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“EFFECTIVENESS OF INTERNET ADVERTISING”
A DISSERTATON SUBMITTED FOR PARTIAL FULFILMENT OF THE PGPMM DEGREE FROM ISB&M, NOIDA BY
PRAFULL KUMAR SINHA
ROLL NO. 06 POST GRADUATE PROGRAMME IN MEDIA MANAGEMENT (2008-2010)
Under the guidance and supervision Of
Prof. PRIYANKA AHUJA INTERNATIONAL SCHOOL OF BUSINESS & MEDIA NOIDA
I hereby declare that this dissertation titled a study
on“EFFECTIVENESS OF INTERNET ADVERTISING” is the result
of my own research work carried out under the guidance and supervision
of PROF. PRIYANKA AHUJA, of International School Of Business & Media.
I also declare that this dissertation has not been submitted earlier to any Institute/organization for the award of any degree or diploma.
Place: Noida Date: ( Prafull Kumar Sinha )
I hereby state that the Dissertation entitled “EFFECTIVENESS OF INTERNET ADVERTISING” is the project work carried out by Mr. Prafull Kumar Sinha under my guidance and supervision.
Place: Noida Date:
(Prof. Priyanka Ahuja)
I am happy to express my gratitude to my elder brother MR. PRAMOD KUMAR SINHA(Asst. Engineer, Honeywell International) for many valuable ideas imparted to me for my project.
I extend my sincere thanks to Professor PRIYANKA AHUJA International School Of Business & Media, Noida for providing me All the Information required and the guidance throughout the project without which this project would not have been possible.
I would also like to sincerely thank all my lecturers and my friends for their help in completing my project successfully.
Place: NOIDA Date: ( Prafull Kr Sinha )
Internet is fast emerging as a powerful medium of advertising in the new millennium. With the number of Internet users increasing manifold, the new medium is viewed as the advertiser's dream. The Internet is the fastest growing medium in the 2000’s with millions of users and an average estimated growth of 124% annually. Internet advertising is becoming a part of some companies marketing strategy- however it requires new strategies and thinking. The benefits of Internet advertising is its ability to cover people from different geographical area with varied tastes and preferences. This study is descriptive study and the sampling technique here
used is convenience sampling. The sample size is 100 selected from the population of Delhi NCR. The data is collected with the help of structured questionnaire, which includes open end and close-ended questions. Here the Hypothesis Testing is done with the help of the Chisquare test, this is to test the relation ship between the two attributes. Here the attributes are Features and Effectiveness of Online Advertisement. The next step in the research process is Analysis and
Interpretation of the Data collected from the respondents. This Analysis
and Interpretation is done with the help of Graphs and Tabulation, They are prepared with the help of MS Excel software.
With the help of Analysis and interpretation the findings are drawn
which includes whether consumers are aware of online advertisement, do
online advertisement effect their purchase behaviour.
With the critical Analysis and Interpretation the Suggestion’s are drawn on how to improve Online Advertisement in order to attract much of the viewership and to increase the purchasing efficiency and also to improve the
methods of online advertisement.
Finally a conclusion, where the briefing and the topic aspects is been
given with few suggestions, finally concludes the Project Report.
Marketing is more than just distributing goods from the manufacturer to
the final customer. It comprises all the stages from creation of the product and
the after- market, which follows the eventual sales, advertising plays a very important role in this process. The product or service itself, its meaning, packaging, pricing and distribution, are all reflected in advertising, which has been called the lifeblood of an Organisation. Without advertising, the products or services cannot flow to the distributor or sellers end on to the consumer of or user.
The need for advertising developed with the expansion of population and the flow of towns with their shops and large stores, mass production in factories, infrastructure to deliver goods & services and increasing level education. Advertising grew with the development of media, such as the coffeehouse, newspapers and the arrival of advertising agencies. Definition: - The institution of practitioners in advertising defines "advertising presents the most persuasive possible selling message to the right prospects for the product or service have the lowest possible cost".
What is Online Advertising On line advertising is similar to other forms of communication except for one critical difference that is Internet. Consumer behaviour follows a model radically different from traditional advertising media. This model can be explained as the progression 'Awareness - Interest - Desire - Action'. All these activities occur simultaneously in Internet advertising. Online advertising
entails, placing of electronic messages on a web site or email platform which achieves the following purposeGenerates awareness for the brand. Stimulates interest /preference for a product or service. Provides the means to contact the advertiser for information or to make a purchase.
History of Internet Advertising Advertising has faithfully served the print industry for 200 years, and was applied to the Internet with every expectation of success. Web advertising
began with Center and Siegegl’s in famous Green Card Lottery message on
the Usenet site in April 1994 and was followed in October by advertising placements for AT&T, MCI, Sprint, and Volvo on Hot-wired and finally the idea caught on. The Advertisement grew in sophistication, and today there are Static, rotating, scrolling, animated, flash and interstitial banner ads al which are designed to generate traffic, increase brand awareness and generate leads and sales. Internet companies were founded on advertising revenues, and for some years the companies prospered. Rate depended on: i. ii. iii. iv. The Type of advertisement. Where it appeared on the WebPages. How it integrated with content. How well it matched the advertiser’s target audience
Online advertising has to offer:
1. Scalability - Like television commercials, it doesn't cost very much to
increase the reach of an online ad campaign. There is no need to print
direct-mail pieces. 2. Hot demographics - The online community is more affluent, better educated, and younger and more willing to spend than the population at large. More and more people go online and the number is ever increasing. 3. Targeted messages - Unlike broadcast and print media, the Internet allows advertisers to target exactly who will see their ads, and in what context. Web publications serve every conceivable audience, from the massmarket obscure niche groups. Beyond that, the technology leads target customers by their computing platform (PCs or Macintoshes), Web browser (specific versions of Netscape Navigator or Microsoft Internet Explorer), domain type (. com, .edu, .gov, .mil, or .net) or individual domains (America Online, IBM, Prodigy). 4. Broad and flexible reach - While the Net cannot yet match television's market penetration, the size of the online audience is growing very quickly. More importantly, because you buy online ads by the impression, you can buy as much or as little of that audience as you desire. And that's true no matter how popular or specialized the site on which your ads run- as a rule, advertising costs depend on how many impressions you buy, not on the size of a site's audience.
