Professional Documents
Culture Documents
By
P. MANONMANI
Roll No.
0905MBA1152
Reg. No
68309100149
A PROJECT REPORT
Submitted to the
of
February, 2011
BONAFIDE CERTIFICATE
bonafide work of Mr. / Ms. PRIYA ABRAHAM who carried out the
work under my supervision. Certified further that to the best of my knowledge the work
reported herein does not form part of any other project report or dissertation on the basis
of which a degree or award was conferred on an earlier occasion on this or any other
candidate.
Signature of Guide
Signature of Project-in-charge
………………………………………………………………………………………………
Name : Name :
(in capital letters) (in capital letters)
Designation: Designation :
Address : Address :
Coordinator
Study centre
Name :
(in capital letters)
Designation :
Address :
Date:
ABSTRACT
This project aims at study and analysis of online advertising technology. 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. This project analyse the factors
affecting the online advertising technology. This project helps to know the effectiveness of
the online advertising technology on the people in the industry. This primary objective is
objective is to study on what basis people are attracting in online advertising and to study
There were a number of motivating factors that can be discovered through the analysis of the
collected data. We looked at those which are most effective and played significant rules in
customer decision. These factors are grouped into three categories: Product, Motivation, and
Demographic.
The other demographic factor that was independently surveyed was concerning the range of
income of participants. As the following figure shows, the most active group was the $30,000
As stakeholders, the participants were asked what type of online advertisement would appeal
to them the most. The responses in the following table show that embedded video
advertisement (40%) followed by animations are the types of online advertisements that catch
the consumer's attention. Finally, the participants were asked how many actual purchases or
transactions they made within the five months period through online advertisements.
ACKNOWLEDGEMENT
We express our deep sense of gratitude and heartfelt thanks to our guide,
Mrs. R. Priya Abrahm, M.B.A., M.Phil, Lecturer, Velammal College of Management and
Computer studies, Chennai-66, for his keen interest, useful suggestions and invaluable
ABSTRACT 4
ACKNOWLEDGEMENT 5
TABLE OF CONTENTS 6
LIST OF TABLES 7
LIST OF FIGURES 8
1. INTRODUCTION 9
1.1 Research background 9
1.2 Identified Problem 11
1.3 Need for study 12
1.4 Objective and scope 16
1.4.1 Primary objective 16
1.4.2 Secondary objective 16
1.5 Deliverables 16
2. LITERATURE SURVEY 17
2.1 Review of Literature 17
3. METHODOLOGY 19
3.1 Methodology
3.2 Target Respondents 20
3.3 Assumptions and Limitations 20
3.4 Sampling Method 21
3.5 Tools for Analysis 22
4. DATA ANALYSIS AND INTERPRETATION 22
4.1 Data Analysis
4.2 Data table on analysis on reaching out of products 25
4.3 Chart for analysis on reaching out of products 25
4.4 Analysis on most attractive ad’s 26
4.5 Chart for analysis on most attractive ad’s
4.6 Analysis on factors attracting in online Advertisements 27
4.7 Chart for analysis on factors attracting in online Advertisements 27
4.8 Analysis on age group inn online Advertising 28
4.9 Chart for analysis on age group inn online Advertising 28
4.10 Analysis on salary factors in online advertising 29
4.11 Analysis on salary factors in online advertising 29
5. CONCLUSIONS 30
5.1 Findings 31
5.2 Conclusions 31
5.3 Directions for future research 32
6. APPENDIX 33
7. REFERENCES 37
LIST OF TABLE
The emerging area of interactive advertising presents fresh challenges for advertisers who
have hither to adopted interruptive strategies. This paper explores various online
advertisement factors that motivate consumers to recall online advertisements. The emerging
area of interactive advertising presents new challenges for advertisers who have hitherto
the viewer has actually chosen to see the commercial. This new mindset, not surprisingly,
holds for the way in which the audience is willing to engage with ads. Online advertising
reduces costs, increases efficiency, provides more flexibility and as a global medium, the
Internet enables buyers and sellers to interact and manage business transactions. The
promotion of online sales and advertising revenue in the US has grown from $8.23 billion in
2000 to $12.5 billion in 2005. According to a survey conducted by the American Advertising
14.1% in 2005, a figure that is projected to hit 1 9. 1 % by 2006. Perhaps it is its immediate
responds that make online advertising one of the fastest growing methods of targeting
consumers (Homer, 2005). However, there have been growing concerns about invasion of
From the buyer's perspective, the limitations include the inability to touch, smell and taste or
try-on tangible goods before making an online purchase. A survey of 410 marketing
executives indicated that insufficient ability to measure impact, a lack of internal capability,
and difficulty convincing senior management as the top three barriers to entry for large
companies looking to market online. However, as Advertisers increase and shift more of their
budgets online, it is now overtaking radio in terms of market share (Clark, 2002). The
objective of this research was to study the type advertising factors that motivate consumer
recall of online advertisements. According to Internet World Stats, as of September 2007, the
world's population is estimated to 6,574,666,417, where 1,244,449,601 are using the Internet.
