A RESEARCH REPORT ON

“EFFECTIVENESS OF INTERNET ADVERTISING” BANGALORE
A DISSERTATON SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF MBA DEGREE OF BANGALORE UNIVERSITY BY

LOKESH.K Reg.No-05XQCM6041

Under the guidance and supervision Of Prof.B.K.Ramaswamy M P Birla Institute of Management Bangalore

M P BIRLA INSTITUTE OF MANAGEMENT (ASSOCIATE BHARATIYA VIDYA BHAVAN) #43, Race Course Road, BANGALORE. 560001 2007

M.P.Birla Institute of Management

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DECLARATION

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. B.K. RAMASWAMY, of M P Birla Institute of Management, Bangalore

I also declare that this dissertation has not been submitted earlier to any Institute/organization for the award of any degree or diploma.

Place: Bangalore Date: (LOKESH.K)

M.P.Birla Institute of Management

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PRINCIPAL’S CERTIFICATE

This is to certify that this dissertation entitled “EFFECTIVENESS OF INTERNET ADVERTISING” is the result of research work carried out by Mr. LOKESH under the guidance and supervision of PROF. B.K.RAMASWAMY, of M.P. Birla Institute of Management, Bangalore.

Place: Bangalore Date:

(Dr.Nagesh S Malavalli) Principal

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P. Place: Bangalore Date: (prof.Birla Institute of Management 4 .B.k under my guidance and supervision.GUIDE’S CERTIFICATE I hereby state that the Dissertation entitled “EFFECTIVENESS OF INTERNET ADVERTISING” is the project work carried out by Mr.K. Ramaswamy) M. Lokesh.

Place: Bangalore Date: (Lokesh. S. Malavalli. N. P.ACKNOWLEDGEMENT I am happy to express my gratitude to Dr. Bangalore for providing me all the Information required and the guidance throughout the project without which this project would not have been possible. I extend my sincere thanks to Professor B.P.P.K. I would also like to sincerely thank all my lecturers and my friends for their help in completing my project successfully. Ramaswamy M. Birla Institute of Management) and many valuable ideas imparted to me for my project. (Principal.k) M.Birla Institute of Management 5 . M.Birla Institute of Management.

01-02 03-14 Executive Summary Introduction Theoretical background 3 Design of the study Statement of Problem Objective of the Study Limitations of the Study Review of literature 15-17 4 Methodology Research Methodology Sampling Technique Sample Description Sample Size Instrumentation Technique Data Collection Tools Used Other Software Used for Data Analysis 18-20 5 6 7 8 Industry and Product profile Analysis of Data and Interpretation Hypothesis Tables and Analysis of data of data 21-33 34-58 Summary of Findings and Conclusion Findings Recommendations Conclusion 59-64 Annexure Bibliography M.Contents CHAPTER 1 2 Chapter Name Page No.P.Birla Institute of Management 6 .

P.3 6.12 6.1 6.10 6.7 6.11 6.No 35 36 37 38 40 42 44 45 47 49 50 52 54 56 58 6.14 6. No Particulars Page.15 Table showing the features of the sites for hypothesis testing Table showing the hypothesis testing Table Showing the Gender Classification Table Showing the Age Classification Table Showing the Occupation of respondent Table Showing the frequency and Duration spent in Surfing Table Showing the Percentage of Respondents Checking Online Advertisement Table Showing the Ads related to products Table Showing Respondents Ranking of their preferred website Table Showing No of Respondent purchased Online Table Showing Percentage of various products & services purchased on Internet Table Showing No of Respondents prefer and do not prefer to purchase online Table Showing Reasons for Non preference to purchase online Table Showing Percentage of Respondents respond to online Advertisement Table showing the type of Ads respondents would like to see M.4 6.2 6.Birla Institute of Management 7 .5 6.8 6.9 6.13 6.6 6.LIST OF TABLES Sl.

10 6.12 6.1 6.No 37 39 41 43 44 46 48 49 51 53 55 57 58 M.4 6.LIST OF GRAPHS Sl.8 6.P. No Particulars 6.2 6.5 6.6 6.Birla Institute of Management 8 .11 6.7 6.3 6.9 6.13 Graph Showing the Gender Classification Graph Showing the Age Classification Graph Showing the Occupation of respondent Graph Showing the frequency and Duration spent in Surfing Graph Showing the Respondents Checking Online Advertisement Graph showing the Ads related to products Graph Showing Respondents Ranking of their preferred website Graph Showing No of Respondent purchased Online Graph Showing Percentage of various products & services purchased on Internet Graph Showing No of Respondents who prefer and do not prefer to purchase online Graph Showing the Reasons for Non preference to purchase online Graph Showing the Percentage of Respondents respond to online Advertisement Graph showing the type of Ads respondents would like to see Page.

This Analysis and Interpretation is done with the help of Graphs and Tabulation. The Internet is the fastest growing medium in the 2000’s with millions of users and an average estimated growth of 124% annually. The next step in the research process is Analysis and Interpretation of the Data collected from the respondents.P.however it requires new strategies and thinking. which includes open end and close-ended questions. This study is descriptive study and the sampling technique here used is convenience sampling. M. They are prepared with the help of MS Excel software. The data is collected with the help of structured questionnaire.Birla Institute of Management 9 . Here the Hypothesis Testing is done with the help of the Chisquare test. the new medium is viewed as the advertiser's dream. The sample size is 100 selected from the population of Bangalore City. this is to test the relation ship between the two attributes. Internet advertising is becoming a part of some companies marketing strategy.EXECUTIVE SUMMARY Internet is fast emerging as a powerful medium of advertising in the new millennium. With the number of Internet users increasing manifold. Here the attributes are Features and Effectiveness of Online Advertisement. The benefits of Internet advertising is its ability to cover people from different geographical area with varied tastes and preferences.

