Chapter I

Online Advertising: Advantages and Disadvantages

Introduction

Advertisements are full of implicit meanings (McQuarrie & Mick, 1999). According

to a study conducted by Toncar and Munch (2001), implicit meanings are significantly

influential when establishing relationships and creating advertisements. As far as

implicit meanings are concerned, print and Internet ads have common points. One of

these points is the consumer’s control over whether he pays attention to the ad or not.

In printed advertisements, a consumer’s control over ads is the intonation by which the

message is read (Lee, 2000). In Internet advertisements, a user clicks on pages or

information linked to the ad,and moves up and down on the website voluntarily. Both

traditional and Internet advertisements require active participation (Dahlen, 2002),

because it is the customer who decides about the length of exposure. However, the

major difference between these two advertising methods is that the Internet is a live

medium presenting more opportunities for interaction and more consumer motivators

(Coyle & Thorson, 2001). In this way, Internet advertising is can better associate

implicit meanings than traditional methods of advertising.

Advantages of Online Advertising

Online advertising is increasingly becoming the core channel for marketing activities
(Bergemann & Bonatti, 2011; Choi & Sayedi, 2019; Kireyev, Pauwels, & Gupta, 2016;
LiuThompkins, 2019; Sayedi, Jerath, & Baghaie, 2018). Online advertising refers to any
form of digital content available on the internet, delivered by any channel and
presented to inform the audience about a product or service at any degree of depth
(Ha, 2008; Harker, 2008; Tanyel et al., 2013; Truong & Simmons, 2010). Online
advertising spending worldwide amounts to about 333.25 billion US dollars in 2019,
more than a half from a total of 563.02 billion US dollars budget spent on all types of
advertising in the same year (Statista, 2019). It is expected to double in the next 10
years and will account for 52% of global advertising expenditure in 2021 (eMarketer,
2019; Statista, 2019). Recent developments in online information technology and
information systems enable companies to deliver more targeted and personally
customized ads quicker than traditional media (Guixeres et al., 2017; Roy, Datta, &
Basu, 2017). Hence, successful execution of online advertising campaigns can
potentially improve ad recall, brand recall and stimulate purchasing intention of existing
or potential consumers, increasing short- and long-term sales (Breuer & Brettel, 2012;
Edelman, Ostrovsky, & Schwarz, 2007; Guixeres et al., 2017). Google estimates that for
every $1 you spend on Google Ads, you'll earn back $2 in revenue. That's a 200% ROI
— not something to be sniffed at. (2) Targeted Campaigns Traditional media such as
flyers, television, billboards and direct mail offer no way to hone in on your target
market. Your budget is spent on showering your ad over as many people as possible, in
the hope a few will see your message and act. Online advertising gives us much more
control. Websites such as Facebook and Google can tell us who to target, based on
their profiles and search history. This allows us to target key messages specifically to
those people who are most likely to purchase. (3) Global Search If you have your eyes
on overseas markets or are launching an international e-commerce business, online
advertising is a must. Put your brand before millions of overseas customers without the
overheads of establishing international offices. Leverage the existing global reach of
platforms like Google and Facebook to tell customers all over the world that you are
open and ready for business. (4) Measurable Performance Online marketing is also a lot
easier to measure and quantify. Online analytics tools can help show what’s working for
you and what’s not, allowing further targeting of your marketing spend. They can also
provide priceless data on what your ideal customer looks like - allowing you to further
target your advertising to your most lucrative audiences. Few other avenues allow you
to continually hone and perfect your marketing strategy. (5) Instant Feedback & Trust
he internet, in particular social media websites such as Facebook, helps people connect
with their friends and family all over the world. It can also help you contact your
audience via many different platforms. Beyond paid advertising, organic engagement
like replying to comments on your Facebook page, tweeting about your products or
industry, and delivering great customer service via digital channels are all ways to make
people feel good about your company. Great customer service is one of the most
powerful advertising methods, and the internet is a very powerful tool to help your
business achieve this within every interaction. (6) Timely Delivery while traditional paid
advertising such as TVCs and print media can have long lead times, digital advertising
can be set live immediately. There's less capital required to launch online advertising
both in terms of money and time. This can be the difference between being seen as a
relevant, connected brand and being simply out of the loop. Publish email direct
marketing and social campaigns that relate directly to current events in a matter of
hours (or less, if your creative time is quick enough). For example, in the wake of
COVID-19, the importance of quick adaptive communication has proven itself.
Customers want to know your availability and if their service is affected at all, and
online advertising is the quickest, most efficient way to make that happen. (7) Keep
Your Customer Relationships Going Every customer is valuable. Digital marketing
automation makes it possible to stay in touch with these valued customers long after
they've made a purchase. Customers can be automatically sorted into relevant mailing
lists, directed into retargeting audiences and enticed to convert time and time again.
Beyond raw conversions, continuing your relationship with customers will help your
brand to stay relevant & trusted, and ideally become a household name.

