a study of impact of online advertisements on (1)
TRANSCRIPT
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
1/31
A STUDY OF IMPACT OF ONLINE
ADVERTISEMENTS ON CONSUMER:
A SECTOR-WISE ANALYSIS
Ankur Mahajan74/2010
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
2/31
Flow of the presentation
Introduction
Literature review
Surveys
Advantages of online advertising
Benefits of online advertising
Factors influencing growth
Types of online advertising
Objectives
Research Methodology
Questionnaire Design
Data Analysis
Recommendations
Conclusion
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
3/31
Introduction
Advertising was first established and developed in printformat in the form of banners, cut-outs, brochures,newspapers etc. Radio followed the trend along withTelevision. Internet gained its impetus in India in the mid 90'sand since then, efforts were made to propagate andestablish the advertising root in the World Wide Web.
Online advertising budgets have been climbing in recenttimes, but they are still a small percentage of the overallbudget. The Internet holds great promise as an advertisingmedium.
Majority ofIndian consumers today, are young. It makessense for brands, therefore, to use youth-centric medium forreaching out to them.
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
4/31
Recognizing that banneradvertising can have animpact on branding, it would
be helpful for those designingonline advertising tounderstand thecharacteristics of an online adthat are related to its successon brand-orientation.
Where theres a need to makea greater foothold withawareness and messaging, acampaign should focus on theupper funnel. Where theres
an opportunity to winfavorability and purchase, acampaign should focus on thelower funnel.
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
5/31
Growing Internet user base, increasing time spent on theInternet, broadband penetration into households and
fragmented media consumption habits of consumers aredriving advertisers towards the online medium.
The various sectors that have been analyzed in the research
are: Automobiles, Laptops/ Consumer Electronics, Apparel,Cellphones, Blogs, home furnishings/dcor, FMCG,Healthcare and Financial Services. These have been linkedto the various portals available for advertising online:Facebook, Orkut, Twitter, Linkedin,Google Search,
Youtube, etc.
Since online advertising in India is not very successful as ofnow, the consumer behavior in this category might be verydifferent than the one for the popular media of advertisinglike the print or television.
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
6/31
Literature Review Advertising Frequency (BroussardG.)
Advertising frequency directly impacts direct response (click onthe ad) and brand awareness. Low frequency of ad has lowerresponse
Viewing Mode, Duration and Context (Danaher P., Mullarkey G.)Online users tend to have higher recall and recognition whenthey are surfing rather than getting something accomplished.Longer the time a user spends on a website, higher the recall andrecognition.
Interactivity on a Website (Wang C., Zhang P., Choi R., D'EreditaM.,) Unlike traditional medium, a consumer's attitude to an adand the context can be different. Higher interactivity on awebsite may result in better brand building, even though the aditself may not result in direct response.
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
7/31
McKinsey survey
Web is increasingly being used for advertising,product development and customer service.
65% of respondents in the technology industry feelthat online marketing is important.
One-third of companies that advertise online spend
10% of their advertising budget on online media.
Search engine advertisements rank highest in termsof perceived effectiveness.
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
8/31
IMRB research
The total Online Advertising market ofIndia is estimated at Rs.785 crores for the year FY 2009-10 and is expected to grow to Rs.993 crores in year FY 2010-11
Online Display advertisements contributed Rs. 417 crores (Rs4170 million) Display Advertising continues to surge, registering agrowth of 22% over previous years figure of 325 crores. In FY2009-10 Display Advertising was estimated to be Rs. 235 crores,registering growth of 77% in two years.
The display ad market (banner advertising) is expected to growby 28% while Text is expected to grow by 26% in FY 2011. In year2009-10, Display ad industry is estimated to be Rs. 417 crores andText ads is Rs. 368 crores; Travel, BFSI, auto & Telecom continue toremain biggest display ad spenders in year 2009-10 and will remainso for year 2010-11 as well.
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
9/31
I cube research : A customer
perspective 89% of all regular online Indians shop online (search or buy).
20% have also bought online in last 1 year, i.e., active onlinebuyers base of 7.6 million.
65% of online buyers have bought a travel product online and50% have bought a non-travel product online.
74% of travel buyers have bought train tickets, 34% air tickets.
Credit card is the most popular mode of online payment at 50%.
Less than 1 in 5 non-buying online shoppers cite fear of misuseof credit cards as a reason for not buying online.
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
10/31
Advantages of online
advertisements Cheaper than traditional offline
advertisement in term of cost and time.
Can be carried out in an attractive manner.
More appealing through use of graphics andvisual aids.
Customized message for different audience.
