New Final Proj

Report Summer Internship at HCCBPL
Chapter - 1
INTRODUCTION
The Internet is a worldwide collection of thousands of
interconnected computer networks, which is used by millions
of people daily. It is one place where one can do anything and
everything such as meet people, make friends, learn, teach, buy
and sell. What one can do on internet is limitless, what internet
can do for you is also limitless. It in fact is a powerful, low
cost, open, standard based technology platform.
Today,
as
the market environment is getting more and more competitive,

it has become extremely important for a marketer to
communicate and promote his offer to the potential consumers
and to retain them to sustain and survive in the market. Today,
the internet is making that vision possible, creating a nearly
universal point of connection between people, businesses, and
organizations, both large and small. It indeed is the best way of
communication, which is both cost effective and has a large
reach. Internet is fast emerging as a powerful medium of
advertising in the new millennium. With the number of Internet
users increasing manifold, the new medium is viewed as the
advertiser's dream. Internet advertising is becoming a part of
some companies marketing strategy- however it requires new
strategies and thinking. The benefits of Internet advertising is
its ability to cover people from different geographical area with
varied tastes and preferences.
School of Management Studies, CUSAT
Internet is changing the way consumers shop and buy

goods and services, and has rapidly evolved into a global
phenomenon. Many companies have started using the Internet
with the aim of cutting marketing costs, thereby reducing the
price of their products and services in order to stay ahead in
highly competitive markets. Companies also use the Internet to
convey communicates and disseminate information, to sell the
product, to take feedback and also to conduct satisfaction
surveys with customers. Customers use the Internet not only to
buy the product online, but also to compare prices, product
features and after sale service facilities the will receive if they
purchase the product from a particular store. Many experts are
optimistic about the prospect of online business. In addition to
the tremendous potential of the E-commerce market, the
Internet provides a unique opportunity for companies to more
efficiently reach existing and potential customers.
WHAT IS ONLINE ADVERTISING

On line advertising is similar to other forms of
communication except for one critical difference that is
Internet. Consumer behavior follows a model radically different
from traditional advertising media. These models can be
explained as the progression 'Awareness - Interest - Desire Action'. All these activities occur simultaneously in Internet
advertising. Online advertising entails, placing of electronic
messages on a web site or email platform which achieves the
following purpose-
Generates awareness for the brand.

Stimulates interest /preference for a product or service.
Provides the means to contact the advertiser for
information or to make a purchase
With the rapid expansion of the internet and the

explosive growth of the World Wide Web as a viable medium
for communication and commerce, companies hoping to
remain competitive into the next millennium are faced with
having to rewrite the rules of marketing. The Web began
a paradigm shift away from the passivity of TV/radio and its
one
way, firm-
to-
of information delivery to a many
consumer model
to
many
interchange
between the companies and consumers. This represents a new

interactive state in which consumers take control and have
access to all companies and products, utilizing the vast
resources of the web. The problem facing corporations today is
that this shift to the web must be accompanied with a new
marketing strategy. Old ways of advertising, merchandising and
providing service no longer meet the needs of the ever-evolving
internet consumer. The interactive features of the web enable
people to personalize their experience by choosing for
themselves among its huge array of content. It is against this
overwhelming backdrop of information that todays Advertiser
tries to find their customer and get the message to them.
Internet advertisement has grown rapidly in a short span of
time and is expected to command an even larger portion of

advertisers media budgets within the next decade. Internet
demographics are a marketer dream- net users are young, well
educated and earn high incomes. Web ad banners builds brand
awareness and may be better at generating awareness than
television or print advertisement. Advertisement seeks to
disseminate information in order to affect a buyer- seller
transaction.
Internet advertisement differs from other mediums by
enabling consumers to directly interact with the advertisement.
A consumer can click with his or her mouse on the ad for more
information or take the next step and purchase the product in
the same online session. Internet advertisement also gives
advertisers the opportunity to precisely target an audience,
enabling them to deliver ads that are customized to each users
particular interests and tastes.
HISTORY OF INTERNET ADVERTISING

Advertising has faithfully served the print industry for
200 years, and was applied to the Internet with every
expectation of success. Web advertising began with Center and
Siegels in famous Green Card Lottery message on the Usenet
site in April 1994 and was followed in October by advertising
placements for AT&T, MCI, Sprint, and Volvo on Hot-wired
and finally the idea caught on. The Advertisement grew in
sophistication, and today there are Static, rotating, scrolling,

animated, flash and interstitial banner ads all which are
designed to generate traffic, increase brand awareness and
generate leads and sales. Internet companies were founded on
advertising revenues, and for some years the companies
prospered. Rate depended on:i.
The Type of advertisement.
ii.
Where it appeared on the WebPages.
iii.
How it integrated with content.
iv.
How well it matched the advertisers target audien

ce
ONLINE ADVERTISING HAS TO OFFER:

1. Scalability Like television commercials, it doesn't cost very much to
increase the reach of an online ad campaign. There is no need
to print additional copies of a magazine, or to create and mail
direct-mail pieces.
2. Hot demographics The online community is more affluent, better educated,
and younger and more willing to spend than the population at
large. More and more people go online and the number is ever
increasing.
3. Targeted messages Unlike broadcast and print media, the Internet allows
advertisers to target exactly who will see their ads, and in what
context. Web publications serve every conceivable audience,
from the mass-market obscure niche groups. Beyond that, the
technology leads target customers by their computing platform
(PCs or Macintoshes), Web browser(specific versions of
Netscape Navigator or Microsoft Internet Explorer),domain
type (. com, .edu, .gov, .mil, or .net) or individual domains
(America Online, IBM, Prodigy).
4. Broad and flexible reach
While the Net cannot yet match television's market
penetration, the size of the online audience is growing very
quickly. More importantly, because you buy online ads by the
impression, you can buy as much or as little of that audience as
you desire. And that's true no matter how popular or specialized
the site on which your ads run- as a rule, advertising costs
depend on how many impressions you buy, not on the size of a
site's audience.
5. Cost-effective Partly because you pay only for exactly what you're
getting, online advertising can be extremely competitive with
other forms of advertising. If you buy 1,000 ad impressions, for
example, you know that exactly 1,000 people will see your ad.
6. Detailed tracking and measurement

