Dissertation Report 'Consumer Behavior Towards Online Advertisement' - Rafat Jamil Siddique (9137)
Dissertation Report 'Consumer Behavior Towards Online Advertisement' - Rafat Jamil Siddique (9137)
Dissertation Report 'Consumer Behavior Towards Online Advertisement' - Rafat Jamil Siddique (9137)
PGPBM/MBA
This is to certify that the project report titled CONSUMER BEHAVIOR TOWARDS ONLINE ADVERTISEMENT carried out by Rafat Jamil Siddique has been accomplished under my guidance & supervision as a duly registered PGPBM/MBA student of the Kohinoor Business School, Khandala. This project is being submitted by him in the partial fulfillment of the requirements for the award of the Post Graduation Program in Business Management (PGPBM) from Kohinoor Business School, Khandala.
His dissertation represents his original work and is worthy of consideration for the award of the degree of Post Graduation Program in Business Management (PGPBM).
DECLARATION
I, Rafat Jamil Siddique, hereby declare that the work presented herein is genuine work done originally by me and has not been published or submitted elsewhere for the requirement of a degree programme. Any literature, data or works done by others and cited within this dissertation has been given due acknowledgement and listed in the reference section.
Date:
ACKNOWLEDGEMENT
Pursuing Post Graduation Program in Business Management (PGPBM) degree is like dream coming true. The Final Research Project, which is there in the course, is very helpful in providing the practical exposure to the students. I have done my project on the topic .Consumer Behavior towards Online Advertising.
I would like to use this opportunity in expressing my deepest gratitude to all those, who in one way or other helped me in making endeavors a success. Words are not sufficient to reflect my thankfulness and respect towards those persons for their significant contribution in the completion of my report.
I give my profound thanks, as I cherish these inspiring ideas; constant encouragement and earnest interest shown by my Project In charge Prof Jayaseelan, Kohinoor Business School and his valuable suggestions and moral support during the preparation of this report.
I would also like to take the opportunity to thank the professionals and Businessmen, who devoted their precious time for providing their valuable opinions on the topic.
I appreciate the encouragement render by my friends. I am grateful to my friends who have rendered freely their time to make my efforts visible and consummate. I am indeed very thankful to all of them.
Table of Contents
S. No. 1 Particulars Introduction 1.1 Online Advertisement 1.2 Competitive Advantage Over Traditional Advertising 1.3 Types of Online Advertising 1.4 Ad Server Market Structure 1.5 Market Share of Ad Serving Martket 1.6 Revenue Model 1.7 Consumers buying process Literature Review 2.1 Changing trends of online advertising 2.2 Technology that will drive the future 2.3 Latest Trends in Online Advertising Objective Research Methodology 4.1 Research Design 4.2 Research Approaches 4.3 Data Source State of the Art 5.1 Effectiveness of Internet Advertising 5.2 Online advertising 'affects consumer behaviour' 5.3 Few facts about online shopping 5.4 Perception of customers toward online advertising 5.5 Case Study 5.6 State of Online Display Advertising in India 5.7 Online Shopping in India 5.8 Factors that boost online shopping in India 6 Conclusion/Findings References and Bibliography 26 27 Page No. 6
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1.0 INTRODUCTION
1.1 Online Advertisement
Online advertising is a form of promotion that uses the Internet and World Wide Web for the expressed purpose of delivering marketing messages to attract customers. Examples of online advertising include contextual ads on search engine results pages, banner ads, Rich Media Ads, Social network advertising, interstitial ads, online classified advertising, advertising networks and e-mail marketing, including e-mail spam.
Behavioral Targeting In addition to contextual targeting, online advertising can be targeted based on a user's past clickstream. For example, if a user is known to have recently visited a number of automotive shopping / comparison sites based on clickstream analysis enabled by cookies stored on the user's computer, that user can then be served auto-related ads when they visit other, non-automotive sites.
Semantic Advertising Semantic advertising applies semantic analysis techniques to web pages. The process is meant to accurately interpret and classify the meaning and/or main subject of the page and then populate it with targeted advertising spots. By closely linking content to advertising, it is assumed that the viewer will be more likely to show an interest (i.e., through engagement) in the advertised product or service
Vendor Google DoubleClick (Google) Yahoo! AOL MSN (Microsoft) Adbrite Total
Source: http://www.sfnblog.com/advertising/2010/05/report_yahoo_drops_share_in_adserving_m.php
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Problem identification, information search, selection of alternative, purchase decision and post purchase decision.
Figure 1.7.1 TAM Model The TAM has been used both in its original form and in a form variously modified for use specifically in the study of online shopping behaviour. Dishaw and Strong (1999) combined the TAM with the Task-Technology Fit model (TTF), which states that technology will be more likely to be used, the closer it supports ('fits') the activities of the user.