P. do online advertisement effect their purchase behaviour. M. finally concludes the Project Report.Birla Institute of Management 10 . where the briefing and the topic aspects is been given with few suggestions.With the help of Analysis and interpretation the findings are drawn which includes whether consumers are aware of online advertisement. Finally a conclusion. 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.

The need for advertising developed with the expansion of population and the flow of towns with their shops and large stores.Birla Institute of Management 11 . are all reflected in advertising. the products or services cannot flow to the distributor or sellers end on to the consumer of or user. pricing and distribution. such as the coffeehouse.P. All these activities occur simultaneously in Internet advertising. its meaning. which follows the eventual sales. advertising plays a very important role in this process.Action'. It comprises all the stages from creation of the product and the after.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". mass production in factories. Definition: . Online advertising M.Interest . The product or service itself.THEORETICAL BACKGROUND Marketing is more than just distributing goods from the manufacturer to the final customer. infrastructure to deliver goods & services and increasing level education. Advertising grew with the development of media. packaging. This model can be explained as the progression 'Awareness . newspapers and the arrival of advertising agencies.market.Desire . Without advertising. which has been called the lifeblood of an Organisation. Consumer behaviour follows a model radically different from traditional advertising media. What is Online Advertising On line advertising is similar to other forms of communication except for one critical difference that is Internet.

Stimulates interest /preference for a product or service. The Type of advertisement. iv. How well it matched the advertiser’s target audience M.Birla Institute of Management 12 .P. flash and interstitial banner ads all which are designed to generate traffic. Sprint. The Advertisement grew in sophistication. increase brand awareness and generate leads and sales. ii.entails. MCI. Rate depended on: i. 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. and Volvo on Hot-wired and finally the idea caught on. and for some years the companies prospered. rotating. How it integrated with content. 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. placing of electronic messages on a web site or email platform which achieves the following purpose- Generates awareness for the brand. iii. scrolling. and today there are Static. Where it appeared on the WebPages. animated. Provides the means to contact the advertiser for information or to make a purchase. Internet companies were founded on advertising revenues.

Broad and flexible reach .net) or individual domains (America Online. Scalability . it doesn't cost very much to increase the reach of an online ad campaign. from the massmarket obscure niche groups.Birla Institute of Management 13 .While the Net cannot yet match television's market penetration. because you buy online ads by the impression. IBM. There is no need to print additional copies of a magazine. Targeted messages . or to create and mail direct-mail pieces.edu.P. or . More importantly. 3. and in what context. Prodigy).gov.mil. the Internet allows advertisers to target exactly who will see their ads. the size of the online audience is growing very quickly. Web publications serve every conceivable audience. . Hot demographics . domain type (. advertising costs depend on how many impressions you buy. More and more people go online and the number is ever increasing.Like television commercials. not on the size of a site's audience. .Unlike broadcast and print media. you can buy as much or as little of that audience as you desire. 2. M. Web browser (specific versions of Netscape Navigator or Microsoft Internet Explorer). better educated. com. And that's true no matter how popular or specialized the site on which your ads run. the technology leads target customers by their computing platform (PCs or Macintoshes).The online community is more affluent. and younger and more willing to spend than the population at large. Beyond that.Online advertising has to offer: 1. 4. .as a rule.

7. traditional media advertising is like shooting in the dark. learn more. for example. Of course. Detailed tracking and measurement . how many times and so on. Within seconds the user should get an idea about the site and where to go within it. 6. Better still.P. 8. The value on the web is information. in what context.Traditionally. The ability to extend the transaction. If the opportunity is missed the user many never return. The Web allows advertisers to gather detailed information on who saw an ad. The beauty and challenge of the Web is that it gives the user. interested customers can click. online advertising can be extremely competitive with other forms of advertising. Over a period of time. you know that exactly 1.Birla Institute of Management 14 . Cost-effective . when.5. not weeks later when it's too late to adjust your campaign.000 people will see your ad.Creative Design of Home page is very important for the surfer to get hooked on to the site. however. Apart from techniques like toll-free numbers pitched in infomercials and mail-in coupons in print publications. though. Hence Content is King Content is the most important element of a site. the ability to personalize non-static information and choose exactly what she sees. On the Web.000 ad impressions. If you buy 1.Compared to online advertising. There's simply nothing more powerful. this is likely to become one of Web advertising's most important competitive advantages. M. advertising was a one-way mechanism. Content rich Web pages lure users. Good Creativity . you get this information instantly.Partly because you pay only for exactly what you're getting. and actually buy on the spot. there was no way for customers to act on the information in the ad. not every site currently provides this level of feedback. and not every advertiser knows what to do with it.

they can access as much material on your company and products as you care to present. it can help in creating an image. Use of creative concepts. Graphics & the visual elements also play an important role in the users decision to stay or leave. Online advertising is one medium. 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. though slow to take off. M. which helps to generate awareness about the brand being advertised. 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. 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.Unlike commercials or print ads. Hence online advertising. the impact of such advertising will definitely be felt. c) What is the domain name. Once there. movement & sound enhance the chances of the user staying longer on the site. it helps in educating the audience and also builds interactivity & direct response. interested prospects can always click on it to go directly to your Web site.P. colors. will definitely be a medium of the future. While your banner may present only your branding message.Birla Institute of Management 15 . a Web ad banner is only the beginning of the process. b) How easily navigable the site is. No other traditional medium has the ability to give all of this.

