Professional Documents
Culture Documents
Nikhil Black Book
Nikhil Black Book
“ONLINE ADVERTISING
VS TRADITIONAL
ADVERTISING”
UNIVERSITY OF MUMBAI
SUBMITTED TO
“JES COLLEGE OF COMMERCE SCIENCE & IT”
SUBMITTED BY
MR. NIKHIL PAWAR
This is to certify that Mr. Nikhil pawar has worked and duly
completed his project Work for the Degree of Bachelor of,
Management studies and her/his project is entitled, “Online
Advertising vs Traditional Advertising” under my supervision. I
further certify that the entire work has been done by the learner
under my guidance and that no part of it has been submitted
previously for any Degree or any University.
It is his own work and facts reported by his personal findings
and investigations.
Date:
Place: Mumbai
Declaration
Signature
Date:
Place: Mumbai
Acknowledgement
To list who all have helped me is difficult because they are so Numerous and
the depth is so enormous.
I take this opportunity to thank the University of Mumbai for giving me chance
to do the project.
Lastly, I would like to thank each and every person who directly helped me in
the completion of the project especially my Parents and Peers who supported
me throughout my project.
Abstract
Internet advertising is the practice of delivering promotional content to users through
various online and online channels. It leverages mediums such as social media, email,
search engines, mobile apps, affiliate programs and websites to show advertisements
and messages to audiences.
Internet advertising has grown rapidly in the last decade. It now accounts for
almost a seventh of all advertising spending and contributes to the preponderance of
revenues for most websites. It is projected to increase sharply as more consumers
spend time online on their personal computers and as additional devices such as
mobile phones and televisions are connected to the web.
Traditional advertising is what most people think of when talking about advertising or
advertising. This includes the “usual” venues for media placement, such as newspaper,
radio, broadcast television, cable television, or outdoor billboards.
Typical collateral materials needed for your business – like stationery, business cards,
or brochures – would also fall under traditional advertising. These are the products
that people normally expect from an established business, and are useful for building
your business’ brand, identity, and image.
1
Table of content
Chapter I Introduction 3
Bibliography 76
Appendix 78
2
Chapter I
Introduction
3
Introduction:
Online advertising
Online advertising is an emerging form of advertising which has grown with the rapid
development of Internet and gradually becoming one of the most important advertising media. Berthon
a, Pitt and Watson (1996) mention Internet as a virtual place where consumers interact with different
advertisers. From Internet, advertisers can sustain and enhance the relationship with customers who
come from worldwide, and “represent a remarkable new opportunity for businesses to communicate
with new and existing markets in a very integrated way.”
According to Smith and Chaffey (2005), online advertising is “the use of a company web site in
conjunction with online promotional techniques such as search engines, banner advertising, direct e-
mail and links or services from other web sites to acquire new customers and provide services to
existing customer.” Online advertising can be one-to-many or many-to-many model. Compared with
traditional advertising, online advertising has the benefit of being interactive. Through this medium
consumer are not passive recipients anymore, they become the partners of the advertiser. If they get
interested in online advertising, they will read the advertisement carefully, click on the advertisement,
move on to advertiser's website, and get more information about the product, and even place the order
online. Therefore, online advertising is better referred to as logical and convincing advertising.
Internet advertising, also known as online advertising, Internet advertising, online advertising or web
advertising, is a form of advertising and advertising which uses the Internet to promote products and
services to audiences and platform users. Online advertising includes email advertising, search engine
advertising (SEM), social media advertising, many types of display advertising (including web
banner advertising), and mobile advertising. Advertisements are increasingly being delivered via
automated software systems operating across multiple websites, media services and platforms, known
as programmatic advertising.
Like other advertising media, online advertising frequently involves a publisher, who integrates
advertisements into its online content, and an advertiser, who provides the advertisements to be
displayed on the publisher's content. Other potential participants include advertising agencies who
help generate and place the ad copy, an ad server which technologically delivers the ad and tracks
statistics, and advertising affiliates who do independent promotional work for the advertiser.
4
In 2016, Internet advertising revenues in the United States surpassed those of cable
television and broadcast television. In 2017, Internet advertising revenues in the United States totalled
$83.0 billion, a 14% increase over the $72.50 billion in revenues in 2016. And research estimates from
2019's online advertising spend puts it at $125.2 billion in the United States, some $54.8 billion higher
than the spend on television ($70.4 billion).
Many common online advertising practices are controversial and, as a result, have been increasingly
subject to regulation. Many internet users also find online advertising disruptive and have increasingly
turned to ad blocking for a variety of reasons. Online ad revenues also may not adequately replace
other publishers' revenue streams. Declining ad revenue has led some publishers to place their content
behind paywalls.
5
HISTROY OF ONLINE ADVERTISING:
In early days of the Internet, online advertising was mostly prohibited. For example, two of the
predecessor networks to the Internet, ARPANET and NSFNet, had "acceptable use policies" that
banned network "use for commercial activities by for-profit institutions". The NSFNet began phasing
out its commercial use ban in 1991.
The first widely publicized example of online advertising was conducted via electronic mail. On
3 May 1978, a marketer from DEC (Online Equipment Corporation), Gary Thuerk, sent an email to
most of the ARPANET's American west coast users, advertising an open house for a new model of a
DEC computer. Despite the prevailing acceptable use policies, electronic mail advertising rapidly
expanded and eventually became known as "spam."
The first known large-scale non-commercial spam message was sent on 18 January 1994 by
an Andrews University system administrator, by cross-posting a religious message to
all USENET newsgroups. In January 1994 Mark Eberra started the first email advertising company
for opt in email list under the domain Insideconnect.com. He also started the Direct Email Advertising
Association to help stop unwanted email and prevent spam.
