Documente Academic
Documente Profesional
Documente Cultură
ProjectReport
On
EFFECTIVENESSOFINTERNETADVERTISING
InpartialfulfillmentoftherequirementforMastersDegree
inManagementStudies(M.M.S.)
ANSARIYASSIRARAFAT
RollNo:B(06)
Specialization:Marketing
AcademicYear:201213
Undertheguidanceof:
Prof.AughiDalton
UNIVERSITYOFMUMBAI
AnjumanIIslams
AllanaInstituteofManagementStudies(AIAIMS)
Mumbai
AnjumanIIslams
AllanaInstituteofManagementStudies(AIAIMS)
Mumbai
Certificate
ThisistocertifythatMr.ANSARIYASSIRARAFATastudentofAnjuman
IIslamsAllanaInstituteofManagementStudies(AIAIMS)pursuingfinalyear
in M.M.S. has completed the dissertation report on Effectiveness of
Internet Advertising intheAcademicyear2012 2013.
Date:
Place:
_________________
_______________
Prof.AughiDalton
Prof.LukmanPatel
ProjectGuide
AIAIMS
Director
AIAIMS
DECLARATION
ProjectTitle:EffectivenessofInternetAdvertising
Submittedon:31032013
UndertheGuidanceof:Prof.AughiDalton
College:AnjumanIIslamsAllanaInstituteofManagementStudies(AIAIMS)
ThisistodeclarethatI,Mr.ANSARIYASSIRARAFATstudentofAnjumanI
th
IslamsAllanaInstituteofManagementStudies(AIAIMS)IV semester(Marketing)hereby
declarethatIhavecompletedtheprojecton EffectivenessofInternetAdvertisinginthe
Academicyear20122013.
Theinformationsubmittedistrueandoriginaltothebestofmyknowledge.
Date:31032013
Place:Mumbai
ANSARIYASSIRARAFAT
M.M.S.IIYear(201213)
SpecializationMarketing
ACKNOWLEDGEMENT
Itakeimmensepleasureincompletingthisprojectandsubmittingthefinalprojectreport.
th
The4 semesterhasbeenfulloflearningandsenseofcontributiontowardsthetheory
andpracticalknowledge.IwouldliketothankmyprojectguideProf.AughiDalton
(core faculty at AIAIMS),forgiving me anopportunity oflearning andcontributing
throughthisproject.
Ialsotakethisopportunitytothankallthosepeoplewhohavemadethisexperiencea
memorableone.Asuccessfulprojectcanneverbepreparedbythesingleeffortofthe
persontowhomtheprojectisassigned,butitalsodemandsthehelpandguardianshipof
somescholarlypeople,whohelpedtheundersignedactively.
IwouldliketothankourDirectorProf.LukmanPatelandallthefacultiesofAIAIMS
fortheirvaluableguidance,keeninterest,cooperation,inspiration&moralsupportfor
completingmycourse.
Date:31032013
Place:Mumbai
________________
ANSARIYASSIRARAFAT
M.M.S.IIYear(201213)
SpecializationMarketing
EXECUTIVESUMMARY
The new millennium has brought us on the brink of the I.T. Revolution. This
revolutionhasbeenaidedbytheadventoftheInternetinabigway.Internetisfastchanging
the way people used to do things. Naturally, the same would have an impact on the
advertisers.TheInternethasbeenacceptedasthemostpowerfulmediaforadvertisingdueto
theabsenceofgeographicalbarriers.TheadventoftheInternetanditssubsequentacceptance
hasonceagainchallengedthetraditionalformsofadvertising.Advertisersaretryingtouse
the'net'toadvertisetheirproductsandhence'net'theircustomers.Thus,withtheInternet
gaining prominence, advertising equations are fast changing we would like to study the
impactofInternetonadvertisingfromthecustomersaswellasadvertiserspointofview.
ThereisnoquestionthatthegrowthofInternetadvertisingisoutpacingofflineadvertising.
Asmoreandmorecompaniesrealizetherealvalueinadvertisingtheirgoodsandservices
online, they are diverting funds from other forms of offline advertising to compensate.
Consequently, the market share of Internet advertising is continually growing while the
marketshareofofflineadvertisingmediumsstagnatesordeclines.Atthecurrentrateof
growth,Internetadvertisinghasalreadyovertakenradioadvertisinginspendingandmarket
share.Whileoutdooradvertisingisalsoexperiencinggrowth,itisnotgrowingasrapidlyas
Internetadvertising,andInternetadvertisinghasalreadyovertakenit.Thedominantformsof
offlineadvertising,television,newspapers andmagazines,stillholdthelionshareofthe
market,buttheirmarketshareisexpectedtodecreaseslowlyoverthenextfewyears.
ThegrowthinInternetadvertisingisduetotwodifferentfactors,moreadvertisers
movingpromotionsonlineandthegrowingpenetrationoftheInternetitself.Becausethe
Internetisstillarelativelynewmediumwhencomparedtootherlongestablishedadvertising
mediumslikenewspapersandtelevision,advertisershavenotyetrealizedthefullpotential
for gain. In 2013, if youre not on a social networking site, youre not on the Internet. Its as
trueforadvertisersasitisforconsumers.Socialnetworkingistheultimatemanifestationof
usergeneratedcontent,andassuch,holdsmorepotentialforgrowththananyotherformof
content on the Web today. User Generated Content (UGC) and Social Networks are
transformingthemediaecosystem.Gonearethedayswhenpowerrestedinthehandsofa
fewcontentcreatorsandmediadistributors.Gonearethedayswhenmarketerscontrolledthe
collaborative, collective, customized and shared. Its a world in which the consumer is the
creator,consumeranddistributorofcontent.Todaythereareoverabillioncontentcreators
andhundredsofmillionsofdistributors.Theproliferationofquality,affordabletechnology
duringthepast5years,oneofthemostprofoundsocialeffectsoftheInternethasbeenthe
democratizationofmedia.Nowadays,anybodywithacomputerandanInternetconnectionis
readytostartbroadcastingtothewholeworld,forfree.Onlinetoolssuchasthewellknown
BloggermakepublishingontheInternetextremelyeasyandaccessibletopeoplewithhardly
anytechnicalknowledge.
INDEX
Sr.No
Topic
PageNo
Introduction
01
ReviewOfLiterature
14
InternetAdvertising
23
TraditionalAdvertisingVsInternetAdvertising
32
DataAnalysis
39
FindingsOfTheStudy
52
Conclusion
54
Recommendation
55
SocialMediaMarketing
56
10
CaseStudy
62
11
Annexure
65
12
Bibliography
69
13
Webliography
70
Effectiveness of Internet
Advertising
1.INTRODUCTION
1.1EvolutionofMarketing
Marketing_SpelledPronunciation[mahrkiting]Noun
1. Theactofbuyingorsellinginamarket.
2. The total of activities involved in the transfer of goods from the producer or seller to the
consumerorbuyer,includingadvertising,shipping,storing,andselling.
Atthebeginningofthecentury,sociallifewasmostlylocal.Itwasfollowedbyaperiodin
which commodities were produced on a mass scale. Consumer Marketing operated on mass
marketingprinciplesandbusinessprimarilyconcerneditselfwithhowtobuildthebestsalesforce.
Attheendofthecentury,thereisanemergingglobalculture.Themajordriversofthesechanges
aretechnology.Technologicalchangehasmovedsteadilybackfocusingontheindividual.These
changes shape the possibility and conduct of business. Marketing is especially tied to
communicationandtransportationrevolution.Asthetoolsandreachofmarketingincrease,thejob
andresponsibilitiesofmarketershaveevolvedwiththem.PhilipKotlerformalizedthisevolution
with his book "Marketing Management". His key stages are production, sales and brand
management.Eachoftheseisstronglymotivatedbytechnologicalopportunities,whichpermitnew
methods and new opportunities. A fourth stage, a focus on the individual customer, is also
important.AsthenewtechnologyoftheInternetdevelops,itreinforcesthenewmarketing
emphasiswhichinmanywaysisareturntobusinessattheturnofthecentury.
In todays technology driven world, a new fast paced digital economy is emerging.
Tomorrowtherewillbecompaniesthatwillexistonlyinsidecomputernetworks.Mostbusiness
transactionswillbemadeelectronically,directlyfromtheproducertotheconsumer,bypassingthe
supplychain.Inthedigitalmarketingenvironment,theconsumerbecomesanintegralplayerinthe
developmentoftheproduct.Infact,aconsumermightbuildtheproducthimselffromawidearray
ofpartsprovidedbytheCompany.Itisecommercethatischangingthewayproductsandservices
areconceived,manufactured,promoted,priced,distributedandsold.Thereasonbeingthatitis
muchcheaper;itallowsvastcoverageandhelpsinservingthecustomerbetter.
Effectiveness of Internet
Advertising
s product, service,
need, etc., esp. by
1.2
Advertisi
ng
paid announcements
in newspapers and
magazines,
over
radio or television,
advertisi
ng_Show
onbillboards,etc.:to
Spelled
get more customers
Pronuncia
tion[ad
byadvertising.
vertahy
II. Paid announcements;
zing]
advertisements.
III. The profession of
planning, designing, and
writingadvertisements.
noun
Advertisingisapaidformof
communication, although
some forms of advertising,
such as public service
announcements,usedonated
spaceandtime.Second,not
onlyisthe
Message paid for, but the
9.
the
act
or
prac
tice
of
calli
ng
pub
sponsorisidentified.Third,
most advertising tries to
persuade or influence the
consumer to do something,
although in some cases the
point of the message is
simply to make consumers
aware of the product or
company Fourth and fifth,
Finally,
Advertising is paid non
because
advertising
personal
isaformof
communica
mass
tionfrom
communica
an
tion,italso
non
personal
A
definition
of
advertising,
then,
includesall
sixfeatures
identified
sponsor
using mass
mediato
persuade
or
influence
an
audience
Effectiveness of Internet
Advertising
1.3FunctionsofAdvertising
Advertisingisanimportantpromotionaltoolforanymarketingcampaign.Somuchsothat
wheneverwethinkofmarketingwethinkofadvertisingalthoughitisjustoneofthemarketing
tools.Tillnowonlycompanieswithaprofitmotivewentinforadvertising.Buttodaygovernment
bodies as well as nongovernmental organizations (NGOs) go for high profile advertising
campaigns.Thepurposehereisnottoincreasethesalesfigurebuttoincreasetheawarenessof
peopleregardingtherelevanttopics.
Even though each ad or campaign tries to accomplishgoals unique to its sponsor, advertising
performsthreebasicfunctions:
1.Provideproductorbrandinformation
Althoughmanyadsaredevoidofinformation,providingtheconsumerwithrelevant
Informationthatwillaiddecisionmakingisstillthemainfunctionofadvertising.The
Informationgivendependsontheneedsofthetargetaudience.Inthecaseofpurchasinganewsuit,
needed information might simply include price and outlet location. Fortechnical products,the
informationislikelytobeverydetailed.
2.Provideincentivestotakedecision
In most instances, consumers are reluctant to change established behaviour. Even if there are
somewhatdissatisfiedwiththecurrentproductorservice,ahabithasbeen
Established and learning about a new product is deemed difficult. Advertising provides the
consumer with reasons to switch brands by presenting reasons through copy or graphics.
Convenience,highquality,lowerprice,warranties,oracelebrityendorserareallpossibilities.
3.Provideremindersandreinforcement
Its amazing how much advertising is directed at current customers. Consumers forget why they
bought a particular brand of microwave or automobile. Advertising must remind the customer
constantlyaboutthenameofthebrand,itsbenefits,itsvalue,andsoforth.Thesesamemessages
help reinforce the customers decision. Most television advertising seems to provide this function.
Effectiveness of Internet
Advertising
1.4TypesofAdvertising
Advertisingisaformofselling.Ittriestomakeconsumersbuygoodsorservices.Advertisersmust
beawareofthefactorsthatinfluencepeople'sbuyinghabitsandthenuseadvertisingstrategies
basedonthisknowledge.Advertisingcanbeclassifiedinnumberofways.
