A STUDY ON CONSUMER EVALUATION OF ONLINE ADVERTISEMENT

PROJECT REPORT SUBMITTED TO THE BIRLA INSTITUTE OF TECHNOLOGY, RANCHI (DEEMED UNIVERSITY)

FOR THE PARTIAL FULFILLMENT OF DEGREE OF MASTER OF BUSINESS ADMINISTRATION

PALLAYYA CHOWDARY.NEKKANTI
MBA/8032/09

Under the Supervision of Mr. SOOFI ANWAR DEPARTMENT OF MANAGEMENT

BIRLA INSTITUTE OF TECHNOLOGY INTERNATIONAL CENTER UNITED ARAB EMIRATES RAS AL KHAIMAH June, 2011

DECLARATION
This is to certify that the present report A STUDY ON CONSUMER EVALUATION OF ONLINE ADVERTISEMENT is based on my original work and data collected and indebtedness to other works/publications has been duly acknowledged at the relevant places. It has not been submitted in part or full for any other diploma or degree of any other university.

SIGNATURE

PALLAYYA CHOWDARY.N

CERTIFICATE

This is to certify that the project entitled

STUDY CONSUMER

EVALUATION OF ONLINE ADVERTISEMENT is the project work

Carried out by PALLAYYA CHOWDARY.NEKKANTI of MASTERS OF BUSINESS ADMINISTRATION, Department of Management, Birla Institute of Technology, International Centre, Ras Al Khaimah, during the academic period (2009 2011).

Signature of the Guide

Signature of Head of Department

ACKNOWLEDGEMENT
I would like to take this opportunity to thank all those who have been a support and encouraged me throughout my dissertation and the whole of MBA program.

My sincere thanks to Dr. K. Durga Prasad, the Head of the Department and Mr.SOOFI ANWAR (Lecturer) for his guidance and support towards the successful completion of this project.

Last but not the least; I would like to thank my family for the encouragement and moral support given to me during the course of the project.

TABLE OF CONTENTS
SERIAL TOPICS COVERED NO 1.0 CHAPTER 1-INTRODUCTION 1.1 INTERNATIONAL SCENARIO OF INTERNATIONAL ADVERTISEMENT PAGE NO 1 2

1.2

INDIAN SCENARIO OF INTERNET ADVERTISING

5 7 7 9 9 9 9 10 10 10 10 11 12 39 57 60 61

1.3 1.4 2.0 2.1 2.2 2.2.a 2.2.b 2.2.c 2.3 2.4 2.5 3.0 4.0 5.0 6.0

SIGNIFICANCE OF THE STUDY NEED/PURPOSE OF STUDY CHAPTER 2-RESEARCH METHDOLOGY OBJECTIVES OF THE STUDY DATA COLLECTION PRIMARY DATA COLLECTION SECONDARY DATA COLLECTION SAMPLING DATA PROCESSING AND ANALYSIS SCOPE OF THE STUDY LIMITATIONS CHAPTER 3-REVIEW OF LITERATURE CHAPTER 4 -DATA ANALYSIS &INTERPRETATION CHAPTER 5 -FINDINGS CHAPTER 6 - CONCLUSION BIBILOGRAPHY

APPENDIX

62

LIST OF TABLES/CHARTS
Table/Chart No: 1 2 Title of the table/charts Opinion on internet advertising Do you often click the links on advertising ads Internet ads are useful source of information about 3 product/services. Internet ads provide relevant product information at 4 the moment when I need it Product advertises through internet usually live up to 5 the promise quality of performances. 6 purchase decisions. 44 43 42 41 Page No: 39 40

Online ads are more appealing as attractive than 7 other type of advertisement. 8 Reading of web pages. 46 45

Two-way communication between marketers and 9 consumer. I can trust product advertise through internet. 10 48 47

11 12 13 14 15 16 17 18

Internet ads that target my specific interests or needs Internet ads that target my specific interests or needs. Product categories for internet advertising Purchase of product/services due to internet ads Misled by an internet advertisement Gender Classification Age Classification Occupation of Respondent

49 50 51 52 53 54 55 56

1. INTRODUCTION TO INTERNET ADVERTISING

The rapid developments of information technology has made it necessary for E Marketing and web Advertising to integrate with the fast developing global information infrastructure. In the Modern era of liberalization, Globalization and privatization many concerns are finding hard to sell their products in the local market and Global markets. This situation makes the organizations to spend huge amount of money on the advertisements for their stability and growth in the market. To keep pace with the developments in information technology Internet Advertising is fastly emerging as an important advertising media which has wide coverage and is accessed by customers spread all over the Globe. Internet Advertising refers to giving advertisements on websites, through e-mails, popup windows newsletters etc.

Internet advertising as a medium of advertising is very new to us as it has complete about 7 years till no was compared to Radio and TV as a Medium of advertisement which are 40 years and 15 years old respectively. The internet is growing at a tremendous speed in all the niches of the world as reflected by the figure of 1.4 million users which are added every month. According to an estimate, In India in the year 2000 the number of internet users was 3.1million and this figure is expected to touch 35 million marks by the year 2003.

Indian advertisement market which is of Rs. 45 million today is expected to be Rs.900 million by the end of the year 2006. So these figures show the potential of Internet advertisers and marketers. The internet is being used to bring about increase inefficiency in the existing business models all over the world areas like web services are expected to grow rapidly in India.

Good internet advertising serves the purpose of creating brand awareness, stimulating the internet to purchase the product in person or through online. As mentioned by the marketing gurus customer is the king and he is the person who decides the success or failure of the business. So without knowing the customers attitude, the marketers may not attain success. Marketers spend huge amount of money on advertisements. Generally people change the T.V. channel if any advertisement comes. So the whole of the cost goes waste. To confront this problem web advertising is the best media. So the study has been undertaken to know the attitude of consumer towards Internet advertising.

1.1 INTERNATIONAL SCENARIO OF INTERNATIONAL ADVERTISEMENT

The global advertising market reached $600 billion in 2007 and will grow at a compound annual growth rate (CAGR) of 2.7% to reach $707 billion in 2012, propelled in large part by growth in the interactive segment, according to a new report from The Kelsey Group.

Interactive Advertising Outlook - Interactive advertising revenues will increase significantly: from $45 billion in 2007 to $147 billion globally in 2012 - a 23.4% CAGR - according to The Kelsey Groups Annual Forecast (2007-2012): Outlook for Directional and Interactive Advertising.

Global forecast: Interactive advertising, which comprises search (including local search), display advertising, classifieds and other interactive ad products, grew its share of global advertising revenues from 6.1% in 2006 to 7.4% in 2007. By 2012, the interactive share of global ad spending will reach 21%, Kelsey Group analysts expect.

US forecast: During the forecast period (2007-2012), the US interactive advertising revenues are expected to grow from $22.5 billion to $62.4 billion (a 22.6% CAGR); interactive revenues in Canada are forecast to increase from $1.3 billion to $3.3 billion (21.3% CAGR). Directional Advertising Outlook: The Kelsey Group forecasts that directional advertising - comprising local search, print Yellow Pages and Internet Yellow Pages (IYP) - will grow from $33.3 billion in 2007 to $41.4 billion globally in 2012 (a 4.5% CAGR).

Global forecast: The global outlook for each of the three key segments of the directional media market during the forecast period (2007-2012): Local search revenues will grow from $2.1 billion to $6.6 billion (a 25.5% CAGR). Print Yellow Pages revenues will decline from $27.5 billion to $25.6 billion (a -1.4% CAGR). IYP revenues will grow from $3.7 billion to $9.2 billion (20.1% CAGR).

US forecast :During the forecast period (2007-2012), in the United States directional advertising revenues are expected to grow from $16.4 billion to $18.8 billion (a 2.8% CAGR), while directional revenues in Canada increase from $1.4 billion to $1.9 billion (a 5.8% CAGR).

