Consumer Buying Behaviour Regarding Brand Apparels On Youth In Chennai(Male)

contents
CHAPTER 1 CHAPTER NAME Executive summary introduction Theoretical background 3. Design of the study Statement of the problems Objective of the study Limitation of the study 4 Methodology Research methodology Sample technique Sample description Sample size Instrumentation technique Data collection Tools used Other software used 5 6 7 Industry and product profile Analysis of data and interpretation Hypothesis PAGE NO

Summary of finding and conclusion

EXECUTIVE SUMMARY

The purpose of this research was to investigate males to examine if differences in their buying behaviour for apparel exist. In addition, consumer attributes (i.e., apparel involvement, self-esteem, reference group, social class, and media) and personal characteristics were investigated separately and in relation to the purchase behaviour of male. More information is needed to understand the male consumer. Although expanding in the past five years, research about the buying behaviours of consumers has tended to avoid males. Retailers and marketers should understand the immense diversity among consumers if they are to market apparel accurately and successfully.

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 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 cans 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 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 advertising began with Centre and Siegels 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. the Type of advertisement.

ii. Where it appeared on the Webpages. iii. How it integrated with content. iv. How well it matched the advertisers target audience Online advertising has to offer 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 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 mass- market 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. 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. Theres 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 gives the user, the ability to personalize non-static information and choose exactly what she sees. 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 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, colours, 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? E. 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, and it helps in educating the audience and also builds interactivity & direct response. No other traditional medium has the ability to give all of this. We 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

600 198 450

ISP Licenses surrendered Existing ISP Licensing Operational ISPs Cities covered 250

400 approx.

Cyber cafs/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 core Estimated investment made on Equipments by ISP Rs.2500 core Approval for setting up ISP 100+ TSP licensing issued 100

Growth of Internet Subscriber Base in India

Month Year

Subscriber base (in millions)

Aug-95 Mar-96 Mar-97 Mar-98 Mar-99

0.01 0.05 0.09 0.14 0.28

Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05

0.9 3 3.2 4 4.2 7.2

Advantages of Online Advertisement 1. Target Marketing: - A major advantage of the web is the ability to target very specific groups of individuals with a minimum of waste coverage. In the consum er market. Through personalization and other targeting techniques, sites are becoming more tailored to meet once need and want. 2. Message Tailoring: - 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 consumer markets.

3. Interactive Capabilities: - 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. Information 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.

5. Creativity: - 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. Exposure: - For many seller companies with limited budget the www (world wide web) enables them to gain exposure to potential customers 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. Speed: - For those requiring information on a company, its products, and /or its service offerings, the Internet is the quickest means of acquiring this information. Disadvantages of Internet 1. Measurement problem: - 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 publications 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. Audience 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 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. Costs: - 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 not end earlier, Levis for the cost of maintaining a site is considered "world-Class was prohibitive and one of the reason for abandoning its Ecommerce efforts. 5. Limited production quality: - 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. Poor 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 and awareness 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 present of the site visited. 7. Language: - If I am selling the goods through the media the buyer prefer to get the information of the products or services with his own language 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.

STATEMENT OF THE PROBLEM:

Is online advertising effective in influencing the potential Buyers? 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, I not ernes have a better impact than traditional media in the features like Format Variety, Affinity, and Pre solvability. Furthermore, Internet is the only medium so far which owns the feature of interactivity. That creates lots of new communication opportunities and possibilities that were unable to be achieved in the past because of the limitation of media technologies. In spite of these whether the online advertisement is effective in influencing the Potential Buyers in modern era.

OBJECTIVE OF THE STUDY:  To ascertain the importance of online advertising as a promotional tool.  To assess the effectiveness of online advertising on purchasing behaviour.  To ascertain which type of online advertising is preferred by consumer.

LIMITATIONS OF THE STUDY: 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

REVIEW OF LITRATURE Purpose: Review of literature refers to identifying already existing literature in the area of consumer behaviour 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  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? Methodology 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. METHODOLOGY DEFINITION OF RESEARCH DESIGN: 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. - Thomas Kinnear

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.

