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B8679: Digital Marketing Term: 2016 Spring A Day and Time: MW 2:15 pm to 3:45 pm Classroom: Uris 140 Prof. Kinshuk Jerath Class of 1967 Associate Professor of Business 521 Uris Hall (212) 854-2294 jerath@columbia.edu Office hours: TBD TA: Ryan Dew (RDew18@gsb.columbia.edu)

Course Description

Digital technologies and associated capabilities have revolutionized the practice of marketing in the last decade. The new digital marketing platforms that have emerged include display advertising, search advertising and social media; in addition, mobile is fast becoming a key touch point between firms and consumers, as compared to desktops and laptops which were the “traditional” touch points. Digital marketing has become an essential component of any firm’s marketing strategy, but managers are still grappling with this medium which is continuously evolving as well. In this course, we will develop a systematic understanding of digital marketing by learning concepts and tools whose applicability will endure even as specific technologies and implementation procedures change. We will conduct an in-depth study of display advertising, search advertising and social media marketing, at both the tactical and strategic levels. We will invest a significant amount of time on outcome and effectiveness measurement methods and campaign evaluation metrics. Towards the end of the course, we will discuss a host of varied topics such as mobile marketing, media planning, privacy issues and digital ad fraud. The course will be primarily lecture and discussion based, with cases and real-world situations used to anchor class discussions. Throughout the course, we will invoke academic papers that develop relevant theories and subject them to rigorous scientific tests. Homework assignments will reinforce, and extend, concepts learnt in class. Finally, students will write (in groups) papers on their chosen topics related to digital marketing. By the end of the course, students will gain a solid understanding of digital marketing topics, and the knowledge to navigate (and “cut through the hyperbole” in) this yet-evolving industry. They will also learn to qualitatively and quantitatively evaluate marketing impact. Many of the learnings will be applicable beyond digital marketing.

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Overview of Sessions*

Session Topic(s) Required Readings Due that day

1 01/27 (W)

Introduction: History; Digital marketing channels and classifications; Relationship to purchase funnel

-- Time Spent by Media 2014 -- The Consumer Decision Journey

2 01/29 (F)

Fundamental Ideas Underlying Digital Marketing: Search costs; Data-enabled capabilities; Internet “Law of Gravity”

-- What Makes the Internet Different? -- Online Advertising, Behavioral Targeting, and Privacy

3 02/01 (M)

Display Advertising I: Industry structure and economics; Programmatic and traditional buying; Ad targeting; Ad “retargeting”; User ad annoyance

-- The Evolution of Online Display Advertising (Video) -- Behind the Banner (Video)

4 02/03 (W)

Display Advertising II: Measuring impact; Randomized experiments; Sample size issues; “Super Bowl Impossibility Theorem”

-- The A/B test: Inside the technology that’s changing the rules of business

5 02/08 (M)

Search Advertising I: Sponsored search; Search engine optimization; Evaluation metrics; Strategic aspects of “Broad Match” and automation tools; “Poaching” on keywords

-- Air France case -- SEO 101, Beginners guide to Search Engine Optimization

-- HW Assignment I

6 02/10 (W)

Search Advertising II: Measuring effectiveness; Spillovers from display to search; Attribution

-- Did eBay Just Prove that Paid Search Ads Don’t Work?

7 02/15 (M)

Social Media Marketing I: User engagement on social networks; Social advertising -- Ford Fiesta case -- HW

Assignment II

8 02/17 (W)

Social Media Marketing II: Web 2.0; Social media analytics; Online word-of-mouth; Impact of online reputation

-- The Power of Like

9 02/22 (M)

Mobile Marketing: “Geo-fencing” and “geo-conquesting”; Differences from PC; Impact of “form” and manner of use on ad effectiveness

-- How You Can Use Geo-Location -- HW Assignment III

10 02/24 (W)

Privacy: User response to privacy concerns; Data sharing “paradox”; Impact of privacy regulation on ad targeting and effectiveness

-- Tracking our Online Trackers -- Why Managing Consumer Privacy Can Be an Opportunity

11 02/29 (M)

Guest Speaker (Amanda Vandervort, Senior Director of Social Media, Major League Soccer)

12 03/02 (W)

The “Dark Side”: Digital ad fraud Wind Up -- How Much of Your Audience is Fake?

03/04 (F) THERE IS NO CLASS ON THIS DAY -- Final Paper (due at 5:00 PM)

* NOTES:

• All HW assignments are due before the start of class. • This version of the syllabus is as of October 2015. Certain details may change with time.

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Optional Readings

Session Topic(s) Readings 1 01/27 (W) Introduction -- Spend some time exploring http://www.pewinternet.org/three-

technology-revolutions

2 01/29 (F)

Fundamental Ideas Underlying Digital Marketing

-- McKinsey Big Data report -- Does Internet Defy the Law of Gravity?

3 02/01 (M) Display Advertising I -- U.S. Digital Advertising Landscape And Key Players (Part 1, Part 2)

4 02/03 (W) Display Advertising II -- A Step-by-Step Guide to Smart Business Experiments

-- Determining Ad ROI, Attribution is Nearly Impossible

5 02/08 (M) Search Advertising I -- Do you need an SEO?

6 02/10 (W) Search Advertising II -- Attribution Modeling Overview

7 02/15 (M) Social Media Marketing I -- Social Media Disasters and How to Avoid Them

8 02/17 (W) Social Media Marketing II -- Understanding the Power of Twitter

9 02/22 (M) Mobile Marketing -- 13 Mobile Marketing Stats You Need To Know

-- Advertising’s Next Frontier: The Internet of Everything

10 02/24 (W) Privacy Issues in Digital Marketing

-- How data brokers profit off you without your (or the law’s) knowledge -- Digital surveillance: How you are being tracked every day

11 02/29 (M) Guest Speaker

12 03/02 (W) Digital Ad Fraud + Wind Up -- The Bot Baseline: Fraud in Digital Advertising

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Evaluation 1. Three assignments—group* (20% each = 60%)

a. Measuring Advertising Effectiveness Using Field Experiments b. Advertising Attribution in a Multichannel Advertising Scenario c. Social Media Analytics

2. Final paper—group* (20%) 3. Class participation and preparedness—individual (20%)

a. Attendance—10% b. Class preparedness and in-class contributions—10%

* Groups can be of size one, two or maximum three. Group composition can vary for different deliverables.

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