1.1 General Introduction of Project: I. Introduction & Research Methodology

A Comparative Study Between Traditional Marketing and Digital Marketing with special
reference to retail marketing stores
I. INTRODUCTION & RESEARCH METHODOLOGY
1.1 GENERAL INTRODUCTION OF PROJECT
Different tools of traditional marketing have been used by marketers for a long time. The
marketers have been using the traditional channels such as face to face communication, TV,
radio and magazines etc. to communicate to the customers.
Nowadays there is a new communication channel, Internet, added to these traditional

channels, which have brought lots of opportunities for marketers. Internet has affected marketing
process by providing opportunities that were not available by using traditional marketing tools.
All of the communication channels have an important function of their own but Internet
is a channel that has developed and is continuously developing which has got a lot of attention
from everyone.
Knowing the differences advantages and disadvantages between traditional and Internet
marketing, a marketer can be more capable to make the right decision when choosing the
marketing strategy.
Some interesting questions related to Internet marketing and traditional marketing are:
What is the most beneficial marketing approach comparing traditional and Internet
marketing? Which marketing tools are the most used ones in practice and which are preferred by
“real life companies”? Is Internet marketing a contemporary version of traditional marketing and
are the two kinds of marketing independent of or complementary to each other?
These issues are considered interesting by the authors of this thesis since choosing a
specific marketing method can be a difficult decision for a new company entering the market.
There also might be some indistinctness about different marketing tools and their benefits
or drawbacks for others interested in the subject, such as students studying marketing.
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1.2 OBJECTIVES OF STUDY
1. To understand the various aspects of online marketing.

2. To study the effectiveness of social media marketing as compared to other tools
of digital marketing.
3. To know the reason behind the sudden boost in the field of Online Marketing –
Traditional v/s Digital Marketing.
1.3 SCOPE OF STUDY
The aim of this study is to compare traditional marketing and Internet Marketing and
show the differences of characteristics between them. And to find out what marketing tools are
effective for a new business or entrepreneurs.
1.4 RESEARCH METHODOLOGY
1.4.1 Formation Of Problem
Marketing is an important strategy for businesses and it contains numerous

effective tools. Traditional marketing has been in use for many years and nowadays
Internet has brought new ways of doing business for companies and that has affected
marketing.
What are the main differences between Internet marketing and traditional
marketing? Which one of the two approaches contains the most used and effective
marketing tools according.
1.4.2 Collection Of Data
Research data collected was mainly secondary data. Secondary data was collected
from newspaper articles, books, journals, periodicals and websites.
The information gathered in this study was obtained through qualitative research
from textbooks, websites, articles and interviews.
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1.4.3 Research Limitation
The study faces the limitation in respect to time as the research is carried for four
months
The questions are generalized which might not be true or relating to the respondent.
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1.5 MIND MAPPING
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PROS & CONS

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NEW ENTREPRENEURS APPROACH

COST & EFFECTIVENESS
CUSTOMER REACH
ONLINE CONTRAINTS
RISKS
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II. COMPANY PROFILE

GOLDROCK INTERNATIONALS PVT. LTD.
About:
They provide a wide range of services in terms of guiding and educating our customers in
different fields such as Finance, Marketing, Real Estate, Education and Training, Event
Management, Business Evaluation as well as Insurance Evaluation.
“You have a doubt? Ask us.”
Their excellent research team goes through each and every aspect of a given situation in
order to explore the various possibilities and hence arrive to a relevant conclusion. The reports
provided by them are much more reliable, precise and transparent.
They believe that every customer is different and has different preferences. They make
sure to consider these preferences and provide services best suitable to these individuals thus
providing a personalized experience.
They have experts from various fields that make it possible for us to provide such a wide
range of services.
They started our business with providing financial services and have now diversified to
various other fields. They constantly strive to provide the best services to our clients in diverse
fields.
Our primary initiative is to educate the common man about the know – how of financial
markets, equity, stocks etc. so that their hard earned money is not lost due to mere ignorance of
knowledge of the financial market. Hence, they have formulated a vocational educational module
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that, they believe, shall help the common man gain thorough knowledge about how the market
works.
History:
It all started in the year 2009, the same year in which the stock market crashed and
recession took place. A bunch of students from St. Andrew’s College, Mumbai were enjoying
their meal in the college canteen and casually discussing about the stock market- what went
wrong? How it could have been avoided? How people lost their money due to poor decision
making? Etc.
Then randomly we came up with the idea of starting our own venture in order to educate
the customers about how to select the right investment plan.
Initially, we all were quite intrigued by the idea and showed a lot of interest and each one
of us supported with more ideas. All students met a number of times but couldn't formulate a
proper business plan and could not proceed due to capital investment. Many people wanted to
join the team but couldn't stay till the end.
However, the idea still survived in the minds of few of us and after much wandering and
going back and forth a number of times, finally after 4 years, the plan was ready with some
investments to the business. But, they still couldn’t afford a physical office. So we started off the
business online with our initial website named goldrockfinancials.com
On 1st June, 2014 the office was inaugurated and our journey began from there....
Vision:
"To be the most reliable company in the eyes of customers in providing accurate and transparent
information and to educate them in financial decision making,"
Products:
 Finance
 Equity
 Mutual Fund
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 SIP
 Debt
 Commodities
 Forex
 Marketing
 Digital marketing
 Outdoor Marketing
 Education
 Training
 Seminars
 Trading Guide
 Terminologies
2.1 The Interview:
The founder & director of Goldrock Internationals was asked to express his view on
online marketing.
How effective is it in terms of a new business with less capital? Does it provide the
desired results?
Here are his views on the same-
“Online Marketing or Internet marketing is a very important tool to do marketing. The cost
involved in online marketing is cost effective and reaches many people in different social
networking sites and search engines. Today our company has invested only in digital marketing
and website more than its interior designing. It’s not about how much we spend on
advertisement; it’s all about how we manage our advertisements based on the viewer’s presence
online every day. The recognition and brand awareness is easily created through online
marketing which can be created in very short time compare to outdoor advertisement. The reach
of our company to millions of people in just one click is the best part of online marketing. The
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transparency of online marketing helps in understanding the total productivity or output

generated through the campaign.
If you ask me about online marketing I will diversify it into On – Page Marketing and Off – Page
Marketing. Both are equally important, but on page marketing is sustainable as it can’t be
changed. However, Off – Page marketing like social media and search engine marketing
becomes little expensive and the productivity is getting reduced over a period of time. Social
media helps you to put something on your viewer’s minds that your company still exists with
help of updates and posts. The business generated out of social media slowly sliding down and
companies shifting from website based business to application based business.
So if something else comes in the future which is more productive, no entrepreneur will refuse
to switch. We are more flexible in trying new advertisement and marketing tool to expand our
business.”
- Mr. Nixon George, Founder & Diretor

Goldrock International Pvt. Ltd.
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III. INTRODUCTION TO DIGITAL MARKETING

3.1 Definition
Digital marketing is an umbrella term for the targeted, measurable, and

interactive marketing of products or services using digital technologies to reach and convert
leads into customers.
The key objective is to promote brands, build preference and increase sales through
various digital marketing techniques. It is embodied by an extensive selection of service, product
and brand marketing tactics, which mainly use the Internet as a core promotional medium, in
addition to mobile and traditional TV and radio.
Digital marketing concepts and practice are evolving tremendously among several
industries, especially by the leading companies among each industry utilizing the mass reach of
digital tools and social media platforms, benefiting from the possibility to create individually
tailored approach that can achieved at a very productive cost
Digital marketing activities are search engine optimization (SEO), search engine

marketing (SEM) , content marketing, influencer marketing, content automation, campaign
marketing, and e-commerce marketing, social media marketing, e-mail direct marketing, display
advertising, e–books, optical disks and games, and any other form of digital media.
It also extends to non-Internet channels that provide digital media, such as mobile
phones (SMS and MMS), callback and on-hold mobile ring tones.
According to the Digital Marketing Institute, Digital Marketing is the use of digital

channels to promote or market products and services to consumers and businesses.
3.2 History
The term 'digital marketing' was first used in the 1990s. In the 2000s and the 2010s,
digital marketing became more sophisticated as an effective way to create a relationship with the
consumer that has depth and relevance.
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While the term 'digital marketing' may not have been used until the 1990s, digital
marketing itself has roots to the mid-1980s when the SoftAd Group, now ChannelNet developed
advertising campaigns for several major automobile companies, wherein people would send in
reader reply cards found in magazines and receive in return floppy disks that contained
multimedia content promoting various cars and offering free test drives.
The rapid evolution of digital media has created new opportunities and avenues for
advertising and marketing. Fueled by the proliferation of devices to access digital media, this has
led to the exponential growth of digital advertising.
In 2012 and 2013 statistics showed digital marketing remained a growing field.
Digital media growth is estimated at 4.5 trillion online ads served annually with digital
media spend at 48% growth in 2010. An increasing portion of advertising stems from businesses
employing Online Behavioral Advertising (OBA) to tailor advertising for Internet users.
Though an innovative resource, OBA raises concern with regards to consumer privacy
and data protection. Such implications are important considerations for responsible
communications. Digital marketing is often referred to as 'online marketing', 'internet marketing'
or 'web marketing'.
The term 'digital marketing' has grown in popularity over time, particularly in certain
countries. In the USA 'online marketing' is still prevalent, in Italy is referred as 'web marketing'
but in the UK and worldwide, 'digital marketing' has become the most common term, especially
after the year 2013.
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3.3 Latest Developments and Strategies
As digital marketing is dependent on technology which is ever-evolving and fast-

