https://www.scribd.

com/doc/47913751/EFFECTIVENESS-OF-INTERNET-ADVERTISING

Literature Review

Advertisements:
Longman (2000) says “advertising is an act of telling people publicly
about a product or service in order to persuade them to buy it. Alonge(2001) feels that advertising can be
defined as any paid form of non- personal communication which is directed to the consumers
or targetaudiences through various media in order to prevent and promote product, services and
idea.Gillian (1982) views it as
“means of drawing someone’s attention tosomething or notifying or informing somebody of something”.

Tuflinger (1996) says “advertising is the non

-personal communicationof information usually paid for and usually persuasive in nature, about product,
services or ideas by an identified sponsor through the various
media. So much for academic double talk. Let’s take this statement
apart and see what it means.Young (2005) stated that in an effort to improve managing and gainaudience
attention, advertisers create branding moment that willresonate with target markets, and motivate
audiences to purchase theadvertised product or service, advertisers copy test their advertisement before
releasing them to the public Newhagen and Rafaeli (1996) define interactivit
y as “a
communication that reflects back on itself, feeds on, and responds to
the past”. Therefore, in the authors‟ research, interactivity is defined
as the communication between consumers and advertisers, for
example, advertiser affect consumer‟s habit a
nd behaviors, while
consumer also affect advertiser‟s management.
 DECLARATION

I hereby declare that this dissertation titled a studyon

“EFFECTIVENESS OF INTERNET ADVERTISING”
is the resultof my own research work carried out under the guidance and supervision
of PROF. PRIYANKA AHUJA, of
International School Of Business & Media.
I also declare that this dissertation has not been submitted earlier toany Institute/organization for the
award of any degree or diploma.Place: NoidaDate
:
(

Prafull Kumar Sinha )

2

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EXECUTIVE SUMMARY
Internet is fast emerging as a powerful medium of advertising in the new millennium. With the number of Internet
users increasing manifold, the new medium is viewed as the advertiser's dream. The Internet is the fastest growing
medium in the 2000’s with millions of users and an average estimated growth of 124% annually. Internet advertising
is becoming a part of some companies marketing strategy- however it requires new strategies and thinking. The
benefits of Internet advertising is its ability to cover people from different geographical area with varied tastes and
preferences. This study is descriptive study and the sampling technique here used is convenience sampling.

. The sample size is 100 selected from the population of MUMBAI. The data is collected with the help of structured
questionnaire, which includes open end and close-ended questions. Here the Hypothesis Testing is done with the
help of the Chi-square test, this is to test the relationship between the two attributes. Here the attributes are Features
and Effectiveness of Online Advertisement. The next step in the research process is Analysis and
Interpretation of the Data collected from the respondents. This Analysis
and Interpretation is done with the help of Graphs and Tabulation, They are prepared with the help of MS Excel
software.

With the help of Analysis and interpretation the findings are drawn which includes whether consumers are aware of
online advertisement, do online advertisement effect their purchase behavior.

With the critical Analysis and Interpretation the Suggestion’s are drawn on how to improve Online Advertisement in
order to attract much of the viewership and to increase the purchasing efficiency and also to improve the
methods of online advertisement.

Finally a conclusion, where the briefing and the topic aspects is been given with few suggestions, finally concludes
the Project Report.
THEORETICAL BACKGROUND
Marketing is more than just distributing goods from the manufacturer to
the final customer. It comprises all the stages from creation of the product and
the after- market, which follows the eventual sales, advertising plays a veryimportant role in this process.The product
or service itself, its meaning, packaging, pricing anddistribution, are all reflected in advertising, which has been called
the lifebloodof an Organisation. Without advertising, the products or services cannot flowto the distributor or sellers
end on to the consumer of or user.The need for advertising developed with the expansion of populationand the flow
of towns with their shops and large stores, mass production infactories, infrastructure to deliver goods & services and
increasing leveleducation. Advertising grew with the development of media, such as thecoffeehouse, newspapers
and the arrival of advertising agencies.

Definition
: - The institution of practitioners in advertising defines "advertisingpresents the most persuasive possible selling
message to the right prospectsfor the product or service have the lowest possible cost".

What is Online Advertising

On line advertising is similar to other forms of communication except for onecritical difference that is Internet.
Consumer behaviour follows a modelradically different from traditional advertising media. This model can
beexplained as the progression 'Awareness - Interest - Desire - Action'. All theseactivities occur simultaneously in
Internet advertising. Online advertising

entails, placing of electronic messages on a web site or email platform whichachieves the following purpose-

1 Generates awareness for the brand.

2 Stimulates interest /preference for a product or service.
3 Provides the means to contact the advertiser for information orto make a purchase.