1.PrintAdvertising:Newspapers,Magazines,Brochures,Fliers
The print media have always been a popular advertising medium. Advertising products via
newspapersormagazinesisacommonpractice.Inadditiontothis,theprintmediaalsooffers
optionslikepromotionalbrochuresandfliersforadvertisingpurposes.
2.OutdoorAdvertising:Billboards,Kiosks,TradeshowsandEvents(OOH)
Outdooradvertisingisalsoaverypopularformofadvertising,whichmakesuseofseveraltools
and techniques to attract the customers outdoors. The most common examples of outdoor
advertising are billboards, kiosks, and also several events and tradeshows organized by the
company.Thebillboardadvertisingisverypopularhoweverhastobereallyterseandcatchyin
ordertograbtheattentionofthepassersby.Thekiosksnotonlyprovideaneasyoutletforthe
company products but also make for an effective advertising tool to promote the companys
products. Organizing several events or sponsoring them makes for an excellent advertising
opportunity. The company can organize trade fairs, or even exhibitions for advertising their
products.Ifnotthis,thecompanycanorganizeseveraleventsthatarecloselyassociatedwiththeir
field.
3.Broadcastadvertising:Television,RadioandtheInternet
Broadcastadvertisingisaverypopularadvertisingmediumthatconstitutesofseveralbrancheslike
television,radioortheInternet.Televisionadvertisementshavebeenverypopulareversincethey
havebeenintroduced.Theradiomighthavelostitscharmowing
tothenewagemediahowevertheradioremainstobethechoiceofsmallscaleadvertisers.
4.CovertAdvertising:AdvertisinginMovies
Covertadvertisingisauniquekindofadvertising
entertainmentshow.
a product or a
inwhichincorporatedinsomeentertainmentand
particular brand
is
television shows
orevenbrandor
movies,
theproductissubtly(or
Effectiveness of Internet
Advertising
5.SurrogateAdvertising:AdvertisingIndirectly
Surrogateadvertisingisprominentlyseenincaseswhereadvertisingaparticularproductisbanned
by law. Advertisement for products like cigarettes or alcohol which are injurious to heath are
prohibitedbylawinseveralcountriesandhencethesecompanieshavetocomeupwithseveral
otherproductsthatmighthavethesamebrandnameandindirectlyremindpeopleofthecigarettes
orbeerbottlesofthesamebrand.CommonexamplesincludeFostersandKingfisherbeerbrands,
whichareoftenseentopromotetheirbrandwiththehelpofsurrogateadvertising.
6.PublicServiceAdvertising:AdvertisingforSocialCauses
Public service advertising is a technique that makes use of advertising as an effective
communicationmediumtoconveysociallyrelevantmessagedaboutimportantmattersandsocial
welfarecauseslikeAIDS,energyconservation,politicalintegrity,deforestation,illiteracy,poverty
andsoon.
7.CelebrityAdvertising
Althoughtheaudienceisgettingsmarterandsmarterandthemoderndayconsumergettingimmune
totheexaggeratedclaimsmadeinamajorityofadvertisements,thereexistasectionofadvertisers
thatstillbankuponcelebritiesandtheirpopularityforadvertisingtheirproducts.Usingcelebrities
foradvertisinginvolvessigningupcelebritiesforadvertisingcampaigns,whichconsistofallsorts
ofadvertisingincluding,televisionadsorevenprintadvertisements.
8.InternetAdvertising
Internetpromotionisoneofthenewertypesofadvertisingandcanbeaccomplishedinanumberof
ways.Flashadvertisingreferstomessagesthatjumpontoyourcomputerscreenandoftenmove
around.Theycanbehardtocloseandareannoying,buteffectiveatgainingyourattention.Popup
andscrollingadsareotherexamplesofthesetypesofadvertising.Payperclickadvertisingrefersto
marketerspayingtohavetheirwebpagesplacedhighonsearchengineresultspages.Thesearealso
calledsponsoredlinks.
Effectiveness of Internet
Advertising
1.5OBJECTIVEOFTHESTUDY
1Tocomparethetrustleveloftraditionaladvertisingandonlineadvertising(consumerspoint
ofview)
2Tofindtheeffectivenessofinternetadvertising(reachandcreationofawareness)
3Tofindthereliabilityofinternetadvertising(recallandremembrance)
4Toascertaintheimportanceofonlineadvertisingasapromotionaltool.
1.6STATEMENTOFTHEPROBLEM
IsonlineadvertisingeffectiveininfluencingthepotentialBuyers?
1Internetisoneoftheimportantmediumsthatownallkindsoffeatures,whichimpliesa
greatpotentialandpowerfuladvertisingmediuminthefuture.Inaddition,Internethasa
better impact than traditional media in the features like Format Variety, Affinity, and
Preservability.Furthermore,Internetistheonlymediumsofarwhichownsthefeatureof
interactivity.Thatcreateslotsofnewcommunicationopportunitiesandpossibilitiesthat
wereunabletobeachievedinthepastbecauseofthelimitationofmediatechnologies.In
spite of these whether the online advertisement is effective in influencing the Potential
Buyersinmodernera.
Effectiveness of Internet
Advertising
MARKETRESEARCH
Title:AstudyontheeffectivenessofInternetAdvertisinginMumbai
1.7PURPOSEANDSCOPEOFSTUDY
AdvertisersareexpectedtospendRs.25,500millionininternetadvertisingintheyear2013third
onlytoTVandPrintads,whichisaround6065%morethanthatintheyear2011,compound
percentageincreaseof124%overthelast5years.Thisisthenewageofadvertising.
Itistruethatpeoplehavestartedrealizingthatinternetcanserveasaonestoppointforalltheir
needs. Be it communication, entertainment, shopping, information search, internet serves as a
panaceaforalltheirrequirements.Thishasled70%oftheeveruserstogluethemselvestothe
Internet and access it on a regular basis. This is an opportunity for advertisers to exploit this
revolution.But,isittheendoftraditionaladvertising?Isinternetadvertisingeffectiveandefficient
comparedtothetraditionalform??Doesitfulfilthebasicobjectivesofadvertising(create
awareness, to generate sales, build positive image, etc)???
Theproblemisthat,volumesofconsumersareonlineeverydayfortheirpersonalwork,butdothey
notice the ads, banners etc. displayed on that webpage, most important what is their
recall/remembrancevalue.Whataboutthereachofonlineadvertising,isiteffectiveacrossoverall
targetgroups?Wehavetrustedtraditional advertising all these years and its a proven medium that
fulfils all the objectives of advertising, can one have the same trust for online advertising
Effectiveness of Internet
Advertising
1.8SIGNIFICANCEOFTHESTUDY
1 Thisstudywouldhelptoknowtheimportanceofinternetadvertising.
2 Thisstudywillhelpthecompanytofindoutwhetheracustomerisawareofproductsthrough
online.
3 Thisstudywouldhelptheadvertisertofindoutnewanddifferentsolutionstobuildabrand
strategyfortheirproducts.
1.9RESEARCHMETHODOLOGY
Researchdesign
Thisisadescriptiveresearchasitwillclarifythedoubtsaboutonlineadvertising.
Itwouldgiveusaclearpictureontheeffectivenessandreliabilityofonlineadvertisingcompared
tothetraditionalformofadvertising.
Datacollection
Secondarydata:Onlinereportsrelatedtoadvertising
Primarydata:Questionnaire,PersonalInterview,InterviewwithMarketingProfessional
1.91HYPOTHESIS
NullHypothesis:onlineadvertisingisnoteffectivethantraditionaladvertising.
AlternateHypothesis:onlineadvertisingiseffectivethantraditionaladvertising.
Effectiveness of Internet
Advertising
1.92SAMPLINGPLAN
SamplingTechnique:
Judgmental Non Probability sampling can be used to select the individual units for better
productivityofthequestionnaire.Awelleducatedpersonmaybeabletoreasonoutthequestionsin
thebetterway.
SamplingSize
Insamplinganalysisthemostticklishquestionis:Whatshouldbethesizeofthesampleorhow
large or small should be n? If the sample size (n) is too small,itmaynotservetoachievethe
objectivesandifitistoolarge,wemayincurhugecostandwasteresources.Asageneralrule,one
cansaythatthesamplemustbeofanoptimumsizei.e.,itshouldneitherbeexcessivelylargenor
toosmall.Technically,thesamplesizeshouldbelargeenoughtogiveaconfidenceintervalof
desiredwidthandassuchthesizeofthesamplemustbechosenbysomelogicalprocessbefore
sampleistakenfromtheuniverse.
Samplesizerelatestohowmanypeopletopickforthestudy.Thequestionoftenaskedis:Howbig
asampleisnecessaryforagoodsurvey?
Thisdependson:factorssuchasa)theresearcherhypothesesorquestions;b)levelofprecision,c)
populationhomogeneity,d)samplingtechniqueused;e)monetaryandpersonalresources;andf)
theamountoftimeavailableAccordingtothelawoflargenumbers,thelargerthesamplesize,the
better the estimates, or the larger the sample the closer the "true" value of the population is
approached.
Sampleshouldbeauserofinternetorshouldhaveknowledgeaboutinternet100numbersinall
SamplingUnit
Adecisionhastobetakenconcerningasamplingunitbeforeselectingsample.Samplingmaybea
geographicalonesuchasstate,district,village,etc.,oraconstructionunitsuchashouse,flat,etc.,
oritmaybeasocialunitsuchasfamily,club,school,malls,etc.,oritmaybeanindividual.The
researcherwillhavetodecideoneormoreofsuchunitsthathehastoselectforhisstudy.
ThesamplingunitwasdoneathangoutplacesinMumbai
Effectiveness of Internet
Advertising
SamplingFrame
Samplingframe(synonyms:"sampleframe","surveyframe")istheactualsetofunitsfromwhicha
samplehasbeendrawn:inthecaseofasimplerandomsample,allunitsfromthesamplingframe
haveanequalchancetobedrawnandtooccurinthesample.Intheidealcase,thesamplingframe
shouldcoincidewiththepopulationofinterest.
Consider,forexample,asurveyaimedatestablishingthenumberofpotentialcustomersforanew
serviceinthepopulationofNewYorkCity.Theresearchteamhasdrawn1000numbersatrandom
fromatelephonedirectoryforthecity,made200callseachdayfromMondaytoFridayfrom8am
to5pmandaskedsomequestions.
Inthisexample, population ofinterestisallinhabitantsofthecity;the samplingframe includes
onlythoseNewYourCitydwellersthatsatisfyallthefollowingconditions:
1) hasatelephone;
2) thetelephonenumberisincludedinthedirectory;
3) likelytobeathomefrom8amto5pmfromMondaytoFriday;
4) notapersonwhorefusestoansweralltelephonesurveys.
The samplingframe inthis casedefinitelydiffersfromthe population. Forexample,itunder
representsthecategorieswhicheitherhavenoatelephone(e.g.themostpoor),haveanunlisted
number,andwhowerenotathomeatthetimeofcalls(e.g.employedpeople),whodon'tliketo
participateintelephoneinterviews(e.g.morebusyandactivepeople).Suchdifferencesbetweenthe
samplingframeandthepopulationofinterestisamaincauseofbiasinsurveysandothermethods
aimedatrandomsampling.
Thesamplingframechosenwerethepeoplewhohaveinterestandknowledgeaboutinternetand
awareofadvertisementads.
SamplingMethod
Thegeneralgoalofallsamplingmethodsistoobtainasamplethatisrepresentativeofthetarget
population.Inotherwords,apartfromrandomerror,theinformationderivedfromthesampleis
expectedtobethesamehadacompletecensusofthetargetpopulationbeencarriedout.The
proceduresusedtoselectasamplerequiresomepriorknowledgeofthetargetpopulation,which
allowsadeterminationofthesizeofthesampleneededtoachieveareasonableestimate(with
10
Effectiveness of Internet
Advertising
acceptedprecisionandaccuracy)ofthecharacteristicsofthepopulation.Mostsamplingmethods
attempttoselectunitssuchthateachhasadefinableprobabilityofbeingchosen.Methodsthat
adoptthisapproacharecalled"probabilitysamplingmethods."Examplesofsuchmethodsinclude
simplerandomsampling,systematicsampling,stratifiedsampling,andclustersampling.
