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Under the guidance and supervision




I hereby declare that this dissertation titled a study


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 (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

Here the Hypothesis Testing is done with the help of the Chi-
square test, this is to test the relation ship between the two attributes.
Here the attributes are Features and Effectiveness of Online

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 purpose-

Generates 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. The Type of advertisement.
ii. Where it appeared on the WebPages.
iii. How it integrated with content.
iv. 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
additional copies of a magazine, or to create and mail
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 mass-
market 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.


ISP Licenses issued 600

ISP Licenses surrendered 198

Existing ISP Licensing 450

Operational ISP’s 250

Cities covered 400 approx.

Cyber cafés/Public access kiosks 12200 approx.

Internet subscribers 4.2 million

Operational international gateways 65 approx.

Estimated Employment Provided 1,150,000

Total investment made on ISP Rs.6000 crore

Estimated investment made on Rs.2500 crore

Equipments by ISP

Approval for setting up ISP 100+

ITSP licensing issued 100

Growth of Internet Subscriber Base in India

Month Year Subscriber base (in millions)

Aug-95 0.01
Mar-96 0.05
Mar-97 0.09
Mar-98 0.14
Mar-99 0.28
Mar-00 0.9
Mar-01 3
Mar-02 3.2
Mar-03 4
Mar-04 4.2
Mar-05 7.2

2000 2001 2002 2003 2004 2005

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 "world-
Class " was prohibitive and one of the reason for abandoning its E-commerce

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.

Traditional Advertising Web Advertising

Bound by geography and location The Web market is borderless

Advertisement costs are relatively Web Advertisement rates are

high relatively low

Lead times for implementation are Lead times are virtually non-existent

Limited interactivity exists, if at all Web marketing is based on high level

of interactivity

Getting customer feedback is a Customer feedback is immediate

painstakingly slow process

Tracking the effectiveness of the Effectiveness can be easily monitored

Advertisement efforts is relatively

Marketing efforts are restricted by On the internet, Advertisement can be

time and space carried out 24 hours a day, 365 days
a year
Traditional marketing is static Web advertising is dynamic and
multimedia supported

Traditional advertising does not Web advertising requires the user to
invoke immediate action take immediate action - like clicking
on the banner ad and thus going to
your site to know more of company

Advertisements are passively The user has a high attention level

received while he is on the net. Thus
advertisements get noticed,
remembered, and acted upon

Advertisements are ubiquitous Here, while searching for travel sites,

ads related to travel agencies are

Advertising does not target a focused Advertisements are very focused. PC

audience software can be displayed to PC
users, while MAC users are not
shown those ads


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.


To ascertain the importance of online advertising as a promotional tool.

To assess the effectiveness of online advertising on purchasing

To ascertain which type of online advertising is preferred by


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 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


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.



“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.”

- Thomas Kinnear

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

Sampling Method

The sampling procedure used was convenience and judgment

sampling, as in questionnaire were administered at places like the residents,
cyber center, Office and colleges in Delhi NCR.

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.

Primary Data

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:





(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.


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


"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

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 well-
defined 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


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.


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 in-
between search results.

Pop-Up Windows

A pop-up window delivers the advertisement in a new window on top of the

site content. When you visit Homepages on or
(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.


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

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

Looking for patterns

If the Advertiser make use of cookies to analyze the path of each

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, 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
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., 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
banner gets.
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

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.

Significance Level:
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 Sify MSN Total

Creativity 16 3 1 3 23
Attractiveness 13 2 4 1 20
Information 24 5 3 2 34
Accessibility 19 2 2 0 23
Total 72 12 10 6 100

TABLE –6.2

O E (O-E) (O-E)2 (O-E)2/E

16.00 16.56 -0.56 0.31 0.02
3.00 2.76 0.24 0.06 0.02
1.00 2.30 -1.30 1.69 0.73
3.00 1.38 1.62 2.62 1.90
13.00 14.40 -1.40 1.96 0.14
2.00 2.40 -0.40 0.16 0.07
4.00 2.00 2.00 4.00 2.00
1.00 1.20 -0.20 0.04 0.03
24.00 24.48 -0.48 0.23 0.01
5.00 4.08 0.92 0.85 0.21
3.00 3.40 -0.40 0.16 0.05
2.00 2.04 -0.04 0.00 0.00
19.00 16.56 2.44 5.95 0.36
2.00 2.76 -0.76 0.58 0.21
2.00 2.30 -0.30 0.09 0.04
0.00 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 16.92 so this states that
accept the Null Hypothesis

TABLE No-6.3

Table showing Gender Classification

Gender No Of Percentage
Male 67 67%
Female 33 33%
Total 100 100%

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.