Four months later, Laurence Canter and Martha Siegel, partners in a law firm, broadly promoted their
legal services in a USENET posting titled "Green Card Lottery – Final One?" Canter and Siegel's
Green Card USENET spam raised the profile of online advertising, stimulating widespread interest in
advertising via both Usenet and traditional email. More recently, spam has evolved into a more
industrial operation, where spammers use armies of virus-infected computers (botnets) to send spam
remotely.
6
DISPLAY ADS
Online banner advertising began in the early 1990s as page owners sought additional revenue
streams to support their content. Commercial online service Prodigy displayed banners at the bottom
of the screen to promote Sears products. The first clickable web ad was sold by Global Network
Navigator in 1993 to a Silicon Valley law firm. In 1994, web banner advertising became mainstream
when hotwired, the online component of Wired Magazine, and Time Warner's Pathfinder (website)
sold banner ads to AT&T and other companies.
The first AT&T ad on Hotwired had a 44% click-through rate, and instead of directing clickers to
AT&T's website, the ad linked to an online tour of seven of the world's most acclaimed art museums.
7
SEARCH ADS
GoTo.com
(renamed Overture in 2001,
and acquired by Yahoo! in
2003) created the first search
advertising keyword auction
in 1998. Google launched its
"AdWords" (now renamed
Google Ads) search advertising program in 2000 and introduced quality-based ranking allocation in
2002, which sorts search advertisements by a combination of bid price and searchers' likeliness to click
on the ads.
RECENT TRENDS
More recently, companies have sought to merge their advertising messages into editorial
content or valuable services. Examples include Red Bull's Red Bull Media House streaming Felix
Baumgartner's jump from space online, Coca-Cola's online magazines, and Nike's free applications for
performance tracking. Advertisers are also embracing social media and mobile advertising; mobile ad
spending has grown 90% each year from 2010 to 2013.
According to Ad Age Datacentre analysis, in 2017 over half of agency revenue came from online
work.
8
TYPES OF ONLINE ADVERTISING
DISPLAY ADVERTISING
Display advertising conveys its advertising message visually using text, logos, animations,
videos, photographs, or other graphics. Display advertising is ubiquitous across online systems
including websites, search engines, social media platforms, mobile applications and email. Google and
Facebook dominate online display advertising, which has become highly concentrated market, with
estimates that they were responsible for 70% of overall US online advertising revenue in 2016. The
goal of display advertising is to obtain more traffic, clicks, or popularity for the advertising brand or
organization. Display advertisers frequently target users with particular traits to increase the ads'
effect.
Web banners or banner ads typically are graphical ads displayed within a web page. Many
banner ads are delivered by a central ad server.
Banner ads can use rich media to incorporate video, audio, animations, buttons, forms, or other
interactive elements using Java applets, HTML5, Adobe Flash, and other programs. Frame ads were
the first form of web banners. The colloquial usage of "banner ads" often refers to traditional frame
ads. Website publishers incorporate frame ads by setting aside a particular space on the web page.
The Interactive Advertising Bureau's Ad Unit Guidelines proposes standardized pixel dimensions for
ad units.
A pop-up ad is displayed in a new web browser window that opens above a website visitor's
initial browser window. A pop-under ad opens a new browser window under a website visitor's initial
browser window. Pop-under ads and similar technologies are now advised against by online authorities
such as Google, who state that they "do not condone this practice".
9
FLOATING AD:
A floating ad, or overlay ad, is a type of rich media advertisement that appears superimposed
over the requested website's content. Floating ads may disappear or become less obtrusive after a pre-
set time period.
EXPANDING AD:
An expanding ad is a rich media frame ad that changes dimensions upon a predefined condition,
such as a present amount of time a visitor spends on a webpage, the user's click on the ad, or the user's
mouse movement over the ad. Expanding ads allow advertisers to fit more information into a restricted
ad space.
TRICK BANNERS:
A trick banner is a banner ad where the ad copy imitates some screen element users commonly
encounter, such as an operating system message or popular application message, to induce ad
clicks. Trick banners typically do not mention the advertiser in the initial ad, and thus they are a form
of bait-and-switch. Trick banners commonly attract a higher-than-average click-through rate, but
tricked users may resent the advertiser for deceiving them.
"News Feed Ads", also called "Sponsored Stories", "Boosted Posts", typically exist on social
media platforms that offer a steady stream of information updates ("news feed") in regulated formats
(i.e., in similar sized small boxes with a uniform style). Those advertisements are intertwined with
non-promoted news that the users are reading through. Those advertisements can be of any content,
such as promoting a website, a fan page, an app, or a product.
Some examples are: Facebook's "Sponsored Stories", LinkedIn's "Sponsored Updates", and Twitter's
"Promoted Tweets".
10
This display ads format falls into its own category because unlike banner ads which are quite
distinguishable, News Feed Ads' format blends well into non-paid news updates. This format of online
advertisement yields much higher click-through rates than traditional display ads.
11
COMPENSATION METHODS
Advertisers and publishers use a wide range of payment calculation methods. In 2012, advertisers
calculated 32% of online advertising transactions on a cost-per-impression basis, 66% on customer
performance (e.g., cost per click or cost per acquisition), and 2% on hybrids of impression and
performance methods).