Compared to online advertising, traditional media
advertising is like shooting in the dark. The Web allows
advertisers to gather detailed information on who saw an ad,
when, in what context, how many times and so on. Better still;
you get this information instantly, not weeks later when it's too
late to adjust your campaign. Of course, not every site currently
provides this level of feedback, and not every advertiser knows
what to do with it. Over a period of time, however, this is likely
to become one of Web advertising's most important competitive
advantages.
7. The ability to extend the transaction Traditionally, advertising was a one-way mechanism.
Apart from techniques like toll-free numbers pitched in
infomercials and mail-in coupons in print publications, there
was no way for customers to act on the information in the ad.
On the Web, though, interested customers can click, learn more,
and actually buy on the spot. There's simply nothing more
powerful.
8. Good Creativity -
Creative Design of Home page is very important for the

surfer to get hooked on to the site. Within seconds the user
should get an idea about the site and where to go within it. If
the opportunity is missed the user many never return.
HENCE CONTENT IS KING

Content is the most important element of a site. Content
rich Web pages lure users. The value on the web is information.
The beauty and challenge of the Web is that it gives the user,
the ability to personalize non-static information and choose
exactly what she sees.
Graphics & the visual elements also play an important
role in the users decision to stay or leave. Use of creative
concepts, colors, movement &sound enhance the chances of the
user staying longer on the site. In addition to all this the
creators of web sites & on line advertising must take into
consideration the factors like
a) How fast does the site download
b) How easily navigable the site is
c) What is the domain name
d) What are the other publicity & advertising activities which
building traffic to the site?
If all such parameters are considered while selecting the
web sites for online advertising, the impact of such advertising
will definitely be felt. Online advertising is one medium, which
helps to generate awareness about the brand being advertised, it
can help in creating an image, and it helps in educating the
audience and also builds interactivity & direct response. No

other traditional medium has the ability to give all of this. We
are still at the experimental stage but many clients have already
started allocating a budget towards online advertising & web is
being considered not only as an advertising medium but also as
a marketing tool. Hence online advertising, though slow to take
off, will definitely be a medium of the future.
COMPARISON BETWEEN TRADITIONAL AND

WEB ADVERTISING
Given below is the comparison between Traditional and
Web Advertising that will signify the importance of in today's
world.
Traditional Advertising
Web Advertising
Bound by geography and location
The Web market is borderless
Advertisement costs are relatively Web Advertisement rates are relatively
high
low
Lead times for implementation are Lead times are virtually non-existent
substantial
Limited interactivity exists, if at all
Web marketing is based on high level of
interactivity
Getting customer feedback is a pain Customer feedback is immediate
stakingly slow process
Tracking the effectiveness of the Effectiveness can be easily monitored
Advertisement efforts is relatively
difficult
Marketing efforts are restricted by On the internet, Advertisement can be
time and space
carried out 24 hours a day, 365 days a
Traditional marketing is static
year
Web advertising is dynamic and
multimedia supported
Traditional advertising does not Web advertising requires the user to take
invoke immediate action
immediate action - like clicking on the

banner ad and thus going to your site to
Advertisements
are
know more of company

passively The user has a high attention level while
received
he is on the net. Thus advertisements get
Advertisements are ubiquitous
noticed, remembered, and acted upon

Here, while searching for travel sites,
ads related to travel agencies are
displayed
Advertising does not target a focused Advertisements are much focused. PC
audience
software can be displayed to PC users,

while MAC users are not shown those
ads
STATEMENT OF THE PROBLEM:

Is Online advertising effective in influencing the
potential Buyers?
10
Internet is one of the important medium that owns all

kinds of features, which implies a great potential and powerful
advertising medium in the future. In addition, Internet has a
better impact than traditional media in the features like Format
Variety, Affinity, and Preservability. Furthermore, Internet is the
only medium so far which owns the feature of interactivity that
creates lots of new communication opportunities and
possibilities that were unable to be achieved in the past because
of the limitation of media technologies. In spite of its
advantages, is the online advertisement effective in influencing
the potential Buyers in modern ere?
OBJECTIVES OF THE STUDY:

To ascertain the importance of online advertising as a
promotional tool.
To assess the effectiveness of online advertising on
purchasing behaviour.
SCOPE OF THE STUDY:

This study helps in projecting the importance of online
advertising, how they effect on the psyche of consumer and
how it affects the buying behavior of the consumer. This study
will help the marketers understand what sort of expectations
consumers are having from marketers when it comes to
11
advertisements. The need of study has aroused by seeing the

importance of internet. Previously people used to buy the
products physically and barter system used to prevail
everywhere. But now people have started using internet as a
media for purchasing and also for advertising. It is the latest
world of the companies, gold mine of the future and mother of
all networks
METHODOLOGY
A research design is a market plan or model for
conducting a formal investigation. It is the strategy for a study
and the plan by which the strategy is to be carried out. It
specifies the methods and procedures for the collection,
measurement and analysis of data. The present study is based
on data collected from primary and secondary sources.
Primary Data:
The primary data is generated through extensive use of a
structured questionnaire, which has both the open end and
close-ended questions. They are conducted in Ernakulam City
and the data collected will be used for the purpose of analysis
and interpretation. Sample Size is 100.
Secondary Data:
The secondary data is collected through books, magazines and
other websites.
12
Sampling Method:
The sampling procedure used is convenience sampling, as in
questionnaire will be administered at places like the residents,
cyber center, Office and colleges in Ernakulam City.
LIMITATIONS:
The sample size is limited to 100 Internet users hence
the result of the study cannot be taken as universal.
The secondary data may not be truthful since it is from
unreliable sources.
Findings of the survey are based on the assumption that
the respondents have given correct information.
Since the respondents had to fill the questionnaire while
busy with their hectic schedule, many people were
reluctant to answer.
The study was conducted only in Ernakulam City and
therefore, several other potential samples outside the city
were neglected.
Chapter - 2
RESEARCH FRAMEWORK
INTRODUCTION:
In simple terms methodology can be defined as, giving a
clear cut idea on what methods or process the researcher is
13
going to carry out in his or her research to achieve research

objectives. In order to plan for the whole research process at a
right point of time and to advance the research work in the right
direction, carefully chosen research methodology is very
critical. Research methodology maps out the whole research
work and gives credibility to whole effort of the researcher.
More over methodology guides the researcher to involve
and to be active in his or her particular field of enquiry. Right
from selecting the topic and carrying out the whole research
work till recommendations; research methodology drives the
researcher and keeps him on the right track. The entire research
plan is based on the concept of right methodology.
RESEARCH QUESTION:
Main question
What is the effect of Online advertisement on consumer
buying behaviour?
Sub question
Does online advertisement give detail information about
product?
Does online advertisement communicate correction
information?
Have you tried any product after watching online
advertisement ?
14
MODEL
Information
Consumer
Online
Advertiseme
Communication
Behavior
nt
RESEARCH DESIGN:
The most suitable research design that we used for our
study is descriptive research design because descriptive
research design provides us information about the effects on
consumers, their purchasing behavior and their preferences
regarding the online advertising. Thus it gives us problem
based solutions regarding the study.
RESEARCH APPROACH:
Qualitative research approach - This research approach
enables us to study the qualitative aspects of the study. As the
consumer behavior, attitude influences, preferences regarding
the online advertising. This can be recorded through coding.
Quantitative research approach - this research approach
enables us to study the statistical and the quantifiable aspect of
the study. In this research the data collected is analyzed to
interpret the result regarding the study.
RESEARCH STRUCTURE:
15
The research structure on which our research study is