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2. Virtual Communities The plethora of social networking communities have started acting as a paradise for online advertisers because these communities bridge the distances between old friends, bring together people with same interests etc. People keep on coming back to these sites and therein the advertiser extends the scope of its services and generates revenue. 3. Spreading the word This is purely intentional in nature and is deliberately done to increase the target audience. This is also termed as Viral Marketing and occurs through word of mouth which results in a buzz being created about the ad. The first step in advertising i.e. attracting your audience takes place through this and then after the chances of a sale increase significantly. 4. Ad Customization The biggies in this space will soon implement this personalization of ad concept to specific users. Extensive data analytics can reveal the details about a prospective user and thus the advertiser can customize its ad services keeping in mind the users needs, wants and desires. In early 2008, Julie Ruvolo wrote, Some of the trends in Online Advertising that people talked about were (a) Content versus community ad-targeting emerging as a major debate (b). The gap widening between the proportion of people online, and the proportion of ad dollars spent online. These concerns are very genuine and our national advertisers should be able to address this issue beforehand so that it does not become a problem for the parties involed. For sure, Online Advertising is here to say and can only grow big. It is also expected to change its way to reach the masses as it has done thrice over the last two decades.
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Indians are also Shopaholics like other Asians. There is a strong booming young adult population in India with good levels of disposable income.
Are people receptive to Online Advertising? At first glance, it might appear that they are not receptive
But in reality, people are responsive to Online ads.
An overwherlming majority of people are willing to share their email address But people are reluctant to share social media information online
Figure 5.4.1 Response of respondents towads Online Advertising And this reluctance to share social media information is consistent across all age groups. Not more than 15% of the total population using the internet provided the social media information across. Its been found from the research, that E-Mail is the Key to building trust. i.e. from the
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brand/company that we hear from often and which offers personalized deals or information is more trust worthy.
Building a relationship in the social networking space is not very different from building a relationship in the real world. Once marketers have built relationship and trust through e-mail, they then engage consumers in relevant ways on social networking sites -Zephrin Lasker, CEO & Co-founder, Pontiflex
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Process through which Huggies deployed a Social Marketing Campaign Step 1: Collect E-Mail Address Consumer signed up for HUGGIES newsletter Step 2: Send weekly mails Weekly mails with relevant contents Step 3: Engage via Social Networks Pregnancy Countdown Widget Step 1 Step 2
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Step 3
Figure 5.5.2 Pregnancy Countdown Widget Results ROI increased by 50% Elevated Brand Awareness 1000+ Viral Downloads
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streak. However, it has a long way to go to become viable for all the parties and it is too early to rejoice on the growth percentages.
Source: 07. Jan, 2010 by Search marketer in Internet India
Figure 5.7.1 Growth of Indian Online Transaction Source-Scribd If we observe the growth of Indian online transactions from the above graph, it is getting doubled year by year. The usage of internet in India is only 4% of the total population. This is also getting increased day by day as the costs of computers are decreasing and net penetration is increasing. The cost of internet usage is also getting lower, with good competition among the providers. With the increase of latest technology such as Wi-Fi & Wimax the usage goes more on wireless internet. Indians are proving everytime that they can beat the world when it comes to figures of online shopping. More and more Indians are going to online shopping and the frequency of Indias online buying is crossing the overall global averages.
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5.8 FACTORS THAT BOOST ONLINE SHOPPING IN INDIA Rapid growth of cybercafs across India Access to Information The increase in number of computer users and GPRS Introduction of 2G and 3G enabled services Reach to net services through broadband
Middle-class population with spending power is growing. There are about 200 million of middle-class population good spending powers. These people have very little time to spend for shopping. Many of them have started to depend on internet to satisfy their shopping desires.
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6.0 Conclusion/Findings
Our project research is in regard to study the consumer behavior towards the online advertisement. Through the secondary research and analyzing the data and theories through different secondary sources such as Articles, Internet, Blogs etc we found that :Almost all the groups under demographics are daily user of the internet with the emergence of technology and its availability With reference to the study, most of the user belongs to the office people and professionals It is found from the survey, that almost all the users of internet observes or watch the online advertisement. Maximun online purchases is for the books, music , healthcare and matrimonial. Almost 68% people think that it is a secure source of shopping. Out of these we found that almost 52% are satisfied from the online advertisements and online shopping. Maximun people go for online shopping nowdays because they think that it is much convenient and faster way for shopping. A strong group of people feel that online advertisement is good promotional tool for awareness of the global brands and local brands also. Thus they think that online advertisement should be more promoted. Thus as per our study we found that online advertisement is good and trustworthy and a convenient tool for promotion as well as shopping in this modern era. Thus companies are putting more emphasis on online shopping as the cost per exposure is much less for these advertisements. Also various tie ups with the social networking sites are enhanced as online advertisement regarded as much effective promotional tool.
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