e Advertising

8/20/2019 e Advertising

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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 isdescriptive study and the sampling technique here

used isconvenience sampling. The sample size is 100 selected from the

population of Delhi NCR. The data is collected with the help of

structured questionnaire, which includes open end and close-ended

questions. Here the Hypothesis Testing is done with the help of the Chisquare

test, this is to test the relation ship 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


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With the help of Analysis and interpretation the findings are drawn

which includes whether consumers are aware of online advertisement, do

online advertisement effect their purchase behaviour.

With the critical Analysis and Interpretation the Suggestion’s are drawnon 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.


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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 very

important role in this process.

The product or service itself, its meaning, packaging, pricing and

distribution, are all reflected in advertising, which has been called the lifeblood

of an Organisation. Without advertising, the products or services cannot flow

to the distributor or sellers end on to the consumer of or userThe need for

advertising developed with the expansion of population

and the flow of towns with their shops and large stores, mass production in

factories, infrastructure to deliver goods & services and increasing level

education. Advertising grew with the development of media, such as the

coffeehouse, newspapers and the arrival of advertising agencies.

Defnition: - The institution of practitioners in advertising defines "advertising


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presents the most persuasive possible selling message to the right prospects

for the product or service have the lowest possible cost".

What is Online Advertising

On line advertising is similar to other forms of communication except for one

critical difference that is Internet. Consumer behaviour follows a model

radically different from traditional advertising media. This model can be

explained as the progression 'Awareness - Interest - Desire - Action'. All these

activities occur simultaneously in Internet advertising. Online advertising

entails, placing of electronic messages on a web site or email platform which

achieves the following purposeı

Generates awareness for the brand.

ı Stimulates interest /preference for a product or service.

ı Provides the means to contact the advertiser for information or

to make a purchase

History o Internet Advertising

Advertising has faithfully served the print industry for 200 years, and was

applied to the Internet with every expectation of success. Web advertising

began with Center and Siegegl’s in famous Green Card Lottery message on


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the Usenet site in April 1994 and was followed in October by advertising

placements for AT&T, MCI, Sprint, and Volvo on Hot-wired and finally the

idea caught on. The Advertisement grew in sophistication, and today there

are Static, rotating, scrolling, animated, flash and interstitial banner ads al

which are designed to generate traffic, increase brand awareness and

generate leads and sales.

Internet companies were founded on advertising revenues, and for some

years the companies prospered.

Rate depended on: -

i. The Type of advertisement.

ii. Where it appeared on the WebPages.

iii. How it integrated with content.

iv. How well it matched the advertiser’s target audience

Online advertising has to oer:

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 demograhics - 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.!argeted messages - Unlike broadcast and print media, the Internet

allows advertisers to target exactly who will see their ads, and in what


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context. Web publications serve every conceivable audience, from the massmarket

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."road and #e$ible reach - While the Net

"road and #e$ible 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.%ost-eective - 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 trac&ing and meas'rement - 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,


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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.!he ability to e$tend the transaction- Traditionally, advertising

was a one-way mechanism. Apart from techniques like toll-free numberspitched 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.(ood %reativity - 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 man.

Hence %ontent is )ing 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.y never

return

Unlike commercials or print ads, a Web ad banner is only the

beginning of the process. While your banner may present only your branding

message, interested prospects can always click on it to go directly to your


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Web site. Once there, they can access as much material on your company

and products aUnlike commercials or print ads, a Web ad banner is only the

beginning of the process. While your banner may present only your branding

message, interested prospects can always click on it to go directly to your

Web site. Once there, they can access as much material on your company

and products as you care to present.

Graphics & the visual elements also play an important role in the users

decision to stay or leave. Use of creative concepts, colors, movement &

sound enhance the chances of the user staying longer on the site.

In addition to all this the creators of web sites & on line advertising

must take into consideration the factors like

a) How fast does the site download,

b) How easily navigable the site is,

c) What is the domain name,

d) What are the other publicity & advertising activities which building

traffic to the site?

If all such parameters are considered while selecting the web sites for

online advertising, the impact of such advertising will definitely be felt. Online

advertising is one medium, which helps to generate awareness about the

brand being advertised, it can help in creating an image, it helps in educating

the audience and also builds interactivity & direct response. No other

traditionaWe 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.