based is the survey method because our entire data collection
and interpretation of the result regarding measuring the
consumer behavior toward online advertising is based on the
questionnaire. The data is collected with the help of structured
questions which includes open ended and close ended questions
DATA SOURCES
Primary data source - through questionnaire and survey
Secondary data source - through internet and review of
literature
UNIVERSE OF STUDY
Sample size 100
Sampling technique - non probability sampling technique
(convenience sampling as per the personal convenience
regarding the area)
Area - Ernakulam
DATA ANALYSIS
The analysis will be done using Percentage method.
Percentage = (f/N)*100 where f = frequency, N = no. of
respondents
DATA PROCESSING
16
Collected data will be analyzed and tabulated with the

help of MS Excel and then they will be presented in the Tables
and Graphs in this report. These are the basis for drawing the
appropriate conclusion for this project.
Chapter - 3
REVIEW OF LITERATURE
WHAT IS ONLINE ADVERTISEMENT?
Online advertising is a form of promotion that uses the
Internet and World Wide Web for the expressed purpose of
delivering marketing messages to attract customers. On line
advertising is similar to other forms of communication except
for one critical difference that is Internet. 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
17
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. Consumer
behaviour follows a model radically different from traditional
advertising media. This model can be explained as the
progression 'Awareness - Interest - Desire - Action'. All these
activities occur simultaneously in Internet advertising. Online
advertising entails, placing of electronic messages on a web site
or email platform which achieves the following purpose Generates awareness for the brand.
Stimulates interest /preference for a product or service.
Provides the means to contact the advertiser for
information or to make a purchase.
THEORIES
AND
CONCEPTS
(ONLINE
ADVERTISING AND CONSUMER BEHAVIOR)

Traditional theories of consumer behavior identified four main
theories traditionally applied to offline consumer behaviour
which researchers have also used to analyse consumer
behaviour towards online shopping
The Theory of Reasoned Action
The Theory of Planned Behaviour
Stimulus Organism Response
Decision making models of consumer behaviour.
18
We consider each of these in turn below.

1. The Theory of Reasoned Action
The Theory of Reasoned Action (TRA) is a theoretical
approach which has been used extensively as a tool to help
explain consumer actions, in both on and offline contexts. The
TRA, created by Ajzen and Fishbein (1980, see also Ajzen,
1985), is a psychological model which investigates the various
factors underlying the decision of an individual to behave in a
particular way. The theory holds that human action is guided by
two kinds of considerations:
beliefs about the likely outcomes of the behaviour and the
evaluations of these outcomes(outcome beliefs)
beliefs about the normative expectations of others and
motivation to comply with these expectations (normative
beliefs).
Outcome Beliefs
Attitude
Normative
Subjective
Beliefs
Norm
Intention
2. The Theory of Planned Behaviour

The Theory of Planned Behaviour (TPB) closely resembles
the TRA, however the TPB adds the important factor of
perceived control. The normative beliefs in this study were
measured by asking respondents to identify three people who
19
Behaviour
were important to them and whose opinion they valued, and

asking them to indicate on an attitude scale how they believed
these people would think about shopping online for these
goods.Perceived control refers to an individual's perception of
the difficulty of performing a givenaction. Perceived control is
described as a control belief. Control beliefs suggest that a
person's motivation to perform an action is influenced by how
difficult that action is perceived to be, as well as the
individual's perception of how successfully s/he can, or cannot,
perform the activity. Therefore, if an individual has a high
degree of confidence that s/he can perform the activity, then
s/he will be more likely to perform the action.
Outcome Beliefs
Attitude
Normative
Subjective
Beliefs
Norm
Control Beliefs
Perceived
Intention
Control
3. Stimulus organism response

A further approach which has been used in the study of
consumer behaviour, in both on and offline shopping, is the
Stimulus
Organism
Response
(SOR)
model,
originally
proposed by Mehrabian and Russell (1974). This model, which

has been used to study consumption from an environmental
psychology perspective, provides a framework for studying the
Behaviou
20
impact which a particular environment has upon individual

behaviour. The SOR model has also been employed in
numerous offline retailing behaviour studies, albeit in modified
forms (Donovan & Rossiter,1982; Sherman & Smith, 1986).
Mummalaneni (2005) proposes that SOR is applicable to the
context of virtual shops
Design factor (for example, was the website colorful/drab;
well organised/ badly organized)
Ambience
(for
example,
was
the website
attractive/unattractive; boring/stimulating; dull/bright)

Pleasure (for example, did the website make the individual
feel
happy/unhappy;
bored/relaxed;
unsatisfied/satisfied;
pleased/ annoyed)
Arousal (for example, did the website make the individual
feel
frenzied/sluggish;
calm/excited;
dull/jittery;
unaroused/aroused)
Satisfaction (for example, 'this shopping trip was truly a joy';
'I continued to shop, not because I had to, but because I wanted
to')
Intended loyalty (for example, 'I intend to shop at this store in
the future'; 'I would recommend this store to my friends'; 'I will
avoid this shop in the future').
4. Consumers buying process
-Problem identification, information search, selection of
alternative, purchase decision and post purchase decision.
21
INTERNET
SPECIFIC
THEORIES
OF
CONSUMER BEHAVIOR
We now turn to consider the second, and smaller, family
of theoretical approaches to the study of online shopping. These
more recent theories work from the assumption that online
shopping behaviour and experience are fundamentally different
to offline behaviour and experience. Apart from a consideration
of the consumer decision process, the theories covered in this
section have not been applied to offline shopping.
We start by considering the consumer decision making
process and how certain authors believe it to be altered when
applied to the experience of internet shopping. Nelmapius,
Boshoff, Calitzand Klemz (2003) suggest that the nature of the
internet (where an individual sits alone, in afamiliar
environment, before an inter-connected network) means that
most of the decision making regarding online shopping is
carried out in isolation with little or no interaction with others.
Furthermore, they consider that the internet retail environment
is relatively unfamiliar and complex and that the sense
of unfamiliarity and complexity is compounded by the absence
of the stimuli of touch, taste and smell, which are available in
the physical environment. When using the internet, individuals
are shopping in dual dimensions, simultaneously. That is to say,
they are shopping in the privacy and comfort of familiar
physical surroundings (home or work) and, at the same time, in
the relative unfamiliarity of the 'virtual' surroundings of
websites. Because the shopping takes place in a virtual
22
environment, the consumer is free either to complete the

purchase or to discontinue it at any point, if not entirely
satisfied, without any social influence from other customers or
sales persons. Therefore, Nelmapius et al. (2003) suggest that
Lamb's et al. model needs to be adapted to exclude a social
dimension.
TECHNOLOGY ACCEPTANCE MODEL