Cost per mile, often abbreviated to CPM, means that advertisers pay for every thousand displays of
their message to potential customers (mile is the Latin word for thousand). In the online context, ad
displays are usually called "impressions." Definitions of an "impression" vary among publishers, and
some impressions may not be charged because they don't represent a new exposure to an actual
customer. Advertisers can use technologies such as web bugs to verify if an impression is actually
delivered. Similarly, revenue generated can be measured in Revenue per mile (RPM).
Publishers use a variety of techniques to increase page views, such as dividing content across multiple
pages, repurposing someone else's content, using sensational titles, or publishing tabloid or sexual
content.
CPM advertising is susceptible to "impression fraud," and advertisers who want visitors to their sites
may not find per-impression payments a good proxy for the results they desire.
CPC (Cost Per Click) or PPC (Pay per click) means advertisers pay each time a user clicks on the
ad. CPC advertising works well when advertisers want visitors to their sites, but it's a less accurate
measurement for advertisers looking to build brand awareness. CPC's market share has grown each
year since its introduction, eclipsing CPM to dominate two-thirds of all online advertising
compensation methods.
Like impressions, not all recorded clicks are valuable to advertisers. Gold Spot Media reported that up
to 50% of clicks on static mobile banner ads are accidental and resulted in redirected visitors leaving
the new site immediately.
12
CPE (cost per engagement)
Cost per engagement aims to track not just that an ad unit loaded on the page (i.e., an impression was
served), but also that the viewer actually saw and/or interacted with the ad.
Cost per lead compensation method implies that the advertiser pays for an explicit sign-up from
a consumer interested in the advertiser's offer.
Attribution of ad value
CPA (Cost Per Action or Cost Per Acquisition) or PPP (Pay Per Performance) advertising means the
advertiser pays for the number of users who perform a desired activity, such as completing a purchase
or filling out a registration form. Performance-based compensation can also incorporate revenue
sharing, where publishers earn a percentage of the advertiser's profits made as a result of the ad.
Performance-based compensation shifts the risk of failed advertising onto publishers.
13
Fixed cost
Fixed cost compensation means advertisers pay a fixed cost for delivery of ads online, usually over
a specified time period, irrespective of the ad's visibility or users' response to it. One example is CPD
(cost per day) where advertisers pay a fixed cost for publishing an ad for a day irrespective of
impressions served or clicks.
14
BENEFITS OF ONLINE ADVERTISING
Cost
The low costs of electronic communication reduce the cost of displaying online advertisements
compared to offline ads. Online advertising, and in particular social media, provides a low-cost means
for advertisers to engage with large established communities. Advertising online offers better returns
than in other media
Measurability
Online advertisers can collect data on their ads' effectiveness, such as the size of the potential
audience or actual audience response, how a visitor reached their advertisement, whether the
advertisement resulted in a sale, and whether an ad actually loaded within a visitor's view. This helps
online advertisers improve their ad campaigns over time.
Formatting
Advertisers have a wide variety of ways of presenting their promotional messages, including the
ability to convey images, video, audio, and links. Unlike many offline ads, online ads also can be
interactive. For example, some ads let users input queries or let users follow the advertiser on social
media. Online ads can even incorporate games.
Targeting
Publishers can offer advertisers the ability to reach customizable and narrow market segments for
targeted advertising. Online advertising may use geo-targeting to display relevant advertisements to
the user's geography. Advertisers can customize each individual ad to a particular user based on the
user's previous preferences. Advertisers can also track whether a visitor has already seen a particular
ad in order to reduce unwanted repetitious exposures and provide adequate time gaps between
exposures
15
Coverage
Online advertising can reach nearly every global market, and online advertising influences offline
sales
Speed
Once ad design is complete, online ads can be deployed immediately. The delivery of online ads
does not need to be linked to the publisher's publication schedule. Furthermore, online advertisers can
modify or replace ad copy more rapidly than their offline counterparts.
16
CONCERN OF ONLINE ADVERTISING
Security concerns
According to a US Senate investigation in 2014, there are security and privacy concerns for users
due to the infrastructure of online advertising. This is because of the potential for malware to be
disseminated through online advertisements and for such advertising to be inserted and triggered
without sufficient protection or screening. Ransomware gangs were spotted using carefully targeted
Google search advertising to redirect victims to pages dropping malware.
Banner blindness
Eye-tracking studies have shown that Internet users often ignore web page zones likely to contain
display ads (sometimes called "banner blindness"), and this problem is worse online than in offline
media. On the other hand, studies suggest that even those ads "ignored" by the users may influence the
user subconsciously.
There are numerous ways that advertisers can be overcharged for their advertising. For
example, click fraud occurs when a publisher or third parties click (manually or through automated
means) on a CPC ad with no legitimate buying intent. For example, click fraud can occur when a
competitor clicks on ads to deplete its rival's advertising budget, or when publishers attempt to
manufacture revenue.
Click fraud is especially associated with pornography sites. In 2011, certain scamming porn websites
launched dozens of hidden pages on each visitor's computer, forcing the visitor's computer to click on
hundreds of paid links without the visitor's knowledge.
As with offline publications, online impression fraud can occur when publishers overstate the number
of ad impressions they have delivered to their advertisers. To combat impression fraud, several
publishing and advertising industry associations are developing ways to count online impressions
credibly.
17
Heterogeneous clients
Because users have different operating systems, web browsers and computer hardware (including
mobile devices and different screen sizes), online ads may appear to users differently from how the
advertiser intended, or the ads may not display properly at all. A 2012 comScore study revealed that,
on average, 31% of ads were not "in-view" when rendered, meaning they never had an opportunity to
be seen. Rich media ads create even greater compatibility problems, as some developers may use
competing (and exclusive) software to render the ads (see e.g., Comparison of HTML 5 and Flash).
