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Internet Advertising
Abstract
Along with the rapid increase in the number of Internet users around the world,
the World Wide Web has become the fastest growing advertising medium in this
decade. The Interactive Advertising Bureau (2007) reported US online advertising
revenue's growth from 1998's US$1.8 billion to $20 billion in 2007. The 10 fold
increase not only signifies the importance of online advertising to the advertising
and media industry, but also the rapid advancement of technology in online
advertising delivery and display formats that requires researchers to help the
media and advertisers to capitalize on the new medium and the society in
understanding the increasing impact of the medium..Online advertising accounts
for almost 9 percent of all advertising in the United States. This share is expected
to increase as more media is consumed over the Internet and as more advertisers
shift spending to online technologies. The expansion of Internet-based advertising
is transforming the advertising business by providing more efficient methods of
matching advertisers and consumers and transforming the media business by
providing a source of revenue for online media firms that competes with
traditional media firms. The precipitous decline of the newspaper industry is one
manifestation of the symbiotic relationship between online content and
advertising. Online-advertising is provided by a series of interlocking multisided
platforms that facilitate the matching of advertisers and consumers. These
intermediaries increasingly make use of detailed individual data, predictive
methods, and matching algorithms to create more efficient matches between
consumers and advertisers. Some of their methods raise public policy issues that
require balancing benefits from providing consumers more valuable advertising
against the possible loss of valuable privacyOnline Advertising is the form of
promotion that uses Internet and World Wide Web to deliver marketing message
to attract, retain and enhance the customers. A consumer can have idea and
information of even a small business enterprise with respect to large business
enterprises regarding products and services. Focus on different trends of online
advertising also has been done which results with the fact that online ads has
become a challenge for the print ads as various online applications, social site
help to lead towards the data instantly than other advertisement media existing.
This is an attractive awareness creating tool of promotion of the business. Online
Advertising is a booming sector on which the research is going on.
Introduction
Internet is the hottest medium of exchange of information in today’s world. In the
entire history of human race there are five major mass communication media –
the newspaper, the magazine, the book, the radio and television. Now there is a
sixth medium called the internet which is believed to be the greatest of all the
media. In today’s era, online advertising is very popular because of its ability of
reaching to the masses without any geographical boundaries. Internet advertising
is an advertising strategy which includes the application of internet as a means to
get hold of website traffic and aim to deliver the marketing messages to the right
set of customers. Online advertising emphasis upon defining the market with the
help of internet unique and useful applications. The success of any business
entirely depends upon when they are capable of attracting or retaining their
customers with profit and this objective can be achieved only when company can
build a strong consumer perception for its products and services. Consumer
perception is a complex phenomenon. It is very helpful in knowing the attitude
and behavior of customers. A well design persuasive advertisement and a positive
frame of mind of a consumer perception always tempted the individual in
influencing his/her buying behaviour. The selection of a good advertising strategy
solely depends upon what kind of perception an organization wants to develop in
the mind of consumer and when a positive frame of mind developed, customers
are more inclined towards products and services. It is very difficult to survive in
this fast moving technological competitive world as because organization needs
to build quality advertising strategy and positive perception in the mind of
customers. Then only the purpose of above discussed strategy can be served to
retain the existing customers and increase the sales volume and profit margin. In
the light of above discussion, one may believe that the online advertising and
consumer perception have a significant relationship. Advertising is a form of
communication which persuades the consumer for making purchase decision and
to provide information to the viewer. When the information is presented in an
enjoyable context, it is readily accepted. Thus, we can term advertising as an
infotainment concept. The concept of advertising came into existence with the
Marketing Mix. Marketing mix well known as 4 Ps of marketing i.e.; Product,
Price, Place, Promotion and advertising is a component of Promotional mix, which
is to create awareness among the consumers about the products and services for
making the purchase decision. Advertisement can be seen from date backs in the
ancient time also. Thus according to the Marketing Legend, Philip Kotler,
“Advertising is any paid form of non-personal presentation and promotion of
ideas, goods, or services by an identified sponsor”. With the economic and social
effects advertising also covers two main functions i.e.; the provision of
information and persuasion (Norris 1984). In modern days, advertising has
become the most important form to promote the products and services and is
used for the purpose of communication as well. The internet emerged as a new
tool in the mid-1990s, for reaching consumers and also provided a variety of
technologies for influencing opinions and desires (Boudreau and Watson, 2006).