Sampling Method The sampling procedure used was convenience and judgment sampling, as in questionnaire was administered at places like the residents, cyber centres, Office and colleges in Chennai ECR. Tools for 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 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. Primary Data The prim ray data was generating red through extensive use of a structured questionnaire, which had both the open end and close-ended questions. They were conducted in Chennai ECR and the data collected was used for the purpose 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) Sample Size A total of hundred respondents were interviewed during the survey, the input from these respondents which was collected in Chennai ECR formed the primary data for the study.

DATA PROCESSING Collected data was Analysed 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 Covered Neelankarai RTO office Thiruvinmiyuer

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 2000s 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. 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 change the way advertisers generate and retain customers. To persuade visitors tore visit and spend time on the website, advertisers must fulfil 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 customers bargaining power. Todays 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 well-defined 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 alone-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 panel 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 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 Met crawler and get results, you will see such inline ad in-between search results. Pop-Up Windows 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 automatically pops up continuously rotating advertisement of sponsors. Website sponsorships 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.

Classifieds 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. Mailing 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 Chat 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.

Impact of Internet Advertising

The breadth of U.S. advertisers across virtually all industries means that growth of advertising spends is highly correlated with the GDP, a measure of the country's productivity. The story becomes different when disaggregating advertising spends by channel. While TV, direct mail and newspapers account for nearly three-fourths of all advertising spending combined, the Internet channel has grown the fastest since 2001, taking share away from most traditional channels. Internet advertising grew at an annual clip of 18% from 2001-2006 and only cable TV (10%) was close to a double digit growth rate. Other channels basically kept pace with GDP growth (about 3%), with newspapers (1%) and radio (2%) most negatively affected. Total US internet advertising was $21.2B in 2007, a 26% increase over 2006. Consumer related advertising made up 55% of revenue. However, in the first quarter of 2008, for the first time in three years, quarterly internet ad revenues failed to set a new record.

Advertising on the Internet has the dual benefit of being generally more efficient and effective compared to other media channels. A standard advertising cost metric is CPM or Cost per Thousand Impressions. For example, a $1 CPM equates to a cost of $1 to reach 1,000 theoretical viewers or readers (theoretical because not everyone will read or look at an advertisement). Internet CPM rates in 2006 averaged $6, much less than most traditional media (see table below). Compounding this lower cost is the effectiveness of Internet advertising, which can be measured using a variety of tracking methods. An advertiser can tell, for example, who clicked on an Internet ad and even who bought a product or service during an internet session. Companies such as Google and Yahoo! have leveraged the measure-ability of the Internet to charge advertisers for clicks rather than impressions, further attracting advertisers with its pay-for-performance model. On the other hand, it is extremely difficult to measure how effectively television, newspaper, radio or magazine ads drive sales.

Emerging channels
Video games and mobile phones are two channels that may threaten or accelerate Internet advertising companies. Console video games (i.e., PlayStation, Xbox, and Wii) are increasingly connected, and Internet-based games themselves (e.g., large online multiplayer games) have risen in popularity. In addition, mobile phones are one of the most popular devices in the world and have increased in capabilities through technology such as 3G, which enables a wide range of activity such as email, Internet browsing, and multimedia capabilities. Advertising on these channels is a small but rapidly growing trend. Internet advertising companies such as MSN and Yahoo! may benefit from these trends if they build capabilities to leverage these channels; otherwise, these emerging media may take share away from "traditional" Internet advertising as advertisers seek innovative ways to reach potential customers--for instance, mobile advertising has the benefit of being location-based and highly targetable. Internet video advertising is also growing in popularity and companies such as MODAVOX INC (MDVX) are assisting publishers of online videos in monetizing online videos. Whereas traditional TV advertising has relied on per-show and DMA targeting, internet video marketing can tailor advertising delivery on a per-user basis, according to the interests, viewing habits, demographics, time and / or location of every individual viewer. Internet video delivery also allows insertion parameters to be adjusted and optimized to maximize performance on the fly

Channel Maturation
Internet penetration and total page views in the U.S. have slowed in recent months, potentially signaling channel maturation. Internet advertising depends heavily on online traffic and if these trends continue, advertising spend on this may not grow at the same rate as recently