GRAPH No-6.1

Number of Respondent


TABLE No-6.4
Table showing Age Classification

AGE No. Of Percentage

Group Respondent
Below 20 20 20%

20-25 35 35%
25-30 35 35%
Above 30 10 10%
TOTAL 100 100%

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.

GRAPH No-6.2

Age Group Of Respondent


Below 20
Above 30


TABLE No-6.5
Table showing the Occupation of Respondent

OCCUPATION No. Of Percentage


Student 40 40%

Employee 25 25%
Self Employed 25 25%
Others 10 10%
Total 100 100%

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

GRAPH No-6.3

Occupation of the Respondent

40% Student
25% Employee
Self Employed

TABLE No-6.6

Table showing the Frequency and Duration spent in Surfing

No of Less than 1 hr 1hr - 2 hr 2 hr – 3 hr more than 3 hr


Weakly Twice 47 42% 29% 18% 11%

Weekly once 30 27% 40% 23% 10%

Fortnightly 18 18% 39% 27% 16%

Monthly 5 20% 40% 20% 20%

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.

GRAPH No-6.4

Frequency and Duration Spent in Browsing

30% Weekly Twice
25% Weekly Once
20% Fortnightly
15% Nonthly
Less 1hr - 2 2 hr – 3 more
than 1 hr hr than 3
hr hr

TABLE No-6.7
Percentage of Respondents checking Online Advertisement

Particulars Checking
Online Ads
Yes 55%
No 45%
Total 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.

GRAPH No-6.5

Percentage of Respondent checking online


Yes No

TABLE No-6.8
Various Aspects for Surfing

Reasons for
Checking Percentage

Purchasing 22%
Entertainment 35%
Financial loans 14%
Academic 9%

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.

GRAPH No-6.6

Ads related to various products

Financial loans

TABLE – 6.9

Respondents Ranking their preferred Site

Rank 1 Rank 2 Rank 3 Rank 4 Rank 5

Yahoo 72% 6% 3% 0% 0%
Rediff 12% 36% 26% 9% 5%

Sify 10% 27% 30% 16% 12%

MSN 6% 18% 22% 27% 29%

Indiatimes 0% 13% 19% 48% 54%

Total 100% 100% 100% 100% 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

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.

GRAPH No-6.7
Respondents Rank of their preferred sites

70% Rank 1
Rank 2
40% Rank 3
30% Rank 4
10% Rank 5







TABLE No-6.10
No of Respondents purchased Online

Particular No Of Percentage
YES 47 47%
NO 53 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.

GRAPH No-6.8

Number of Respondents who

Purchased Online

43% YES

TABLE No-6.11
Various products and services purchased online

Particulars Percentage
CD's & Cassettes 28%
Travel Booking 21%

Book's & Magazine 18%

Mobile Phones 14%

Software 12%
peripherals 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.

GRAPH No-6.9

Chart showing diffrent products &

services purchased online

12% 28%
CD's & Cassetes
Travel Booking
Book's & Magazin
14% Mobile Phones

TABLE No-6.12
No. Of Preference and non Preference to purchase

Gender Male Female

No of Respondent
Not purchased online 23 34
Prefer to Purchase
Online 18 26
Do not Prefer to
online 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. 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
be tapped.

GRAPH No-6.10

Chart showing No of Respondent

prefer & donot prefer to purchase


35 34

25 23

20 18


10 8

No of Prefer to Donot Prefer to
Respondent Purchase Purchase

TABLE No-6.13
Reasons for non- preference to purchase Online

Reasons No of respondent Percentage

Safety 4 31%

Privacy 3 23%
High Risk 2 15%
Registration Process 4 31%
Total 13 100%

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

GRAPH No-6.11

Chart representing reasons for non purchase on



High Risk 23%



0% 5% 10% 15% 20% 25% 30% 35%

TABLE No-6.14

Respondents Responding to online Advertisement

Particulars Percentage
Yes 36%
No 48%
Sometimes 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, 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

GRAPH No-6.12

Respondence who Respond to the

Online Ads question




TABLE – 6.15
Types of Ads respondents like to see

Flash ads Pop – ups Questionnaires Ads that run

30% 26% 10% 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%).





15 flash ad
pop ups
5 Ads that run through
Ads that run
flash ad

pop ups



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


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

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-of-
decision 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
business with.


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


Effectiveness of Online Advertisement


Gender Male Female


Below 20 20-25
25-30 Above 30

2. Occupation :

Student Self Employed

Employee Others

3. Do you Own a computer

Yes No

4. Do you Surf the net

Yes No

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

Yes No

8. Ads relating to which product are you interested in

Purchasing Entertainment

Financial loans Academic

Jobs Others

9. Which Sites consist of more ads

Yahoo Rediff

Indiatimes Sify

msn Others

12. Have you purchased Online

Yes No

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