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Hence online advertising, though slow to take off, will definitely be a medium

of the future.

14l mediumWe 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.

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.


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Cyber cafés/Public access kiosks 12200 approx.

Internet subscribers 4.2 million

Operational international gateways 65 approx.

Estimated Employment Provided 1,150,000

Total investment made on ISP Rs.6000 crore

Estimated investment made on

Equipments by ISP

Rs.2500 crore

Approval for setting up ISP 100+

ITSP licensing issued 100

(ro*th o Internet S'bscriber "ase in India

+onth ,ear S'bscriber base in

millions

Aug-95 0.01

Mar-96 0.05

Mar-97 0.09

Mar-98 0.14

Mar-99 0.28

Mar-00 0.9

Mar-01 3

Mar-02 3.2

Mar-03 4


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Mar-04 4.2

Mar-05 7.2

Advantages o Online Advertisement1. !arget +ar&eting: - 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.


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2. +essage !ailoring: - 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 consume markets.

3. Interactive %aabilities: - 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. Inormation access: - Perhaps the greatest advantage of the

Internet is its availability as an information source. Internet users can

find a plethora of information about almost any topic of merely by

conducting search through one of the search engines. Once they have

visited a particular site, uses can garner a wealth of information

regarding product specification, costs, purchase information, and so

on. Links will direct them to even more information if it is desired.


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5. %reativity: - Creatively design sites can enhance company's

image

leading to repeat visits, and positively position the company or

organisation in the consumer's mind.

6./$os're: - For many seller companies with limited budget the

www (world wide web) enables them to gain exposure to potentialcustomers 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. Seed: - For those requiring information on a company, its

products, and /or its service offerings, the Internet is the quickest

means of

acquiring this information.


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Disadvantages o Internet

1.+eas'rement roblem: - 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.A'dience 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


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long time. When there are a number of users, the time increasing and

some Sites may be inaccessible due to too many visitors. For many

users who expect speed, this is a major disadvantage.

4.%osts: - The cost of doing business on the MAT continues to

increase. While it is possible to establish a site in expensively,

establishing a good side and maintaining it is becoming more and

more costly. As noted earlier , Levi’s for the cost of maintaining a site is

considered "world- Class " was prohibitive and one of the reason for

abandoning its E-commerce efforts.

5.0imited rod'ction 1'ality: - 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.

6.2oor 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 andawareness goals. In addition statistics says that only a small

percentage of sites on the Internet are captured and that the top 50

sites listed account for 95 percent of the site visited.


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7.0ang'age: - If I am selling the goods through the media the

buyer

prefer to get the information of the products or services with his ownlanguage but the advertiser has no option than to advertise in one

single language which is a major disadvantage.

Given below is the comparison between Traditional and Web

Advertising that will signify the importance of in today's world.

!raditional advertising *eb

advertising


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Bound by geography and location The Web market is borderless

Advertisement costs are relatively Web Advertisement rates are

High relatively low

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

Substantial

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

level

of interactivity

Getting customer feedback is a Customer feedback is immediate

painstakingly slow process

Tracking the effectiveness of the Effectiveness can be easily

monitored

Advertisement efforts is relatively

Difficult

Marketing efforts are restricted by On the internet, Advertisement can

be

time and space carried out 24 hours a day, 365 days

a year

Traditional marketing is static Web advertising is dynamic and

multimedia supported


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Traditional advertising does not Web advertising requires the user to

invoke immediate action take immediate action - like clicking

on the banner ad and thus going to

your site to know more of company

Advertisements are passively The user has a high attention level

Received while he is on the net. Thus

advertisements get noticed,

remembered, and acted upon

Advertisements are ubiquitous Here, while searching for travel

sites,

ads related to travel agencies are

displayed

Advertising does not target a focused Advertisements are very focused.

PC

Audience software can be displayed to PC

users, while MAC users are not

shown those ads


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S!A!/+/3! O4 !H/ 25O"0/+:

Is Online advertising eective in in#'encing the

otential "'yers6 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 featureslike 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 be

achieved 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.