changing, the same features should be expected from digital marketing developments and
strategies. This portion is an attempt to qualify or segregate the notable highlights existing and
being used as of press time.
Segmentation: More focus has been placed on segmentation within digital marketing, in
order to target specific markets in both business to business and business to consumer sectors.
I. Influencer Marketing: Important nodes are identified within related

communities, known as influencers. This is becoming an important concept in
digital targeting. It is possible to reach influencers via paid advertising, such as
Facebook Advertising or Google Adwords campaigns, or through sophisticated
sCRM (social customer relationship management) software, such as SAP C4C,
Microsoft Dynamics, Sage CRM and Salesforce CRM. Many universities now
focus, at Masters Level, on engagement strategies for influencers.
To summarize, Pull digital marketing is characterized by consumers actively seeking

marketing content while Push digital marketing occurs when marketers send messages without
that content being actively sought by the recipients.
II. Online Behavioural Advertising: Online Behavioural Advertising refers to the

practice of collecting information about a user’s online activity over time, “on
a particular device and across different, unrelated websites, in order to deliver
advertisements tailored to that user’s interests and preferences.
III. Collaborative Environment: A collaborative environment can be set up

between the organization, the technology service provider, and the digital
agencies to optimize effort, resource sharing, reusability and communications.
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An important consideration today while deciding on strategy is that the digital tools have
democratized the promotional landscape.
3.4 Digital Marketing Channels
Digital Marketing is facilitated by multiple channels, As an advertiser one's core

objective is to find channels which result in maximum two way communication and a better
overall ROI for the brand. There are multiple online marketing channels available namely;
1. Affiliate marketing
2. Display Advertising
3. Email marketing
4. Search Marketing
5. Social Media
6. Social Networking
Multi-channel communications
Push and pull message technologies can be used in conjunction.
3.5 Self-regulation
The ICC Code has integrated rules that apply to marketing communications using digital
interactive media throughout the guidelines. There is also an entirely updated section dealing
with issues specific to digital interactive media techniques and platforms. Code self-regulation
on use of digital interactive media includes:
 Clear and transparent mechanisms to enable consumers to choose not to have their data
collected for advertising or marketing purposes;
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 Clear indication that a social network site is commercial and is under the control or
influence of a marketer;
 Limits are set so that marketers communicate directly only when there are reasonable
grounds to believe that the consumer has an interest in what is being offered;
 Respect for the rules and standards of acceptable commercial behaviour in social
networks and the posting of marketing messages only when the forum or site has clearly
indicated its willingness to receive them;
 Special attention and protection for children.
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IV. ALL ABOUT ONLINE / INTERNET MARKETING
Online advertising, also called online marketing or Internet advertising is a form of

marketing and advertising which uses the Internet to deliver promotional marketing messages to
consumers. It includes email marketing, search engine marketing (SEM), social media
marketing, many types of display advertising (including web banner advertising), and mobile
advertising.
Like other advertising media, online advertising frequently involves both a publisher,
who integrates advertisements into its online content, and an advertiser, who provides the
advertisements to be displayed on the publisher's content.
Other potential participants include advertising agencies who help generate and place the
ad copy, an ad server which technologically delivers the ad and tracks statistics, and advertising
affiliates who do independent promotional work for the advertiser.
In 2011, Internet advertising revenues in the United States surpassed those of cable
television and nearly exceeded those of broadcast television. In 2013, Internet advertising
revenues in the United States totaled $42.8 billion, a 17% increase over the $36.57 billion in
revenues in 2012.
U.S. internet ad revenue hit a historic high of $20.1 billion for the first half of 2013, up
18% over the same period in 2012. Online advertising is widely used across virtually all industry
sectors.
Many common online advertising practices are controversial and increasingly subject to
regulation. Online ad revenues may not adequately replace other publishers' revenue streams.
Declining ad revenue has led some publishers to hide their content behind pay walls.
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4.1 History
In early days of the Internet, online advertising was mostly prohibited. For
example, two of the predecessor networks to the Internet, ARPANET and NSFNet, had
"acceptable use policies" that banned network "use for commercial activities by for-profit
institutions". The NSFNet began phasing out its commercial use ban in 1991.
Email
The first widely publicized example of online advertising was conducted via
electronic mail. On 3 May 1978, a marketer from DEC (Digital Equipment
Corporation), Gary Thuerk, sent an email to most of the ARPANET's American west
coast users, advertising an open house for a new model of a DEC computer.
Despite the prevailing acceptable use policies, electronic mail marketing rapidly
expanded and eventually became known as “spam.”
The first known large-scale non-commercial spam message was sent on 18

January 1994 by an Andrews University system administrator, by cross-posting a
religious message to all USENET newsgroups.
Four months later, Laurence Canter and Martha Siegel, partners in a law firm,
broadly promoted their legal services in a USENET posting titled "Green Card Lottery –
Final One?” Canter and Siegel's Green Card USENET spam raised the profile of online
advertising, stimulating widespread interest in advertising via both Usenet and traditional
email. More recently, spam has evolved into a more industrial operation,
wherespammers use armies of virus-infected computers (botnets) to send spam remotely.
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Display ads
Online banner advertising began in the early 1990s as page owners sought
additional revenue streams to support their content. Commercial online
service Prodigy displayed banners at the bottom of the screen to promote Sears products.
The first clickable web ad was sold by Global Network Navigator in 1993 to a
Silicon Valley law firm. In 1994, web banner advertising became mainstream
when HotWired, the online component of Wired Magazine, sold banner ads
to AT&T and other companies.
The first AT&T ad on HotWired had a 44% click-through rate, and instead of
directing clickers to AT&T's website, the ad linked to an online tour of seven of the
world's most acclaimed art museums.
Search ads
GoTo.com (renamed Overture in 2001, and acquired by Yahoo! in 2003) created

the first search advertising keyword auction in 1998.
Google launched its "AdWords" search advertising program in 2000and

introduced quality-based ranking allocation in 2002, which sorts search
advertisements by a combination of bid price and searchers' likeliness to click on the
ads.
Recent trends
More recently, companies have sought to merge their advertising messages into
editorial content or valuable services.
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Examples include Red Bull's Red Bull Media House streaming Felix

Baumgartner's jump from space online, Coca-Cola's online magazines, and Nike's free
applications for performance tracking.
Advertisers are also embracing social media and mobile advertising; mobile ad

spending has grown 90% each year from 2010 to 2013.
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4.2 Types Of Online Marketing
 Display advertising:
Display advertising conveys its advertising message visually using text, logos,

animations, videos, photographs, or other graphics. Display advertisers frequently target users
with particular traits to increase the ads' effect.
Online advertisers (typically through their ad servers) often use cookies, which are
unique identifiers of specific computers, to decide which ads to serve to a particular consumer.
Cookies can track whether a user left a page without buying anything, so the advertiser can
later retarget the user with ads from the site the user visited.
As advertisers collect data across multiple external websites about a user's online activity,
they can create a detailed picture of the user's interests to deliver even more targeted advertising.
This aggregation of data is called behavioral targeting.
Advertisers can also target their audience by using contextual and semantic advertising to

deliver display ads related to the content of the web page where the ads appear. Retargeting,
behavioral targeting, and contextual advertising all are designed to increase an advertiser's return
on investment, or ROI, over untargeted ads.
Advertisers may also deliver ads based on a user's suspected geography

through geotargeting. A user's IP address communicates some geographic information (at
minimum, the user's country or general region).
The geographic information from an IP can be supplemented and refined with other
proxies or information to narrow the range of possible locations. For example, with mobile
devices, advertisers can sometimes use a phone's GPS receiver or the location of nearby mobile
towers. Cookies and other persistent data on a user's machine may provide help narrowing a
user's location further.
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 Web banner advertising
Web banners or banner ads typically are graphical ads displayed within a web page.
Many banner ads are delivered by a central ad server.
Banner ads can use rich media to incorporate video, audio, animations, buttons, forms, or
other interactive elements using Java applets, HTML5, Adobe Flash, and other programs.
 Frame ad (traditional banner)
Frame ads were the first form of web banners. The colloquial usage of "banner ads" often
refers to traditional frame ads. Website publishers incorporate frame ads by setting aside a
particular space on the web page. The Interactive Advertising Bureau's Ad Unit Guidelines
proposes standardized pixel dimensions for ad units.
 Pop-ups/pop-unders
A pop-up ad is displayed in a new web browser window that opens above a website
visitor's initial browser window. A pop-under ad opens a new browser window under a website
visitor's initial browser window.
 Floating ad
A floating ad, or overlay ad, is a type of rich media advertisement that appears
superimposed over the requested website's content. Floating ads may disappear or become less
obtrusive after a preset time period.
 Expanding ad
An expanding ad is a rich media frame ad that changes dimensions upon a predefined

condition, such as a preset amount of time a visitor spends on a webpage, the user's click on the
ad, or the user's mouse movement over the ad. Expanding ads allow advertisers to fit more
information into a restricted ad space.
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 Trick banners
A trick banner is a banner ad where the ad copy imitates some screen element users
commonly encounter, such as an operating system message or popular application message, to
induce ad clicks.
Trick banners typically do not mention the advertiser in the initial ad, and thus they are a
form of bait-and-switch. Trick banners commonly attract a higher-than-average click-through
rate, but tricked users may resent the advertiser for deceiving them.
 News Feed Ads
"News Feed Ads", also called "Sponsored Stories", "Boosted Posts", typically exist on
Social Media Platforms that offer a steady stream of information updates ("news feed") in
regulated formats (i.e. in similar sized small boxes with a uniform style). Those advertisements
are intertwined with non-promoted news that the users are reading through. Those
advertisements can be of any content, such as promoting a website, a fan page, an app, or a
product.
Some examples are: Facebook's "Sponsored Stories", LinkedIn's "Sponsored