Furthermore, advertisers may encounter legal problems if legally required information doesn't actually
display to users, even if that failure is due to technological heterogeneity. In the United States, the
FTC has released a set of guidelines indicating that it's the advertisers' responsibility to ensure the ads
display any required disclosures or disclaimers, irrespective of the users' technology.
Ad blocking
Ad blocking, or ad filtering, means the ads do not appear to the user because the user uses technology
to screen out ads. Many browsers block unsolicited pop-up ads by default. Other software programs
or browser add-ons may also block the loading of ads, or block elements on a page with behaviours
characteristic of ads (e.g., HTML auto play of both audio and video). Approximately 9% of all online
page views come from browsers with ad-blocking software installed, and some publishers have 40%+
of their visitors using ad-blockers.
Anti-targeting technologies
Some web browsers offer privacy modes where users can hide information about themselves from
publishers and advertisers. Among other consequences, advertisers can't use cookies to serve targeted
ads to private browsers. Most major browsers have incorporated Do Not Track options into their
browser headers, but the regulations currently are only enforced by the Honour system.
18
Privacy concerns
The collection of user information by publishers and advertisers has raised consumer concerns about
their privacy. Sixty percent of internet users surveyed says they would use Do Not Track technology
to block all collection of information if given an opportunity. Over half of
all Google and Facebook users are concerned about their privacy when using Google and Facebook,
according to Gallup.
Many consumers have reservations about online behavioural targeting. By tracking users' online
activities, advertisers are able to understand consumers quite well. Advertisers often use technology,
such as web bugs and respawning cookies, to maximize their abilities to track consumers. According
to a 2011 survey conducted by Harris Interactive, over half of Internet users had a negative impression
of online behavioural advertising, and forty percent feared that their personally-identifiable
information had been shared with advertisers without their consent. Consumers can be especially
troubled by advertisers targeting them based on sensitive information, such as financial or health
status. Furthermore, some advertisers attach the MAC address of users' devices to their 'demographic
profiles' so they can be retargeted (regardless of the accuracy of the profile) even if the user clears their
cookies and browsing history.
Trustworthiness of advertisers
Scammers can take advantage of consumers' difficulties verifying an online persona's identity,
leading to artifices like phishing (where scam emails look identical to those from a well-known brand
owner) and confidence schemes like the Nigerian "419" scam. The Internet Crime Complaint Centre
received 289,874 complaints in 2012, totalling over half a billion dollars in losses, most of which
originated with scam ads.
Consumers also face malware risks, i.e., advertising, when interacting with online advertising. Cisco's
2013 Annual Security Report revealed that clicking on ads was 182 times more likely to install a virus
on a user's computer than surfing the Internet for porn. For example, in August 2014 Yahoo's
advertising network reportedly saw cases of infection of a variant of Crypto locker ransomware.
19
Spam
The Internet's low cost of disseminating advertising contributes to spam, especially by large-
scale spammers. Numerous efforts have been undertaken to combat spam, ranging from blacklists to
regulatorily-required labelling to content filters, but most of those efforts have adverse collateral
effects, such as mistaken filtering.
20
TRADITIONAL ADVERTISING
Commercial advertisements often seek to generate increased consumption of their products or services
through "branding", which associates a product name or image with certain qualities in the minds of
consumers. On the other hand, ads that intend to elicit an immediate sale are known as direct-response
advertising. Non-commercial entities that advertise more than consumer products or services include
political parties, interest groups, religious organizations and governmental agencies. Non-profit
organizations may use free modes of persuasion, such as a public service announcement. Advertising
may also help to reassure employees or shareholders that a company is viable or successful.
Modern advertising originated with the techniques introduced with tobacco advertising in the 1920s,
most significantly with the campaigns of Edward Bernays, considered the founder of modern,
"Madison Avenue" advertising.
21
HISTORY OF TRADITIONAL ADVERTISING
Egyptians used papyrus to make sales messages and wall posters. Commercial messages and
political campaign displays have been found in the ruins of Pompeii and ancient Arabia. Lost and
found advertising on papyrus was common in ancient Greece and ancient Rome. Wall or rock painting
for commercial advertising is another manifestation of an ancient advertising form, which is present
to this day in many parts of Asia, Africa, and South America. The tradition of wall painting can be
traced back to Indian rock art paintings that date back to 4000 BC.
In ancient China, the earliest advertising known was oral, as recorded in the Classic of Poetry (11th to
7th centuries BC) of bamboo flutes played to sell confectionery. Advertisement usually takes in the
form of calligraphic signboards and inked papers. A copper printing plate dated back to the Song
dynasty used to print posters in the form of a square sheet of paper with a rabbit logo with "Jinan Liu's
Fine Needle Shop" and "We buy high-quality steel rods and make fine-quality needles, to be ready for
use at home in no time" written above and below is considered the world's earliest identified printed
advertising medium.
In Europe, as the towns and cities of the Middle Ages began to grow, and the general population was
unable to read, instead of signs that read "cobbler", "miller", "tailor", or "blacksmith", images
associated with their trade would be used such as a boot, a suit, a hat, a clock, a diamond, a horseshoe,
a candle or even a bag of flour. Fruits and vegetables were sold in the city square from the backs of
carts and wagons and their proprietors used street callers (town criers) to announce their whereabouts.
The first compilation of such advertisements was gathered in "Les Crieries de Paris", a thirteenth-
century poem by Guillaume de la Villeneuve.
In the 18th century advertisements started to appear in weekly newspapers in England. These early
print advertisements were used mainly to promote books and newspapers, which became increasingly
affordable with advances in the printing press; and medicines, which were increasingly sought after.