Canada forecast: Canada is one of the markets in which The Kelsey Group expects growth in the print Yellow Pages segment, forecasting a 1.8% CAGR for print directories in Canada during the forecast period. Directory revenues are expected to decline in most global markets over the forecast period, though print will remain the most important source of leads for small businesses, said Charles Laughlin, SVP and program director, The Kelsey Report, and managing editor, The Kelsey Group. For directory publishers to succeed, they will need to invest time, energy and resources in both channels to minimize the decline in print and maximize the opportunity online.

1.2INDIAN SCENARIO OF INTERNET ADVERTISING

As more Indians go online, a boom in the Internet advertising industry is waiting in the wings with the digital medium poised to rule over all other media in the coming years, say experts. With over 49 million Internet users, the countrys advertising market online

is expected to surge to Rs1,100 corers this year registering a

growth rate ofalmos50%, estimates Internet giant Google. Due to its reach, impact and cost effectiveness, web advertising is fast becoming a preferred choice for most companies, cutting across segments. Keeping in view the rapid changes in

technology, the trend obviously is moving towards the digital media. It is an alarm for advertisers to explore this wide platform and reach specific target audiences. A boom in Internet advertising is just waiting to happen as connectivity improves with the wider use of broadband, Narasimha Jayakumar, Business Head, Google India said. With higher adaptability technological changes the growth of Internet is predominantly driven by youth, who also form a major chunk of the advertisers target segment. Pointing out to mature markets like the UK, where the market share of online advertising crossed that of print media advertising this year, Harish Bahl, CEO, online advertising agency Quasar Media, says the digital media is all set to rule in the coming years.There is no doubt that the digital media will reign supreme in the coming years. And that is why all large advertisers are making a beeline on the Internet, he says. Scoring over traditional medium, particularly the print and television, the digital medium offers various advantages like precision targeting, Measurable ROI (Return on Investment), low entry-level fee and global reach. Added to all this is the fact that this is the only medium that lets one build long term relationship with the consumer, get their feedback and talk to them at various stages across the consumer value chain, says Harminder Kaur, Chief Strategy Officer, Ignitee Digital Solutions, a Mumbai-based Internet marketing agency.

According to a study by the Internet and Mobile Association of India (IAMAI), education and automobiles are the only two sectors which seem to be making the most of the online advertising space.Online ad spending by educational institutions is expected to grow by 76% this year. Following this, automobile sector is expected to show the second highest growth rate of 46%, says the report Big corporate like Coca Cola, HUL, Pepsi, Hyundai and ICICI are already dedicating considerable advertising spends on the online medium. After YouTubes tie-up with IPL for live streaming of all cricket matches, mainstream advertisers like HSBC have also come on board. The new media is bringing about a revolution by merging the functionalities of customer end terminal devices like TV, PCs, mobile phones etc. The advent of 3G can fuel the convergence phenomenon by making the mobile phone a very handy tool for accessing video and audio formats, says a recent FICCI-KPMG report on the media and entertainment industry. However, online ad spending is estimated to constitute only about 3% of the total advertising spend in India. If we look at the sectoral view, online ad spending is much higher. For the travel and ecommerce sector, online spends are already more than 60% of all advertising spends. Also for the auto sector, advertiser spends on the online medium this year is expected to between 8 to 10%. says Google official. Marketers are also of the view that the Internet has evolved itself to be an independent medium and cannot be seen merely as a platform to raise awareness levels or supplement other forms of marketing activities.Internet advertising is already an independent medium and its importance is increasingly being realised by all marketers as we move towards adopting a 360 degree approach in marketing, says Jayakumar Subho Ray, president, IAMAI, however, says the Internet works best when complementing other media.No medium can be independent. But we feel that in any media planning, online should take the lead and other media planning should be based on that. Cross-media researches show how brand awareness and positive attitude towards brands have seen positive shifts when Internet is used to supplement other mass media

activity, says Ray. Industry experts say there are some Issues like low penetration level of Internet services and slow connectivity which act as hurdles in the growth of web advertising.Also, the industry also needs to come up with a credible measurement system for analysing online advertisement data, suggests Harish Bahl, Quasar Media.

1.3SIGNIFICANCE OF THE STUDY

 Online advertising is very effective tool used by the companies for going global.  Online advertising helps the consumer for decision making process.  is the strategy used by the marketers for educating about the product & It service for their target audience.  is suitable for technology or computer-related products, software, etc. It

1.4NEED/PURPOSE OF STUDY
The need of study has aroused by seeing the importance of internet. Previously people used to buy the products physically and barter system used to prevail everywhere. But now people have started using internet as a media for purchasing and also for advertising. It is the latest world of the companies, gold mine of the future and mother of all networks. Internet is a worldwide collection of thousands of interconnected computer networks, which is used by millions of people daily. It is one place where one can do anything and everything. One can meet people, make friends, learn, teach, buy, sell, watch preview of a movie, download the latest stock market report, even send and receive ones mail through E-mail. What one can do on internet is limitless, what internet can do for you is also limitless. The experts say that

the internet will soon be so universal, that we will take it for granted as we do the telephone today. The net will take computing to a new plane where information and computing resources from all over the world will be at your fingertips. Moreover, Most of todays marketing is moving from the market place into cyberspace. Demographics and lifestyles changes have transformed homogeneous mass market into personalized, one to one interactions. During the final decade of the 20 century, marketing became the cutting edge tool for success on the internet. Marketing continues to perform its function of bringing buyers and sellers together; it just does it faster and more efficiently than ever before. With just a few ticks of clocks and a few clicks of a mouse, the internet revolutionizes every aspect of life. With a computer, a virtual market place is open twenty four hours, seven days a week to provide almost everything anywhere to anyone. The internet provides new ways for consumers to learn about and acquire products and services online.

2. RESEARCH METHODOLOGY

2.1 OBJECTIVE OF THE STUDY

 To find out the degree of influence of online advertising on consumer purchasing decisions.  To obtain the consumer perspective on most effective product-services for online advertising  To determine the consumer attitude towards online advertisement.  To identify different forms of online advertisement.

2.2 DATA COLLECTION 2.2. a PRIMARY DATA COLLECTION

Experience surveys (through Questionnaires) I designed a questionnaire to know about the experiences of the consumers to get a better insight into their mindset about online advertising. It covered some of the basic points which come across our mind when we think of online advertising. We had a sample size of 80 and we got them administered in the following way

Personal contact:I personally contacted individuals and got the questionnaires filled up. Questionnaires were be used for collecting the primary data. Surveys will be conducted and the respective analysis will be done.

2.2. b SECONDARY DATA COLLECTION

Secondary data was collected from secondary sources from journals, magazines, market reports and online media. Secondary research was undertaken for the project as a summary or collection of existing data. As the problem was somewhat defined but to reach specific objectives secondary data analysis was also undertaken. The secondary sources include previous research reports, newspaper, magazine and journal content. The secondary information and data was required in the preliminary stages of research to determine what is known already and what new data are required.

2.2. c SAMPLING
The sampling plan required that a multi-page questionnaire be self-administered and emailed to selected sample of young consumers. The sample would mainly include college students and executives working in companies.

2.3 DATA PROCESSING AND ANALYSIS

For the analysis of the data, percentage analysis, mean analysis and standard deviation. Tables and graphs will be used for easy analysis and presentation of the data.

2.4 SCOPE OF THE STUDY

The study basically covers young consumer perspective towards online advertisements. It focus on analysing young consumer attitude towards online advertisements, the consumer perspective on most suitable advertisements for online

advertising and degree of influence of these advertisement on their purchasing decision.

2.5 LIMITATIONS
 The sample is only 90 respondents only. This may not be sufficient enough to generalize the findings of the study.  The study is limited to only young consumer perspectives.  Personal bias may come into picture while responding to the questionnaire.
 The study was conducted only in RAK city and therefore, several other

potential samples outside the city were neglected.