Disadvantages of Online Advertising

According to Alex Newth (2022), Having an online presence is a necessity for

many businesses, but marketing that online presence has certain
disadvantages and downfalls that may persuade the business to use its
advertising budget on other marketing methods. One of the disadvantages of
online advertising is that many advertisements are seen as spam, and there are
blockers to protect against the ads. In addition, many websites have ads, so
customers experience advertising fatigue or blindness and may not see the
ad. Websites lack the first-hand experience that a store offers, which can lead
to high returns on sales stemming from online advertising. Disadvantages of
online advertising also spring up from the expense, and often low return, of
online ads.

Most users consider many of the online advertising vehicles, especially pop-
up and pop-under ads, to be spam. This causes several problems for the
business. With the ads being seen as spam, many users refuse to connect
with them and, instead, just think of them as irritating. Another problem is that
there are programs, often built into the Internet browser, that block these ads,
so the business may be paying for ads that customers never even see. These
disadvantages of online advertising may spill over into the business’s physical
presence because, if the ads are irritating enough, customers may associate
that irritation with the business.

In another response on context to internet ads it was concluded that

banner and pop up ads are both annoying and extensively intrusive in
nature. Banner ads are mostly noticed due to their relevancy and location on
the page and should include bright colors, interactivity, graphics , videos,
logos, sizes and discounts(Kozen Kavin,2006)In one of the research by Scott
Mcloy, Andrea Everard, Dennis Galleta, Peter Polak(2004) title „A study of the
effects of online advertising: A focus on Pop up and In-line ads‟ it was
concluded that pop up ads reduces a person‟s retention of both sites and ad
content more severely than in-line ads.

Conceptual Framework

Independent Variable

Dependent Variable

Statement of the Problem

This study will determine the viewpoint of BSCSM students towards the

Advantages and Disadvantages of Online Advertising. Specifically, this study will seek

answer to the following question:

1. What is the profile of respondents by variables?

2. What would be the advantages and disadvantages of the of online and offline

advertising?
 3. Is there significant difference in the viewpoint of BSCSM student between online

and offline advertising?

Results and Discussion

To determine the Online Advertising: Advantages and Disadvantages, respective means

scores and corresponding standard deviations were computed.

Table 1

Frequency Percent

Male 107 39.3

Female 165 60.7

Total 272 100.0

Gender

Year Level

Frequency Percent

1st Yr. 63 23.2

2nd Yr. 61 22.4

3rd Yr. 62 22.8

4th Yr. 86 31.6

Total 272 100.0

The participants of the study are 272 the Bachelor of Science in Cruiseship

Management students of JBLFMU – Molo. The participants are 1st year – 4th year

students from the following degree program.

Table 2

Advantages of Online Advertising of Students of JBLFMU – Molo

Mean SD Rank

[Comprehensive 4.15 0.66 1st

and easy to

understand]

[Online platforms 4.11 0.69 2nd

create

opportunities to

put the products in

front of potential

customers]

[Online 4.05 0.73 3rd

advertisement is

beneficial to
consumers

because it

provides important

information about

goods and

services]

[Makes the 4.02 0.77 4th

products

accessible to the

market]

[Convenient, and 4.00 0.73 5th

the promotion is

easy to know]

[Online advertising 3.98 0.75 6th

process can

provide excellent

sales]

[The 3.97 0.75 7th

advertisement

online arouses

customer’s interest

enough for them

 to buy the

product.]

[Creates 3.97 0.76 8th

awareness on the

product]

[Convenient to the 3.92 0.85 9th

consumers]

[Online advertising 3.84 0.87 10th

makes it easy to

reach the target

consumers.]