History of Internet Advertising

Advertising has faithfully served the print industry for 200 years, and wasapplied to the Internet with every
expectation of success. Web advertising
began with Center and Siegegl’s in famous Green Card Lottery message on
the Usenet site in April 1994 and was followed in October by advertisingplacements for AT&T, MCI, Sprint, and
Volvo on Hot-wired and finally theidea caught on. The Advertisement grew in sophistication, and today thereare
Static, rotating, scrolling, animated, flash and interstitial banner ads alwhich are designed to generate traffic, increase
brand awareness andgenerate leads and sales.Internet companies were founded on advertising revenues, and for
someyears the companies prospered.Rate depended on: -
i. The Type of advertisement.ii. Where it appeared on the WebPages.iii. How it integrated with content.iv. How well it
matched the advertiser’s target audience
Online advertising has to offer:

1
. Scalability -
Like television commercials, it doesn't cost very much to
increase the reach of an online ad campaign. There is no need to print
additional copies of a magazine, or to create and maildirect-mail pieces.

2.
Hot demographics
- The online community is more affluent, bettereducated, and younger and more willing to spend than the population
atlarge. More and more people go online and the number is ever increasing.

3.
Targeted messages -
Unlike broadcast and print media, the Internetallows advertisers to target exactly who will see their ads, and in
whatcontext. Web publications serve every conceivable audience, from the mass-market obscure niche groups.
Beyond that, the technology leads targetcustomers 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 (AmericaOnline, IBM, Prodigy).

4.
Broad and flexible reach
- While the Net cannot yet matchtelevision's market penetration, the size of the online audience is growing
veryquickly. More importantly, because you buy online ads by the impression, youcan buy as much or as little of that
audience as you desire. And that's true nomatter 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 sizeof a site's audience.

5.
Cost-effective -
Partly because you pay only for exactly whatyou're getting, online advertising can be extremely competitive with
otherforms of advertising. If you buy 1,000 ad impressions, for example, you knowthat exactly 1,000 people will see
your ad.

6.
Detailed tracking and measurement -
Compared to onlineadvertising, traditional media advertising is like shooting in the dark. The Weballows advertisers
to gather detailed information on who saw an ad,when, in what context, how many times and so on. Better still; you
get thisinformation instantly, not weeks later when it's too late to adjust yourcampaign. Of course, not every site
currently provides this level of feedback,and not every advertiser knows what to do with it. Over aperiod of time,
however, this is likely to become one of Web advertising'smost important competitive advantages.

7.
The ability to extend the transaction
- Traditionally, advertisingwas a one-way mechanism. Apart from techniques like toll-free numberspitched in
infomercials and mail-in coupons in print publications, there was noway 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 importantfor the surfer to get hooked on to the site. Within seconds the user
should getan idea about the site and where to go within it. If the opportunity is missedthe user many never return.
Hence Content is King
Content is the most important element of asite. 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 topersonalize non-static
information and choose exactly what she sees.

Unlike commercials or print ads, a Web ad banner is only thebeginning of the process. While your banner may
present only your brandingmessage, interested prospects can always click on it to go directly to yourWeb site. Once
there, they can access as much material on your companyand products as you care to present.

Graphics & the visual elements also play an important role in the usersdecision 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 advertisingmust 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 buildingtraffic to the site?

If all such parameters are considered while selecting the web sites foronline advertising, the impact of such
advertising will definitely be felt. Onlineadvertising is one medium, which helps to generate awareness about
thebrand being advertised, it can help in creating an image, it helps in educating
the audience and also builds interactivity & direct response. No other
traditional medium has the ability to give all of this.

We are still at the experimental stage but many clients have alreadystarted allocating a budget towards online
advertising & web is beingconsidered not only as an advertising medium but also as a marketing tool.Hence online
advertising, though slow to take off, will definitely be a mediumof the future.

INTERNET INDUSTRY IN INDIA – A SNAP SHOT

ISP Licenses issued 600
ISP Licenses surrendered 198
Existing ISP Licensing 450
Operational ISP’s 250
Cities covered 400 approx.
Cyber cafés/Public access kiosks 12200 approx.
Internet subscribers 4.2million
Operational international gateways 65 approx.
Estimated Employment Provided1150000
Total investment made on ISP Rs 6000 cr.
Estimated investment made onEquipments by ISP rs 2500 cr
Approval for setting up ISP 100+
ITSP licensing issued 100

Growth of Internet Subscriber Base in India

Month Year Subscriber base (in millions)

Aug-95 0.010
Mar-96 0.05
Mar-97 0.09
Mar-98 0.14
Mar-99 0.28
Mar-00 0.9
Mar-01 3
Mar-02 3.2
Mar-03 4
Mar-04 4.2
Mar-05 7.2

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Advantages of Online Advertisement

1
. Target Marketing: -
A major advantage of the web is the ability totarget 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 targetaudience. The interactive capability of the net
makes it possible to carry onone-to-one marketing with increased success in both the business and theconsumer
markets.
3
. Interactive Capabilities: -
The interactive nature of the web leadsto a degree of customer involvement. Site visitors are already
interestedenough in the company and/ or products to visit.
4
. Information access: -

Perhaps the greatest advantage of theInternet is its availability as an information source. Internet users can find
aplethora of information about almost any topic of merely by conducting searchthrough 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 moreinformation if it
is desired.
5
. Creativity: -
Creatively design sites can enhance company's imageleading to repeat visits, and positively position the company
or organisation inthe consumer's mind.