However, false advertising and so-called "quack" advertisements became a problem, which ushered in
the regulation of advertising content.
22
19th century
23
20th century
Advertising increased dramatically in the United States as industrialization expanded the supply of
manufactured products. In 1919 it was 2.5 percent of gross domestic product (GDP) in the US, and it
averaged 2.2 percent of GDP between then and at least 2007, though it may have declined dramatically
since the Great Recession.
Industry could not benefit from its increased productivity without a substantial increase in consumer
spending. This contributed to the development of mass advertising designed to influence the
population's economic behaviour on a larger scale. In the 1910s and 1920s, advertisers in the U.S.
adopted the doctrine that human instincts could be targeted and harnessed – "sublimated" into the
desire to purchase commodities. Edward Bernays, a nephew of Sigmund Freud, became associated
with the method and is sometimes called the founder of modern advertising and public relations.
Bernays claimed that:
"[The] general principle, that men are very largely actuated by motives which they conceal from
themselves, is as true of mass as of individual psychology. It is evident that the successful propagandist
must understand the true motives and not be content to accept the reasons which men give for what
they do."
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CLASSIFICATION
Advertising may be categorized in a variety of ways, including by style, target audience, geographic
scope, medium, or purpose. For example, in print advertising, classification by style can include
display advertising (ads with design elements sold by size) vs. classified advertising (ads without
design elements sold by the word or line). Advertising may be local, national or global. An ad
campaign may be directed toward consumers or to businesses. The purpose of an ad may be to raise
awareness (brand advertising), or to elicit an immediate sale (direct response advertising). The
term above the line (ATL) is used for advertising involving mass media; more targeted forms of
advertising and promotion are referred to as below the line (BTL). The two terms date back to 1954
when Procter & Gamble began paying their advertising agencies differently from other promotional
agencies. In the 2010s, as advertising technology developed, a new term, through the line (TTL) began
to come into use, referring to integrated advertising campaigns.
Traditional media
Virtually any medium can be used for advertising. Commercial advertising media can include wall
paintings, billboards, street furniture components, printed flyers and rack cards, radio, cinema and
television adverts, web banners, mobile telephone screens, shopping carts, web popups, skywriting,
bus stop benches, human billboards and forehead advertising, magazines, newspapers, town criers,
sides of buses, banners attached to or sides of airplanes ("logojets"), in-flight
advertisements on seatback tray tables or overhead storage bins, taxicab doors, roof mounts
and passenger screens, musical stage shows, subway platforms and trains, elastic bands on disposable
diapers, doors of bathroom stalls, stickers on apples in supermarkets, shopping cart handles, the
opening section of streaming audio and video, posters, and the backs of event tickets and supermarket
receipts. Any situation in which an "identified" sponsor pays to deliver their message through a
medium is advertising.
25
Television
Television advertising is one of the most expensive types of advertising; networks charge large
amounts for commercial airtime during popular events. The annual Super Bowl football game in the
United States is known as the most prominent advertising event on television – with an audience of
over 108 million and studies showing that 50% of those only tuned in to see the advertisements. During
the 2014 edition of this game, the average thirty-second ad cost US$4 million, and $8 million was
charged for a 60-second spot. Virtual advertisements may be inserted into regular programming
through computer graphics. It is typically inserted into otherwise blank backdrops or used to replace
local billboards that are not relevant to the remote broadcast audience. Virtual billboards may be
inserted into the background where none exist in real-life. This technique is especially used in televised
sporting events. Virtual product placement is also possible. An infomercial is a long-format television
commercial, typically five minutes or longer. The name blends the words "information" and
"commercial". The main objective in an infomercial is to create an impulse purchase, so that the target
sees the presentation and then immediately buys the product through the advertised toll-free telephone
number or website. Infomercials describe and often demonstrate products, and commonly have
testimonials from customers and industry professionals.
Radio
Radio advertisements are broadcast as radio waves to the air from a transmitter to an antenna and a
thus to a receiving device. Airtime is purchased from a station or network in exchange for airing the
commercials. While radio has the limitation of being restricted to sound, proponents of radio
advertising often cite this as an advantage. Radio is an expanding medium that can be found on air,
and also online. According to Arbitron, radio has approximately 241.6 million weekly listeners, or
more than 93 percent of the U.S. population.
26
Print
Print advertising describes advertising in a printed medium such as a newspaper, magazine, or trade
journal. This encompasses everything from media with a very broad readership base, such as a major
national newspaper or magazine, to more narrowly targeted media such as local newspapers and trade
journals on very specialized topics. One form of print advertising is classified advertising, which
allows private individuals or companies to purchase a small, narrowly targeted ad paid by the word or
line. Another form of print advertising is the display ad, which is generally a larger ad with design
elements that typically run in an article section of a newspaper.
Outdoor
Billboards, also known as hoardings in some parts of the world, are large structures located in public
places which display advertisements to passing pedestrians and motorists. Most often, they are located
on main roads with a large amount of passing motor and pedestrian traffic; however, they can be placed
in any location with large numbers of viewers, such as on mass transit vehicles and in stations, in
shopping malls or office buildings, and in stadiums. The form known as street advertising first came
to prominence in the UK by Street Advertising Services to create outdoor advertising on street
furniture and pavements. Working with
products such as Reverse Graffiti, air
dancers and 3D pavement advertising, for
getting brand messages out into public
spaces. Sheltered outdoor advertising
combines outdoor with indoor
advertisement by placing large mobile,
structures (tents) in public places on
temporary bases. The large outer
advertising space aims to exert a strong pull on the observer, the product is promoted indoors, where
the creative decor can intensify the impression.] Mobile billboards are generally vehicle mounted
billboards or online screens. These can be on dedicated vehicles built solely for carrying
advertisements along routes preselected by clients, they can also be specially equipped cargo trucks
or, in some cases, large banners strewn from planes. The billboards are often lighted; some
being backlit, and others employing spotlights.