4.2 million 65 approx.Birla Institute of Management 16 .150. 12200 approx. 1.000 Rs.2500 crore 100+ 100 M.P.6000 crore on Rs.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 Approval for setting up ISP ITSP licensing issued made 600 198 450 250 400 approx.

Birla Institute of Management 17 .14 0.28 0.P.2 4 4.05 0.01 0.2 8 7 6 5 4 3 2 1 0 2000 2001 2002 2003 2004 2005 M.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) 0.2 7.9 3 3.09 0.

and positively position the company or organisation in the consumer's mind. 3. Interactive Capabilities: .Advantages of Online Advertisement 1. M. and so on. 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. sites are becoming more tailored to meet once need and want. Once they have visited a particular site. 5.Creatively design sites can enhance company's image leading to repeat visits. messages can be designed to appeal to the specific needs and wants of the target audience.P. Target Marketing: .The interactive nature of the web leads to a degree of customer involvement.As a result of precise targeting.Perhaps the greatest advantage of the Internet is its availability as an information source. 4.Birla Institute of Management 18 . costs. Links will direct them to even more information if it is desired. 2. In the consumer market. purchase information. Site visitors are already interested enough in the company and/ or products to visit. Creativity: .A major advantage of the web is the ability to target very specific groups of individuals with a minimum of waste coverage. Information access: . Internet users can find a plethora of information about almost any topic of merely by conducting search through one of the search engines. Message Tailoring: . Through personalization and other targeting techniques. uses can garner a wealth of information regarding product specification.

Numbers reported may be completed quickly and are often vary from one provided to the next. audience profiles.Birla Institute of Management 19 . M.Due imparts to the accelerating growth of the net. Audience characteristic: . audience characteristic change quickly. Disadvantages of Internet 1. Measurement problem: . its products.P. For a function of the investment that would be required using traditional media. One of the industry's largest and most sited trade publication has written an expose of a heavily sited Internet research company.For those requiring information on a company. Exposure: . the Internet is the quickest means of acquiring this information. 7. and other statistics offered by research providers will demonstrate a great deal of variance leading to a serious lack of validity and reliability.One the greatest disadvantage of the net is the lack of reliability of the research numbers generate. Speed: . A Quick review of forecasts. which mainly to rampant cheating in the respect of the number reported. 2. referring to the number it provides as "scary" feathers have stressed concern over the fact that most sites figures or not audited. companies can gain national and even international exposure in a timely manner.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. and /or its service offerings.6.

M. establishing a good side and maintaining it is becoming more and more costly. interest companies have turned to traditional medium to achieve reach and awareness goals. its six is still far behind that of television.The cost of doing business on the MAT continues to increase. 5.At times. As a result.Birla Institute of Management 20 . downloading information from the net takes a long time. While it is possible to establish a site in expensively. this is a major disadvantage. net advertising does not offer the capability of many competitive media for a production standpoint. 7.While the Internet numbers are growing in leaps and bounds. As noted earlier . Language: . Poor reach: . Costs: . 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. When there are a number of users. the net still lags behind some areas. 4. the time increasing and some Sites may be inaccessible due to too many visitors.3.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. While the advent of advanced technologies and rich medium is narrowing the gap. For many users who expect speed. 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. 6.Although it is improving.P. Web Snarl: . Limited production quality: .

Traditional Advertising Web Advertising Bound by geography and location The Web market is borderless Advertisement costs are relatively high Web Advertisement rates are relatively low Lead times for implementation are substantial Lead times are virtually non-existent Limited interactivity exists. 365 days a year Traditional marketing is static Web advertising is dynamic and multimedia supported M. Advertisement can be carried out 24 hours a day.P.Given below is the comparison between Traditional and Web Advertising that will signify the importance of in today's world. if at all Web marketing is based on high level of interactivity Getting customer feedback is a painstakingly slow process Customer feedback is immediate Tracking the effectiveness of the Advertisement efforts is relatively difficult Effectiveness can be easily monitored Marketing efforts are restricted by time and space On the internet.Birla Institute of Management 21 .

while searching for travel sites.P.like clicking on the banner ad and thus going to your site to know more of company Advertisements are passively received The user has a high attention level while he is on the net. Thus advertisements get noticed. and acted upon Advertisements are ubiquitous Here. ads related to travel agencies are displayed Advertising does not target a focused audience Advertisements are very focused.Birla Institute of Management 22 . while MAC users are not shown those ads M. PC software can be displayed to PC users. remembered.Traditional advertising does not invoke immediate action Web advertising requires the user to take immediate action .

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 ere.

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.

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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 Bangalore City and therefore, several other potential samples outside the city were neglected

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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.