Measuring the Effectiveness of Online Advertising Strategies

The US$11.2 billion online advertising market has become much more sophisticated since the primitive days of simple banner ads. Today advertisers can snare viewers with snazzy graphics, Flash animation, and video ads that are virtually impossible to ignore. Others take a more muted, yet targeted approach using contextually relevant ads, such as placing text ads

for computers on a technology site. Googles AdSense division brings in about $6 billion in annual revenues through its targeted text ads, which Google claims have been seen by an estimated 76 percent of Internet users in the United States. But what are the most effective ways to advertise online? The authors found that two strategies flashy, even obtrusive Internet interruptions and more staid but targeted text ads are effective on their own, but, surprisingly, that combining these two approaches was a bad idea. This dual-barreled technique turned Web surfers off, led to negative product associations, and decreased consumers intention to buy the product. The researchers looked at almost 3,000 Web advertising campaigns across a wide range of products from apparel to entertainment to home improvement. They used data from a large collection of Internet surveys (an average of 852 survey respondents per campaign) that examined the effectiveness of different marketing tactics. This allowed the authors to compare targeted ads that matched products to website content with so-called obtrusive ones that featured video, pop-ups, or ads taking over the whole page. The study found that highvisibility ads videos, pop-ups, and the like were more memorable to consumers but content-linked targeted marketing lured higher numbers of consumers into saying they would actually buy the product or service. By blending the two strategies, advertisers achieved high visibility and consumer recall, but individuals complained in the surveys that they felt the companies were being too aggressive and felt as if their privacy had been invaded. This sentiment was especially pronounced in responses to ads from firms in the financial sector, where confidentiality concerns are paramount. Given that an estimated $664 million is currently spent on ads that are both targeted and obtrusive, the authors warn that advertisers would do well to abandon this strategy for a simpler approach. The researchers calculate that by doing this, marketers could cut ad spending by more than 5 percent without affecting sales. One of the reasons for Google AdSenses continued success, the study argues, is that its unobtrusive text-based ads are integrated seamlessly with Web content. In other words, a subtle approach might be the best way for companies to show customers that their privacy matters. Bottom Line: Online ads should either be integrated with website content or consist of attention-grabbing technology. Combining the two approaches can turn consumers off to the product altogether.

Effective internet advertising

Marketers and advertisers are getting as excited about the internet's resurgence as they did at the launch of TV. The growth of high speed broadband, and the number of online users, has opened new windows of opportunity for reaching consumers. The gold rush is on to find the most effective internet advertising techniques for mining the internet's, rapidly expanding, global marketplace.

Internet advertising is developing at a frantic pace, and its growth has already seen it overtake newspaper and magazine revenue with TV now firmly in its sights. The internet's advertising revenue for the first half of 2006 has been $7.9 billion; it continues to exceed all predictions.

The first banner advert appeared way back in 1994, swiftly followed by a deluge of popup ads sprouting on commercial websites all over the internet. These have been virtually killed off by popup blockers on most web browsers, and led to sites which hosted them being avoided anyway.

The most effective internet advertising method - and the one which generates by far the most revenue - is Google Adsense. Last year Google billed $5.5 billion to Adsense users, and it earns Google $1 million per hour. This income could see them soon overtake Microsoft for yearly revenue by 2010!

Adsense adverts appear on the right side of search results, and now also on many static web pages. Adsense is even taking over from affiliate banners as the advertising method of choice. It is easy to set-up, appears on sites with relevant content and provides arguably the best income for website owners. To incorporate Adsense into your site you simply register for a free account, paste the provided code into your web page and then Google will provide ads from their catalog of 100,000 advertisers. Merchants pay Google every time somebody clicks through; an unspecified portion goes to the site owner.

Adsence presents businesses with an excellent way of creating links back to their website all over the web, whilst site owners have a way of earning extra income. Some of the savviest webmasters are even able to support themselves on Adsense revenue alone!

Over the next few years, effective internet advertising will be heading into the realms of video. Newscorp didn't buy MySpace for $580 million, and Google didn't buy YouTube for $1.65 billion (in shares), just to get one up on their rivals. They both saw the potential of reaching the millions who use these sites every day.

This year video advertising revenue was a relatively modest $385 million, but is expected to rise to $2.35 billion by 2010! A growth never witnessed by any medium in the history of advertising.

The growth of video will, however, be dwarfed by the explosion in the mobile advertising market. With the number of high quality, multimedia handsets to double to four billion by 2011, it is estimated that mobile advertising revenue will reach $11.35 billion in the next five years.