3. REVIEW OF LITERATURE
This chapter deals with the review of different studies and researches which directly or indirectly relate to the topic under study. In this chapter the review of various studies in the context of the research problem is given in concise Littlejohn, (1996) has analysed Uses and gratification theory focuses on the receiver of the message rather than the message itself. In mass communication, the theory gives individuals control over media choices and uses. It contends that audience members are discriminating media consumers and examines consumer behaviour based on individual experience. Media consumers are viewed as active users of content, not subjects being manipulated (as assumed under early theories of mass communication). The theory holds that how an audience member chooses to use a message is an intervening variable in the message effect

Prabhakaran, P. (1984) has analyzed the characteristics and advantages of internet advertising in India in his study is advertising worth in India, This media has low cost per thousand (CPM) readers, high flexibility and reach. The complex and lengthy messages can be easily advertised. The advantages include mass impact, mass converge, repetition, flexibility and prestige while the disadvantages include relinquishing control of advertising messages to the telecaster who can influence its impact. High mortality rates for ads are some evidence of public distrust.

Denison (1995) has given the specific objectives of web advertising. First is reminding the existing users because constant reminders through ads can enhance the company reputation and standing and play their part in commenting customer loyalty. Second is reminding constantly to the customers the product characteristics and advantages, providing the prospective customers about the new developments in the product.

Leckenby and Kim (1996) Analyzed the internet ad impact in non metropolitan markets and suggested that the internet was an important communication medium to non-metro audiences and non metro internet market is an extensive and of high economic quantity. Advertising exposure is high and advertising contents are widely read and persuasively effective. Two important implications from this study were first advertisers would be unwise to ignore the no metro internet audience which was of high quality and second the advertising should be designed in accordance with the perceived characteristics of media.

Kantor and Neuberth (1996) suggested that advertisers should provide qualified, targeted visitors to online businesses in order to achieve the highest market potential for their products and services. By employing custom, strategy combinations of interactive marketing services that integrate into any online or offline campaign, clients can connect to their target audience-providing enhanced branding and target customer acquisition costs. Work with marketers should be done to build valuable relationships with consumers. By leveraging experience and technology, clients will be benefited from increases in both traffic and conversation. Online marketing services should be tailored to be synergetic with each other, and effective to clients needs.

McDonald, S. (1997) is of the opinion that web advertising subsidizes the cost of producing Medias which provides the means to advertisers to teach the prospective buyers. He says that none of the existing media vehicle (internet, newspaper, magazines, TV) is the best as all of them have inherent advantages and disadvantages. The criteria to differentiate one media vehicle from the other are as follows:-Selectivity: the ability of the media to reach the particular audience, based

either on audience basic geographic location or unique traits. These may be demographic or psychographic in nature, Coverage: the nature of audience a media can reach. Coverage refers to the degree with which a media can penetrate a market hence internet is the best medium for coverage as it covers a large geographic region, Cost: cost refers to the charge imposed for buying a certain amount of time or space. In the relative sense what the medium yields in terms of audience quality and quantity and in terms of results obtained for the money spent. Internet is the best medium according to the cost as very less is charged.

Shapiro, AL. (1999) researched on the issue of, The Internet. The author says that Information Age gurus claims the internet will alleviate global poverty, empower individuals, revolutionize commerce, and spread the light of democracy to far corners of the globe- so long as governments keep their hands off. Think again. Without careful regulation, digital technology may devastate low income communities and eliminate personal privacy. And repressive regimes may harness the internet to increase their power over the people.

Gupta, P. (2000) Suggested that web was more effective at communicating an advertising message than any other form of media. The difference in communication effectiveness appears to be linked to the self-selective characteristics of web viewing, which regulates the amount of attention a person pays to advertising carried internet medium. He suggested that at extremely low use/purchase probabilities the effectiveness of web advertising approaches zero and the web becomes a more efficient choice of advertising media as the use/purchase probabilities increased the economies of reach.

Stewart, DW. And Zhao, Q. (2000) the authors examine the role of the internet in marketing in the context of business models that are economically viable. This examination raises questions regarding the degree to which internet is genuinely different and whether it will be a boon to consumers and investors. Economic necessity associated with the need to obtain and maintain profit streams suggests that internet markets will likely be more similar to that different from traditional markets. The authors challenge assumptions regarding the role of the internet in creating frictionless markets that benefit consumers and the role of personal information and privacy on the internet that are necessary conditions for potentially profitable business models.

Hansen, JV. (2001) researched on the internet commerce security and summarized that implementation and maintenance of IC controls is an issue of great importance that will grow in concern as more business applications move to the internet. These concerns will become more complex as software is implemented that facilitates alliance among businesses, where exchange of information is an important strategy. His paper has discussed some current IC control problems and has outlined and referenced some current models and approaches that may be useful.

Geyskens, I. et.al (2002) Using an event-study methodology, the authors assess the net impact of adding an internet channel on a firms stock market return, a measure of the change in expected future cash flows. The authors find that, on average, internet channel investments are positive net-present-value investments. The authors then identify firm, introduction strategy, and marketplace characteristics that influence the direction and magnitude of the stock market research. The results indicate that powerful firms with few direct channels are expected to achieve greater gains in financial performance than the less powerful firms with broader direct channel

offering. The authors also find that internet channel additions that are supported by more publicity are perceived as having a higher performance potential.

Pattern, DM. (2002) Theories of corporate social responsibility suggest that there ought to be a balance between what businesses takes from society and what it gives back in return. The study examined whether insurance firms themselves reflect this emphasis, or whether companies that are industry leaders with respect to web innovation for product marketing are also leaders in using the web for information disclosure. A study of web pages for 40 property and casualty firms showed that financial disclosure of social responsibility information on these pages was quite low, on average. Further, and importantly from a social balance perspective, the web innovators in terms of product marketing are not industry leaders in terms of information disclosure.

Shankar, V.et.al (2002) this study investigates the consumer welfare implications of observed price levels and price dispersion in electronic markets. Despite claims that electronic commerce lowers search costs dramatically, and therefore makes it easy for consumers to spot the best buy, empirical studies have found a substantial degree of price dispersion in electronic markets for consumer goods. The authors examine the consumer welfare implications of changes in the structure of electronic commerce markets employing comprehensive datasets on e-tailer prices and services collected from BizRate.com in November 2000 and2001. The authors find that price dispersion decreased substantially between these two periods, and that measured differences in e-tailer services bear little relation to e-tailer.

Afuah, A. (2003) His paper outlines models that can be used to explore the impact of the internet on firm boundaries. The model suggests that the emergence and diffusion of the internet will reduce boundary-determination costscomponent production, transaction, system production, and bureaucratic coordination costs-and thereby either shrink or expand firm boundary. Whether it shrinks or expands firm boundaries is a function of transaction and production cost determinants, the information dependence and tacit ness of value added activities, and organizational

technology. since the internet is an information technology, and most businesses have an information content, its impact on firm boundaries is only one of the many questions that researchers might explore.

Lim, KH.et.al (2004) The authors identified 2

national

culture

dimensions,

individualism-collectivism and uncertainty avoidance, and their interaction that influences internet shopping rates across a wide spectrum of countries. Together, these factors accounted for 14% of the explained variance (on top of the combined variance of 63% explained by national income level, educational level, economic growth rate, unemployment rate, and crime rate) in predicting internet shopping rates. For countries lower in uncertainty avoidance, individualist cultures show higher internet shopping rates than do collectivist cultures. Further the authors have discussed implications for national and internet firm level web design strategies.

