Monday, November 30, 2015

Search Engine Marketing of Under Armour



The Usefulness of Search Engine Marketing

Search engine marketing, or (SEM), is a form of internet marketing that "seeks to promote websites by increasing their visibility in search engine result pages" (Roberts & Zahay). Companies can maximize their search engine marketing in two ways: Search engine optimization (SEO) and pay-per-click (PPC). The maximization of this marketing form can help increase the brand name of a company and ensure their company jumps to the top of search engine lists. 

The main difference between these two is paid and unpaid advertising. SEO focuses on creating sites based on content that pushes it to the top of a search engine list such as Google and Yahoo. They are also known as natural, or organic searches. 

PPC is also called paid advertising, and it uses targeted keywords to gain search results on search engines. It's main purpose is to obtain a high ranking in specific search categories based on certain keywords.


Natural Vs. Paid Search Results

As seen in the image below, the natural results are boxed in green, and the paid ads are boxed in red. The paid ads are the first thing that a searcher will see. However, these paid ads may not always be the most reliable since larger companies can afford to pay more money to have their ads come up above others. That is why the natural search results can be more advantageous at times.

Of course there are advantages and disadvantages for both types of searches. Below are some of the advantages of disadvantages of each and how they relate to Under Armour (Roberts & Zahay)
This post will look at Under Armour's search engine marketing, both natural and paid, on Google to see how effective Under Armour is at optimizing their search engine efforts. It will also show Under Armour's social media presence. 

Under Armour on Google 

When looking at the natural search results of Under Armour, I decided to use "running shoes" as the keyword since Nike and Under Armour are competitive in these areas. The results are shown below:

When searching for "running shoes" in the Google search bar, Under Armour does not come up in the natural searches even after searching through several pages. Here, we see the disadvantages of natural search for Under Armour. Through the natural search, we see that Under Armour would not be an immediate result for those searching for running shoes. As a consumer, I'm willing to search through the third page of results at most before moving to another search. Nike came up as a result at the bottom of the first page, while Under Armour was not even in the first three pages. 

When looking at the paid search results, we see that Under Armour is much more successful: 

Here we see the advantages of paid searches. Under Armour holds the first ranking position for the keyword "running shoes". Although a consumer may not always click on the paid searches, they will always look at them. This gets Under Armour's brand out there and in the eyes of consumers. It is immediate, and it shows consumers that Under Armour is a top brand name as they can afford top rankings.

When using the search "running shorts", Under Armour came up on the first page for natural searches as well as a top ranking in the paid search. This goes to show the importance of keywords and how beneficial paid searches and organic searches can be when used together. 

Social Media

Social media has become a huge part of a brand's success. It provides a way for a company to relate to their customers, to interact with them, to humanize, and give character to a company. It also helps companies to choose keywords by interacting with their customers through hashtags (#), comments, and trending items. 

Under Armour's social media efforts seem to be behind most other competing companies in the industry. Under Armour's Instagram for instance has mostly images of their sponsors and are not interactive or personable, use few hashtags to gain interest, and look more like blow up pictures seen as billboards instead of a social media post: 

Nike has more personable posts with details about pictures that help their customers relate to Nike as a brand rather than a company. They also tend to highlight their products rather than their sponsors in their posts. Nike's NRC grabs those that are part of Nike+ Run Club (#NRC) and tells the story of one of their dedicated customers that embodies what it means to wear Nike:

Finally, lululemon also has personable posts that engage their customers. On Thanksgiving, they shared a photo that read "I'm Thankful" in artsy print, encouraging their customers to share what they're thankful for. lululemon was also the leading poster, having a post as recent as 2 days ago, with Under Armour following 5 days ago, and Nike coming in with their most recent post at 6 weeks ago. 

What Can Be Made Better?

I think that Under Armour utilizes paid search very well, coming in at the top of most keyword searches for products in their industry. However, their natural search results vary based on the item being searched. This may have to do with the fact that Under Armour is more focused on their apparel rather than running shoes. To increase their natural search results, Under Armour should focus on their target market and using keywords favored by this market in their pages. 

Under Armour's social media efforts have room for improvement as well. With pictures that highlight their clothes and products, with normal people wearing them, I think they would be able to increase their social media presence. By using more creative hashtags and tapping into to current events, such as Thanksgiving as lululemon, Under Armour could gain more traction in trending items. A well-tuned, well-kept social media site can really help a company interact on a more personal level. 



Works Cited:
lululmeon. "The secret to having it all." Instagram, 26 November 2015. Photograph. 30 November 2015. 

Nike. "04:40:08." Instagram, 7wks. Photograph. 12 October 2015. 30 November 2015.

Roberts, Mary Lou., and Debra L. Zahay. Internet Marketing: Integrating Online and Offline Strategies. Mason, OH: South-Western Cengage Learning, 2013. Print.

Under Armour. "You can't spell UNDEFEATED without UA" Instagram, 25 November 2015. 30 November 2015.






Tuesday, November 10, 2015

Does Email Marketing Really Work?

Direct Marketing and Email Design 

Email marketing is expected to be the main form of promotional activity according to Dr. Debra Zahay and Dr. Mary Roberts, marketing professors at Universities across the country. With 58% of consumers starting their day with their emails, marketers have upped their email marketing budget to target the large percentage of consumers (Roberts & Zahay). 

