Online Advertisement in Service Sector

Type— Assignment

Topic— Online Advertisement in Service sector

Submitted to— Purvi Mam

By- Rajat GandhiTY BBA (Sem-5)Roll No. - 22

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Overview—

Introduction

o What is Service

o What is Advertising

Online Advertising

Types of Online Ads

Characteristics

Challenges

Yield Management/Pricing Strategy

Self-Service Technology

Promotion

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What is Service?

A Service is an act or performance offered by one party to another that is essentially intangible & does not normally result in ownership of any of the factor of the production.

Service is a type of economic activity that is intangible, is not stored and does not result in ownership. It is consumed at the point of sale. Services are one of the two key components of economics, the other being goods.

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Advertisement-

Advertising is the paid, impersonal, one-way MARKETING of persuasive information from an identified sponsor distributed through channels of mass communication like Newspaper, pamphlets, Internet, TV etc.to promote the adoption of goods, services or ideas.

Online Advertisement-

Online advertising is a form of promotion that uses the Internet and World Wide Web for the expressed purpose of delivering marketing messages to attract customers.Ex. Contextual ads on search engine results pages, banner ads, Rich Media Ads, Social network advertising, online classified advertising, advertising networks and e-mail marketing, including e-mail spam.Online advertisement was started in 1994 in India, and now it gradually increase with the market competition.

Here are some types of online advertising

• Google Search Ads

•AdWords Ads

• Social website ads

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• Banner Ads• Google Display • Mobile Ads• In-Game Ads • Email Ads• Video Ads

Characteristic of Online Advertisement-

1. Wide coverage-Online advertising can reach people all over the world via the Internet all around the clock, without restrictions to domain and time.

2. Effective-The number one reason more and more businesses are spending more and more on online business advertising is because it produces results.

3. 24/7- Spreading of the Advertisement on the internet is continues without any interruption, it may possible that service provider is asleep or not available but still customer can experience the service or know about it virtually.

4. Variety-There are very huge verity in the online advertising like: display advertising, search engine MARKETING, search engine optimization, social media MARKETING, email marketing, referral marketing, video marketing, webinars, podcasts, online radio, online TV, banner, directory marketing, strategic partnership, apps and widgets.

5. Statistical Accuracy- It’s very hard for traditional media advertising to accurately calculate how many people can receive the information of an advertisement. While online advertising is different, it can conduct accurate statistics on how many times the advertisement is exposed in front of

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users, how many further clicks users make after they are interested in the advertisement, and when and where these users look up the advertisement. This can help customers correctly evaluate advertising effects and examine their advertising release strategies.

6. Interaction & Direct sense experience-Carriers of online advertising are basically multimedia and hypertext documents. If consumers are interested in a specific product, they can further know more, detailed and vivid information about it by just clicking the mouse.It allows customers to really experience goods or service, and conduct booking, transaction and settlement on the Internet, which can greatly strengthen development of online advertising.

7. Instant Tracking-As in the example above, having the ability to track web users in realtime is a powerful feature that can only be achieved online.

8. Automated- Business connects online business advertising with e-commerce. An e-commerce enabled website simply means that you can transact business on it.

9. Sharebility-Sharing information online via e-mail or on social media sites is so common. Most people are used to sending and receiving links, documents and more to and from friends, family and co-workers. This has given rise to social media marketing, Internet viral marketingand other ways of online business advertising.

10. Targeted- Through the online advertising business can also able to saw their advertisement to the people of some particular segment. This segment may be of Region, Age group or gender.

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Challenges faced by Online Advertising-

1. Place of Advertisements- Advertisement may not be placed at the perfect position on the website.

2. Changes in WEB data- Google changes its data 500-600 time in a year, with its people also change their search options so it is very difficult for the advertisers to identify what people likes most and post advertisement there.

3. Platforms changes- Today most of the people would like to surf the internet from mobile or tablet rather than the Desktops, so it is very difficult of Advertising agency to display the ads on mobile. Ex. If a person surfing the social site say facebook then he/she does not able to see the advertisements on facebook from mobile or tablet.