5. Cost-effective - Partly because you pay only for exactly what you're getting, online advertising can be extremely competitive with other forms of advertising. If you buy 1,000 ad impressions, for example, you know that exactly 1,000 people will see your ad. 6. Detailed tracking and measurement - Compared to online advertising, traditional media advertising is like shooting in the dark. The Web allows advertisers to gather detailed information on who saw an ad, when, in what context, how many times and so on. Better still; you get this information instantly, not weeks later when it's too late to adjust your campaign. Of course, not every site currently provides this level of feedback, and not every advertiser knows what to do with it. Over a period of time, however, this is likely to become one of Web advertising's most important competitive advantages. 7. The ability to extend the transaction- Traditionally, advertising was a one-way mechanism. Apart from techniques like toll-free numbers pitched in infomercials and mail-in coupons in print publications, there was no way for customers to act on the information in the ad. On the Web, though, interested customers can click, learn more, and actually buy on the spot. There's simply nothing more powerful. 8. Good Creativity - Creative Design of Home page is very important for the surfer to get hooked on to the site. Within seconds the user should get an idea about the site and where to go within it. If the opportunity is missed the user many never return. Hence Content is King Content is the most important element of a site. Content rich Web pages lure users. The value on the web is information. The beauty and challenge of the Web is that it gives the user, the ability to personalize non-static information and choose exactly what she sees.
Unlike commercials or print ads, a Web ad banner is only the beginning of the process. While your banner may present only your branding message, interested prospects can always click on it to go directly to your Web site. Once there, they can access as much material on your company and products as you care to present. Graphics & the visual elements also play an important role in the users decision to stay or leave. Use of creative concepts, colors, movement & sound enhance the chances of the user staying longer on the site. In addition to all this the creators of web sites & on line advertising must take into consideration the factors like a) How fast does the site download, b) How easily navigable the site is, c) What is the domain name, d) What are the other publicity & advertising activities which building traffic to the site? If all such parameters are considered while selecting the web sites for online advertising, the impact of such advertising will definitely be felt. Online advertising is one medium, which helps to generate awareness about the brand being advertised, it can help in creating an image, it helps in educating
the audience and also builds interactivity & direct response. No other
traditional medium has the ability to give all of this. We are still at the experimental stage but many clients have already started allocating a budget towards online advertising & web is being considered not only as an advertising medium but also as a marketing tool. Hence online advertising, though slow to take off, will definitely be a medium of the future.
INTERNET INDUSTRY IN INDIA – A SNAP SHOT
ISP Licenses issued ISP Licenses surrendered Existing ISP Licensing Operational ISP’s Cities covered Cyber cafés/Public access kiosks Internet subscribers Operational international gateways Estimated Employment Provided Total investment made on ISP Estimated investment Equipments by ISP made
600 198 450 250 400 approx. 12200 approx. 4.2 million 65 approx. 1,150,000 Rs.6000 crore on Rs.2500 crore 100+ 100
Approval for setting up ISP ITSP licensing issued
Growth of Internet Subscriber Base in India
Month Year Aug-95 Mar-96 Mar-97 Mar-98 Mar-99 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05
Subscriber base (in millions) 0.01 0.05 0.09 0.14 0.28 0.9 3 3.2 4 4.2 7.2
7 6 5 4 3 2 1 0
Advantages of Online Advertisement
1. Target Marketing: - A major advantage of the web is the ability to target very specific groups of individuals with a minimum of waste coverage.
In the consumer market. Through personalization and other targeting
techniques, sites are becoming more tailored to meet once need and want.
2. Message Tailoring: - As a result of precise targeting, messages
can be designed to appeal to the specific needs and wants of the target audience. The interactive capability of the net makes it possible to carry on one-to-one marketing with increased success in both the business and the consumer markets. 3. Interactive Capabilities: - The interactive nature of the web leads to a degree of customer involvement. Site visitors are already interested enough in the company and/ or products to visit. 4. Information access: Perhaps the greatest advantage of the
Internet is its availability as an information source. Internet users can find a plethora of information about almost any topic of merely by conducting search through one of the search engines. Once they have visited a particular site, uses can garner a wealth of information regarding product specification, costs, purchase information, and so on. Links will direct them to even more information if it is desired. 5. Creativity: - Creatively design sites can enhance company's image leading to repeat visits, and positively position the company or organisation in the consumer's mind.
6. Exposure: -
For many seller companies with limited budget the
www (world wide web) enables them to gain exposure to potential customers that heretofore would have been impossible. For a function of the investment that would be required using traditional media, companies can gain national and even international exposure in a timely manner. 7. Speed: - For those requiring information on a company, its products, and /or its service offerings, the Internet is the quickest means of acquiring this information.
Disadvantages of Internet 1. Measurement problem: - One the greatest disadvantage of the net is the lack of reliability of the research numbers generate. A Quick review of forecasts, audience profiles, and other statistics offered by research providers will demonstrate a great deal of variance leading to a serious lack of validity and reliability. One of the industry's largest and most sited trade publication has written an expose of a heavily sited Internet research company, referring to the number it provides as "scary" feathers have stressed concern over the fact that most sites figures or not audited, which mainly to rampant cheating in the respect of the number reported. 2. Audience characteristic: - Due imparts to the accelerating growth of the net, audience characteristic change quickly. Numbers reported may be completed quickly and are often vary from one provided to the next.
3. Web Snarl: - At times, downloading information from the net takes a
long time. When there are a number of users, the time increasing and some Sites may be inaccessible due to too many visitors. For many users who
expect speed, this is a major disadvantage. 4. Costs: - The cost of doing business on the MAT continues to increase. While it is possible to establish a site in expensively, establishing a good side
and maintaining it is becoming more and more costly. As noted earlier , Levi’s
for the cost of maintaining a site is considered "worldClass " was prohibitive and one of the reason for abandoning its E-commerce efforts. 5. Limited production quality: - Although it is improving, net advertising does not offer the capability of many competitive media for a production standpoint. While the advent of advanced technologies and rich medium is narrowing the gap, the net still lags behind some areas. 6. Poor reach: - While the Internet numbers are growing in leaps and bounds, its six is still far behind that of television. As a result, interest companies have turned to traditional medium to achieve reach and awareness goals. In addition statistics says that only a small percentage of sites on the Internet are captured and that the top 50 sites listed account for 95 percent of the site visited.
