Facebook has opened
its site to third-party applications, which gave marketers and companies a viral and effective
means of promoting their website to the Facebook audience.
• Amazon launched an application called ‗book reviews‘ on Facebook, which allows members
to publish book reviews on their profile linking to the book on amazon as well as finding other
members who have read the same book and what else they were interested in


How can these online touchpoints be used to generate
knowledge about consumers? (I)

It is possible to build a customer interest profile over time based on the online actions of the
consumer, which can serve as an enrichment of the existing demographics and CRM data.

• The information gathered can be used to develop a 360 degree view of the customers
• All activities are combined in an interest profile that builds over time, including online data, CRM data (e.g.
participation in customer loyalty programs) and attitudinal data (e.g. surveys)
• Online data enables to identify customers‘ interest in real-time
• Drivers of intent such as recency and frequency can be used to drive targeted marketing campaigns


knowledge about consumers? (II)

An analysis of these customer profiles easily enables to view website visitors with similar
interests and create targeted segments based on their interest profiles.

All customers
All customers interested in
interested in SUV sedans get an
get an email with a email with
link to a video information on
about recent model performance and
changes innovation in that
vehicle segment

Response of customers is added to
their profile and together with other
elements reveals a measure of
engagement, which enables to
extract the desirable audience with
high interest in products


knowledge about consumers? (III)

These engagement figures help a company to make a decision on which customers they
should invest further and to which ones they should not.

• With the profile information it is easier to
invest in an expensive glossy brochure
knowing it will reach people who have
clearly indicated their interest
• At the same time it is a reward for a
customer who is currently looking to
purchase a new SUV
• It is also possible to contact the local car
dealer to ask him contact the customer
and offer him a test drive


Agenda

1. What is Web 2.0?
5. Case studies
7. Glossary


Case study: Kryptonite and the power of the Web

In 2004 the reputation of the American lock manufacturer Kryptonite suffered heavily through
their late response on dealing with negative consumer references online

One of the triggers was a
video published on
Youtube showing how
simply Kryptonite locks
can be opened by using a
ballpoint pen


Case study: Kettle Foods engaging the consumer (I)

After having engaged in a conversation with their most passionate customers, Kettle decided
to reward all of their fans for their information and feedback.

People‟s
choice 2005

People‟s
choice 2007

• Kettle established the people‘s choice awards giving the consumers the possibility to nominate the flavors to be
created and afterwards decide which flavors would make it to the shelf
• Defining the Kettle brand was now fully in the hands of the consumer
• Kettle was willing to take this leap of faith, which was a much better reward for the fans of the brand compared
to a free voucher or other sorts of discounts


Case study: Kettle Foods engaging the consumer (III)

In order to retain their customers Kettle created a platform for exchange and established a
regular scheduled mix of programs on their website that consumers could look forward to.

• The ―Kettle neighborhood‖ contained fun and
interesting content through running contests
that encouraged interaction and creativity
• This created an environment for Kettle
customers that was about more than just a
potato snack, but directly appealing to the
consumers‘ lifestyles
• As a result of creating this interactive
environment consumers even started to
create their own language and Kettle
responded to it by capturing this culture online
through a Kettle dictionary


Case study: Stormhoek Winery, South Africa (I)

A small South African winery used the blogosphere and online social networks as a
marketing tool to stand out in a sea of look-alike competitors. The results was an increase in
awareness and sales

Many recipients mentioned the wine
Stormhoek offered a free wine
in their blogs and drew attention to
bottle to any blogger (if of legal
the brand on the Web and also
drinking age and has blogged for
increased Stormhoek‘s hit rate on
at least 3 months)
search engines

Results:
• Sales increase from 50,000 cases a year to 300,000
cases a year
Stormhoek organized more than
• Real-time feedback from customers 100 ―geek‖ dinners around the
• Supermarkets and wine stores give valuable shelf globe gathering tech workers and
space to Stormhoek influential bloggers

Stormhoek campaign spends totaled only USD 40k


Case study: Stormhoek Winery, South Africa (II)

• Unusual
appearance for a
winery‘s website
• Strong participation
in social networks
(facebook, flickr,
youtube, blogs)
• Offers RSS feeds
and even created an
own ―Stormhoek‖
sound
• Visitors are able to
post on the winery‘s
website and have
conversations with
other visitors


How do the new online touchpoints work together with
the traditional ones?

