The Analysis and Techniques of Online Advertising in Cosmetics Industry
Date Issued
2015
Date
2015
Author(s)
Pan, Cheng-How
Abstract
Found in 2010, Zephyrine has reached a milestone of 100 millions annual revenue in year 2014. The secret behind its high business growth is through the well-managed of CPC (cost per click) online advertising and the recruiting of influential bloggers. With the promising future ahead, however, Zephyrine is facing the transition of Internet industry that could possibly turn its legacy into ash.Therefore, the company is seeking a way to overcome this challenge by adjusting the strategy, analyzing the cost-and-benefit, selecting suitable advertising channels, and maximizing its profit. This study attempts to discuss the CPC advertising, among all the other online advertising, through data analysis: 1. To identify the information needs and find out the potential reasons that affect the cost of the ad, such as the quality of the materials and the placement of the advertisement. 2. To collect the company’s advertising data for the past 5 years. 3. To dig out the underlying cause that impacts the performance of each advertisement. 4. To verify the above hypothesis in order to determine the best practice of online advertising. 5. To prove the feasibility and maximum the profit by constructing regression model, to which the data is taken from real company cases. Based on the result, the company should first make sure the goal of the advertising. Sales-oriented advertisement should be placed in the name of bloggers. The reason is because it presents more genuine and objective ad that can increase customers click rate. Also, PPA-link is suggested as it has the effect of gathering target customer’s clicks and directing to shopping site. On the other,branding-oriented advertisement is recommended to be placed directly in the name of the brand. PPA and PPA video are suggested due to presenting larger picture and being able to “like”, “comment”, and “share” thus creating WOM and spreading the brand.
Subjects
CPC advertising
data analysis
optimal solution
Type
thesis