6.
Exposure: -

For many seller companies with limited budget thewww (world wide web) enables them to gain exposure to
potential customersthat heretofore would have been impossible. For a function of the investmentthat would be
required using traditional media, companies can gain nationaland even international exposure in a timely manner.
7
. Speed: -
For those requiring information on a company, itsproducts, and /or its service offerings, the Internet is the quickest
means ofacquiring this information.

Disadvantages of Internet
1.
Measurement problem: -
One the greatest disadvantage of the net isthe lack of reliability of the research numbers generate. A Quick review
offorecasts, audience profiles, and other statistics offered by research providerswill demonstrate a great deal of
variance leading to a serious lack of validityand reliability. One of the industry's largest and most sited trade
publicationhas written an expose of a heavily sited Internet research company, referringto the number it provides as
"scary" feathers have stressed concern over thefact that most sites figures or not audited, which mainly to rampant
cheating inthe respect of the number reported.2.
Audience characteristic: -
Due imparts to the accelerating growth ofthe net, audience characteristic change quickly. Numbers reported may
becompleted 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 someSites may be inaccessible due to too
many visitors. For many users who
expect speed, this is a major disadvantage.
4.
Costs: -
The cost of doing business on the MAT continues to increase.While it is possible to establish a site in expensively,
establishing a good side
and maintaining it is becoming more and more costly. As noted earlier , Levi’s
for the cost of maintaining a site is considered "world-Class " was prohibitive and one of the reason for abandoning
its E-commerceefforts.
5.
Limited production quality: -
Although it is improving, net advertisingdoes not offer the capability of many competitive media for a
productionstandpoint. While the advent of advanced technologies and rich medium isnarrowing the gap, the net still
lags behind some areas.
6.
Poor reach: -
While the Internet numbers are growing in leaps andbounds, its six is still far behind that of television. As a result,
interestcompanies have turned to traditional medium to achieve reach andawareness goals. In addition statistics
says that only a small percentage ofsites on the Internet are captured and that the top 50 sites listed account for95
percent of the site visited.
7.
Language: -
If I am selling the goods through the media the buyer
prefer to get the information of the products or services with his own languagebut the advertiser has no option than
to advertise in one single languagewhich is a major disadvantage.
Given below is the comparison between Traditional and Web Advertising thatwill signify the importance of in today's
world

Traditional Advertising

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STATEMENT OF THE PROBLEM:

Is Online advertising effective in influencing the potential Buyers?

Internet is one of the important mediums that own all kinds of features,which implies a great potential and powerful
advertising medium in the future.
In addition, Internet has a better impact than traditional media in the features
like Format Variety, Affinity, and Preservability. Furthermore, Internet is theonly medium so far which owns the
feature of interactivity. That creates lots ofnew communication opportunities and possibilities that were unable to
beachieved in the past because of the limitation of media technologies. In spiteof these whether the online
advertisement is effective in influencing thePotential Buyers in modern era.

OBJECTIVE OF THE STUDY:

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

To assess the effectiveness of online advertising on purchasingbehaviour.

To ascertain which type of online advertising is preferred byconsumers.

LIMITATIONS OF THE STUDY:

1. The sample size is limited to 100 Internet users hence the result of thestudy cannot be taken as universal.
2. Findings of the survey are based on the assumption that the respondentshave given correct information.
3. Since the respondents had to fill the questionnaire while busy with theirhectic schedule, many people were
reluctant to answer.
4. The study was conducted only in Delhi NCR and therefore, severalother potential samples outside the city were
neglected.

REVIEW OF LITRATURE
Purpose:

Review of literature refers to identifying already existing literature inthe area of consumer behavior and marketing
strategies, to find out whatcontribution has already been made so that it can serve a valuable base forfurther
expanding the literature. the researcher while choosing the relevantliterature of this study, has taken extreme care
not to omit any literaturepertaining to the effectiveness of Online advertisement The chapter revolvesaround the
various relevant literatures screened to formulate the subjectmatter of the proposed study

To broaden the perspective about the research work

To gain new and varied ideas
To acquire more knowledge along with the direct experience
To know the current issues with respect to the research area
To spot the area which have not been covered

Methodology
For the purpose of literature survey, a sample survey was adoptedthrough the Structured Questionnaire, and
information was gathered by thosewho had conducted study, The information was also searched in libraries
invarious reports, journals and internet sites were also scanned for theauthenticities of the subject matter.

METHODOLOGY
DEFINITION OF RESEARCH DESIGN:
“It is a basic plan, which guides the data collection and analysisphases of the project. It is a frame work, which
specifies the type ofinformation to be collected, the resources of data collection procedure.”-
-Thomas Kinnear

A research design is a market plan or model for conduction a formalinvestigation. It is a specification of methods and
procedures for acquiring theinformation needed for solving of any problem.