7. Language: - If I am selling the goods through the media the buyer
prefer to get the information of the products or services with his own language but the advertiser has no option than to advertise in one single language which is a major disadvantage.
Given below is the comparison between Traditional and Web Advertising that will signify the importance of in today's world.
Bound by geography and location Advertisement costs are relatively high
The Web market is borderless Web Advertisement rates are relatively low
Lead times for implementation are substantial Limited interactivity exists, if at all
Lead times are virtually non-existent
Web marketing is based on high level of interactivity
Getting customer feedback is a painstakingly slow process Tracking the effectiveness of the Advertisement efforts is relatively difficult Marketing efforts are restricted by time and space Traditional marketing is static
Customer feedback is immediate
Effectiveness can be easily monitored
On the internet, Advertisement can be carried out 24 hours a day, 365 days a year Web advertising is dynamic and multimedia supported
Traditional advertising does not invoke immediate action
Web advertising requires the user to take immediate action - like clicking on the banner ad and thus going to your site to know more of company The user has a high attention level while he is on the net. Thus advertisements get noticed, remembered, and acted upon Here, while searching for travel sites, ads related to travel agencies are displayed
Advertisements are passively received
Advertisements are ubiquitous
Advertising does not target a focused audience
Advertisements are very focused. PC software can be displayed to PC users, while MAC users are not shown those ads
STATEMENT OF THE PROBLEM:
Is Online advertising effective in influencing the potential Buyers? Internet is one of the important mediums that own all kinds of features, which implies a great potential and powerful advertising medium in the future.
In addition, Internet has a better impact than traditional media in the features
like Format Variety, Affinity, and Preservability. Furthermore, Internet is the only medium so far which owns the feature of interactivity. That creates lots of new communication opportunities and possibilities that were unable to be achieved in the past because of the limitation of media technologies. In spite of these whether the online advertisement is effective in influencing the Potential Buyers in modern era.
OBJECTIVE OF THE STUDY: To ascertain the importance of online advertising as a promotional tool. To assess the effectiveness of online advertising on purchasing behaviour. To ascertain which type of online advertising is preferred by consumers.
LIMITATIONS OF THE STUDY:
1. The sample size is limited to 100 Internet users hence the result of the study cannot be taken as universal.
2. Findings of the survey are based on the assumption that the respondents have given correct information.
3. Since the respondents had to fill the questionnaire while busy with their hectic schedule, many people were reluctant to answer.
4. The study was conducted only in Delhi NCR and therefore, several other potential samples outside the city were neglected
REVIEW OF LITRATURE
Purpose: Review of literature refers to identifying already existing literature in the area of consumer behavior and marketing strategies, to find out what contribution has already been made so that it can serve a valuable base for further expanding the literature. the researcher while choosing the relevant literature of this study, has taken extreme care not to omit any literature pertaining to the effectiveness of Online advertisement The chapter revolves around the various relevant literatures screened to formulate the subject matter of the proposed study
To broaden the perspective about the research work To gain new and varied ideas To acquire more knowledge along with the direct experience To know the current issues with respect to the research area To spot the area which have not been covered
Methodology For the purpose of literature survey, a sample survey was adopted through the Structured Questionnaire, and information was gathered by those who had conducted study, The information was also searched in libraries in various reports, journals and internet sites were also scanned for the authenticities of the subject matter.
DEFINITION OF RESEARCH DESIGN: “It is a basic plan, which guides the data collection and analysis phases of the project. It is a frame work, which specifies the type of information to be collected, the resources of data collection procedure.”
A research design is a market plan or model for conduction a formal investigation. It is a specification of methods and procedures for acquiring the information needed for solving of any problem. Research design is the strategy for a study and the plan by which the strategy is to be carried out. It specifies the methods and procedures for the collection, measurement and analysis of data. Unfortunately, there is no simple classification of research designs that covers the variation found in practice. Sampling Method The sampling procedure used was cyber center, Office and colleges in Delhi NCR. convenience and judgment
sampling, as in questionnaire were administered at places like the residents,
Tools for data collection Interaction with Respondents was in the form of face-to-face interviews
and with the help of questionnaire. The questionnaire consisted of a set of questions, asked to the respondent for his/her response, the questionnaire was structured and non-disguised. It was done in a prearranged order and the object of the research was revealed to the respondent. The questionnaire
consisted of combination of open ended and close-ended question.
The primary data was generated through extensive use of a structured questionnaire, which had both the open end and close-ended questions. They were conducted in Delhi NCR and the data collected was used for the
purpose of analysis and interpretation. Secondary Data The second data was collected from the following sources: Books Magazines Website Journals (Details are given in the Literature Review at the Report) Sample Size A total of hundred respondents were interviewed during the survey, The input from these respondents which was collected in Delhi NCR formed the primary data for the study.
DATA PROCESSING Collected data was Analyzed and tabulated with the help of MS Excel and then they have been presented in the tables and Graphs in this report. These are the basis for drawing the appropriate conclusion for this project. Areas Covered BTM Layout Jayanagar 4 Block Koramangala
"Advertising is the ability to sense, interpret . . . to put the very heart throbs of a business into type, paper and ink." - Leo Burnett This statement quoted by Leo Burnett a few decades ago still holds ground as strongly as it did back then. Perhaps, with the new
medium called the Internet, we can substitute type, paper and ink with
site, page and link.