27
Point-of-sale
In-store advertising is any advertisement placed in a retail store. It includes placement of a product
in visible locations in a store, such as at eye level, at the ends of aisles and near checkout counters
(a.k.a. POP – point of purchase display), eye-catching displays promoting a specific product, and
advertisements in such places as shopping carts and in-store video displays.
Novelties
Advertising printed on small tangible items such as coffee mugs, T-shirts, pens, bags, and such is
known as novelty advertising. Some printers specialize in printing novelty items, which can then be
distributed directly by the advertiser, or items may be distributed as part of a cross-promotion, such as
ads on fast food containers.
Celebrity endorsements
Advertising in which a celebrity endorses a product or brand leverages celebrity power, fame,
money, popularity to gain recognition for their products or to promote specific stores or products.
Advertisers often advertise their products, for example, when celebrities share their favourite products
or wear clothes by specific brands or designers. Celebrities are often involved in advertising campaigns
such as television or print adverts to advertise specific or general products. The use of celebrities to
endorse a brand can have its downsides, however; one mistake by a celebrity can be detrimental to
the public relations of a brand. For example, following his performance of eight gold medals at the
2008 Olympic Games in Beijing, China, swimmer Michael Phelps' contract with Kellogg's was
terminated, as Kellogg's did not want to associate with him after he was photographed smoking
marijuana. Celebrities such as Britney Spears have advertised for multiple products including Pepsi,
Candies from Kohl's, Twister, NASCAR, and Toyota.
28
Aerial
Using aircraft, balloons or airships to create or display advertising media. Skywriting is a notable
example.
29
CHAPTER II
Research
Methodology
30
Research methodology
This report is based on secondary data. All the data required for this analytical study has been
obtained mainly from secondary sources. The secondary data has been collected through various
journals & websites. Secondary data is based on information gleaned from studies previously
performed by various journals.
• To study and analyse the difference between Traditional and online advertising.
• To study the various components which affect both the advertising techniques.
Research problem of this thesis, there is a need to study different method options in searching for
needed data. There are different research approaches to choose from, some examples are quantitative
research (a measurable data helping to explain a phenomenon), qualitative research (gathered data that
can help the author to explain the phenomenon in his/her own point of view), historical research
(searching for historical data) and case study (in-dept study on a case, it can be a study on an event or
a firm etc.).
The research design adopted for this particular study has got systematic formulation. The entire process
comprises of research objective, methodology of research, research plan, data compilation, data
assessment and assessing quality standards.
“Research design is the plan, structure and strategy of investigation conceived so as to obtain
answer to research question and to control variance.” – BY KERLINGER
Sample size
Sample size=29
31
Sample Design Type of Research:
The survey followed descriptive research design based on study. The survey attempts to find out the
comparison between online advertising and traditional advertising
Primary data:
Primary data is collected for research on the basis of practical means of questionnaires, interviews
and under the focus of certain group debates. The primary data is inferred through the process of
statistical calculation and analysis. Since the study require a systematic gathering of information,
survey research (using a structured questionnaire) was selected.
Secondary data:
The process to collect secondary data is much easier than the primary data collection. It is here that
the information is collected through the way of using sources that are already present. These sources
are represented by various white papers, articles, internet and various kinds of print media; esp.
newspaper & research editorials along with academic journals. This research methodology needs
adequate amount of time for the selection of precise as well as apt and relevant data, as per the demand
of the research.
32
CHAPTER III
REVIEW OF
LITERATURE
33
TRADITIONAL ADVERTISING
Traditional advertising is the conventional mode and one of the oldest forms of advertising that have
been used since the beginning of the advertisements. Anything except online way to promote
company’s products. When people find your business through reference or network and start buying
your product is also known as traditional advertising. Everyone getting encounters some sort of
traditional advertising in their everyday lives whether it’s witnessing some outdoor advertising or
reading daily newspapers etc. traditional advertising simply means the advertising which helps to reach
the audience with offline mode of advertising. Methods of conventional advertising can include print
advertisements, broadcasting advertisements, tele advertising, outdoor advertisements etc.
34
TECHNIQUES OF TRADITIONAL ADVERTISING
1. PRINT ADVERTISING
• Newspapers
• Magazines
• Journals
2. BROADCASTING ADVERTISING
• Radio Advertising
• Theatre Advertising
• TV Advertising
3. OUTDOOR ADVERTISING
• Billboard Advertising
• Signage/Lamp Post
• Bridge Banners
• Point of Sale Displays
• Transit Advertising
• Retail Advertising
35
PRINT ADVERTISING
Print media advertising is the oldest form of conventional advertising. It simply means
advertising in paper form, this strategy has been in use since ancient times, when Egyptians created
sales messages and wall posters on papyrus. Today, print advertising usually refers to advertising
space in newspapers, magazines, newsletters, and other printed materials intended for distribution.
Print advertising can also be used as mass advertising and niche advertising techniques. As a mass
advertising technique print media reaches almost all class of people and for niche advertising to a
specific class of people.
36
BROADCAST ADVERTISING
Broadcast advertising refers to commercials that air to the public on the radio or television.