This blog will look into the email design that goes into a promotional email from companies, specifically Nike. All three companies that I have been following (Nike, UnderArmor, and lululemon) follow good direct marketing and email design. I feel that Nike goes further in the area of personalization and customization, the two highest levels in the hierarchy of customer-focused marketing strategies as shown in the graphic below. This blog will also see if these emails are compliant with the CAN-SPAM act, and see if Nike is using email marketing to their full advantage.

Customization is the highest level of customer focused marketing. At this level, marketers have learned and gathered information from their customers to create and/or push products they believe will resonate most with a particular customer. Our book points out that Nike has excelled in this area by creating NikeID, a site where customers can customize products made by Nike. As a NikeID member, I have customized items through their site and had them delivered to my door. Their site is easy to use and encourages me to buy products that are similar to those I have customized. In addition to on-site promotions, Nike has acquired my email address in order to send me promotional emails as well. Below are images from a particular email I received from Nike and show how Nike follows good email marketing design and principles (Roberts & Zahay).

The first thing to look at when analyzing Nike's email practices is how it appears in the viewer's email inbox. When I first see the email from Nike, I can see that the subject line clearly states what they are promoting: the Women's Holiday Gift Guide. The "From" line reads: Nike and the "Reply To" line reads: Nike Customer Services. These aspects all appeal to transparency and align with the CAN-SPAM act discussed later in this post.
The first image is the initial picture that I see when I open the email. The image shows a man and woman wearing Nike gear, with the title "The Nike Holiday Gift Guide 2015". This title is linked to the Nike gift guide webpage, and when clicked a customer is sent to a "Gifts for Athletes" page. From here, I can easily access the women's attire and shop those products by clicking the bottom right "shop women's" hyperlink. You can also easily access the items that you can customize along the top bar. 
The next image shows children wearing Nike products and has two links to the boys' shop and the girls' shop. You can also access the guide from this page by clicking the "explore the guides" button which brings you directly to the shopping site for the guide! 
Next, the email shows a NikeID section titled "Customize with Nike ID" with a hyperlink to the NikeID site. Easy access to customized sites encourage consumers to make purchases because they can edit products to their exact liking.
Finally, at the very bottom of the email is a graphic that highlights the services they offer for their products, or in this case gifts. Again Nike promotes NikeID as a way for buyers to customize their gift. They also emphasize their free shipping and free returns. By clicking on any of the linked images, the viewer is directed to more information on each of these services. This image also has the "unsubscribe" option and Nike address that must be visible on all promotional emails to follow the CAN-SPAM act.
*All images were screenshots from a promotional email I received from Nike.

What is CAN-SPAM and its Requirements?

CAN-SPAM is an Act established in 2003 by the U.S. Congress to combat phishing, unsolicited, and offensive emails and is monitored by the Federal Trade Commission. The act promotes transparency from marketers by setting rules they must abide by. This act has the following provisions:
  • It bans false or misleading header information - this means that a marketer must be truthful in their "To" and "From" lines in order to identify who the marketer is. The Nike email I received adheres to this provision.
  • It prohibits deceptive subject lines - this also prevents marketers from luring consumers into traps. By having clear subject lines, consumers should be able to know exactly what the promoted product is. Nike's subject line clearly stated that they were promoting the Women's Holiday Gift Guide.
  • It requires that an email offers an opt-out method - although at the bottom of the email, Nike did have the unsubscribe option in smaller print than the rest of the email.
  • It requires that commercial email be identified as an advertisement and include the sender's valid physical postal address - Again, at the very bottom of Nike's email in small type, Nike's address can be found (Roberts & Zahay). 
Nike's promotional emails are in accordance to the CAN-SPAM act and because of that, are more appealing to customers. I do not have to worry about being spammed by Nike or clicking on an email that may promote something other than its subject line. As a consumer, it makes me trust Nike more and encourages me to be a repeat buyer. 

So Does Nike Successfully use Email Marketing?

I think that Nike's email marketing is successful. I usually browse through the emails they send me. One area I think Nike could use A/B testing is on their layout. Currently, the email's pictures are organized vertically and the customer must scroll quite a bit to see all the pictures. I think they could test their current design against another in which the picture are aligned horizontally, in panels that fit on the screen without having to scroll. They could measure the test site by conversions. 

I also think that Nike successfully uses the four internet "I"s to their full advantage.
  • Interactive - Nike sends specific offers to customers based on their prior purchases and tastes
  • Information driven - Nike sends emails that inform customers of current deals and popular items. It also allows Nike to gather more information on customers based on their conversions and open rates.
  • Immediate - Nike offers a link at the bottom of their emails for questions and concerns. When clicked, a customer can enter their problem into an email and will get a reply within 24 hours.
  • Involving - This is an area where Nike's website and promotional emails could be improved. Nike's emails are mainly composed of pictures, not interactive videos. Their website has videos and commercials that come up on the screen occasionally and has changing images that promote current trends (Roberts & Zahay). 

Overall, I think that Nike's email marketing strategy is successful. Their emails highlight specific products that are often catered to a customer's taste. Ultimately, a company's goal is to retain customers and increase value. As a repeat customer of Nike and NikeID, I think that Nike has accomplished this. With their transparent emails and level of customization, Nike has set themselves apart from other sport-apparel companies. 



R   Roberts, M., & Zahay, D. (2013). Business Models and Strategies. In Internet marketing: Integrating online and offline strategies (3rd ed., pp. 60-            79). Mason, Ohio: South-Western Cengage Learning.