There are multiple reasons why an online advertisement might NOT register an impression.

• Ad Bots
  Ad bots scour the internet for opportunities to hack websites or glean user information.  When an ad bot appears on a website instead of a user, they count as a false impression although they might appear as legitimate website traffic.
• Broken Links
  Errors are not uncommon on the internet, and likewise, it is not unusual for an error to occur with an online advertisement. Broken links do not equate to bot traffic or fraud; they mean communication did not happen as intended between a browser and a server. If a broken link is present, however, no impression is made.
• Fraud
  Some scammers create online advertisements and create false impressions on accounts to get paid.  Actions such as this are fraudulent, and businesses that intend to purchase online advertisements based upon ad impressions should be aware that such scams exist.

Why are ad impressions important?

Typically, online advertisements are priced and sold according to the possibility that they will receive impressions.  This calculation is known as performance-based advertising.

Online businesses that choose to purchase advertisements based on impressions need to be familiar with these terms:

Cost per Impression

The price for many online advertisements is calculated based upon a cost per impression.  When a business purchases advertisements based upon cost per impression, they receive a charge each time their advertisement fully loads from its hosting server.  Typically, cost per impression advertisement packages requires a minimum or a maximum number of impressions a business can purchase at one time.

Cost (Pay) per Click

Cost (Pay) per click marketing is an online advertising campaign where advertisers pay when one of their ads is clicked on by a consumer. This form of marketing can be cost effective as the advertiser does not have to pay until a consumer clicks on the link. Cost per click advertising is often combined with cost per impression advertising or offered as an alternative.

Cost per Order

Cost per order or per conversion is how businesses calculate the cost or value of their online advertising package.  Cost per order includes the price of cost per impression and cost per click and determines the rate required to acquire a potential customer.  Many businesses base their online advertising budgets based on cost per order.

Understanding ad impressions, the cost involved, and elements that factor into an official count helps a business to make better decisions when it comes to online advertising.

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Upselling

Upselling is a sales practice used to encourage potential customers to purchase alternative or additional goods or services of a higher value.  Typically, upselling takes place when a customer intends on making a purchase, but a retailer identifies alternative or additional options at a higher price point.  The technique of upselling helps businesses to be more profitable.

Example of upselling: A customer intends to purchase a winter jacket from a website. The jacket they have in their shopping cart is of the lowest price point for the brand.  The website suggests a better winter jacket to the customer with additional features. The customer purchases the recommended jacket.

Cross-selling

Cross-selling is a sales practice used to encourage current customers to purchase goods or services related to past transactions.  Typically, cross-selling takes place when a business can identify a loyal customer and offer further solutions to them. The technique of cross-selling helps businesses to create loyal customers.

Example of cross-selling:  A customer intends to purchase a winter jacket from a website — the winter jacket pairs nicely with a pair of gloves and a scarf from the same collection. A suggestion is made to purchase the gloves and scarf to the customer, and the customer makes the purchase.

Downselling

Downselling is a sales practice used to sell goods or services to customers who have previously declined a purchase option.  Typically, downselling takes place to get a customer to purchase something at a lower price point than initially intended by the seller.  The technique of downselling helps businesses to obtain customers at a higher rate.

Example of downselling: A customer intends to purchase a winter jacket from a website.  After the jacket sits in the customer’s cart for an extended period without being bought, the website suggests a different jacket at a lower price point. The customer is more comfortable with this option and purchases the recommended jacket.

Why are upselling, cross-selling, and downselling important?

Upselling, cross-selling, and downselling are successful sales practices and essential components of a fully functional sales strategy. For any of them to take place, there must be an interested customer at hand. Furthermore, businesses should practice each of these sales components on every customer. If a business has not implemented upselling, cross-selling, and downselling into their business strategy, they are likely missing out on sales, customer satisfaction, and customer retention

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How To Calculate AOV:

To calculate AOV, one must take the amount of revenue a company has and divide it by the number of orders.  One can calculate AOV over the entire life of a business or a specific period depending on the needs of the business owner.

