Posted by: Mike Clough | August 16th, 2009

Web 2.0 Online Marketing Series – Overview

Online_Marketing(sm)Most business processes and competencies have not changed much in hundreds of years. Take accounting for example. Other than the introduction of computers and software, which was huge, and various changes in regulations, accounting is performed just as it was 500 years ago. And, for the most part, the same was true for marketing. That is until the invention and acceptance of the Internet. Since then, marketing has been turned on its ear. If you are a small business that is still marketing they same way you did 10-15 years ago, chances are you are wasting a lot of marketing dollars and your results are far less than they could and should be.

As a small business counselor/advocate, lately, I am bombarded with questions about “social media and networking”. It is certainly a buzz phrase these days, but, not many in the small business community seem to know a lot about it. Furthermore, they fail to realize that in most cases, social media and networking is not a stand alone strategy/technique but rather an extension or enhancement of other types of online marketing. Nonetheless, it should be an integral component as it is hot, inexpensive and effective when used correctly and in conjunction with a total online marketing strategy/technique. So let’s start with by watching a video that explains the “social media” part of Web 2.0 Marketing.

As a result of intense interest by my clients and others, I have decided to take on the dangerous task of explaining the total Web 2.0 Online marketing strategy (including social media/networking) through a series of posts (of which this is the first) as it is far too comprehensive and detailed to address in a singe article. I describe this task as dangerous because I know it will stimulate a lot of comments due to definitions (it means different things to different people), what is included and what is not, and my approach to certain issues. To minimize these risks, I have invited others to assist me and contribute in areas where they are more knowledgeable and skilled than am I in order to bring you the best education possible.

This article is simply an overview of the various aspects of Web 2.0 online marketing. Each of the ensuing articles in the series will drill down on a single aspect.

Marketing-Target300Overview
One reason you have not seen articles on this subject from me sooner is that I have been trying to figure out the best way to explain it. Recently, I saw a great graphic created in 2008 by Anita Campbell of Small Business Trends that illustrated the ROI impact of various aspects of Web 2.0 online marketing. However, it left out a couple of things I wanted to cover and many things have changed since 2008. So inspired by Campbell’s concept, I recreated her graphic representing how the most significant ROI impact begins with an effective website and radiates outward.

Now, I realize that it looks rather intimidating. It really isn’t, once you understand what each activity is and how it works. So, I will give you a short overview of each below and will go into depth on each of these strategies/techniques in subsequent articles in the series over the next few weeks.

Bulls-Eye
In the graphic, your website is the “bulls-eye” or center of your Web 2.0 online marketing strategy. Think of it as your virtual store/office. This is where business is conducted and, as such, provides the highest return on investment (ROI).  Everything else represented on the graphic is available to increase the amount of business you do at your website. Expect an article on websites within the next week or so as it is the next up in the series.

Second Ring
Located in this ring are initiatives such as autoresponders, blogs, pay-per-click advertising, email marketing, online press releases, and search engine optimization (SEO). Once your website is in place, the marketing activities/techniques in this second ring should be your next priority consideration because they are critical to increasing the activity at your website and will net you the next highest ROI.

Third Ring
The strategies/techniques in the third ring are not necessarily less important than those in the second ring but simply net a smaller ROI relative to the amount of time and/or expense required to execute them. Take affiliate programs for example. If your business is totally web-based and you are selling products, offering an affiliate program might be among the most important things you do. However, you will need to pay a commission (25%-50%) on each sale generated by your affiliates. So unless you can sell your product with huge margins, there is a substantial cost associated with it. Many of these strategies/techniques require an investment of time but are usually totally or mostly free. And, they can have a very positive impact on traffic and orders.

In conclusion, other than alerting you to your choice of Web 2.0 online marketing strategies/techniques with a fancy graphic, I realize that I have not provided many details. Rest assured that in the weeks to come, I will provide you with detailed information on each of these strategies/techniques. You won’t want to miss a single post in this series. So how can you prevent that from happening? There are a couple of things you can do:

  1. Subscribe to my RSS feed by either email or reader (see upper right hand sidebar). If you are unfamiliar with RSS Readers, then select “Subscribe By Email” and every time I post a new article, you will receive an email about the article. With one click you will be at the new article.
  2. Bookmark this page and come back to check it whenever you can as I will add links to this page each time I post a new article in the series. However, if your memory is anything like mine and your “Favorites” has as many bookmarks as mine, you will probably find that the first option will work better for you.

Those that enjoyed this article, also enjoyed:
The Elements of a Web 2.0 Website
Web 2.0 Blogging For Business
Web 2.0 SEO – Search Engine Optimization
Web 2.0 Email Marketing & Autoresponders
Web 2.0 Pay-Per-Click Advertising
Web 2.0 Online Press Releases& Articles
Web 2.0 Forum & Blog Commenting
Web 2.0 Professional & Social Networking
Web 2.0 RSS Feeds and Widgets
Web 2.0 Video & Podcasting
Web 2.0 Wikis & Open Source Marketing
Web 2.0 Bookmarking & Reviewing Sites
Web 2.0 Affiliate Marketing Programs

If you would like to contact me, you can do so by emailing me at mike.clough@bestbizpractices.org or visiting my LinkedIn page.

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Responses

Mike,
I like the visual. It’s a great graphic as I explain this often to people. Keep it up.

Mike,

I am a graph, chart or any visual tool fool. Great graphic, look forward to your posts. I will make sure we get them shared with folks…

Mike,

I’m really looking forward to seeing what you do with this. It’s an interesting approach presented in a way that anyone can understand. Thanks.