Randomsamplingisonewhereeveryperson(orunit)inthepopulationfromwhichthesampleis
drawnhassomechanceofbeingincludedinit.Ideally,theselectionsthatmakeupthesampleare
madeindependently;thatis,thechoicetoselectoneunitwillnotaffectthechanceofanotherunit
being selected. The simplest way of selecting sampling units where each unit has an equal
probabilityofbeingchosenisreferredtoasasimplerandomsample.
Systematicrandom samplinginvolvesdecidingwhatfractionofthetargetpopulationistobe
sampled,andthencompilinganorderedlistofthetargetpopulation.Theorderingmaybebasedon
thedateapatiententeredaclinic,thelastsurnameofpatients,orotherfactors.Then,startingatthe
beginningofthelist,theinitialsampleunitisrandomlyselectedfromwithinthefirstkunits,and
thereaftereverykthindividualissampled.Typically,theintegerkisestimatedbydividingthesize
ofthetargetpopulationbythedesiredsamplesize.Thismethodofsamplingiseasytoimplement
inpractice,andthesamplingframecanbecompiledasthestudyprogresses.
Stratifiedrandom sampledividesthepopulationintodistinctnooverlappingsubgroups(strata)
according to some important characteristics (e.g., age, income) and then a random sample is
selectedwithineachsubgroup.Theinvestigatorcanusethismethodtoensurethateachsubgroupof
interestisrepresentedinthesample.Thismethodgenerallyproducesmorepreciseestimatesofthe
characteristics ofthetargetpopulation,unless very small numbers ofunits are selected within
individualstrata.
Clustersamplingmaybeusedifthestudyunitsformnaturalgroupsorifanadequatelistofthe
entirepopulationisdifficulttocompile.Inanationalsurvey,forexample,clustersmaycomprise
individuals in a localized geographic area. The clusters or regions are selected, preferably at
random,andthepersonsareenumeratedineachselectedregionandrandomsamplesaredrawn
fromtheseunitsofthepopulation.Becausesamplingisperformedatmultiplelevels,thismethodis
sometimesreferredtoasmultistagesampling.
With non probability sampling methods, the probability of being included in the sample is
unknown.Examplesofthissamplingmethodincludeconveniencesamplesandvolunteers.These
typesofsamplesarepronetobiasandcannotbeassumedtoberepresentativeofthetarget
11
Effectiveness of Internet
Advertising
population.Forexample,peoplewhovolunteerarefrequentlydifferentinmanyrespectsfromthose
whodonot.Testsofhypothesisandstatisticalinferenceconcerningthesampledunitsandthetarget
populationcanonlybeappliedwithprobabilitysamplingmethods.Thatis,thereisnowaytoassess
thevalidityofthesamplesobtainedusingnonprobabilitysamplingstrategies.
Thesamplingmethodusedinourstudyissimplerandomsampling.
1.93ResearchLimitation
1Limitedpeople:Thequestionnairetobefilledupforthesurveywassubmittedtoonly100
people.
2Findingsofthesurveyarebasedontheassumptionthattherespondentshavegivencorrect
information.
3TargetAudience:IhavemostlytargetedallMumbaipeopleandcouldnotgetaviewofthe
peoplestayinginthesuburbs.
4Sincetherespondentshadtofillthequestionnairewhilebusywiththeirhecticschedule,
manypeoplewerereluctanttoanswer.
.
1
2
Effectiveness of Internet
Advertising
1
3
Effectiveness of Internet
Advertising
2.REVIEWOFLITERATURE
2.1InternetMarketing
TheAdventoftheInternet
ThenewmillenniumhasbroughtusonthebrinkoftheI.T.Revolution.Thisrevolutionhas
beenaidedbytheadventoftheInternetinabigway.Internetisfastchangingthewaypeopleused
todothings.Naturally,thesamewouldhaveanimpactontheadvertisers.TheInternethasbeen
acceptedasthemostpowerfulmediaforadvertisingduetotheabsenceofgeographicalbarriers.
TheadventoftheInternetanditssubsequentacceptancehasonceagainchallengedthetraditional
formsofadvertising.
Advertisers are trying to use the 'net' to advertise their products and hence 'net' their
customers.Thus,withtheInternetgainingprominence,advertisingequationsarefastchanging.
Internetmarketing,alsoreferredtoaswebmarketing,onlinemarketing,oreMarketing,isthe
marketingofproductsorservicesovertheInternet.Internetmarketingtiestogethercreativeand
technicalaspectsoftheInternet,includingdesign,development,advertising,andsale.TheInternet
hasbroughtmanyuniquebenefitstomarketing,oneofwhichbeinglowercostsforthedistribution
ofinformationandmediatoaglobalaudience.TheinteractivenatureofInternetmarketing,bothin
termsofprovidinginstantresponseandelicitingresponses,isauniquequalityofthemedium.
Internetmarketingissometimesconsideredtohaveabroaderscopebecauseitnotonlyrefersto
digitalmediasuchastheInternet,email,andwirelessmedia;however,Internetmarketingalso
includesmanagementofdigitalcustomerdataandelectroniccustomerrelationshipmanagement
(ECRM)systems.
1
4
Effectiveness of Internet
Advertising
7P'sOfInternetMarketing
ThefourP'sProduct,Price,PlaceandPromotionhavelongbeenassociatedwithmarketing,but
thingshavechangedontheInternet.Soalongwithachangeinthenature of the four Ps there are
three new Ps which are relevant to the internet marketer: Presentation, Processes and
Personalization.
1.Product
ProductontheInternetusuallychangesformonline,andtheuserexperiencesitelectronically,in
theformoftext,imagesandmultimedia.Physicalgoodsareusuallypresentedintheformofa
detailedonlinecataloguethatthecustomercansbrowsethrough.Technologyallowstheuserto
virtuallytouchandfeeltheproductontheInternetrotateit,zoominorzoomoutandeven
visualizetheproductindifferentconfigurationsandcombination.Contentandsoftwarearetwo
avatarsofdigitizedproductsthatcanbeevendistributedovertheInternet.OntheInternet,E
marketingwillbebasedmoreontheproductqualitiesratherthanontheprice.Everycompanywill
beabletobringdownthecostofitsproductsandhencecompetitionwillnotbeonprice.Itwill
ratherbeontheuniquenessoftheproduct.Tobeabletoattractthecustomersandretainthem,the
companywillhavetoprovidenouvelleanddistinctproductsthatforcesthenetuserstopurchase
andcomebackformore.
2.Price
PricehasbeendrasticallychangedovertheInternet.Itletsthebuyerdecidestheprice.Alsoitgives
thebuyersinformationaboutmultiplesellerssellingthesameproduct.Itleadstobestpossibledeal
forthebuyersintermsofprice.PricingisdynamicovertheInternet.
3.Place
Placerevolvesaroundsettingupofamarketingchanneltoreachthecustomer.Internetservesasa
directmarketingchannelthatallowstheproducertoreachthecustomerdirectly.Theeliminationof
theintermediatechannelallowstheproducertopassthereduceddistributioncosttothecustomerin
theformofdiscounts.
4.Promotion
Promotionisextremelynecessarytoenticethecustomertoitswebsite,astherearecurrentlymore
thanonebillionwebpages.Promotingawebsiteincludesbothonlineandofflinestrategies.Online
15
Effectiveness of Internet
Advertising
strategiesincludesearchengineoptimization,bannerads,multiplepointsofentry,viralmarketing,
strategicpartnershipandaffiliatemarketing.Presently,thecyberspaceisalreadyclutteredwith
thousands of sites probably selling similar products. For the customers to know of the Companys
existenceandtogarnerinformationonthekindofproductsorservicesthatthecompanyisoffering,
promotionhastobecarriedout.Therecanbetradedlinksorbanneradvertisementsforthesame.
Alsothetraditionalmediumslikeprint,outdooradvertisingandtelevisioncanbeusedtospread
awareness.
5.Presentation
Thepresentationoftheonlinebusinessneedstohaveaneasytousenavigation.Thelookandthe
feelofthewebsiteshouldbebasedoncorporatelogosandstandards.About80%ofthepeople
readonly20%ofthewebpage.Therefore,thewebpageshouldnotbeclutteredwithalotof
information.Also,simplebutpowerfulnavigationalaidsonallwebpageslikesearchenginesmake
iteasyforcustomertofindtheirwayaround.
6.Processes
Customersupportsneedstobeintegratedintotheonlinewebsite.Asalesservicethatwillbeable
toanswerthequestionsoftheircustomersfastandinareliablemannerisnecessary.Tofurther
enhanceaftersalesservice,customersmustbeabletofindoutabouttheirorderstatusafterthesale
hasbeenmade.
7.Personalization
Usingthelatestsoftwareitispossibletocustomizetheentirewebsiteforeverysingleuser,without
anyadditionalcosts.Themasscustomizationallowsthecompanytocreatewebpagesproductsand
servicesthatsuittherequirementoftheuser.Acustomizedwebpagedoesnotonlyincludethe
preferredlayoutofthecustomerbutalsoapreselectionofgoodsthecustomermaybeinterestedin.
1
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Effectiveness of Internet
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2.2 UnderstandingtheInternetCustomers
Now to be able to use the seven Ps effectively in order to achieve the predefined goals of any
organizationitisimperativetounderstandthecustomers.Customizationwillonlybetrulyeffective
ifweunderstandourcustomersandtheirtrueneeds.Beforeadaptingmarketingpracticestothe
Internet,themarketerneedstounderstandthecharacteristicsoftheonlinecustomers.TheNetusers
canbeclassifiedintofivecategoriesdependingupontheirintentionofusingtheInternet.
Thefivecategoriesofusersare:
1. Directed Information Seekers: They require specific, timely and relevant information
abouttheproductsandservicesbeingoffered.
2. UndirectedInformationSeekers: Theseusersrequiresomethinginterestinganduseful.
Somethingthatcangivethemanedge,advantage,insightorevenapleasantsurprise.
3. BargainHunters: Theyareoftwokinds:Onewholooksforfreeitemsontheinternet
anotherwhoisseekingbetterdeals,higherdiscountsetc.
4. EntertainmentSeekers:TheyseetheWebasanentertainmentmediumofvastbreathand
potentialandwanttoexplorethemediumbeforethemassgetsthere.
5. DirectedBuyers:Theywanttobuysomethingnow.Theyaresurewhattheyrequireand
justlogontotheWebtopurchasetheitem.
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Effectiveness of Internet
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2.3BrandBuildingontheInternet
FortheCompanyonthecyberspace,theirwebsiteistheirmostimportantbrand.Theseven
Ps of internet marketing mentioned earlier not only have to try and make business successful but
alsodobrandbuildingintheprocess.
Productandservicecustomization
Companiesthathavepowerfulbrandawarenessontheweballhavesitesthathelpconsumersdo
something whether its configuring a computer system (www.dell.com) online or offering
personalizedserviceslikesuburbanrailwaypassticketinMumbai(www.rediff.com).Consumer
demandandexpectationsareforecasttodrivemadetoorderorcustomizedproductswithrapidly
shrinkingleadtimes.Productsareconfigured,ascustomerswantthemtobeandprovideahigh
level
of reliability, excellent quality, and longer life spans. For e.g. Dell computer
(www.dell.com)hasbecomealeadingcompanyinsellingcomputersbecauseofthecustomization
facilityitprovidedonitssite.Theconsumerscouldbuildtheowncomputerbyorderingtheown
configuration.Thecustomizationhighlightsthevalueformoneyaspectandinducestheconsumer
tobuyaproductthatmeetshisownrequirement.