Businesses buy space on broadcast mediums, such as television and radio, and these purchased "spots"
generate revenue for stations. Broadcasting advertising reaches a large audience within a short period
of time. It brings realism and authenticity to a product because people can see on TV that how these
products work. It has short life span for its messages than print media and costlier.
37
OUTDOOR ADVERTISING
Outdoor advertising, also known as out-of-home advertising, is advertising that reaches consumers
when they are outside their homes. Outdoor advertising works well for promoting company’s product
in specific geographic areas, any successful outdoor campaign begins with company’s own location's
signage. Its outdoor sign is often the first thing a potential customer sees. Its sign should be sufficiently
bright and conspicuous to attract attention and sufficiently informative to let prospective customers
know what's sold there. Some of examples of outdoor advertising are billboards, signage, transit
advertising, and point of sale advertising etc.
38
ADVANTAGE OF TRADITIONAL ADVERTISING
Company can reach a group of specific consumers that do not necessarily use internet. When its
target groups are the local consumers then it can employ radio ads, local newspapers ads to cover that
specific area. It is one of the quickest ways to get your message across, as radio ads generally don’t
take too long to be ready for airing over the local radio station.
Personalised advertising is one of the best techniques and effective method attain recognition of
its goods and services. Sometimes it is definitely a time and place when this type of selling is most
effective to market a good or service.
Traditional method may be the only way to reach your old generation. Since they have already
used these types of ads so they don’t need detailed explanation as to what these promotional materials
are for. They simply accept the traditional way of advertising.
Traditional method of promotion has the advantage of being hard copies that can be taken
anywhere and read anytime. Additionally, these promotional materials can be kept for reuse, or
recycled.
With everything going online these days, it’s easy to wonder why traditional methods of
advertising are still around. The explanation for that is simple: it’s tried and tested, and has a high
success rate. Yes, online methods might reach a more global scale of promotion, but it’s not a guarantee
of reaching all of your potential customer base.
39
DISADVANTAGE OF TRADITIONAL ADVERTISING
I. EXPENSIVE
Traditional advertising is expensive in comparison with online advertising. For putting ads on
newspapers, radio, television, or distributing any flyer or pamphlet, you need to pay for it every time
you plan for running a campaign. Traditional advertising companies will charge you for each delivery
of fliers and mailers, whereas in online advertising your ad is open to the entire World Wide Web.
It is a more passive form of advertising where very little actual engagement happens.
Traditional advertising is mostly forced on the consumers, as it’s the part of daily life. It is known
as forced selling method because consumer may not want the product at first place. This type of
advertising has low response rate.
In traditional advertising, the specific customer cannot be targeted, the only specific market can
be targeted.
In traditional advertising, you will not get time to respond to the changes you wish to make in the
advertisement as compared to the new modern online advertising. Company needs to prepare its ad
well in advance even though if it wants to publish its ad in the daily newspaper.
40
VI. IGNORANCE OF TRADITIONAL METHODS
Most people tend to ignore or skip the advertisement more easily, such as they might not read
the ad on the billboard or banner, change the channel of the television when the advertisement or
commercial is shown, etc.
Results cannot be easily measured. We don’t have exact viewership number to measure the
effectiveness of traditional advertising.
41
ONLINE ADVERTISING
42
TECHNIQUES OF DIGITAL ADVERTISING
Tip: Just having a website or blog does not mean you will get traffic, leads, sales. You need to be
100% clear on the purpose of your blog before starting.
Payment is either made by “pay per click” or by “impression” (visitors see the ad whether they click
it or not). You can set a daily budget that can be adjusted up or down at any time.
43
• YouTube
YouTube offers a host of resources such as “how to” Guides and advertisers’ playbooks that
will show you exactly how to set up and run your first successful advertising campaign with it.
Twitter also recently announced that it allows users to place self-serve ads. You can find out more
about Twitter Advertising here
44
3. Banners and Display Advertising
Display Banners, or Banner ads, were the first major method used for online advertising. By 2009,
they had dropped to less than 23% of online advertising spend as pay per click or keyword advertising
became the predominant force.
Display banners still have merit and are good for special offers or for reinforcing a brand. Banner ads
are small adverts that normally come in various rectangle forms. They appear on websites and serve
as a link directly to the advertiser’s website: when you click on a banner your browser instantly
redirects you to that site.
The popularity of banner ads is partly due to fact that they are simple to produce and publish. They are
also highly measurable. Depending on the ad and the producer or service, advertisers can calculate the
cost per sale – this is the amount of advertising money that is spent to make one sale.
45
4. Pay Per click (PPC) or Keyword Advertising
Search engines and many websites (including social networks sites such as Facebook and
YouTube), carry small adverts with embedded URL’s. When someone clicks on these adverts, the
company that put them there is charged. This is considered by many to be the best online
advertising method by far and has been growing at a remarkable rate. Unlike traditional advertising
pay per click is user activated. Users like it, because it costs them nothing and they only use it if there
is something that attracts them.
The advantage of pay per click for advertisers is that they only pay for the actual click through to their
site. With other methods of advertising, both offline and online, you have no particular idea of how
much it will cost you to attract each visitor. A user that clicks through into your site is likely to be
interested in what you have to say, because these users are actively looking for information or
researching what you have to say, your product service or offering.
The largest Pay per Click advertiser by a long way is Google and they have a large library of
information available to walk small business owners through the process of starting a successful PPC
campaign. Google
46
5. Search Engine Optimization (SEO)
With the huge increase of companies operating online and selling on the internet there has been a
dramatic increase in the competition between companies to get visitors to their websites. When
carrying out research most people will only look at the first page of search results and quite often
only the first two or three.
