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reviews for eMarketing:
the essential guide to online marketing first edition

“Quirk’s eMarketing handbook covers all the most important concepts which are
necessary for eMarketing excellence today. I would highly recommend it as both a
study guide and a practitioner’s reference manual. Congratulations to the QuirkStars
on all the thought, research and work that has obviously gone into this.”

Dave Duarte, founder and director of Nomadic Marketing, UCT Graduate School of
Business

“WOW! It is an inspiration to see such a well written and truly essential guide to online
marketing being written by South Africans! eMarketing: The Essential Guide to Online
Marketing should be read and referenced by every smart marketer who is dealing with
the complicated world of eMarketing.”

Bronwen Auret, Online Marketing Specialist, South African Tourism

“The perfect starting point for anyone entering the world of online marketing…. truly
impressive.”

Stafford Masie, Country Manager, Google South Africa

“I’ve known Quirk for many years and it’s very exciting to see all their experience
distilled into this textbook. Furthermore, their contribution to Open Education by
licensing this book under Creative Commons is an initiative I strongly support. Read
this book.”

Scott Gray, Interactive Marketing, BMW South Africa

 Second Edition
eMarketing: The Essential Guide to Online Marketing
By Rob Stokes
Compiled by Sarah Blake

First published 2008 by Quirk eMarketing (Pty) Ltd.

© Copyright 2008, 2009 Quirk eMarketing (Pty) Ltd.

This book is published under the Creative Commons Attribution-Noncommercial-No

Derivative Works 3.0 Unported License. This means that you can share and distribute this
work and you can even modify it, as long as you do not use it for commercial gain, you share
all modifications and you credit Quirk eMarketing (Pty) Ltd. For more information, you can
visit www.creativecommons.org or www.quirk.biz/emarketingtextbook.

ISBN: 978-0-620-43063-0
eMarketing: The Essential Guide to Online Marketing
Book design and typesetting by Solveig Bosch. Cover illustration inspired by Craig Raw and Second Edition
design and illustration by Peter Lehto.
by Rob Stokes
We’ve used the font DIN in this book and it is printed in South Africa on recycled paper by
Shumani Printers (www.shumaniprinters.com).
compiled by Sarah Blake
Trademarks
All terms or names used in this book that are known to be trademarks or service marks have
been appropriately capitalised. Quirk eMarketing (Pty) Ltd cannot attest to the accuracy of
this information. Use of a term in this book should not be regarded as affecting the validity of
any trademark or service mark.

We have also made every effort to obtain permission for and to acknowledge copyright
material. Should any infringement of copyright have occurred, please contact us and every
effort will be made to rectify omissions or errors in the event of a reprint or new edition. You
can contact us on [email protected].

Warning and Disclaimer

Every effort has been made to make this book as complete and accurate as possible, but
no warranties regarding its contents, whether fact, speculation or opinion, are made nor
is fitness for any use implied. The information provided is on an “as is” basis. The author,
compiler and Quirk eMarketing (Pty) Ltd shall have neither liability nor responsibility to any
person or entity with respect to any loss or damages arising from the information contained
in this book. Full details of Quirk eMarketing (Pty) Ltd may be obtained via its web site
(www.quirk.biz) or may be requested directly at [email protected].

iv
 preface When writing the preface to the first edition of eMarketing, I mused on some of Quirk’s practices. Quirk has always been an agency fanatical about Open Source technology,
milestones. In fact, when I started Quirk almost 10 years ago, it was yet another one of and this seemed a perfect fit. It’s almost a culmination of everything we stand for as
my crazy entrepreneurial adventures. I had little idea back then of what Quirk would a company.
grow into today.
the second edition
There are key moments that stand out for me as having shaped Quirk. I count the When we published the first edition midway through 2008, we thought we had printed
joining of Craig Raw and Janine Carpenter and the experiences learned in building enough books to last us a year, at which point we would publish an updated version
our first email application in the early days of Quirk as two of them. But there is one with new content. Well, less than 6 months later I’m amazed that the entire first edition
incident that started a journey for me personally; in 2001 a fantastic man named Colin has been sold. Not only that, over 50 000 people have downloaded the book from our
Palmer invited me to give a talk on email marketing at a Direct Marketing Association web site and it’s already in use in many universities around the world.
breakfast. It was my first real public speaking experience and I was scared witless, but
I had a lot of fun. So, in time for the 2009 academic year, we are publishing the second edition. It
contains four new chapters: eMarketing strategy, online market research, customer
But it was Colin’s next invitation when the education bug really bit me. He invited me relationship management and mobile marketing. It also contains six new case studies
to lecture to his third year Business Science Marketing students at the University of as well as general updates across all the existing chapters.
Cape Town. I had been in that very class only two years before, so I began the lecture
with a mix of nerves and excitement. Two things happened at the end of the lecture Because things evolve so fast in this crazy world of eMarketing, it is our goal from here
that changed me. The first was the questions from the students. Some were easy, but to update the book digitally every six months and print a new version once a year. This
some really challenged me and I found myself having to think in ways I didn’t expect. is the beginning of that process that needs to involve you just as much as it involves us.
The second was a student who came up to me and thanked me for the lecture, and told We have already had many students and educators sign up on our site and contribute
me she had learned something valuable. That is still one of the greatest experiences to the growth of the book, and if you haven’t done so already I would encourage you to
I have ever had. do the same. With its Creative Commons license, this book is a community resource
and we need your help as our community to ensure that it’s as useful, accurate and
Sadly, Colin passed away a few years later, but I learned a huge amount from him in relevant as it can be.
the time that I knew him and for that I am very grateful. He showed me how rewarding
it is to give someone knowledge; it was enlightening. Thank you, Colin. So once again here we are with a book that I’m terribly proud of. As I said with the first
edition, it’s been much harder than we thought to put it together with many late nights
From that day on I was hooked. I am passionate about online marketing and I wanted and missed deadlines, but every minute has been worth it. In particular, I should point
to tell the world and have them share my passion. This has led me to all manner of out the tireless work of the lovely Sarah Blake. Without her, this book could not have
teaching experiences, from awesome post graduate marketing schools like Red and come together like it has. Not only did she write a huge amount of it, but she has been
Yellow in Cape Town, to conferences on the other side of the planet. instrumental in ensuring that we can make this contribution to education with the
confidence that we are doing something of the highest quality.
Over the years, Quirk has continued to grow as a busy agency, meaning my time has
become more and more scarce. I’ve had to embrace fewer of the speaking and teaching From the bottom of my heart I want to thank my team and everyone who has helped to
opportunities that I would have liked. Thankfully I seem to have infected many of the make this idea a reality. I’ve been involved with many exciting clients and projects over
QuirkStars to carry the torch without me and Quirk has become a company where we the lifetime of Quirk, but I can honestly say this is the project I am most proud of. This
are all passionate about sharing our knowledge. book is a distillation of all of Quirk’s knowledge and to be able to offer it to all without
boundaries and limitations is a privilege. I can only hope that others follow across all
Since Quirk’s inception, we have been steadily building a huge amount of informative spheres of education and understanding. I believe education is the one thing that can
content around the various elements of online marketing. This turned into our change the world and in particular my South Africa. It’s up to those with knowledge to
eMarketing 101 series, almost a mini version of this book. When I read about the do what they can to put it in the hands of others.
Open Education Declaration in September 2007, I knew exactly what Quirk should
do. We needed to take all our knowledge, experience and educational content and Please enjoy our book and share it with others…
create a textbook that we could share with the world by licensing it under Creative
Commons. The Open Education Declaration was signed in Cape Town and it aims to Rob Stokes
accelerate efforts to promote open educational resources, technology and teaching