O"7/%!I8/ O4 !H/ S!9D,:

To ascertain the importance of online advertising as a

promotional tool.


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To assess the effectiveness of online advertising on purchasing

behaviour.

To ascertain which type of online advertising is preferred by

consumers.

0I+I!A!IO3S O4 !H/ S!9D,:

1.The sample size is limited to 100 Internet users hence the result

of the study cannot be taken as universal.

2.Findings of the survey are based on the assumption that the

respondents have given correct information.

3.Since the respondents had to fill the questionnaire while busy

with their hectic schedule, many people were reluctant to answer.

4.The study was conducted only in Delhi NCR and therefore,

several other potential samples outside the city were neglected


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5/8I/W O4 0I!5A!95/

2'rose:

Review of literature refers to identifying already existingliterature in the area of consumer behavior and marketing strategies, to

find out what contribution has already been made so that it can serve a

valuable base for further expanding the literature. the researcher while

choosing the relevant literature of this study, has taken extreme care

not to omit any literature pertaining to the effectiveness of Online

advertisement The chapter revolves

around the various relevant literatures screened to formulate the

subject matter of the proposed study


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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

+ethodology

For the purpose of literature survey, a sample survey was adopted

through the Structured Questionnaire, and information was gathered

by those who had conducted study, The information was also searched

in libraries in various reports, journals and internet sites were also

scanned for the authenticities of the subject matter.

+/!HODO0O(,

D/4I3I!IO3 O4 5/S/A5%H D/SI(3:

“It is a basic plan, which guides the data collection and analysis

phases of the project. It is a frame work, which specifies the type of

information to be collected, the resources of data collection procedure.”

-!homas )innear


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A research design is a market plan or model for conduction a formal

investigation. It is a specification of methods and procedures for acquiring the

information needed for solving of any problem.

Research design is the strategy for a study and the plan by which the

strategy is to be carried out. It specifies the methods and procedures for the

collection, measurement and analysis of data. Unfortunately, there is no

simple classification of research designs that covers the variation found in

practice.

Samling +ethod

The sampling procedure used wasconvenience and judgment

sampling, as in questionnaire were administered at places like the residents,

cyber center, Office and colleges in Delhi NCR.

!ools or data collection

Interaction with Respondents was in the form of face-to-face interviews

and with the help of questionnaire. The questionnaire consisted of a set of

questions, asked to the respondent for his/her response, the questionnaire


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was structured and non-disguised. It was done in a prearranged order and the

object of the research was revealed to the respondent. The questionnaire

consisted of combination of open ended and close-ended question.

2rimary Data

The primary data was generated through extensive use of a structured

questionnaire, which had both the open end and close-ended questions. They

were conducted in Delhi NCR and the data collected was used for thepurpose 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)

Samle Sie

A total of hundred respondents were interviewed during the survey,

The input from these respondents which was collected in Delhi NCR

formed the primary data for the study.


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DA!A 25O%/SSI3(

Collected data was Analyzed and tabulated with the help of MS Excel

and then they have been presented in the tables and Graphs in this report.

These are the basis for drawing the appropriate conclusion for this project.

Areas %overed

BTM Layout

Jayanagar 4th Block

Koramangala


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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 2000’s with millions of users and an average

estimated growth of 124% annually.

It has great potential as an advertising medium. Online advertising

offers the advantage of reaching and interacting with the target audience,

irrespective of geographical barriers, in real time. Internet offers the flexibility

of two-way communication, through feedback and interaction in real time.


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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 well-educated, innovative,

affluent males or students great potential for success as their segments

are highly represented. Products with high information intensity and high

buyer involvement are also appropriate for Internet promotion due to its

large information capacity at low costs. Its distribution opportunity is

especially suitable for the increasing channel of mail order products

Low product fit or low audience fit companies can benefit by

building a brand image to establish a user link or simply to learn about

interactive media. Traditional advertising is consumed passively, yet on

the Internet, users have to actively select an advert. This changes the

way advertisers generate and retain customers. To persuade visitors to


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revisit and spend time on the website, advertisers must fulfill real

customer needs on a continuous basis. This requires clear objectives

and targeting. Informative quality content, advertisement with interesting

entertainment or direct sales possibilities can add value to the customer.