People learn and refine their shopping skills throughout their
lives. Learning to shop on the internet however, means
developing a very specific set of skills and competencies, with
relation to a specific set of technologies. In acknowledgement
of this fact, a number of studies of online consumer behaviour
have utilised theoretical models, which explore the relationship
between attitudes towards technology and actual use of those
technologies. The most common model usedi n this regard has
been the Technology Acceptance Model (TAM) (Davis 1985,
1989).
Perceived
Ease of Use
Attitude
Behavioural
towards using
Intention to use
a new
a new
Perceived
Usefullness
23
The TAM is a specific application of the Theory of Reasoned

Action (TRA) to the case of technology usage. The main
factors of the TAM are Perceived Ease of Use (defined by
Davis as 'the degree to which a person believes that using a
particular system would enhance his or her job performance'),
and Perceived Usefulness (defined by Davis as 'the particular
degree to which a person believes that using a particular system
would be free of effort'). The model states that the likelihood of
technology being used is directly related to these two factors.
The TAM has been used both in its original form and in a form
variously modified for use specifically in the study of online
shopping behaviour. Dishaw and Strong (1999) combined the
TAM with the Task-Technology Fit model (TTF), which states
that technology will be more likely to be used, the closer it
supports ('fits') the activities of the user.
PAST FINDINGS
Review of literature refers to identifying already existing
literature in the area of consumer behavior and marketing
strategies, to find out what contribution has already been made
so that it can serve a valuable base for further expanding the
literature. This chapter deals with the review of different
studies and researches which directly or indirectly relate to the
topic under study. In this chapter the review of various studies
in the context of the research problem is given in concise.
24
IMPACT OF ONLINE ADVERTISING

Magid Abraham (2008) studied that the internet is
widely considered the most measurable of advertising media,
but those easily tracked click-throughs and e-commerce sales
don't tell the whole story. Far from it, Internet advertising
stimulates off-line sales, too - in most cases, our firm finds that
online campaigns increase sales more at advertisers' retail cash
registers than on their websites. Data like that should embolden
executives to shift ever more dollars to online advertising.
Mike Bernstein (2009) Studied that the outreach of

consumers to marketers has become dramatically more
important than marketers' outreach to consumers. In today's
decision journey, consumer-driven marketing is increasingly
important as customers seize control of the process and actively
'pull' information helpful to them.
RECENT TRENDS OF ONLINE ADVERTISING

Ravi Kiran (2008),Anupam Sharma (2008) and KC
Mittal (2008) studied that the growing use of Internet in India
provides a developing prospect for E-marketers. If E-marketers
know the factors affecting online buyers' behavior, and the
relationships between these factors and the type of online
buyers, then they can further develop their marketing strategies
to convert potential customers into active ones, while retaining
25
the existing online customers. This study focuses on factors

affecting the online buyers' behavior. It also investigates how
online advertisements influence consumers to buy online. The
paper focuses on the current scenario of internet use and
attitude towards e-buying. Is E-shopping in India a reality or is
it still an uncherished dream of the Indian consumer/seller?
With this perspective in mind the current research tries to
analyze the factors affecting E-shopping and consumer
concerns in online shopping. E-marketers need to focus more
on research measures to encourage the consumers to purchase
online. Accurate advertisement about product features, product
warranties, avenues for customers' feedback complaints and
certification of the websites can play an important role to boost
the Indian consumers' confidence on E-shopping.
Steve Hemsley (2010) studied that Consumer behaviour
online is changing rapidly. Facebook overtook Google to
become the most popular site in the US last month, according
to Hitwise, demonstrating how attached consumers are to their
online social lives. And access to social media is no longer
confined to our desktops. The increasing number of
smartphones means that owners have access to the web at all
times. Brands are keen to capitalise on the rise of real-time
social search and Twitter search. Spending money in these
areas is a must, argues ShaunSpringer, vice-president of brand
and
digital
marketing
of smartphones
is
also
at
MasterCard.
making
The
marketers
popularity
think
more
26
innovatively about mobile search, with AutoTrader one of the

latest brands to launch a search application for the iPhone.
PERCEPTION
OF
CUSTOMERS
TOWARD
ONLINE ADVERTISING
The
study
of Fen-Hui
Lin ,Yu-Fan
Hung(2009)
states that a sponsored link is an innovative advertisement

format that simplifies the advertising message with text forms.
This study seeks to investigate the perceptions and attitudes
of Internet users toward the sponsored link. The research is
made up of two parts. The first part empirically tests the causeand-effect model of the advertising values and the advertising
attitudes.
Four
advertising characteristics are used
as
antecedent constructs: informativeness, entertainment, irritation

and credibility. The second part of the study performs a cluster
analysis according to the information search degrees of Internet
users toward and how those four characteristics affect their
values and attitudes vice a sponsored link. Using 711 valid
replies from the survey, the Partial Least Square analysis shows
that the credibility plays the most important role. The cluster
analysis segregates the Internet searchers into four groups: light
searchers, middle searchers, heavy searchers yet using only a
few websites, and heavy searchers. Entertainment is significant
for two groups and informativeness shows no importance. The
research results imply that Internet users concern more on
credible or trustworthy of sponsored links. Irritation generated
negative attitudes so that the advertisers should avoid the
27
possible irritating effects of sponsored links such as negative or

threatening words.
Chapter - 4
INDUSTRY PROFILE
"Advertising is the ability to sense, interpret . . . to put
the very heart throbs of a business into type, paper and ink."
- Leo
Burnett
This statement quoted by Leo Burnett a few decades ago
still holds ground as strongly as it did back then. Perhaps, with
the new medium called the Internet, we can substitute type,
paper and ink with site, page and link.
Internet is fast emerging as a powerful medium of
advertising in the new millennium. With the number of Internet
users increasing manifold, the new medium is viewed as the
advertiser's dream. The Internet is the fastest growing medium
in the 2000s with millions of users and an average estimated
growth of 124% annually.
It has great potential as an advertising medium. Online
advertising offers the advantage of reaching and interacting
with the target audience, irrespective of geographical barriers,
in real time. Internet offers the flexibility of two-way
28
communication, through feedback and interaction in real time.

