On 12 June 2018, Selangor Information Technology and E-Commerce Council (SITEC), office located at i-City, Shah Alam, held a Mandarin e-commerce class, with Goh Boon Peng, founder of MyStartr and director of SITEC Academy, as the coach.
Goh began the session by introducing the concept of internet media. He opened with the topic of social media marketing by explaining the characteristics of “Paid media”, “We Media” and “Earned Media”.
- Paid media – Reflects the direct cost of marketing resources by making payments or exchanging resources. This type contains the vast majority of paid advertising, and is an effective way to expand coverage. Search engine ads, affiliate ads, targeted advertising, TV ads, etc. are included in here.
- We Media – Refers to companies or brands which have full control over their marketing media without additional costs. For example, website, blogs, email and so on. Some media companies even own their media such as magazines, newspapers, radio, or Youtube channels.
- Earned Media – This refers to obtaining free exposure and marketing resources with certain activities on social media platforms. These resources do not belong to corporates internally, and are therefore not absolutely stable. For instance, media interviews, subscription from website or social media platforms.
Goh shared the advantages of internet advertising from different perspectives including low costs, measurable results, advertisement varieties, such as precise, wide range and most importantly, speed of spreading the advertisement.
In internet era, advertisement is a powerful marketing model. Goh Boon Peng also shared the basic concepts of Web advertising for the benefits of those who are currently exploring Internet advertising.
The online advertising charging model is divided into several charging model, including charge per display, action or sales conversion, each type has its own charging model.
CPM (Cost per mille/Impressions): cost per thousand impressions. Advertising article, every 1000 (impressions) of costs is one of the most commonly used for online advertising.
- CPC (Cost per click): Charge by the number clicked. Keyword advertising using this pricing model.
- CPE (Cost per engagement): cost-per-action, namely according to the actions taken by each visitor on the advertising.
- CPA/CPO(Cost-per-Order): depending on how you charge per order/transaction.
Fixed Cost: flat rate ads.
“Compare with the cheapest CPM to the expensive CPO, the CPO can be closed up to 25% of orders its highest then CPM and own media costs were relatively low”
What we are familiar with is that Key opinion leaders (KOL) nowadays make up the concept of We Media. Due to the popularization of Internet 2.0, everyone had the opportunity to voice out and websites allowed users to provide their own content.
Some of the types of Earned Media included KOL (Key opinion leaders), vlog, blog, Facebook, content and e-paper. One such case is the “fans economy” of Chinese e-tailer Xiao Mi, who entered the Chinese phone market with their affordable range of low to higher end mobile phones.
According to Goh, Growth Hacking is predicted to see increased demand within 10 years, as growth hackers are efficient at using low-cost methods fuelled by creative thinking and analysis to achieve high volume revenue and traffic within a shorter period of time.
Goh ended the session by sharing about the AARRR model (Acquisition, Activation, Retention, Revenue, and Referral), which corresponds to to 5 phases of the user lifecycle.