The commercial industry is going through a rapid and radical

development from the 2000's. Growth in disposable income, increased

purchase information and alternative service and product offerings have

expanded the customer’s bargaining power. Today’s advertiser must

individualize, differentiate and customize to achieve advertising

effectiveness. Targeting and building a relationship with customers on an

individual basis is essential to be a successful advertiser in the 2000's.

The advertisers ideal is the ‘best possible reach within a welldefined

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


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one-way traffic, no looking back but just zooming ahead - at lightning speed!

PRODUCT PROFILE

Some of the important products offered by Web Advertising are listed

below:

Web banner and anel 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


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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.

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.

Inline Advertisements

Inline ads provide a way for sponsors to generate leads or deliver rich brand

building messages. Similar to print adversarial, inline ads integrate within site

content, ensuring that a site visitor will see them for sure. Example: When you

search using Metacrawler and get results, you will see such inline ad inbetween

search results.

2o-9 Windo*s

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


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automatically pops up continuously rotating advertisement of sponsors.

Website sonsorshis

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.

%lassifeds

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.

+ailing list ads

Mailing lists are e-mails sent to group of subscribers at regular intervals

focusing on a particular topic. These e-mails can contains tips, hints or even

jokes for free and are sustained by advertisements that are interspersed

throughout the body of the e-mail. Ads are usually in 6-8 line of text instead of

graphics and animations like banner ads.

Ads on %hat


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Chat is a service available on the net for two or more people to converse with

one another through their keyboards. Companies that offer these chat

services for free, earn their revenue from advertisements that are displayed to

everyone using these chat services.

So, Web marketing and e-Business, both are new concept of doing the

business and are inter-combined and are irreplaceable part of the cyber

world.

!he (overnment initiativesThe 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.


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Announcement of the national long distance services beyond

the service area to the private area.

Complete non-monopolization of undersea fiber connectivity for

ISP on August 2000.

Free Right of way facility with no charge in cash or kind, to

access providers to lay optical fiber networks along National

Highways, State Highways and other roads.

Permission of Interconnectivity of Government and closed user

group (CUG) networks.

The establishment of Public Teleinfo Centers (PTIC) having

multimedia capabilities has been permitted.

100% FDI allowed in B2B e-commerce.

+eas'ring the /;ciency and /ectiveness o their

Site.

What metrics should be consider when calculating the value of the

Web site, or the return on investment? Let’s start with performance andavailability. To say that slow pages are the kiss of death doesn’t take all the

possibilities into account. When National Semiconductor asked its design

engineer customers about the need for speed, site visitors said that anything

more than eight seconds for a navigation page and 30 seconds for a data


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sheet was intolerable.

The Advertiser should also consider the type and number of pages of

their site that visitors look at during a single visit. Are more pages better?

When visitors first arrive and are investigating the depth and breadth of the

offerings, more pages is good. But if they are trying to solve a problem by

slogging through the quagmire of your section of "frequently asked questions"

pages that are intertwined like the roots of swamp trees, more is definitely not

merrier.

0oo&ing or atterns

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

visitor, then they can start to make assumptions about what people are

looking for and if they had trouble finding it. The trick is to look for patterns.

The researcher, the comparison shopper and the buyer all have their

own traffic patterns, and it’s up to you to serve them according to their needs.

If people are always clicking from the product page to the warranty page and

back, it’s good stewardship to put the pertinent information on the product

page and save them a click. Watch where they go and then do what you can

to make their way easier next time.


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The final consideration is how often people visit your site a

combination of recency and frequency. It’s great that somebody came to your

site 10 times in one day, but if that day was six months ago, it won’t do you

any good. The most desirable recency-frequency tally is different for different

types of sites. If your name is Yahoo! or AOL, then you want all the people, all

the time. If your Web site is located at http://www.urnsandcaskets.com, you

may feel a little people who come back day after day and stay a while.