In fact, the United States of America had the greatest contribution with regards to the number
of Internet users, since 212,080,135 or 70.2% of USA's population had been captured by the
power of Internet. Such great population of Internet users had now undoubtly encouraged
Many industries are concentrating in advertising technology to promote their products. Now
Many media’s are available in the advertising technology. So each industry searching the
Best advertising media which reach people easily and to promote to buy their products.
Many advertising media’s are available. But recently online advertisements in the internet
Reaches people more easily. Because 70% of the people in the world uses internet frequently.
Online advertising requires effective strategies in reaching customers Zinkhan & Watson,
2004) These strategies may include personalization and integration of multimedia and real-
time interactions. The largest revenue shares within Internet advertising are generated by
display-based and search-based advertising. The latter utilizes the Internet user's search
accounted for approximately $5.1 billion in 2005, 41% percent of total Internet advertising
revenue. Google and Yahoo are leaders in the search-based advertising market (Goldberg &
Gorn, 2005). Unlike traditional media, online advertising generally through its search engine
provides advertisers with access to large affiliate networks as well as opportunities for
display-based and search-based advertising (Green, 2001; Chen & Wells, 2005). In addition
data contained in a consumer's IP address. For example, a user with an IP address originating
from Baltimore might receive an offer to purchase Baltimore Ravens tickets while visiting a
football-related website. Visiting the same website at the same time, a user from Philadelphia
So this project aims at to know the effectiveness of online advertisements in the purchasing.
Secondly this project what basis people are attracting in online advertising and To Study
on Effectiveness of ad formats.
1.3 NEED FOR STUDY
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. Examples of online
advertising include contextual ads on search engine results pages, banner ads, Rich Media
Ads, Social network advertising, interstitial ads, online classified advertising, advertising
networks and e-mail marketing, including e-mail spam.
Online advertising is a form of promotion that uses the Internet and World Wide Web for the
advertising include contextual ads on search engine results pages, banner ads, Rich Media
Ads, Social network advertising, interstitial ads, online classified advertising, advertising
One major benefit of online advertising is the immediate publishing of information and
content that is not limited by geography or time. To that end, the emerging area of interactive
advertising presents fresh challenges for advertisers who have hitherto adopted an
interruption strategy.
Another benefit is the efficiency of advertiser's investment. Online advertising allows for the
Words, Yahoo! Search Marketing and Google Ad-sense enable ads to be shown on relevant
One major benefit of online advertising is the immediate publishing of information and
content that is not limited by geography or time. To that end, the emerging area of interactive
advertising presents fresh challenges for advertisers who have hither to adopted an
interruptive strategy.
Another benefit is the efficiency of advertiser's investment. Online advertising allows for the
customization of advertisements, including content and posted websites. For example, Ad
Words, Yahoo! Search Marketing and Ad Sense enable ads to be shown on relevant web
pages or alongside search results of related keywords.
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.