4. A Traditional mediums- In India still majority of the people like are like to know news by watching TV or reading newspapers in the morning time, so it is very big challenge in India for onlibe advertising industry to attract customer first before traditional mediums like TV, Newspaper or Radio.

5. Mentality- It is a very typical challenge for an advertising agency to make an advertisement such that it suits the culture or mentality of the people of that segment.

6. Data waste on online videos- It is observed that many people tried to avoid online videos and directly download them only because of bombarding of advertisement videos.

7. Skipping- Advertising agency & business both are do hard work to make an advertisement which are only of 20 to 30 sec. and tried to make it concept clear but when they ads it on videos of YouTube before online video streaming most of the people are

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click the SKIP button and they avoid those ads and then the purpose of those ads are demolished at some level.

8. High resolution ads vs. low net speed- In India still the speed of Internet is very slow with compare to other countries. Today India is going on the path of Digitalization so it is necessary to makes video ads in 1080p but due to data transmission speed it is very difficult to open it, so people tried to neglect them.

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Yield Management-

Yield management is a variable pricing strategy, based on understanding, anticipating and influencing consumer behavior in order to maximize revenue or profits from a fixed, perishable resource.

Yield Management, controlling customer demand through the use variable pricing and capacity management to enhance the profitability. Most of this work is of tactical and mathematical rather than managerial.

Today the market of online advertising is growing and with this competition is also gone tough between advertising agencies. So Today it is very important for them to make the maximum utilization of money i.e. yield.

Normally in Online advertising industry mainly 3 types of Pricing strategy are there.

i) CPM (cost per thousand)ii) CPC (Cost per clicks)iii) Customer Action

i) CPM- In this strategy Advertising agency charged on the basis of impression on one thousand customers. For Ex. If website publisher charges ₹ 100/thousand impression, so advertiser must pay ₹ 100 for 1000 impressions of its ad.

ii) CPC- In this strategy Advertising agency charged on the basis of Clicks that are done on the ads. If your ad performs well and a lot of users click through to your site, each click-through costs you less. On the other hand, the lower the click-through rate the more each click costs you.

iii) Customer Action- The customer action model is based on actual sales or anotherdirect customer action that results from an ad. The best example of this model may beAmazon.com'sAssociatesProgram, which pays a bounty to Web sites that refer visitors back to Amazon.com. Inthis case,

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the "banner ad" is simply the special Amazon URL, which is built into the link from the referring site.

iv) Fixed rate- In this pricing strategy advertiser has to pay a fix amount for an ad. Reach of ad and clicks are doesn’t matter here.

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Self Service Technologies-In the Advertising industry this trend of Self service is so much popular today. In this technology Advertiser does not require to contact agency person to give the advertisement, they can directly post their ads & pay the cost of advertisement.

This technology is very useful when nobody wants to waste their golden time. In this Self-service technology of advertisement advertisers just simply go on the website of the advertising agency and fill the form of advertisement, This form is designed in such a manner that not a single topic is missed out relating to the ad. Advertiser can also give the video and photos as an advertisement.

Facebook.com is a very great example for the self-service advertisement. In FB advertisers does not require contacting FB customer services. Facebook create a very friendly advertising pattern that anybody can promote their product or services between more than 1 billion people. FB also gives the right to advertiser to control on their ad. Advertisers can also decide thatpeople of which age group, which gender, people of which location, people of which interest will saw this ad.As per their requirement FB controls their ad and as that they also charge to advertisers.

Self-Service technology is very easy and fast, instead of that as per the survey of Forbes magazine only 20% of advertisers out of all online advertisers like to go with Self-service technology. The main reason is that this technology is normally useful only for small

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budgeted and small scale businesses because huge business whose advertisements are lakhs of rupees does not like to pay it with credit card and they did not want to drop their valuable ad on the trust of only advertising agency.

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Promotion-Today in the world of competition even advertising agency cannot be stand alone. Advertising agency also supposed to promote them self.

In promotion advertising agency not only post ad on their website but they may give it on either on social media or video streaming, other websites, Google search. So we can say that promotional tools also require promotion.

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