Internet is fast emerging as a powerful medium of advertising in the
new millennium. With the number of Internet users increasing manifold, the new medium is viewed as the advertiser's dream. The Internet is the fastest growing medium in the 2000’s with millions of users and an average estimated growth of 124% annually. It has great potential as an advertising medium. Online advertising offers the advantage of reaching and interacting with the target audience, irrespective of geographical barriers, in real time. Internet offers the flexibility of two-way communication, through feedback and interaction in real time. Online advertising presents the flexibility of moulding the campaign in response to the effectiveness in real time. Internet advertising is becoming a part of some companies marketing strategy- however it requires new strategies and thinking. The benefits of Internet advertising are its ability to cover all Promotional objectives from awareness to action by leveraging all Five Elements in the promotion mix. The Internet is also a highly
selective, cost effective media with greater measurability than any other media. Despite higher global reach Internet is not yet a local mainstream media. The Internet offer companies targeting well-educated, innovative, affluent males or students great potential for success as their segments are highly represented. Products with high information intensity and high buyer involvement are also appropriate for Internet promotion due to its large information capacity at low costs. Its distribution opportunity is especially suitable for the increasing channel of mail order products Low product fit or low audience fit companies can benefit by building a brand image to establish a user link or simply to learn about interactive media. Traditional advertising is consumed passively, yet on the Internet, users have to actively select an advert. This changes the way advertisers generate and retain customers. To persuade visitors to revisit and spend time on the website, advertisers must fulfill real customer needs on a continuous basis. This requires clear objectives and targeting. Informative quality content, advertisement with interesting entertainment or direct sales possibilities can add value to the customer.
The commercial industry is going through a rapid and radical development from the 2000's. Growth in disposable income, increased purchase information and alternative service and product offerings have expanded the customer’s bargaining power. Today’s advertiser must individualize, differentiate and customize to achieve advertising effectiveness. Targeting and building a relationship with customers on an individual basis is essential to be a successful advertiser in the 2000's.
The advertisers ideal is the ‘best possible reach within a welldefined audience (selectivity) with good possibilities of feedback and low costs’, while mass communication often forces the advertiser to accept high reach with a low selectively and no feedback opportunities in order to achieve a reasonable cost-effectiveness. The following criteria evaluate the effectiveness of the different media. They may be new concepts right now but will be most essential part of business world in near future. In fact, the future we are talking about is already here! And to survive in this cutthroat competition, sooner your organization enters cyber world, better - because in cyber world, it's always a one-way traffic, no looking back but just zooming ahead - at lightning speed!
Some of the important products offered by Web Advertising are listed below:
Web banner and panel ads
These are small rectangular graphic images that usually have a call to action (Like "Click here"). These banners are placed on other high traffic web sites like Yahoo, AOL etc so as to get an opportunity To See (OTS). They can be placed at the top or bottom of a page. Or anywhere you like them to be. Interstitial Another model of Web advertising - A short-lived, usually animated ad that pops up in the browser window for about 5-10 seconds while a page is downloading and then disappears. Inline Advertisements Inline ads provide a way for sponsors to generate leads or deliver rich brand building messages. Similar to print adversarial, inline ads integrate within site content, ensuring that a site visitor will see them for sure. Example: When you search using Metacrawler and get results, you will see such inline ad inbetween search results.
A pop-up window delivers the advertisement in a new window on top of the site content. When you visit Homepages on Tripod.com or Geocities.com (Advertisement supported free homepage sites), a secondary window automatically pops up continuously rotating advertisement of sponsors. Website sponsorships
Here, the entire Website is sponsored by an advertiser. These sites are usually content or service based and has a very high traffic because of their utility value. Classifieds Similar to classifieds in the real world, advertisers in Cyberspace can pay for their advertisements to be listed in online classifieds. From products and services to headhunting and matrimonial, any subject is covered.
Mailing list ads Mailing lists are e-mails sent to group of subscribers at regular intervals focusing on a particular topic. These e-mails can contains tips, hints or even jokes for free and are sustained by advertisements that are interspersed throughout the body of the e-mail. Ads are usually in 6-8 line of text instead of graphics and animations like banner ads.
Ads on Chat
Chat is a service available on the net for two or more people to converse with one another through their keyboards. Companies that offer these chat services for free, earn their revenue from advertisements that are displayed to everyone using these chat services. So, Web marketing and e-Business, both are new concept of doing the business and are inter-combined and are irreplaceable part of the cyber world. The Government initiatives
The Government has taken key initiatives over the past few years to create
an environment that is conducive to E-commerce activity. These include the
Announcement of the Information Technology Act 2002, which
put in place a cyber, law regime in the Country.
Announcement of the ISP policy for the entry of private Internet
service providers in November 1998 Permission to private ISP’s to set up international gateways. Permission of Internet accesses through cable TV infrastructure. Initiation of the setting up of the National Internet Backbone.
Announcement of the national long distance services beyond
the service area to the private area.
Complete non-monopolization of undersea fiber connectivity for
ISP on August 2000.
Free Right of way facility with no charge in cash or kind, to
access providers to lay optical fiber networks along National
Highways, State Highways and other roads.
Permission of Interconnectivity of Government and closed user
group (CUG) networks. The establishment of Public Teleinfo Centers (PTIC) having multimedia capabilities has been permitted. 100% FDI allowed in B2B e-commerce.
Measuring the Efficiency and Effectiveness of their Site.
What metrics should be consider when calculating the value of the Web site, or the return on investment? Let’s start with performance and availability. To say that slow pages are the kiss of death doesn’t take all the possibilities into account. When National Semiconductor asked its design engineer customers about the need for speed, site visitors said that anything more than eight seconds for a navigation page and 30 seconds for a data sheet was intolerable. The Advertiser should also consider the type and number of pages of their site that visitors look at during a single visit. Are more pages better? When visitors first arrive and are investigating the depth and breadth of the offerings, more pages is good. But if they are trying to solve a problem by slogging through the quagmire of your section of "frequently asked questions" pages that are intertwined like the roots of swamp trees, more is definitely not merrier.
Looking for patterns
visitor, then they can start to make assumptions about what people are
looking for and if they had trouble finding it. The trick is to look for patterns.
The researcher, the comparison shopper and the buyer all have their own traffic patterns, and it’s up to you to serve them according to their needs. If people are always clicking from the product page to the warranty page and back, it’s good stewardship to put the pertinent information on the product page and save them a click. Watch where they go and then do what you can
to make their way easier next time.