vi vii
 About the Open Education Declaration and the Creative Commons
The Cape Town Open Education Declaration is the product of a meeting
in Cape Town of a coalition of educators, foundations, and Internet
pioneers in September 2007. The meeting was organised by the Open
Society Institute and the Shuttleworth Foundation. Linux entrepreneur
Mark Shuttleworth said, “Open sourcing education doesn’t just make
learning more accessible, it makes it more collaborative, flexible and
locally relevant.” The Declaration’s principles of openness in education
and the sharing of knowledge resonate strongly with us.

To show our commitment to the Open Education Declaration,

all of the contents of this textbook are freely available, as are
supporting materials for lecturers and for students. We know how
quickly things change when it comes to the Internet, so we are
committed to regular updates of this resource. A free download of
the textbook and further materials and resources are available at
www.quirk.biz/emarketingtextbook.

For more information on the Open Education Declaration, and to add

your name to the list of individuals committed to this cause, you can go
to www.capetowndeclaration.org.

Creative Commons recognises that content can be freely shared and

distributed without negating the rights of the author of the work. It’s
an exciting charitable organisation that is helping creators around
the world to share their work while still being recognised for their
authorship. We have chosen a Creative Commons licence for this work
that means that the contents may be freely shared as well as modified
and shared as long the source material is acknowledged and it is not
used for commercial gain.

For more information on the Creative Commons, please visit

www.creativecommons.org.

viii ix
 1. introduction to eMarketing.................. 1 5. search engine marketing..................... 65 the bigger picture........................ 145 key terms and concepts............... 201
references.................................... 6 key terms and concepts............... 68 case study.................................... 146 pros and cons............................... 216
further reading............................ 6 the importance of search............ 68 references.................................... 147 summary...................................... 216
references.................................... 72 further reading............................ 148 the bigger picture........................ 217
2. email marketing.................................. 7 case study.................................... 218
introduction.................................. 8 6. search engine optimisation................. 73 9. viral marketing.................................... 149 references.................................... 220
history.......................................... 8 introduction.................................. 74 introduction.................................. 150 further reading............................ 220
key terms and concepts............... 9 history.......................................... 74 history.......................................... 150
how it works................................. 10 key terms and concepts............... 75 key terms and concepts............... 151 13. online copywriting............................. 221
tools of the trade......................... 19 how it works................................. 76 how it works................................. 151 introduction.................................. 222
pros and cons............................... 19 tools of the trade......................... 87 summary...................................... 158 key terms and concepts............... 222
summary...................................... 20 pros and cons............................... 89 the bigger picture........................ 159 how it works................................. 223
case study.................................... 20 the bigger picture........................ 90 case study.................................... 160 neologisms and buzz words........ 232
references.................................... 22 case study.................................... 90 references.................................... 161 summary...................................... 232
further reading............................ 23 references.................................... 93 further reading............................ 162 chapter questions........................ 234
further reading............................ 94 references.................................... 234
3. online advertising................................ 25 10. online reputation management......... 163 further reading............................ 234
contents

introduction.................................. 26 7. PPC advertising................................... 95 introduction.................................. 164

history.......................................... 26 introduction.................................. 96 key terms and concepts............... 166 14. web analytics and conversion
key terms and concepts............... 27 key terms and concepts............... 97 dell hell........................................ 166 optimisation............................................ 235
how it works................................. 28 history.......................................... 98 how it works................................. 168 introduction.................................. 236
putting it all together................... 35 how it works................................. 98 10 rules to recover....................... 175 history.......................................... 236
emerging technologies................ 36 online comparison engines......... 109 summary...................................... 176 key terms and concepts............... 237
the good and the bad................... 37 tools of the trade......................... 111 case study.................................... 177 how it works................................. 237
summary...................................... 39 pros and cons............................... 112 references.................................... 179 tools of the trade......................... 249
the bigger picture........................ 40 summary...................................... 113 further reading............................ 179 pros and cons............................... 250
case study.................................... 41 the bigger picture........................ 114 summary...................................... 250
references.................................... 42 case study.................................... 115 11. webPR................................................ 181 the bigger picture........................ 251
further reading............................ 43 references.................................... 117 introduction.................................. 182 case study.................................... 251
further reading............................ 117 history.......................................... 182 references.................................... 253
4. affiliate marketing............................... 45 key terms and concepts............... 183 further reading............................ 254
introduction.................................. 46 Google AdWords Voucher........................ 119 how it works................................. 184
history.......................................... 46 top 10 optimisation tips for advertising webPR tactics.............................. 185 15.mobile marketing............................... 255
key terms and concepts............... 47 on google..................................... 120 tools of the trade......................... 193 introduction.................................. 256
how it works................................. 48 webPR.......................................... 193 why the mobile............................. 256
tools of the trade......................... 57 8. social media........................................ 123 summary...................................... 194 key terms and concepts............... 257
setting up a campaign................. 58 introduction.................................. 124 the bigger picture........................ 194 mobile phones............................. 260
pros and cons............................... 60 history.......................................... 124 case study.................................... 195 mobile web................................... 267
summary...................................... 60 key terms and concepts............... 125 references.................................... 197 planning to go mobile.................. 273
the bigger picture........................ 61 how it works................................. 126 further reading............................ 198 pros and cons............................... 273
case study.................................... 62 tools of the trade......................... 144 case study.................................... 274
references.................................... 64 pros and cons............................... 144 12. web site development and design..... 199 references.................................... 275
further reading............................ 64 summary...................................... 145 introduction.................................. 200 further reading............................ 276
how it works................................. 200