TheEvolvingValuePropositions
Thevaluepropositionsofgoodsandservicesofferedinthephysicalworlddifferpointedlyfrom
thoseinthedigitalworld.Theultimateaimoftheuniversalmarketeristoprovideacompleteend
toendconsumerexperiencerightfromthepromisetosatisfyhisneedtoitsdelivery.Butthe
physicalworldoffersonly Point Solutions which is basically a solution of his needs in terms of
functionalbenefits.Acreditcard,forinstance,allowsconsumerstosatisfytheimmediatenecessity
of setting a transaction. But todays consumers are also looking for process andrelationshipbenefit
bookreferralsatnoextracostoremailreminders.Thephysicalworldisnotabletodeliverthese
benefitsbecauseofgapsintime,spaceandmemory.Theweb,ontheotherhandprovidesallof
these and more (reverse marketing,forexample,whereconsumersseekoutvendorsratherthanthe
other way around) by giving the company the ownership and control over all interactions with the
consumer.
TheEvolvingRiskProfiles
Theonlinecustomerisnotaficklecustomer,butheisariskypropositionnevertheless.Thisis
becauseallhisonlineexperiencewillinfluenceconsumerperceptionsaboutthebrand.Ifa
18
Effectiveness of Internet
Advertising
consumerbuysaproductfromaretailerandisinvolvedinanunhappypurchaseexperienceatthe
store,hewillpunishthe store. But if the same experience were to occur to him at the companys
website,theconsequenceswouldbedisastrousforthecompanyifheweretosharehisexperience
thoughdifferentusercommunitiesusingacombinationofchatroomsandelectronicmails.
TheEvolvingSupplyChain
ThetransformationbeingbroughtabouttheWebrevolutionisnotlimitedtojusttheconsumer.The
lastfewyearshaveseenaflurryofsuggestedbusinessmodelsfordoingbusinessintheInternetera.
Will the Internet era signal the death of the retailer? Or will anew intermediary come into
existence? Technological innovations have made possible two interesting developments the
Choiceboardsystem2andtheVerticalPortal.Choiceboardsareessentiallydesigntools and
conduitsofinformation,companiesthatproducetheproductsneednotcontrolthem.Dellusesa
ChoiceboardsystemtosellitscomputersbutthereareotherslikePoint.comthatusesaChoice
boardtohelpcustomersresearchandbuywirelessphonesandaccessories.Themarketinformation
that a Choice board collects about customer preferences is absolutely enormous and if the
manufacturingcompanydoesnotcontrolit,thesiteofferingtheChoiceboardcanemergeasa
powerfulintermediary.Verticalportalsarmedwithsophisticatedsearchengines,whichspecialize
in a particular industry or product category, and provide customized information and promote
onlinecommunitydevelopmentarethenextemergentintermediaries.Thesophisticationandrange
ofinformationcollectedoncustomerpreferenceswilldriveemergentbusinessmodels.TheWeb
willthusfacilitatethetransformationofthecompaniesformtransactionsupporterstocustomer
relationshipmanagers.
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Effectiveness of Internet
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2.4CriticalSuccessFactorsInInternetMarketing
Having observed theevolvingparadigms ofbusiness inthe Internet era,thereare fivecritical
successfactorsthattheInternetMarketerhastokeepinmind.
AttractingtheRightCustomer
AttractingtheRightCustomeristhefirstcrucialstep.Risingdigitalpenetrationwouldmeanthat
the number of customer visiting particular sites would inevitably go up. While the number of
eyeballsorpageviewshassofarbeenconvenientlyusedasasatisfactorymeasurebymostweb
sites,itwouldbefoolishtocatertothewholespectrumofdigitalvisitors.Contenthastobevery
targetspecific.Thedigitalcompanyhastoselectitstargetsegmentbyfindingoutwhichsectionof
customersarethemostprofitableintermsofrevenuetransactionsandwhoarethecustomerswho
generatethemaximumnumberofreferrals.Hereagainitisimportanttonotethatthemajorityof
onlinecustomers arenot seekingthe lowestprice. Rather theyare seekingconvenience above
everythingelse.Thepowerofcustomerreferralshasneverbeensoenormous,sincewordofthe
mouse spreads faster than word of the mouth. EBay attracts more than half of its customers
throughreferrals.Notonlydoreferredcustomerscostlesstoacquirethanthosebroughtinby
advertisingorothermarketingtools,theyalsocostlesstosupportsincetheyusetheirfriendswho
referred them for advice rather than using the companies own technical desk.
DeliveringContentValue
Delivering Content Value to engage the users interest is the critical importance in retaining
customerparticipation.Thisisbecausecontentservesasapowerfuldifferentiator.Contentwould
includeProductenhancements(Softwarepatchesforglitches),personalizedinteractions(through
customizednavigationpathsasseenonthewebsitesofGMandToyota)andProblemResolution
(updatesofdeliveryschedulesandemailresponses).Integraltotheconceptofdeliveringproper
contentvalueisinnovation.Fore.g.www.campareindia.com
EnsuringELoyalty
Ensuring ELoyalty is vital to the success of any online venture. This is because acquiring
customersontheInternetisenormouslyexpensiveandunlessthosecustomersstickroundand
makelotsofrepeatpurchasesovertheyears,profitswillremainelusive.Contrarytothegeneral
view that Web customers are notoriously fickle, they in fact follow the old rules of customer
loyalty.Webcustomerssticktositesthattheytrustandwithtimeconsolidatetheirpurchaseswith
one primary supplier to the extent that purchasing from the suppliers site becomes part of their
20
Effectiveness of Internet
Advertising
dailyroutine.Theissueoftrustisintegraltotheissuesofprivacyandsecurity.Companieslike
Amazon.com,whichcommandamazinglevelsofconsumertrust,haveusedavarietyofencryption
toolsandsimpleethicaldecisionslikenotacceptingmoneyforpublishersforindependentbook
reviewstomaintainthetrustofitscustomers.
ELearningtofacilitatepersonalizedinteractions
ELearningtofacilitatepersonalizedinteractionswithcustomershasbeenthebiggestcontribution
oftheWebtothemarketingstrategists.Customersintraditionalbricksandmortarstoresleaveno
record of their behaviour unless they buy something. In the digital marketplace, however
technologyhasmadetheentireshoppingexperienceatransparentprocess.Forexample,ifthe
customerexitsthewebsitewhenthepricescreenappears,hisapricesensitiveconsumer.Such
minutetrackingofcustomerbehaviourhasmajorimplicationsfortheworldofadvertising.The
Internet may soon be used as a test bed for testing prototype of marketing and advertising
campaigns.Bymonitoringpagesselected,clickthrough,responsesgenerated,andotherindicators,
thecompanywouldbeabletodiscoverwhichpartsofaprospectivecampaignwouldwork,thus
reducingtheriskofapotentialflop.Thiswouldmakeitpossibleforthecompanytomodifyits
productofferingsmuchearlierthanusualintheproductlifecycle.
ProvidingDigitalvaluetotheevolvingconsumerthroughhislifecycle
ProvidingDigitalvaluetotheevolvingconsumerthroughhislifecyclehasbecomepossible
Becauseofcustomizedinteractionsandemergingbusinessmodels.Thesemodelshaveoften
disturbedthetraditionalstatusquoandcreatednewrulesofbusiness.Thesectorswherenew
businessmodelswillemergeorhaveemergedarethemusicindustry,thefinancialservices
industry,thetravelindustry,therelatingsegmentandthepublishingsegment.Digitalvalueis
deliveredtotheconsumerbypromisinghimconvenience,allowingthecustomertofeelhis
ownershipoftheWebexperience,andgivingthecustomerasenseofbelongingthattraversesthe
physicalboundaries.
2
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Effectiveness of Internet
Advertising
2.5BenefitsofInternetMarketing
Thereasonwhyinternetmarketinghasbecomesopopularisbecausetheyprovidethreemajor
benefitstopotentialbuyers:
9.
Convenience:Customers can order products 24 hours a day wherever they are. They dont
havetositintraffic,andaparkingspace,andwalkthroughcountlessshopstofindand
examinegoods.
35.
61.
Internetmarketingalsoprovidesanumberofbenefitstomarketers
1. Quickadjustmentstomarketconditions: Companiescanquicklyaddproductstotheir
offeringandchangepricesanddescriptions.
2. Lowercosts:Onlinemarketersavoidtheexpenseofmaintainingastoreandthecostsof
rent,insurance,andutilities.Theycanproducedigitalcatalogsformuchlessthanthecost
ofprintingandmailingpapercatalogs.
3. Relationship building: Online marketers can dialogue withconsumers and learn from
them.
4. Audiencesizing:Marketerscanlearnhowmanypeoplevisitedtheironlinesiteandhow
manystoppedatparticularplacesonthesite.Thisinformationcanhelpimproveoffersand
ads.Clearly,marketersareaddingonlinechannelstofind,reach,communicate,andsell.
Internetmarketinghasatleastfivegreatadvantages.First,bothsmallandlargefirmscan
afford it. Second, there is no real limit on advertising space, in contrast to print and
broadcastmedia.Third,informationaccessandretrievalarefast,comparedtoovernight
mailandevenfax.Fourth,thesitecanbevisitedbyanyonefromanyplaceintheworld.
Fifth,shoppingcanbedoneprivatelyandswiftly.
2
2
Effectiveness of Internet
Advertising
3.INTERNETADVERTISING
Marketingovertheyearsmoresorecentlyhasstartedbeingusedinterchangeablywithadvertising.
Nowsincetheexplosionoftheinternet;advertisingparadigmshavebeenconstantlychanging.The
firstWebadvertisementwasplacedontheHotWiredwebsiteinOctober1994.AT&T,MCI,
Sprint,Volvo,ClubMed,ZIMAwerethefirsttotryitoutandtheInternetadvertisinghascomea
longwaysincethen.
WhatIsInternetAdvertising?
OnlineadvertisingisaformofpromotionthatusestheInternetandWorldWideWebforthe
expressed purpose of delivering marketing messages to attract customers. Examples of online
advertisingincludecontextualadsonsearchengineresultspages,bannerads,RichMediaAds,
Social network advertising, online classified advertising, advertising networks and email
marketing,includingemailspam.
Onlinevideodirectoriesforbrandsareagoodexampleofinteractiveadvertising.Thesedirectories
complementtelevisionadvertisingandallowtheviewertoviewthecommercialsofanumberof
brands.Iftheadvertiserhasoptedforaresponsefeature,theviewermaythenchoosetovisitthe
brands website, or interact with the advertiser through other touch points such as email, chat or
phone.Responsetobrandcommunicationisinstantaneous,andconversiontobusinessisveryhigh.
Thisisbecauseincontrasttoconventionalformsofinterruptiveadvertising,theviewerhasactually
chosentoseethecommercial.
2
3
Effectiveness of Internet
Advertising
ObjectivesofInternetAdvertising
9.
Advertising: AsfarasadvertisingontheInternetgoes,alladvertisementswillserveto
attracttheuser'sattentionanddrawhimtothecompany,whichisadvertising.
35.
Buildbrandawareness: Directorindirectmethodscanbeusedonthewebsitestobuild
brandawarenessofthedifferentbrandsofacompany.ThisiswheretheInternetscores
traditionalmediaandmethodsasexplainedbelow.
61.
Stimulatedirectaction: Visitorstoacompany'swebsiteshouldgetinvolvedwiththe
offeringsonthesite.Valuablecustomerinformationcanalsobecapturedandtrackedfor
futuremarketinginitiatives.
IV.
Promoteitsbrands:Promotionalgiveawayorcontestsgenerateexcitementwhile
simultaneouslypromotingyourbrandsonline,aidingofflinesale.
22.
Buildingaculturearounditsbrands: Thisgoesalongwiththatcompany'straditional
advertising.
VI.
Surrogateadvertising: Thisisanothermeansofsurrogateadvertisingofthecompany,
whereallformsoftraditionaladvertisingfail.Surrogateadvertisingcanbeprovedtobe
positiveincaseofadvertisingontheInternet.
2
4
Effectiveness of Internet
Advertising
ttoolthatisusedby
firms to create their
Features
of
Internet
Advertisi
ng
Advertising
onthe
Internethas
certain
unique
features
that
differentiat
eitfrom
otherforms
35.
of
advertising.