Marketers are now working on the next wave of effective internet advertising techniques. In a culture which is becoming averse and dismissive of being blatantly sold to, these techniques will need to become ever more sophisticated and innovative in advertising to the rapidly growing online audience.

1. Potential
o

Internet advertising can prove to be one of the most effective advertising methods because of its ability to reach anyone surfing the Internet at any given time.

Types
o

Internet advertising includes affiliate marketing, banner ads, social media marketing and email marketing.

Benefits
o

Effective internet advertising campaigns can often be achieved through no cost and low cost methods. Effective Internet advertising campaigns can also be conducted solely through outside affiliates that earn portions of the profits they sell.

Considerations
o

The effectiveness of Internet advertising depends on attractive design elements and engaging content that reels in members of an already established or highly potential market.

Expert Insight
o

Travis Sago, an affiliate marketing expert, claims to convert 2 to 3 percent of his website browsers into customers.

Online advertising gives a better return on investment than other platforms

f someone offered you the opportunity to advertise your product or service for the duration of all television commercials during the AFL Grand Final and promised to deliver that level of exposure every year for just a few hundred dollars each month would you accept it? Billions of dollars are spent globally every year trying to compete for optimal advertising space just consider the AFL Grand Final, the NFL Super Bowl in the US or the UEFA Champions League final in Europe as three major sporting events that command monster, million-dollar advertising fees for mere seconds a few seconds in which to make an impression on what can only amount to a handful of relevant segments of respective target markets for the handful of products advertised. The competition for such advertising time is ferocious. Despite the millions spent, only a tiny fraction will ever get around to buying whats on offer so why invest in it? They say TV advertising works! Yet for the millions who watch these sporting events, how many are in buying mode? How many even stick around to watch the advertisements? If TV advertising works by targeting some of your target some of the time what about targeting all of your market all of the time? The traditional mindset is that getting that level of exposure and placing your brand or business in touch with your target market on such a large scale costs millions of dollars. How

about having that level of exposure for just a few hundred dollars each month? Add in the bonus of bypassing everyone else and reach your intended target every time you advertise? Plus the fact that your intended target is actively seeking the product or service you are selling!! The reality is that online advertising is so effective it can put you on your customers virtual doorstep every minute of every day for the tiniest fraction of what major multinational corporations fork out on television advertising time.

Advertising on Google is a cost effective advertising solution

he effectiveness of online advertising is in some way represented by the effectiveness of the internet as a search tool. The nature of modern life dictates that when we shop, when we search for information we go online if we want something or want to know something we Google it. Many of you probably Googled something to get to this page and roi.com.aus online advertising strategy was so effective you landed on this page. Apply such a process to your own business and website and you begin to see how ranking well in Google can change your companys prospects. Paid search advertising such as Google Ad words provides a great opportunity to get the ball rolling in the short to medium term and can relay quality traffic and genuine sales leads to your website but lasting success requires a dedicated approach a strategy designed to ensure that you get to the top of Google and constant evaluation, revision and refinement to ensure you stay there. The sustained effectiveness of online advertising depends on a strategic approach encompassing Google optimization or SEO, pay-per-click advertising such as Google AdWords and an eye-catching website that is easy-to-use. There is no need for a multimillion dollar marketing budget the internet can be and is mastered by the smallest businesses.

The Government initiatives  The 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 ISPs to set up international gateways.  Permission of Internet accesses through cable TV infrastructure.  Initiation of the setting up of the National Internet Backbone.  Announcement of the national long distance services beyond the service area to the private area.  Complete non-monopolization of undersea fibre connectivity for  ISP on August 2000.  Free Right of way facility with no charge in cash or kind, to access providers to lay optical fibre networks along National Highways, State Highways and other roads.  Permission of Interconnectivity of Government and closed user group (CUG) networks.

 The establishment of Public Telenor Centres (PTIC) having multimedia capabilities has been permitted.  100% FDI allowed in B2B e-commerce.

Measuring the Efficiency and Effectiveness of their Site. What metrics should be considered when calculating the value of the Web site, or the return on investment? Lets start with performance and availability. To say that slow pages are the kiss of death doesnt 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 datasheet 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.