3.2INTERNET ADVERTISING
With the rapid expansion of the internet and the explosive growth of the World Wide Web as a viable medium for communication and commerce, companies hoping to remain competitive into the next millennium are faced with having to rewrite the rules of marketing. The Web began a paradigm shift away from the passivity of TV/radio and its one way, firm- to- consumer model of information delivery to a many- to-many interchange between the companies and consumers. This represents a new interactive state in which consumers take control and have access to all companies and products, utilizing the vast resources of the web. The problem facing corporations today is that this shift to the web must be accompanied with a new marketing strategy. Old ways of advertising, merchandising and providing service no longer meet the needs of the ever-evolving internet consumer. The interactive features of the web enable people to personalize their experience by choosing for themselves among its huge array of content. It is against this overwhelming backdrop of information that todays Advertiser tries to find their customer and get the message to them. Internet advertisement has grown rapidly in a short span of time and is expected to command an even larger portion of advertisers media budgets within the next decade. Internet demographics are a marketer dreamnet users are young, well educated and earn high incomes. Web ad banners builds brand awareness and may be better at generating awareness than television or print advertisement. Advertisement seeks to disseminate information in order to affect a buyer- seller transaction. Internet advertisement differs from other mediums by enabling consumers to directly interact with the advertisement .a consumer can click with his or her mouse on the ad for more information or take the next step and purchase the product in the same online session. Internet advertisement also gives advertisers the opportunity to precisely target an audience, enabling them to deliver ads that are customized to each users particular interests and tastes.

3.3REASONS FOR INTERNET ADVERTSING

1. Television Audience are Migrating to the Net
The erosion of the network television audience during the 1980s and 1990s changed media plans forever. In the early 80s, television was simple to plan and buy with just three networks to consider. Then came cable, then fourth network entries: paramount and the WB. New choices continued to fragment traditional television viewing and advertising Ironic, isnt it, that just 40 years ago television was considered new media? And just 15 years ago cable wore the same badge. During their value to earn a spot on the media plan-the same position the internet finds itself in today. Does internet advertising belong on your media plan? This is the question everyone is asking. CEOs are asking their brand managers. Brand managers are asking their agency account managers are asking their media department. The answer most certainly is YES - regardless of the brand you manage or the category in which that brand competes. Look at the fact: budget soon followed this trend. Television recent history has demonstrated that media budgets ultimately are pragmatic. As audiences migrate, media plan follow, acknowledging that the ultimate goal of any brand is to reach the target audience effectively and efficiently. The exploding media landscape of the 90s-driven by increased TV audience fragmentation and webs popularity-have put this process into overdrive. Like the 80s and the early 90s, media planners are, again, adopting their plans to account for the ever-growing numbers of people spending increasing amounts of time online at the expense of other media. The first evidence of this audience migration appeared last summer in a Forrester research report. Researches asked PC users which activities they were giving up to spend more time on their computers. And, while 24% did admit giving up eating or sleeping to pound away on PC, that activity sacrificed by over three-quarter of the

respondents was television. Shortly after the Forrester findings were published, a study from The Georgia Institute of Technologys Graphic, visualization and Usability centre (GVU) was released. This study, conducted on the internet, asked user about the television viewing habits and what impact the net might have on them. Their finding indicated the distinct shift in media habits with almost 37% of despondence claiming that they use the web instead of watching TV on the daily basis. Earlier this year, MSNBC noted that the fact Nielsens February rating sweeps found one million.

Fewer U.S. household watching prime time televisions versus the same period last year. Simultaneously, Nielson and Commerce Net released their internet study,

reporting that the North American Online audience had doubled in past 18 months. Clearly the conclusions of these to studies are far from coincidence. Taken alone this migration of television viewing audience to the internet is particularly striking. This data is made even more impressive by the fact that internet users are remarkably upscale. So, not only are we witnessing a fundamental shift in media habits, the internet audience represents that hard-to-reach, well educated, high-income population most covered by marketers.

2. The Net is the Fastest Growing Medium in History

Internet advertising began in 1994, when the first banner ads were sold (hotwired, October 1994) and the first available web browser, Netscape Navigator 1.0, was released (November 1994). In recent study, Mary Meeker, managing director, Morgan Stanley, and her team of researchers closely examined the adoption rate of the Internet, contrasted to the three other major new media invented this century: radio, network television and cable TV. As a common metric, they examined the number

of years it took or will take for each media to reach 50 million U.S. users, with television, cable and radio included for historical context, the growth of the internet is nothing short of remarkable. Meeker estimates the Internet will capture 50 million users in just five years. It took TV 13 years and radio 38 years to reach their milestone.

3. Internet Demographics are a Marketers Dream

Every major research organization has studied the demographic condition of the Internet. While methodologies and approaches vary, the findings are consistent: Net users are young, well-educated and earn high incomes. And, increasingly, research shows that both men and women are using the net.

4. Web Ad Banners Build Brand Awareness and may be better at Generating Awareness than Television or Print Advertising
Since their first appearance on commercial Web pages, the value of banner ads has been debated. Many felt they were physically too small to offer much branding and some advertisers convinced themselves that click-through was the only metric by which to measure ad effectiveness. In fall 1996, Millard Brown International set out to test the Impact of banners on brand awareness, the first study of its kind. Millard browns objective was to measure the impact of a single ad banner exposure on brand awareness the findings were remarkable. Single exposure to Web banner generated greater awareness than a single exposure to a television or print ad. FORCE SCORE were used as means to evaluate the impact of the ad banners relative to other media. .Every new medium has had to prove its value to advertisers. Initially cable TV too had to fight to earn the respect of advertisers. Today it is a several billion

industry. Those of us in internet publishing realize that internet is no exception to this thing. All the above given facts in aggregate create an undeniable compelling case for advertisers today to include the internet in their media plans. As Lynn Upshaw, author of building brand identity noted that, the World Wide Web will be one of the strongest brand building tools available. Based on the facts, we couldnt agree more.

3.4HISTORY OF INTERNET ADVERTISING

1989 - Tim Berners-Lee invents the World Wide Web while working at CERN, the European Particle Physics Laboratory. April 1994 - Andresen and Clark start Netscape. October 1994 - Hotwired site launches with ads from AT&T, Sprint, MCI, Volvo, and others. Time-Warner launches Pathfinder with test ads from AT&T. Roy Schwedelson delivers a speech on the Information Superhighway at the Fall DMA conference in Toronto urging direct marketers to get involved. November 1994 CMPs TechWeb is launched with ads from AT&T, MCI, and Tandem Computers. Web Connect is designed based on a direct response marketing model. Roy Schwedelson and Jay Schwedelson return from COMDEX with initial concepts on a banner ad placement service. Web Connect advertising media kit is placed on the web detailing the program. January 1995 - Prodigy is the first commercial online service to offer Internet access to its subscribers. Vibe Online cuts deals with MCI, Saturn, Timex, Jim Beam and Air Walk for dollar amounts ranging from $20,000 to $60,000. February 1995 -Grey Interactive is awarded the Procter & Gamble account for handling web-based medias aggressively pitches advertisers on $1 million charter sponsorships of its future Web site and additional online properties.CBS Web site is launched. March 1995 - Yahoo!, a popular Web directory, transforms into a

commercial business. Modem Media is awarded the AT&T account for interactive media.

Web Connect signs up the "First 100" member sites to its advertising network: Home Education Resource Centre, Art Cellar Exchange, 'Vettes on the Net, Dale Carnegie Systems, Home Business Review, and others. Ragu is identified as one of the first packaged-good marketers to establish a presence on the Web. April 1995 - AT&T and Saturn take banner ads on Pathfinder at the cost of $30,000 per quarter. Internet Advertising Council meets to identify goals, objectives and membership guidelines for the newly-formed. June 1995 -Web Connect introduced to cataloguers at the summer Catalog Conference in Chicago. Over 60 business, consumer, and high-tech market categories from a base of over 500 member sites are offered. July 1995 Netscape and InfoSeek alter their pricing model to accommodate cost-per-thousand impressions. August 1995 - MSN online service is launched by Microsoft. Proctor & Gamble and Kraft register a combined 184 domain names to secure their brand names in cyberspace. Web Connect places banner ads for Encyclopaedia Britannica. September 1995 - ESPNET Sports Zone acquires eight advertisers to contracts totalling more than $1 million. October 1995 - In excess of 24 million adults in the U.S. and Canada have access to the internet. Poppe Tyson spins off its web ad sales unit as Double-Click. Whereas Web Connect took the path of traditional direct response marketing for Web ad sales, Double-click adopts the Cookie technology which tracks a user's activities on the Web. Roy Schwedelson, CEO of Worldata and founder of Web Connect, takes a strong position against the usage of Cookie technology based on protecting a user's privacy. January 1996 - Microsoft allocates and pays $200,000 for sponsorship of the Super bowl Web site. The New York Times makes its entry into cyberspace with ads from Toyota and Chemical Bank. Net Gravity introduced the Ad Server ad management system for Web sites. February 1996 - Focalink Communications introduces the Smart Banner media planning service. PointCast launches an innovative client-server application which delivers tailored content from the Web in the form of an animated screen saver.