Theyareas
follows:
9.
Me
mb
er
regi
database. Such a
database may be
used to design
promotional
campaigns.Allowing
registered users to
participateinvarious
events can follow
systems of free
registration.
Online
opinion
stra
tion 61.
Newsletters:
Regular newsletters
Me
aresentespeciallyto
mbe
registered
These
regi
information about
strat
current updating on
ion
thesiteandactivities
is
being performed by
an
thecompany.
users.
contain
effi
cien IV.
Contests
and
swe
or service being
epst
advertised.
ake
prizes offeredare in
s:
The
usuallyhavethelogo
Con
test
the
homepage
address displayed
are
prominently.
usef
ul
in
22.
Content:
The
attr
content of the
acti
advertisementcanbe
ng
regularly updated
new
user
s to
firm. A factbased
web
site
manufacturing
s.
processes of a
The
beincluded.Theuse
may
of multimedia tools
be
for
interactive.
sim
ple VI.
Ecards: Userssend
thin
freecardsviaemail
gs
dep
company advertising
endi
theproduct.Thecard
ng
prominently displays
on
the
baselineofthebrand.
pro
Thecardsmaybefor
duct
different occasions
25
suc
has
birt
reinforce
brand
hda
identity.
Star
ys,
endorsers of the
festi
vals
included in the
picture
birt
themes.
postcard
Effectiveness of Internet
Advertising
VII. Downloads:Downloadsmayincludevariousutilitiesforthecomputersuchasicons,desktop
patterns,screensavers,themes,etc.RegisteredusersgettheopportunityofDownloading
software.Chartsandotherinformativearticlesmayalsobeincluded.
VIII. Coupons:Couponsareusedtopromotesalesoffline.Sendingdiscountcouponsforthe
productsandservicesofthecompanyonspecialoccasionscandothis.
2
6
Effectiveness of Internet
Advertising
TypesofInternetAdvertising
9.
Emailadvertising: LegitimateEmailadvertisingorEmailmarketingisoftenknownas
"optinemailadvertising"todistinguishitfromspam.
35.
AffiliateMarketing:Affiliatemarketingisaformofonlineadvertisingwhereadvertisers
placecampaignswithapotentiallylargenumberofsmall(andlarge)publishers,whomare
onlypaidmediafeeswhentraffictotheadvertiserisgarnered,andusuallyuponaspecific
measurable campaign result (a form, a sale, a signup, etc). Today, this is usually
accomplishedthroughcontractingwithan affiliate network.The onlineretailerusedits
programtogeneratelowcostbrandexposureandprovidedatthesametimesmallwebsites
awaytoearnsomesupplementalincome.
61.
Contextualadvertising:Manyadvertisingnetworksdisplaygraphicalortextonlyadsthat
correspondtothekeywordsofanInternetsearchortothecontentofthepageonwhichthe
adisshown.Theseadsarebelievedtohaveagreaterchanceofattractingauser,because
theytendtoshareasimilarcontextastheuser'ssearchquery.Forexample,asearchquery
for"flowers"mightreturnanadvertisementforaflorist'swebsite.Anothernewertechnique
isembeddingkeywordhyperlinkinanarticlewhicharesponsoredbyanadvertiser.Whena
userfollowsthelink,theyaresenttoasponsor'swebsite.
IV.
22.
PayperClick: Searchenginesplaceyourwebsiteontheirfrontpageandyoupayaset
amountperclickthrough.SiteslikeOverturealsorunbidsforcertainkeywordsthemore
youbid,thehigheryoursiteappearsonthefirstpageofthesearchresults.Properlyrun,
thesecampaignscanbringalotofextratraffictoyourwebsite.
VI.
SearchEngineOptimization:Thisisanonlineadvertisingserviceprovidedbymanyweb
media companies. They will look at your target audience, your competitors and the
keywordsforyourbusinessandoptimizeyourwebsitecontentsothatithasamuchbetter
27
Effectiveness of Internet
Advertising
chance of appearing on the first page of the search results. You will pay a fee to the
consultants for this service. Studies have shown that many searchers prefer to use the
"natural"listingsprovidedbythesearchengines,ratherthanthepaidforlistings.
VII.
Sponsorships: Websitesponsorshipcancomeintwoformats;regularsponsorshipwhere
theadvertiserhasaspacetoplacethelogoandcompanymessage,andcontentsponsorship
wheretheadvertiserhaslimitedcontrolandsubmitstheirowncontenttothesiteaswellas
havinganadvertonthepage.Thesesponsorshipswillbeforfixedperiods,andneedtobe
ontargetedwebsitestoreachtherightaudience.
VIII.
OnlineDirectories:TheonlineequivalentofYellowPages,orIndustryDirectories,these
giveyoubasicorenhancedlistingsonthewebsite.Yourdetailswillcomeupifyoursector,
location or company name is searched for. Enhanced listings will allow users to click
throughtoyoursite.Onlinedirectorylistingsareoftenofferedinconjunctionwithanentry
intheprintedversionofthedirectory.
IX.
BannerAds:Banneradvertisingwasthefirstkindofadvertisingeverdoneonthenet.A
bannercanhighlightyourproduct/service/offerandbyclickingonittheuserwillbetaken
to your website, where you can create a suitable landing page to provide his further
information. Banner spaces are usually sold by impressions, or banner views, but it is
sometimes sold by clickthru, when you pay only when the user clicks on the banner.
Usuallyhorizontalbarsacrossthetopofawebpage,theyoffercolour,graphicsandoften
animation,togetherwiththeabilitytoclickthroughtotheadvertiser'sownwebsite.
24.
PopupAds:Thesearethesmallwindowsthatappearwhenyoufirstgetontoawebsite.
Popupsappearonyourscreeninfull,popdownsappearonthebaratthebottomofyour
screenandyouhavetoopenthemtogetridofthem.
XI.
InterstitialAdverts:TheseadvertssometimesreferredtoasBridgeAdverts,popupasyou
movebetweenpagesonasite.Youhavenochoiceastowhetheryouviewthemornot,
althoughyoucanclosethemdown.
XII.
FloatingAds:Theseadsappearwhenyoufirstgotoawebpage,andthey"float"overthe
pageforfiveto30seconds.Whiletheyareonthescreen,theyobscureyourviewofthe
28
Effectiveness of Internet
Advertising
pageyouaretryingtoread,andtheyoftenblockmouseinputaswell.Theseadsappear
eachtimethatpageisrefreshed.Floatingadsarepopularforseveralreasons:
1theygrabtheviewer'sattentionandcannotbeignored
2theyareanimated
3theyhaveaudio/videocontentlikeTVads
4theycantakeuptheentirescreen,thereforefromabrandingstandpoint,theyare
muchmorepowerfulthanabanneradorasidebarad
5theyhaveahighclickthroughrateofabout3percentHowever,manyusersget
highlyirritatedbecauseoftheseads.
XIII. UnicastAds:AunicastadisbasicallyaTVcommercialthatrunsinthebrowserwindow.It
hasenrichedaudio/videocontent.Theadscanlastanywherefrom10to30seconds.These
ads have similar branding power as a TV commercial. However, a unicast ad offers
somethingthatTVadscannottheabilitytoclickontheadformoreinformation.These
adsaregettingveryeffective,astheaverageclickthroughrateis5%.
XIV. TakeoverAds:Viewersvisitingthewebsitewillseealargeadwhentheyfirstcome,andthen
thecontinuityismaintainedbyreiteratingthesamemessagethroughoutthesiteintheform
ofbanners,sidebarsorbuttons.Theapproachworksverywellforbrandingbecausethe
brandisvisibletoviewersthroughoutthevisittothesite.Clickthroughratesarealsohigh.
2
9
Effectiveness of Internet
Advertising
ative attributes as
well.
Negative
Aspects
ofOnline
Advertisi
ng
1Des
pite
using
unethicalmethodsof
advertising that can
be abusive, immoral
andoftenillegal.
the
3Manyconsumersfeel
fact
that
online
adv
advertisements are
ertis
an invasion of
ing
onli
borderline
ne
censorship while
is
one
advertising viruses
ofif
not
serious threat to
the
internetusers.
best
way
to
advertising
reac
constitutes as a
violation of privacy
the
as well as personal
larg
rights.
est
5Usersdonotwantto
audi
thinkthattheirevery
enc
moveonlineisbeing
e it
monitored by a
also
corporation
has
som
to sell them a
product.
neg
or
Consumers are so
used to seeing
advertising
on
television, hearing
radio commercials
and flipping through
advertisements in
magazines, they've
developed
an
aversiontoallforms
of advertising. This
isalsothecasewith
online advertising,
whereconsumerscan
avoid
clicking
banner
advertisements,
bypassadsinonline
videos they watch
and close popup
advertisements as
soonastheycomeup
on their screens.
Customers are in
online
control of which
include the
advertisingmessages
potential to
reach a
andrespondto.
large
market and 35.
ViewingProblems
the ability
Website downtime,
30
lags
the numberoftimes
in
consumersseeonline
web
advertisements and
site
or
them.
vide
technical
occur, companies
load
ing
to
and
advertisements for
bro
wse
com
Viewing problems
plic
canoccurbecauseof
atio
problems with a
ns
website or if a
can
consumer is using a
red
smartphoneorother
uce
mobile
When
issues
broadcast
Effectiveness of Internet
Advertising
devicetoviewawebsite,hasaslowconnectionspeedordoesnothavethecorrect
applicationsandprogramsinstalledonhiscomputersforproperviewing.
61.
ExpensiveAdPrices
Pricingforadvertisingonlinecanrangefrominexpensive$20amonthplacementson
localparentingblogstothousandsofdollarsonpopularsitessuchastheNewYork
Times.Thecostforbanner,textandvideoadsvarydependingontheamountoftrafficand
thetypeofreadershipawebsiteorblogreceives.Onlineadvertisingthroughpayperclick
campaignsandsocialmediasitescanalsowreakhavoconacompany'smarketingbudget,
potentiallyyieldinglittletonoreturnoninvestment.
IV.
ConsumersGetDistracted
Whencustomersvisitawebsite,theytypicallyhaveagoalinmind,whetherit'stocatchup
onthelatestcelebritygossip,readthenews,chatwithfriends,downloadmusicorshopfora
specificitem.Websitespresentcustomerswithvariousoptionsthatcaneasilydistractthem
andpulltheirattentionfromyouronlineadvertisements.
22.
TooManyOptions
TheInternetoffersawiderangeofwebsitesonwhichcompaniescanplaceadvertisements.
Thiscanbeoverwhelming,especiallyforsmallbusinessowners.Withsomanyoptions,it's
difficulttonarrowdownthechoices tothewebsitesthatwillattractthemostpotential
customersandsales.Onceacompanyselectsawebsite,itisthenpresentedwithavarietyof
ways it can advertise its products or services on the site, such as through banner
advertisements,videomarketingorbysponsoringapost.Companieshavetodetermine
whichtypeofadvertisementyieldsthebestresponsefromtheirtargetmarkets
3
1
Effectiveness of Internet
Advertising
4.TRADITIONALADVERTISINGVSINTERNETADVERTISING
It is dynamic
with
Internet
Advertisin
g(IA)
TraditionalAdvertising(TA)
multimedia
supporting
text
and
graphics
1TAisstatic
video sound
alltogether
ble
m,
as
reg
ard
6Advertisementsarepassively
received
onthead
web
page
would
be91%
editoria
l and
9%adv
ertising
First
response
is
immedia
te as
whenthe
user
clicks,
the
siz
personis
e
5Responsetotheactionisnot
immediate
Inv
of
okes
the
immedi
ba
ate
nn
action
ers
as you
etc
.
atleast
need to
click
directed
to other
web
page
with
more
details
The
user has
high
attention
leveland
concentr
ation
while
usingthe
net, and
hence
they
notice
thead.