The final consideration is how often people visit your site a
combination of recency and frequency. It’s great that somebody came to your site 10 times in one day, but if that day was six months ago, it won’t do you any good. The most desirable recency-frequency tally is different for different types of sites. If your name is Yahoo! or AOL, then you want all the people, all the time. If your Web site is located at http://www.urnsandcaskets.com, you may feel a little people who come back day after day and stay a while. Identifying prospects Identifying what pattern is the best indication of imminent procurement which depends upon the Review of the site path taken by those who completed the purchase and watch for it again. Your site can make special offer when a potential customer visits a certain number of times or looks at particular pages. And then you can go one step further, called Geniality’s a
clever software that will determine the fewest attributes common to those who
performed the desired act (purchase, register, subscribe, etc.). It shifts
through mountains of data about your customers so you can more quickly recognize the ones who are statistically most likely to buy, and it can tell you which offer is the one most likely to make that sale. Taking all this into the consideration one can manage their site measurement of effectiveness.
Online Advertising Operational Definition Advertising Network - A group of websites, which share a common banner server Typically, a sales organization, which manages the commerce and reporting. An ad network has the ability to deliver unique combinations of
targeted audiences because they serve your banner or ad across multiple
sites. Ad view - An ad view, synonymous with ad impression, is a single ad that appears (usually in full view without scrolling) on a Web page when the page arrives at the viewer’s display. Ad views are what most Web sites sell or prefer to sell. A Web page may offer space for a number of ad views. In general, the term impression is more commonly used. Affiliate marketing - Affiliate marketing is the use by a Web site that sells products of other Web sites, called affiliates, to help market the products. Amazon.com, the bookseller, created the first large-scale affiliate program and hundreds of other companies have followed since. Bandwidth - The amount of information that can be transmitted over communications lines at one time. The higher the bandwidth, the faster the Web page loads. Limited bandwidth is the main reason for keeping pictures small. Just as it seems we will never have fast enough computers, it feels like we will never have enough bandwidth. The amount of research and development money being thrown at this problem should yield surprising results before long.
Click - According to ad industry recommended guidelines from FAST, a click is 'when a visitor interacts with an advertisement.' This does not apparently mean simple interacting with a rich media ad, but actually clicking on it so that the visitor is headed toward the advertiser’s destination. (It also does not mean that the visitor actually waits to fully arrive at the destination, but just that the visitor started going there). Click streams - The electronic path a user takes while navigating from site to site, and within site, from page to page. Click Through - The act of clicking on a banner or other ad, which takes the use through to the advertiser's Web site. Used as a counter point to impressions to judge the response-inducing power of the banner. Click Through Rate (CTR) - The response rate of an online advertisement, typically expressed as a percentage and calculated by taking the number of click through the ad received, dividing that number by the number of impressions and multiplying by 100 to obtain a percentage - Example - 20 clicks / 1,000 impressions = .02 x 100 = 2% CTR CPA - Cost Per Action. The price paid by an advertiser for each 'action' that a content site delivers. 'Action' may be a sale, a lead, a successful form fill-out, a download of a software program or an e-commerce sale of a product. Both the action, price and terms of a CPA purchase are mutually agreed upon by the advertiser and content site and such a purchase typically involves a back end tracking system provided by the advertiser that allows the content site to view clicks and actions every 24 hours if they choose to do so. CPC - Cost Per Click. The price paid by an advertiser to a content site. When buying on a Cost Per Click model, the advertiser and content site have mutually agreed that the content site will continue to display the advertiser’s ad creative until X number of clicks have been delivered - the amount purchased. As with other forms of online advertising, s dependent on content,
audience reached and targeted delivery - Untargeted being owner priced, targeted to an affluent audience being at the high end of the rate scale.
CPM - Cost Per Thousand (Roman Numeral) impressions. The price
paid by an advertiser for a content site displaying their banner 1,000 times.
CPS - Cost Per Sale. The price paid by an advertiser to a content site for each sale that results from a visitor who is referred from the content site to the advertiser’s site. This type of buying model is typically tracked with cookies, where the cookie is offered on the content site and read on the advertiser’s site at the success page after successful completion of one transaction/sale. Typical rates/bounties range between 5% and 25% of the
retail price of the product or service being sold. See also CPA above.
Cookies - Client-side text file that is used by Web servers to store information about the site visitor and visitor behavior. Information pertaining to a site can only be ready the side that wrote the information. Used to identify
repeat visitors and track visitor behavior. Effective Frequency - The number of times an ad should be shown to one person to realize the highest impact of the ad without wasting impressions on that individual. Frequency - The number of times a given person will see an ad in a given time period. Gross Exposures/Gross Impressions - The total number of times an ad is shown, including duplicate showings to the same person. Hits - Every time a file is sent by a server, be it text, graphic, video, and so on, it is recorded as a hit. Not a reliable gauge to compare different sites, as one page with five graphic elements will register six hits when viewed, while a page with no graphics will only register one hit. Impression - The Opportunity To See (OTS) a banner or other ad by a surfer. When a page that includes a banner is viewed, it is considered an impression. Inventory - The amount of available space for banners on a Web site that can be delivered in a given time period. Also known as the amount of
gross impressions per month (or clicks if the publishers is selling on a Cost Per Click rate model) available for sale to advertisers by a Web publisher.
Link - A hypertext connection between two documents, image maps,
graphics, and the like.
Page view - When a Web page is requested by somebody through a browser. Pageviews are often used to track the number of impressions a
Run-of-network - A run-of-network ad is one that is placed to run on all sites within a given network of sites. Ad sales firms such as Latitude90 handle run-of-network insertion orders in such a way as to optimize results for
the buyer consistent with higher priority ad commitments.