 xi
 16. customer relationship management 277 online tools.................................. 327
introduction.................................. 278 case study.................................... 328
why eCRM.................................... 278 references.................................... 330
key terms and concepts............... 279 further reading............................ 330
types of CRM in organisations..... 281
putting a value on CRM................ 282 19. last words.......................................... 331
using CRM.................................... 285
technology and CRM.................... 287 20. glossary............................................. 335
VRM.............................................. 290

1. introduction to eMarketing
case study.................................... 291 21. index.................................................. 355

references.................................... 292
22. contributors....................................... 361
further reading............................ 293

17. market research................................ 295

introduction.................................. 296
key terms and concepts............... 297
what is market research.............. 297
quantitative and qualitative
research....................................... 298
gathering data.............................. 299
online research panels................ 300
primary and secondary research 300
the internet and secondary
research....................................... 301
the internet and primary
research....................................... 302
online surveys: gathering data.... 304
how to get responses................... 306
conducting research surveys....... 308
who’s going to pay........................ 310
summary...................................... 310
tools of the trade......................... 311
case study.................................... 311
references.................................... 312
further reading............................ 313

18. eMarketing strategy.......................... 315

introduction.................................. 316
how the internet has changed the world we
market in...................................... 316
key terms and concepts............... 317
the internet and the marketing
mix............................................... 318
developing a marketing plan....... 322
eMarketing and marketing.......... 326

xii 
 introduction to emarketing › introduction introduction to emarketing › a brief timeline of Internet developments

introduction 1990 Senator Al Gore coins the term ‘information superhighway’.

1991 Web Father, Tim Berners-Lee releases World Wide Web (www) with scientists from CERN.
There is no doubt about it – the Internet has changed the world we live in. Never before
1992 America Online (AOL) is launched and raises $23m in floatation.
has it been so easy to access information, communicate with people all over the globe
The term ‘surfing the net’ is introduced by Jean Armour Polly.
and share articles, videos, photos and all manner of media.
The World Bank goes online.
1993 Mainstream media attention increases awareness of the Internet.
The Internet has led to an increasingly connected environment, and the growth of
Internet usage has resulted in declining distribution of traditional media: television, First Internet publication. Wired, goes on sale.

radio, newspapers and magazines. Marketing in this connected environment and using Mosaic introduces the first web browser with graphical interface and is the forerunner of
Netscape Navigator.
that connectivity to market is eMarketing.
First online shopping malls and virtual banks emerge as does evidence of spam.

eMarketing embraces a wide range of strategies, but what underpins successful First clickable banner advert is sold by Global Network Navigator to a law firm.

eMarketing is a user-centric and cohesive approach to these strategies. 1995 Amazon is launched by Jeff Bezos.
Trial dial up systems such as AOL and CompuServe launch.
While the Internet and the World Wide Web have enabled what we call New Media, Charging is introduced for domain names.
the theories that lead to the development of the Internet were being developed from Search technology companies such as Alta Vista, Infoseek, Excite and Metacrawler rapidly appear.
the 1950s. 1996 Yahoo! is launched on the stock exchange and shares are up nearly 300% on first day.
1997 MP3.com is founded.
The term “search engine optimisation” is used for the first time in a forum.
a brief timeline of Internet developments 1998 XML is released to enable compatibility between different computer systems.
Google founded by Larry Page and Sergey Brin.
1958 US ARPA (advanced research projects agency) established to lead science and military
1999 Peter Merholz coins the word “blog”.
technological developments.
2000 AOL and Time-Warner announce they are merging.
1961 MIT research paper of Packet Switching Theory.
Pay-per-Click campaigns are introduced for top ten search rankings.
1961-69 Ongoing research into inter-computer communications and networks.
Google AdWords launches, charging for adverts on a CPM basis.
1969 ARPANET, commissioned by US Defense Department, goes live.
2002 UK online monthly consumer shopping breaks through the £1 billion barrier.
US universities connect up network facilities for the first time.
Google AdWords charges on a PPC basis instead of CPM.
1971 Ray Tomlinson creates first network email application.
2003 eBay topples Amazon as the most visited UK web site.
1973 Development of protocols to enable multi-network Internet opportunities.
2004 CD-WOW loses court case and rights to source cheaper CDs outside EU, undermining the
First international ARPANET connections made.
global concept of the Internet.
1976 HM Queen Elizabeth II sends an email.
2005 Iceland leads the world with broadband penetration: 26.7 inhabitants per 100 have broadband
1978 First spam email is recorded. compared with 15.9 per 100 in the UK.
1980 Tim Berners-Lee develops rules for the World Wide Web and is credited as the Web Father. 2006 Google buys YouTube for $1.6 billion.
Alan Emtage develops the first search tool known as ‘ARCHIE’. Facebook membership opens to anyone.
1982 Standard network protocols are established: Transmission Control Protocol (TCP) and Internet Technorati notes that a blog is created every second of every day.
Protocol (IP), commonly referred to as TCIP/IP.
Time Magazine names “You” as person of the year, due to online activity.
1984 Joint Academic Network (JANET) is established, linking higher education institutions.
2008 Firefox 3.0 launches with over 8 million downloads in 24 hours.
Domain Name System (DNS) is introduced.
Internet usage tops 1,407,724,920 worldwide.
1985 A company named Symbolics becomes the first registered dot.com domain. source: Gay (2007)
1987 National Science Foundation (US) is the catalyst for the surge in funded work into the Internet.
Number of Internet hosts increases significantly in this period. While the Internet was developed in order for academic and military institutions to share data, it has become a
1988-90 28 countries sign up to hook up to the NSFNET, reinforcing international Internet potential. sharing tool for anyone with an Internet connection the world over.