Online advertising presents the flexibility of moulding the
campaign in response to the effectiveness in real time.
Internet advertising is becoming a part of some
companies marketing strategy- however it requires new
strategies and thinking. The benefits of Internet advertising are
its ability to cover all
Promotional objectives from awareness to action by
leveraging all Five Elements in the promotion mix. The Internet
is also a highly selective, cost effective media with greater
measurability than any other media.
Despite higher global reach Internet is not yet a local
mainstream media. The Internet offer companies targeting welleducated, innovative, affluent males or students great potential
for success as their segments are highly represented. Products
with high information intensity and high buyer involvement are
also appropriate for Internet promotion due to its large
information capacity at low costs. Its distribution opportunity is
especially suitable for the increasing channel of mail order
products.
Low product fit or low audience fit companies can
benefit by building a brand image to establish a user link or
simply to learn about interactive media. Traditional advertising
is consumed passively, yet on the Internet, users have to
actively select an advert. This change the way advertisers
generate and retain customers. To persuade visitors to revisit
and spend time on the website, advertisers must fulfill real
29
customer needs on a continuous basis. This requires clear

objectives
and
targeting.
Informative
quality
content,
advertisement with interesting entertainment or direct sales

possibilities can add value to the customer.
The commercial industry is going through a rapid and
radical development from the 2000's. Growth in disposable
income, increased purchase information and alternative service
and product offerings have expanded the customers bargaining
power. Todays advertiser must individualize, differentiate and
customize to achieve advertising effectiveness. Targeting and
building a relationship with customers on an individual basis is
essential to be a successful advertiser in the 2000's.
The advertisers ideal is the best possible reach within a
well-defined audience (selectivity) with good possibilities of
feedback and low costs, while mass communication often
forces the advertiser to accept high reach with a low selectively
and no feedback opportunities in order to achieve a reasonable
cost-effectiveness.
The
following
criteria
evaluate
the
effectiveness of the different media. They may be new concepts

right now but will be most essential part of business world in
near future. In fact, the future we are talking about is already
here! And to survive in this cutthroat competition, sooner your
organization enters cyber world, better - because in cyber
world, it's always a one-way traffic, no looking back but just
zooming ahead - at lightning speed!
30
Chapter - 5
PRODUCT PROFILE
Some of the important products offered by Web
Advertising are listed below:
31
1. Web banner and panel ads

These are small rectangular graphic images that usually
have a call to action (Like "Click here"). These banners are
placed on other high traffic web sites like Yahoo, AOL etc so as
to get an opportunity To See (OTS). They can be placed at the
top or bottom of a page. Or anywhere you like them to be.
2. Interstitial
Another model of Web advertising - A short-lived,
usually animated ad that pops up in the browser window for
about 5-10 seconds while a page is downloading and then
disappears.
3. Inline Advertisements
Inline ads provide a way for sponsors to generate leads
or deliver rich brand building messages. Similar to print
adversarial, inline ads integrate within site content, ensuring
that a site visitor will see them for sure. Example: When you
search using Meta crawler and get results, you will see such
inline ad in-between search results.
4. Pop-Up Windows
32
A pop-up window delivers the advertisement in a new

window on top of the site content. When you visit Homepages
on Tripod.com or Geocities.com (Advertisement supported free
homepage sites), a secondary window automatically pops up
continuously rotating advertisement of sponsors.
5. Website sponsorships
Here, the entire Website is sponsored by an advertiser.
These sites are usually content or service based and has a very
high traffic because of their utility value.
6. Classifieds
Similar to classifieds in the real world, advertisers in
Cyberspace can pay for their advertisements to be listed in
online classifieds. From products
and services to headhunting and matrimonial, any subject is
covered.
7. Mailing list ads
Mailing lists are e-mails sent to group of subscribers at
regular intervals focusing on a particular topic. These e-mails
can contains tips, hints or even jokes for free and are sustained
by advertisements that are interspersed throughout the body of
the e-mail. Ads are usually in 6-8 line of text instead of
graphics and animations like banner ads.
33
8. Ads on Chat
Chat is a service available on the net for two or more
people to converse with one another through their keyboards.
Companies that offer these chat services for free, earn their
revenue from advertisements that are displayed to everyone
using these chat services. So, Web marketing and e-Business,
both are new concept of doing the business and are intercombined and are irreplaceable part of the cyber world.
9. 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. 7Search 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.
10.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.
34
11.Mobile advertising
Mobile advertising is ad copy delivered through wireless
mobile devices such as smart phones, 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.
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.
1. CPM (cost per mille)
Cost per mille, 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
35
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 is 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 perimpression payments a good proxy for the results they desire.
2. 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. Like impressions, not all recorded clicks are valuable
to advertisers. Gold Spot 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.
3. CPE (cost per engagement)
36
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.
4. CPV (cost per view)
Cost per view video advertising. Both Google and Tube
Mogul 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 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 example is CPD (cost per day) where advertisers pay a
fixed cost for publishing an ad for a day irrespective of
impressions served or clicks.
37
REGULATION
In general, consumer protection laws apply equally to
online and offline activities. However, there are questions over
which jurisdiction's laws apply and which regulatory agencies
have enforcement authority over transborder activity.
As with offline advertising, industry participants have
undertaken numerous efforts to self-regulate and develop
industry standards or codes of conduct. Several United States
advertising industry organizations jointly published SelfRegulatory Principles for Online Behavioral Advertising based
on standards proposed by the FTC in 2009. European ad
associations published a similar document in 2011. Primary
tenets of both documents include consumer control of data
transfer to third parties, data security, and consent for collection
of certain health and financial data. Neither framework,
however, penalizes violators of the codes of conduct.
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
38
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. Otherwise, the U.S. Federal Trade
Commission frequently
supports
industry
self-regulation,
although increasingly it has been undertaking enforcement

actions related to online privacy and security. The FTC has also
been pushing for industry consensus about possible Do Not
Track legislation. 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.
DELIVERY METHODS
Many laws specifically regulate the ways online ads are
delivered. For example, online advertising delivered via email
is more regulated than the same ad content delivered via banner
ads. Among other restrictions, the U.S. CAN-SPAM Act of
2003 requires that any commercial email provide an opt-out
mechanism. Similarly, mobile advertising is governed by
the Telephone Consumer Protection Act of 1991 (TCPA),
which (among other restrictions) requires user opt-in before
sending advertising via text messaging.
39
ADVANTAGES OF ONLINE ADVERTISEMENT