New online Traditional
touchpoints media

• New online touchpoints are not an substitute for traditional media, but rather
an enhancement for better exposure online and therefore a greater reach
• A company needs to understand how and where the target audience want to
consume information and then develop a coordinated integrated campaign
with all touchpoints working together


Agenda

1. What is Web 2.0?
5. Case studies
7. Glossary


Like.com: Visual shopping search engine

Users can narrow searches by
focusing on a specific part of
the product and the color,
shape and pattern as well as
price range

Like.com makes use of automated picture recognition
technology and identifies items in several shops similar to the
one the user has chosen


ChaCha: Search engine

• ChaCha differentiates
itself from other
search engines
through providing
real-time search help
from guides
• Guides have profiles,
featuring their areas of
expertise and most
recent answers.
They're also rated by
users
• The promise of people
answering search
queries will likely
bring out qualitative
and opinion-based
questions


Agenda

1. What is Web 2.0?
5. Case studies
7. Glossary


Glossary index

• AJAX • Second Life
• Blog • Service-oriented Architecture
• Crowdsourcing • Social Media
• Consumer Generated Media • Search Engine Optimization
• Folksonomy • Tag
• The Long Tail • Tag cloud
• Marketing 2.0 • VoIP
• Mashup • Web 2.0
• Micro-blogging • Webcast
• Podcast • Web Feed
• Rich Internet Applications • Widget
• RSS (Really Simple Syndication) • Wiki
• Search Engine Marketing (SEM)


Glossary: AJAX

AJAX (short for Asynchronous JavaScript and XML):
AJAX, is a web development technique used for creating interactive
web applications. The intent is to make web pages feel more
responsive by exchanging small amounts of data with the server
behind the scenes, so that the entire web page does not have to be
reloaded each time the user requests a change. This is intended to
increase the web page's interactivity, speed, functionality, and
usability.
Ajax creates the necessary initial conditions for the evolution of
complex, intuitive, dynamic, data-centric user interfaces in web
pages (see also SOA and RIA)— and therefore served as one of
the main technological drivers within the Web 2.0 development Example for AJAX usage is Google maps – the ability
to navigate around a map without refreshing the page
Ajax web pages can appear to load relatively quickly since the
payload coming down is much smaller in size, and the rest of the
layout does not have to be redrawn on each update. An example of
this technique is a large result set where multiple pages of data
exist.
Marketing benefits: AJAX can simplify features like product zoom
and enlargement, or shopping cart additions.
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Glossary: Blog

Blog (short form for „web log‟):
A blog is a website where entries are written in chronological order and commonly
displayed in reverse chronological order.
Blogs provide commentary or news on a particular subject such as food, politics, or local
news; some function as more personal online diaries. A typical blog combines text,
images, and links to other blogs, web pages, and other media related to its topic. The
ability for readers to leave comments in an interactive format is an important part of Boing Boing is a weblog of
many blogs. Most blogs are primarily textual, although some focus on photographs (e.g. cultural curiosities and
Flickr, www.flickr.com), videos (vlogging: e.g. YouTube, www.youtube.com), music (MP3 interesting technologies. It's the
most popular blog in the world,
blog) or audio (podcasting) and are part of a wider network of social media. as ranked by Technorati.com,
and won the Lifetime
In May 2007, blog search engine Technorati (www.technorati.com) was tracking more Achievement and Best Group
than 71 million blogs. Blog awards at the 2006
Bloggies ceremony.
Blogs are successful because there is no technical knowledge required, it is easy to www.boingboing.net

update and new technologies allow easy content sharing and searching.
Marketing benefits: Corporate blogs allow companies to quickly get information out to
customers. Blogs give companies many tools of interaction, such as commenting and
trackbacks. By setting up a company blog, a company declares their company is open
to conducting an online dialogue between bloggers. If a company can run a successful
blogging operation, a company can gain links and the opportunity to have a dialogue
with many other blog readers from the bloggers who write and refer to a company blog Back to
previous
post. slide