The evolution of the Internet provides the new opportunities into the
globalization as well as the local region. This new technology refers the
communication and information to be glocalized. Even the internet and website
provide convenient services to the customers who can efficiently manage their
resources. In today‟s scenario, the internet plays a vital role in the consumer
buying decision. According to the marketing researchers, the Internet has become
the “mainstream” and for the most parts, the offline world is mirrored by online
world (Hoffman and Novak, 1996). Thus, online advertising is the form of
promotion that uses internet and worldwide web to deliver marketing message to
attract the consumers. A consumer can have idea of even a small business
enterprise with respect to large Corresponding Author:-Ashamayee Mishra.
Address:-Research scholar, Department of Business Administration, Sambalpur
University. ISSN: 2320-5407 Int. J. Adv. Res. 5(6), 1935-1939 1936 business
enterprises. Focus on different trends of online advertising also has been done
which results with the fact that online ads have become a challenge for the print
ads as various online applications, social site help to lead towards the data
instantly than other advertisement media that exist. This is an attractive
awareness creating tool of promotion of the business. Marketing communication
consisting of sales promotion, public relations, direct marketing and compiles an
important element of E-commerce strategy, where electronic marketer project
these weapons to create awareness, preference and choice (Strauss and Frost,
2001). In the future of advertising industry (in 10-15 years), the web advertising
will have the most vital influence (Ducoffe 1996). In 21st century, online
advertising provides more exposure and control to the customers and they can
also select how much commercial they wish to view. Consumers can explore
promotion, get pricing information, participate in product design, arrange
deliveries, sales and also can receive post purchase support.
Review of Literature
As stated by the Bausch and Han with the introduction of widely held web
destinations for example Facebook and MySpace, a new type of internet user’s
group has now reached at a distinct position in the electronic commerce,
called online advertising community. A research report by Tencent advocates
that the Google which is one of the largest network site in the world is visited
by more than 20,000 million users per month. This enormous base of
community users helped Google to earn US$120.9 billion in online advertising
in the year 2008. Hart confirms that by seeing the exponential growth of
online advertising, the marketers hope to find new means to harness these
online users for fulfilling their purpose of advertisement. Mesure and Griggs
established that the marketers willingness to reap long-term and sustainable
advertising profit, they realized the unadorned threat that the users of online
sites will sense a kind of exploitation if the sites over-run with ads. Nutely
states that the burgeoning online advertising industry is under amassed public
threat who is putting pressure in order to maintain a balance between the
users’ demand for incessant social experiences and the need to earn
advertising profits. DeKay Gangadharbatla]and Bagozzi and Dholakia tries to
speak about the concerns that is being held by community organizers
regarding the methods to persuade the users to be engaged in online users
group. In particularly, though a number of electronic commerce research
explores the online communities, but a very few study has been conducted the
acceptance and perception of members about adver- International Journal of
Engineering & Technology 49 tising in online network communities. To get a
better insight into this vital sphere of research and application, this study look
into the literature on advertising to inspect how the group norms and social
identity of online users group may affect the perception and behavioral
responses to advertising. In authors suggested in the internet perspective,
customer acquisition and retention through online advertising rests both on
the internet penetration growth and application and in what manner the
internet effects the adoption and diffusion of products and services. In authors
stated that to communicate the information about the product and services,
advertisers were usually keen to use the web, they were mostly fretful about
the security, privacy issues and uncertain about how the impact of online
advertising be measured. According to managers of website perceived that the
web is one of the most popular and economical means of advertising. It is
widely used in transforming information, triggering action, generating
information about products, brand image etc. Schlosser and Kanfer found
extensive difference in attitudes among internet users’ towards the advertising
on the internet. Pleasure of viewing at web adverts contribute more than the
information or application of the web advertising regarding consumer
behavior. It shows that the reported perception about the internet adverts
were not just a reflection of the demographics of the users of internet.
Ghose & Dou found that the popularity of website depends upon the greater
degree of interactivity on the web. However, according to the effectiveness of
advertising does not always enhanced by the interactivity but sometimes it can
cause an interruption in the process of persuading, particularly when ads are
focused. The term online advertising is simply a term that relates to
advertising online, or advertising over the Internet. It is a form of promotion
that uses the internet and the World Wide Web to deliver marketing message
to attract the consumers. Advertising has a strong impact on the mind of
viewers than other marketing tools, as its exposure is very high (Katke, 2007).
Advertisement plays an effective role in developing brand awareness and
positive attitudes among consumers (Briggs & Hollis, 1997). Online advertising
creates a cost effective and on-going relationship with the consumers, by
letting them to know about the product and services whenever and wherever
they want to with the wish to purchase or repurchase (J Suresh Reddy, 2003).