Changes can be easily implemented. High reach and convenience.
Brand recognition and exposure.
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
11/31
Benefits of Online
Advertisements
Core Benefits
Augmented Benefits
Peripheral Benefits
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
12/31
Factors influencing growth
Domestic Internet User Base Large online user base Increasing penetration to significantly widen user base
Positive Consumption Patterns More access and consumption of online medium Higher speed ofInternet connections
More frequency and longer duration Increase in response to online advertising
Literacy & Language Barrier
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
13/31
Types of Internet Advertising
E-mail Advertising Target Advertising
Behavioral Advertising Affiliate Marketing Pop-ups Social Media
Wallpaper Ad Video Ad Floating Ad Trick Banner
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
14/31
Objectives
To study the effect of Online Advertisements on theattitude and opinion of the consumer and consumersdecision making.
To identify the impact of online ads in various sectors andanalyze its effectives on the consumer behavior.
To see which portals are the most effective for whichindustry.
To gauge the effect of gender and working status ofinternet users on their clicking and purchasing behavior.
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
15/31
Research Methodology
The research methodology comprises of twoparts-
Primary research related to consumers: To findout the perception of internet users in Indiaabout online advertising and how responsivethey are to the same.
Secondary Research: To get a good overview ofthe background and history of this industry andany other information that may be required.
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
16/31
QUESTIONNAIRE DESIGN
The questionnaire was designed for the targetaudience that is the internet users. The samplesize was 160 out of which around 100 were
students and the rest belonged to the workingclass. This was to get a good understanding ofthe perceptions of all demographic groups.
The location was Delhi/NCR and so the findingsmight be applicable only to advertisers trying totarget the metropolitans.
Questionnaire
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
17/31
Data Analysis
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
18/31
Likeliness of an ad (percentage) of that particular industryon a portal
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
19/31
Facebook is suitable for advertisements aspeople tend to spend relatively more time onthese websites
Ads for industries like Fashion, Food and
Beverages, Electronics and Automobiles aremore visible to the consumers
For industries like Finance, Home dcor,
Healthcare, and Electronics the Google Searchstands out as the most preferable portal becauseit provides the consumer with vast and reliableinformation
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
20/31
Probability of a click on different portals
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
21/31
Likelihood(in terms of percentage) of a click and subsequentpurchase from a particular industry on a particular forum
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
22/31
10.75%* is the likelihood of a person making apurchase from a retail sector from a forum like
Facebook.
Google Search as a portal where people feelthey can make online purchases emerges
Industry like Food and Beverages, Entertainmentand Retail people tend to rely on theGoogleSearch
The next most popular portals are the contentnetworks i.e. the various other sites (movies,music, gaming, news)
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
23/31
Association between the rate of clicking
and purchase of online consumers
Ideally, the rate of clicking should have been positively correlated to the
rate of online purchases
Though Indian consumers have started indulging in online purchases, it isnot generally through clicking of online advertisements
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
24/31
Effect of Gender on clicks and Purchases
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
25/31
Effect of working status on clicks and
purchase behavior
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
26/31
Effect of gender on the various
industries purchase
Gender does not show any association withthe online purchasing behavior withindifferent industries as well
Though obviously there is a difference in themeans due to the nature of the industries for
e.g.- electronic and healthcare items arepurchased more by men than women, thereare no major differences in the buyingbehavior otherwise
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
27/31
Most popular choice of Industry
Industry Number of votes
Fashion 105
Food and Beverages 119
Retail 79
Movies/Music/Games 82
Electronics 45
Healthcare 38
Finance 124
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
28/31
Most popular choice of portal
Portal Number of votes
Search Engine 107
Educational Websites 41
Social Networking Sites 123
Gaming and Music Sites 38
Blogs 41
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
29/31
RECOMMENDATIONS
The probability of an ad being noticed decreases with increasingnumber of hours spent online.
Expert Internet users develop the ability to consciously avoid ads
Banner ads yielded higher recall compared to text-based ads
Pop-up ads had a negative impact on the target audience. Mostconsumers get irritated with pop-up ads.
Ads that had a longer presence on a website it results in higherbrand recall
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
30/31
Conclusion
Search quality and experiential quality are useful concepts to leveragefor achieving synergy between offline and online methods.
Online display advertising industry in India needs to develop globally
accepted performance measures that also cut across various other mediavehicles like television, print and radio.
With the distinct advantage of online in terms of the number of hoursspent online, immersive experience that online can offer and the
contextual delivery of messages, online advertising is bound to emerge awinner.
-
8/3/2019 A Study of Impact of Online Advertisements on (1)
31/31
Thank you