1. Target Marketing: A major advantage of the web is the ability to target very
specific groups of individuals with a minimum of waste
coverage. In the consumer market, through personalization and
other targeting techniques, sites are becoming more tailored to
meet once need and want.
2. Message Tailoring: As a result of precise targeting, messages can be
designed to appeal to the specific needs and wants of the target
audience. The interactive capability of the net makes it possible
to carry on one-to-one marketing with increased success in both
the business and the consumer markets.
3. Interactive Capabilities: The interactive nature of the web leads to a degree of
customer involvement. Site visitors are already interested
enough in the company and/ or products to visit.
4. Information access: Perhaps the greatest advantage of the Internet is its
availability as an information source. Internet users can find a
40
plethora of information about almost any topic of merely by

conducting search through one of the search engines. Once they
have visited a particular site, uses can garner a wealth of
information regarding product specification, costs, purchase
information, and so on. Links will direct them to even more
information if it is desired.
5. Creativity: Creatively design sites can enhance company's image
leading to repeat visits, and positively position the company or
organization in the consumer's mind.
6. Exposure: For many seller companies with limited budget the www
(World Wide Web) enables them to gain exposure to potential
customers that heretofore would have been impossible. For a
function of the investment that would be required using
traditional media, companies can gain national and even
international exposure in a timely manner.
7. Speed: For those requiring information on a company, its
products, and /or its service offerings, the Internet is the
quickest means of acquiring this information.
DISADVANTAGES OF INTERNET
41
1. Measurement problem: One the greatest disadvantage of the net is the lack of
reliability of the research numbers generate. A Quick review of
forecasts, audience profiles, and other statistics offered by
research providers will demonstrate a great deal of variance
leading to a serious lack of validity and reliability. One of the
industry's largest and most sited trade publication has written
an expose of a heavily sited Internet research company,
referring to the number it provides as "scary" feathers have
stressed concern over the fact that most sites figures or not
audited, which mainly to rampant cheating in the respect of the
number reported.
2. Audience characteristic: Due imparts to the accelerating growth of the net,
audience characteristic change quickly. Numbers reported may
be completed quickly and are often vary from one provided to
the next.
3. Web Snarl: At times, downloading information from the net takes a
long time. When there are a number of users, the time
increasing and some Sites may be inaccessible due to too many
visitors. For many users who expect speed, this is a major
disadvantage.
42
4. Costs: The cost of doing business on the MAT continues to

increase. While it is possible to establish a site in expensively,
establishing a good side and maintaining it is becoming more
and more costly. As noted earlier, Levis for the cost of
maintaining a site is considered "world-Class " was prohibitive
and one of the reason for abandoning its E-commerce efforts.
5. Limited production quality: Although it is improving, net advertising does not offer
the capability of many competitive media for a production
standpoint. While the advent of advanced technologies and rich
medium is narrowing the gap, the net still lags behind some
areas.
6. Poor reach: While the Internet numbers are growing in leaps and
bounds, its six is still far behind that of television. As a result,
interest companies have turned to traditional medium to
achieve reach and awareness goals. In addition statistics says
that only a small percentage of sites on the Internet are captured
and that the top 50 sites listed account for95 percent of the site
visited.
43
7. Language: If I am selling the goods through the media the buyer

prefer to get the information of the products or services with his
own language but the advertiser has no option than to advertise
in one single language which is a major disadvantage.
8. 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.[81][82] 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 2013 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.
44
9. Trustworthiness of advertisers
Scammers can take advantage of consumers' difficulties
verifying an online persons 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.
10.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.[6]
45
Chapter - 6
DATA ANALYSIS AND
INTERPRETATION
46
6.1 Age of the respondent

Table 6.1
Internet
Caf Students Business
Users
10
3
2
10
25
upto 18
18 - 25
25 - 40
above 40
Total
5
10
5
5
25
People
3
12
7
3
25
Residential
Percent
Members
4
8
7
6
25
22
33
21
24
100
Figure 6.1
120
100
80
above 40
25 - 40
60
18 - 25
40
upto 18
20
0
Internet Caf Users
Business People
Percent
Majority of the respondents are in the age group of 18

25.
6.2 Gender of the respondent
47
Table 6.2
Internet
Students Business Residentia
Percent
Male
Femal
Caf Users
18
13
7
12
People
19
6
l Members
10
60
15
40
e
Total
25
25
25
25
100
Figure 6.2
100
90
80
70
60
50
40
30
20
10
0
60% of the respondents are Male and the remaining

respondents are Female.
48
6.3 Monthly income of the respondent

Table 6.3
Internet
Caf Users
Below 10000 7
10000 - 30000 12
Above 30000 6
Total
25
Student
Business Residentia
Percent
s
20
5
0
25
People
2
20
3
25
33
47
20
100
l Members
4
10
11
25
Figure 6.3
Percent
Residential Members
Above 30000
Business People
10000 - 30000
Below 10000
Students
Internet Caf Users

0
20
40
60
80 100 120
47% of the respondents monthly income are in between

Rs.10000/- to Rs.30000/-.
49
6.4 Occupation of the respondent

Table 6.4
Internet
Students Business
Caf Users
Student
0
Self Employed 25
Employed
0
Home Maker
0
Total
25
People
0
0
25
0
25
25
0
0
0
25
Residential
Percent
Members
0
0
0
25
25
25
25
25
25
100
Figure 6.4
Percent
Residential Members
Home Maker
Employed
Business People
Self - Employed
Student
Students
Internet Caf Users
0
20
40
60
80
100
The respondents are equally divided according to the

profession. i.e. 25% are Students, 25% are Self Employed, 25%
are Employed and remaining 25% are Residential members.
50
6.5 How often do you use the internet in a week?

Table 6.5
Internet Caf Student
Users
Daily User 5
1 3 days 12
3 6 days 8
Total
25
s
14
7
4
25
Business
Residential
Percent
People
15
4
6
25
Members
4
12
9
25
38
35
27
100
Figure 6.5
40
35
30
25
20
15
10
5
0
Daily User
1 - 3 days
3 - 6 days
38% of the respondents are daily users. 35% of them are

1 3 days users. And 27% of the respondents are rarely using
Internet in a week.
51
6.6 What is your main aspect for using internet?

