What is the e-commerce ecosystem?

Understanding the electronic commerce ecosystem is vital for a company. However, we recognize that once you are thrown into the creation of a business, it’s easy to get lost amidst the chaos. This is why we have dissected the digital marketing biosphere in order to help you find your bearings.

Of course, it isn’t necessary to develop every single strategy. However, establishing a balance between different domains will allow you to make up for what you cannot fulfill and help you find a strong, sustainable position in your market.

Here are seven kinds of marketing tactics for developing your business.

electronic commerce ecosystem business

Display Marketing

These are a part of our environment while we surf the internet: advertising banners, pop-ups, videos, hover ads… display marketing is omnipresent and it comes in many forms. We find them on websites, applications (apps), and even on social media networks. There are two principal actors: advertisers and publishers. Advertisers invest in a marketing campaign to promote their products and/or services. Publishers are administrators who provide support to advertisers by running their marketing campaign on their website.

There are certain “departments” that increase the broadcast of a marketing campaign so it can be visible to the desired audience. In terms of investment, there are two kinds of strategies: the auction marketing plan, where an advertiser defines a price for the advertisement’s broadcast, or a retargeting campaign to obtain clients who have already exhibited (through their online searches, interactions, etc.) an interest in the brand. Cookies play a central role in display marketing, because they allow publishers to target and promote relevant advertisements to users. Display marketing offers a large variety of formats, including animation, advertising banners, pop-ups, videos, pop-unders… you need to be creative and innovative to stand out. The objective is to generate an interaction (a click) with the ad to attract the user to your website. The quality of the visual is therefore paramount.

Mobile Marketing

Mobile marketing is the entirety of marketing strategies based on cell phone use. Since the advent of smartphones, mobile marketing has taken off. Gone are the days where mobile marketing was merely sending an SMS. Today, the evolution of mobile technology (4G, MMS, smartphones) provides a multitude of opportunities for advertisers. The advantage mobile marketing offers compared to other strategies is the proximity to the client. With geolocation, beacons, apps, connected devices, micro-moment marketing, mobile payments and more, there are a multitude of possibilities a brand can employ and integrate into its marketing strategy to maximize its relationship with their client. Mobile marketing should be at the centre of your attention, because it promises a bright future.

Content Marketing

It’s a practice that consists of a business creating and distributing content at the disposal of leads or clients with the goal to develop their activity. It is important to distinguish content marketing from advertising. The objective is not to sell (directly) but to inform and engage the consumer in order to influence their buying process. Content marketing acts at different levels: understanding the brand’s universe, accelerating the buying process, increasing search engine optimization, etc. A successful content marketing strategy first defines and understands its audience in order to promote relevant content. For example: if you sell sports accessories, why not offer a video like “how to choose hiking boots” or even an article that suggests “5 tips for preparing for a marathon”? You’re free to choose the type of content that suits you (video, photos, articles, descriptions, etc.). This strategy’s objective is to incite leads and clients to consume your product and/or services.

Social Media Marketing

Social media marketing isn’t simply publishing a photo or a tweet. Social media networks are considered full-blown media and they each have their own distinctive traits. Facebook, LinkedIn, Snapchat, Instagram, Twitter… these platforms all have discussion and exchange in common. Thus, it is important for a brand to respect these principals, while still respecting the role and characteristics of each individual platform. The objective of social media marketing is to create ties with the platform’s users. One of the challenges is pinpointing the manner in which all the networks compliment one another; harnessing and portraying the framework of your brand’s story, thus establishing coherence in your content across multiple platforms. The interaction between the brand and its fans is the key to success. Social media platforms are rich marketing tools for managing a brand’s communication.

Search Marketing

SEO, SEM, SEA… do these mean anything to you? This is what we call search marketing. Search marketing regroups all indexing activity for a brand’s content across search engines, comparison shopping engines, referral platforms and applications, as well as what consumers write and communicate across social media networks. Social media marketing is one of the key players in digital communication, and one of the most important. The key to success: words. Search engines will index your words. Images and videos are elements that can also be indexed. There are two ways to appear in search engine results: paid, and organic (meaning, free). When it comes to Search Engine Marketing (SEO), the referral method is natural, meaning you obtain a position on search engines by optimizing the content of your website. Search Engine Advertising (SEA) is a method that uses a system of auction and dynamic pricing to allow a website, commercial offers or other types of content to position themselves favourably in search engines. This comes back to purchasing advertising presence on search engines.

Data Marketing

This is the crux, the gold mine for every company that knows how to collect it correctly: data. It allows you to know your client, to orient your strategy and attain your objectives. Data marketing rests on utilizing your clients’ data. Creating a database is paramount for a business. In order to maximize your understanding of your client, it is important to consider how the information will be collected. Your database will allow you to establish a strategy in line with your clients who have already exhibited an interest in your brand and are susceptible to purchasing more of your products/services. Observing habits, purchase frequency, average basket… there exists a multitude of elements that will allow you to ensure these clients receive personal treatment, giving them that feeling of exclusivity. Have a new product? Inform your clients. Your database gives you the power to obtain your potential clients at the lowest cost and to reactivate dormant clients. Bear in mind it costs less to retain a client than it does to acquire one. It is important to note the importance of ethical data collection and data treatment.

Performance Marketing

CPM, CPC, CRA, ROI… have you ever heard of these terms? When you invest in an internet advertisement, you need to be able to measure and understand the cost. Performance marketing represents the techniques that allow you to measure a campaign’s results. Understanding the performance of your advertisement investments will allow you to select the platforms that are the most adapted for obtaining your target. Performance marketing is unique to each company. A business can have an excellent cost per click (CPC or PPC) on Google but can have a high CPC on a social platform. A business in the midst of launching could have a hard time judging what works the best and what brings in the most. You need to test metrics and stay attentive to them. This practice will help you orient your future strategic decisions. Here is a small lexicon of current terms:

CPM: Cost per mile, meaning cost per thousand views or clicks   The price varies according to the advertisement’s frequency  
CPC: Cost per click  The cost is defined according to the number of times a user clicks on the advertisement  
CPL: Cost per lead   The cost is defined by the number of times a client provides contact information  
CPA: Cost per acquisition, or cost per action   This consists of billing the advertiser according to the obtained results during a campaign (online purchases, subscription to newsletters, etc.) 
ROI: Return on investment   This is the amount of money earned or lost compared to the initial investment of the marketing campaign  
  • CPM: Cost per mile, meaning cost per thousand views or clicks – The price varies according to the advertisement’s frequency

  • CPC: Cost per click – The cost is defined according to the number of times a user clicks on the advertisement

  • CPL: Cost per lead – The cost is defined by the number of times a client provides contact information

  • CPA: Cost per acquisition, or cost per action – This consists of billing the advertiser according to the obtained results during a campaign (online purchases, subscription to newsletters, etc.)

  • ROI: Return on investment – This is the amount of money earned or lost compared to the initial investment of the marketing campaign

Keypoints

It’s easy to see digital marketing requires juggling all of these factors at once. Every segment compliments another. It is important to reflect on your strategy from a global perspective in order to maximize the potential of each domain. Defining your objectives, your audience and your environment accurately will facilitate your strategic decisions.

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Caroline Godin

Billy.Social Founder

info@billy.social