Updates", and Twitter's "Promoted Tweets".
This display ads format falls into its own category because unlike banner ads which are
quite distinguishable, News Feed Ads' format blends well into non-paid news updates. This
format of online advertisement yields much higher click-through rates than traditional display
ads.
 Interstitial
An interstitial ad displays before a user can access requested content, sometimes while
the user is waiting for the content to load. Interstitial ads are a form of interruption marketing.
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 Text ads
A text ad displays text-based hyperlinks. Text-based ads may display separately from a
web page's primary content, or they can be embedded by hyperlinking individual words or
phrases to advertiser's websites.
Text ads may also be delivered through email marketing or text message marketing. Text-
based ads often render faster than graphical ads and can be harder for ad-blocking software to
block.
 Search engine marketing (SEM)

Search engine marketing, or SEM, is designed to increase a website's visibility in search
engine results pages (SERPs). Search engines provide sponsored results and organic (non-
sponsored) results based on a web searcher's query.
Search engines often employ visual cues to differentiate sponsored results from organic
results. Search engine marketing includes all of an advertiser's actions to make a website's listing
more prominent for topical keywords.
 Search engine optimization (SEO)

Search engine optimization, or SEO, attempts to improve a website's organic search
rankings in SERPs by increasing the website content's relevance to search terms. Search engines
regularly update their algorithms to penalize poor quality sites that try to game their rankings,
making optimization a moving target for advertisers. Many vendors offer SEO services.
 Sponsored search
Sponsored search (also called sponsored links, search ads, or paid search) allows
advertisers to be included in the sponsored results of a search for selected keywords. Search ads
are often sold via real-time auctions, where advertisers bid on keywords.
In addition to setting a maximum price per keyword, bids may include time, language,
geographical, and other constraints. Search engines originally sold listings in order of highest
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bids. Modern search engines rank sponsored listings based on a combination of bid price,
expected click-through rate, keyword relevancy and site quality.
 Social media marketing
Social media marketing is commercial promotion conducted through social

media websites. Many companies promote their products by posting frequent updates and
providing special offers through their social media profiles.
 Mobile advertising
Mobile advertising is ad copy delivered through wireless mobile devices such

as smartphones, feature phones, or tablet computers.
Mobile advertising may take the form of static or rich media display ads, SMS (Short
Message Service) or MMS (Multimedia Messaging Service) ads, mobile search ads, advertising
within mobile websites, or ads within mobile applications or games (such as interstitial ads,
“advergaming,” or application sponsorship).
Industry groups such as the Mobile Marketing Association have attempted to standardize
mobile ad unit specifications, similar to the IAB's efforts for general online advertising.
Mobile advertising is growing rapidly for several reasons. There are more mobile devices
in the field, connectivity speeds have improved (which, among other things, allows for richer
media ads to be served quickly), screen resolutions have advanced, mobile publishers are
becoming more sophisticated about incorporating ads, and consumers are using mobile devices
more extensively.
The Interactive Advertising Bureau predicts continued growth in mobile advertising with
the adoption of location-based targeting and other technological features not available or relevant
on personal computers.
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In July 2014 Facebook reported advertising revenue for the June 2014 quarter of $2.68
billion, an increase of 67 percent over the second quarter of 2013. Of that, mobile advertising
revenue accounted for around 62 percent, an increase of 41 percent on the previous year.
 Email advertising
Email advertising is ad copy comprising an entire email or a portion of an email

message. Email marketing may be unsolicited, in which case the sender may give the recipient
an option to opt out of future emails, or it may be sent with the recipient's prior consent (opt-in).
 Chat advertising
As opposed to static messaging, chat advertising refers to real time messages dropped to
users on certain sites.
This is done by the usage of live chat software or tracking applications installed within
certain websites with the operating personnel behind the site often dropping adverts on the traffic
surfing around the sites. In reality this is a subset of the email advertising but different because of
its time window.
 Online classified advertising
Online classified advertising is advertising posted online in a categorical listing of

specific products or services. Examples include online job boards, online real estate listings,
automotive listings, online yellow pages, and online auction-based
listings. Craigslist and eBay are two prominent providers of online classified listings.
 Adware
Adware is software that, once installed, automatically displays advertisements on a user's

computer. The ads may appear in the software itself, integrated into web pages visited by the
user, or in pop-ups/pop-unders. Adware installed without the user's permission is a type
of malware.
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 Affiliate marketing
Affiliate marketing (sometimes called lead generation) occurs when advertisers organize
third parties to generate potential customers for them. Third-party affiliates receive payment
based on sales generated through their promotion.
Affiliate marketers generate traffic to offers from affiliate networks, and when the
desired action is taken by the visitor, the affiliate earns a commission. These desired actions can
be an email submission, a phone call, filling out an online form, or an online order being
completed.
 Content Marketing
Content marketing is any marketing that involves the creation and sharing of media and
publishing content in order to acquire and retain customers. This information can be presented in
a variety of formats, including blogs, news, video, white papers, e-books, infographics, case
studies, how-to guides and more.
Considering that most marketing involves some form of published media, it is almost
(though not entirely) redundant to call 'content marketing' anything other than simply
'marketing'. There are, of course, other forms of marketing (in-person marketing, telephone-
based marketing, word of mouth marketing, etc.) where the label is more useful for identifying
the type of marketing. However, even these are usually merely presenting content that they are
marketing as information in a way that is different from traditional print, radio, TV, film, email,
or web media.
 Online marketing platform
Online marketing platform (OMP) is an integrated web-based platform that combines the

benefits of a business directory, local search engine, search engine optimisation (SEO)
tool, customer relationship management (CRM) package and content management
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system (CMS). Ebay and Amazon are used as online marketing and logistics

management platforms.
On Facebook, Twitter, YouTube, Pinterest, LinkedIn, and other Social

Media, retail online marketing is also used. Online business marketing platforms such
as Marketo, Aprimo, MarketBright and Pardot have been bought by major IT
companies (Eloqua-Oracle,Neolane-Adobe and Unica-IBM).
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4.3 Compensation Methods
Advertisers and publishers use a wide range of payment calculation methods. In 2012,
advertisers calculated 32% of online advertising transactions on a cost-per-impression basis, 66%
on customer performance (e.g. cost per click or cost per acquisition), and 2% on hybrids of
impression and performance methods.
 CPM (cost per mile)]
Cost per mile, often abbreviated to CPM, means that advertisers pay for every thousand
displays of their message to potential customers (mille is the Latin word for thousand). In the
online context, ad displays are usually called "impressions." Definitions of an "impression" vary
among publishers, and some impressions may not be charged because they don't represent a new
exposure to an actual customer. Advertisers can use technologies such as web bugs to verify if an
impression are actually delivered.
Publishers use a variety of techniques to increase page views, such as dividing content
across multiple pages, repurposing someone else's content, using sensational titles, or publishing
tabloid or sexual content.
CPM advertising is susceptible to "impression fraud,” and advertisers who want visitors
to their sites may not find per-impression payments a good proxy for the results they desire.
 CPC (cost per click)
CPC (Cost Per Click) or PPC (Pay per click) means advertisers pay each time a user
clicks on the ad. CPC advertising works well when advertisers want visitors to their sites, but it's
a less accurate measurement for advertisers looking to build brand awareness. CPC's market
share has grown each year since its introduction, eclipsing CPM to dominate two-thirds of all
online advertising compensation methods.
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Like impressions, not all recorded clicks are valuable to advertisers. GoldSpot Media
reported that up to 50% of clicks on static mobile banner ads are accidental and resulted in
redirected visitors leaving the new site immediately.
 CPE (cost per engagement)
Cost per engagement aims to track not just that an ad unit loaded on the page (i.e.,
an impression was served), but also that the viewer actually saw and/or interacted with the ad.
 CPV (cost per view)
Cost per view video advertising. Both Google and TubeMogul endorsed this standardized
CPV metric to the IAB's (Interactive Advertising Bureau) Digital Video Committee, and it's
garnering a notable amount of industry support.
 Other Performance-Based Compensation
CPA (Cost Per Action or Cost Per Acquisition) or PPP (Pay Per Performance) advertising
means the advertiser pays for the number of users who perform a desired activity, such as
completing a purchase or filling out a registration form. Performance-based compensation can
also incorporate revenue sharing, where publishers earn a percentage of the advertiser's profits
made as a result of the ad. Performance-based compensation shifts the risk of failed advertising
onto publishers.
 Fixed cost
Fixed cost compensation means advertisers pay a fixed cost for delivery of ads online, usually
over a specified time period, irrespective of the ad's visibility or users' response to it. One
examples is CPD (cost per day) where advertisers pay a fixed cost for publishing an ad for a day
irrespective of impressions served or clicks.
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4.4 Benefits of online advertising