“We know that newspapers have a very limited ability to target audiences,” said Bonatti, who
worked with Yale University economics professor Dirk Bergemann on his research into the
issue. “Specialized magazines can do better, while Google has a very good ability to target
who’s browsing each page. So while online advertising certainly has the potential to drive out
traditional advertising, it does not necessarily follow that online advertisers will make more
money.
The Future of Advertising Project, from the Wharton School and the Advertising Research
Foundation (ARF), finds that and online advertising are the most effective mediums. The
study also found that DVRs aren't cutting companies' profits from advertising but TV
advertising does lose money for most businesses.
The results of our research showed that when DoubleClick Ad Exchange wins the auction,
Publishers generate 188% more revenue, on average, net of revenue sharing and ad serving
fees, compared with fixed upfront sales of non-guaranteed display advertising. These
results are aggregate across all publishers participating in the Ad Exchange. We included
both branded and anonymous inventory in the study, and noted similar results (197% lift for
since the first version of the study, to over 33%. Across all pre-emptible inventory, including
those instances when the Ad Exchange did not win the auction, the revenue lift for publishers
averaged 12.5%.
analyses to determine precise revenue and CPM uplift. We encourage DoubleClick clients to
contact their account managers for further details. Additionally, the Product and
Engineering teams are developing a dashboard that includes real-time revenue lift numbers
You can make a lot of money through super-powerful targeting if you are a monopolist, but
not in a competitive market. So, this research aims in finding out the solution for increasing
the revenues in online marketing.
1.5 DELIVEERABLES
REVIEW OF LITERATURE
Abstract : The importance of branding has increased in recent decades due to the ever-
growing flow of information and advertising, both offline and online. An important part of
branding is the brand personality which is a way to differentiate the company (and its brands)
Abstract : The advent of the Internet has added various new dimensions to the
provide a deeper understanding of how the Internet is used as a medium for marketing
communication.
Abstract : Context: Global software development is the emerging trend in today’s world as it
provides the software companies with certain advantages like access to skill and cheap labor,
low development cost etc. There are also many challenges and risks involved in globally
distributed software project as compare to co-located projects like communication,
Abstract : Businesses are in a constant race to increase profits, keep currentcustomers and
gain or poach new ones, competing for customers on a globalised market like never before.
One of the many sets of tools aimed at aiding the interaction between supplier and customer
is customer relationship management(CRM)
CHAPTER 3 - METHODLOGY
3.1 METHODLOGY
A survey method was used as the means by which data is collected within the chennai area.
The online questionnaire was distributed by emails and posted on chennai area,
MySpace, Yahoo blog, Face Book, and YouTube online. The survey was started in December
2010 and continued through February 2011. The data was collected in two forms using online
survey and face-to-face interviews. The primary data were derived from answers the
Over the period of three months, 150 participants responded to the questions.
All of these respondents were selected through a relatively large sample size of different
groups. There was 120 men and 30 women participants. Ages of participants ranged from 18
to 65. Majority of the sample (55.5 per cent) was between the ages of 1 8-34. The 5
participants did not have a history of online shopping or completed the questionnaire. The
participants qualified for sample selection must have purchased product or service also be
resident of chennai.
The questionnaire contains various recall online advertising factors and socio-demographic
characteristics of the respondents such as age, gender and income. These questions are
weighted as a four-point scale (strongly disagree, agree, disagree, and strongly agree) and a
five-point scale (very important, important, moderately important, not so important, and
unimportant). To validate the data, participants were asked whether online advertisement had
anything to do with their online purchasing.The majority of the participants who purchased a
product or service online were significantly influenced by the online advertisement. Applying
data-driven and quantitative approach, the data was collected from participants and tabulated
MySpace, Yahoo blog, Face Book, and YouTube online. The survey was started in December
2010 and continued through February 2011. The data was collected in two forms using online
survey and face-to-face interviews. The primary data were derived from answers the
Over the period of three months, 150 participants responded to the questions.