Advertisingdoesnotalwaystargeta
Thiscanbeveryfocused
very
focusedaudience
Advertisementsareomnipresent
Advertisementscatchuserswhenthey
areonthelookoutforsomething.For
examplethesearchisfortravelona
32
Effectiveness of Internet
Advertising
search
engine
there
areas
1Difficul
t
to
track
of
travel
agents
the
onthe
exact
net
number
of
people
who
Thi
s is
saw the
quite
advertis
possibl
ement.
e with
Interne
2Ads are
graphic
adverti
intensiv
sement
e and
avoid
copy
3overloa
d
Bot
h copy
and
graphic
s are
restrict
ed by
the
3
ban
ner
size
specifi
cations
3
3
Effectiveness of Internet
Advertising
InternetAdvertisingTrends
ThereisnoquestionthatthegrowthofInternetadvertisingisoutpacingofflineadvertising.As
moreandmorecompaniesrealizetherealvalueinadvertisingtheirgoodsandservices
Online, they are diverting funds from other forms of offline advertising to compensate.
Consequently,themarketshareofInternetadvertisingiscontinuallygrowingwhilethemarket
shareofofflineadvertisingmediumsstagnatesordeclines.
At the current rate of growth, Internet advertising has already overtaken radio advertising in
spendingandmarketshare.Whileoutdooradvertisingisalsoexperiencinggrowth,itisnotgrowing
asrapidlyasInternetadvertising,andInternetadvertisinghasalreadyovertakenit.
Acombinationofestablishedtrendsandnewtechnologyinnovationswillcause2013tobean
eventfulyearfordigitalmarketing.Hereareafewbroadthemesthatcanbeexpectedtodominate
marketers'attentioninthecomingyear.
CredibilityforOnlineAdvertising
Whetheryouarepostingonlineclassifiedsorsellingonadvertisingsites,advertisingonlinecanbe
adifficulttask.Advertisingonlinesuccessfullyiscompletelydependentoncredibilityandtrust.
Untilnow,ithasbeentheresponsibilityofthoseadvertisingtoconvincetheconsumerthattheyare
indeedhonestandreputabledealersandonlineadvertisers.
Itisimportanttopointoutthattherearemanyhonestpeopleadvertisingonlineorpostingclassified
adsonline.Theirpresencehoweverissomewhatdilutedbythenumberoffakeandscamadsthat
exist.Unfortunatelythishasbeenaproblemwhichhasbeenoutwiththecontrolofthehonest
seller.Nowthough,advertSAFEcangiveanyadvertisingontheinternetoranyonlineclassifieds
instantcredibility.TheadvertSAFEbadgeisanindicationastowhetheranadisaverifiedadvert
ornot.
BydisplayingtheadvertSAFEbadgeorcertificate,thesellerisvoluntarilyprovidingpersonal
information,givingthecustomerconfidencethattheyaredealingwithagenuineindividualas
opposedtoananonymousentity.TheadvertSAFEbadgeandcertificateareawaytoeasilyidentify
whichadvertisingsitesorwhichadvertisingontheinternetcandefinitelybetrusted.
34
Effectiveness of Internet
Advertising
Websitescanalsobecomeapprovedsitesandencouragetheirmembersandadvertiserstobecome
verified.Thishasawholemyriadofadvantagesfortheseller.
Advertisingontheinternetisacompetitivebusiness andthereis nobetterwaytomakeyour
advertising online stand out than through accountability and transparency. By providing the
consumerswithatangibleidentity,itwillhelpfosterarelationshipoftrust.Trustisgenuinely
perceivedtobethequalitythatislackingmostwhenitcomestoadvertisingontheinternetand
advertSAFEcanassistinthecreationofacommunitywhereisonlynotlacking,butwhereitisa
keyfeature.
Reputable sellers and online advertisers have in the past been disadvantaged by the general
perceptionofadvertisingonline.BysigninguptoadvertSAFEtheywillbeputtingthemselvesin
anadvantageouspositionbystandingoutamongsttheircompetitorsasthegenuinearticle.
3
5
Effectiveness of Internet
Advertising
MarketerswillunderstandthetruevalueofSocial
A common refrain among online marketers is that social media doesnt work. This view is
especiallyprevalentamongdirectresponsemarketerswhoareusedtothenotionofimmediate
purchasesafteranadwasclicked.Thisisboundtochangenextyear.Forone,marketersarefinally
beginningtounderstandthatthevalueofasocialclickgoesfarbeyondtheinitialpurchase.Itis
aboutbuildingrelationshipswithcustomersandalsogainingaccesstolargeraudiencesviathe
inherentviralnatureofsocialnetworks.Marketersarebeginningtounderstandthisfact.Facebook,
apartfromintroducing new ad formats, has now enabled advertisers to track viewthrough and
initial results are very promising. Furthermore, I expect the Face book Exchange to be quite
successful. One also anticipates that Twitter, which recently had its high mobile ad revenues
featuredina marketerreport,willmovebeyondsponsoredtweetsandprovideadvertiserswith
moreadvertisingformatsandtargetingoptions.
Finally, to gear up for the coming year, advertisers would do well to notice the rising
complexityofdigitalmarketingoverall.Eveninsearch,whichwasoncearelativelysimpleaffair,a
wellrun search campaign that contained a few thousand keywords now contains millions of
keywordswithseverallayersoftargetingrelocation,remarketing,device,etc.Socialadvertising
isbecomingincreasinglycomplexwithFacebookintroducingseveralnewformatsnearlyevery
month.YouTubeandotherformsofonlinevideoadvertisingaregrowinginimportance.Therefore,
itisimperativeforsavvymarketerstoaugmenttheirteamswithsophisticatedcrosschannel
marketing platforms that enable them to scale in an efficient manner. Heres to the year ahead in
onlinemarketing.
The growth in Internet advertising is due to two different factors, more advertisers moving
promotionsonlineandthegrowingpenetrationoftheInternetitself.BecausetheInternetisstilla
relatively new medium when compared to other long established advertising mediums like
newspapersandtelevision,advertisershavenotyetrealizedthefullpotentialforgain.Evenin
developed markets, ad budgets dont even come close to matching consumption rates.Thisshows
howmuchroomforgrowthInternetadvertisingreallyhas.Whilethereisnowaytoguaranteethese
predictions, the current trends bear them out. Market share for Internet advertising will surely
continuetogrowrapidlyoverthecomingyears.
In2013, if youre not on a social networking site, youre not on the Internet. Its as true for
advertisersasitisforconsumers.Socialnetworkingistheultimatemanifestationofusergenerated
36
Effectiveness of Internet
Advertising
content,andassuch,holdsmorepotentialforgrowththananyotherformofcontentontheWeb
today.UserGeneratedContent(UGC)andSocialNetworksaretransformingthemediaecosystem.
Gonearethedayswhenpowerrestedinthehandsofa
Fewcontentcreatorsandmediadistributors.Gonearethedayswhenmarketerscontrolledthe
communication and path between advertisement and consumer. Todays model is collaborative,
collective, customized and shared. Its a world in which the consumer is the creator, consumer and
distributorofcontent.Todaythereareoverabillioncontentcreatorsandhundredsofmillionsof
distributors.Theproliferationofquality,affordabletechnologyduringthepast5years,oneofthe
mostprofoundsocialeffectsoftheInternethasbeenthedemocratizationofmedia.Nowadays,
anybodywith a computer and an Internet connections ready to start broadcasting to the whole
world,forfree.OnlinetoolssuchasthewellknownBloggermakepublishingontheInternet
extremelyeasyandaccessibletopeoplewithhardlyanytechnicalknowledge.Thephenomenonof
democratizedmediaresultsinalandscapeofmillionsofmicromedia,mostimportantlyinthe
followingforms:
1. Weblogs (orblogs)areinfactwebpagesthatareextremelyeasytoupdate,publishedby
onepersonoragroup.Blogstypicallyofferthepossibilityforreaderstoleavecommentson
posts,whichtypicallyleadstodialogue.
2. Podcasts (combinationofthewordsiPodandBroadcast)areessentiallyradioprograms,
distributedinMP3format.Creatingapodcastisstillrelativelyeasyandverycosteffective.
PodcastcanbeeasilydownloadedtoaportableMP3player.
3. Videocasts (VideoPodcasts)arevideofilesdistributedinMPEG4format.Homemade
videocastsarestartingtoappearthroughvideocasting,availableinstantlytothewhole
world.
4. Wikisaretypesofwebsitesthatenablecooperation(opentothepublicorwithinacompany
orgroup)byallowingpeopletofreelyeditallofitscontent.Theresultisapubliclyedited
website,withaslittletopdowncontrolaspossible.ThebestknownwikiisWikipedia.org,
anonlineencyclopaediathatallowsallregistereduserstoimproveitsarticles.Thefirst
threeofthesenewformsofmediacomewithauniversaltechnologyfordistributingcontent
overtheInternet:RSS.RSSisaveryimportantpartofallthreetechnologies,asitallows
consumerstoliterallysubscribetocontent.
37
Effectiveness of Internet
Advertising
d automatically to the
subscribers computer,
5. RSS
(Rich
goingouttoawebsiteto
Site
findit.Thiscontentcan
Summa
betext(weblogornews
ry or
Really
Simply
Syndica
viewedinsocalledRSS
tion)
facilitat
es
syndicat
ion of
andshowstheircontent
content.
either as articles or as
By
subscrib
ing to
developed constantly
an RSS
andaccordingtomany,
feed,
content
standard of distributing
will be
delivere
inthebroadestsense.
3
8
Effectiveness of Internet
Advertising
5.DATAANALYSIS
PARTI
1.DoyoulikeAdvertisements?
AttitudetowardsAdvertisements
Onecanclearlymakeoutthatconsumersperceiveadvertisementsasasourceof
informationandawareness,beitgeneralortowardsTVcommercials.
Notmanypeoplefindadvertisementstobeirritating,annoyingorwasteoftime.Thisclearly
showsapositiveattitudetowardthemandhenceisagoodindicationformarketers.
3
9
Effectiveness of Internet
Advertising
2.DoyouwatchtheTV/Radiocommercialsduringcommercialbreak?
Fortelevisioncommercials,around70%ofconsumershadapositiveperception
towardsadvertisingonTV.
4
0
Effectiveness of Internet
Advertising
3.Whatmodeofadvertisinginfluencesyoutobuy/suggestanyproduct?
InfluencerbehindDecisionMaking
Influencersinfluencethedecisionmakingprocessofapotentialconsumer.Influencerscanbe
advertisements,friends,relatives,thirdpartyoritcanbeselfmotivatedalso.
InMumbai(asthetargetmarketisMumbai)wecaninferthatfriendsandrelativesarethe
majorinfluencersbehinddecisionmaking.
4
1
Effectiveness of Internet
Advertising
OnecaninferfromtheGeertHofstedCulturalDimensionsapossiblereasonforfriendsand
relativestobeamajorinfluencer.
GeertHofstedCulturalDimensions
Indiancultureiscollectivistic.Onthecollectivistside,wefindsocietiesinwhichpeoplefrom
birthonwards areintegratedintostrong,cohesiveingroups,often extended families(with
uncles,aunts
andgrandparents)whichcontinueprotecting
themin
exchangefor
unquestioningloyalty.
IndiaislowonUncertaintyAvoidance,i.e.thecultureismoreopentounstructuredideasand
situations.Thepopulationmayhavefewerrulesandregulationswithwhichtoattemptcontrolof
everyunknownandunexpectedeventorsituation
Therecommendationofsomeoneelseremainsthemosttrustedsourcesofinformationwhen
consumersdecidewhichproductsandservicestobuy.Andeventhoughnewmediatechnologies
areplayingaroleinglobalizing society,manypurchasingdecisionsarestillbasedonfirmly
heldnationalandculturalattitudes.
Being collectivistic, Indian consumers tend to trust the immediate grou p of people in the
decisionmakingprocess.Theyareopentonewthings,butadvise,suggestionsandcomments
offriendsandrelativesholdmorevalue.