Run-of-site - A run-of-site ad is one that is placed to rotate on all
non-featured ad spaces on a site. CPM rates for run-of-site ads are usually less than for rates for specially-placed ads or sponsorships. Spam - Originally posting an ad to multiple newsgroups, now used to describe unsolicited email advertising. Named after a skit by Monty Python, spam is one marketing and advertising technique to avoid at all costs Unique visitor - A unique visitor is someone with a unique address who is entering a Web site for the first time that day (or some other specified period). Thus, a visitor that returns within the same day is not counted twice. A unique visitors count tells you how many different people there are in your audience during the time period, but not how much they used the site during the period. View - A view is, depending on what’s meant, either an ad view or a page view. Usually an ad view is what’s meant. There can be multiple ad views per page views. View counting should consider that a small percentage of users choose to turn the graphics off (not display the images) in their browser.
Visit - A visit is a Web user with a unique address entering a Web site at some page for the first time that day (or for the first time in a lesser time period). The number of visits is roughly equivalent to the number of different people that visit a site. This term is ambiguous unless the user defines it, since it could mean a user session or it could mean a unique visitor that day.
It is usually considered as the principal instrument in the research, it may be defined as a proposition or a set of propositions set forth as an explanation for the occurrence of some specified group of phenomenon either asserted merely as a provisional conjecture to guide some investigation or accepted as highly probable in the light of established facts.
Testing of hypothesis Techniques of hypothesis testing are used if we have an idea about the value of the parameter in question. The modern theory of probability plays a vital role in decision making and the branch of statistics with helps in arriving at the criteria for such decision is known as testing of hypothesis.
Chi-square Test Chi-square test statistically determines significance in the analysis of frequency distribution. The logic involved in the chi-square test is that of comparing the observed frequencies and the expected frequencies. It is called a non-parametric test because it is based wholly on sample observations and does not require any value corresponding to a population parameter it is defined as Chi-square test
Null Hypothesis: H0 It asserts that there is a significant influence of features of Online Advertisement on the effectiveness of online Advertisement.
Alternative Hypothesis: H1 There is no significant influence of features of online Advertisement on the Effectiveness of online Advertisement.
The critical probability in choosing between the null and alternative
hypothesis. The exact level of significance is largely determined by how much risk one variable is willing to take and its effect on the other variable.
Degree of Freedom: It refers to the number of observations that can be varied without changing the constraints or assumptions associated with a numerical system.
TABLE – 6.1
Yahoo Rediff Creativity Attractiveness Information Accessibility Total 16 13 24 19 72 3 2 5 2 12 Sify 1 4 3 2 10 MSN 3 1 2 0 6 Total 23 20 34 23 100
O 16.00 3.00
3.00 13.00 2.00 4.00
E (O-E) (O-E)2 (O-E)2/E 16.56 -0.56 0.31 0.02 2.76 0.24 0.06 0.02 2.30 -1.30 1.69 0.73 1.38 1.62 2.62 1.90 14.40 -1.40 1.96 0.14 2.40 -0.40 0.16 0.07 2.00 2.00 4.00 2.00 1.20 -0.20 0.04 0.03 24.48 -0.48 0.23 0.01 4.08 0.92 0.85 0.21 3.40 -0.40 0.16 0.05 2.04 -0.04 0.00 0.00 16.56 2.44 5.95 0.36 2.76 -0.76 0.58 0.21 2.30 -0.30 0.09 0.04 1.38 -1.38 1.90 1.38 Total 7.17
From the above calculated table it is clear that the Calculated value is 7.17 and the table value at 5% significant level is accept the Null Hypothesis 16.92 so this states that
Table showing Gender Classification Gender Male Female Total No Of Respondent 67 33 100 Percentage 67% 33% 100%
Analysis and Interpretation As observed from the given table and Graph the sample constitutes of 67% male respondents and 33% female respondents. There is a quite a lot of difference between the number of males and females in the sample. In near future the percentage will definitely increase with the increase in the Female E-awareness.
Number of Respondent
33% Male Female 67%
Table showing Age Classification
AGE Group Below 20 20-25 35
No. Of Respondent 20
Percentage 20% 35% 35%
Above 30 TOTAL
Analysis and interpretation As it can be observed from the given table, the major portion of sample
(35 %) is constituted of people in the age group between 20-25 years, and also a portion of sample i.e. (35 %) of respondent are in the age group between 25-30 years, (20%) of the respondent are in the age group below 20 years, and the rest (10%) of the respondent are in the age group of above 30
This states that the advertisement should target more of the Young netizens to increase the awareness of their products or services which in turn
increases their sales revenue.
Age Group Of Respondent
Below 20 20-25 25-30 Above 30
Table showing the Occupation of Respondent OCCUPATION No. Of Respondent 40 25 25 10 100 Percentage
Student Employee Self Employed Others Total
40% 25% 25% 10% 100%
Analysis and interpretation As seen from the above table and chart, majority of the respondent (40
percent) are college students, (25 percent) are engaged in business. (25 percent) are employees of various sectors like IT Professionals Charted Accountants, Lawyers, College Professor. (10 percent) are others constituting
housewives & children.
This shows that mainly college students are interested in browsing. So it is preferable for the Advertiser to concentrate mainly on the College
Students to promote their Ads and influence them in increasing their sales Activities.
Occupation of the Respondent
10% 25% 40% Student Employee Self Employed Others
Table showing the Frequency and Duration spent in Surfing No of Respondents Weakly Twice Weekly once Fortnightly Monthly 47 30 18 5 42% 27% 18% 20% 29% 40% 39% 40% 18% 23% 27% 20% 11% 10% 16% 20% Less than 1 hr 1hr - 2 hr 2 hr – 3 hr more than 3 hr
Analysis and interpretation From the above table and graph it is clear that 47 respondents browse
weekly twice, 42 percent spent less than one hour. 29 percent of the respondent spend one hour to two hour. 18 percent of the respondent spent two hour to three hour and 11 percent of the respondent spent more than
three hours in browsing.
30 respondents who browse weekly once 27 percent spent less than one hour 40 percent of the respondents spend one hour to two hour, 23 percent of the respondents spent Two hour to three hour and 10 percent. the
respondent spent more than three hour in Browsing.
18 respondents who browse fortnightly, 80 percent has spent less than one hour 39 percent of the respondent spend one hour to two hour, 27
percent of the respondent spent two hour to three hour, and 16 percent of the respondent spent more than three hour.