Glossary: Crowdsourcing

Crowdsourcing:
Crowdsourcing is a term for the act of taking a job traditionally performed by an
employee or contractor, and outsourcing it to an undefined, generally large
group of people, in the form of an open call.
The idea of crowdsourcing can bring customers into the product design
www.innocentive.com
process. For online products, companies can let users test prototypes and beta
versions, and make adjustments based on the feedback. The conversation
between users and developers will get better products on the market faster.
It means getting access to millions of ‗brains‘ around the globe without having
to employ them. Successful examples of crowdsourcing are:
• Procter & Gamble posts problems on a website called InnoCentive,
offering large cash rewards to more than 90,000 "solvers" who make
up this network of backyard scientists.
• In 2006, the American online DVD rental company Netflix announced
that they were offering a $1,000,000 prize for anybody who could
improve their existing DVD rating system by at least 10%. Contest
participants can download vast amounts of anonymous data from
Netflix to test their proposals. In addition to the big prize Netflix are
offering annual progress prizes of $50,000. So far 17,000 attempts
have been submitted; the best showing an improvement of 8.26% Back to
previous
over Netflix‘s current system. slide


Glossary: Consumer Generated Media (CGM)

Consumer Generated Media (CGM):
Consumer generated media are various kinds of media content that are produced
by end-users, (as opposed to traditional media producers such as professional
writers, publishers, journalists, licensed broadcasters and production companies).
List of citizen marketers
Originated as a reference to posts made by consumers within online venues such as and their websites:
internet forums, blogs, wikis, discussion lists etc., on products that they have
purchased. Shoppers who are researching products often use other consumers' http://www.creatingcusto
opinions when making buying decisions. merevangelists.com/cm/e
The term has evolved to include video, audio and multimedia posts created by xamples.asp
consumers in support (or negative parody/in-protest) of products, brands and
corporate institutions.
Often CGM is partially or totally monitored by website administrators to avoid
offensive content or language, copyright infringement issues, or simply to determine
if the content posted is relevant to the site's general theme.
Marketing aspect: There are several examples that consumer-generated media has
at least as much power as corporate communications. Examples include Jeff Jarvis'
unofficial blog campaign about his "Dell Hell" experience and the independent iPod
fan site iLounge.

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Glossary: Folksonomy

Folksonomy:
A folksonomy is the practice and method of collaborative categorization using
freely-chosen keywords called tags.
Folksonomies are commonly used to classify and retrieve web content such as
Web pages, photographs and Web links. Folksonomic tagging is intended to
make a body of information increasingly easy to search, discover, and navigate
over time. A well-developed folksonomy is ideally accessible as a shared
vocabulary that is both originated by, and familiar to, its primary users. Two
widely cited examples of websites using folksonomic tagging are Flickr and
del.icio.us.
As folksonomies develop in Internet-mediated social environments, users can
discover (generally) who created a given folksonomy tag, and see the other
tags that this person created. In this way, folksonomy users often discover the
tag sets of another user who tends to interpret and tag content in a way that
makes sense to them. The result is often an immediate and rewarding gain in
the user's capacity to find related content.
Marketing effect: People with similar methods of classifying things may act to
reinforce each others biases and pre-existing viewpoints. Folksonomies are
routinely generated by people who may have spent a great deal of time
interacting with the content they tag. This level of interaction has the ability to Back to
influence the information flow or interests of readers. previous
slide


Glossary: Long Tail, The

The Long Tail:
The phrase The Long Tail describes certain business and
economic models such as Amazon.com or Netflix. Businesses with
distribution power can sell a greater volume of otherwise hard to
find items at small volumes than of popular items at large volumes.
It is argued that products that are in low demand or have low sales
volume can collectively make up a market share that rivals or
exceeds the relatively few current bestsellers and blockbusters, if
the store or distribution channel is large enough.
An analysis of Amazon sales found out that a large proportion of
Amazon.com's book sales come from books that are not available
in brick-and-mortar stores. The Long Tail is a potential market and
the distribution and sales channel opportunities created by the
Internet often enable businesses to tap into that market
successfully.
The Long Tail also has implications for the producers of content,
especially those whose products could not - for economic reasons
- find a place in pre-Internet information distribution channels
controlled by book publishers, record companies, movie studios,
and television networks. Small sites make up the bulk of the Back to
Internet‘s content. previous
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Glossary: Marketing 2.0