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there is no simple classification of research designs that covers the variation found in practice. the resources of data collection procedure. measurement and analysis of data. It is a frame work. which specifies the type of information to be collected. Office and colleges in Bangalore City. Research design is the strategy for a study and the plan by which the strategy is to be carried out.METHODOLOGY DEFINITION OF RESEARCH DESIGN: “It is a basic plan. cyber center. Unfortunately.” - Thomas Kinnear A research design is a market plan or model for conduction a formal investigation. as in questionnaire were administered at places like the residents. It specifies the methods and procedures for the collection. which guides the data collection and analysis phases of the project. M.Birla Institute of Management 26 .P. Sampling Method The sampling procedure used was convenience and judgment sampling. It is a specification of methods and procedures for acquiring the information needed for solving of any problem.

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 questionnaire consisted of a set of questions.P.Tools for data collection Interaction with Respondents was in the form of face-to-face interviews with the help of questionnaire. Primary Data The primary data was generated through extensive use of a structured questionnaire. asked to the respondent for his/her response. the questionnaire was structured and non-disguised. which had both the open end and close-ended questions. The questionnaire consisted of combination of open ended and close-ended question. The input from these respondents which was collected in Bangalore City formed the primary data for the study. They were conducted in Bangalore City and the data collected was used for the purpose of analysis and interpretation. It was done in a prearranged order and the object of the research was revealed to the respondent.Birla Institute of Management 27 . M.

Areas Covered BTM Layout Jayanagar 4th Block Koramangala M.Birla Institute of Management 28 . These are the basis for drawing the appropriate conclusion for this project.P.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.

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. with the new medium called the Internet. The Internet is the fastest growing medium in the 2000’s with millions of users and an average estimated growth of 124% annually. through feedback and interaction in real time. to put the very heart throbs of a business into type. paper and ink. page and link. With the number of Internet users increasing manifold. The Internet is also a highly M. interpret . the new medium is viewed as the advertiser's dream. paper and ink with site. we can substitute type.INDUSTRY PROFILE "Advertising is the ability to sense.Leo Burnett This statement quoted by Leo Burnett a few decades ago still holds ground as strongly as it did back then. . Internet advertising is becoming a part of some companies marketing strategy. Internet is fast emerging as a powerful medium of advertising in the new millennium." . It has great potential as an advertising medium. Online advertising offers the advantage of reaching and interacting with the target audience. Online advertising presents the flexibility of moulding the campaign in response to the effectiveness in real time. irrespective of geographical barriers. . in real time. Internet offers the flexibility of two-way communication. Perhaps.however it requires new strategies and thinking.Birla Institute of Management 29 .P.

yet on the Internet. users have to actively select an advert. The Internet offer companies targeting well-educated.P. This changes the way advertisers generate and retain customers. 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. differentiate and customize to achieve advertising effectiveness. This requires clear objectives and targeting. Growth in disposable income. affluent males or students great potential for success as their segments are highly represented. Informative quality content. Despite higher global reach Internet is not yet a local mainstream media. Products with high information intensity and high buyer involvement are also appropriate for Internet promotion due to its large information capacity at low costs. innovative.Birla Institute of Management 30 . The commercial industry is going through a rapid and radical development from the 2000's.selective. increased purchase information and alternative service and product offerings have expanded the customer’s bargaining power. M. advertisement with interesting entertainment or direct sales possibilities can add value to the customer. cost effective media with greater measurability than any other media. Today’s advertiser must individualize. Targeting and building a relationship with customers on an individual basis is essential to be a successful advertiser in the 2000's. Traditional advertising is consumed passively. advertisers must fulfill real customer needs on a continuous basis. To persuade visitors to revisit and spend time on the website.

Birla Institute of Management 31 .The advertisers ideal is the ‘best possible reach within a welldefined audience (selectivity) with good possibilities of feedback and low costs’. better .because in cyber world. The following criteria evaluate the effectiveness of the different media. the future we are talking about is already here! And to survive in this cutthroat competition. They may be new concepts right now but will be most essential part of business world in near future. no looking back but just zooming ahead .at lightning speed! M. In fact.P. sooner your organization enters cyber world. 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. it's always a one-way traffic.

These banners are placed on other high traffic web sites like Yahoo. ensuring that a site visitor will see them for sure.P. you will see such inline ad inbetween search results. Similar to print adversarial. M.A short-lived.Birla Institute of Management 32 . Or anywhere you like them to be. usually animated ad that pops up in the browser window for about 5-10 seconds while a page is downloading and then disappears. Interstitial Another model of Web advertising .PRODUCT PROFILE 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"). inline ads integrate within site content. Inline Advertisements Inline ads provide a way for sponsors to generate leads or deliver rich brand building messages. They can be placed at the top or bottom of a page. AOL etc so as to get an opportunity To See (OTS). Example: When you search using Metacrawler and get results.

advertisers in Cyberspace can pay for their advertisements to be listed in online classifieds. From products and services to headhunting and matrimonial.com or Geocities. the entire Website is sponsored by an advertiser. a secondary window automatically pops up continuously rotating advertisement of sponsors.Pop-Up Windows A pop-up window delivers the advertisement in a new window on top of the site content. Classifieds Similar to classifieds in the real world. Website sponsorships Here. These e-mails can contains tips.Birla Institute of Management 33 . hints or even jokes for free and are sustained by advertisements that are interspersed throughout the body of the e-mail.P. Mailing list ads Mailing lists are e-mails sent to group of subscribers at regular intervals focusing on a particular topic. When you visit Homepages on Tripod. M. any subject is covered. Ads are usually in 6-8 line of text instead of graphics and animations like banner ads. These sites are usually content or service based and has a very high traffic because of their utility value.com (Advertisement supported free homepage sites).