 
 introduction to emarketing › it’s all about being connected introduction to emarketing › what does this all have to do with marketing?

it’s all about being connected how do people access the Internet?
In its simplest form, the Internet is a collection of connected documents or objects. People connect to the Internet and access content in many different ways. When it
Hyperlinks are what connect these documents. comes to the physical connection to the Internet, the market presents a number
of options:
note A hyperlink is a virtual link from one document on the World Wide Web to another. It

The Internet is a world includes the URL of the linked-to document which describes where on the Internet a • Dial-up
wide network which document is. It is what you enter in the address bar of the browser, because it is the • 3G
allows for information to address of that document on the Internet. • WiFi and WiMax
be shared between users • Broadband
(also known as nodes).
A URL provides information to both browsers and people. URLs include domain names • ADSL
The World Wide Web is
which translate to IP addresses. Every web site corresponds to an IP address, which is
a sub-set of this which
caters specifically for a structured series of dots and numbers indicating where it is physically located. When And that list goes on. The devices people use vary from mobile phones and handheld
web sites. you enter a URL into the address bar of a browser, the Domain Name System record small devices to personal notebooks and desktop computers. The environment that
indicates where the document is that you are linking to. Many domains can translate people are in when they access the Internet also differs:
to the same IP address.
• At home
Confused? Look at the domain name and IP address for Quirk’s web site: • At the office or place of work
Domain name: www.quirk.biz • Libraries and education centres
IP address: 212.100.243.204 • Internet cafes and coffee shops

A domain name looks something like this: Not only do these environmental factors affect how people use the Internet, but their
www.domainname.com reasons for using the Internet also have an effect on how they interact online.

But a lot more information can be included in this. Domain names can carry the For some people, it is primarily a communications channel, and their online activity
following information: is focused on their email inbox, while for others it may be a research channel, with
subdomain.domain.tld/directory search engines playing a large role in their online experience.

• Domain - the registered domain name of the web site Having such a diverse audience means that there are many channels available to
• Subdomain - a domain that is part of a larger domain marketers when it comes to eMarketing.
• tld – the top level domain, uppermost in the hierarchy of domain names
• Directory – a folder to organise content

The tld can indicate the country in which a domain is registered, and can also give what does this all have to do with
information about the nature of the domain. marketing?
• .com – is the most common tld
• .co.za, .co.uk, .com.au – these tlds give country information Marketing is about conversations, and the Internet has become a hub of conversations.
• .org – used by non-profit organisations The connected nature of the Internet allows us to follow and track these conversations,
• .gov – used by governments and provides entry points for all parties. What follows in this book are ways of conversing
• .ac – used by academic institutions with potential and existing customers using the Internet.

Domain names must be registered and there is a fee for doing so.

 
 introduction to emarketing › further reading

references

Crocker, D. Email History,

http://www.livinginternet.com/e/ei.htm,
livinginternet.com, [accessed 18 March 2008]

Gay, R. et al (2007) Online Marketing – a customer-led approach,

Oxford University Press, Oxford, England, pp 8-9

Merholz, P. (17 May 2002) Play With Your Words,

www.peterme.com/archives/00000205.html,
peterme.com, [accessed 27 May 2008]

2. email marketing
MiniWatts Marketing Group, World Internet Usage and Population Statistics,
www.internetworldstats.com/stats.htm,
MiniWatts Marketing Group [accessed 22 June 2008]

Rachel Rosmarin,R (11 September 2006) Open Facebook,

www.forbes.com/2006/09/11/facebook-opens-up-cx_rr_0911facebook.html,
Forbes.com [accessed 22 June 2008]

Sifry, D. (April 17, 2006) State of the Blogosphere, April 2006 Part 1: On Blogosphere Growth,
www.sifry.com/alerts/archives/000432.html,
Sifry’s Alerts, [accessed 27 May 2008]

Stewart, W (1996-2007) Living Internet,

www.livinginternet.com,
livinginternet.com, [accessed 21 June 2008]

Sullivan, D. (14 June 2004) Who Invented the Term “Search Engine Optimization”?,
http://forums.searchenginewatch.com/showpost.php?p=2119&postcount=10,
Search Engine Watch [accessed 6 June 2008]

further reading
What’s inside: An introduction to email marketing, and a brief history
Tim Berners-Lee’s Answers for Young People is a brief outline of how he invented the World Wide Web:
of email, which predates the World Wide Web. Get started with key terms and
www.w3.org/People/Berners-Lee/Kids.
His book Weaving the Web: The Original Design and Ultimate Destiny of the World Wide Web covers this in far concepts and then learn how it works with the difference between promotions
more depth. and newsletters. Learn the 9 steps to executing an email campaign, as well

as the parts of an email. Get started with some basic tools of the trade, the pros
sethgodin.typepad.com
– the blog from Seth Godin, best-selling author, entrepreneur and agent of change. and cons of email marketing, and a chapter summary and a look at how it all
fits together.