 Cost
The low costs of electronic communication reduce the cost of displaying online
advertisements compared to offline ads. Online advertising, and in particular social media,
provides a low-cost means for advertisers to engage with large established
communities. Advertising online offers better returns than in other media.
 Measurability
Online advertisers can collect data on their ads' effectiveness, such as the size of the
potential audience or actual audience response, how a visitor reached their advertisement,
whether the advertisement resulted in a sale, and whether an ad actually loaded within a visitor's
view. This helps online advertisers improve their ad campaigns over time.
 Formatting
Advertisers have a wide variety of ways of presenting their promotional messages,
including the ability to convey images, video, audio, and links. Unlike many offline ads, online
ads also can be interactive. For example, some ads let users input queries or let users follow the
advertiser on social media. Online ads can even incorporate games.
 Targeting
Publishers can offer advertisers the ability to reach customizable and narrow market
segments for targeted advertising. Online advertising may use geo-targeting to display relevant
advertisements to the user's geography. Advertisers can customize each individual ad to a
particular user based on the user's previous preferences. Advertisers can also track whether a
visitor has already seen a particular ad in order to reduce unwanted repetitious exposures and
provide adequate time gaps between exposures.
 Coverage
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Online advertising can reach nearly every global market, and online advertising
influences offline sales.
 Speed
Once ad design is complete, online ads can be deployed immediately. The delivery of
online ads does not need to be linked to the publisher's publication schedule. Furthermore, online
advertisers can modify or replace ad copy more rapidly than their offline counterparts.
4.5 Concerns
 Banner blindness
Eye-tracking studies have shown that Internet users often ignore web page zones likely to
contain display ads (sometimes called "banner blindness"), and this problem is worse online than
in offline media. On the other hand, studies suggest that even those ads "ignored" by the users
may influence the user subconsciously.
 Fraud on the advertiser
There are numerous ways that advertisers can be overcharged for their advertising. For
example, click fraud occurs when a publisher or third parties click (manually or through
automated means) on a CPC ad with no legitimate buying intent. For example, click fraud can
occur when a competitor clicks on ads to deplete its rival's advertising budget, or when
publishers attempt to manufacture revenue.
Click fraud is especially associated with pornography sites. In 2011, certain scamming
porn websites launched dozens of hidden pages on each visitor's computer, forcing the visitor's
computer to click on hundreds of paid links without the visitor's knowledge.
As with offline publications, online impression fraud can occur when publishers overstate
the number of ad impressions they have delivered to their advertisers. To combat impression
fraud, several publishing and advertising industry associations are developing ways to count
online impressions credibly.
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 Technological variations
Heterogeneous clients
Because users have different operating systems, web browsers and computer hardware
(including mobile devices and different screen sizes), online ads may appear to users differently
from how the advertiser intended, or the ads may not display properly at all. A
2012 comScore study revealed that, on average, 31% of ads were not "in-view" when rendered,
meaning they never had an opportunity to be seen. Rich media ads create even greater
compatibility problems, as some developers may use competing (and exclusive) software to
render the ads (see e.g. Comparison of HTML 5 and Flash).
Furthermore, advertisers may encounter legal problems if legally required information

doesn't actually display to users, even if that failure is due to technological heterogeneity. In the
United States, the FTC has released a set of guidelines indicating that it's the advertisers'
responsibility to ensure the ads display any required disclosures or disclaimers, irrespective of
the users' technology.
Ad-blocking
Ad-blocking, or ad filtering, means the ads do not appear to the user because the user
uses technology to screen out ads. Many browsers block unsolicited pop-up ads by default. Other
software programs or browser add-ons may also block the loading of ads, or block elements on a
page with behaviors characteristic of ads (e.g. HTML autoplay of both audio and video).
Approximately 9% of all online page views come from browsers with ad-blocking software
installed, and some publishers have 40%+ of their visitors using ad-blockers.
Anti-targeting technologies
Some web browsers offer privacy modes where users can hide information about
themselves from publishers and advertisers. Among other consequences, advertisers can't use
cookies to serve targeted ads to private browsers. Most major browsers have incorporated Do
Not Track options into their browser headers, but the regulations currently are only enforced by
the honor system.
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 Privacy concerns
The collection of user information by publishers and advertisers has raised consumer
concerns about their privacy. Sixty percent of Internet users would use Do Not Track technology
to block all collection of information if given an opportunity. Over half of all Google and
Facebook users are concerned about their privacy when using Google and Facebook, according
to Gallup.
Many consumers have reservations about by online behavioral targeting. By tracking

users' online activities, advertisers are able to understand consumers quite well. Advertisers often
use technology, such as web bugs and respawning cookies, to maximizing their abilities to track
consumers. According to a 2011 survey conducted by Harris Interactive, over half of Internet
users had a negative impression of online behavioral advertising, and forty percent feared that
their personally-identifiable information had been shared with advertisers without their
consent. Consumers can be especially troubled by advertisers targeting them based on sensitive
information, such as financial or health status.
 Trustworthiness of advertisers
Scammers can take advantage of consumers' difficulties verifying an online persona's

identity, leading to artifices like phishing (where scam emails look identical to those from a well-
known brand owner) and confidence schemes like the Nigerian "419" scam. The Internet Crime
Complaint Center received 289,874 complaints in 2012, totaling over half a billion dollars in
losses, most of which originated with scam ads.
Consumers also face malware risks, i.e. malvertising, when interacting with online
advertising. Cisco's 2013 Annual Security Report revealed that clicking on ads was 182 times
more likely to install a virus on a user's computer than surfing the Internet for porn. For example,
in August 2014 Yahoo's advertising network reportedly saw cases of infection of a variant
of Cryptolocker ransomware.
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 Spam
The Internet's low cost of disseminating advertising contributes to spam, especially by large-
scale spammers. Numerous efforts have been undertaken to combat spam, ranging from
blacklists to regulatorily-required labeling to content filters, but most of those efforts have
adverse collateral effects, such as mistaken filtering.
 Privacy and data collection
Privacy regulation can require users' consent before an advertiser can track the user or
communicate with the user. However, affirmative consent ("opt in") can be difficult and
expensive to obtain. Industry participants often prefer other regulatory schemes.
Different jurisdictions have taken different approaches to privacy issues with advertising.
The United States has specific restrictions on online tracking of children in the Children's Online
Privacy Protection Act(COPPA), and the FTC has recently expanded its interpretation of
COPPA to include requiring ad networks to obtain parental consent before knowingly tracking
kids.
In contrast, the European Union's "Privacy and Electronic Communications Directive"

restricts websites' ability to use consumer data much more comprehensively. The EU limitations
restrict targeting by online advertisers; researchers have estimated online advertising
effectiveness decreases on average by around 65% in Europe relative to the rest of the world.
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V. 7 p’s of marketing on the internet advertising

The four P's - Product, Price, Place and Promotion have long been associated with
Advertising, but things have changed on the Internet. So along with a change in the nature of the
four P’s there are three new P’s which are relevant to the internet advertiser.
1. The Product on the Internet usually changes form online, and the user experiences it
electronically, in the form of text, images and multimedia. Physical goods are usually presented
in the form of a detailed online catalogue that the customer can browse through.
Technology allows the user to virtually touch and feel the product on the Internet - rotate
it, zoom in or zoom out and even visualize the product in different configurations and
combination. The example of the above can be seen at dell.com where the company offers the
user to virtually feel every aspect of their product before they go into a buy decision.
Content and software are two avatars of digitized products that can be even distributed
over the Internet. On the Internet, E-Advertising will be based more on the product qualities
rather than on the price. Every company will be able to bring down the cost of its products and
hence competition will not be on price. It will rather be on the uniqueness of the product.
To be able to attract the customers and retain them, the company will have to provide
nouvelle and distinct products that forces the net users to purchase and come back for more.
2. The Price has been drastically changed over the Internet. It lets the buyer decides the
price. Also it gives the buyers information about multiple sellers selling the same product. It
leads to best possible deal for the buyers in terms of price.
A website named Priceline.com is extremely popular as its compares the price of many
airlines and offers the least price to the buyer. The very famous bazee.com now known as
ebay.in follows the same principles. Pricing is dynamic over the Internet.
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3. The Place revolves around setting up of a Advertising channel to reach the customer.
Internet serves as a direct Advertising channel that allows the producer to reach the customer
directly.
The elimination of the intermediate channel allows the producer to pass the reduced
distribution cost to the customer in the form of discounts. Dell Computers have used this strategy
very effectively and hence they have been able to reduce their prices of their laptops drastically
and reaped huge profits.
4. Promotion is extremely necessary to entice the customer to its website, as there are
currently more than one billion web pages. Promoting a website includes both online and offline
strategies. Online strategies include search engine optimization, banner ads, multiple points of
entry, viral Advertising, strategic partnership and affiliate Advertising.
Presently, the cyberspace is already cluttered with thousands of sites probably selling
similar products. For the customers to know of the Company’s existence and to garner
information on the kind of products or services that the company is offering, promotion has to be
carried out.
There can be traded links or banner advertisements for the same. Also the traditional
mediums like print, outdoor advertising and television can be used to spread awareness. Email
campaigns and spamming the Chat rooms on almost every server has been exploited to the
maximum for the cause of promoting their website.
5. Presentation- The presentation of the online business needs to have an easy to use
navigation. The look and the feel of the web site should be based on corporate logos and
standards. About 80% of the people read only 20% of the web page. Therefore, the web page
should not be cluttered with a lot of information.
Also, simple but powerful navigational aids on all web pages like search engines make it
easy for customer to find their way around. The principle of K.I.S.S ( Keep it simple stupid ) is
the most important factor that has to be considered while presenting the online business
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6. Processes- Customer supports needs to be integrated into the online web site. A sales
service that will be able to answer the questions of their customers fast and in a reliable manner
is necessary.
To further enhance after sales service, customers must be able to find out about their
order status after the sale has been made. For e.g. FedEx (www.fedex.com), the overnight
Courier Company allows its customers to keep track of the parcel and they are well informed
about the present whereabouts of their package.
Similar variants have been used by the Govt of India for its Speed post and Registered Ad
services where you can keep a track of your post by entering the code that has been issued to
you.
7. Personalization- Using the latest software from Broad-Vision and others, it is possible
to customize the entire web site for every single user, without any additional costs.
The mass customization allows the company to create web pages products and services
that suit the requirement of the user. A customized web page does not only include the preferred
layout of the customer but also a pre selection of goods the customer may be interested in. For
e.g. Yahoo! (www.yahoo.co.in) entered the Indian cyberspace and started its personalized
services.
A registered user of Yahoo can now personalize the front page with all the information he
needs. He can read the news of the world, add a tax calculator, see the weather forecasts of his
city and listen to his favorite songs and all this simultaneously.
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VI. ADVERTISING ON THE INTERNET: EMERGING