42
Effectiveness of Internet
Advertising
Ifnotfriendsandrelatives,Traditionalmodeofadvertisingi.e.ATLwouldinfluencethem.Its
obviousasittheoldestformpromotionanditgoesbythesayingOldisGold.Thereisalsoa
handintheawarenesspartofwhichisdiscussedlateronintheanalysis.
Internetmarketinghasalongwaytogobeforeitstartsinfluencingthedecisionmakingprocess.
4.Whichmodeofadvertisingwouldyouprefer?
Consumerpreferenceofadvertising
Again,onecaneasilymakeoutthattraditionalformofadvertisinghasanedgeoverinternet
advertisingintermsofconsumerpreferencemodeofadvertising.Traditionalmodegotover
83%preferencesthanthatofinternetadvertisingwhichisahugemargin.
Thereasonforthisissameasthatofinfluencer,i.e.culturalattitudeofconsumerstowards
advertising.
ConsumerswouldprefertocheckoutATLelementsincasethereisaneedi.e.information
searchandtaketheirdecisionintermsofpurchasing
Onlineadvertisingisnoteffectivethantraditionaladvertising.Hencenullhypothesisisconfirmed
Effectiveness of Internet
Advertising
ConsumersTrustonadvertising
Theaboveisthechartfortrustlevelofadvertisementmediumfromconsumerspointofview.Again
recommendationandtraditionaladvertisementarealeapaheadofonlinemobileandBTLformof
advertising.OnecansaythatIndianmentalitytowardsonlineformofadvertisingisstillatthebaseline
andthatofmobileisevenworse.
InitialConclusionI
Onecanconfidentlyconcludethatconsumersstilltrustandpreferthetraditionalformofadvertisingthan
thatofonline.
44
Effectiveness of Internet
Advertising
PARTII
6.How much time do you spen d?
Timespent.
Onanaverage,apersonspendsmorethan4hoursontheinternetduringhisfreetimewhichis
70%morethanthatofTVandmoviesandaround300%morethanthatofradioandprint
medium.
Hence,onanaveragetheexposureofinternettoanindividualisaround150%morethanthatof
othermediumsi.e.thereachofmediuminternetismuchbetterthanthatofothers.
Butonecannotinferanythingabouttheeffectivenessofthemediumthroughexposure(reach)
alone.Oneneedstocalculatetheimpressions(actualnumberoftimesanindividualseesthe
ad)ofthemediumalso.
Reach
Reachreferstothetotalnumbeerofdifferentpeopleorhouseholdsexposed,atleastonce,toa
mediumduringagivenperiodoftime.
Impressions
Thisisatermusedbymediatodescribeandquantifythenumberofindividualswhohavean
"opportunity"toseeanADinagivenamountoftime.
45
Effectiveness of Internet
Advertising
ImpressionofTVAds(Adavoidance)
When there were only 2 channels which were Doordarshan, consumers di dnt have any
choicebuttheseethecommercialadsinbetweentheprograms.Thattimetheimpressionwas
veryhighandhencewasaveryeffectiveandefficientmediumofpromotion.
Now,withmorethan250TVchannels,20Radiochannels,theconsumerhaslotofoptions,he
maychangethechannel,ormayignoreitcompletely.
Accordingtothesurvey,around64%ofconsumersseetheadiftheyfindittobeentertaining,
creative,humorousorinsomewayattractiveandappealing.
Ofcoursetherearepeople(26%)whochangechannelsduringbreaksbutnotalways.Infact,
accordingtothesurveytherewasnoonewhochangethechanneleachandeverytime.
Effectively,75%ofviewerswillseetheadvertisementiftheadisattractiveandappealing.
Hencethereisaprobabilityof.75ofaconsumerviewingtheparticularadvertisement(for
creating awareness and info rmation) on television making it an effective mode of
communication.Asitis,itisthesecondmosttrustedmodeofcommunicationinthemindsof
people.
4
6
Effectiveness of Internet
Advertising
7.Ichangethechannelduringcommercialbreaks
ImpressionofOnlineAds(Adavoidance)
Whereasincaseofonlineadvertising,around79%ofconsumersignoreitcompletely,i.e.they
dontevenseethemandthatof21%seethemiftheyfindittobeattractive.
Outofthat21%,15%saidthattheintensionwasnottoseethoseads,buttheydidnthaveany
optionbuttoseethemastheywereInterstitialAdverts,PopupadsorFloatingads.Theseads
eitherblocktheviewofthecontent,orappearrightinthemiddleofthepage,orkeepson
floating(moving)aroundwhichisconsideredtobeveryirritatingfortheconsumers.
Effectively, only 6% saw the online advertisement coz they were of th eir interest or was
attractive.Somesaidtheylikedfewadscozoftheirinteractivityandanimationeffects.This
mightgivethatflashadsaremoreappealing.
Trustlevelsofonlineadvertisementsareatthebottomofthelist.Henceconsideringthetrust
levels and the effective i mpression, one can conclude that it is not an effective mode of
communication.
InitialConclusionII
Even though the reach of internet is much higher than that of other modes, its ability to attract
consumers for aware ness creation is very low. Hence comp aratively, traditional modes
especially TV commercials are a better option.
47
Effectiveness of Internet
Advertising
ent.Ahighrecallvalue
infersthattheawarenessof
thebrandishigh.
PART
III
8.Whichisthelast
Remembr onlineadyou
ance
remember?Which
brandwasit?
Remembra AdRemembrance
nceisthe
rememberi
ngonlythe
brandname
orits
colouror
the
contentsor
somepart
ofthe
advertisem
entandnot
thewhole
thing.
Recall
Recallis
bringing
something
backfrom
memory.
Onecan
recallmost
ofthe
elementsof
the
advertisem
48
Effectiveness of Internet
Advertising
9.Name
anyfive
online
adsyou
remembe
rlately
IncaseofOnlineads,only
54%couldremembertheir
lastfiveinteractionandof
themonly
30%couldrecall.
Ad
Rememb
rance&
Recall
Thisisfor
the last
five ads
that they
had seen
consciousl
y
or
unconscio
usly. In
case of
TV ads,
84%
InitialConclusionIII
remember
edtheirla Onecaneasilymakeout
stfiveads thereliabilityofonline
and of andTVadsthroughthe
them 83% remembranceandrecall
could
values.Itsprettyclear
49
Effectiveness of Internet
Advertising
femalerespondents.Thereis
a quite a lot of difference
between the number of
males and females in the
Number sample.
of
responde
Innearfuturethepercentage
nt
willdefinitelyincreasewith
the increase in the Female
Eawareness
Number
of
Respode
nt
Female
33%
Male
67%
As
observed
from the
given table
and Graph
the sample
constitutes
of 67%
male
respondents
and 33%
50
Effectiveness of Internet
Advertising
Age
Groupof
Respond
ent
Age
Group
Of
Respo
ndent
1 0%
upto 18
25%
36-54
12%
sample
53%
55
ab
ov
e
nt should
target more
(53 %) is
of
constituted
Youngs
Asit ofpeoplein
can
be the age
obser group
ved
from between19
the 35 years,
given
and also a
table,
the portion of
major
sample i.e.
porti
onof (12 %) of
51
the
to
increase the
awareness of
their
products or
services
whichinturn
increases
their sales
revenue
Effectiveness of Internet
Advertising
1
This study
was
conducted
withaview
to know
Most of the
that
whether
theagegroupof19
Online
Advertising
iseffective.
youngstersareusing
It has been
morenetthanthatof
observed
the
that there
community.
are many
factors,
which
effect this
ofinformationand
awareness,beit
generalortowards
TVcommercials.
of Problem
like
, Age, life
style social
factor, for
this
purpose a
structured
other
Onecanclearly
makeoutthat
consumersperceive
advertisementsasa
source
statement
Occupation
For
television
commercials,
around 70% of
consumers had a
positive
et market is
er
Mumbai) we can
ce
pt
io
the
influencers behind
to
decisionmaking
major
w
ar
Consume
ds
rs would prefer
to check out
ATLelementsin
case there is a
er
need
ti
information
si
their decision in
terms
purchasing.
i.e.
of
n
T
One can
confidently
conclude
that
consumers still
2
trustandpreferthe
In
traditionalformof
M
advertising than
thatofonline.
m
b
On
an
ai
average, a person
(a
4 hours on the
th
internetduringhis
freetimewhichis
ta
rg
that of TV and
52
vi
es
medium.
Effectiveness of Internet
Advertising
for
awareness creation is
According
tothe
survey,
around64%
of
consumers
seethead
iftheyfind
itto
modes
TV
commercialsareabetter
option.
be
2
The question that
entertain
wasaskedinthesurvey
ing,
creative,
was the latest ad that
humoro
they remember in the
usorin
some
specific medium. Only
way
11 % could remember
attractiv
eand
their last online ad,
appealin
whereas 90% could
g.
remember the TV
commercial.
Eve
1
n
though
the
reach of
internet
is much
higher
thanthat
of other
modes,
As observed from
5
3
Effectiveness of Internet
Advertising
CONCLUSION
isavastdifferenceintheir
trustlevels.
Practically
it has been
proved
through the
research
that online
advertising
is neither
effective
nor reliable
as
compared
Of course, it could be
because of the Indian
culture which is different
from the western countries
that are more into e
commerceandprefertobuy
thingsonlineandtheytrust
the internet more as
compared to the other
forms. Therefore, Internet
advertising is more
successful in those
the
countries. All in vain in
traditional
India, as we prefer to
medium
tangiblesthethingsthatwe
which is
buy.Beingcollectivewego
Television
shoppingalongwithfamily
commercial
friendsandrelatives.
to
5
4
Effectiveness of Internet
Advertising
is still very much an arena
whereingenuityandcreative
thinking very much rule the
roost. Thus marketing as
LASTWORD
usualhasnotchanged,i.e.it
8.
R
E
C
O
M
M
E
N
D
A
T
I
O
N
no fixed
way
or
Why only online
strategy foradvertising If there are
other opportunities, on the
marketing internet
onthenet.It
5
5
Effectiveness of Internet
Advertising
The
influenceof
traditional
media and
marketing
have over
aspects of business
communications
today.
consumer
perception
is waning
as people
migrate to
the variety
of social
technologie
societal
trend.
media
s
for
entertainme
nt and to
share
information
with each
conversations
some
positively influencebusinessresults.
and some
negatively, Nowweareinanerawhere
and raisedcompaniesmusttakeaction.
Thereachandinfluenceof
the
56
thetogrow.
Effectiveness of Internet
Advertising
TheSocialWebsNewCommunicationFormsDrawMoreUsers
Communicationshasalwaysbeenthefundamentalvalueoftheinternettoconsumers.Backin
thenetsearlydays,emailwasthekillerappthatmadetheWebamusthaveandcontinues
tobeamainstayoftheonlineexperience.Communicationactivitiessplitthelionsshareof
consumersonlinetimewithcontent,andfaroutstripcommerceandentertainment.
TechnologyPoweredCommunicationsAccelerateWordofMouth
FromtheearliestUseNetgroupstotodayshotvideosharingandsocialnetworksites,eachnew
innovationhasincreasedconsumersreachandinfluence.
1EmailwasfirstpracticalapplicationoftheInternetformostpeoopleanditwasthe
firstbwordofmouthacceleratorasitenabledpeopletoconnectwithfamilyand
friendsinstantly,frequentlyandatlittlecost.
1Usenetgroupsanddiscussionboardsmadeiteasyforpeopletofindotherswithsimilar
interestsandconsumerslearnedthattheInternetfreedthemfromthelimitofgeography
andpersonalconnections.Theinfluenceofwordofmouthexpandedrapidlywithinthese
verticalniches.
2Consumerreviewsitesusedthediscussionboardformat,butfocuseddiscussions
aroundspecificproducts,suchasbooksatAmazon.com.Consumersembracedtheidea
ofreadingbookreviewswrittenbyotherreadersandnotrelyingonprofessional
57
Effectiveness of Internet
Advertising
reviewers opinionstodecidewhethertopickupthelatestbestseller.