The data on table 2 revealed that among the Advantages of Online Advertising the

comprehensive and easy to understand is rank first with (M = 4.15, SD = 0.66) 2 nd is

the online platforms create opportunities to put the products in front of potential

customers (M= 4.11, SD =0.69) ; online advertisement is beneficial to consumers

because it provides important information about goods and services (M= 4.05, SD =

0.73) ; makes the products accessible to the market ( M = 4.02, SD = 0.77) ;

convenient and the promotion is easy to know (M= 4.00, SD = 0.73);

Disadvantages of Online advertising Students of JBLFMU - Molo

 Mean SD Rank

[Can lead 4.08 0.68 1st

consumers to

scammers]

[Viewing problems 3.96 0.73 2nd

can occur because

of problems with a

website or if a

consumer is using a

smartphone or

other mobile

device]

[Consumers are so 3.95 0.79 3rd

used to seeing

advertising through

offline

advertisement that

they developed

aversion]

[Advertisement can 3.93 0.76 4th

be seen as spam]

[Online advertising 3.91 0.79 5th

gives less

information about

the product]

[People become 3.90 0.78 6th

victims of online

advertising by

purchasing

unnecessary

product.]

[There will be a 3.90 0.79 6th

possibility that a

website downtime

will occur on online

advertisement.]

[Can invade 3.89 0.77 7th

consumers private

information]

[Sometimes the 3.89 0.79 7th

target market is not

reached through

online advertising]

[Online advertising 3.74 0.81 8th

 can be inconvenient

when there is a

system error]

The data revealed that among the disadvantages of online advertising rank first is it can

lead consumers to scammers ( M = 4.08, SD = 0.68) ; viewing problems can occur

because of problems with a website or if a consumer is using a smartphone or other

mobile device (M = 3.96, SD = 0.73) ; consumers are so used to seeing advertising

through offline advertisement that they developed aversion (M = 3.95, SD = 0.79) ;

advertisement can be seen as spam (M = 3.93, SD = 0.76) ; online advertising gives

less information about the product (M = 3.91, SD = 0.79)

Table 3

T-test result of Online Advertising: advantages and disadvantages of BSCSM student

point of view when categorize when categorized according to independent sample test.

Levene’s t- test for

test for equality

equality of means

of
 variances

Categories F sig T df sig. (2-

tailed)

[Comprehensiv Equal 2.098 0.149 -0.240 270 0.811

e and easy to variances

understand] assumed

[Online Equal 1.518 0.219 -0.326 270 0.745

platforms variances

create assumed

opportunities to

put the

products in

front of

potential

customers]

[Online Equal 1.201 0.274 0.299 270 0.765

advertisement variances

is beneficial to assumed

consumers

because it

provides

important
information

about goods

and services]

[Makes the Equal 1.865 0.173 -0.257 270 0.797

products variances

accessible to assumed

the market]

[Convenient, Equal 3.592 0.059 -0.831 270 0.407

and the variances

promotion is assumed

easy to know]

[Online Equal 0.161 0.689 1.521 270 0.129

advertising variances

process can assumed

provide

excellent sales]

[The Equal 0.114 0.736 0.507 270 0.613

advertisement variances

online arouses assumed

customer’s

interest enough

for them to buy

the product.]

[Creates Equal 1.565 0.212 0.577 270 0.564

awareness on variances

the product] assumed

[Convenient to Equal 0.885 0.348 0.426 270 0.670

the consumers] variances

assumed

[Online Equal 2.225 0.137 -0.431 270 0.667

advertising variances

makes it easy assumed

to reach the

target

consumers.]

[Can lead Equal 2.294 0.131 -1.291 270 0.198

consumers to variances

scammers] assumed

[Viewing Equal 0.158 0.691 0.317 270 0.752

problems can variances

occur because assumed

of problems

with a website

or if a
consumer is

using a

smartphone or

other mobile

device]

[Consumers are Equal 0.135 0.714 0.468 270 0.640

so used to variances

seeing assumed

advertising

through offline

advertisement

that they

developed

aversion]

[Advertisement Equal 0.262 0.609 -0.193 270 0.847

can be seen as variances

spam] assumed

[Online Equal 0.133 0.716 0.195 270 0.846

advertising variances

gives less assumed

information

about the
product]

[People become Equal 5.416 0.021 -0.760 204.065 0.448

victims of variances

online not

advertising by assumed

purchasing

unnecessary

product.]