ISSUES
Internet might be a catchy advertising medium. But, there are quite a few issues that need
to be sorted out. Advertising on the Net is slowly catching on. In developed economies,
advertising on the Net accounts for anything between seven and 7.5 per cent of the total
advertising cake. Fine, how large is online advertising in India? Various estimates put the size of
online advertising in India between Rs 24 crore and Rs 29 crore, which is much less than one per
cent of the total advertising cake.
Why is online advertising so small in India? Why aren't the advertisers putting their
money on Net advertising? For instance, Hindustan Lever’s advertising budget is upwards of Rs
700 crore and out of this; the company spends not more than Rs 25 lakh on online advertising. Is
this because Net penetration in India is not deeper? Yes, to an extent.
 The cost factor

Absence of a monitoring mechanism apart, online advertising has to live with another
hurdle. Many advertisers are not aware of the benefits online advertising can offer over the
traditional media. What needs to be done? The advertising industry should take efforts to educate
potential Net advertisers about the advantages of advertising on the Net. Some steps have already
been taken in this direction.
For instance, advertising networks such as Media2Net, Right serve and Media turf are
doing their bid to fuel online advertising in India. Right serve of Hughes Software is said to be
spending nearly Rs two crore on seminars, advertisements and road shows for creating awareness
about the online advertising concept.
There is another reason why advertising on the Net has not really picked up. And that is
the perception that advertising on the Net is expensive. Is this perception right? Compare the cost
of a banner advertisement on the Net with a television commercial. Though the cost of an
advertising campaign on the Net could be anywhere between Rs 15,000 and Rs 1.5 lakh,
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advertising in the press or television will cost upwards of Rs 50 lakh. Does this not make
advertising on the Net cheap? No.
For, whether advertising on the Net is cost-effective or not depends on the value per
advertising Rupee. That means, it is essential to express advertising costs on the Net in terms of
cost per thousand (CPT). "A thirty- second television commercial will cost between Rs 250 and
Rs 300 per thousand, while a ten-second banner on a reputed site such as Rediff.com will cost as
much as Rs 500 to Rs 1,000 per thousand."
The implication value per Rupee spent on advertising is higher in the case of television.
That is efficiency is higher in the case of television advertising, while in absolute terms
advertising costs are lower as far as the Net is concerned. Fine, but how are rates fixed for
advertising on the Net? It is a difficult poser considering the fact that rates for advertising on the
Net have no rationale behind them. For instance, Rediff.com just adopted the international rate
charged by Yahoo.com.
Other websites in India just took the Rediff.com's rate as a benchmark and adjusted th ir
rates accordingly. But, the issue here is this: since the number of Net users in India is limited
now, these Indian rates are not justified. What are the emerging trends as far as cost of online
advertising is concerned? Currently, rates for a simple banner advertisement on the Net need to
come down. Already, Media turf is working in this direction.
It wants to bring down the cost of Net advertising at least by 50 per cent. Media turf
believes that when the rates come down, volumes should go up. And that has been the
international experience. In the USA, when the rate for a full banner advertisement fell from US
$33.22 to US $30.52 per thousand impressions, online advertising outlays too rose during the
same period.
The wastage factor
There are other reasons why advertising on the Net is not currently seen by advertisers as
cost-effective. One of them is the quality of desired responses. In many cases, sums spent on
advertising on the Net have not been deployed properly. There are instances where
advertisements have just been lifted and put on the banner. Though there are many early adapters
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in India, there is a big gap between these adapters and the mainstream users. And most
advertisers have too small budgets for advertising on the Net to be bothered about wastages.
There could be wastages in online advertising, but one should not forget that interactivity
is the hallmark of online advertising and here it is possible to target the audience by demography,
psychography and technography. So, advertising agencies need to take into account these factors
while developing strategies.
But, wastages can be eliminated and online advertising can be made more effective
through various strategies. Some of them are: strategic tieups, sponsorships and banner
exchanges. For instance, the FMCG major Colgate-Palmolive has entered into a strategic tie-up
with the Calcutta-based FirstNet Solutions' portal Yantram.com for promoting its Fresh Energy
Gel toothpaste on the portal.
And Coca-Cola has appointed Hungama.com, an Indian portal for promotions and
contests, as its e-Advertising partner. Coca-Cola has gone ahead and launched a new Web
promotion dubbed Maaza Puzzle to promote its popular brand Maaza and has also kicked off a
series of e-promotions for the Hindi film "Hum To Mohabbat Karega". Meanwhile, tie-ups for
banner exchanges are also taking place. For instance, Bidorbuy.com has tied up with
Indiacar.com and Intel has sponsored a festival section on Satyam Online.
 Targeting imperatives
Accurate targeting is another strategy to eliminate wastages in online advertising.

Currently, such targeting based on parameters such as geographic location and search keywords
is possible. Yes, Satyam Online is offering customised solutions here and portals such as
Indiainfo.com and Rediff.com offer keyword targeting.
It is possible now to measure campaign performances on a real-time basis and make

necessary changes. Ad networks such as Rightserve are offering such services based on their
continuous online reports. Moreover, targeted advertisements based on the profile of users are
also possible. To make this possible, it is essential to have lists such as registered e-mail users
and such lists can offer profiles of users. But the question is how many sites in India have a large
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base of registered users? Perhaps Rediff.com has a base of eight lakh registered users and
Jobsahead.com has a base of about 1.50 lakh users.
Another way wastages can be eliminated is by having advertisements based on the

content of the site. Consider the example of an advertisement from Toyota Motor Sales on the
weather site Intellicast.com. This website for outdoor recreation enthusiasts has been running a
campaign for Toyota Motor Sales and this campaign depends on the weather.
If the weather is sunny, the solar is shown with the top down, and if it is cloudy or
raining, the top is shown up. How many such ads are visible on Indian websites? Profiling tools
too should help in cutting down wastages in online advertising. Mediaturf has gone a step further
by beta-testing an advertisement in a bid to gauge an user's behaviour, the number of times he
views an advertisement and his preferences in terms of content when he is surfing on a site.
Other waste-eliminating strategies for online advertising are: contextual selling using
demographic and psychographic data to match ads with content that fits and dynamic
customization or click stream analysis that helps to modify advertisements in real-time.
 Online Constraints
As efforts to eliminate wastages in online advertising take off; efforts are also needed to
eliminate the attendant constraints. In online advertising, one can stream audio and video
technologies together with faster bandwidths and delivery channels in a bid to present the same
idea with the use of sound, music and visual imagery and make interactions with the banner
possible.
But, this is not possible in India, thanks to the existing bandwidth problems. However,
soon bandwidth will cease to be an issue. Despite the bandwidth constraint, the Coco-Cola
television commercial is being aired in Zeenext.com. This initiative has been taken by Mediaturf
and a Bangalore-based software programmer, who have found a way to use the Net to air
commercials with the dial-up mode and thus overcoming the bandwidth constraint.
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Anyway, with massive investments coming in bandwidth, there could be a glut soon.
Sure, India has an advantage in online advertising, thanks to the fact that online advertising
depends so much on technology and software programming. So, the days of innovative banners
and convergence of real-time advertising are not far. But, effective online advertising calls for
skills in consumer and relationship management. The prospects are of course bright for online
advertising. E-commerce will only help the spread of online advertising. Estimates are that in a
couple of years online advertising could touch Rs 300 crore, two per cent of the total adspend in
the country. And Nasscom's estimates are that online advertising could touch Rs 750 crore by
2002.
 Product and service customization
Companies that have powerful brand awareness on the web all have sites that help
consumers do something – whether it’s configuring a computer system (www.dell.com) on-line
or offering personalized services like suburban railway pass ticket in Mumbai (www.rediff.com).
Consumer demand and expectations are forecast to drive made-to-order or customized

products with rapidly shrinking lead times. Products are configured, as customers want them to
be and provide a high level of reliability, excellent quality, and longer life spans. For e.g. ‘Dell’
computer (www.dell.com) has become a leading company in selling computers because of the
customization facility it provided on its site.
The consumers could build the own computer by ordering the own configuration. For e.g.
On Nike’s site (www.nike.com), the customer can become a registered user and customize the
shoe of his choice. The customization highlights the value-for-money aspect and induces the
consumer to buy a product that meets his own requirement.
 Understanding the Internet Customers
Now to be able to use the seven P’s effectively in order to achieve the predefined goals of
any organization it is imperative to understand the customers. Customization will only be truly
effective if we understand our customers and their true needs.
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Before adapting Advertising practices to the Internet, the advertiser needs to understand
the characteristics of the online customers. The Net users can be classified into five categories
depending upon their intention of using the Internet.
The five categories of users are:
 Directed Information Seekers: They require specific, timely and relevant information about
the products and services being offered.
 Undirected Information Seekers: These users require something interesting and useful.
Something that can give them an edge, advantage, insight or even a pleasant surprise.
 Bargain Hunters: They are of two kind. One who look for free items on the internet and other
who are seeking better deals, higher discounts etc.
 Entertainment Seekers: they see the Web as an entertainment medium of vast breath and
potential and want to explore the medium before the mass gets there.
 Directed Buyers: They want to buy something - now. They are sure what they require and just
log on to the Web to purchase the item.
 The Evolving Value Propositions
The value propositions of goods and services offered in the physical world differ
pointedly from those in the digital world. The ultimate aim of the universal advertiser is to
provide a complete end-to-end consumer experience---right from the promise to satisfy his need
to its delivery.
But the physical world offers only “Point Solutions” which is basically a solution of his
needs in terms of functional benefits. A credit card, for instance, allows consumers to satisfy the
immediate necessity of setting a transaction. But today’s consumers are also looking for process
and relationship benefit---book referrals at no extra cost or e-mail reminders.
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The physical world is not able to deliver these benefits because of gaps in time, space and
memory. The web, on the other hand provides all of these and more (“reverse Advertising, for
example, where consumers seek out vendors rather than the other way around”) by giving the
company the ownership and control over all interactions with the consumer.
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 The Evolving Risk Profiles
The on-line customer is not a fickle customer, but he is a risky proposition nevertheless.
This is because all his online experience will influence consumer perceptions about the brand.
If a consumer buys a product from a retailer and is involved in an unhappy purchase

experience at the store, he will punish the store. But if the same experience were to occur to him
at the company’s web site, the consequences would be disastrous for the company if he were to
share his experience though different user communities using a combination of chat rooms and
electronic mails.
 The Evolving Supply Chain
The transformation being brought about the Web revolution is not limited to just the
consumer. The last few years have seen a flurry of suggested business models for doing business
in the Internet era. Will the Internet era signal the death of the retailer? Or will a new
intermediary come into existence?
Technological innovations have made possible two interesting developments---the