Research design is the strategy for a study and the plan by which thestrategy is to be carried out. It specifies the
methods and procedures for thecollection, measurement and analysis of data. Unfortunately, there is nosimple
classification of research designs that covers the variation found inpractice.

Sampling Method
The sampling procedure used was
convenience and judgment sampling, as in questionnaire were administered at places like the residents,cyber
center, Office and colleges in Delhi NCR.
Tools for data collection
Interaction with Respondents was in the form of face-to-face interviews
and with the help of questionnaire. The questionnaire consisted of a set ofquestions, asked to the respondent for
his/her response, the questionnairewas structured and non-disguised. It was done in a prearranged order and
theobject of the research was revealed to the respondent. The questionnaire
consisted of combination of open ended and close-ended question.
Primary Data
The primary data was generated through extensive use of a structuredquestionnaire, which had both the open end
and close-ended questions. Theywere conducted in Delhi NCR and the data collected was used for the
purpose of analysis and interpretation.
Secondary Data
The second data was collected from the following sources:

Books
Magazines
Website
Journals(Details are given in the Literature Review at the Report)
Sample Size
A total of hundred respondents were interviewed during the survey,The input from these respondents which was
collected in Delhi NCRformed the primary data for the study.

DATA PROCESSING
Collected data was Analyzed and tabulated with the help of MS Exceland then they have been presented in the
tables and Graphs in this report.These are the basis for drawing the appropriate conclusion for this project.
Areas Covered

BTM Layout

Jayanagar 4thBlock

Koramangala

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 stillholds 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, thenew medium is viewed as the
advertiser's dream. The Internet is the fastestgrowing medium in the 2000’s with millions of users and an
averageestimated growth of 124% annually.

It has great potential as an advertising medium. Online advertisingoffers the advantage of reaching and interacting
with the target audience,irrespective of geographical barriers, in real time. Internet offers the flexibilityof two-way
communication, through feedback and interaction in real time.Online advertising presents the flexibility of moulding
the campaign inresponse to the effectiveness in real time.

Internet advertising is becoming a part of some companiesmarketing strategy- however it requires new strategies
and thinking. Thebenefits of Internet advertising are its ability to cover all

Promotional objectives from awareness to action by leveraging allFive Elements in the promotion mix. The Internet
is also a highly selective, cost effective media with greater measurability than any othermedia.

Despite higher global reach Internet is not yet a local mainstreammedia. The Internet offer companies targeting well-
educated, innovative,affluent males or students great potential for success as their segmentsare highly represented.
Products with high information intensity and highbuyer involvement are also appropriate for Internet promotion due
to itslarge information capacity at low costs. Its distribution opportunity isespecially suitable for the increasing channel
of mail order products

Low product fit or low audience fit companies can benefit bybuilding a brand image to establish a user link or simply
to learn aboutinteractive media. Traditional advertising is consumed passively, yet onthe Internet, users have to
actively select an advert. This changes theway advertisers generate and retain customers. To persuade visitors
torevisit and spend time on the website, advertisers must fulfill realcustomer needs on a continuous basis. This
requires clear objectivesand targeting. Informative quality content, advertisement with interestingentertainment or
direct sales possibilities can add value to the customer.

The commercial industry is going through a rapid and radicaldevelopment from the 2000's. Growth in disposable
income, increasedpurchase information and alternative service and product offerings haveexpanded the customer’s
bargaining power. Today’s advertiser mustindividualize, differentiate and customize to achieve
advertisingeffectiveness. Targeting and building a relationship with customers on anindividual 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 lowcosts’, while mass communication often forces the advertiser to accepthigh reach with a low
selectively and no feedback opportunities in orderto achieve a reasonable cost-effectiveness. The following
criteriaevaluate the effectiveness of the different media.

They may be new concepts right now but will be most essential partof business world in near future. In fact, the
future we are talking about isalready here! And to survive in this cutthroat competition, sooner yourorganization
enters cyber world, better - because in cyber world, it's always aone-way traffic, no looking back but just zooming
ahead - at lightning speed!

PRODUCT PROFILE
Some of the important products offered by Web Advertising are listedbelow:
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 siteslike Yahoo, AOL etc so as to get an opportunity To See (OTS). They can
beplaced at the top or bottom of a page. Or anywhere you like them to be.

Interstitial
Another model of Web advertising - A short-lived, usually animated ad thatpops up in the browser window for about
5-10 seconds while a page isdownloading and then disappears.

Inline Advertisements
Inline ads provide a way for sponsors to generate leads or deliver rich brandbuilding messages. Similar to print
adversarial, inline ads integrate within sitecontent, ensuring that a site visitor will see them for sure. Example: When
yousearch using Metacrawler and get results, you will see such inline ad in-between search results.