5 respondents who browse monthly 20 percent spent less than one hour 40 percent of the respondent spend one hour to two hour 20 percent. the respondent spent two hour to three hour, and feed the present of the
respondent spent more than three hour.
Frequency and Duration Spent in Browsing
45% 40% 35% 30%
25% 20% 15% 10% 5% 0%
Weekly Twice Weekly Once Fortnightly Nonthly
Less 1hr - 2 2 hr – 3 more than 1 hr hr than 3 hr hr
Percentage of Respondents checking Online Advertisement Particulars Yes No Total Checking Online Ads 55% 45% 100%
Analysis and Interpretation From the Data collected, all the Respondents are aware of online Advertisement while only 55% of the respondent check the Advertisement displayed on the Web and the rest of 45% do not check many of the Advertisement displayed on the Net. So if the Ads are such that with creativity and informative even those 45% can also be converted and included in the 55% list.
Percentage of Respondent checking online Advertisment 70% 60% 50% 40% 30% 20% 10% 0% Yes No
Various Aspects for Surfing
Reasons for Checking Advertisement Purchasing Entertainment 35% Financial loans Academic Jobs 20%
Analysis and Interpretation
As observed from the Above table and Graph it clearly indicates that
main aspects of surfing the web is for Entertainment purpose which comes to 35%, followed by Purchasing i.e. about 22%, jobs related sites which is nearly 20%, Only then comes of the respondent. Finally Academic and jobs with
9%and financial loans 14% respectively.
This clearly indicates that even if the Respondents are aware of online Advertisements they view mainly for entertainment than for Purchasing of the
Products or Services.
Ads related to various products
Advertisement Purchasing Entertainment Financial loans Academic Jobs
TABLE – 6.9
Respondents Ranking their preferred Site
Yahoo Rediff Sify MSN Indiatimes Total
Rank 1 72% 12% 10% 6% 0% 100%
Rank 2 6% 36% 27% 18% 13% 100%
Rank 3 3% 26% 30% 22% 19% 100%
Rank 4 0% 9% 16% 27% 48% 100%
Rank 5 0% 5% 12% 29% 54% 100%
Analysis and Interpretation From this statement and Graph it is clear that most of the Respondent i.e. (72%) of them has stated that yahoo is the best in providing all sorts of information and in providing Advertisements together with services on Net, followed by Rediff with (12%) and Sify with (10%) Then comes MSN with (6%) and Finally most of the Respondent has rated Indiatimes in last category. This analysis provides the information that most of the viewers prefer yahoo so it is preferable for the advertiser to place his ads in this site, If not the advertiser could go for Rediff which is Ranked 2 , and other sites are less preferred compared to these top two sites.
Respondents Rank of their preferred sites
70% 60% 50% 40% 30% 20% 10% Rank 1 Rank 2 Rank 3 Rank 4 Rank 5
Ya ho o
No of Respondents purchased Online Particular YES NO No Of Respondent 47 53 Percentage 47% 53%
Analysis and Interpretation The given table shows that only 43% of the Respondents have purchased online and the rest of the 57% have not purchased from the Net. It clearly states that the percentage of respondents who are aware of Net advertisement are almost near to that of the persons or respondents who have purchased online and within few more years it definitely would increase.
Number of Respondents who Purchased Online
Various products and services purchased online Particulars CD's & Cassettes Travel Booking Book's & Magazine Mobile Phones Software Computer peripherals Percentage 28%
21% 18% 14% 12% 7%
Analysis and Interpretation: The table shows that 28% of the respondents purchased CDs and cassettes online followed by travel booking with 21% and books and magazines which comes to 18% and then followed by mobile phones which is around 14 % followed by software and computer peripherals with 12% and 7% respectively. From the Above table it clearly shows that product and services purchased online are not costly.
Chart showing diffrent products & services purchased online
7% 12% 28% CD's & Cassetes Travel Booking Book's & Magazin Mobile Phones Softwares Computers
No. Of Preference and non Preference to purchase Online
Gender No of Respondent Not purchased online Prefer to Purchase Online Do not Prefer to Purchase online
Male 23 18
Analysis and Interpretation: The above table indicates that the number of respondent who has not
purchased through Internet are 57 out of which 23 are male. 78% of male prefer to purchase on line and 22 % of them do not prefer to purchase online. Continued by 34 female who has not purchased through the Internet. 76 % of the female preferred to purchase online and 24 % of the female do not prefer
to purchase from Internet.
The above analysis clearly shows that even though the number of respondents who has not purchased through the Internet are more, but would prefer to do so in the future, there are very few percentage of people who do not prefer to purchase online. so there seems to be an opportunity that has to
Chart showing No of Respondent prefer & donot prefer to purchase online
25 20 15 10
23 MALE 18 FEMALE
No of Respondent
Prefer to Purchase
Donot Prefer to Purchase
Reasons for non- preference to purchase Online
Privacy High Risk Registration Process Total
No of respondent 4 3
Percentage 31% 23% 15% 31% 100%
Analysis and Interpretation: The above table states the reason why numbers of people do not prefer to purchase through Internet. Which clearly shows that Safety is the main reason with 31%, followed by privacy with 23%, high risk and registration process with 15% and 31% respectively. From this it is clear that for online advertisement to become effective the advertiser has to reduce the registration process and increase the safety of the site there by build the confidence of their loyal customer, which increases the confidence level of the customer and make them purchase on internet.
Chart representing reasons for non purchase on internet
Registration Process 15%
Respondents Responding to online Advertisement
Particulars Yes No Sometimes
Analysis and Interpretation: From the above table it shows that only 36% of the respondents respond to online advertisement while 48% of them do not do so, only 16% respond sometimes. From this analysis the advertiser even though has less of response or feedback, he can take heart from the fact that 36% of them respond mostly while 16% respond sometimes this gives a target customer of 52% who show some positive signs
Respondence who Respond to the Online Ads question
16% 36% Yes No Sometimes 48%
TABLE – 6.15
Types of Ads respondents like to see Flash ads 30% Pop – ups 26% Questionnaires 10% Ads that run through 34%
Analysis and Interpretation: From the above table we understand that most of the people do not like the questionnaire form of ads (10%), while most of them preferred ads that run through on the top or bottom of the site while they are browsing, flash ads (30%) were the next preferred followed by pop-ups (26%).