Looking for patterns If the Advertiser makes use of cookies to analyse 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 its 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, its 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. The final consideration is how often people visit your site combination of regency and frequency. Its great that somebody came to your site 10 times in one day, but if that day was six months ago, it wont do you any good. The most desirable regency-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.

Identifying prospects 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 Genialitys 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 Operational Definition 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 target end 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 viewers 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. Affiliate 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 apparently mean simple interacting with a rich media ad, but actually clicking on it so that the visitor is headed toward the advertisers 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 Through - 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 responseinducing 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 ofclick through the ad received, dividing that number by the number of impressions and multiplying by 100 to obtain a percentage - Example - 20clicks / 1,000 impressions = .02 x 100 = 2% CTRCPA - 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. 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 choose to do so. CPC - 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 sad 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. CPM - Cost Per Thousand (Rom an Numeral) impressions. The price paid by an advertiser for a content site displaying their banner 1,000 times. CPS - Cost Per Sale. The price paid by an advertiser to a content site for each sale that result s from a visitor who is referred from the content site to the advertisers site. This type of buying model is typically tracked with cookies, where the cookie is offered on the content site and read on the advertisers 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 behaviour. Information pertaining to site can only be ready the side that wrote the information. Used to identify repeat visitors and track visitor behaviour. Effective Frequency - The number of times an ad should be shown tone person to realize the highest impact of the ad without wasting impressions on that individual. Frequency - 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. Hits - 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. Impression - The Opportunity to See (OTS) a banner or other ad bay 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 Website 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 Li ink - A hypertext connection between two documents, image maps, graphics, and the like. Page view - When a Web page is requested by somebody through a browser. Page views are often used to track the number of impressions banner gets. Run-of-network - 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 Latin ude90handle run-of-network insertion orders in such a way as to optimize results f or the buyer consistent with higher priority ad commitments. Run-of-site - A run-of-site ad is one that is placed to rotate on almond-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. Spam - 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 Unique 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. View - A view is, depending on whats meant either an ad view or apace view. Usually an ad view is whats meant. There can be multiple ad views per page views. View counting should consider that a small percentage of users choose to turn the graphics off (not display the images) in their browser. Visit - 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 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. Testing of hypothesis Techniques of hypothesis testing are used if we have an idea about the value of the parameter in question. The modern theory of probability playas 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. Chi-square Test 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 Null Hypothesis: H0 It asserts that there is a significant influence of features of Online Advertisement on the effectiveness of online Advertisement. Alternative Hypothesis: H1 There is no significant influence of features of online Advertisement on the Effectiveness of online Advertisement. The critical probability y 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 of Freedom: It refers to the number of observations that can be varied without Changing the constraints or assumptions associated with a numerical system. Analysis and Interpretation As observed from the given table and Graph the sample constitutes of67% male respondents and 33% female respondents. There is a quite a lot of difference between the number of males and females in the sample. In near future the percentage will definitely increase with the increase in the Female E-awareness. Analysis and interpretation As it can be observed from the given table, the major portion of sample (35 %) is constituted of people in the age group bet wean 20-25 years, and also a portion of sample i.e. (35 %) of respondent are in the age group between 25-30 years, (20%) of the respondent are in the age group below 20years, and the rest (10%) of the respondent are in the age group of above 30years. This states that the advertisement should target more of the Younger citizens to increase the awareness of their product s or services which in turn increases their sales revenue.

Analysis and interpretation As seen from the above table and chart, majority of the respondent (40percent) are college students, (25 present) are engaged in business. (25percent) are employees of various sectors like IT Professionals Charted Accountants, Lawyers, College Professor. (10 present) are others constituting housewives & children. This shows that m mainly college students are interested in browsing. So it is preferable for the Advertiser to concentrate mainly on the College Students to promote their Ads and influence them in increasing their sales Activities.

Analysis and interpretation From the above table and graph it is clear that 47 respondents browse weekly twice, 42 present spent less than one hour. 29 present of the respondent spend one hour to two hour. 18 present of the respondent spent two hour to three hour and 11 present of the respondent spent more than three hours in browsing. 30 respondents who browse weekly once 27 present spent less than one hour 40 present of the respondents spend one hour to two hour, 23percent of the respondents spent Two hour to three hour and 10 present. The respondent spent more than three hour in Browsing. 18 respondents who browse fortnightly, 80 present has spent less than one hour 39 present of the respondent spend one hour to two hour, 27 present of the respondent spent two hour to three hour, and 16 present of the respondent spent more than three hour.