Identiying rosects

Identifying what pattern is the best indication of imminent procurement

which depends upon the Review of the site path taken by those who

completed the purchase and watch for it again. Your site can make special

offer when a potential customer visits a certain number of times or looks at

particular pages. And then you can go one step further, called Geniality’s a

clever software that will determine the fewest attributes common to those who

performed the desired act (purchase, register, subscribe, etc.). It shifts

through mountains of data about your customers so you can more quickly

recognize the ones who are statistically most likely to buy, and it can tell you

which offer is the one most likely to make that sale.

Taking all this into the consideration one can manage their site

measurement of effectiveness.

Online Advertising Oerational Defnition


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Advertising Network - A group of websites, which share a common

banner server Typically, a sales organization, which manages the commerce

and reporting. An ad network has the ability to deliver unique combinations of

targeted audiences because they serve your banner or ad across multiple

sites.

Ad view- An ad view, synonymous with ad impression, is a single ad

that appears (usually in full view without scrolling) on a Web page when the

page arrives at the viewer’s display. Ad views are what most Web sites sell or

prefer to sell. A Web page may offer space for a number of ad views. In

general, the term impression is more commonly used.

Aliate marketing- Affiliate marketing is the use by a Web site that

sells products of other Web sites, called affiliates, to help market the

products. Amazon.com, the bookseller, created the first large-scale affiliate

program and hundreds of other companies have followed since.

Bandwidth - The amount of information that can be transmitted over

communications lines at one time. The higher the bandwidth, the faster the

Web page loads. Limited bandwidth is the main reason for keeping pictures

small. Just as it seems we will never have fast enough computers, it feels like

we will never have enough bandwidth. The amount of research and

development money being thrown at this problem should yield surprising

results before long.

Click- According to ad industry recommended guidelines from FAST,

a click is 'when a visitor interacts with an advertisement.' This does not


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apparently mean simple interacting with a rich media ad, but actually clicking

on it so that the visitor is headed toward the advertiser’s destination. (It also

does not mean that the visitor actually waits to fully arrive at the destination,

but just that the visitor started going there).

Click streams - The electronic path a user takes while navigating from

site to site, and within site, from page to page.

Click hrough - The act of clicking on a banner or other ad, which

takes the use through to the advertiser's Web site. Used as a counter point to

impressions to judge the response-inducing power of the banner.

Click Through Rate (CTR) - The response rate of an online advertisement,

typically expressed as a percentage and calculated by taking the number of

click through the ad received, dividing that number by the number of

impressions and multiplying by 100 to obtain a percentage - Example - 20

clicks / 1,000 impressions = .02 x 100 = 2% CTR

C!A- Cost Per Action. The price paid by an advertiser for each

'action' that a content site delivers. 'Action' may be a sale, a lead, a

successful form fill-out, a download of a software program or an e-commerce

sale of a product. Both the action, price and terms of a CPA purchase are

mutually agreed upon by the advertiser and content site and such a purchase

typically involves a back end tracking system provided by the advertiser that

allows the content site to view clicks and actions every 24 hours if they


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choose to do so.

C!C - Cost Per Click. The price paid by an advertiser to a content site.

When buying on a Cost Per Click model, the advertiser and content site have

mutually agreed that the content site will continue to display the advertiser’s

ad creative until X number of clicks have been delivered - the amount

purchased. As with other forms of online advertising, s dependent on content,

audience reached and targeted delivery - Untargeted being owner priced,

targeted to an affluent audience being at the high end of the rate scale.

C! - Cost Per Thousand (Roman Numeral) impressions. The price

paid by an advertiser for a content site displaying their banner 1,000 times.

C!# - Cost Per Sale. The price paid by an advertiser to a content site

for each sale that results from a visitor who is referred from the content site to

the advertiser’s site. This type of buying model is typically tracked with

cookies, where the cookie is offered on the content site and read on the

advertiser’s site at the success page after successful completion of one

transaction/sale. Typical rates/bounties range between 5% and 25% of the

retail price of the product or service being sold. See also CPA above.

Cookies - Client-side text file that is used by Web servers to store

information about the site visitor and visitor behavior. Information pertaining to

a site can only be ready the side that wrote the information. Used to identify

repeat visitors and track visitor behavior.