Why is AOV important?

AOV is beneficial to companies for many reasons.  The average order value over a specific period can be used to determine how many items customers are purchasing in every visit as well as which products are most popular among customers.

In general, the higher a company’s AOV, the higher the value of every customer. Because AOV can help identify customer value, businesses can use AOV to determine how much they can afford to spend per customer.

AOV can be raised using specific sales strategies:

• Upselling
  Upselling is a sales strategy used to increase the cost margin of products customers purchase.
• Cross-selling
  A sales strategy used to sell additional or alternative products to current customers.
• Discounts
  A sales strategy used to sell a higher volume of products to customers.
• Customer Incentives
  A sales strategy used to encourage customers to purchase more products or become return customers.
• Company Policies
  Processes used to increase customer satisfaction and increase the likelihood of customers making purchases.

Businesses interested in raising their AOV should also examine their marketing methods and eCommerce platform processes.

AOV can also help businesses to determine other important metrics:

Cost per Conversion:

Cost per conversion is how much it costs for a company to acquire a new, paying customer. Cost per conversion is significant because it helps to determine a company’s financial success.  Cost of conversion can be subtracted from AOV to determine the profit margin of a customer.

Lifetime Revenue per Customer:

Lifetime revenue per customer is used to determine how much value a customer has for a company over time.  The value of lifetime revenue per customer can be calculated by taking the AOV and multiplying it by the average number of transactions a customer makes.  If customers have a low lifetime value, companies can use that information to determine strategies to increase both the AOV and the average number of orders.

Businesses that pay attention to Average Order Value are more likely to experience an increase in gross profit over time because they have a better understanding of their customers’ behavior and purchasing patterns.

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HTTP Protocol

HTTP Protocol stands for Hyper Text Transfer Protocol.

HTTPS Protocol

HTTPS Protocol stands for Hyper Text Transfer Protocol Secure. HTTPS encrypts every communication between your web browser and the address using random code.

How  does HTTP and HTTPS work?

When an internet user puts a web address into the internet, HTTP and HTTPS are the languages that communicate with servers and browsers all over the world to make a specific website appear on that user’s screen in response.

In other words, a user sends a request to the internet via the address bar for information and in response to that request servers and browsers search their files for resources. These resources include URLs (User Resource Locators) and  The servers source the specific web address and send the translated data to the user’s browser.

This process occurs every time an action takes place on the internet.

The Language of HTTP and HTTPS

As languages, HTTP and HTTPS are rather complex. Each communication is independent of the communication before it which allows the internet to function individually for each user.  HTTP and HTTPS are composed of two essential elements – Hypertext and hyperlinks.

Below are the definitions of hypertext and hyperlinks.

• Hypertext: Hypertext is text on the internet that is linked directly to other text.  Typically associated with internet web pages, hypertext consists of both text style links and graphics.
• Hyperlinks: Hyperlinks are a form of hypertext that directly connects one online document to another.  Created by using clickable anchor text, hyperlinks appear on every website and search engine.

Another component of HTTP and HTTPS Protocol are Status Codes. To completely understand the language of HTTP and HTTPS, one must also understand the meaning of HTTP and HTTPS status codes.

The most common HTTP Status Code is Status 404, File not found. If there is a message sent via HTTP or HTTPS protocol and the right resources cannot be located, this status occurs. Other Status Codes include Status 401 (Unauthorized), Status 400 (Bad File Request), Status 403 (Forbidden/Access Denied), Status 408 (Request Timeout), Status 500 (Internal Error), Status 501 (Not Implemented), and Status 503 (Service Unavailable).

HTTP and HTTPS Updates

Developers constantly update standards for HTTP and HTTPS to provide for the constant evolution of the world wide web.  One of the biggest current updates to HTTP and HTTPS protocols is the ability for the language to respond to users’ individual preferences on websites.

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Brands can drive their brand equity by creating a positive consumer experience, enhancing the quality of their products, and by increasing their brand recognition.  Brands that tend to spend more time and effort on marketing have higher brand equity.