Marketing 2.0:
Marketing 2.0 is a natural outgrowth of Web 2.0 as it refers to the
transformation of marketing resulting from the network effect of the Internet.
Marketing 2.0 represents a shift in marketing to account for customers
researching and buying goods and services independent of advertising and
marketing campaigns and messages. With broadband as the new utility in the
household and at work, customers now make decisions on their own terms,
relying - in seconds - on friends, family, colleagues, and other trusted networks
to form opinions.
Marketing 2.0 is about turning
Where traditional advertising and marketing is based on key messages and transactions into interactions and
support points in an attempt to force a purchase decision, Marketing 2.0 is interruptions into integrations.

based on authentic, real content used to fuel conversations and purchase
decisions in a manner that allows the customer to draw their own conclusions.
Traditional media may be used in Marketing 2.0 - online and offline - but media
is used to talk about content, not brand or product positioning. "Creative
concepts" are left behind in favor of "content concepts.―
This shift has implications on how marketing gets created; it means relying on
a different process, skills, and set of deliverables in order to brand, engage,
and sell to customers. The process puts content front and center as the means
to engage the market. Required skills now include editorial, documentary,
gaming, and other content-related capabilities. Promoting the content may also Back to
previous
include participating in social networks in a fully disclosed, credible fashion. slide


Glossary: Mashup

Mashup:
A mashup is a web application that combines data from more than one source into an integrated
experience. The etymology of this term derives from its similar use in pop music, possibly from the
hip-hop music practice of mixing two or more songs.
Mashups has similarities to SOA through its purpose of sharing data from different sources, but is
based on a different technology.

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Glossary: Micro-blogging

Micro-blogging:
Micro-blogging is a form of blogging that allows users to write brief text
updates (usually less than 200 characters) and publish them, either to be
viewed by anyone or by a restricted group which can be chosen by the
user. These messages can be submitted by a variety of means, including
text messaging, instant messaging, email, MP3 or the web. It is often
possible to subscribe to such blogs using a web feed such as RSS.
The most popular service is the awarded blog site called Twitter, which was
launched in July 2006. The main competitor to Twitter is Jaiku. Screenshot twitter.com
The purpose is to allow people to keep in touch, or just give some news to
friends or associates, without getting to heavily involved in a conversation,
or writing a blog entry or email. It provides one place, to update people in a
quick short burst.
Marketing benefit: Micro-blogging can be well used for affiliate marketing
purposes. Micro-blogging platforms give people a means to better get the
word out about their blog, but also communicate beyond just their entries,
and creating a shared experience with their ―colleagues.‖
Once people build a network of readers, and fellow bloggers, it is possible
to start asking questions, gather information, and just get involved in the Screenshot jaiku.com
conversation to get some ideas and fuel for their blog. Back to
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Glossary: Podcast

Podcast:
A podcast is a digital media file (either only audio or video with audio), or
a series of such files, that is distributed over the Internet using
syndication feeds for playback on portable media players and computers.
A podcast is a specific type of webcast which, like 'radio', can mean either
the content itself or the method by which it is syndicated; the latter is also
termed podcasting. The term "podcast" is a portmanteau of the name of Symbol for podcasts

Apple's portable music player, the iPod, and broadcast; a "pod" refers to
the iPod, and "cast" to the idea of broadcasting. Specifically, Podcast
means, Portable OnDemand broadCAST.
Though podcasters' web sites may also offer direct download or
streaming of their content, a podcast is distinguished from other digital
media formats by its ability to be syndicated, subscribed to, and
downloaded automatically, using an aggregator or feed reader capable of
reading feed formats such as RSS.
In March 2006 it was reported that 80% of podcast "episodes" are
"consumed" on the PC onto which they are downloaded i.e. they are
never actually transferred to an iPod or other portable player. iTunes podcast store on www.apple.com