5 respondents who browse monthly 20 present spent less than one hour 40 present of the respondent spend one hour to two hour 20 present. The respondent spent two hour to three hour, and feed the present of the respondent spent more than three hour. Analysis and Interpretation From the Data collected, all the Respondents are aware of online Advertisement while only 55% of the respondent check the Advertisement displayed on the Web and the rest of 45% do not check many of the Advertisement displayed on the Net. So if the Ads are such that with creativity and informative even those 45% can also be converted and included in the55% list. Analysis and Interpretation As observed from the Above table and Graph it clearly indicates thatmain aspects of surfing the web is for Entertainment purpose which comes to35%, followed by Purchasing i.e. about 22%, jobs related sites which is nearly20%, Only then comes of the respondent. Finally Academic and jobs with9% and financial loans 14% respectively. This clearly indicates that even if the Respondents are aware of online Advertisements they view mainly f or entertainment than for Purchasing of the Products or Services.

Ads related to various products  Advertisement  Purchasing  Entertainment  Financial loans  Academic  Jobs Analysis and Interpretation

From this statement and Graph it is clear that most of the Respondent i.e.(72%) of them has stated that yahoo is the best in providing all sorts of information and in providing Advertisements together with services on Net, followed by Reify with (12%) and Sift with (10%) Then comes MSN with (6%) and finally most of the Respondent has rated India times in last category. This analysis provides the information that most of the viewers prefer yahoo so it is preferable for the advertiser to place his ads in this site, If not the advertiser could go for Reify which is Ranked 2n d , and other sites are less preferred compared to these top two sites. Analysis and Interpretation The given table shows that only 43% of the Respondents have purchased online and the rest of the 57% have not purchased from the Net. It clearly states that the percentage of respondents who are aware of Net advertisement are almost near to that of the persons or respondents who have purchased online and within few more years it definitely would increase.

Analysis and Interpretation: The table shows that 28% of the respondents purchased CDs and cassettes online followed by travel booking with 21% and books and magazines which comes to 18% and then followed by mobile phones which is around 14 % followed by software and computer peripherals with 12% and7% respectively. From the Above table it clearly shows that product and services purchased online are not costly. Analysis and Interpretation: The above table indicates that the number of respondent who has not purchased through Internet is 57 out of which 23 are male. 78% of male prefer to purchase on line and 22 % of

them do not prefer to purchase online. Continued by 34 female who has not purchased through the Internet. 76 % of the female preferred to purchase online and 24 % of the female do not prefer to purchase from Internet. The above analysis clearly shows that even though the number of respondents who has not purchased through the Internet are more, but would prefer to do so in the future, there are very few percentage of people who do not prefer to purchase online. So there seems to be an opportunity that has to be tapped. Analysis and Interpretation: The above table states the reason why numbers of people do not prefer to purchase through Internet. Which clearly shows that Safety is the main reason with 31%, followed by privacy with 23%, high risk and registration process with 15% and 31% respectively. From this it is clear that for online advertisement to become effective the advertiser has to reduce the registration process and increase the safety of the site there by build the confidence of their loyal customer, which increases the confidence level of the customer and make them purchase on internet.

Analysis and Interpretation: From the above table it shows that only 36% of the respondents respond to online advertisement while 48% of them do not do so, only 16%respond sometimes. From this analysis the advertiser even though has less of response or feedback, he can take heart from the fact that 36% of them respond mostly while 16% respond sometimes this gives a target customer of 52% who show some positive signs Analysis and Interpretation: From the above table we understand that most of the people do not like the questionnaire form of ads (10%), while most of them preferred ads that run-through on the top or bottom of

the site while they are browsing, flash ads(30%) were the next preferred followed by pop-ups (26%).

FINDINGS OF THE STUDY This study was conducted with a view to know that whether Online Advertising is effective. It has been observed that there are many factors, which effect this statement of Problem like Occupation, Age, life style social factor, For this purpose a structured questionnaire had been designed and analysed. After analysing the data the following factors have been found out as major causes for the Online Ads Effectiveness The percentage of male browsing the net are more than that of Female Most of the internet users are in the age group of 20-30years with 35%which indicates that youngsters are using more net than that of the other community.