Businesses that desire to build high brand equity need to invest time in creating brand awareness and brand loyalty.  To develop brand awareness and brand loyalty, however, a business must first focus on brand identity and brand resonance.

• Brand Identity
  Brand identity builds upon the ideals a company holds for its products and services. Significant components of brand identity include product quality, quality of service, style of products and services, as well as how the company positions itself in public.
• Brand Resonance
  Brands that take the time and effort to build a positive brand identity are likely to have a positive brand resonance with consumers.  Brand resonance is how well consumers relate to a particular brand.  Brands should align their identity and strive for high brand resonance with their ideal consumer.

Once a business has developed a brand identity and brand resonance they create a cycle around them to build brand equity.  The cycle includes introducing the brand to new consumers, getting products or services into the hands of new consumers, earning the trust of new consumers, and finally building a steady relationship with new consumers.

This cycle can be broken down into two main components:

• Brand Awareness
  Brand awareness is the familiarity of a brand with consumers.  It is the image of a brand as painted by its qualities and marketing efforts.  Brand awareness includes logo recognition, product recognition, and brand service recognition.
• Brand Loyalty
  Brand loyalty is a consumer preference of one brand over another. When a consumer develops brand loyalty, they will likely continue to purchase that brand regardless of price, environment changes, or brand action. Brands that produce a high level of brand loyalty create a safety net for their business.

In the end, brand equity is built upon brand identity and brand resonance and is the outcome of brand awareness and brand loyalty.  Brands that can produce a steady cycle of identity and resonance are more likely to have high brand awareness, high brand loyalty, and ultimately high brand equity.

The Importance of Brand Equity

Brands that have positive brand equity can charge more for their products and services regardless of the cost to produce them. Overall, brand equity improves business margins, stock prices, and creates security for a business.

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The purpose of Omni Channel is to enhance customer experience.  When Omni Channel is active, customers develop a relationship with the brand and are more likely to purchase from the same company or retailer in the future.

Essential Components of Omni Channel

• Social Selling
  Social selling includes the sales of products, goods, or services across all channels of social media including Facebook, Instagram, LinkedIn, Twitter and more. Likewise, social selling also includes engagement with consumers across the aforementioned social media channels.
• eCommerce Stores
  eCommerce stores refer to a brand’s website shopping experience including, but not limited to, the processes of selecting an item or service, checkout, shipping, and customer service.
• Digital Marketplaces
  Separate from eCommerce stores, digital marketplaces are online shopping portals that sell multiple brands and products under a larger umbrella.  Amazon and eBay are some of the most popular digital markets today.
• Mobile Applications
  Mobile applications enhance a customer’s experience by providing opportunities for interaction with a brand.  Most mobile apps are built to offer discounts, reward points, and customer service as well as shopping.

Omni Channel Strategy

Businesses that desire to implement Omni Channel require four areas of strategy. These areas include platforms, processes, staff, and implementation.

• Platforms:
  All omni channel retailing requires multiple platforms.  Different platforms include a brand’s website, ecommerce platform, social media, mobile application, and customer support.  Each platform plays a unique role in a brand’s omni channel. Each platform must also work in tandem with all other platforms to carry out a successful omni channel strategy.
• Processes:
  Processes in terms of omni channel refer to the plans in place to implement the tools and resources necessary to create a positive retail customer experience.  Successful omni channel includes tested processes across each component of the experience.
• Staff:
  Staff refers to the necessary people in place to carry out processes.  A brand with an active omni channel connects staff across processes and platforms to ensure there is continuity within their customer experience.
• Implementation:
  Implementation is the practice of putting platforms, processes, and staff in place and testing the outcomes over the multiple components of omni channel.  It also requires refinement of all platforms, processes, and staff to be successful.

The ability to create omni channel retailing has a positive impact on the success of a business by enhancing the customer experience of a brand.

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What elements does the BBB use to rate a business?