Usage possibilities of podcasts for businesses are seminar recordings,
interactive element in e-newsletters, in-house training tutorials, online PR Back to
and demonstrations. previous
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Glossary: Rich Internet Applications (RIA)

Rich Internet Application (RIA):
Rich Internet applications (RIA) are Web applications that have the features and functionality of
traditional desktop applications. RIAs typically transfer the processing necessary for the user
interface to the Web client but keep the bulk of the data (i.e., maintaining the state of the program,
the data etc) back on the application server.
Because RIAs employ a client engine to interact with the user, they are:
• Richer. They can offer user-interface behaviors not obtainable using only the HTML widgets
available to standard browser-based Web applications.
• More responsive. The interface behaviors are typically much more responsive than those of a
standard Web browser that must always interact with a remote server.
The most sophisticated examples of RIAs exhibit a look and feel approaching that of a desktop
environment and therefore represents the evolution of the browser from a static request-response
interface to a dynamic interface. Using a client engine can also produce other performance benefits:
• Asynchronous communication. The client engine can interact with the server asynchronously --
that is, without waiting for the user to perform an interface action like clicking on a button or
link. This option allows RIA designers to move data between the client and the server without
making the user wait (e.g. Google Maps)

Back to
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Glossary: RSS

RSS (Really Simple Syndication):
RSS is a family of web feed formats used to publish frequently updated content such as
blog entries, news headlines or podcasts. An RSS document, which is called a "feed",
Symbol for RSS feeds
"web feed", or "channel", contains either a summary of content from an associated web
site or the full text. RSS makes it possible for people to keep up with their favorite web
sites in an automated manner that's easier than checking them manually.
An RSS feed reader (e.g. Newsgator, Feed Demon) is required to subscribe to RSS
feed. Internet Explorer 7 features a browser-integrated RSS feed reader. Popular RSS feed readers are
Feed Demon and Newsgator
Marketing benefits: For retailers, it provides advantages through being an
instantaneous, automated, inexpensive way to message to consumers by providing the
benefits of email – notice of sales, price changes, new arrivals, trends and scarce
inventory – without its drawbacks – irrelevant messages, inappropriate segmentation,
and spam (e.g. Amazon is using RSS to announce their bestsellers and to help their
users keep track of releases they are most interested in).
According to a study by MarketingSherpa 40% of marketers did definitely plan on
investing in adding RSS feeds to their marketing mix in 2006, while 19% planned to
spend more than a year out.
Almost non-existent until the middle of 2005, RSS advertising generated USD 650k in
2006 and is projected to gro to USD 129.6 million in 2010.
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Glossary: Search Engine Marketing (SEM)

Search Engine Marketing (SEM):
Search Engine Marketing is a form of Internet Marketing that seeks to
promote websites by increasing their visibility in the Search Engine results
pages (SERPs) and has a proven ROI (Return on Investment).
SEM methods include:
Example of Google Adwords
• Search Engine Optimization (or SEO)
• Paid placement: A pay per click model, meaning advertisers only pay
when a user actually clicks on an ad to visit the advertiser's website.
Advertisers bid on keywords they believe their target market would type in
the search bar. These ads are called a "Sponsored link" or "sponsored
ads" and appear next to, and sometimes, above the natural or organic
results on search engine results pages.
• Paid inclusion: The search engine company charges fees related to
inclusion of websites in their search index.
In 2006, North American advertisers spent US$9.4 billion on search engine
marketing, a 62% increase over the prior year and a 750% increase over the
2002 year. The largest SEM vendors are Google AdWords, Yahoo! Search
Marketing, and MSN adCenter. Depending on the search engine, minimum
prices per click start at US$0.01 (up to US$0.50). Very popular search terms Back to
can cost much more on popular engines. previous
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Glossary: Second Life