April 1996 -Juno launches a free, ad-supported e-mail service. This is shortly followed by a similar service from Free mark Communications. The Wall Street Journal makes its entry into cyberspace. May 1996 - village nets six-digit in

advertising dollar commitments based on a corporate philosophy of humanizing cyberspace with targeted online communities. Market watch, a Web media planning tool, is introduced by FocaLink Communications. June 1996 - Web Connect creates and offers accurate measurement tools to advertisers. Private

URLs created to track Impression and Click-Through rates. New ad management technologies support animated GIF's, banner rotation, and CGI/Pearl scripting. July 1996 - An ad campaign featuring animated banners is launched by AT&T. As reported by Intelliquest, 35 million U.S. residents accessed the Internet or online services during a three month period. Web Connects family of participating member sites tops 1,000. August 1996 -Microsoft says its aggressive plans will position them as the largest Web advertiser. Privacy advocates heighten industry awareness on the invasiveness of the Cookie technology. The delivery of free content to users of Microsoft's Web browser is agreed upon by major sites. Poppe Tyson files for an IPO .September 1996 - GM expands its content to over 38,000 pages, making it one of the largest sites to market products. October 1996 - CASIE issues proposed Web ad banner guidelines. Prodigy Inc. takes the wraps off a long-anticipated Web-based version of its online service. November 1996 - ONSALE, the Internet auction house for refurbished personal computers, announces recorded monthly sales of $4 million. February 1998 - Hot Mail Corp. announces that registrations for its service have passed the 2 million mark. A proposal submitted by Bell Labs Information Science Research Center (RFC:2109) calling for new Cookie standards is under review by the Internet Engineering Task Force, a major step towards protecting a user's privacy. March 1998 - Yahoo! makes a minimum advertising commitment to Netscape of $25 million over two years. April 1998 - Time Inc New Media agrees to syndicate some Pathfinder content on the Web site for the AT&T WorldNet Service. Microsoft

Corp. announces it plans to purchase WEB network Inc. For $425 million.

3.5TYPES OF ADS
Banner Ads- Banner ads which account for about 50 percent of all online advertising revenue are paid placements of advertising on other sites that contain editorial material. A variation on the banner ad that you may encounter is the skyscraper, a tall, skinny banner ad that is a variation on the traditional top-of-thescreen rectangle. A feature of banner ads is that consumers not only see the ad but also can make a quick trip to the banner ads is not only to catch peoples attention but also to entice them to visit the marketers home page and stay for a while. Many high-traffic Web sites that provide information content have started to rely on advertisers to support their services. General consumer sites such as Yahoo! and Hotwired have banner advertisements as part of their revenue-generation scheme. A more targeted option is to place banner ads on sites that attract specific market niches. For example, a banner ad for running shoes would be placed on a site that offers information related to running. This option is emerging as a way for advertisers to focus more tightly on their target audiences. Currently, advertisers consider WWW users to be a focused segment of their own. However, as the Web continues to blossom, advertisers will begin to realize that, even across the entire Web, there are sites that draw specific subgroups of Web users. These niche users have particular interests that may represent important opportunities for the right marketer.

A pricing evaluation service for banner ads is offered by Interactive Traffic. The Interactive Traffic Index compares a sites advertising value based on traffic, placement and size of ads, ad rates, and evaluations of the sites quality.

There is currently wide debate about the value and even the future of banner ads. Banner ads represent over half of all advertising on the Internet, but they are also most reviled of all elements of online marketing. On the plus side, banner ads are accounting for the majority of all online spending by companies trying to use the Web as a part of their integrated brand promotion strategy. This, of course, accounts for most of the revenue of the pure online promotion organizations. In addition, a study of recall for banner ads shows that recall for a single ad banner exposure is about 12 percent, which compares favourably with the 10 percent recall for a single exposure to a television ad. On the negative side of the argument is that about 99.9 percent of all banner ads dont get clicked. And 49 percent of Web surfers dont even look at a banner ad while they surf, and in order to develop any brand recognition a consumer would have to be exposed to a banner ad 27 times - not a good combination of statistics. The current thinking is that most users of banner advertising will shift their Web spending from banners to strategic partnerships and sponsorships.

E-mail communication: It may be the Internets most advantageous application. Through e-mail, the Internet is the only mass medium capable of customizing a message for thousands or even millions of receivers. The message is delivered in a unique way, one at a time, which no other medium is capable of doing. E-mail advertising grew from about $164 million in advertising in 1999 to about $7 billion in 2005, with over 260 billion e-mail promotional messages being sent.12 The attitude toward e-mail advertising varies, of course, depending on whether people are spammed with unwanted e-mail or have signed up and given permission for e-mail to be delivered. When Web users agree to receive e-mails from organizations, this is called permission marketing. Some Web firms specialize in developing opt-in lists of Web users who have agreed to accept commercial e-mails.

The data on permission-based e-mailing versus spamming are compelling. Sixtysix percent of Web users who give their permission to have e-mail sent to them indicate that they are either eager or curious to read the e-mail. This compares to only 15 percent of Web users who receive e-mail through spamming. And e-mail advertisers are turning to some traditional message strategies such as hum or to make the e-mail messages more interesting. Through e-mail and electronic mailing lists, advertisers can encourage viral marketing. Viral marketing is the process of consumer marketing to consumers over the Internet through word of mouth transmitted through e-mails and electronic mailing lists. Hotmail is the king of viral marketing. Every email by every Hotmail subscriber used to conclude with the tagline Get your private, free e-mail at http://www.hotmail.com. That viral marketing program helped sign up 12 million subscribers, with 150,000 being added every day.

Unicast Ads - These ads pop-up and display something akin to a miniature television commercial. The consumer can then click on the ad to learn more about the product or make a purchase. So far, Unicast ads have proven very effective, and they are currently able to charge rates approaching what banner ads used to.

Sidebar Ads- Sidebar ads are another answer to the question, How does Internet advertising work? Also known as a skyscraper ad, these advertisements are positioned vertically on the computer screen. Because of their vertical positioning, sidebar ads can be much larger than standard banner ads. They also have more effectiveness than a banner ad because they cannot be scrolled off the screen. As long as the consumer is on the page, hell have to contend with the presence of the sidebar ad. The click-through rate is around 2 to 3 times greater than with traditional banner ads.

Blogging -Creating a blog is simple and free. Once your blog is live, youll be able to post content and direct readers back to your primary site. It remains to be seen whether or not blogging is a passing fad, but its certainly popular as of this writing.

Pop-Up Ads - When you visit a page, a pop-up ad is one which literally pops-up in another window. Most people hate these ads, as they immediately obscure what you were looking for. However, they have proven more successful than banner ads, usually making the advertiser 4 to 10 times more revenue.

Search Engine Submission - This is done by simply submitting your site to search engines. This works best with smaller search engines, and getting your site ranked can make a major difference in the number of visitors.