Comparison among the variety of products and services is possible with the
advertisements published in the internet (VikasBondar, 2000). According to
the recent studies the internet has emerged as a domain for channel of sales.
Online advertising is playing a vital role in changing the consumer buying
behavior and their preferences and also create new forms of purchasing
products (V.Kumar&Denish Shah, 2004). Online advertising, viz, online
marketing is very much cost effective than the traditional form of advertising;
marketing due to the use of the power of internet network and interactive
media results in reaching the objectives of marketing (Scott F. Geld, 2003). In
case of online advertising, the consumers have a direct control on what the
advertisement is, when, where and for how long the ad should be posted on
so that they can have a regular update (Gallagher et. al., 2001). A prominent
and positive relationship can be observed within the expectation of online
consumers and effectiveness of online advertisement (Palanisamy& Wong,
2003). Online advertising has become the highest revenue generator for
Google. In India, online advertising has been accepted as a medium for a wider
industrial segment such as, automobiles, telecom, education, banking,
insurance, credit cards, FMCG, apparels, durable goods, media, business,
services, tourism (Neelika Arora, 2004). The long term success of a website
often depends upon the ability of it to balance the fundamental and frequently
conflicting needs i.e., the need to sell ad space on the site to make money and
the need to keep the users satisfied for their continuous visit to the sites
(Christian Rohrex& John Bod, 2004). According to the study done by Nicholas
Ind, Maria Chiara Riondino, 2001; the web is both a distribution and a
communication channel which results in facilitating the interaction community
building, openness and comparability of the advertisement. Thus the branding
of the product is emphasized by the online ads.
Different people have different views and opinions about online advertising
and hence the results and conclusions can differ.
On October 27, 1994, the world of advertising was forever transformed by a small
graphic bearing the presumptive words, "Have you ever clicked your mouse right
here? You will," in a kitschy rainbow font. The age of banner ads had officially
begun.You can thank (or blame?) Wired magazine's former online off-
shoot HotWired for introducing the world to the enduringly ubiquitous banner ad.
HotWired was a digital publication, and it needed a way to generate revenue to
pay its writers.The publication devised a plan to set aside portions of its website
to sell space to advertisers, similar to how ad space is sold in a print magazine.
They called the ad spaces "banner ads," and charged advertisers an upfront cost
to occupy the real estate for a set time period -- very different from today's pay-
per-click model. AT&T paid HotWired $30,000 to place the banner ad above on
their site for three months. The ad enjoyed a click-through-rate of 44% -- a
number that would make most marketers balk in disbelief today.
This was nothing short of revolutionary in the digital advertising space. Not only
were companies reaching more relevant audiences, but websites hosting the ads
were also able to display banners that were more applicable to their visitors.
WebConnect also introduced the CustomView tool, which capped the number of
times a particular user was shown a single banner ad. If a user had already seen
an ad a certain number of times, they would be shown another ad instead.
Users tend to stop noticing a banner ad after they've seen it before, so capping
the number of times a user sees an ad helped early online advertisers
prevent "banner fatigue." Ad frequency capping is still a common display ad tactic
advertisers use today.
In 1996, banner ads plastered the internet, but advertisers still didn't have a good
process to determine if these ads were actually driving tangible results for their
businesses. Marketers needed a way to more efficiently manage their display ad
campaigns across multiple websites and report on how users were interacting
with their ads.
Doubleclick emerged on the scene as one of the first ROI tools for banner ad
campaigns. They offered advertisers a new service called D.A.R.T. (Dynamic
Advertising Reporting & Targeting), which enabled companies to track how many
times an ad was viewed and clicked across multiple websites.
The most impressive feature of D.A.R.T. was the fact that advertisers now had the
ability to track how their ads were performing and make changes to a live
campaign. Previously, advertisers needed to wait until a campaign was completed
before they could analyze the results and optimize their next banner for better
performance. If an ad was performing poorly, they were forced to wait it out.
By this time, the web was expanding rapidly and users needed a better way to
navigate the terrain. With search engines steadily gaining popularity, advertisers
looking to create ads that were more targeted and less loathsome turned to
sponsored search as the next digital advertising frontier.
In 1999, GoTo.com -- an emerging search engine company that would later be
acquired by Yahoo -- introduced the first pay-for-placement search engine
service. Advertisers were given the opportunity to bid for top search engine
results on particular keywords. Despite some initial outcries that paid search
would lead to corrupt results, GoTo.com was able to monetize their search engine
through the model.