The elements that the BBB uses can be found on their website, but are summarized below.

1. The history of complaints with the BBB. The BBB will consider the complaints against the business, while taking into consideration the businesses size, as well as whether or not the business has made a good faith effort to resolve said complaints.
2. Type of business. If the business itself may create issues within the marketplace (or works outside the law) then the business may receive a lower score.
3. Time in business. A business’s rating is affected by how long a business has been in business.
4. Transparent business practices. The BBB requests information about a business’s products and services, as well as ownership, and address. If any of the information cannot be determined, a business may then receive a lower score.
5. Failure to honor commitments to BBB. If a business fails to honor their commitment to mediation or follow through with other forms of resolution, they may receive a lower score.
6. Licensing and government actions known by BBB. Though the BBB does not routinely check on businesses not accredited by BBB, they will do so on businesses seeking or currently accredited by the BBB.
7. Advertising issues known to the BBB. When a business faces advertising challenges through complaints filed through the BBB, if they are not answered or addressed accordingly then they risk a lower score on the BBB ranking.

How does the BBB calculate ratings?

When a BBB ranks a business, they take into consideration all of the elements listed above. A business that fails to do business well, or a business that routinely makes mistakes (i.e. in advertising or in transparency) is going to receive a poor score. It is important when starting a new business to work together with the BBB, because consumers are influenced by a businesses BBB rating. If a business does take a hit on their rating, they can improve that rating by resolving the issue and communicating that to the BBB.

In some instances, a business may not have a rating. In those circumstances it is due to the business not seeking BBB accreditation, and the information not being on file. A business that fails to seek accreditation through the BBB is not penalized on their BBB rating.

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 Types of Overhead Cost

Overhead costs typically come in three categories: fixed, semi-variable, and variable.

• Fixed costs: Fixed costs and constant costs that don’t change over time. These costs may include administrative salaries, rent, insurance, and anything else that has a set price. The important thing to remember about fixed overhead costs is that they will be the same every month.
• Semi-variable costs: Semi-variable costs are those costs that are always there, but may fluctuate in their actual dollar amount. Typically, semi-variable costs have a fixed amount and the variable comes into play when the cost exceeds the fixed dollar amount. For instance, utility costs may be higher for retail businesses during the holidays when they stay open for longer hours and/or have to run HVAC systems. Other costs, like advertising, may vary also depending on the marketing plan selected.
• Variable costs: Variable overhead costs are those costs where there is no fixed dollar amount, and the costs aren’t constant. For instance, companies that only engage in production during certain months of the year would consider those costs variable. Legal costs, when a lawyer isn’t on retainer, would be a variable cost. Small businesses that only use accounting services annually would consider that a variable cost.

Tracking Overhead Cost

While there are the three main types of overhead cost, they will typically be broken down differently for the company’s income statement. Larger companies may choose to categorize overhead cost by breaking it down into department, with a general category for overall business expenses. Other companies may choose to categorize their overhead costs based on the activity being performed. Where one company may choose to break overhead costs into departments, thus including administrative employees’ salaries in their respective departments; another company may choose to create categories based on specific categories, choosing to include all employee salaries in one specific category. There is no specific correct way to handle the break down of overhead costs, as long as all costs are considered and it works for the person in charge of accounting.

The Importance of Overhead Cost

Tracking overhead cost is essential for operating a successful business because it helps identify the bottom line. For instance, a retail company may take their overall sales for the month and consider it successful, but in order to determine their level of profit they need to consider total sales for the month, then subtract any direct costs (not included in overhead) as well as all indirect costs (also known as a business’s overhead costs). Once salaries, rent, utilities, etc. have been subtracted from total sales, only then does a business have a clear view of their net profit, or bottom line.