Search Engine Optimization - Essentially, the SEO strategy revolves around getting your website ranked as high as possible on search engines like Yahoo! and Google. The closer to the top you can get, the more likely that someone will visit your page. This higher ranking is usually accomplished by getting links from other sites and providing lots of unique content.

Text Links - These are simply links that a user can click on to visit another site. Often, the owners of two different sites will agree to swap links, meaning that both install a link to the others site. While the effectiveness may not be as great as paid advertising, it is a free way to gain more exposure.

Floating Ads - When investigating the question, How does Internet advertising work? we must also look at floating ads. When you visit a website, these ads will appear on the screen like a pop-up and then drift or float for anywhere from 5 to 30 seconds. Floating ads have been successful largely because they obstruct the users view and force him to pay attention. While it can be annoying for the consumer, the results simply cant be denied. On average, a floating ad will generate 30click-through for every 1,000 impressions. As a result, floating ads often charge as much as $30 per every 1000 impressions.

Streaming video and audio -Streaming video and audio is merely the process of inserting TV- and radio-like ads into music and video clips that marketers send to Web users as they visit content networks. The future of such ads will depend on the ability to deliver bandwidth to accommodate the transmission and consumer access to high-speed Internet connections. The advantage, aside from being more interesting than a banner or a pop-up, is that streaming audio and video can realize click-through rates of 3.5 percent - or hundreds of times greater than banner clickthrough.

Corporate home pages -A corporate home page is a Web site where a marketer provides current and potential customers with information about the firm in great detail. The best corporate home pages not only provide corporate and product information but also offer other content of interest to site visitors. The Saturn site (www.saturnbp.com) allows people to find out about the line of Saturn cars, pricing, specifications, and the closest dealers. This product oriented site also allows consumers to request brochures, communicate their comments and questions to the Saturn Corporation, and find a dealer when they are ready to make a purchase.

Virtual malls -A variation on the corporate Web site is a Web site placed inside the virtual mall. A virtual mall is a gateway to a group of Internet storefronts that provide access to mall sites by simply clicking on a category of the store. Mall visitors can be led directly to the corporate site. The advantage of malls for a marketer is the opportunity to attract browsers to its site, much as window shopping works in the physical world.

3.6MEASURING THE EFFECTIVENESS OF INTERNET ADVERTISING

The information a Web site typically gets when a user connects with a site is the IP address of the Internet site that is requesting the page, what page is requested, and the time of the request. This is the minimum amount of information available to a web site. If a site is an opt-in site and requires registration, then additional information (e.g. e-mail address, zip code, gender) is typically requested directly from the user. Attempts at registration have been largely rejected by consumers because of the privacy concern. Several terms, such as hits, click-throughs, pages, visits, users, and reach, are used in Web audience measurement. Hits represent the number of elements requested from a given page and consequently provide almost no indication of actual Web traffic. For instance, when the user requests a page with four graphical images, it counts as five hits. Thus by inflating the number of images, a site can quickly pull up its hit count. Thus, hits do not translate into the number of people visiting a site. Another measure of site effectiveness is the extent to which a site will motivate visitors to click through. Most analysts fell that the click-through number (and percentage) is the best measure of the effectiveness of banner advertising. If an ad is good enough to motivate a visitor to click on it and follow the link

to more information, then that is verification that the ad was viewed and was

motivating. Pages (or page views) are defined as the pages sent to the requesting site. However, if a download page occupies several screens, there is no indication that the requestor examined the entire page. Also, it doesnt tell you much about how many visitors it has: 100,000 page views in a week could be 10 people reading 10,000 pages, or 100,000 people reading one page, or any variation in between.

Visits are the number of occasions in which a user interacted with a certain site after a certain time has elapsed. Usually time is set to some standard time such as 30 minutes. If the user has not interacted with the site until after 30 minutes have passed, this would be counted as a new visit. Users are the number of different people visiting a site during a specified period of time. Besides the address, page, and time, a Web site can find out the referring link address. This allows the Web site to discover what links people are taking to the site. Thus, the site can analyze which links do in fact bring people to the site. This can be helpful in Internet advertising planning. The problem is that what is really counted are similar unique IP numbers. Many Internet service providers use a dynamic IP number, which is different every time a given user logs in through the service, so that you might show up as 30 different unique visitors to a site you visited daily for a month.

Log analysis software is measurement software that not only provides information on hits, pages, visits, and users, but also lets site track audience traffic within the site. A site could determine which pages are popular and expand on them. It is also possible to track the behaviour of people as they go through the site, thus providing inferential information on what people find appealing and unappealing. An example of this software is MaxInfos WebC, which allows marketers to track what information is viewed, when it is viewed, how often it is viewed, and where users go within a site. An advertiser can then modify the content and structure accordingly. It can help

marketers understand how buyers make purchase decisions in general. It still isnt possible, however, to know what people actually do with web site information. Yet there is no industry standard for measuring the effectiveness of one interactive ad placement over another. There also is no standard for comparing Internet with traditional media placements. Moreover, demographic information on who is using the WWW is severely limited to consumers who have signed up for opt-in programs and, for example, allow targeted e-mails to be sent to them. Until these limitations are overcome, many marketers will remain hesitant about spending substantial dollars for advertising on the World Wide Web.

3.7INTERNET MEASUREMENT AND PAYMENT

Internet marketers pay for ads in several ways but them all, in one way or another; depend on the measurement of the activity related to the Web site visits where the banner ads appear. Many pay in terms of impressions. Its supposed to mean the number of times a page with your ad on it is viewed; in reality these are roughly equivalent to hits, or opportunities to view. Often these are priced as flat fees - so many dollars for so many impressions. Others price with pay-per-click, which is in all reality the same as impressions. Others pay in click-through. The overall average for click-through for all Web advertising is an astoundingly low 0.1 percent. Thats one person out of a thousand who bothers to click on the banner ad to seek more information. These rates, down from about 2 percent, are driving prices down on banner as placement costs - as you might expect. Others will buy on cost per lead (documented business leads) or cost per actual sale (very rare). A net rate refers to the 15 percent discounted rate given to advertising agencies, although direct deals with portals and browsers are very common.

3.8THE FUTURE OF ADVERTISING AND THE INTERNET

When it comes to the Internet, talking about the future is usually futile. The future of the Internet and the advertising that gets placed there seems unavoidably linked to two types of technology: wireless communication and video. The AOL/Time Warner merger in 2001 signals the future direction for the Web and Web advertising. Time Warner brought to this merger all of its movie studio properties as well as emerging Internet movie business and digital delivery of Warner Bros movies on demand. Time Warner also has Time Warner cable television. What AOL brought to the merger, of course, was AOLs online services, including Netscape, CompuServe, MovieFone, Instant Messenger, and nearly 30 million subscribers. Together, AOL and Time Warner can offer speedier and more diverse Internet and interactive TV services using Time Warners cable lines. Mergers and partnerships of broadcast and Internet firms is one side of the story. On the other side,

advertisers and advertising agencies are preparing for new opportunities with broadcast Web. For example, Sears, Roebuck and Forbes are testing a new technology, TV watchers can click on an icon during a television program and be connected to Web sites pertaining to the nature of the programming - sports, Entertainment, news, and so forth. Not only does this technology merge the Net with television programming, but it can also provide advertisers with general demographic and preference data to its registered users without resorting to names or email addresses - the crux of the privacy concerns. In the words of one agency

executive, This will revolutionize advertising on the Web because it establishes accountability and connection. I know that every one of our clients that has been shown this technology has been blown away. And there may be good reasons to get excited. In an Arbitron Internet Information Services/Edison Media research study, streamies (the nickname for Webcast viewers and online radio listeners)

were twice as likely as general online users to click on banner ads or buy from a Web site, with 40 percent reporting that they had made a purchase online. Does this mean that in the near future every television ad is really a Web ad? Well, maybe it wont be that extreme, but the technology is available to provide direct links to Web sites for information and purchasing through television ads a huge opportunity and potential for advertisers. The possibilities are attracting all the big players - Microsoft, ABC, CBS, and Warner Brothers Online, to name just a few. They all see video streaming as another piece of this Web broadcast puzzle. Of course, this next step in the evolution of the Internet and its potential as an advertising alternative depends on the consumers willingness to allow the communication to occur. Some things never change.