Second Life:
Second Life is an Internet-based virtual world launched in 2003, developed by
Linden Research, Inc.
A downloadable client program called the Second Life Viewer enables its users,
called "Residents", to interact with each other through motional avatars, providing
an advanced level of a social network service. Residents can explore, meet other
Residents, socialize, participate in individual and group activities, create and trade
items and services from one another.
In all, more than 8.9 million accounts have been registered, although many are
inactive, some Residents have multiple accounts, and there are no reliable figures
for actual long term consistent usage.
Marketing aspects: Multiple companies have established a second life presence
for branding purposes (IBM, BMW, Sony, Toyota, Adidas, etc.) and using as a forum
for explaining complex products and services.
Reuters has opened up a news service devoted to the virtual world and Calvin
Klein is launching a fragrance (ck IN2U), despite the fact that a virtual world is a
scentless environment.
Second Life allows visitors to interact in real-time using many different media at
once. Companies can also use Second Life as a testing ground for prototypes and Back to
customer focus groups. previous
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Glossary: Service-oriented Architecture (SOA)

Service-oriented architecture (SOA):
Service Oriented Architecture (SOA) is an evolution of distributed computing and modular
programming.
A flexible, standardized architecture is required to better support the connection of various
applications and the sharing of data as being done in the Web 2.0 era. SOA is one such
architecture. It unifies business processes by structuring large applications as an ad-hoc collection
of smaller modules called services.
In a SOA environment, resources on a network are made available as independent services that
can be accessed without knowledge of their underlying platform implementation, therefore
simplifying the usage for the user.
SOA has similarities to mashups through its purpose of sharing data from different sources, but is
based on a different technology.

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Glossary: Social Bookmarking

Social Bookmarking: Popular Social Bookmarking websites
(click on symbol to connect to website):
Social bookmarking is a way for Internet users to store, organize, share
and search bookmarks of web pages online to access them from every
computer. In a social bookmarking system, users save links to web pages
that they want to remember and/or share.
Most social bookmark services encourage users to organize their bookmarks
with informal tags instead of the traditional browser-based system of folders,
although some services feature categories/folders or a combination of
folders and tags. They also enable viewing bookmarks associated with a
chosen tag, and include information about the number of users who have
bookmarked them. Some social bookmarking services also draw inferences
from the relationship of tags to create clusters of tags or bookmarks.
Many social bookmarking services provide web feeds for their lists of
bookmarks, including lists organized by tags. This allows subscribers to
become aware of new bookmarks as they are saved, shared, and tagged by
other users.
As people bookmark resources that they find useful, resources that are of
more use are bookmarked by more users. Thus, such a system will "rank" a
resource based on its perceived utility. This is arguably a more useful metric
for end users than other systems which rank resources based on the number Back to
of external links pointing to it. previous
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Glossary: Social Media

Social Media: Social media examples
(click on symbol to connect to website):
Social media describes the online technologies and practices that people
use to share content, opinions, insights, experiences, perspectives, and Wikis:
media themselves. Social media enable shared community experiences,
both online and in person.
Social media can take many different forms, including text, images, audio,
and video. The social media sites typically use tools like message boards, Social
networking:
forums, podcasts, bookmarks, communities, wikis, blogs etc.

Video
sharing:

Virtual
reality:

Photo
sharing:

Social
bookmarking:

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Glossary: Search Engine Optimization (SEO)

Search Engine Optimization (SEO):
Search engine optimization (SEO), a form of search engine marketing
(SEM), is the process of improving the volume and quality of traffic to a web
site from search engines via "natural" ("organic" or "algorithmic") search
results. Usually, the earlier a site is presented in the search results, or the
higher it "ranks", the more searchers will visit that site. SEO can also target
different kinds of search, including image search, local search, and industry-
specific vertical search engines.
As a marketing strategy for increasing a site's relevance, SEO considers how
search algorithms work and what people search for. SEO efforts may involve
a site's coding, presentation, and structure.
Search engines consider a wide range of undisclosed factors for their ranking
algorithms. Google says it ranks sites using more than 200 different signals.
The three leading search engines, Google, Yahoo and Microsoft's Live
Search, do not disclose the algorithms they use to rank pages.