Choice board system 2 and the Vertical Portal. Because Choice boards are essentially design
tools and conduits of information, companies that produce the products need not control them.
Dell uses a Choice board system to sell its computers but there are others like Point.com that
uses a Choice board to help customers research and buy wireless phones and accessories.
The market information that a Choice board collects about customer preferences is
absolutely enormous and if the manufacturing company does not control it, the site offering the
Choice board can emerge as a powerful intermediary. Vertical portals armed with sophisticated
search engines, which specialize in a particular industry or product category, and provide
customized information and promote online community development are the next emergent
intermediaries.
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The sophistication and range of information collected on customer preferences will drive
emergent business models. The Web will thus facilitate the transformation of the companies
form transaction supporters to customer relationship managers.
6.1 Critical Success factors in E-Advertising
Having observed the evolving paradigms of business in the Internet era, there are five
critical success factors that the E-Advertiser has to keep in mind.
 Attracting the Right Customer is the first crucial step. Rising digital penetration would
mean that the number of customer visiting particular sites would inevitably go up. While
the number of eyeballs or page views has so far been conveniently used as a satisfactory
measure by most web sites, it would be foolish to cater to the whole spectrum of digital
visitors. Content has to be very target specific. The digital company has to select its target
segment by finding out which section of customers are the most profitable in terms of
revenue transactions and who are the customers who generate the maximum number of
referrals. Here again it is important to note that the majority of online customers are not
seeking the lowest price. Rather they are seeking convenience above everything else. The
power of customer referrals has never been so enormous, since word of the mouse
spreads faster than word of the mouth. E-Bay attracts more than half of its customers
through referrals. Not only do referred customers cost less to acquire than those brought
in by advertising or other Advertising tools, they also cost less to support since they use
their friends who referred them for advice rather than using the companies’ own technical
desk.
 Delivering Content Value to engage the user’s interest is the critical importance in
retaining customer participation. This is because content serves as a powerful
differentiator. Content would include Product enhancements (Software patches for
glitches), personalized interactions (through customized navigation paths as seen on the
web sites of GM and Toyota) and Problem Resolution (updates of delivery schedules and
e-mail responses). Integral to the concept of delivering proper content value is
innovation. The retail financial services industry, for example, is changing rapidly with
multiple players jockeying for position. Product innovation serves as a key tool to attract
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new customers. Priceline.com, for example, has revolutionized the travel and related
services business by letting in a form of “buyer driven commerce”---- Customers specify
their desired prices and competing companies then bid for customer requirements.
Delivering proper content to make existing customers in the traditional “brick” business
switch to Web-enabled transactions makes a lot of sense because in every conceivable
case, the cost of Web-Based transactions is an order of magnitude less than the traditional
ways and is decreasing at a faster rate. The cost of an Internet based banking transaction
is less than one-tenth the cost of a human teller transaction. It is keeping this aspect in
mind that Indian Banks have started toying with the idea of setting up Internet kiosks to
let their low-value customers settle their banking transactions at the kiosk nearest to their
place.
 Ensuring E-Loyalty is vital to the success of any online venture. This is because
acquiring customers on the Internet is enormously expensive and unless those customers
stick round and make lots of repeat purchases over the years, profits will remain elusive.
Contrary to the general view that Web customers are notoriously fickle, they in fact
follow the old rules of customer loyalty. Web customers stick to sites that they trust and
with time consolidate their purchases with one primary supplier to the extent that
purchasing from the supplier’s site becomes part of their daily routine. The issue of trust
is integral to the issues of privacy and security. Companies like Amazon.com, which
command amazing levels of consumer trust, have used a variety of encryption tools ad
simple ethical decisions like not accepting money for publishers for independent book
reviews to maintain the trust of its customers.
 E-Learning to facilitate personalized interactions with customers has been the biggest
contribution of the Web to the Advertising strategists. Customers in traditional bricks-
and-mortar stores leave no record of their behavior unless they buy something—and even
then the date might be sketchy. In the digital marketplace, however technology has made
the entire shopping experience a transparent process. For example, if the customer exits
the web-site when the price screen appears, he is a price sensitive consumer. Such minute
tracking of customer behavior has major implications for the world of advertising. The
Internet may soon be used as a test bed for testing prototypes of Advertising and
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advertising campaigns. By monitoring pages selected, click throughs, responses

generated, and other indicators, the company would be able to discover which parts of a
prospective campaign would work, thus reducing the risk of a potential flop. This would
make it possible for the company to modify its product offerings much earlier than usual
in the product life cycle.
 Providing Digital value to the evolving consumer through his life cycle has become
possible because of customized interactions and emerging business models. These
models have often disturbed the traditional status quo and created new rules of business.
The sectors where new business models will emerge or have emerged are the music
industry, the financial services industry, the travel industry, the relating segment and the
publishing segment. Digital value is delivered to the consumer by promising him
convenience, allowing the customer to feel his ownership of the Web experience, and
giving the customer a sense of belonging that traverses the physical boundaries.
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VII. Changing patterns of Advertising
7.1 Traditional Advertising V/s Internet Advertising
Advertising over the years more so recently has started being used interchangeably with
advertising. Now since the explosion of the internet; advertising paradigms have been constantly
changing. The first Web advertisement was placed on the Hot Wired web site in October 1994.
AT&T, MCI, Sprint, Volvo, Club Med, ZIMA were the first to try it out and the Internet
advertising has come a long way since then. Here, I would attempt to compare Internet
Advertising with Traditional Advertising:
Let’s have a look:
 Traditional Advertising:
 Traditional advertising is static.
 Space is not a restricting factor
 The proportion of advertising to editorial is high sometimes 50:50.
 Does not evoke immediate action.
 Response to the action is not immediate.
 Advertisements are passively received.
 Advertising does not always target a much focused audience.
 Advertisements are ubiquitous.
Whereas Internet Advertising :