The final issue regarding the future of the Web is the sort of revenue model that must evolve for the mere survival of most Web firms. Clearly, the advertising revenue model is not working. When the biggest and the best - Yahoo! and Amazon - are struggling, then clearly something has to change. The best bet is that more sites will demand payment. This seems like heresy for a medium that has been free (except for Connection charges). But there has to be revenue from somewhere, and the various forms of advertising revenue have not been sufficient.

Some sites are highly successful as pay sites. Consumer Reports is the most successful of the pay sites. At $24.95 per month, it has a long and successful history as a pay site. TheStreet.com has struggled, but it has survived as site that offers professional and often highly technical analysis of the stock market and individual securities. Yahoo! appears to most of us to be free, but there are actually sections of the portal that cost money or soon will, given the struggle Yahoo! has had to maintain sufficient revenue stream. The future of the Internet is certainly at the

crossroads, and the next five years will be telling with respect to the future of advertising and this medium.

3.9ADVANTAGE OF ONLINE ADVERTISEMENT

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 consumer market. Through personalization and other targeting techniques, sites are becoming more tailored to meet once need and want.

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. 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.

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.

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.

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.

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.

3.10DISADVANTAGE OF INTERNET
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 publication 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.

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.

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. 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 noted earlier, Levis for the cost of maintaining a site is considered "world-Class was prohibitive and one of the reason for abandoning its E-commerce efforts. 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. 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 percent of the site visited.

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.

4. DATA ANALYSIS & INTERPRETATION

Q1.What is your opinion on internet advertising?

TABLE: 1
Particular Extremely Useful Useful Somewhat Useful Not Useful Total No. Of respondent 18 54 16 2 90 Percentage 20 60 18 2 100

CHART: 1
Not useful 2%

Percentage

Some what useful 18%

Extremely useful 20%

Useful 60%

INTERPRETATION: The chart says that 60% of respondents feel that internet advertising is useful. Hence the marketers do need to take the advantage of this as they can reach a large amount of target audience as internet is becoming more and more popular medium.

Q2.Do you often click the links on advertising ads?

TABLE: 2
Particular Yes No Total No. Of respondent 24 66 90 Percentage 26.67 73.33 100

CHART: 2
Perecentage

No

73.33

Yes

26.67

10

20

30

40

50

60

70

80

INTERPRETATION: Majority of the respondents feels that they do not click on advertising links (73%) while they are accessing internet and followed by the yes (27%) on the scale.

Q3.Internet ads are useful source of information about product/services.

TABLE: 3
Particular Strongly agree Agree Neutral Strongly disagree Disagree Total No. Of respondent 12 44 34 0 0 90 Percentage 13.33 48.89 37.78 0 0 100

CHART: 3

Percentage
60 50 40 30 20 10 0 Strongly agree Agree Neutral Strongly disagree Disagree Strongly agree, 13.33 Strongly disagree, 0 Agree, 48.89 Neutral, 37.78

Disagree, 0

INTERPRETATION: From the chart its very clear that 48.89% of people thinks that internet ads are useful source of information and 37.78% have a neutral opinion , which if taken by marketer they can convert this neutral opinion to agree.

Q4.Internet ads provide relevant product information at the moment when I need it.
TABLE: 4
Particular Strongly agree Agree Neutral Strongly disagree Disagree Total No. Of respondent 6 44 34 6 0 90 Percentage 7 49 38 6 0 100

CHART: 4

Percentage
Strongly agree Agree Neutral Strongly disagree Disagree

7%

6%

38% 49%

INTERPRETATION: The perception about the people regarding the question Internet ads provide relevant
product information at the moment when I need it is very positive as we can see 49% of people agree to the above fact.

Q5.Product advertises through internet usually live up to the promise quality of performances.
TABLE: 5
Particular Strongly agree Agree Neutral Strongly disagree Disagree Total No. Of respondent 0 16 56 4 14 90 Percentage 0 17.78 62.22 4.44 15.56 100

CHART: 5
Percentage 70 62.22 60 50 40 30 20 10 0 0 Strongly agree Agree Neutral Strongly agree Disagree 17.78

15.56

4.44

INTERPRETATION: In the above graph 62.22% of the people have a neutral opinion regarding whether
the product advertised through internet usually live up to the promise quality of performances.

Q6.Online advertisement assists to make purchase decisions.

TABLE: 6
Particular Strongly agree Agree Neutral Strongly disagree Disagree Total No. Of respondent 2 32 44 6 6 90 Percentage 2 35 49 7 7 100

CHART: 6

Percentage
Strongly agree Agree Neutral 2% 7% 7% Strongly disagree Disagree

35%

49%

INTERPRETATION: In the above pie chart 49% of the people believe that online
advertisement assists to make purchase decisions.35% of the people believe that online advertisement assists to make purchase decisions.

Q7.Online ads are more appealing as attractive than other type of advertisement.
TABLE: 7
Particular Strongly agree Agree Neutral Strongly disagree Disagree Total No. Of respondent 16 28 26 10 10 90 Percentage 17.78 31.11 28.89 11.11 11.11 100

CHART: 7

Percentage
Percentage 31.11 28.89

17.78 11.11 11.11

Strongly agree

Agree

Neutral

Strongly disagree

Disagree

INTERPRETATION: In the above 31.11% of the respondents agree that online ads
are more appealing as attractive than other type of advertisement and 28.89% of people have a neutral opinion on this.

Q8.Internet ads interfere with my reading of web pages.

TABLE: 8
Particular Strongly agree Agree Neutral Strongly disagree Disagree Total No. Of respondent 20 44 12 4 10 90 Percentage 22. 49 13 5 11 100

CHART: 8

Percentage
Strongly agree Agree Neutral Strongly disagree Disagree

11% 5% 13% 22%

49%

INTERPRETATION: In the above chart 49% of the respondents believe that Internet ads interfere with my
reading of web pages.

Q9.Internet ads facilitate two-way communication between marketers and consumer.

TABLE: 9
Particular Strongly agree Agree Neutral Strongly disagree Disagree Total No. Of respondent 2 36 30 10 12 90 Percentage 2.22 40.06 33.33 11.11 13.33 100

CHART: 9

Percentage
45 Agree, 40.06 40 35 30 25 20 15 10 5 0 Strongly agree Agree Neutral Strongly disagree Disagree Strongly agree, 2.22 Strongly disagree, 11.11 Disagree, 13.33 Neutral, 33.33

INTERPRETATION: In the above 40.06% of the respondents agree that online ads are more appealing as
attractive than other type of advertisement and 33.33% of people have a neutral opinion on this.

Q10. I can trust product advertise through internet.

TABLE: 10
Particular Strongly agree Agree Neutral Strongly disagree Disagree Total No. Of respondent 0 22 40 8 20 90 Percentage 0 24 45 9 22 100

CHART: 10

Percentage

0% 22% 24% Strongly agree Agree Neutral 9% Strongly disagree Disagree 45%

INTERPRETATION: In the above 45% of the respondents neutral that online ads are more appealing as
attractive than other type of advertisement and 24% of people have a agree opinion on this.

Q11.Internet ads force to view unwanted commercial messages.

TABLE: 11
Particular Strongly agree Agree Neutral Strongly disagree Disagree Total No. Of respondent 12 34 18 8 18 90 Percentage 13.33 37.78 20 8.89 20 100

CHART: 11
Percentage 40 35 30 25 20 20 15 10 5 0 Strongly agree Agree Neutral Strongly disagree Disagree 13.33 8.89 20 37.78

INTERPRETATION: In the above 37.78% of the respondents agree that online ads are more appealing as
attractive than other type of advertisement and 20% of people have a neutral opinion on this. And also 20% disagreed.