 
 email marketing › introduction email marketing › key terms and concepts

introduction key terms and concepts

At its core, email marketing is a tool for customer relationship management (CRM).
Used effectively, this extension of permission based marketing can deliver one of the B2B Stands for Business to Business. When businesses sell products/services to other businesses
highest returns on investment (ROI) of any eMarketing activity. and not to consumers.
B2C Stands for Business to consumers. When businesses sell products/services to consumers.
Simply put, email marketing is a form of direct marketing which utilises electronic Call to action A CTA is a phrase written to motivate the reader to take action. (sign up for our
means to deliver commercial messages to an audience. It is one of the oldest and yet newsletter, book car hire today etc.).
still one of the most powerful of all eMarketing tactics. The power comes from the fact CAN-SPAM The U.S. law that regulates commercial email. It stands for “Controlling the Assault of
that it is: Non-Solicited Pornography and Marketing Act of 2003.”
• Extremely cost effective due to a low cost per contact CRM Customer Relationship Management.
• Highly targeted
Database In email marketing, the database is the list of prospects to whom emails are sent. It also
• Customisable on a mass scale contains additional information pertinent to the prospects.
• Completely measurable
DNS (Domain Name System) DNS converts a domain name into an IP address.
Furthermore, email marketing’s main strength is that it takes advantage of a customer’s DomainKeys An email authentication system designed to verify the DNS domain of an email sender
and the message integrity.
most prolific touch point with the Internet… their inbox.
Double opt-in The act of getting subscribers to confirm their initial subscription via a follow up email
asking them to validate their address and hence opt-in again.
Email marketing is a tool for building relationships with both existing and potential
customers. It should maximise the retention and value of these customers, which Hard bounce The failed delivery of email communication due to an undeviating reason like a non-
existent address.
should ultimately lead to greater profitability.
House list An email database that a company generates itself without purchasing or renting names.

history HTML HyperText Markup Language. HTML emails usually contain graphics and can be interactive.
IP Address The Internet Protocol (IP) address is a exclusive number, which is used to represent every
Email is probably ubiquitous to you, but there was a time when there was no email! single computer in a network.
ISP Internet Service Provider – this is the company that is providing you with access to the Internet e.g.
Email actually predates the Internet, and was first used as a way for users of the same MWEB, AOL, Yahoo! etc).
computer to leave messages for each other all the way back in 1961. Ray Tomlinson Open rate The percent of emails determined as opened out of the total number of emails sent.
is credited with creating the first network email application in 1971. He initiated the
Opt-in Give permission for emails to be sent to you.
use of the @ sign and the address structure that we use today (username@hostname)
(Crocker). Email was used to send messages to computers on the same network, and Opt-out Also known as unsubscribe - The act of removing oneself from a list or lists so that specified
information is no longer received via email.
is still used for this purpose today.
Sender ID A method used by major ISPs to confirm that emails do originate from the domain from
which it claims to have been sent.
It was only in 1993 that large network service providers, such as America Online and
Delphi, started to connect their proprietary email systems to the Internet. This began SMTP Simple Mail Transfer Protocol is a protocol for sending messages from one server to another.
the large scale adoption of Internet email as a global standard. Coupled with standards Soft bounce The failed delivery of an email due to a deviating reason like an overloaded mail box or a
that had been created in the preceding twenty years, the Internet allowed users on server failure.
different networks to send each other messages. Spam Email sent to someone who has not requested to receive it - EVIL!
SPF Sender policy framework is an extension of SMTP that stops email spammers from forging the
The first email spam dates back to 1978. Spam is defined as unsolicited commercial or “From” fields in an email.
bulk email, and today is said to account for 80 to 85% of all email (Waters, 2008)!
Text Text emails or plain text emails do not contain graphics or any kind of markup.
Unique forwarders This refers to the number of individuals who forwarded a specific email on.
Direct marketing has long played an integral part in marketing campaigns, but the
high cost meant that only large companies were able to pursue this. However, with the White list A list of accepted email addresses that an ISP, a subscriber or other email service provider
allows to deliver messages regardless of spam filter settings.
growth of the Internet, and the use of email to market directly to consumers, marketers
have found these costs dropping, and the effectiveness increasing.

 
 email marketing › how it works email marketing › how it works › 9 steps to executing an email campaign

how it works
If you consider marketing as communicating with current and potential customers,
you will see that every email that is sent from your organisation should be considered
as part of your email marketing plan.

Does that sound a little complicated? Consider an online retailer, www.zappos.com.

Zappos is an online shoe retailer. What are the ways that, as a customer, you might
receive emails from Zappos?

1. Transaction emails: when you place an order, there will be a number of emails
that you receive, from confirmation of your order, to notice of shipping. Should
you need to return an item, you will no doubt communicate with Zappos via
email.
2. Newsletters: these are emails which are sent to provide information and keep
customers informed. They do not necessarily carry an overt promotion, but
instead ensure that a customer is in regular contact with the brand.
3. Promotion emails: should Zappos have a summer sale, they will send an email
relating directly to that promotion.

There are other emails sent by Zappos, for example:

1. Emails to suppliers
2. Communication with affiliates

All of the communication sent out can be used to convey your marketing message. 9 steps to executing an email campaign
Every touchpoint will market the organisation. However, here we will focus on
commercial emails.

There are two types of commercial emails:

9 steps to executing an email campaign
Promotional emails: these are more direct and are geared at enticing the user to take
an immediate action. 1. strategic planning
Retention based emails: also referred to as newsletters, these may include The first part of any email campaign should involve planning around the goals you will
promotional messages but should be focussed on providing information of value to the need to achieve. These will probably be in line with the goals of your web site, with
user, geared at building a long term relationship with the user. email marketing being used as a tool to help you achieve those goals.

As with all eMarketing activities, careful planning is called for, as is careful testing As discussed in the chapter on analytics and conversion optimisation, you will decide
and evaluating, so as to optimise your revenue. Email marketing may be highly cost on the key performance indicators (KPIs) for your campaign as well.
effective, but the cost of getting it wrong can be very high indeed.
Promotional emails will usually have an immediate goal:
• Users make a purchase
• Users download a whitepaper
• Users request further information

10 11
 email marketing › how it works › 9 steps to executing an email campaign email marketing › how it works › 9 steps to executing an email campaign

Newsletters tend to focus on longer term goals, and so your KPIs become more There are a myriad of ways to attract prospects to opt in to a database. Key is an email
important here. sign-up form on a company web site. Visitors to a web site have already expressed an
interest in a company by clicking through to the web site – this is an opportunity to
note KPIs include: develop that interest further.