Good stuff! Decent article that sums up some very key points.

Thanks, Mike for a good foundation article. I am looking forward to the next articles. I am going to recommend my SCORE chapter read your article.

Thank you for posting this. Very timely info for me. Excellent article! Highly interested in those to follow.

Great graphic, can’t think of a better way to explain it all…

Brilliant, your simplicity (visual) on this subject is exactly what I have been looking for.

Make it a great day!

Mike,

You are right. Great article. As you told me, “You can lead a horse to water but you can’t get him into a swimsuit.” Thanks for giving me the water and the swimsuit. I am putting it on now. You have my attention now.

Blair :-)

Thank you for sharing this, it is great information.

Mike -

Your information and guidance couldn’t be more on-target! Many people have been hesitant to grasp the reality of a “new business paradigm”, but sure enough, even they can making some important strides in the social media arena.

The only point I want to stress is that social media is “social”, meaning “experientially interactive”. So, until a small business owner starts to truly interact with these platforms, none of what you said is going to make much sense. You have to jump in, in order to make it work…

I think it’s also important to add, that like any marketing or public relations campaign, a social media plan may be best laid out by an outside organization. In this rocky economy, businesses need the best ROI than can achieve, so by approaching social media in a structured manner, results will be very positive.

Thank you again for providing the small business community with this series,

Kara

What a great illustration, I am pinning this up on my wall right now.

I think Social networking may move into the second ring judging by the fact that I can reach people via social networks much more effectively than email, simply because they receive tons of spam every day but not that many direct messages via facebook, LinkedIn, Twitter, or Private Messages within forum communities.

Thank you for the great explanation. It is simple and clear. I am eager to read the other articles

Your article has finally turned on my light enough to see there definitely is an “old” and “new media.

Despite countless hours online in reading and learning, (to a degree,) much about Web 2.0 and eCommerce I must confess to having continued to carry forward my experiences and knowledge of the “mechanical” without clearing enough gray space to give the “new media” it’s necessary space to be at the forefront of my thinking.

Have read and filed a goodly amount of your writings found on LinkedIn and elsewhere with the intention of sharing with contacts and business friends.

Thank you Duke. Possibly, you will also enjoy http://bestbizpractices.org/2010/01/03/why-many-small-business-are-still-struggling/ on this subject.

Mike, I’ve been using your model for Web 2.0 marketing with great success — I commend this article and especially your model entitled, “Web 2.0 Online Marketing ROI” to anyone looking to fast start their Web marketing efforts. Also, my advice to small businesses is to postpone Web 3.0 until you have every element of Web 2.0 in place, active, and functioning. I’m still harvesting success from my still expanding Web 2.0 systems. Thanks for the opportunity to comment…

William, thank you for your kind words. I view Web 3.0 as the icing on the Web 2.0 cake. Without a good 2.0 base, the return on 3.0 will be greatly degraded.

Great article on the basics. Graphic works so much better than just a long list in terms of steps, 1,2,3, etc. So many of my clients aren’t sure what to do first or what is most important.

Mike: Is the entire suite of Web 2.0 marketing techniques appropriate for all businesses? It seems like these techniques are more for the B2C companies rather than B2B companies.

Perhaps my feelings are based on my target market of “mature” business owners ready to sell their business. It just seems to me that RSS Feeds, Blogs, and Podcasts are geared to a younger crowd – and more of a retail consumer market.

I consider myself to be typical of my target market, and I don’t feel an affinity for these techniques from a user point of view. I’m I just projecting my personal feelings onto my target market , or am I correct in my supposition?

In any case, would it be a viable strategy to use Email and Professional (i.e. LinkedIn) Marketing, and update my website with more targeted messages to reach my 50+ year old market of business owners, and leave those other Web 2.0 techniques alone for now?

Good questions, Tom. There are a couple of issues to consider: 1. Where marketing has moved and why; and 2. Which of the tools will work for you.

You probably would not have been reading this article if you didn’t already realize that marketing has dramatically moved away from the old traditional methods to Web 2,0 and social media. It is very important to understand why this is. I recommend that you read Social Media: “What Up With That?” and Why Many Small Businesses are Still Struggling. They explain the why. In fact, if you search my blog by category you will find many articles on the topic because it is far more important to understand why than how to use the tools. You can search Google to find that information.

Now to your question about which of the tools to use for your target market. Any of these tools are only as good as the quality and size of the community you build around them. What good are a million contacts if none of them are in your target market? On the other hand, what real value do you have with just three solid gold, highly targeted contacts? You need both quality and quantity. It takes time to build quantity. So I recommend learning which tools your target markets are using for quality purposes. Click on these links to find the demographics for LinkedIn, Facebook and Twitter. I was surprised to learn that the fastest growing age group on Twitter is 65+ and that very few people under the age of 25 use Twitter. So study the ever changing demographics of these tools.

But Tom, I think you are on the right track with a couple of exceptions. Don’t under estimate the value of blogs. It is your blog that builds your online credibility and authority. After all, look where you came… to my blog. You may find useful a couple of posts I did on blogging for business. See Is Small Business Blogging Really Effective? and Is Your Blog Really a Blog? And if you are going to blog, you will certainly want to use RSS feeds to build a community around your blog.

On the off chance that by the time you get to this paragraph you are not tired of reading my blog articles (smile) allow me to also share a couple more I feel are quite useful. See LinkedIn: The New Business Card Exchange? and Should Small Business Give Twitter A Twirl?

I hope this is helpful. Good luck Tom!

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