Most of the student community use internet more than that of the other occupation as it is a means of entertainment so the advertiser should target the student community to influence their effectiveness Compared to that of the students self-employed business people browse more for purchasing products and students browse more for Information and entertainment. Almost 60% of the people who browse the Net check t online Ads while browsing only if they are interesting and informative

The study clearly stated that most of the internet users surf for entertainment and information rather than for purchasing on the Net Internet with such high penetration still 53% of the respondents have not purchased any products or services online Most of the respondents who have purchased online have not involved themselves in purchasing frequently and even the cost of the purchase is also too low where it do not involve much risk.

Recommendations Go International with multiple language: Offer your web site in multiple languages. Like many sites come in Dutch, Spanish, Slovene, French, Czech, German, Russian, and Italian. Translation service on websites is also good which will help retain customers. Use of multi-medias we have seen the potential for banner and Internet ads, informative and creative ads are also preferred therefore hot new designs and innovative sales concepts should be developed. Obviously, the biggest bridge to cross is download time. If a little radio-like audio message that plays from your site upon a click of mouse or a T.V-mini commercial that plays at your banner on click of a mouse, it will be much more effective and interesting.Use

Banner Ads that Give Viewers Chance to Interact with Banners Interactive banner designs can be used wherein the client can printout a product sheet from the banner itself, order a product through a secured order form on the banner itself, click which button he prefer and be directed to a specialized product marketing page. Free offers The word free is just as effective in advertising online as it is offline. By sponsoring a freebie, a simple name submission drawing can also get viewers to go through ads in the process they become aware of the advertisement. Sponsor a contest People love to win ANYTHING! Offer your product or service as apprize. When a winner is selected, their name web address and a link to the site can be published. Adding a reciprocal link is professional way to say thank you and is of no cost to the advertiser. Web site testimonials Build trust or confidence in your online business by using testimonials. A direct quote with the permission of the customer is a nice touch. Listing name and e-mail address it acts as a reference that is easy and quick. Keep the testimonials to one or two sentences and keep it simple.

Target Audience Keep your target audience in mind. Business people aren't going to have the time or inclination to participate in game-type ads. On the other hand, teenagers love them. If your target group is younger people, games might be the thing for you. Design your ad to meet the preferences of your target customer. Include statistics

When you make a sales claim, back it up with information, including statistics. You might say, "Our saucepans have a non-stick coating thats guaranteed for life. In actual, in-home testing, food did not stick to our saucepans 98.3% of the time." Provide content on your site As you surf the Web take note of information that supports your advertising claims. Surveys, research, reports, testimonials, etc. can all provide valuable information that could move a customer from the point-of-decision to the point- of-purchase. Give away information free with a purchase or subscription to your newsletter. Since information is what surfers are looking to receive, it will work as a big incentive. Few tips that will help in making a connection with the clients:  Use you or your instead of we or us.  Include personal examples rat her than general examples. If writing to  Hair stylists, include examples specific to them.  Know your target audience very well. This is the only way you will be  Able to communicate with them on a personal level.  Write using the language of your target audience. include industry  Buzzwords and jargon when appropriate.

Customers will feel an attraction to copy that reaches out specifically to them. In a world where most advertisers are speaking to the masses, be sure to give yours an advantage by speaking personally to those you wish to do business with.

CONCLUSION

Is Advertising on the Internet a viable option? I have looked at this question in terms of effectiveness, profitability, and marketing methods. Internet advertising offers increased awareness of companies, an easy method to distribute information, advanced methods of

targeting consumers, an immediate and direct line to the customers, and reduced costs in performing these tasks. The only negative aspect is that consumers have to conquer their fears of the Internet - the fear that ordering through an on-line advertisement will get lost in the void of cyberspace. Fears always come with new technology, but it does not take long for people to adjust. As people get more accustomed to finding their product information on the Web, more anymore readers will actively seek out Internet advertising sites. Final y Donor try to do "anything and everything" to get the buyers attention. Everyone who comes to site isn't going to buy. The harder you try to get their attention and force them to read your ads, the harder they will try to escape.