Pop-Up Windows
A pop-up window delivers the advertisement in a new window on top of thesite content. When you visit
Homepages on Tripod.com or Geocities.com(Advertisement supported free homepage sites), a secondary
windowautomatically pops up continuously rotating advertisement of sponsors.

Website sponsorships
Here, the entire Website is sponsored by an advertiser. These sites areusually content or service based and has a
very high traffic because of theirutility value.
Classifieds
Similar to classifieds in the real world, advertisers in Cyberspace can pay fortheir advertisements to be listed in online
classifieds. From products andservices to headhunting and matrimonial, any subject is covered.

Mailing list ads

Mailing lists are e-mails sent to group of subscribers at regular intervalsfocusing on a particular topic. These e-mails
can contains tips, hints or even jokes for free and are sustained by advertisements that are interspersedthroughout
the body of the e-mail. Ads are usually in 6-8 line of text instead ofgraphics and animations like banner ads.

Ads on Chat

Chat is a service available on the net for two or more people to converse withone another through their keyboards.
Companies that offer these chatservices for free, earn their revenue from advertisements that are displayed
toeveryone using these chat services.So, Web marketing and e-Business, both are new concept of doing
thebusiness and are inter-combined and are irreplaceable part of the cyberworld.

The Government initiatives

The Government has taken key initiatives over the past few years to create
an environment that is conducive to E-commerce activity. These include the
following

Announcement of the Information Technology Act 2002, which

put in place a cyber, law regime in the Country.

Announcement of the ISP policy for the entry of private Internet

service providers in November 1998

Permission to private ISP’s to set up international gateways.

Permission of Internet accesses through cable TV infrastructure.

Initiation of the setting up of the National Internet Backbone.

Announcement of the national long distance services beyond

the service area to the private area.

Complete non-monopolization of undersea fiber connectivity for

ISP on August 2000.
Free Right of way facility with no charge in cash or kind, to
access providers to lay optical fiber networks along National
Highways, State Highways and other roads.

Permission of Interconnectivity of Government and closed user

group (CUG) networks.

The establishment of Public Teleinfo Centers (PTIC) havingmultimedia capabilities has been permitted.

100% FDI allowed in B2B e-commerce.

Measuring the Efficiency and Effectiveness of their Site.

What metrics should be consider when calculating the value of theWeb site, or the return on investment? Let’s start
with performance andavailability. To say that slow pages are the kiss of death doesn’t take all thepossibilities into
account. When National Semiconductor asked its designengineer customers about the need for speed, site visitors
said that anythingmore than eight seconds for a navigation page and 30 seconds for a datasheet was intolerable.

The Advertiser should also consider the type and number of pages oftheir site that visitors look at during a single visit.
Are more pages better?When visitors first arrive and are investigating the depth and breadth of theofferings, more
pages is good. But if they are trying to solve a problem byslogging through the quagmire of your section of
"frequently asked questions"pages that are intertwined like the roots of swamp trees, more is definitely notmerrier.

Looking for patterns

If the Advertiser make use of cookies to analyze the path of each
visitor, then they can start to make assumptions about what people are
looking for and if they had trouble finding it. The trick is to look for patterns.

The researcher, the comparison shopper and the buyer all have theirown traffic patterns, and it’s up to you to serve
them according to their needs.If people are always clicking from the product page to the warranty page andback, it’s
good stewardship to put the pertinent information on the productpage and save them a click. Watch where they go
and then do what you can
to make their way easier next time.

The final consideration is how often people visit your site a

combination of recency and frequency. It’s great that somebody came to yoursite 10 times in one day, but if that day
was six months ago, it won’t do youany good. The most desirable recency-frequency tally is different for
differenttypes of sites. If your name is Yahoo! or AOL, then you want all the people, allthe time. If your Web site is
located at http://www.urnsandcaskets.com, youmay feel a little people who come back day after day and stay a
while.

Identifying prospects
Identifying what pattern is the best indication of imminent procurementwhich depends upon the Review of the site
path taken by those whocompleted the purchase and watch for it again. Your site can make specialoffer when a
potential customer visits a certain number of times or looks atparticular pages. And then you can go one step further,
called Geniality’s a clever software that will determine the fewest attributes common to those who
performed the desired act (purchase, register, subscribe, etc.). It shifts
through mountains of data about your customers so you can more quicklyrecognize the ones who are statistically
most likely to buy, and it can tell youwhich offer is the one most likely to make that sale.Taking all this into the
consideration one can manage their sitemeasurement of effectiveness.

Online Advertising Operational Definition

Advertising Network - A group of websites, which share a commonbanner server Typically, a sales organization,
which manages the commerceand reporting. An ad network has the ability to deliver unique combinations of
targeted audiences because they serve your banner or ad across multiple
sites.

Ad view
- An ad view, synonymous with ad impression, is a single adthat appears (usually in full view without scrolling) on a
Web page when thepage arrives at the viewer’s display. Ad views are what most Web sites sell orprefer to sell. A
Web page may offer space for a number of ad views. Ingeneral, the term impression is more commonly used.