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Glossary: Tag

Tag:
A tag is a (relevant) keyword or term associated with or
assigned to a piece of information (e.g. a picture, article, or
video clip), thus describing the item and enabling keyword-
based classification of information.
Tags are usually chosen informally and personally by the
author/creator or the consumer of the item. Tags are
typically used for resources such as computer files, web
pages, digital images, and internet bookmarks. For this
reason, "tagging" has become associated with the Web 2.0
buzz.
Tag classification, and the concept of connecting sets of
tags between web/blog servers, has led to the rise of Popular tagging site www.tagworld.com
folksonomy classification over the internet, the concept of
social bookmarking, and other forms of social software.
Although "tagging" is often promoted as an alternative to
organization by a hierarchy of categories, more and more
online resources seem to use a hybrid system, where items
are organized into broad categories, with finer classification
distinctions being made by the use of tags. Back to
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Glossary: Tag Cloud

Tag Cloud:
A tag cloud (or weighted list in visual design) is a visual depiction
of content tags used on a website. Typical tag clouds have
between 30 and 150 tags.
Often, more frequently used tags are depicted in a larger font or
otherwise emphasized, while the displayed order is generally
alphabetical. Thus both finding a tag by alphabet and by popularity
is possible.
Selecting a single tag within a tag cloud will generally lead to a
collection of items that are associated with that tag.
Tag clouds have been popularised by Del.icio.us and Technorati,
among others.
Marketing benefits: Tag clouds are a powerful navigation
mechanism because they can convey more information than other
mechanisms as they add another dimension.
Since tag clouds reflect the interest of the users it also helps to Examples of tag clouds
monitor community trends.

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Glossary: VoIP

VoIP (short form for „Voice over Internet Protocol‟):
VoIP is the routing of voice conversations over the Internet or through any
other IP-based network.
VoIP is location independent, only an internet connection is needed to get a
connection to a VoIP provider; for instance call centre agents using VoIP
phones can work from anywhere with a sufficiently fast and stable Internet
connection.
VoIP phones can integrate with other services available over the Internet,
including video conversation, message or data file exchange in parallel with
the conversation, audio conferencing, managing address books and passing
information about whether others (e.g. friends or colleagues) are available
online to interested parties.
Marketing benefits: VoIP allows consumers to connect directly from a
Website to a phone conversation, which can immediately help address Fig.: Overview of how VoIP works
consumer buying concerns, encourage up sells, and increase conversion from
Website visitors. Very useful for high-touch, high-consideration purchases, or
ones where buyer and seller are not that familiar with each other (e.g.
argument when eBay acquired VoIP leader Skype, www.skype.com).

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Glossary: Web 2.0

Web 2.0:
The phrase Web 2.0 refers to a perceived second generation of web-
based communities and hosted services — such as social-networking
sites, wikis and folksonomies — which aim to facilitate collaboration
and sharing between users.
Although the term suggests a new version of the World Wide Web, it
does not refer to an update to Web technical specifications, but to
changes in the ways software developers and end-users use the web
as a platform. All kinds of websites fuse together, which means that
you can see pieces of sites on other sites.
It is also referred to as a social phenomenon embracing an approach
to generating and distributing Web content itself (user generated
content), characterized by open communication, decentralization of
authority, freedom to share and re-use, and "the market as a
conversation―. The trend moves from a consumer economy to a
participant economy (―social web‖).
The most "Web 2.0"-oriented applications, which could only exist on
the Internet, deriving their power from the human connections and
network effects that Web 2.0 makes possible, and growing in Directory of Web 2.0 websites (www.go2web20.net)
effectiveness the more people use them (eBay, Wikipedia, del.icio.us, Back to
Skype). previous
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Glossary: Webcast

Webcast:
A webcast is a live media file distributed over the Internet using streaming media technology. Essentially,
webcasting is broadcasting over the Internet.
The largest "webcasters" include existing radio and TV stations who "simulcast" their output, as well as a multitude
of Internet only "stations". The term webcasting is usually reserved for referring to non-interactive linear streams or
live events.
The ability to webcast using cheap/accessible technology has allowed independent media to flourish. There are
many notable independent shows that broadcast regularly online. Often produced by average citizens in their
homes they cover many interests and topics; from the mundane to the bizarre. Webcasts relating to computers,
technology, and news are particularly popular and many new shows are added regularly. This supports the Long
Tail theory within the Web 2.0 movement.