both are new concept of doing the business and are inter-combined and are irreplaceable part of the cyber world.Ads on Chat Chat is a service available on the net for two or more people to converse with one another through their keyboards. earn their revenue from advertisements that are displayed to everyone using these chat services.P. Complete non-monopolization of undersea fiber connectivity for ISP on August 2000. These include the following Announcement of the Information Technology Act 2002. Announcement of the national long distance services beyond the service area to the private area. Permission of Internet accesses through cable TV infrastructure. Web marketing and e-Business.Birla Institute of Management 34 . which put in place a cyber. Initiation of the setting up of the National Internet Backbone. So. M. 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. Companies that offer these chat services for free. 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.

or the return on investment? Let’s start with performance and availability. Are more pages better? When visitors first arrive and are investigating the depth and breadth of the offerings. What metrics should be consider when calculating the value of the Web site. 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. 100% FDI allowed in B2B e-commerce. To say that slow pages are the kiss of death doesn’t take all the possibilities into account. Permission of Interconnectivity of Government and closed user group (CUG) networks. more is definitely not merrier. to access providers to lay optical fiber networks along National Highways. The establishment of Public Teleinfo Centers (PTIC) having multimedia capabilities has been permitted. M. more pages is good. site visitors said that anything more than eight seconds for a navigation page and 30 seconds for a data sheet was intolerable. Measuring the Efficiency and Effectiveness of their Site. When National Semiconductor asked its design engineer customers about the need for speed.Birla Institute of Management 35 .Free Right of way facility with no charge in cash or kind. The Advertiser should also consider the type and number of pages of their site that visitors look at during a single visit.P. State Highways and other roads.

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.Looking for patterns If the Advertiser make use of cookies to analyze the path of each visitor. If your name is Yahoo! or AOL.urnsandcaskets. It’s great that somebody came to your site 10 times in one day. you may feel a little people who come back day after day and stay a while. it’s good stewardship to put the pertinent information on the product page and save them a click. Your site can make special offer when a potential customer visits a certain number of times or looks at particular pages. but if that day was six months ago. And then you can go one step further. The most desirable recency-frequency tally is different for different types of sites. the comparison shopper and the buyer all have their own traffic patterns.com. Watch where they go and then do what you can to make their way easier next time. If people are always clicking from the product page to the warranty page and back. The final consideration is how often people visit your site a combination of recency and frequency. then you want all the people. all the time. The trick is to look for patterns. and it’s up to you to serve them according to their needs. then they can start to make assumptions about what people are looking for and if they had trouble finding it. called Geniality’s a M. If your Web site is located at http://www.P. it won’t do you any good. The researcher.Birla Institute of Management 36 .

Affiliate marketing .The amount of information that can be transmitted over communications lines at one time. The higher the bandwidth. Bandwidth . Ad views are what most Web sites sell or prefer to sell. Limited bandwidth is the main reason for keeping pictures small. the term impression is more commonly used. a sales organization.Birla Institute of Management 37 .com. M. The amount of research and development money being thrown at this problem should yield surprising results before long. which share a common banner server Typically. A Web page may offer space for a number of ad views. Just as it seems we will never have fast enough computers. In general. Ad view . Amazon.A group of websites.An ad view. the bookseller.Affiliate marketing is the use by a Web site that sells products of other Web sites. Online Advertising Operational Definition Advertising Network . subscribe. etc. 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. the faster the Web page loads.clever software that will determine the fewest attributes common to those who performed the desired act (purchase. which manages the commerce and reporting. and it can tell you which offer is the one most likely to make that sale. register. called affiliates. An ad network has the ability to deliver unique combinations of targeted audiences because they serve your banner or ad across multiple sites. synonymous with ad impression. to help market the products. created the first large-scale affiliate program and hundreds of other companies have followed since. it feels like we will never have enough bandwidth. It shifts through mountains of data about your customers so you can more quickly recognize the ones who are statistically most likely to buy. Taking all this into the consideration one can manage their site measurement of effectiveness.).P.

M. Click Through Rate (CTR) . Click Through . The price paid by an advertiser to a content site. but just that the visitor started going there).Click .According to ad industry recommended guidelines from FAST.P. The price paid by an advertiser for each 'action' that a content site delivers.Cost Per Click. When buying on a Cost Per Click model. from page to page. but actually clicking on it so that the visitor is headed toward the advertiser’s destination. 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 . a download of a software program or an e-commerce sale of a product. Used as a counter point to impressions to judge the response-inducing power of the banner. 'Action' may be a sale. a successful form fill-out. a lead. typically expressed as a percentage and calculated by taking the number of click through the ad received. 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.The electronic path a user takes while navigating from site to site. a click is 'when a visitor interacts with an advertisement. and within site.Birla Institute of Management 38 . As with other forms of online advertising. (It also does not mean that the visitor actually waits to fully arrive at the destination. CPC .000 impressions = . dividing that number by the number of impressions and multiplying by 100 to obtain a percentage .02 x 100 = 2% CTR CPA . s dependent on content. Both the action.the amount purchased.' This does not apparently mean simple interacting with a rich media ad.20 clicks / 1.Cost Per Action. which takes the use through to the advertiser's Web site.The response rate of an online advertisement.Example .The act of clicking on a banner or other ad. Click streams .