Affiliate marketing
- Affiliate marketing is the use by a Web site thatsells products of other Web sites, called affiliates, to help market
theproducts. Amazon.com, the bookseller, created the first large-scale affiliateprogram and hundreds of other
companies have followed since.

Bandwidth
- The amount of information that can be transmitted overcommunications lines at one time. The higher the
bandwidth, the faster theWeb page loads. Limited bandwidth is the main reason for keeping picturessmall. Just as it
seems we will never have fast enough computers, it feels likewe will never have enough bandwidth. The amount of
research anddevelopment money being thrown at this problem should yield surprisingresults before long.

Click
- According to ad industry recommended guidelines from FAST,a click is 'when a visitor interacts with an
advertisement.' This does notapparently mean simple interacting with a rich media ad, but actually clickingon it so
that the visitor is headed toward the advertiser’s destination. (It alsodoes not mean that the visitor actually waits to
fully arrive at the destination,but just that the visitor started going there).

Click streams
- The electronic path a user takes while navigating fromsite to site, and within site, from page to page.

Click Through
- The act of clicking on a banner or other ad, whichtakes the use through to the advertiser's Web site. Used as a
counter point toimpressions to judge the response-inducing power of the banner.Click Through Rate (CTR) - The
response rate of an online advertisement,typically expressed as a percentage and calculated by taking the number
ofclick through the ad received, dividing that number by the number ofimpressions and multiplying by 100 to obtain a
percentage - Example - 20clicks / 1,000 impressions = .02 x 100 = 2% CTR
CPA
- Cost Per Action. The price paid by an advertiser for each'action' that a content site delivers. 'Action' may be a sale, a
lead, asuccessful form fill-out, a download of a software program or an e-commercesale of a product. Both the
action, price and terms of a CPA purchase aremutually agreed upon by the advertiser and content site and such a
purchasetypically involves a back end tracking system provided by the advertiser thatallows the content site to view
clicks and actions every 24 hours if theychoose to do so.

CPC
- Cost Per Click. The price paid by an advertiser to a content site.When buying on a Cost Per Click model, the
advertiser and content site havemutually agreed that the content site will continue to display the advertiser’sad
creative until X number of clicks have been delivered - the amountpurchased. As with other forms of online
advertising, s dependent on content,

audience reached and targeted delivery - Untargeted being owner priced,targeted to an affluent audience being at
the high end of the rate scale.

CPM
- Cost Per Thousand (Roman Numeral) impressions. The price
paid by an advertiser for a content site displaying their banner 1,000 times.

CPS
- Cost Per Sale. The price paid by an advertiser to a content sitefor each sale that results from a visitor who is
referred from the content site tothe advertiser’s site. This type of buying model is typically tracked
withcookies, where the cookie is offered on the content site and read on theadvertiser’s site at the success page
after successful completion of onetransaction/sale. Typical rates/bounties range between 5% and 25% of the
retail price of the product or service being sold. See also CPA above.

Cookies
- Client-side text file that is used by Web servers to storeinformation about the site visitor and visitor behavior.
Information pertaining toa site can only be ready the side that wrote the information. Used to identify
repeat visitors and track visitor behavior.

Effective Frequency
- The number of times an ad should be shown toone person to realize the highest impact of the ad without
wastingimpressions on that individual.

Frequency
- The number of times a given person will see an ad in agiven time period. Gross Exposures/Gross Impressions -
The total number oftimes an ad is shown, including duplicate showings to the same person.

Hits
- Every time a file is sent by a server, be it text, graphic, video,and so on, it is recorded as a hit. Not a reliable gauge to
compare differentsites, as one page with five graphic elements will register six hits whenviewed, while a page with
no graphics will only register one hit.

Impression
- The Opportunity To See (OTS) a banner or other ad bya surfer. When a page that includes a banner is viewed, it is
considered animpression. Inventory - The amount of available space for banners on a Website that can be
delivered in a given time period. Also known as the amount of

gross impressions per month (or clicks if the publishers is selling on a CostPer Click rate model) available for sale to
advertisers by a Web publisher.

Link
- A hypertext connection between two documents, image maps,
graphics, and the like.

Page view
- When a Web page is requested by somebody through abrowser. Pageviews are often used to track the number
of impressions a
banner gets.

Run-of-network
- A run-of-network ad is one that is placed to run onall sites within a given network of sites. Ad sales firms such as
Latitude90handle run-of-network insertion orders in such a way as to optimize results for
the buyer consistent with higher priority ad commitments.

Run-of-site
- A run-of-site ad is one that is placed to rotate on all
non-featured ad spaces on a site. CPM rates for run-of-site ads are usuallyless than for rates for specially-placed
ads or sponsorships.

Spam
- Originally posting an ad to multiple newsgroups, now usedto describe unsolicited email advertising. Named after a
skit by Monty Python,spam is one marketing and advertising technique to avoid at all costs

Unique visitor
- A unique visitor is someone with a unique addresswho is entering a Web site for the first time that day (or some
other specifiedperiod). Thus, a visitor that returns within the same day is not counted twice.A unique visitors count
tells you how many different people there are in youraudience during the time period, but not how much they used
the site duringthe period.