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Glossary: Web Feed

Web Feed:
A web feed (e.g. RSS feeds) is a data format used for serving users frequently updated content. Content
distributors syndicate a web feed, thereby allowing users to subscribe to it.
Making a collection of web feeds accessible in one spot is known as aggregation, which is performed by an Internet
aggregator.
In the typical scenario of using web feeds, a content provider publishes a feed link on their site, which end users
can register with an aggregator program (also called a feed reader or a news reader*) running on their own
machines; doing this is usually as simple as dragging the link from the web browser to the aggregator. When
instructed, the aggregator asks all the servers in its feed list if they have new content; if so, the aggregator either
makes a note of the new content or downloads it.
The kinds of content delivered by a web feed are typically HTML (webpage content) or links to websites and other
kinds of digital media. Aggregators with podcasting capabilities can automatically download media files.
Web feeds have some advantages compared to receiving frequently published content via email:
• When subscribing to a feed, users do not disclose their email address, so users are not increasing their
exposure to threats associated with email: spam, viruses, phishing, and identity theft.
• If users want to stop receiving news, they do not have to send an "unsubscribe" request; users can simply
remove the feed from their aggregator.

* Feed readers are built into the new versions of web browsers like Internet Explorer or Firefox; one of the
most popular web-based feed readers is bloglines (www.bloglines.com); there are also desktop feed Back to
readers such as feed demon (www.feeddemon.com) previous
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Glossary: Widget

Widget:
A widget is a portable chunk of code that can be installed and
executed within any separate html-based web page. A widget can be
created for just about every site or service possible thus allowing Examples for widgets
users to pull it into personalized homepages, blogs or other social
website pages.
Widgets are a way for a site or service to creatively offer products,
services or news without having to visit the actual site. Similar to
feeds and syndication, widgets can save a user time by making
everything they care about on the web easily accessible in one place.
Widgets are used as a distribution method by ad networks such as
Google‘s AdSense, by media sites such as Flickr, by video sites such
as YouTube and by hundreds of other organizations.
Marketing benefit: Applications can be integrated within a third party
website by the placement of a small snippet of code. This is
becoming a distribution or marketing channel for many companies.
The code brings in ‗live‘ content – advertisements, links, images –
from a third party site without the web site owner having to update.
This offers new possibilities especially for direct marketing purposes
within the online community. Back to
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Glossary: Wiki

Wiki:
A wiki is a collaborative website which can be directly edited by anyone with
access to it. One of the best known wikis is Wikipedia (www.wikipedia.com).
Critics of open-source wiki systems argue that these systems could be easily
tampered with; while proponents argue that the community of users can
catch malicious content and correct it.
A defining characteristic of wiki technology is the ease with which pages can
be created and updated. Generally, there is no review before modifications Screenshot of www.wikipedia.org, which
is the most famous wiki on the Web
are accepted. Many wikis are open to the general public without the need to
register any user account. Sometimes session log-in is requested to acquire
a "wiki-signature" cookie for autosigning edits. Many edits, however, can be
made in real-time, and appear almost instantaneously online.
Many wiki communities are private, particularly within enterprises. They are
often used as internal documentation for in-house systems and applications.
The "open to everyone", all-encompassing nature of Wikipedia
(www.wikipedia.com) is a significant factor in its growth, while many other
wikis are highly specialized.
Screenshot of www.wikitravel.org, which
is a site for traveller information
List of wikis: http://en.wikipedia.org/wiki/List_of_wikis Back to
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Backup


Stages in Internet use

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Types of Engagement

At the end of 2006, Time magazine
decided that its person of the year was
'You‟ in dependence on the user
shaping and gaining control over the
information on the Internet
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The Internet‟s Growth Curve

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New channels have emerged to meet the needs of
the users

Communication
Personal
Community

Information

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An online user can have multiple identities on the Web

• Online users have different identities
according to purpose, e. g. who I know,
what I buy, what I like, etc.
• A participation on different online
platforms gives the user control on how
different interest spheres mix or do not
mix because there is not an unique
platform for everything

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Strong growth of blogs

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Source: Technorati slide


Forms of the social web

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Ad Spends on Social Networks


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