Table 6.6
Internet
Student
Business
Residentia
Percent
Online Shopping
Entertainment
E-mail
Social
Caf Users
2
8
5
6
s
9
3
4
7
People
9
3
6
2
l Members
8
6
4
6
28
20
19
21
Networking
Information
Total
4
25
2
25
5
25
1
25
12
100
Figure 6.6
30
25
20
15
Online Shopping
10
Entertainment
5
0
E-mail
Social Networking
Information
28% of the respondents main aspect for using Internet is

online shopping and the least i.e. 12% of the respondents used
to gather or find out information.
52
6.7 How often do you watch the online advertisements?

Table 6.7
Internet
Students Business
Caf Users
Every time
4
Occasionally 7
Depends on 9
4
10
8
People
3
8
9
Ad
Never
Total
3
25
5
25
5
25
Residential
Percent
Members
9
9
5
20
34
31
2
25
15
100
Figure 6.7
Every time
Ocassionaly
Depends on Ad
Never
15
31
3
8
10
4
5
9
7
4
Majority
of
the
5
9
8
3
respondents
2
5
9
9
watched
34
20
online
advertisements either occasionally or depending on the ad and

15% of them never watched.
53
6.8What type of online advertisement do you prefer watch

the most?
Table 6.8
Internet
Student
Business
Residential
Percent
Caf Users
Flash Ads
2
Pop-Ups
8
Questionnaire 5
Ads that run 6
s
2
9
5
8
People
1
10
6
8
Members
2
8
4
10
7
35
20
32
through
None
Total
1
25
0
25
1
25
6
100
4
25
Figure 6.8
Percent
Residential Members
None
Ads that run through
Business People
Questionnaire
Pop-Ups
Students
Flash Ads
Internet Caf Users

0
20 40 60 80 100
The common advertisements watched by majority of the

respondents are Pop-up ads and ads that run through. i.e. 35%
and 32% respectively.
54
6.9If I find a video that I enjoy, but it is also an

advertisement or has a product plug
Table 6.9
Internet
Students Business Residential Percent
Caf Users
People
Members
14
16
41
13
32
7
25
6
25
6
25
27
100
I will still exchange

it with friends and 5
colleagues
I will not exchange
it with friends and 12
colleagues
I will still email it
to a lot of people
Total
8
25
Figure 6.9
I will still exchange it with friends and colleagues
I will not exchange it with friends and colleagues
I will still email it to a lot of people
41
32
12
14
16
4 7
3 6
13
27
Majority of the respondents can still exchange the ad

with friends and colleagues.
55
6.10 Do
online
advertisements
fulfil
your
security
requirements?
Table 6.10
Internet
Yes
No
Total
Caf Students
Users
12
13
25
10
15
25
Business
Residential
Percent
People
6
19
25
Members
14
11
25
42
58
100
Figure 6.10
Percent
Residential Members
Yes
Business People
No
Students
Internet Caf Users
0
10
20
30
40
50
60
58% of the respondents are of the opinion that their

security requirements were not fulfilled. And the remaining
42% were satisfied.
56
6.11 Which product would you usually prefer to buy by

watching online advertisement?
Table 6.11
Apparels
Books
Electronic
Internet
Student
Business Residential
Percent
Caf Users
9
3
5
s
8
6
7
People
5
2
7
Members
10
3
5
32
14
24
2
2
25
11
0
25
1
6
25
20
10
100
gadgets
Tourism services 6
Others
2
Total
25
Figure 6.11
Percent
Residential Members
Others
Tourism services
Business People
Electronic gadgets
Books
Students
Apparels
Internet Caf Users

0
20 40 60 80 100 120
The most preferred product preferred by the respondents

to purchase online is Apparels.
6.12 Have you purchased anything online?
57
Table 6.12
Internet Caf Students
Business
Residential
Percent
Yes
Users
14
17
People
18
Members
19
68
No
11
32
Total
25
25
25
25
100
Figure 6.12
100
90
80
70
60
50
40
30
20
10
0
Yes
No
68% of the respondents had shopped online whereas

32% of them have not purchased anything online.
6.13 When a video advertisement plays before the viewing

of a free video I chose to watch, I will
Table 6.13
58
Internet
Caf Users
Sit and watch
6
Open
another 12
Students
Business Residential
Percent
14
7
People
12
5
Members
9
9
41
33
4
25
8
25
7
25
26
100
program window
Turn
attention
away
from
computer
Total
7
25
Figure 6.13
Percent
Residential Members
Sit and watch
Open another
program window
Business People
Turn attentionaway
from computer
Students
Internet Caf Users
0 5 1015202530354045
41% of the respondents will sit and watch the

advertisement before viewing the free video. 33% of them will
open another program window.
6.14 What are the barriers behind not purchasing online?
Table 6.14
Internet
Students
Business Residential Percent
59
Privacy
High risk
Tiresome
Caf Users
9
6
8
registration process
Others
5
Total
25
8
4
10
People
12
3
7
Members
8
3
11
37
16
36
3
25
1
25
2
25
11
100
Figure 6.14
40
35
30
25
20
15
10
5
0
37
6 8 5
12
10
4
7
1
16
11
3
36
Privacy
High risk
Tiresome registration process
Others
The main barriers behind not purchasing online

are the privacy concerns and the tiresome registration process.
i.e. 37% and 36% respectively.
6.15 Do online ads drive your mind towards purchasing a

product?
60
11
Table 6.15
Business
Residential
Percent
Yes
Users
18
13
People
19
Members
10
60
No
12
15
40
Total
25
25
25
25
100
Figure 6.15
Percent
34%
66%
68% of the respondents have shopped online whereas

32% of them have not purchased anything online.
61
6.16 Which is the main factor which drives you towards

online shopping?
Table 6.16
Internet
Caf Users
Convenience
7
Fast and Time 8
saving
Trustworthy
Superior selection
Product comparison
Others
Total
Students Business
6
4
0
0
25
Residential Percent
6
9
People
7
7
Members
9
5
29
29
6
1
3
0
25
7
3
1
0
25
5
5
1
0
25
24
13
5
0
100
Figure 6.16
Others
Product comparison
Superior selection
Trustworthy
Fast and Time saving
Convenience
0
10
20
Internet Caf Users
Students
Residential Members
Percent
30
40
50
Business People
The main factor which will drive the respondents

towards online shopping will be the convenience, fast and time
saving factor. i.e. 29% each.
62
60
6.17 Have you reduced your frequency of shopping

through brick and mortar stores with the emergence of
online shopping?
Table 6.17
Internet
Yes
No
N/A
Total
Users
10
9
6
25
Caf Students
7
11
7
25
Business
Residential
Percent
People
12
6
7
25
Members
9
9
7
25
38
35
27
100
Figure 6.17
Percent
27%
38%
35%
38% of the respondents have reduced going to brick and