View
- A view is, depending on what’s meant, either an ad view or apage view. Usually an ad view is what’s meant. There
can be multiple adviews per page views. View counting should consider that a small percentageof users choose to
turn the graphics off (not display the images) in theirbrowser.

Visit
- A visit is a Web user with a unique address entering a Web site atsome page for the first time that day (or for the
first time in a lesser timeperiod). The number of visits is roughly equivalent to the number of differentpeople that visit a
site. This term is ambiguous unless the user defines it,since it could mean a user session or it could mean a unique
visitor that day.
HYPOTHESIS
It is usually considered as the principal instrument in the research, itmay be defined as a proposition or a set of
propositions set forth as anexplanation for the occurrence of some specified group of phenomenon eitherasserted
merely as a provisional conjecture to guide some investigation oraccepted as highly probable in the light of
established facts.

Testing of hypothesis
Techniques of hypothesis testing are used if we have an idea aboutthe value of the parameter in question. The
modern theory of probability playsa vital role in decision making and the branch of statistics with helps inarriving at
the criteria for such decision is known as testing of hypothesis.

Chi-square Test
Chi-square test statistically determines significance in the analysis offrequency distribution. The logic involved in the
chi-square test is that ofcomparing the observed frequencies and the expected frequencies. It iscalled a non-
parametric test because it is based wholly on sampleobservations and does not require any value corresponding to
a populationparameter it is defined as Chi-square test

Null Hypothesis: H0

It asserts that there is a significant influence of features of OnlineAdvertisement on the effectiveness of online
Advertisement.

Alternative Hypothesis: H1

There is no significant influence of features of online Advertisement onthe Effectiveness of online Advertisement.
Significance Level:

The critical probability in choosing between the null and alternative

hypothesis. The exact level of significance is largely determined by how muchrisk one variable is willing to take and
its effect on the other variable.
Degree of Freedom:

It refers to the number of observations that can be varied withoutchanging the constraints or assumptions
associated with a numerical system.

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From the above calculated table it is clear that the Calculated value is 7.17 and the table value at 5% significant level
is 16.92 so this states thataccept the Null Hypothesis

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Analysis and Interpretation

As observed from the given table and Graph the sample constitutes of67% male respondents and 33% female
respondents. There is a quite a lot ofdifference between the number of males and females in the sample.
In near future the percentage will definitely increase with the increasein the Female E-awareness.

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Analysis and interpretation

As it can be observed from the given table, the major portion of sample
(35 %) is constituted of people in the age group between 20-25 years, andalso a portion of sample i.e. (35 %) of
respondent are in the age groupbetween 25-30 years, (20%) of the respondent are in the age group below 20years,
and the rest (10%) of the respondent are in the age group of above 30
years.

This states that the advertisement should target more of the Youngnetizens to increase the awareness of their
products or services which in turn
increases their sales revenue.

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Analysis and interpretation

As seen from the above table and chart, majority of the respondent (40
percent) are college students, (25 percent) are engaged in business. (25percent) are employees of various
sectors like IT Professionals ChartedAccountants, Lawyers, College Professor. (10 percent) are others
constituting
housewives & children.
This shows that mainly college students are interested in browsing. Soit is preferable for the Advertiser to
concentrate mainly on the College
Students to promote their Ads and influence them in increasing their salesActivities.

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Analysis and interpretation

From the above table and graph it is clear that 47 respondents browse
weekly twice, 42 percent spent less than one hour. 29 percent of therespondent spend one hour to two hour. 18
percent of the respondent spenttwo hour to three hour and 11 percent of the respondent spent more than
three hours in browsing.

30 respondents who browse weekly once 27 percent spent less thanone hour 40 percent of the respondents spend
one hour to two hour, 23percent of the respondents spent Two hour to three hour and 10 percent. the
respondent spent more than three hour in Browsing.

18 respondents who browse fortnightly, 80 percent has spent less thanone hour 39 percent of the respondent
spend one hour to two hour, 27

FINDINGS OF THE STUDY

This study was conducted with a view to know that whether OnlineAdvertising is effective. It has been observed that
there are many factors,which effect this statement of Problem like Occupation, Age, life style socialfactor, For this
purpose a structured questionnaire had been designed andanalysed. After analyzing the data the following factors
have been found outas major causes for the Online Ads Effectiveness

The percentage of Male browsing the net are more than that of Female

Most of the internet users are in the age group of 20-30years with 35%which indicates that youngsters are using
more net than that of theother community.
Most of the student community use internet more than that of the otheroccupation as it is a means of entertainment
so the advertiser shouldtarget the student community to influence their effectiveness

Compared to that of the students self-employed business peoplebrowse more for purchasing products and
students browse more forinformation and entertainment.