1Blogsfreedconsumersfromthelimitedmembershipofdiscussionboards.Blogsiteslike
BloggermadeitsimpleforanaverageWebusertoposthisorheropinionstotheworld.
Armedwithabrowser,basictypingskills,andafewstraightforwardWebcommands,
anyonecanpublishtheirthoughts,rants,ordailyjournalinafewminutesaday.
2Consumers soon learned their conversations arent limited to words. Digital
photographysboomintroducedpeopletosharingtheircreations,firstviaemailthenvia
firstgenerationphotosharingsiteslikephotobucket.com.
Digital camcorders and audio/video editing programs like Apples iMovie became
affordableanduserfriendlyversionsforhomeusers.Peoplewerenolongerlimitedto
textorstillphotos,andconsumercreatedvideositeYouTubequicklybloomedtosix
millionuserswatching40millionvideospermonth.
1SocialnetworkslikeMySpaceskewmoretowardthesocialendofthesocialtocontent
continuum.Theycombineaselectionofsocialmediatoolslikeblogs,photosharing,etc.
togivetheauthoraplatformforexpressingtheirpassionsandpreferences,whileatthe
sametimeservingasacentral
communicationhubforagroupoffriends.Early
on,bandswouldbuildonlinefan
communitiestopromotetheirmusic;nowbrands
likeBurgerKing,Toyota,Adidas,andCingularcreatecirclesoffriendsthatbecome
brandbuildinghubs.
SocialMediaTransformsCommunicationsintoContent
Thesenewtoolsblurthelinebetweencommunicationsandcontent.Blogsareanatural
exampleofhowcontentandcommunicationsblendintoasingleexperience.Eachentry(or
post asitisknown)isashortarticle,essay,newsitem,etc.Butbloggersmeantostimulate
feedbackandconversation,asreadersaddcommentsandlinkstootherblogstomakeapoint.
This interplay results in a dialogue of different perspectives and opinions. Sometimes the
resultingcommunicationscanbesoinfluentialtheyenduptakingthestoryinanentirelynew
direction.
SocialMediaBeginstoImpactBrands
Oneofthemostexcitingandpowerfulformsofsocialmediaisthevideo.Videosarethe
ultimateexpressionofcreativitysincetheycan mashup (allinone)elementsandmessages
fromaudio,video,blogs,companycreatedmessagesandmediacoverage.
58
Effectiveness of Internet
Advertising
YouTube
impressivequalifications or
and
credentialstobeinfluential.
MySpace
and Face On the other hand, all of
book are these negative opinions are
usually
preparearesponsebeforea
where
similar
interests
Dell
TheOther DrivingBusinessResults
Sideof
withSocialMedia
Influence
Therearefourprimaryways
Often thecompaniescanusesocial
discussions mediatodrivebusiness
results:
can be
positive
about your
products
and the
experiences
consumers
have had
1By
social
Monitoring
media,
companiescantrack
how their messages
arebeinginterpreted
inthemarketplaceto
und
erst
threats
and
competitors,
how
changing industry
the
trends,andcustomer
com
preferences.
pan
from
2Monitoring
also
y is
enables companies
perc
to
eive
d
and
to
lear
n
how
any
track
the
evolution of known
trends in order to
quantify the ones
gaining the most
attention
and
acceptance within
theirtargetaudience.
resp
onse
s or
mes
sage
cha
nges
sho
uld
be
appr
oac
hed.
This
will
also
prov
ide
valu
able
insi
3Measurement
provides
the
quantitative
reportingdataonthe
specific issues and
buzz driving media
coverage making it
easy to demonstrate
theimpactofPRand
marketingefforts.
4But social media
also calls for a
Discovery approach,
in which companies
learn
influences
what
are
mea
sure
59
thegrowthofmany
Effectiveness of Internet
Advertising
youhaveprobablyheardof
includeTwitter, Facebook,
MySpaceandYouTube.
Social
now lets know the role
Media And
of Social media to the
and
marketers. Social media
Email: gives marketers a voice
and a way to communicate
The
Most with peers, customers and
Effectivepotential consumers. Social
Marketi media marketing is also an
ng
engagement with online
Channel communities to generate
sin
exposure, opportunity and
India
sales. It seems that many
words.
typically
media
46%ofmarketersalsoplan
coming
60
thedeveloping
websites.
company
Effectiveness of Internet
Advertising
Interestingly, its notonlysocialmediathatisregisteringastoundinggrowthinIndia.Withthe
revolutioninsocialmedia,manysupportingchannelslikeEmail,Websitesetcarealsotrendingin
Indianmarket.However,socialmediaisleadingamongallandthistrendwillbecontinuedin2012.
Socialmediahastakenaleadwithsignificantmarginwithallitspossibleclosestcompetitors.In
India,Emailmarketingisgoingotbetheonlyonethatcouldbecountanywhereclosetosocial
mediaforvariouspromotionalchannelsinIndia.
Thebiggestsurprisecomeswithinteractiveformofpromotionalchannels.Insspiteofimproved
infrastructureandhighspeedinternetconnectivity,marketersseemstobelosingfaithinVideoand
Webcasts.Thesepromotionalchannelsaretheonlyonesexpectedtowitnessdeclinein2012.
If you think that social media is only for the small business owners that are trying out an
experiment, I have to correct you. Online Social Networking is a rapidly growing cultural
phenomenon. Around 2010 and 2011, social networking websites have sparked tons of media
storiesandblogpostsincludinglotsofbuzzwithinthesesocialnetworkingwebsitesthemselves
aboutsocialnetworking.
Manymarketersareshiftingstrategies,asarecentIndiarulinglimitsthenumberofpromotional
SMSmessagesmarketerscansendperday.ItisestimatedthatinternetpenetrationinIndiawill
remaininthesingledigits,butmarketersaresteadilyincreasingtheirattentiontodigitalmediaas
onlineusagegrows.Evenwithlowpenetration,103.6millionpeoplewillgoonlinein2012,andthe
numberofusersisexpectedtomorethandoubleto221.6millionby2015.
Readmore:http://www.dazeinfo.com/2012/02/06/socialmediaandemailthemost
effectivemarketingchannelsinindiastudy/#ixzz2OlKnUMlh
6
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Effectiveness of Internet
Advertising
10.CASESTUDY
CASESTUDYI
DellComputer
Itallstartedwithapost.June21,2005
IjustgotanewDelllaptopandpaidafortuneforthefouryear,inhomeservice.Themachine
is alemonandtheserviceisalie.Im havingallkindsoftroublewiththehardware:overheats,
networkdoesn'twork,maxesoutonCPUusage.
Andthere was nostop to itit gained momentumand even more momentumleading to
dedicatedhaters
Thewholethingstartedwithonepost.Itwasfollowedanother,thenthereweremany.DELL
HELLwasstarted.ItruinedthesalesofDellcomputers.Theonlyreasonwas,Delldidntupdate
themselveswiththeinternetproceeding.Itallhappenedwithouttheknowhowofdell.Whenthey
realizeditwastoolate.
Delllearnedfast,theyopenedtheirblogDirect2dell,whichanswersallthequeriesandproblems
aboutanythingandeverythingaboutthedelllaptops.ItwasfollowedbyDellIdeaStorm,a
collaborative blogging site where one can give their own ideas and discuss about general
technology, computers etc. They blogging was internal as well as external for the overall
developmentofthecompanyanditsimage.Thewholeexercisetook3yearstobebackontrack.
Learning
Thiscasestudygivesus(companies)agoodreasontobeupdatedwiththehappeningofthe
socialnetworkingsites.Bloggingandforumsarethenewinfluencersoftoday.Theyarethe
lighteningtoafireforest.Theyformtherootofthebrandimage.Oneneedstokeepatrackof
thisforasuccessfuloutcome.
62
Effectiveness of Internet
Advertising
features
II
including WiFi wireless
networking and browsing.
IPod
Touch
Credit
Apples
marketing
genius for
making its
latest
andstartingpriceof$299,
its no wonder the iPod
Touchisgeneratingalotof
attention.
generation
of iPods, Apple highlights the new
the iPod iPod WiFi and YouTube
Touch, and features, on their website.
this
Not surprisingly, in
seasons
September,theiPodTouch
foritsuseofsocialmedia.
personal
on
September
introductions to iPod
the
popular
sharing
sites.
helped to popularize as a
means to demonstrate and
Apples
Learning
Socialmediaisnowavital
element when releasing a
new product. It can draw
customers to your site,
explainandexhibitunique
features and benefits,
demonstrated,videotours
applications.RSSfeedsare
Apple
automaticallyupdated.
here. RSS
feeds are Whenincorporatingsocial
mediaintoyourmarketing
available mix,rememberafewkey
lessonsthat
63
Effectiveness of Internet
Advertising
Apple.comandtheiPodTouchhavetaughtus.First,makesureyoursocialmediafeaturesare
placedintuitively,makingthemeasiertofindwithinyoursite.Ifvisitorscantfindit,orhaveto
search too hard, they wont participate. Second, make sure to accelerate your social media
effortsasyourbusinessgrows.Customerswillexpectmorefromyou.Ifyourwebsiteexpands
or is redesigned, expand and redesign your blogs, discussion boards and social tagging
opportunities.Addvideocontent,podcasts,imagesandcustomerfeedbackelementsthatwill
buildon(andimprove)yoursocialmediacontent.
6
4
11.ANNEXURE
QUESTIONNAIRE
Name:____________________________________________________
AgeGroup(yrs):up to 18 19 to 35
Gender:
36 to 54 55 above
Female
Male
1.DoyoulikeAdvertisements?
Yes
No
Informative
Entertaining
Creates awareness
Irritating
Annoying
Waste of time
3.DoyouwatchtheTV/Radiocommercialsduringcommercialbreak?
Yes
No
Informative
Entertaining
Creates awareness
Irritating
Annoying
Waste of time
sometimes
depends on ad
6
5
6. WhichisthelastTVcommercialyouremember?Whichbrandwasit?
7. NameanyfiveTVcommercialsyourememberlately
1. _______________________________
2. _______________________________
3. _______________________________
4. _______________________________
5. _______________________________
8.Doyousee/checkonlineads/mailswhenyousurftheinternet?
Never
sometimes
depends on ad
9. Whichisthelastonlineadyouremember?Whichbrandwasit?
10. Nameanyfiveonlineadsyourememberlately
1. _______________________________
2. _______________________________
3. _______________________________
4. _______________________________
5. _______________________________
11. You use the internet for.. (Rank them in order of your preference)
Chatting and Social Networking
Email _____
Information _____
Entertainment_____
ECommerce _____
Downloading _____
_____
66
12.Whatmodeofadvertisinginfluencesyoutobuy/suggestanyproduct?
Magazines and newspaper
Friends and relatives
TV Commercial
Online advertisements
Social Media Blogs,forums,SocialNetworkingsites
13.Whichmodeofadvertisingwouldyouprefer?(Rankinorderofpreference)
TV commercials
_____
_____
_____
14.WhichmodeofAdvertisingwouldyoutrust?(Rankinorderofpreference)
Recommendations from consumers _____
Radio _____
TV
_____
_____
Magazines
_____
_____
_____
Brandwebsites
_____
_____
_____
_____
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7
Effectiveness of Internet
Advertising
15. You cannot live without (Rank in order of preference)
ComputerwithInternet
_____
TV
_____
Mobile
_____
IPod/Music Player
_____
Books
_____
16.Doyouthinkthatthefaceofadvertisingistransformingintermsoftechnologicaland
culturalimpact?
Yes
No
ThankYou
6
8
12.BIBLIOGRAPHY
6
9
13.WEBLIOGRAPHY
1http://www.wikipediaorg/
2http://www.wisegeek.com/
3http://www.geerthofstede.com/
4 http://www.truckads.com/
5http://www.afaqs.com/
6http://www.dazeinfo.com/2012/02/06/socialmediaandemailthemosteffective
marketingchannelsinindiastudy/#ixzz2OlKnUMlh
7https://www.advertsafe.com/article/credibilityforonlineadvertising.aspx
70
THANKYOU