mortar stores with the emergence of online shopping whereas
35% of them have not reduced.
63
6.18 Do you think online advertising is an effective

promotional tool?
Table 6.18
Business
Residential
Percent
Yes
Users
13
14
People
9
Members
11
47
No
12
11
16
14
53
Total
25
25
25
25
100
Figure 6.18
70
60
50
40
30
20
Yes
10
No
53% of the respondents are of the opinion that online

advertising is not as much as an effective promoting tool.
64
6.19 Do you think online advertising should be more

enhanced and promoted?
Table 6.19
Business
Residential
Percent
Yes
Users
14
15
People
18
Members
19
68
No
11
10
32
Total
25
25
25
25
100
Figure 6.19
70
60
50
Yes
40
No
30
20
10
No
0
Internet Caf Users Business People
Yes
Percent
Majority of the respondents are of the opinion that online

advertising should be more enhanced and promoted to attract
large number of customers.
Chapter - 7
65
FINDINGS AND SUGGESTIONS

MAJOR FINDINGS
1. The most preferred online advertisement watched by
majority of the respondents is Pop Up ads.
2. The main concern for not purchasing online is the
Privacy issues.
3. Maximum people go for online shopping nowadays
because they think that it is much convenient and faster
way for shopping.
4. Many of the respondents have stopped visiting brick and
mortar stores because of online shopping.
5. A strong group of people feel that online advertisement
is good promotional tool for awareness of the global
brands and local brands also. Thus they think that online
advertisement should be more promoted.
MINOR FINDINGS
1. Maximum online purchase is for apparels, electronic
gadgets, and tourism services.
2. Most of the internet users are in the age group of 1825years with 33% which indicates that youngsters are
using more net than that of the other community.
66
3. Almost all the groups under demographics are daily user

of the internet with the emergence of technology and its
availability.
4. The main aspect for using Internet is Online Shopping.
5. It is found from the survey, that almost all the users of
internet observes or watch the online advertisement
6. Almost 58% people think that it is not a secure source of
shopping.
7. 68% of the respondents have purchased online..
8.
The main concern for not purchasing alone is the

Privacy issues.
9. Only 40% of the respondents mind does not drive their

minds towards purchasing online.
SUGGESTIONS:
It
is not only important to pay strong attention to the
security issue and create new, innovative safeguards that

protect consumers but the merchants should promote
these safeguards to the market place and make the
prospective consumers aware that the communications,
personal data, credit card accounts, and transaction
information can be protected.
Go International with multiple language:
67
Offer your web site in multiple languages. Like many sites

come in Dutch, Spanish, Slovene, French, Czech, German,
Russian, and Italian. Translation service on websites is also
good which will help retain customers.
Use of multi-media
As we have seen the potential for banner and Internet ads,
informative and creative ads are also preferred therefore hot
new designs and innovative sales concepts should be
developed. Obviously, the biggest bridge to cross is download
time. If a little radio-like audio message that plays from your
site upon a click of mouse or a T.V-mini commercial that plays
at your banner on click of a mouse, it will be much more
effective and interesting.
Use Banner Ads that Give Viewers Chance to Interact
with Banners
Interactive banner designs can be used wherein the client
can printout a product sheet from the banner itself, order a
product through a secured order form on the banner itself, click
which button he prefer and be directed to a specialized product
marketing page.
Free offers
The word free is just as effective in advertising online as it
is offline. By sponsoring a freebie, a simple name submission
68
drawing can also get viewers to go through ads in the process

they become aware of the advertisement.
Target Audience
Keep your target audience in mind. Business people aren't
going to have the time or inclination to participate in game-type
ads. On the other hand, teenagers love them. If your target
group is younger people, games might be the thing for you.
Design your ad to meet the preferences of your target customer.
Provide content on your site
As you surf the Web, take note of information that supports
your
advertising
claims.
Surveys,
research,
reports,
testimonials, etc. can all provide valuable information that

could move a customer from the point-of-decision to the pointof-purchase.
Few tips that will help in making a connection with the
clients:
1. Use you or your instead of we or us.
2. Know your target audience very well. This is the only
way you will be able to communicate with them on a
personal level.
69
3. Write using the language of your target audience. Include

industry buzzwords and jargon when appropriate
Customers will feel an attraction to copy that reaches out

specifically to them. In a world where most advertisers are
speaking to the masses, be sure to give yours an advantage by
speaking personally to those you wish to do business with
CONCLUSION
70
CONCLUSION
Is Advertising on the Internet a viable option? I have
looked at this question in terms of effectiveness, profitability,
and marketing methods. Internet advertising offers increased
awareness of companies, an easy method to distribute
information, advanced methods of targeting consumers, an
immediate and direct line to the customers, and reduced costs
in performing these tasks. The only negative aspect is that
consumers have to conquer their fears of the Internet - the fear
that ordering through an on-line advertisement will get lost in
the void of cyberspace. Fears always come with new
technology, but it does not take long for people to adjust. As
people get more accustomed to finding their product
information on the Web, more and more readers will actively
seek out Internet advertising sites.
Finally Do not try to do "anything and everything" to get
the buyer's attention. Everyone who comes to site isn't going to
buy. The harder you try to get their attention and force them to
read your ads, the harder they will try to escape.
71

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the market environment is getting more and more competitive,

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Internet is changing the way consumers shop and buy

WHAT IS ONLINE ADVERTISING

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Generates awareness for the brand.

With the rapid expansion of the internet and the

of information delivery to a many

between the companies and consumers. This represents a new

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time and is expected to command an even larger portion of

HISTORY OF INTERNET ADVERTISING

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sophistication, and today there are Static, rotating, scrolling,

The Type of advertisement.

Where it appeared on the WebPages.

How it integrated with content.

How well it matched the advertisers target audien

ONLINE ADVERTISING HAS TO OFFER:

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6. Detailed tracking and measurement

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Creative Design of Home page is very important for the

HENCE CONTENT IS KING

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audience and also builds interactivity & direct response. No

COMPARISON BETWEEN TRADITIONAL AND

Web marketing is based on high level of

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carried out 24 hours a day, 365 days a

Traditional marketing is static

immediate action - like clicking on the

know more of company

he is on the net. Thus advertisements get

Advertisements are ubiquitous

noticed, remembered, and acted upon

software can be displayed to PC users,

STATEMENT OF THE PROBLEM:

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Internet is one of the important medium that owns all

OBJECTIVES OF THE STUDY:

SCOPE OF THE STUDY:

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advertisements. The need of study has aroused by seeing the

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going to carry out in his or her research to achieve research

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