ROI can be a goal of the • Open rate

campaign, and it can be • Click-through rate Sign-up forms best practice:
note
used as a KPI. • Number of emails forwarded • Put the sign-up form where it can be seen – above the fold and on every page.
Opt-in and double
• ROI • State your anti-spam stance explicitly, and be clear about how you value
opt-in: the integrity of
subscribers’ privacy. the database can be
A successful email campaign is most likely to be the one geared at retaining and • Use a clear call to action. safeguarded with a double
creating a long term relationship with the reader. • Tell subscribers what they will get, and how often they will get it. Include a opt in process. An email is
benefit statement. sent to the email address
supplied, and the user has
Know your audience! They will dictate the interactions. • Ensure the email address is correct by checking the syntax.
to click on a link within
• Test to see what works best! that email to confirm their
2. define list subscription. This means
Running a successful email campaign requires that a business has a genuine opt-in Every interaction can be used to ask permission to send emails. that dud email addresses
database. This database, the list of subscribers who have agreed to allow a company 1. Offer something valuable for free, and ask if they would sign up to your are kept out of the
database, and confirms
to send them emails with marketing messages, is the most valuable asset of an email newsletter at the same time (e.g. white paper, gift voucher, music track).
that the user has granted
campaign. 2. Add a subscribe box to the checkout process of your retail site.
explicit permission.
3. Use interactions at trade shows to ask for email addresses.
Permission must be explicitly given by all people to whom emails are sent. Companies
that abuse this can put their reputation in jeopardy, and in some countries, legal action 3. creative execution
can be taken against companies that send unsolicited bulk email – spam. Emails can be created and viewed as HTML or as text emails. Bear in mind, though,
that sometimes HTML emails are rendered as text emails.
Growing this database, while keeping it targeted, is a key factor in any email campaign.
Text emails are the plain ones – text only, as the name suggests. If you have a
The database needs only have one entry – the prospect’s email – but the following Windows computer, and you open up notepad and type there, you will be creating a
should also be considered: text file. These emails are smaller, and plainer. As these are text only, the copy really
• First name, surname and title counts here.
• Date permission granted
• Source of permission HTML emails are the emails with all the bells and whistles. These emails can contain
• Gender images, different fonts and hyperlinks. It’s probably what you’ve had in mind throughout
• Country this chapter when we have referred to email marketing.
• Telephone number
• Date of birth parts of an email
header
Fields such as name, surname and title should be separated in your database. You This has the “to”, “from” and “reply to” fields. These are also opportunities to
should also gather date of birth as opposed to a prospect’s age – it ensures your build a relationship through creating a perception of familiarity. In other words,
note database can stay up to date! the reader needs to perceive that the newsletter is somewhat unique for them and
Pepper and Rogers refer sent personally by the publisher. Using a personalised company email address (e.g.
to gathering information However, don’t be tempted to ask for more information than is required. The more [email protected]) for the “reply” field creates familiarity and builds trust
over a period of time as
information a marketer can gather, the better she can customise her marketing with the reader. The “from” address should also include the organisation’s name. A
“drip irrigation”, since it
messages. However, the more information a prospect is required to give, the less likely meaningless “from” address which the reader cannot identify only serves to confuse
never overwhelms nor
parches the prospect. he is to sign up. Further information can be requested over a period of time. the origin of the newsletter.

12 13
 email marketing › how it works › 9 steps to executing an email campaign email marketing › how it works › 9 steps to executing an email campaign

subject line
The subject line could be the most important part of an email! Subject lines aid the
reader in identifying the email, and also entice the reader to open it. The subject line is
also scrutinised by spam filters, and so should avoid words like “free”, “win” and “buy
now”. Consistent subject lines, using the name of the company and the newsletter
edition, can build familiarity and help readers to sort their inbox. As with everything
online, testing different subject lines will lead marketers to the formula that works
for them.

personalised greeting
With a database that has entries for readers’ names, it is possible to personalise the
greeting of the email. “Hi Kim Morgan” can elicit far better responses than “Dear
Valued Customer”, but it is possible to create a greeting with personality without
personalising it. Occasionally, the subject line can be personalised as well to boost
responses.

body
This is where the content of the email goes. Don’t be tempted to use too many images:
it can increase the size of the email, and it can obscure text when images do not
load. Be sure that text is not on the image, but rather can be read without an image
being loaded.

footer
A standard footer for emails helps to build consistency, and is the customary place
to keep the contact details of the company sending the email. At the very least,
this should include the name and contact email of the company. It can also include
the privacy policy of the sender. One way to grow the email list is add a “forward
to a friend” link in the footer. The most important part of the footer is a clear
unsubscribe link.

unsubscribe link
It is mandatory to have an unsubscribe link on all commercial emails.

Interactive emails are best constructed with lightweight HTML capability allowing the
email to open quickly. This helps to capture the user’s attention before he/she moves
on. The structure must allow readers to scan and navigate the email easily. The length
of paragraphs, emphasis through bolding and colours as well as sectioning information
with bullets and borders all contribute to a well-structured email.

create content
Email content that is relevant and something that readers will value, is vital to ensuring
the success of an email marketing campaign. Valuable content is informative and
should address the problems and needs of readers. It is important to realise that the
HTML email with mentioned elements shown
reader determines the value of the content, not the publisher.

14 15
 email marketing › how it works › 9 steps to executing an email campaign email marketing › how it works › 9 steps to executing an email campaign

Successful email campaigns provide value to their readers. This value can vary from 6. deployment
campaign to campaign. Newsletters can offer: By creating valuable content, establishing the correct frequency, and testing an email
• Humour for display and deliverability, an email marketer should be able to ensure an excellent
• Research delivery rate. Consistency in deploying newsletters also aids in fostering trust and
• Information fulfilling expectation. Emails should be delivered at consistent times, but the best time
• Promotions for best results should be tested.