 It is dynamic with multimedia- supporting text and graphics video sound all together.
 Space is a problem, as regards size of the banners etc.
 A web page would be 91% editorial and 9% advertising.
 Invokes immediate action as you at-least need to click on the ad.
 First response is immediate as when the user clicks, the person is directed to other web
page with more details.
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 The user has high attention level and concentration while using the net, and hence they
notice the ad. (please refer the chapter)
 This can be much focused.
Advertisements catch users when they are on the lookout for something. For example the
search is for travel on a search engine there are ads of travel agents on the net. Thus we see that
advertising is changing and so are the rules for advertising on the internet. So while designing or
formulating any advertising strategy for a brand on the internet a manager has to take in to
account factors like: -
1. The Internet has made a huge impact on advertising. Companies should be careful as regards
joining the IT bandwagon. They should not advertise on the net just to project themselves as a
techno savvy company or maybe because their competitor is doing the same thing. It should be a
well-planned campaign full of specific information and attention catching.
2. The 'net' charges are on the higher side (though there has been a steep decrease in the rates in
the last few months). Hence people would be wary of the fact that ads consume a lot of online
web time and hence they avoid clicking on average ads. Therefore, advertises should be designed
in such a fashion that they attract attention and induce people to click on the net.
3. One more thing would be to generate 'search' specific advertising. This would mean that if I
give a search for books on the search engine, the ads displayed would be related to the books.
4. Generally, people perceive the ads to be time consuming and full of unwanted information.
Care should be taken to design the ads in such a way that the information they provide or the
hyperlinks they provide to a site gives adequate and specific information.
5. The ads and the subsequent information on the web site should be constantly updated and
highlighted in the ads and thus induce repeated clicks on the ad.
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6. Last but not the least; the ads should be designed so as to attract attention of maximum
number of people and inducing them to click, failing to do so the advertiser ends up defeating his
own purpose.
7.2 The Channel Strategies for delivering Digital Value to customers
The Internet era has shown that companies have risked damaging relationships in their
physical chain to compete in the electronic channel. The ubiquity of the Internet the fact that
cross-linkages are possible to any degree, has meant that companies have usurped the role of
other value providers in the value chain to gain competitive advantage.
When companies pirate the value chain of the industry they are essentially eliminating layers of
costs that are build into the current distribution system. However, pirating the value chain does
not mean that the number of intermediaries in the whole process would necessarily decrease.
The emerging economic structure of Electronic Commerce would mean that profits would lie in
the intermediate transactions rather than in the final sale of the good. Companies would aim at
cutting down their traditional margins (give up the cost plus pricing structure) and aim at high
inventory turnover. In retailing profitability is primarily.
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 The challenge will lie in managing these multiple channels of experience
It is likely that most companies will find that they will have to integrate several
distribution channels to provide the customer with a seamless purchase process. The key
challenge is thus to ensure that the personalized nature of the experience is not much different
across channels.
Can an Internet bookseller allow its customers to experience the same ambience on the
net as it does in the bookstore or vice-versa? If it cannot then companies will face friction among
the alternative distribution channels and the already established physical channel might complain
about its profitability being affected by digital purchases.
This may be typified by friction between vehicle dealers and the company over orders
trough an auto company’s Web site. Complementary to the problem of managing multiple
channels of distribution is the development of infrastructure needed to support such a distribution
network. The billing system and pricing strategies have to be properly frames and executed
 Building Brands Online
Online has always taken a back seat to offline in brand building. Yet online offers the
best options for building a meaningful brand, options that didn't exist only a few years ago.
Companies without a solid digital brand strategy are literally being left behind as leaders build
new digital brands. Reflecting on the current state of online advertising, the majority of online
advertisers are doing a terrible job of building their digital brands.
Advertisers are fighting tooth and nail to produce the world's worst advertising, actually
destroying their existing offline brands in the digital realm. For the most part, if one looks at ads
that run during top TV programs or that appear in top magazines, one will find quality in the
advertising (even if the ads are a bit dry and boring).
But if one looks at a top web site and views a few dozen ads, it will be very difficult to
find quality advertising. In effect, the bulk of the ads online do more harm than good to the
brands they are trying to build. In one industry after another, aggressive Internet upstarts are
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putting established brands at risk, creating very strong brand recognition and enjoying explosive
visitor growth.
The reason may have less to do with the established brands themselves than with their
managers. Advertisers know what a brand is in the physical world: the sum, in the consumer’s
mind, of the personality, presence, and performance of a given product or service. These "3 Ps"
are also essential on the World Wide Web. In addition, digital brand builders must manage the
consumer’s on-line experience of the product, from first encounter through purchase to delivery
and beyond.
Digital brand builders should care about the consumer’s on-line experiences for the
simple reason that all of them—good, bad, or indifferent—influence consumer perceptions of a
product’s brand. To put it differently, on the Web, the experience is the brand. Consider an
example. If a consumer buys lipstick from a retailer in the physical world and has an unpleasant
in-store experience, she is more likely to blame the retailer than the manufacturer.
But if the consumer purchases that same product from Procter & Gamble’s Reflect.com
Web site, her wrath is more likely to be directed at P&G. Thus the on-line advertiser’s objective
shifts from creating brands—at least as defined in the off-line world—to creating Internet
businesses that can deliver complete, and completely satisfying, experiences.
Yet many advertisers, particularly those whose experience is limited to the off-line world,
lack a coherent framework and concrete methods for achieving the broader objectives of on-line
brand building. These advertisers need an approach for aligning the promises they make to
consumers, the Web design necessary to deliver those promises on-line, and the economic model
required to turn a profit.
These three elements—the promise, the design, and the economic model—together form
the inseparable components of a successful Internet business, or what might be called a digital
brand. In one industry after another, aggressive Internet upstarts are putting established brands at
risk, creating very strong brand recognition and enjoying explosive visitor growth The reason
may have less to do with the established brands themselves than with their managers.
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Advertisers know what a brand is in the physical world: the sum, in the consumer’s mind,
of the personality, presence, and performance of a given product or service. These "3 Ps" are also
Consumers Turning to Digital Brands essential on the World Wide Web. In addition, digital
brand builders must manage the consumer’s on-line experience of the product, from first
encounter through purchase to delivery and beyond.
Digital brand builders should care about the consumer’s on-line experiences for the
simple reason that all of them—good, bad, or indifferent—influence consumer perceptions of a
product’s brand. To put it differently, on the Web, the experience is the brand. Consider an
example. If a consumer buys lipstick from a retailer in the physical world and has an unpleasant
in-store experience, she is more likely to blame the retailer than the manufacturer.
But if the consumer purchases that same product from Procter & Gamble’s Reflect.com
Web site, her wrath is more likely to be directed at P&G. Thus the on-line advertiser’s objective
shifts from creating brands—at least as defined in the off-line world—to creating Internet
businesses that can deliver complete, and completely satisfying, experiences. Yet many
advertisers, particularly those whose experience is limited to the off-line world, lack a coherent
framework and concrete methods for achieving the broader objectives of on-line brand building.
These advertisers need an approach for aligning the promises they make to consumers, the Web
design necessary to deliver those promises on-line, and the economic model required to turn a
profit. These three elements—the promise, the design, and the economic model—together form
the inseparable components of a successful Internet business, or what might be called a digital
brand.
 Building Trust
Bringing the six elements of trust to your Internet value proposition, though, does not
automatically lead to deep, trusting relationships. That comes through a step-by-step process in
which the consumer and advertiser exchange value. Each time the consumer volunteers some
personal information, the advertiser rewards the consumer with a more personalized service. This
mutual give-and-take eventually leads to an advanced collaboration based on trust. The research
has identified four stages of trust building:
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 Attraction
At the first stage, the consumer browses the site and even makes a transaction. No real
relationship exists between the advertiser and the consumer, and none may be warranted. The
best strategy is to provide the consumer with information, without demanding any in return.
At first blush, this may seem like an imbalance between what advertisers give and what
they get back. But what the consumer is giving the advertiser is something quite valuable: time
and attention, along with a view of how the site is traversed. The time and attention translates
into the "mind share" needed to create a brand preference.
The average consumer on Ralston Purina’s Dog Chow Web site, which offers no product
for sale, spends more than six minutes per session learning how to care for pets. That’s far more
time—and concentration—than consumers devote to a 30-second TV ad.
 User-Driven Personalization
At the second stage, consumers start shaping Web pages to their specific tastes. For
example, CDnow customers can personalize their home pages with favorite artists and wish lists.
The company shows that it is willing to deliver some value to the consumer before gaining
financially.
Charles Schwab now invites users to set up a personal page through the MySchwab
service, where users can not only track stocks but also get customized sports news, weather
information, and even cartoons. Users aren’t required to open a Schwab account to do so.
 Advertiser-Driven Personalization
In the third stage, advertisers begin using insights provided by consumers to beam
information back to them. Thus, CDnow uses its knowledge of consumers—developed at the
earlier stages of trust—to suggest products they might like which consumers then rate as either
on- or off-target.
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As the process continues, CDnow learns consumers’ preferences and zeroes in on what
they really like. It is worth emphasizing that advertisers should rein in their urge to make
immediate use of data and personalization technologies. This approach takes patience, a trait
lacking at many Advertising organizations.
Too often they bombard consumers with promotional offers as soon as they get their
hands on an e-mail address. We suggest a gradual approach, as nothing aggravates many Internet
users more than unsolicited e-mail. A best practice is to let the user set the pace of
personalization and contact from advertisers.
User-driven personalization should precede advertiser-driven offers. Recent research by

Professor Youngme Moon of the Harvard Business School has shown that premature
personalization can backfire. Moon found that consumers were less likely to buy products
pitched to them through messages if the messages were based on information they had not given
to the advertiser themselves. According to "Is Your Web Site Socially Savvy?" a May–June 1999
Harvard Business Review article, consumers were more likely to buy when the message was
personalized and based on information they had volunteered.
 Trust-Based Collaboration
At the final stage, the advertiser and the consumer work together closely. The consumer
gives the advertiser access to the most sensitive personal information (family, finances, or
health) and in turn gains customized experiences and consultative problem-solving assistance. In
our view, very few on-line advertisers have reached this level of trust with their consumers.
Trust building at a basic level may be enough for some advertisers, particularly if greater
trust does not bring greater spending by consumers. Only by sustaining trust can advertisers
expect to establish enduring relationships with consumers, and it is by keeping a central focus on
that idea that advertisers build a value exchange that delivers consistent and progressive mutual
benefits. With the six building blocks of trust in place, advertisers should be able to chart a
course for building great on-line businesses.
Page 58
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VIII.
DATA ANALYSIS AND FINDINGS
a m e a d (t ra d i ti o n a l
 Various Aspects Of Online Marketing
si n g , W e b b a n n e r
p a n d i n g a d , T ri c k
p s /p o p -u n d e r s,
F e e d A d s,
CPM (co st per
VAR Page 59
ee d
 EFFECTIVENESS OF VARIOUS ONLINE MARKETING

TOOLS
The above graphical representation shows us the effectiveness of various online

marketing tools such as sending newsletters, SEO, PPC, Banner ads etc. Out of these SEO, paid
advertisements and presence on social networking sites are the most effective while sending
newsletters, e-coupons, and other marketing tools are the least effective ones.
Page 60
The above graphical representation shows the effectiveness of Mobile