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Economic Responsibility

A businesses economic responsibility is best defined as it’s responsibility to growth and profit. While that was once the only consideration that those in business had to consider, rapid growth of nationally recognized corporations forced the government to impose legislation that would force businesses to recognize their impact on other areas (the Environmental Protection Agency, for instance). While those programs are necessary and have made a significant positive impact on CSR, there is still the underlying responsibility to perform economically. Therefore, one of the most basic tenets of CSR is the economic responsibility to create a product or service that is widely accepted, thereby earning a decent enough profit to be able to abide by the other three tenets of CSR.

Legal Responsibility

Anyone starting a business has a basic legal responsibility to conduct business in a manner that abides by the rules of the land. The legal aspect of CSR is in place to ensure that companies abide by responsible business practices. Laws regulate the competition, environmental impacts, protect consumers, and promote safety and fairness.

Ethical Responsibility

Ethical Responsibility is where a large part of social responsibility comes into play. Businesses have the opportunity to make decisions every day about things that are not currently regulated by government. At times there will be a clear distinction between what is ethically right, and what is in the best interest of the company. For instance, a national coffee chain choosing to use ethically sourced coffee, versus the alternative. It may be more cost effective for them to choose the alternative method, but choosing the ethically sourced coffee is better for the environment and the people native to those regions. Ethical responsibility takes into consideration what is best for the environment, what is best for the workers, and what is best for their community. A company in Arizona, for example, had many of its employees located in a small suburb outside of their city. During the day a fire broke out near the suburb, causing many of the affected employees to be issued evacuation orders. However, the company would not allow the employees to leave to secure important belongings and transport family members without filing paperwork stating that they were taking leave for the time they would miss that day. Despite being evacuated, they were expected back at work the next day. This company failed to ethically take care of its employees.

Philanthropic Responsibility

Commonly associated with CSR, philanthropic is beneficial for both the company and the community. Philanthropic measures can be as small as sponsoring a local little league team, or making a large donation to a fundraising organization. Some companies encourage their employees to part by donating money, or even time to these events. In some cases, companies provide their employees with paid time off in order to dedicate time to certain philanthropical efforts. Philanthropic efforts tie companies to their communities, help employees feel good about their involvement with the company, and add to a company’s advertising efforts.

CSR is multi-faceted and should play a significant part in corporate long-term strategy.

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Forms of Advertising.

There are many different forms of advertisements in the marketplace.

• Print Media: One of the oldest forms of advertising. Includes newspaper ads, mailers, flyers, coupons, and even magazines.
• Support Media: Frequently used for local businesses. This type of advertising includes bus banners, billboards, aerial ads, bench seats, and directories.
• Broadcast Media: Commonly known as television and radio commercials. These may include traditional commercial advertisements, but also may include product placement. Consumers have gotten savvy through the years, using DVR to fast forward through commercials. With agreements with entertainment agencies, companies can place their product within programming to get their product back in front of consumers.
• Social Media: One of the most recent types of advertising, social media campaigns are highly effective at getting a company’s message in front of the right customers. A company can target a customer based on a specific set of demographics. These include: Age, Gender, Interests, Physical Location, among others. This helps to ensure that the customers intended to see the message are the ones receiving it. As a bonus, social media campaigns also encourage customer engagement,
• Internet Advertising: Similar to traditional print ads found in newspapers and magazines, internet advertising consists of banners, text ads, and paid search placements.

Online Advertising.

As previously mentioned, online advertising can take multiple forms. Much of what we automatically identify as marketing material in the online arena is that which looks like more traditional forms of print advertising, specifically banner and text advertisements. However, there are other forms of online advertising that are less overt.

• Videos: Companies often pay YouTube vloggers to feature their products in their videos. These are especially popular with children and young adults. For example: the toy industry is taking advantage of “unboxing” videos to encourage the purchase of mystery box purchases.
• Email: Email marketing is not a new concept in online advertising, but new tools are making it more popular than ever. Abandoned cart emails are actively pursuing customers that left items in their carts, as well as informing customers of when products they’ve viewed previously have gone on sale.
• Remarketing: Sites can “remarket” their product or their business to customers who have viewed their site in the past by opting for remarketing ad space, which will show their advertisements to customers who are actively viewing other websites.

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