However, avoid being marked as spam by staying away from words like “free”, “buy
Email reputation, which can determine whether or not your message is regarded
now” and “discount”.
as spam, is the general opinion of the ISPs, the anti-spam community, and then
subscribers towards a sender’s IP address, sending domain, or both. This opinion is a
test for display and deliverability reputation score created by an ISP or a third party provider. If the sender’s score falls
note The email should be scored to see that it will pass spam filters, and the design should within the ISP’s thresholds, a sender’s messages will be delivered to the inbox. If not,
An email client is the be tested to ensure that it renders clearly in as many clients as possible. Make sure the sender’s emails may arrive in the bulk folder, be quarantined, or be bounced back
software or programme that images line up, that copy is clear and that all the links work. to the sender.
that a person uses to
access their email. Some Emails can be tested for platform compatibility at www.sitevista.com/email.asp. Becoming an effective email marketer requires constant list cleansing and hygiene. In
of these are web-based,
like GoogleMail and fact, most lists shrink by 30% each year due to subscribers changing email addresses.
Hotmail, and there are An email’s spam score can be checked at spamassassin.apache.org. Make sure you are diligent about maintaining a current opt-in list to achieve maximum
also plenty of software deliverability via reputation.
clients. As well as many 4. integrate campaign with other channels
versions of Outlook, there Whilst email marketing can operate as a stand alone marketing campaign, integrating Tips to help reputation score:
is also Thunderbird,
it with other channels, both online and offline, will serve to both reinforce a brand’s • ISPs offer various sender’s authentication standards such as Sender ID, SPF,
Eudora, Lotus to mention
message and increase responses. and DomainKeys. Use these.
just a few. And yes, your
email could look different • Out with the old, in with the new – keep your database clean.
on each one of those. There should never be a disparity between the content, tone or design of an email when • Remove hard bounces after 3 deliveries (ISPs don’t like e-mail broadcasters
compared to the rest of a company’s offerings. In-store promotions can be reinforced who have a high bounce rate).
and promoted to an email database, or web site information can be summarised • Remember that a huge but inaccurate and outdated database is far less use to note
for email. an email marketer than a tightly-maintained, smaller database. Strive to boost An email white list is a list
of contacts that the user
your database, but don’t forget to clean behind you as you go.
Custom landing pages, as required, should be created for any promotions being deems are acceptable to
• Ensure email broadcast rates are not too high.
receive email from and
communicated in an email communication. • Respond to complaints and unsubscribe requests – if someone requests to be should not be sent to the
unsubscribed, do so. trash folder
5. personalise the message • Educate users about white lists.
The technology of email marketing allows for mass customisation – it is one to one
marketing on a macro scale. Even simple personalisation can see improved results. When to send mails:
Common sense tells you not on Monday morning or Friday afternoon, but it varies by
Customisation starts at using the recipient’s name and sending either HTML or text audience. Testing will guide you. note
emails based on preference, to sophisticated measurement of a recipient’s preferences When is email an email,
and tailoring content to suit them. If the recipient has given permission to be sent marketing messages by email, then it and when is it spam?
is not spam. Users give permission when they tick a box that says “Yes, please send Spam is unsolicited bulk
Segmenting a database can allow for customisation across demographics or purchase email – it means that
me offers from your company by email.” The email address can only be provided to
the recipient never gave
history. Being able to reconcile browsing activity to an email recipient can give further another company if the user ticks a box that says “Yes, please send me offers from permission to be sent that
opportunities for customisation. third parties selected by you by email.” email.

16 17
 email marketing › how it works › 9 steps to executing an email campaign email marketing › pros and cons

Permission must be explicitly given to the company to be allowed to market to that • Optimal number of links in an email for click through rates and conversions
user. Trying to gain explicit permission in a sneaky way will only annoy your users, and • Different copy styles and copy length
might result in your emails being marked as spam. • The effect of video on delivery rates, open rates and conversions

7. interaction handling
As well as the emails strategically planned as part of a campaign (promotional
emails and newsletters) every interaction via email should be considered as part of a tools of the trade
company’s email marketing practice. First up, an email campaign needs a database. A plan for growing this database needs
to be put in place. Most email service providers will also provide tools for managing
Automated emails such as order confirmations and even out of office replies are all this database.
opportunities to engage with customers. If a company has a particular tone or content
style, this can be reinforced in these interactions. All emails need to be tested for email client compatibility as well as for any potential
spam problems.
These emails can also be an opportunity to cross-advertise other promotions that a
company is offering. Email client compatibility can be reviewed at:
www.litmusapp.com
8. generate reports
As with all things eMarketing, tracking, analysing and optimising is key to growth. An email’s spam score can be checked at:
Email tracking systems produce statistics in a user-friendly manner. spamassassin.apache.org

Key measurables for understanding of the performance of email campaigns: Once an email has been sent, results need to be analysed to pinpoint areas for growth
• Number of emails delivered. for the next campaign.
• Number of bounces (and this should be separated into hard bounces and soft
bounces).
•
•
Number of unique emails opened: an email can be delivered, but not opened.
Unsubscribes: significant or consistent loss in subscribers is a key indication
pros and cons
that you are not meeting the needs of your subscribers Permission based email marketing can give the highest return on investment of any
• Pass on rate: high pass on rate (forwards) indicates that your list values the marketing activities. Technology allows mass customisation, allowing personalisation
content enough to constantly share with others. Putting an easy “forward to a across a large list of subscribers.
discussion
friend” link in every email can increase this. Adding a sign-up link to forwarded
Open rate does not
emails will organically grow the opt-in list. When used to foster relationships with a customer base, email marketing can go a
necessarily indicate
whether or not an email • Click-through rates and conversion: This measures the effectiveness of an long way to increasing the lifetime value of that customer.
has been read. How do email via the links placed in the content. When a reader clicks through to a
you think a marketer can web page, these can be easily measured as a percentage against number of Email marketing is highly measurable, and databases are highly segmentable.
determine if emails are
delivered, opened or sent emails. It reveals which content or promotion was
being read?
the most enticing for the reader. However, with the increasing numbers of companies and individuals using email
marketing, many consumers are email fatigued. It requires ingenuity, focus and
9. analyse results dedication to maintain an email database and consistently deliver useful quality emails
Once the reports have been generated, it is time to work out what the numbers are that will be read.
revealing, and to use this information to improve the next email sent out.
It does not take much for email to be marked as spam, and it can be difficult to recover
With email marketing, split testing across a host of factors will enable campaign from being branded as a spammer by the ISPs.
optimisation. Some factors to test include:
• Open rates across different subject lines and delivery times