All of these respondents were selected through a relatively large sample size of different
groups. There was 120 men and 30 women participants. Ages of participants ranged from 18
to 65. Majority of the sample (55.5 per cent) was between the ages of 1 8-34. The 5
participants did not have a history of online shopping or completed the questionnaire. The
participants qualified for sample selection must have purchased product or service also be
resident of chennai
Online advertising is well known only for city based living people and this technology
1. Most website owners will not reveal the revenue they are earning.
It is incumbent on the researcher to clearly define the target population. There are no strict
rules to follow, and the researcher must rely on logic and judgment. The population is defined
Sometimes, the entire population will be sufficiently small, and the researcher can include the
entire population in the study. This type of research is called a census study because data is
Usually, the population is too large for the researcher to attempt to survey all of its members.
A small, but carefully chosen sample can be used to represent the population. The sample
samples, each member of the population has a known non-zero probability of being selected.
Probability methods include random sampling, systematic sampling, and stratified sampling.
In nonprobability sampling, members are selected from the population in some nonrandom
manner. These include convenience sampling, judgment sampling, quota sampling, and
snowball sampling. The advantage of probability sampling is that sampling error can be
calculated. Sampling error is the degree to which a sample might differ from the population.
When inferring to the population, results are reported plus or minus the sampling error. In
nonprobability sampling, the degree to which the sample differs from the population remains
unknown.
A sample is a subject chosen from a population for investigation. A random sample is one
chosen by a method involving an unpredictable component. Random sampling can also refer
to taking a number of independent observations from the same probability distribution,
without involving any real population. The sample usually is not a representative of the
population from which it was drawn— this random variation in the results is known as
sampling error. In the case of random samples, mathematical theory is available to assess the
sampling error. Thus, estimates obtained from random samples can be accompanied by
measures of the uncertainty associated with the estimate. This can take the form of a standard
error, or if the sample is large enough for the central limit theorem to take effect, confidence
intervals may be calculated.
Data is collected by survey method and by the random sampling all the data’s are considered
And by the graphical charts, all data’s are calculated and analysed.
There were a number of motivating factors that can be discovered through the analysis of
the collected data. We looked at those which are most effective and played significant roles in
online advertising.
A survey method was used as the means by which data is collected within the New Orleans
area. The online questionnaire was distributed by emails and posted on New Orleans
Craigslist, MySpace, Yahoo blog, Face Book, and YouTube online. The survey was started in
Nov 2010 and continued through February 2011. The data was collected in two forms
using online survey and face-to-face interviews. The primary data were derived from answers
Over the period of five months, 150 participants responded to the questions. However, only
150 respondents were accepted since they met both condition of having online
purchasing history and answering all the questions. All of these respondents were selected
through a relatively large sample size of different groups. There was 120 men and
sample (55.5 per cent) was between the ages of 1 8-34. The participants qualified for
sample selection must have purchased product or service also be resident of New Orleans,
Louisiana. Table I shows the survey questions, choices, and number of responses to each
question.
The questionnaire contains various recall online advertising factors and socio-demographic
characteristics of the respondents such as age, gender and income. These questions are
weighted as a four-point scale (strongly disagree, agree, disagree, and strongly agree) and a
five-point scale (very important, important, moderately important, not so important, and
unimportant). To validate the data, participants were asked whether online advertisement had
anything to do with their online purchasing. As the following figure shows, the majority of
the participants who purchased a product or service online were significantly influenced by
Applying data-driven and quantitative approach, the data was collected from participants and
80
70
60
50
40
30
20
10
0
Online Newspapers Stores TV Others
60
50
40
30
20
10
0
Banner Text Ad Pop up Video
Factors No of Voting’s
Brand 10
Usefulness 40
Price 90
Value 10
90
80
70
60
50
40
30
20
10
0
Brand Usefulness Price Value
Age No of Voting’s
18 to 30 120
31 to 40 20
41to 50 7
>50 3
4.9 Chart for analysis on age group inn online Advertising
140
120
100
80
60
40
20
0
18 to 30 31 to 40 40 to 50 50+
60
50
40
30
20
10
0
<1lakhs 1-3 lakhs 3-5 lakhs 5lakhs+
CHAPTER 5 – CONCLUSIONS
5.1 FINDINGS
In first question, the participants are asked that in which media they came to know the
cell phone features. Out of 150, all of them are answered, through online advertising, they
purchased.