When a page that includes a banner is viewed. 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. video. Inventory . See also CPA above.Cost Per Thousand (Roman Numeral) impressions. Not a reliable gauge to compare different sites.Cost Per Sale. Gross Exposures/Gross Impressions . it is considered an impression. it is recorded as a hit. including duplicate showings to the same person. Information pertaining to a site can only be ready the side that wrote the information. Typical rates/bounties range between 5% and 25% of the retail price of the product or service being sold.000 times.The Opportunity To See (OTS) a banner or other ad by a surfer. Frequency . graphic.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. CPS . Hits .audience reached and targeted delivery . Cookies . targeted to an affluent audience being at the high end of the rate scale.The number of times a given person will see an ad in a given time period.Every time a file is sent by a server.Birla Institute of Management 39 . This type of buying model is typically tracked with cookies.The amount of available space for banners on a Web site that can be delivered in a given time period. Impression . be it text. Also known as the amount of M. CPM . as one page with five graphic elements will register six hits when viewed.P. Used to identify repeat visitors and track visitor behavior. 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.Client-side text file that is used by Web servers to store information about the site visitor and visitor behavior. Effective Frequency .The total number of times an ad is shown. The price paid by an advertiser for a content site displaying their banner 1. while a page with no graphics will only register one hit.Untargeted being owner priced. and so on.

Pageviews are often used to track the number of impressions a banner gets.A run-of-network ad is one that is placed to run on all sites within a given network of sites. Run-of-network .Originally posting an ad to multiple newsgroups. Run-of-site .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. View counting should consider that a small percentage of users choose to turn the graphics off (not display the images) in their browser. View . Spam . a visitor that returns within the same day is not counted twice. and the like.When a Web page is requested by somebody through a browser.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). now used to describe unsolicited email advertising. M. depending on what’s meant. Page view . Usually an ad view is what’s meant.Birla Institute of Management 40 . CPM rates for run-of-site ads are usually less than for rates for specially-placed ads or sponsorships.P. Named after a skit by Monty Python.A run-of-site ad is one that is placed to rotate on all non-featured ad spaces on a site.A view is. A unique visitors count tells you how many different people there are in your audience during the time period. either an ad view or a page view. image maps. spam is one marketing and advertising technique to avoid at all costs Unique visitor . 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. but not how much they used the site during the period. There can be multiple ad views per page views.A hypertext connection between two documents. graphics. Link . Thus.

Birla Institute of Management 41 . since it could mean a user session or it could mean a unique visitor that day. This term is ambiguous unless the user defines it.P. M.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.Visit .

The logic involved in the chi-square test is that of comparing the observed frequencies and the expected frequencies. M.P. 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.Birla Institute of Management 42 . Testing of hypothesis Techniques of hypothesis testing are used if we have an idea about the value of the parameter in question. 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. 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.HYPOTHESIS It is usually considered as the principal instrument in the research.

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. TABLE – 6.Birla Institute of Management 43 .Alternative Hypothesis: H1 There is no significant influence of features of online Advertisement on the Effectiveness of online Advertisement.P. Significance Level: The critical probability in choosing between the null and alternative hypothesis. 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.1 Yahoo Creativity Attractiveness Information Accessibility Total 16 13 24 19 72 Rediff 3 2 5 2 12 Sify 1 4 3 2 10 MSN 3 1 2 0 6 Total 23 20 34 23 100 M.

36 2.92 0.90 1.00 3.38 1.56 -0.00 1.04 0.06 0.00 2.23 0.00 2.00 1.08 0.92 so this states that accept the Null Hypothesis M.56 0.56 2.00 19.17 and the table value at 5% significant level is 16.85 0.76 -0.01 4.38 Total 7.62 1.40 0.TABLE –6.09 0.76 0.31 0.30 0.00 5.14 2.00 1.07 2.48 0.03 24.20 0.40 -0.40 -0.38 1.00 4.00 From the above calculated table it is clear that the Calculated value is 7.05 2.04 1.00 16.00 2.02 2.58 0.40 -1.73 1.04 0.02 2.00 3.00 24.2 E (O-E) (O-E)2 (O-E)2/E 16.95 0.00 4.30 -1.69 0.00 2.40 0.44 5.90 14.00 0.P.16 0.38 -1.16 0.48 -0.00 0.Birla Institute of Management 44 .21 3.62 2.20 -0.76 0.00 2.00 3.04 -0.00 13.96 0.21 2.40 1.17 O 16.24 0.00 2.30 1.30 -0.

3 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. GRAPH No-6.Birla Institute of Management 45 .1 Number of Respondent 33% Male Female 67% M. In near future the percentage will definitely increase with the increase in the Female E-awareness. There is a quite a lot of difference between the number of males and females in the sample.P.TABLE No-6.

and the rest (10%) of the respondent are in the age group of above 30 years.4 Table showing Age Classification AGE Group Below 20 20-25 25-30 Above 30 TOTAL No. M.TABLE No-6. 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. and also a portion of sample i.e. (35 %) of respondent are in the age group between 25-30 years.Birla Institute of Management 46 . Of Respondent 20 35 35 10 100 Percentage 20% 35% 35% 10% 100% Analysis and interpretation As it can be observed from the given table. (20%) of the respondent are in the age group below 20 years.P. the major portion of sample (35 %) is constituted of people in the age group between 20-25 years.