18 19
 email marketing › summary email marketing › case study

summary
Email marketing is a form of direct marketing that can render the best ROI of any
eMarketing tactic. It is:
• Highly targeted and customisable
• Cost effective

Gaining explicit permission to send email marketing to a person is a prerequisite

for successful email marketing, however all emails sent by an organisation and the
individuals in that organisation can be seen as marketing opportunities.

Successful email marketing requires careful planning and testing. HTML emails need
to be tested across a range of email clients, and should be tested for a spam score,
before being deployed.

All email sent to a list of subscribers needs to provide an easy and accessible
unsubscribe link in the email.

case study: Johnnie Walker

Johnnie Walker South Africa was looking to increase a specific segment of consumers on its email database.
The proposed target group was mainly comprised of South African black male consumers, 18 – 30 years of age
with disposable income. The use of viral email campaign/ refer a friend style tactic was chosen as the necessary
medium. Although an email campaign is a well used tactic within viral marketing, agency teams and client felt
confident due to the beginner to intermediate user level of the list. Connectivity is an issue in South Africa and
most on the database would not have been heavily exposed to these types of campaigns.

The creative approach was primarily to appeal to the target market’s connectivity by finding something which
would fit into their social value system. Research of the group told us that they were highly social but also
aspired towards older, affluent males of the same culture who had made a success of their lives in the new
South Africa. This older affluent group was also regarded as Johnnie Walker Black drinkers.
No other form of marketing was used and there weren’t any links to the Johnnie Walker web site or any other
The central idea of “State a case for yourself” was proposed in order to invite the target market to assess if they web sites. No search engine marketing, banner ads or offline media were used to promote this campaign. Its
are worthy of being part of the Johnnie Walker Striding Man Society. The prize was in itself a “case” (12 bottles) success was purely driven by people forwarding the email to others.
of Johnnie Walker Black which further reinforced the concept of “State a case for yourself”. Send to a friend
technology was used so that prospects could state a case for themselves by nominating five friends worthy of The email campaign was very successful - 2630 new subscriptions were captured within the first week! Over
the Striding Man Society. Pages specific to the campaign were created for click-throughs and data capturing. 25 000 emails were sent to unique addresses in the duration of the campaign, and it saw over 200% growth in
subscribers to Johnnie Walkers’ Striding Man Society. The campaign achieved a conversion rate of about 29%
The email was sent to a list of carefully chosen members of the Johnnie Walker Black / Striding Man - 29% of prospects who received the viral email from the original list of subscribers, submitted their details,
Society database who fit the required profile. Reminder emails were configured to go out one week after the and agreed to become part of Johnnie Walkers’ Striding Man Society. Reminder emails added a 10% increase in
first email. unique click through activity against the viral email.

20 21
 email marketing › case study email marketing › further reading

case study questions further reading

www.marketingsherpa.com
1. Why was email an ideal medium to reach this target market?
– MarketingSherpa provides regular case studies, charts and how tos. Essential reading for any eMarketer.
2. Why does a brand like Johnny Walker collect email addresses?
3. How important was personalisation in this campaign? www.email-marketing-reports.com/blogs.htm
- this one-stop resource provides guidelines, regular articles and links to other excellent blogs in the email
marketing industry.
chapter questions
www.campaignmonitor.com/blog/
1. What is meant by “mass customisation” and why is this so beneficial? - this blog from Campaign Monitor, a leading email newsletter software provider, keeps abreast of industry
2. What are the key differences between direct marketing by email and direct marketing by post? trends and best practices.

3. Why is it important for permission to be gained before marketing by email to a prospect?

www.email-standards.org
4. Emails that are expected and recognised are more likely to be read. How can a marketer use this
– the Email Standards project is aimed ensuring that emails can be rendered correctly across all clients. It also
knowledge to increase the readership of emails?
regularly tests how email clients are performing on compatibility.

references

Brownlow, M. Email promotions vs newsletters,

www.email-marketing-reports.com/newsletterspromotions.htm,
email-marketing-reports.com, [accessed 18 March 2008]

Crocker, D. Email History,

http://www.livinginternet.com/e/ei.htm,
livinginternet.com, [accessed 18 March 2008]

Kollas, S. (18 February 2008) 2 email strategies most marketers forget,

http://www.imediaconnection.com/content/18346.asp,
imediaconnection.com, [accessed 18 March 2008]

Pepperrell, S. (27 March 2007) The Seven Deadly Sins of Email Marketing Management,
www.digital-web.com/articles/seven_sins_of_email_marketing,
Digital Web Magazine, [accessed 18 March 2008]

Templeton, B. Origin of the term “spam” to mean net abuse,

http://www.templetons.com/brad/spamterm.html,
templeton.com, [accessed 18 March 2008]

Waters, D. (31 March 2008) Spam blights e-mail 15 years on

http://news.bbc.co.uk/2/hi/technology/7322615.stm,
bbc.co.uk, [accessed 18 March 2008]

22 23
 3. online advertising What’s inside: We begin with an introduction to online advertising with a
brief history of banner advertising. What follows are the key terms and concepts

required, and then a breakdown of how it works. We look at how to show your

message, and of course how to pay for it. There is an overview of ad servers

and advertising networks and the move towards ad exchanges. Putting it all

together helps you to plan a campaign, and we look at emerging technologies

when it comes to advertising online. Pros and cons are outlined in the good and

the bad, followed by a summary and the bigger picture.

24
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