Pay-for-placement eventually evolved into pay-per-click. Companies bid on search
result placement on a per-click basis: e.g., I'll pay GoTo.com $1 per click if you put
my company as the top search result. This led to search results that were largely
determined by how much a company was willing to pay. The highest bidders
were usually listed first, even above more relevant content, and it was unclear to
users which results were paid and which were organic content.
The user experience of paid search was suffering, and one up-and-coming search
engine thought they could fix it. Google introduced AdWords in 2000, originally
under a pay-for-placement ad model. Google wanted to create a sponsored
search experience that generated revenue without compromising the quality and
relevancy of search results.
While previous paid search models like GoTo.com relied on bids from advertisers
to determine search rankings, AdWords introduced a Quality Score model, which
took into account an ad's clickthrough rate when determining its placement on
the search results page. Even if an ad had a lower bid, it would still appear above
other, less relevant paid ads in search results thanks to its high clickthrough rate.
The Quality Score model is still used today.
2006: Digital ads become hyper-targeted
As social media platforms picked up steam in the mid 2000s, advertisers sought a
way to integrate ad content in a way that was both effective and non-intrusive.
Marketers wanted a plan of action to reach younger internet users who were
increasingly unswayed by banner ads and spending most of their internet time on
social networks.
Targeting consumers with relevant ads -- rather than bombarding them with a
large volume of ad content -- has become a standard practice for online
advertisers, particularly on social media. Beyond Facebook's targeting efforts,
other social networks such as Twitter, YouTube, and Google+ focus on providing
an advertising experience for users that doesn't feel aggressive or impersonal.
Advertisers pay to produce articles, videos, and other types of content for news,
media sites, and Google.
While the goal of the content is to promote the business, the format looks and
feels less like an ad and more like a regular piece of content on the host's
website.
Instead of relying on ads that disrupt their target audience's online experience,
native advertising allows marketers to create promotional content that
supplements a user's online experience. "Marketers interested in targeting ads to
specific consumers in an unobtrusive fashion should seriously consider spending
some time on native," Mimi An concluded in a HubSpot Research study on native
advertising.
Websites that traditionally generated revenue from display ads began to realize
that they could create a better user experience by relying primarily on native ads
-- rather than traditional display ads -- without compromising on ad revenue.
Digital advertising spending worldwide – which includes both desktop and laptop
computers as well as mobile devices – stood at an estimated 378 billion U.S.
dollars in 2020. This figure is forecast to constantly increase in the coming years,
reaching a total of 646 billion U.S. dollars by 2024. Mobile internet advertising is a
heavily invested sub-sector of the digital advertising industry. Mobile internet
advertising spending is forecast to increase from 276 billion U.S. dollars in 2020 to
nearly 495 billion U.S. dollars in 2024. Following this pattern, mobile advertising
spending in the U.S. is also forecast to grow in the coming years. Mobile ad
spending in the U.S. is projected to nearly double between 2019 and 2020.
Building and sustaining a healthy and strong customer base is what smart
businesses do today. Thankfully it’s a simple task to achieve, which is
possible by enlisting the services of the best developers and marketers
expertise for get the best products and message materials that is possible,
to grow and sustain the interest of customers. Online Advertising is said to
have been used with success by new start-ups as well as businesses that
have been around for many years.
DRIVES NET-TRAFFIC
An Online Ad helps in its own way to optimize a Website or Social Media outlet
like Facebook or even a Blog. When it’s synergized with SEO keywords, it
performs even better by making Websites or Blogs to position on 1st page of the
search results. Research studies have revealed that being at the 1st page of
search results can help generate more than 50% of the net-traffic flow to a
Website or Blog.
Online Advertisement acts as a powerful catalyst that can have a powerful effect
on the viewers, facilitate interest in buying products or hiring services and helping
business grow.
INCREASES TRUST
Inbox.
As is known, an E Mail inbox is one of the most frequently
accessed locations on the
That they are keen to get the messages from the business
about their products /
services.
Apart from this, social media sites can enable fans of the
business and their products / services to find new ways to
interact with the right people and learn about what the
business is all-about and what they are able to offer.
Further, fans can ask questions or gain proper help to
solve their requirements or just interact with the business
marketing / customer-support employees.
clients too.
Thanks to the enormous scale of the Internet and its reach
and the growth of Data over the years, businesses and
organizations today can find numerous Online Advertising
outlets / networks on the Internet and use them to great
effect to conceive a great looking Advertisement with eye-
catching content and punchlines that can instantly catch
viewer’s eye.
SEO
Digital Marketing Agency
Online Advertising