35 30 25 20 15
5 questionnaire Ads that run through flash ad pop ups 0
flash ad pop ups questionnaire Ads that run through
FINDINGS OF THE STUDY
This study was conducted with a view to know that whether Online Advertising is effective. It has been observed that there are many factors, which effect this statement of Problem like Occupation, Age, life style social factor, For this purpose a structured questionnaire had been designed and analysed. After analyzing the data the following factors have been found out as major causes for the Online Ads Effectiveness The percentage of Male browsing the net are more than that of Female
Most of the internet users are in the age group of 20-30years with 35% which indicates that youngsters are using more net than that of the other community. Most of the student community use internet more than that of the other occupation as it is a means of entertainment so the advertiser should target the student community to influence their effectiveness Compared to that of the students self-employed business people browse more for purchasing products and students browse more for information and entertainment.
Almost 60% of the people who browse the Net check t online Ads while browsing only if they are interesting and informative
The study clearly stated that most of the internet users surf for entertainment and information rather than for purchasing on the Net
Internet with such high penetration still 53% of the respondents have not purchased any products or services online
Most of the respondents who have purchased online have not involved themselves in purchasing frequently and even the cost of the purchase is also too low where it do not involve much risk.
Go International with multiple language: Offer your web site in multiple languages. Like many sites come in
Dutch, Spanish, Slovene, French, Czech, German, Russian, and Italian.
Translation service on websites is also good which will help retain customers. Use of multi-media
As we have seen the potential for banner and Internet ads, informative
and creative ads are also preferred therefore hot new designs and innovative sales concepts should be developed. Obviously, the biggest bridge to cross is download time. If a little radio-like audio message that plays from your site upon a click of mouse or a T.V-mini commercial that plays at your banner on click of a mouse, it will be much more effective and interesting. Use Banner Ads that Give Viewers Chance to Interact with Banners Interactive banner designs can be used wherein the client can print out a product sheet from the banner itself, order a product through a secured order form on the banner itself, click which button he prefer and be directed to a specialized product marketing page.
Free offers The word free is just as effective in advertising online as it is offline. By sponsoring a freebie, a simple name submission drawing can also get viewers to go through ads in the process they become aware of the advertisement.
Sponsor a contest People love to win ANYTHING! Offer your product or service as a
prize. When a winner is selected, their name web address and a link to the
site can be published. Adding a reciprocal link is a professional way to say thank you and is of no cost to the advertiser. Web site testimonials Build trust or confidence in your online business by using testimonials.
A direct quote with the permission of the customer is a nice touch. Listing a
name and e-mail address it acts as a reference that is easy and quick. Keep the testimonials to one or two sentences and keep it simple. Target Audience Keep your target audience in mind. Business people aren't going to have the time or inclination to participate in game-type ads. On the other hand, teenagers love them. If your target group is younger people, games might be the thing for you. Design your ad to meet the preferences of your target customer. Include statistics When you make a sales claim, back it up with information, including statistics. You might say, "Our saucepans have a non-stick coating that's guaranteed for life. In actual, in-home testing, food did not stick to our saucepans 98.3% of the time." Provide content on your site As you surf the Web take note of information that supports your advertising claims. Surveys, research, reports, testimonials, etc. can all provide valuable information that could move a customer from the point-ofdecision to the point- of-purchase.
Offer a free report Give away information free with a purchase or subscription to your
newsletter. Since information is what surfers are looking to receive, it will work
as a big incentive. Few tips that will help in making a connection with the clients: 1. Use “you or your” instead of “we or us.”
2. Include personal examples rather than general examples. If writing to
hair stylists, include examples specific to them.
3. Know your target audience very well. This is the only way you will be
able to communicate with them on a personal level.
4. Write using the language of your target audience. Include industry
buzzwords and jargon when appropriate.
Customers will feel an attraction to copy that reaches out specifically to them. In a world where most advertisers are speaking to the masses, be sure to give yours an advantage by speaking personally to those you wish to do
Is Advertising on the Internet a viable option? I have looked at this question in terms of effectiveness, profitability, and marketing methods.
Internet advertising offers increased awareness of companies, an easy
method to distribute information, advanced methods of targeting consumers, an immediate and direct line to the customers, and reduced costs in performing these tasks. The only negative aspect is that consumers have to conquer their fears of the Internet - the fear that ordering through an on-line advertisement will get lost in the void of cyberspace. Fears always come with new technology, but it does not take long for people to adjust. As people get more accustomed to finding their product information on the Web, more and more readers will actively seek out Internet advertising sites. Final y Donot try to do "anything and everything" to get the buyer's attention. Everyone who comes to site isn't going to buy. The harder you try to get their attention and force them to read your ads, the harder they wil try to escape.
Questionnaire Effectiveness of Online Advertisement
NAME Gender 1. AGE GROUP Below 20 25-30 2. Occupation Student Employee 3. Do you Own a computer Yes 4. Do you Surf the net Yes : : :
: Male Female
20-25 Above 30
Self Employed Others
5. How many hours do you Spend on Browsing < 1hr 1hr >1hr
6. Are you aware of Online Advertisement Yes No
7. Do you check the online Ads while browsing No Yes
8. Ads relating to which product are you interested in Purchasing Financial loans Jobs 9. Which Sites consist of more ads Yahoo Indiatimes msn 12. Have you purchased Online Yes No Rediff Sify Others Entertainment Academic Others
14. If yes, what have you purchased (go to Q 17)
15. If no, would you prefer to purchase Online Yes No
16. If no, why don’t you prefer to purchase online
17. How often do you purchase online. 18. What kind of Ads do you like to see
One that pop ups
One which has a questionnaire
One that flashes
One that runs on the top/bottom
19. Have you responded/participated in any Ads Yes No
20. Does the Online Ads interfere in your work while browsing Yes No
21. Have you made any purchases after seeing these Ads Yes No
22. How you think the online Ads can be improved
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