P.GRAPH No-6.Birla Institute of Management 47 .2 Age Group Of Respondent 10% 20% 35% Below 20 20-25 25-30 Above 30 35% M.

(25 percent) are engaged in business. 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 employees of various sectors like IT Professionals Charted Accountants.TABLE No-6. 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.5 Table showing the Occupation of Respondent OCCUPATION No. College Professor. M. Lawyers. (10 percent) are others constituting housewives & children.P.Birla Institute of Management 48 . This shows that mainly college students are interested in browsing.

3 Occupation of the Respondent 10% 25% 40% Student Employee Self Employed Others 25% M.P.GRAPH No-6.Birla Institute of Management 49 .

the respondent spent more than three hour in Browsing. 29 percent of the respondent spend one hour to two hour. 80 percent has spent less than one hour 39 percent of the respondent spend one hour to two hour. 18 respondents who browse fortnightly. 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.Birla Institute of Management 50 . 23 percent of the respondents spent Two hour to three hour and 10 percent.6 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 . 42 percent spent less than one hour.P. 27 M.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.TABLE No-6.

and 16 percent of the respondent spent more than three hour.P. the respondent spent two hour to three hour. and feed the present of the respondent spent more than three hour. GRAPH No-6.percent of the respondent spent two hour to 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.Birla Institute of Management 51 .2 2 hr – 3 more hr hr than 3 hr Weekly Twice Weekly Once Fortnightly Nonthly M.4 Frequency and Duration Spent in Browsing 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Less than 1 hr 1hr .

TABLE No-6.7 Percentage of Respondents checking Online Advertisement Particulars Yes No Total Checking Online Ads 55% 45% 100% Analysis and Interpretation From the Data collected.5 Percentage of Respondent checking online Advertisment 70% 60% 50% 40% 30% 20% 10% 0% Yes No M.Birla Institute of Management 52 . 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. GRAPH No-6.P. So if the Ads are such that with creativity and informative even those 45% can also be converted and included in the 55% list.

about 22%.P. M. 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. Finally Academic and jobs with 9%and financial loans 14% respectively. followed by Purchasing i.Birla Institute of Management 53 .8 Various Aspects for Surfing Reasons for Checking Advertisement Purchasing Entertainment Financial loans Academic Jobs Percentage 22% 35% 14% 9% 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%.TABLE No-6. jobs related sites which is nearly 20%. Only then comes of the respondent.e.

Birla Institute of Management 54 .P.6 Ads related to various products Advertisement Purchasing Entertainment Financial loans Academic Jobs M.GRAPH No-6.

If not the advertiser could go for Rediff which is Ranked 2nd. 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.Birla Institute of Management 55 .P.9 Respondents Ranking their preferred Site SITES 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. (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.e. M. 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. and other sites are less preferred compared to these top two sites.TABLE – 6.

GRAPH No-6.7 Respondents Rank of their preferred sites 80% 70% 60% 50% 40% 30% 20% 10% 0% ho o Si fy ff SN Re di Ya tim M es Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 In d ia M.P.Birla Institute of Management 56 .

TABLE No-6.8 Number of Respondents who Purchased Online 43% 57% YES NO M. GRAPH No-6.10 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.Birla Institute of Management 57 .P. 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.

11 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.Birla Institute of Management 58 .P.TABLE No-6. M. From the Above table it clearly shows that product and services purchased online are not costly.

Birla Institute of Management 59 .P.GRAPH No-6.9 Chart showing diffrent products & services purchased online 7% 12% 28% CD's & Cassetes Travel Booking Book's & Magazin Mobile Phones Softwares Computers 14% 18% 21% M.

TABLE No-6.P. 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 Female 34 26 5 8 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. there are very few percentage of people who do not prefer to purchase online. 76 % of the female preferred to purchase online and 24 % of the female do not prefer to purchase from Internet. 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.Birla Institute of Management 60 .12 No. but would prefer to do so in the future. so there seems to be an opportunity that has to be tapped. The above analysis clearly shows that even though the number of respondents who has not purchased through the Internet are more. M.

P.GRAPH No-6.10 Chart showing No of Respondent prefer & donot prefer to purchase online 40 35 30 26 25 20 15 10 5 5 0 No of Respondent Prefer to Purchase Donot Prefer to Purchase 8 23 18 MALE FEMALE 34 M.Birla Institute of Management 61 .

TABLE No-6. which increases the confidence level of the customer and make them purchase on internet.P.preference to purchase Online Reasons Safety Privacy High Risk Registration Process Total No of respondent 4 3 2 4 13 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. 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 clearly shows that Safety is the main reason with 31%. M.13 Reasons for non. high risk and registration process with 15% and 31% respectively.Birla Institute of Management 62 . followed by privacy with 23%.

11 Chart representing reasons for non purchase on internet Registration Process 15% 31% High Risk 23% Privacy 31% Safety 0% 5% 10% 15% 20% 25% 30% 35% M.GRAPH No-6.Birla Institute of Management 63 .P.

P. 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 M. only 16% respond sometimes. From this analysis the advertiser even though has less of response or feedback.14 Respondents Responding to online Advertisement Particulars Yes No Sometimes Percentage 36% 48% 16% 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.TABLE No-6.Birla Institute of Management 64 .