The participants are asked to which type of ads are attractive in online. Out of 150, 65
of them are answered as Video ads.
The participants were asked how many actual purchases or transactions they made
within the 2 months period through online advertisements. The responses indicated that the
highest number of transaction was 26 or greater, followed by 21-25.
Out of 150, 120 participants are accepted online advertisements are the heart of
revenue for existing websites like Yahoo, Google and facebook
When participants are asked about the limitation of the online advertisement, only few
of them are reported that they faced issues like 404 error page in payment, credit card hack
and password hack.
The participants were asked how important the price, value, and usefulness factors are
in making decisions and attract them in recalling online advertisement. Majority of the
respondents agreed that the price of the products indeed attract them the most in recalling
online advertisement.
The results revealed that embedded videos, price, product or services, along with credibility
make online advertisements a very effective tool in motivating consumers in recalling online
advertisements and eventually making business transactions. The research concluded that
advertisers need to advertise their product or service based on what the consumers want in
advertisement, and music advertisements are not as effective as embedded video which
enhance online advertisement and motivate consumers. The result of this research study
provides useful tools for both the consumer and the business owner.
5.2 CONCLUSIONS
have opened the door to a new era of interactivity and creativity. There are a variety of
factors of Internet advertising methods that one can use to drive a potential customer to
his/her site. These factors may include consumers, products, technology and media. This
research project was focused on recalling factors. It applied a data-driven model and
advertisements. Over 150 participated in the survey process among them, 150 selected as
the group who answered all the questions and at least made one time online purchase. The
results show that embedded videos, price, product or service, along with credibility make
advertisements and eventually making business transactions. The research concluded that
advertisers need to advertise their product or service based on what the consumers want in
advertisement, and music advertisements are not as effective as embedded video which
This project may extend to analysis on website revenue due to online advertising. Websites
are earning revenue in millions or billions in online advertising. Facebook revenue on 2010
for online advertising is 1.8B and yahoo and google earnings in millions. So we can extend
Questionnaire
a. Newspapers
b. Mobile Centres
c. Online advertising
d. TV
e. None of the above
4. On 2030, Only Online advertising exists. Other advertising techniques will not
exists.
a. Agree
b. Strongly Agree
c. Disagree
d. Strongly Disagree
5. How many actual purchases or transactions you made with in the last six
months?
Yes
No
a. Advergame
b. Celebrity Humorous
c. Embedded Video
d. Music
8. Did you face any problem in online purchasing? if any, please mention
a. Price
b. Value
c. Usefulness
d. Brand
e. Other
a. < 1lakh
b. 1 lakh to 3 lakh
c. 3 lakh to 5 lakh
d. More than 5 lakh
a. 18 to 30
b. 31 to 40
c. 41 to 50
d. > 50
12. When you decide to buy online, how many times would you refer online advertising
for the products?
a. Every time
b. Most of the time
c. Occasionally
d. Hardly ever
13. How do you rate the relevance of the results from online advertising?
a. Very Satisfied
b. Somewhat Satisfied
c. Somewhat Dissatisfied
d. Very Dissatisfied
14. How do you rate the following aspects? - Trust the websites in online shopping.
a. Very Satisfied
b. Somewhat Satisfied
c. Somewhat Satisfied
d. Very Dissatisfied
15. From buyer respective, what are the limitations in online advertising?
Name:
Gender:
City:
Date:
REFERENCES
Aker, D.A. & Stayman, D.M, (2005). Measuring Audience Perceptions of Commercials
and Relating Them to Ad Impact, Journal of Advertising Research, 30(4), 7-17.
Bruner, G.C. & Kumar, A. (2000). Web Commercials and Advertising Hierarchy-of-
Effects, Journal of Advertising Research, 35-42.
Chen, Q. & Wells, W.D. (2005). Attitude Toward the Site, Journal of Advertising
Research, .27-37.