Advertising, TV and Desktop Display
Below is the graphical representation of the efforts required in execution of the

various online marketing tools
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The above graphical representation shows the effectiveness of content marketing

and the money being spent on the same.
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 FINDINGS:
Through this study we can conclude that the most promising and effective digital marketing tools
seem to be; Content marketing, SEO, SMM
Content marketing is a strategic marketing approach focused on creating and distributing

valuable, relevant, and consistent content to attract and retain a clearly-defined audience — and,
ultimately, to drive profitable customer action.
Content marketing’s purpose is to attract and retain customers by consistently creating

and crating relevant and valuable content with the intention of changing or enhancing
consumer behavior. It is an ongoing process that is best integrated into your overall marketing
strategy, and it focuses on owning media, not renting it.
Page 64
Basically, content marketing is the art of communicating with your customers and

prospects without selling. It is non-interruption marketing. Instead of pitching your products or
services, you are delivering information that makes your buyer more intelligent. The essence of
this content strategy is the belief that if we, as businesses, deliver consistent, ongoing valuable
information to buyers, they ultimately reward us with their business and loyalty.
And they do. Content marketing is being used by some of the greatest marketing
organizations in the world, including P&G, Microsoft, Cisco Systems, and John Deere. It’s
also developed and executed by small businesses and one-person shops around the globe. Why?
Because it works.
Content is the present – and future – of marketing
Go back and read the content marketing definition one more time, but this time remove
the relevant and valuable. That’s the difference between content marketing and the other
informational garbage you get from companies trying to sell you “stuff.” Companies send us
information all the time – it’s just that most of the time it’s not very relevant or valuable (can you
say spam?). That’s what makes content marketing so intriguing in today’s environment of
thousands of marketing messages per person per day. Good content marketing makes a person
stop…read… think… behave… differently.
Thought leaders and marketing experts from around the world, including the likes of Seth
Godin and hundreds of the leading thinkers in marketing have concluded that content marketing
isn’t just the future, it’s the present (see the video below on the history of content marketing).
SEO is an important factor to think about when adapting or designing a website. The
following takes a look at the benefits of Search Engine Optimization (SEO).
You may have heard of Search Engine Optimization (SEO), which is an online marketing
strategy that improves search engine rankings of a website along with online traffic. After
finding out what SEO is you may be wondering how SEO will benefit you and your website.
Page 65
It is beneficial to adapt or design a site for SEO. Adapting or designing a site for SEO
leads to:
 Search engine indexing

 Search engine ranking
 Increased visitor traffic
 Online revenue
Search Engine Optimization (SEO) is beneficial for a website. Not only does it optimise a
site and increase visitor traffic, but, it increases a site’s money making potential. This helps to
make a site more successful. Take time to learn more about SEO and its importance.
Page 66
IX. CONCLUSION
Consumers have shut off the traditional world of marketing. They own a DVR to
skip television advertising, often ignore magazine advertising, and now have become so adept at
online “surfing” that they can take in online information without a care for banners or buttons
(making them irrelevant).
Smart marketers understand that traditional marketing is becoming less and less effective
by the minute, and that there has to be a better way.
The sole purpose of effective online marketing advertisements is to utilise a campaign

strategy at the lowest possible cost and risk investment, in order to maximise sales potential and
receive a high return on investment (profit).
Online marketing costs are somewhat inexpensive in comparison with other mediums.
Cost effective design and well planned campaign strategies can reach a broader target audience
(which can be viewed from virtually anywhere in the world) for a smaller price tag than most
traditional advertising budgets.
Online marketing allows consumers of the world to research and purchase services and
products at their own pace and convenience. This is massively appealing to the many diverse
societies of the world. People are also drawn in better if the option of choice is abundant and
results are seen quickly.
The overall success and effectiveness of an online marketing campaign largely depends
on the business goals laid out, as well as cost volume profit (CVP) analysis (a form of cost
accounting).
Online marketing allows for statistics to be measured more easily and at a lower cost.
Virtually all elements of an online marketing campaign can be traced and tested in some way,
shape or form. Methods in which this can be done include pay per impression (CPM: cost per
thousand viewers), pay per click (PPC: a host company is paid every time an advertisement is
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clicked on), pay per play (PPP: pay per audio advertisement played) or pay per action (PPA: an
advertiser pays for a specific action related to an advertisement, such as a form submission or a
purchase). Web analytics are also a useful tool in being able to effectively track the exposure,
response and overall efficiency of online marketing by collecting, analysing and reporting back
internet data. Here, advertisers can determine the best return on investment (ROI). Tracking and
measuring can be done almost instantaneously since online marketing encourages interaction by
clicking on the ad and visiting the website, as well as other target actions.
Pay per click advertising is notably the most effective means of generating immediate
traffic to a website. Advantages of this form include only paying when a user interacts with an ad
(clicks on it), the source of traffic can be easily tracked as well as identify which ads are
achieving the best result in a campaign, and targets an audience more specifically (ads appear
when a web user searches for keywords that are relevant to a specific company or business).
Online marketing campaigns can be implemented much faster than traditional forms of
advertising, reaching a targeted audience within a matter of days and in some cases, hours.
Online marketing provides a greater flexibility level whereby campaigns can be altered to
test new markets, evaluate new programmes and make changes more specific to a targeted
market.
Search engine optimisation (SEO) companies who specialise in helping companies best
market their products and services online can successfully place them on the top or first page of
major search engines and directories, such as Google, MSN and Yahoo. This will ensure that
competitors are kept at bay (at a lower level on a search engine website), with the sole aim of
generating quick and efficient sales or services, as well as increasing a profit ratio.
 Effective Online Marketing Tools
Tools that can be used to make an online marketing campaign at its most effective
include:
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Domain name – website addresses should be unique, simple, short, and memorable, as
well as strongly reflect what a company stands for and intends to offer their target audience. This
is essentially a company’s very first online marketing tool. If the name chosen isn’t memorable
and reflects the nature of the company, it is not likely to achieve success.
Content – better content makes for abetter website. Content should be packed with
keywords that search engines can easily pick up on when a web user is online. Keywords in
online marketing are truly a quality tool as this is what will draw a targeted audience onto your
website.
New material and updates – constant and consistent updates whereby new information
is added will give your website content more bulk that has the added benefit of enticing viewers
to return. Improvements will by no means go unnoticed by the public at large.
Simplicity – by keeping things simple and concise, a targeted audience doesn’t feel that
their time is being wasted, as in today’s fast paced society, time is of the essence.
Marketing your website – advertising your website on other websites such as Zeuzzo or
doing AdSence can greatly create more awareness of a company’s brand, services or products.
Blogs – are fast becoming essential tools for online marketers as they can build a content
rich website, as well as attract targeted traffic from all major search engines.
Online marketing is a collaboration of elements that produce a successful web based

advertising strategy or campaign. Identifying the tools needed and making the most of them
requires an enormous amount of skill, practise and expert thinking minds. The work that is put in
ultimately determines the level of success that will be achieved.
Page 69
REFERENCE
Websites
http://contentmarketinginstitute.com/what-is-content-marketing/
http://www.slideshare.net/factor3/an-overview-to-digital-marketing
https://www.coursera.org/learn/marketing-digital
e-BOOKS
Social Media Marketing For Dummies
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1.1 General Introduction of Project: I. Introduction & Research Methodology

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1.1 General Introduction of Project: I. Introduction & Research Methodology

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A Comparative Study Between Traditional Marketing and Digital Marketing with special

reference to retail marketing stores

I. INTRODUCTION & RESEARCH METHODOLOGY

1.1 GENERAL INTRODUCTION OF PROJECT

Nowadays there is a new communication channel, Internet, added to these traditional

1.2 OBJECTIVES OF STUDY

1. To understand the various aspects of online marketing.

1.3 SCOPE OF STUDY

1.4 RESEARCH METHODOLOGY

1.4.1 Formation Of Problem

Marketing is an important strategy for businesses and it contains numerous

1.4.2 Collection Of Data

1.4.3 Research Limitation

1.5 MIND MAPPING

PROS & CONS

NEW ENTREPRENEURS APPROACH

II. COMPANY PROFILE

“You have a doubt? Ask us.”

2.1 The Interview:

Here are his views on the same-

transparency of online marketing helps in understanding the total productivity or output

- Mr. Nixon George, Founder & Diretor

III. INTRODUCTION TO DIGITAL MARKETING

Digital marketing is an umbrella term for the targeted, measurable, and

Digital marketing activities are search engine optimization (SEO), search engine

According to the Digital Marketing Institute, Digital Marketing is the use of digital

3.3 Latest Developments and Strategies

As digital marketing is dependent on technology which is ever-evolving and fast-

I. Influencer Marketing: Important nodes are identified within related

To summarize, Pull digital marketing is characterized by consumers actively seeking

II. Online Behavioural Advertising: Online Behavioural Advertising refers to the

III. Collaborative Environment: A collaborative environment can be set up

3.4 Digital Marketing Channels

Digital Marketing is facilitated by multiple channels, As an advertiser one's core

Push and pull message technologies can be used in conjunction.

 Special attention and protection for children.

IV. ALL ABOUT ONLINE / INTERNET MARKETING

Online advertising, also called online marketing or Internet advertising is a form of

The first known large-scale non-commercial spam message was sent on 18

GoTo.com (renamed Overture in 2001, and acquired by Yahoo! in 2003) created

Google launched its "AdWords" search advertising program in 2000and

Examples include Red Bull's Red Bull Media House streaming Felix

Advertisers are also embracing social media and mobile advertising; mobile ad

4.2 Types Of Online Marketing

Display advertising conveys its advertising message visually using text, logos,

Advertisers can also target their audience by using contextual and semantic advertising to

Advertisers may also deliver ads based on a user's suspected geography

 Web banner advertising

 Frame ad (traditional banner)

An expanding ad is a rich media frame ad that changes dimensions upon a predefined

 News Feed Ads

Some examples are: Facebook's "Sponsored Stories", LinkedIn's "Sponsored

 Search engine marketing (SEM)

 Search engine optimization (SEO)

 Social media marketing

Social media marketing is commercial promotion conducted through social

Mobile advertising is ad copy delivered through wireless mobile devices such

Email advertising is ad copy comprising an entire email or a portion of an email

 Online classified advertising

Online classified advertising is advertising posted online in a categorical listing of

Adware is software that, once installed, automatically displays advertisements on a user's

 Online marketing platform

Online marketing platform (OMP) is an integrated web-based platform that combines the