Q12. I prefer internet ads that target my specific interests or needs.

TABLE: 12
Particular Strongly agree Agree Neutral Strongly disagree Disagree Total No. Of respondent 8 44 30 0 8 90 Percentage 8.89 48.89 33.33 0 8.89 100

CHART: 12
disagree, 8.89 Strongly disagree, 0 Strongly agree, 8.89

Neutral, 33.33 Agree, 48.89

INTERPRETATION: In the above 48.89% of the respondents agree that online ads are more appealing as
attractive than other type of advertisement and 33.33% of people have a neutral opinion on this.

Q13.How suitable is the following product categories for internet advertising?

TABLE: 13

Percentage

Movies Notsuitable Some what suitable Suitable Very suitable 2.22 6.67 44.44 46.67

Books 8.89 26.67 40 24.44

Electronics 4.44 20 33.33 42.22

FMCG 15.56 44.44 28.89 11.11

Home appliances 15.46 33.33 37.78 13.33

INTERPRETATION: The product which is suitable for the online advertising is movies and books. FMCG and home appliances are not the products which people feel are suitable for internet advertising.

Q14. Have you ever made any purchase of product/services due to internet ads?
TABLE: 14
Particular Yes No Total No. Of respondent 10 80 90 Percentage 11.11 88.89 100

CHART: 14
Yes No

88.89

11.11

INTERPRETATION: As we can see from the graph its very clear that internet ads are not effective in persuading the people to make them purchase as 88.89% of people says that they have not made any purchase of product/services due to internet ads.

Q15.How often has you felt misled by an internet advertisement?

TABLE: 15
Particular Often Sometimes Seldom Never Total No. Of respondent 4 50 24 12 90 Percentage 4.44 55.56 26.67 13.33 100

CHART: 15

13.33

26.67

55.56

4.44

10

20 Never Seldom

30 Sometimes

40 Often

50

60

INTERPRETATION: Majority of the respondents feels that they mislead by an internet advertising sometimes and followed by seldom, often and never on the scale.

Table showing Gender Classification: TABLE: 16

Gender Male Female Total No. Of respondent 57 33 90 Percentage 63 37 100

CHART: 16

Number of respondents

Female 37%

Male 63%

INTERPRETATION: As observed from the given table and Graph the sample constitutes of 67% male respondents and 33% female respondents. There is a quite a lot of difference between the number of males and females in the sample.

Table showing Age Classification: TABLE: 17

Age Group 15-25 25-40 40-50 50+ Total No. Of respondent 40 30 10 10 90 Percentage 45 33 11 11 100

CHART: 17

Age Group of Respondent

15-25 25-40 40-50 50+

11% 11% 45%

33%

INTERPRETATION: As it can be observed from the given table, the major portion of sample (45 %) is constituted of people in the age group between 15-25 years, and also a portion of sample i.e. (33 %) of respondent are in the age group between 25-40 years, (11%) of the respondent are in the age group below 40-50% years, and the rest (11%) of the respondent are in the age group of above 50+years.

Table showing the Occupation of Respondent: TABLE: 18

Occupation Student Employee Business Others Total No. Of respondent 50 25 10 5 90 Percentage 58 29 12 1 100

CHART: 18

Occupation of the respondent

Business 12% Others 1%

Employee 29%

Student 58%

INTERPRETATION: This shows that 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.

5. FINDINGS
 The chart says that 60% of respondents feel that internet advertising is useful. Hence the marketers do need to take the advantage of this as they can reach a large amount of target audience as internet is becoming more and more popular medium.

 Majority of the respondents feels that they do not click on advertising links (73%) while they are accessing internet and followed by the yes (27%) on the scale.  From the chart its very clear that 48.89% of people thinks that internet ads are useful source of information and 37.78% have a neutral opinion , which if taken by marketer they can convert this neutral opinion to agree.  The perception about the people regarding the question Internet ads provide relevant product information at the moment when I need it is very positive as we can see 49% of people agree to the above fact.  In the above graph 62.22% of the people have a neutral opinion regarding whether the product advertised through internet usually live up to the promise quality of performances.  In the above pie chart 49% of the people believe that online advertisement assists to make purchase decisions.35% of the people believe that online advertisement assists to make purchase decisions.  In the above 31.11% of the respondents agree that online ads are more appealing as attractive than other type of advertisement and 28.89% of people have a neutral opinion on this.

 In the above chart 49% of the respondents believe that Internet ads interfere with my reading of web pages.  In the above 40.06% of the respondents agree that online ads are more appealing as attractive than other type of advertisement and 33.33% of people have a neutral opinion on this.  In the above 45% of the respondents neutral that online ads are more appealing as attractive than other type of advertisement and 24% of people have a agree opinion on this.  In the above 37.78% of the respondents agree that online ads are more appealing as attractive than other type of advertisement and 20% of people have a neutral opinion on this. And also 20% disagreed.  In the above 48.89% of the respondents agree that online ads are more appealing as attractive than other type of advertisement and 33.33% of people have a neutral opinion on this.  The product which is suitable for the online advertising is movies and books. FMCG and home appliances are not the products which people feel are suitable for internet advertising.  As we can see from the graph its very clear that internet ads are not effective in persuading the people to make them purchase as 88.89% of people says that they have not made any purchase of product/services due to internet ads.  Majority of the respondents feels that they mislead by an internet advertising sometimes and followed by seldom, often and never on the scale.  As observed from the given table and Graph the sample constitutes of 67% male respondents and 33% female respondents. There is a quite a lot of difference between the number of males and females in the sample.

 As it can be observed from the given table, the major portion of sample (45 %) is constituted of people in the age group between 15-25 years, and also a portion of sample i.e. (33 %) of respondent are in the age group between 25-40 years, (11%) of the respondent are in the age group below 40-50% years, and the rest (11%) of the respondent are in the age group of above 50+years.

 This shows that 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.

6. CONCLUSION

In todays digital era marketers cannot neglect online media for advertising because strong competition from other place in the market. This study helps marketers understanding the preferences& attitude of the target market towards online advertising in my opinion marketers should take this as an opportunity perhaps not as threat .since it is most effective way of reaching todays target audience. 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 and more readers will actively seek out Internet advertising sites.

REFERENCE

 Drze, Xavier & Zufryden, Fred (1998). Is Internet Advertising ready For Prime Time? Journal of Advertising Research, 50, 348-373.  Schlosser, Ann E., Shavitt, Sharon, & Kanfer, Alaina (2000). Survey of Internet users attitudes toward Internet advertising. Journal of Interactive Marketing, 13, 34-54.  Philport, Joseph C. & Arbittier, Jerry (1997). Advertising: Brand

Communications Styles in Established Media and the Internet. Journal of Advertising Research, 37.  Drze, Xavier & Zufryden, Fred (1999). Is Internet Advertising: Is Anybody Watching? Journal of Advertising Research, 57, 60-79.  Cartellieri, Caroline, Parsons, Andrew J., Rao, Varsha, Zeisser, & Michael P. (1997). The Real Impact of Internet Advertising, 3.  Silk, Alvin J., Klein, Lisa R., & Berndt, Ernst R. (2001). The Emerging Position of the Internet as an Advertising Medium. Netnomics, 3, 129-148.  Gordon, Mary E. & Lima-Turner, Kathryn De (1997). Consumer attitudes towards Internet advertising: A social contract perspective. International Marketing Review, 14, 362-375.  Various Authors. (2005). Wikipedia, the free encyclopaedia: Online advertising, April 15, 2006, http://en.wikipedia.org/wiki/Online_advertising.  Schlosberg, Jeremy. Orbitz blitzes web with flight promotions. (2001, June 22). Media Life Magazine, online magazine, www.medialifemagazine.com.  http://e-articles.info/e/a/title/Online-advertising-opportunities/  http://www.sadangadword.com/#