Almost 60% of the people who browse the Net check t online Ads whilebrowsing only if they are interesting
and informative

The study clearly stated that most of the internet users surf forentertainment and information rather than for
purchasing on the Net

Internet with such high penetration still 53% of the respondents havenot purchased any products or services online

Most of the respondents who have purchased online have not involvedthemselves in purchasing frequently and
even the cost of the purchase is also too low where it do not involve much risk..

Recommendations

Go International with multiple language:

Offer your web site in multiple languages. Like many sites come in
Dutch, Spanish, Slovene, French, Czech, German, Russian, and Italian.
Translation service on websites is also good which will help retain customers.

Use of multi-media
As we have seen the potential for banner and Internet ads, informative
and creative ads are also preferred therefore hot new designs and innovativesales concepts should be developed.
Obviously, the biggest bridge to cross isdownload time. If a little radio-like audio message that plays from your
siteupon a click of mouse or a T.V-mini commercial that plays at your banner onclick 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 securedorder form on the banner itself, click which button he prefer and be directed toa
specialized product marketing page.

Free offers
The word free is just as effective in advertising online as it is offline. By sponsoring a freebie, a simple name
submission drawing can also get viewers to go through ads in the process they become aware of the
advertisement.
Sponsor a contest
People love to win ANYTHING! Offer your product or service as a
prize. When a winner is selected, their name web address and a link to the
site can be published. Adding a reciprocal link is a professional way to saythank you and is of no cost to the
advertiser.

Web site testimonials

Build trust or confidence in your online business by using testimonials.
A direct quote with the permission of the customer is a nice touch. Listing a
name and e-mail address it acts as a reference that is easy and quick. Keepthe testimonials to one or two
sentences and keep it simple.

Target Audience
Keep your target audience in mind. Business people aren't going tohave the time or inclination to participate in
game-type ads. On the otherhand, teenagers love them. If your target group is younger people, gamesmight be the
thing for you. Design your ad to meet the preferences of yourtarget customer.

Include statistics
When you make a sales claim, back it up with information, includingstatistics. You might say, "Our saucepans have
a non-stick coating that'sguaranteed for life. In actual, in-home testing, food did not stick to oursaucepans 98.3% of
the time."

Provide content on your site

As you surf the Web take note of information that supports youradvertising claims. Surveys, research, reports,
testimonials, etc. can allprovide valuable information that could move a customer from the point-of-decision to the
point- of-purchase.

Offer a free report

Give away information free with a purchase or subscription to your
newsletter. Since information is what surfers are looking to receive, it will work
as a big incentive.

Few tips that will help in making a connection with the clients:
1. Use “you or your” instead of “we or us.”
2. Include personal examples rather than general examples. If writing to
hair stylists, include examples specific to them.
3. Know your target audience very well. This is the only way you will be
able to communicate with them on a personal level.
4. Write using the language of your target audience. Include industry
buzzwords and jargon when appropriate.

Customers will feel an attraction to copy that reaches out specifically to them.In a world where most advertisers are
speaking to the masses, be sure togive yours an advantage by speaking personally to those you wish to do
business with.
CONCLUSION

Is Advertising on the Internet a viable option? I have looked at thisquestion 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 inperforming these tasks. The only negative aspect is that consumers have
toconquer their fears of the Internet - the fear that ordering through an on-lineadvertisement will get lost in the void of
cyberspace. Fears always come withnew technology, but it does not take long for people to adjust. As people
getmore accustomed to finding their product information on the Web, more andmore readers will actively seek out
Internet advertising sites.
Final y Donot try to do "anything and everything" to get the buyer'sattention. Everyone who comes to site isn't going
to buy. The harder you try toget their attention and force them to read your ads, the harder they wil try toescape.

Questionnaire
Effectiveness of Online Advertisement

NAME

Gender
:
Male Female

1. AGE GROUP
Below 20
20-25
25-30
above 30

2. Occupation
Student
Employee
Self Employed
Others

3. Do you Own a computer

Yes
No

4. Do you Surf the net

Yes
No

5. How many hours do you Spend on Browsing

< 1hr
1hr6
>1hr.

6. Are you aware of Online Advertisement

Yes
No

7. Do you check the online Ads while browsing

Yes
No

8. Ads relating to which product are you interested in

Purchasing

Entertainment

Financial loans

Jobs

Academic

Others

9. Which Sites consist of more ads

Yahoo

Indiatimes

msn

rediff

Sify

Others

10. Have you purchased Online

Yes

No
11. If yes, what have you purchased (go to Q 14)

12. If no, would you prefer to purchase Online

Yes

No

13. If no, why don’t you prefer to purchase online

14. How often do you purchase online.

15. What kind of Ads do you like to see

One that pop ups

One which has a questionnaire
One that flashes
One that runs on the top/bottom

16. Have you responded/participated in any Ads

Yes
No

17. Does the Online Ads interfere in your work while browsing
Yes
No

18. Have you made any purchases after seeing these Ads
Yes
No

19. How you think the online Ads can be improved