GRAPH No-6.12 Respondence who Respond to the Online Ads question 16% 36% Yes No Sometimes 48% M.P.Birla Institute of Management 65 .

flash ads (30%) were the next preferred followed by pop-ups (26%).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.13 35 30 25 20 15 10 5 questionnaire Ads that run through flash ad pop ups 0 flash ad pop ups questionnaire Ads that run through M.P.Birla Institute of Management 66 . GRAPH-6.TABLE – 6.

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. life style social factor. For this purpose a structured questionnaire had been designed and analysed.Birla Institute of Management 67 . It has been observed that there are many factors. 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.FINDINGS OF THE STUDY This study was conducted with a view to know that whether Online Advertising is effective. Almost 60% of the people who browse the Net check t online Ads while browsing only if they are interesting and informative M. which effect this statement of Problem like Occupation.P. Age.

Birla Institute of Management 68 . M. .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.P.

click which button he prefer and be directed to a specialized product marketing page.V-mini commercial that plays at your banner on click of a mouse. By sponsoring a freebie. Like many sites come in Dutch. German. Spanish. informative and creative ads are also preferred therefore hot new designs and innovative sales concepts should be developed. Russian. order a product through a secured order form on the banner itself. Translation service on websites is also good which will help retain customers. M. and Italian. French. If a little radio-like audio message that plays from your site upon a click of mouse or a T. Obviously. Use of multi-media As we have seen the potential for banner and Internet ads. a simple name submission drawing can also get viewers to go through ads in the process they become aware of the advertisement. Free offers The word free is just as effective in advertising online as it is offline. 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.Recommendations Go International with multiple language: Offer your web site in multiple languages. the biggest bridge to cross is download time. it will be much more effective and interesting. Czech.Birla Institute of Management 69 .P. Slovene.

can all provide valuable information that could move a customer from the point-ofdecision to the point. teenagers love them. Target Audience Keep your target audience in mind. "Our saucepans have a non-stick coating that's guaranteed for life. in-home testing. When a winner is selected. In actual. testimonials. reports. Include statistics When you make a sales claim. Adding a reciprocal link is a professional way to say thank you and is of no cost to the advertiser. If your target group is younger people. research. On the other hand.of-purchase. Web site testimonials Build trust or confidence in your online business by using testimonials.Birla Institute of Management 70 . Surveys. M. Keep the testimonials to one or two sentences and keep it simple. You might say. food did not stick to our saucepans 98.P. Listing a name and e-mail address it acts as a reference that is easy and quick.Sponsor a contest People love to win ANYTHING! Offer your product or service as a prize." Provide content on your site As you surf the Web take note of information that supports your advertising claims. etc. their name web address and a link to the site can be published. games might be the thing for you. back it up with information. Design your ad to meet the preferences of your target customer. Business people aren't going to have the time or inclination to participate in game-type ads.3% of the time. A direct quote with the permission of the customer is a nice touch. including statistics.

include examples specific to them. Use “you or your” instead of “we or us. In a world where most advertisers are speaking to the masses.” 2. be sure to give yours an advantage by speaking personally to those you wish to do business with. Include industry buzzwords and jargon when appropriate. it will work as a big incentive. 4. Since information is what surfers are looking to receive. M.Birla Institute of Management 71 . This is the only way you will be able to communicate with them on a personal level. Few tips that will help in making a connection with the clients: 1. Customers will feel an attraction to copy that reaches out specifically to them. Include personal examples rather than general examples. Know your target audience very well.P. If writing to hair stylists. 3.Offer a free report Give away information free with a purchase or subscription to your newsletter. Write using the language of your target audience.

profitability. Finally Donot try to do "anything and everything" to get the buyer's attention. and marketing methods. an easy method to distribute information.the fear that ordering through an on-line advertisement will get lost in the void of cyberspace.P. an immediate and direct line to the customers. M. Everyone who comes to site isn't going to buy.Birla Institute of Management 72 . As people get more accustomed to finding their product information on the Web. and reduced costs in performing these tasks.CONCLUSION Is Advertising on the Internet a viable option? I have looked at this question in terms of effectiveness. The harder you try to get their attention and force them to read your ads. Fears always come with new technology. the harder they will try to escape. Internet advertising offers increased awareness of companies. The only negative aspect is that consumers have to conquer their fears of the Internet . but it does not take long for people to adjust. advanced methods of targeting consumers. more and more readers will actively seek out Internet advertising sites.

Are you aware of Online Advertisement Yes No 7.P.Birla Institute of Management 73 . How many hours do you Spend on Browsing < 1hr 1hr >1hr 6. Do you check the online Ads while browsing Yes No M.Questionnaire Effectiveness of Online Advertisement NAME Gender 1. 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 No No 5. AGE GROUP Below 20 25-30 2.

what have you purchased (go to Q 17) 15. If no. If no.Birla Institute of Management 74 . If yes. What kind of Ads do you like to see M. why don’t you prefer to purchase online 17. Have you purchased Online Yes No Rediff Sify Others Entertainment Academic Others 14. 18. Ads relating to which product are you interested in Purchasing Financial loans Jobs 9. Which Sites consist of more ads Yahoo Indiatimes msn 12. would you prefer to purchase Online Yes No 16.P.8. How often do you purchase online.

Have you responded/participated in any Ads Yes No 20. Have you made any purchases after seeing these Ads Yes No 22. Does the Online Ads interfere in your work while browsing Yes No 21. How you think the online Ads can be improved M.One that pop ups One which has a questionnaire One that flashes One that runs on the top/bottom 19.P.Birla Institute of Management 75 .

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