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$%ective &re'uency - The number of times an ad should be shown to

one person to realize the highest impact of the ad without wasting

impressions on that individual.

&re'uency- The number of times a given person will see an ad in a

given time period. Gross Exposures/Gross Impressions - The total number of

times an ad is shown, including duplicate showings to the same person.

(its - Every time a file is sent by a server, be it text, graphic, video,

and so on, it is recorded as a hit. Not a reliable gauge to compare different

sites, as one page with five graphic elements will register six hits when

viewed, while a page with no graphics will only register one hit.

)mpression- The Opportunity To See (OTS) a banner or other ad by

a surfer. When a page that includes a banner is viewed, it is considered an

impression. Inventory - The amount of available space for banners on a Web

site that can be delivered in a given time period. Also known as the amount of

gross impressions per month (or clicks if the publishers is selling on a Cost

Per Click rate model) available for sale to advertisers by a Web publisher.

*ink - A hypertext connection between two documents, image maps,

graphics, and the like.

!age view - When a Web page is requested by somebody through a

browser. Pageviews are often used to track the number of impressions a


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banner gets.

+unofnetwork- A run-of-network ad is one that is placed to run on

all sites within a given network of sites. Ad sales firms such as Latitude90

handle run-of-network insertion orders in such a way as to optimize results for

the buyer consistent with higher priority ad commitments.

+unofsite- A run-of-site ad is one that is placed to rotate on all

non-featured ad spaces on a site. CPM rates for run-of-site ads are usually

less than for rates for specially-placed ads or sponsorships.

#pam - Originally posting an ad to multiple newsgroups, now used

to describe unsolicited email advertising. Named after a skit by Monty Python,

spam is one marketing and advertising technique to avoid at all costs

-ni'ue visitor - A unique visitor is someone with a unique address

who is entering a Web site for the first time that day (or some other specified

period). Thus, a visitor that returns within the same day is not counted twice.

A unique visitors count tells you how many different people there are in your

audience during the time period, but not how much they used the site during

the period.

iew- A view is, depending on what’s meant, either an ad view or a

page view. Usually an ad view is what’s meant. There can be multiple ad

views per page views. View counting should consider that a small percentage


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of users choose to turn the graphics off (not display the images) in their

browser.

isit - A visit is a Web user with a unique address entering a Web site at

some page for the first time that day (or for the first time in a lesser time

period). The number of visits is roughly equivalent to the number of different

people that visit a site. This term is ambiguous unless the user defines it,

since it could mean a user session or it could mean a unique visitor that day.

HYPOTHESIS


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It is usually considered as the principal instrument in the research, it

may be defined as a proposition or a set of propositions set forth as an

explanation for the occurrence of some specified group of phenomenon either

asserted merely as a provisional conjecture to guide some investigation or

accepted as highly probable in the light of established facts.

!esting o hyothesis

Techniques of hypothesis testing are used if we have an idea about

the value of the parameter in question. The modern theory of probability plays

a vital role in decision making and the branch of statistics with helps in

arriving at the criteria for such decision is known as testing of hypothesis.

%hi-s1'are !est

Chi-square test statistically determines significance in the analysis of

frequency distribution. The logic involved in the chi-square test is that of

comparing the observed frequencies and the expected frequencies. It is

called a non-parametric test because it is based wholly on sample

observations and does not require any value corresponding to a population

parameter it is defined as Chi-square test

3'll Hyothesis: H<

It asserts that there is a significant influence of features of Online

Advertisement on the effectiveness of online Advertisement.


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Alternative Hyothesis: H=

There is no significant influence of features of online Advertisement on

the Effectiveness of online Advertisement.

Signifcance 0evel:

The critical probability in choosing between the null and alternative

hypothesis. The exact level of significance is largely determined by how much

risk one variable is willing to take and its effect on the other variable.

Degree o 4reedom:

It refers to the number of observations that can be varied without

changing the constraints or assumptions associated with a numerical system.

TABLE – 6.1

yahoo 5edi Siy +S3 !otal

%reativity 16 3 1 3 23Attractiveness 13 2 4 1 20

Inormation 24 5 3 2 34Accessibility

19 2 2 0 23!otal 72 12 10 6 100

e Advertising

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