[There will be a Equal 1.564 0.212 0.700 270 0.485

possibility that variances

a website assumed

downtime will

occur on online

advertisement.]

[Can invade Equal 1.925 0.166 0.972 270 0.332

consumers variances

private assumed

information]

[Sometimes the Equal 4.627 0.032 0.154 202.161 0.878

target market is variances

not reached not

through online assumed

 advertising]

[Online Equal 0.332 0.565 1.987 270 0.048

advertising can variances

be inconvenient assumed

when there is a

system error]

Table 3 shows no significant difference in Advantages of Online Advertising Statement 1

t(270) = -0.240, p=0.811, Statement 2 t(270) = -0.326, p= 0.745, Statement 3 t(270)

= 0.299, p=0.765, Statement 3 t(270) = -0.257, p=0.797, Statement 4 t(270) = -

0.831, p=0.407, Statement 5 t(270) = 1.521, p=0.129, Statement 6 t(270) = 0.507,

p=0.614, Statement 7 t(270)= 0.507, p=0.613, Statement 8

Table 4

One-way ANOVA Results on Online Advertising Advantage and Disadvantage: BSCSM

Students Point of View.

Advantages of Online Advertising

Sum of Mean

    Squares df Square F Sig.

a1 Betwee 17.733 3 5.911 8.375 0.000

Groups

  Within 189.150 268 0.706    

Groups

  Total 206.882 271      

a2 Betwee 8.597 3 2.866 7.012 0.000

Groups

  Within 109.521 268 0.409    

Groups

  Total 118.118 271      

a3 Betwee 9.996 3 3.332 4.826 0.003

Groups

  Within 185.059 268 0.691    

Groups

  Total 195.055 271      

a4 Betwee 7.002 3 2.334 4.590 0.004

Groups

  Within 136.277 268 0.508    

 Groups

  Total 143.279 271      

a5 Betwee 6.924 3 2.308 4.237 0.006

Groups

  Within 145.984 268 0.545    

Groups

  Total 152.908 271      

a6 Betwee 7.492 3 2.497 4.639 0.004

Groups

  Within 144.273 268 0.538    

Groups

  Total 151.765 271      

a7 Betwee 7.071 3 2.357 4.547 0.004

Groups

  Within 138.929 268 0.518    

Groups

  Total 146.000 271      

a8 Betwee 6.284 3 2.095 3.732 0.012

n
 Groups

  Within 150.418 268 0.561    

Groups

  Total 156.702 271      

a9 Betwee 7.820 3 2.607 4.594 0.004

Groups

  Within 152.048 268 0.567    

Groups

  Total 159.868 271      

a10 Betwee 3.472 3 1.157 2.453 0.064

Groups

  Within 126.436 268 0.472    

Groups

  Total 129.908 271      

Disadvantages of Online Advertising

Sum of Mean

    Squares df Square F Sig.

Between

d1 Groups 19.347 3 6.449 10.759 0.000

d2 Within 160.638 268 0.599    

 Groups

d3 Total 179.985 271      

Between

d4 Groups 7.538 3 2.513 5.714 0.001

Within

d5 Groups 117.841 268 0.440    

d6 Total 125.379 271      

Between

d7 Groups 14.620 3 4.873 9.203 0.000

Within

d8 Groups 141.910 268 0.530    

d9 Total 156.529 271      

Between

d10 Groups 10.764 3 3.588 6.414 0.000

Within

d11 Groups 149.927 268 0.559    

d12 Total 160.691 271      

Between

d13 Groups 5.325 3 1.775 2.969 0.032

Within

d14 Groups 160.190 268 0.598    

d15 Total 165.515 271      

 Between

d16 Groups 14.852 3 4.951 8.601 0.000

Within

d17 Groups 154.265 268 0.576    

d18 Total 169.118 271      

Between

d7 Groups 7.250 3 2.417 4.032 0.008

Within

  Groups 160.632 268 0.599    

  Total 167.882 271      

Between

d8 Groups 9.936 3 3.312 5.564 0.001

Within

  Groups 159.531 268 0.595    

  Total 169.467 271      

Between

d9 Groups 5.028 3 1.676 3.240 0.023

Within

  Groups 138.605 268 0.517    

  Total 143.632 271      

Between

d10 Groups 7.893 3 2.631 4.424 0.005

 Within

  Groups 159.386 268 0.595    

  Total 167.279 271