“EFFECTIVENESS OF INTERNET ADVERTISING

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A RESEARCH REPORT ONEFFECTIVENESS OF INTERNET ADVERTISINGA DISSERTATON SUBMITTED FOR PARTIAL FULFILMENT OF THE PGPMM DEGREE FROM ISB&M, NOIDA BY

PRAFULL KUMAR SINHAROLL NO. 06 POST GRADUATE PROGRAMME IN MEDIA MANAGEMENT (2008-2010)

Under the guidance and supervision OfProf. PRIYANKA AHUJA INTERNATIONAL SCHOOL OF BUSINESS & MEDIA NOIDA

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DECLARATIONI hereby declare that this dissertation titled a study

onEFFECTIVENESS 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 to any Institute/organization for the award of any degree or diploma.

Place: Noida Date: ( Prafull Kumar Sinha )

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GUIDES CERTIFICATEI hereby state that the Dissertation entitled EFFECTIVENESS OF INTERNET ADVERTISING is the project work carried out by Mr. Prafull Kumar Sinha under my guidance and supervision.

Place: Noida Date:

(Prof. Priyanka Ahuja)

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ACKNOWLEDGEMENT

I am happy to express my gratitude to my elder brother MR. PRAMOD KUMAR SINHA(Asst. Engineer, Honeywell International) for many valuable ideas imparted to me for my project.

I extend my sincere thanks to Professor PRIYANKA AHUJA International School Of Business & Media, Noida for providing me All the Information required and the guidance throughout the project without which this project would not have been possible.

I would also like to sincerely thank all my lecturers and my friends for their help in completing my project successfully.

Place: NOIDA Date: ( Prafull Kr Sinha )

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EXECUTIVE SUMMARYInternet is fast emerging as a powerful medium of advertising in the new millennium. With the number of Internet users increasing manifold, the new medium is viewed as the advertiser's dream. The Internet is the fastest growing medium in the 2000s with millions of users and an average estimated growth of 124% annually. 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 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 andInterpretation 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 drawnwhich includes whether consumers are aware of online advertisement, do

online advertisement effect their purchase behaviour.

With the critical Analysis and Interpretation the Suggestions 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.

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THEORETICAL BACKGROUNDMarketing is more than just distributing goods from the manufacturer tothe 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 user.

The 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. Definition: - The institution of practitioners in advertising defines "advertising 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

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entails, placing of electronic messages on a web site or email platform which achieves the following purposeGenerates awareness for the brand. Stimulates interest /preference for a product or service. Provides the means to contact the advertiser for information or to make a purchase.

History of Internet Advertising Advertising has faithfully served the print industry for 200 years, and was applied to the Internet with every expectation of success. Web advertisingbegan with Center and Siegegls in famous Green Card Lottery message on

the Usenet site in April 1994 and was followed in October by advertising placements for AT&T, MCI, Sprint, and Volvo on Hot-wired and finally the idea caught on. The Advertisement grew in sophistication, and today there are Static, rotating, scrolling, animated, flash and interstitial banner ads 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. ii. iii. iv. The Type of advertisement. Where it appeared on the WebPages. How it integrated with content. How well it matched the advertisers target audience

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Online advertising has to offer:

1. Scalability - Like television commercials, it doesn't cost very much toincrease the reach of an online ad campaign. There is no need to print

additional

copies of

a

magazine,

or

to

create

and

mail

direct-mail pieces. 2. Hot demographics - The online community is more affluent, better educated, and younger and more willing to spend than the population at large. More and more people go online and the number is ever increasing. 3. Targeted messages - Unlike broadcast and print media, the Internet allows advertisers to target exactly who will see their ads, and in what context. Web publications serve every conceivable audience, from the 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. Broad and flexible reach - While the Net cannot yet match television's market penetration, the size of the online audience is growing very quickly. More importantly, because you buy online ads by the impression, you can buy as much or as little of that audience as you desire. And that's true no matter how popular or specialized the site on which your ads run- as a rule, advertising costs depend on how many impressions you buy, not on the size of a site's audience.

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5. Cost-effective - Partly because you pay only for exactly what you're getting, online advertising can be extremely competitive with other forms of advertising. If you buy 1,000 ad impressions, for example, you know that exactly 1,000 people will see your ad. 6. Detailed tracking and measurement - Compared to online advertising, traditional media advertising is like shooting in the dark. The Web allows advertisers to gather detailed information on who saw an ad, when, in what context, how many times and so on. Better still; you get this information instantly, not weeks later when it's too late to adjust your campaign. Of course, not every site currently provides this level of feedback, and not every advertiser knows what to do with it. Over a period of time, however, this is likely to become one of Web advertising's most important competitive advantages. 7. The ability to extend the transaction- Traditionally, advertising was a one-way mechanism. Apart from techniques like toll-free numbers pitched in infomercials and mail-in coupons in print publications, there was no way for customers to act on the information in the ad. On the Web, though, interested customers can click, learn more, and actually buy on the spot. There's simply nothing more powerful. 8. Good Creativity - Creative Design of Home page is very important for the surfer to get hooked on to the site. Within seconds the user should get an idea about the site and where to go within it. If the opportunity is missed the user many never return. Hence Content is King Content is the most important element of a site. Content rich Web pages lure users. The value on the web is information. The beauty and challenge of the Web is that it