An article on Search Engine Watch shows that 36.4% of people click on the first result and only
2.2% click on result number ten, the last result on the first page.
Making sure your site gets high up in the search results is important to the success of your website.
There are ways to improve your search engine rankings, and search engine optimization is the
method of doing this.
Tip: Search Engine Optimization is a long-term strategy one that will require constant attention.
(When your website starts to move higher in the rankings, those that you displace will try to recover
their ground.)
The best online advertising methods can and will only be the best if you in fact have a sound, well
thought out plan for your advertising campaign; whether that is SEO or social media. The simple fact
is if you go running ahead online without due care and attention you could end up with a whopping
great investment of time and or money for little to no return.
47
6. CREATING AN APP
One of the popular digital advertising techniques is creating an app. Creating an app for a brand
can give viewers an accessible means of communication and show where to purchase and get notified
of new products.
48
ADVANTAGE OF ONLINE ADVERTISING
I. COST EFFECTIVE
Advertising and advertising cost is one of the biggest financial loads on the companies which have to
bear by them. This problem arises in front of small and medium scale businesses rather than big business
houses. Digital advertising provides the platform to advertise the products at more affordable cost.
Return on investment is the most important for any business on the investments it makes. Digital
advertising provides substantial return to small investments. Digital advertising running cost is little and return
is huge.
A well-developed website, a blog featuring quality and a useful article on a social media channel
that that is highly interactive are some of the ways by which a business can build its brand.
V. GLOBAL REACH
With the help of digital advertising an organisation can find new markets and trade globally with
very little investments.
49
VI. COMPETE WITH LARGE CORPORATION
Digital advertising can enable a small organisation to compete head-to-head with large corporation.
With the help of digital advertising the small organisation can get competitive advantage over large
corporation.
In digital advertising organisation has the time to make changes in the advertisement as it wishes.
This is one of the unique benefits of the digital advertising.
Due to advancement in the technology organisation have the behavioural information about its
potential customers. So, when it focuses on the consumers more likely to be interested in its business,
it increases the chances of conversion.
50
DISADVANTAGES OF ONLINE ADVERTISING
I. TIME CONSUMING
The internet is prone to error. Sometimes link may not work, landing page may not load and page
buttons just don’t simply do its job. This may be some of the reasons organisation’s potential customers
will move from its brand to next brand.
Organisation will need to ensure that its staff has the right knowledge and expertise to carry out
digital advertising with success tools, platforms and trends changes rapidly and it is vital that
organisation keep up to date.
After globalisation all countries have been converted into a global village. Globalisation led to
increase in worldwide competition. Due to digital advertising, there are many similar products
available on online platform. This creates distrust among consumers and they take advertisement as
frauds.
It is one of the biggest disadvantages of digital advertising. Customers’ complaints and feedbacks
are visible in public on its social media platform. One single negative comment, tweet, feedback or
post about its services and products can destroy organisation’s online reputation for a long time.
51
TRADITIONAL ADVERTISING V/S ONLINE ADVERTISING
There are various ways of advertising goods and services. We know that traditional advertising
includes print, broadcast, tele advertising and outdoor advertising while digital advertising includes
social media, search engines, emails, content advertising, apps etc. Advertising is that aspect of
organisation which cannot be ignored. The problem of taking decision regarding choosing the type of
advertising is very difficult because we live in an era where huge part of the population does its
transaction online whereas some of others even do not know how to use internet. Since digital
advertising is more versatile than traditional advertising and has huge advantage over it, so many
organisations are shifting from traditional to digital advertising.
52
Consumer Interaction Very less interaction is It offers number of digital
involved in this method as the platforms to the consumers like
promotion mediums are not social networking sites, e-
flexible enough to incorporate commerce websites, different
the customers’ interaction apps for collecting their
feedbacks where they can put
their views about the products
Advertising Cost This is expensive as it involves It is less costly than the
printing, radio/TV traditional method of
advertisements which cost advertising as everything is
more to the company online and the use of social
websites does not cost even a
penny. Based on the advertising
requirements the business can
opt for paid ads if they want to
Advertising Analysis With this method the company It gives quick results and thus it
must wait for weeks or months is easy to get the real time
to get the results advertising results
Strategy Refinement It does not provide real time It provides real time results;
results, drafting the advertising thus, strategy refinement
strategy takes time as it becomes very easy and the
dependent on the advertising advertising teams can opt to
results change or update their market
strategy
Communications This method involves one way It involves two-way
communication as the communication and thus helps
advertising mediums are quite to satisfy the customers and
rigid make the customers feel that
they are being listened and
served
53
CHAPTER IV
DATA
INTERPRETATION
54
1. How often do you use the internet?
➢ Less than once a week
➢ 2 to 4 times a week
➢ Daily
Interpretation
96.4% of people using internet on daily basis and 3.6% of people using internet less
than once a week.
55
2. When using the internet, about how long do you stay logged in?
➢ Less than 1 hour
➢ 3 to 5 hours
➢ More than 5 hours
Interpretation
14.3% of people logged in internet less than 1 hour in a day, 64.3% of people logged
in internet 3 to 5 hour in a day and 21.4% of people logged in internet more than 5 hours
56
3. What age group below do You belong to use internet?
➢ Less than 18
➢ 18 to 25
➢ 26 to 35
Interpretation
92.8% of people are in 18 to 25 age group using internet and 7.1% people is less than
18 age group
57
4. Have you ever heard about internet advertising?
➢ Yes
➢ No
Interpretation
92.9% of people heard about Internet advertising and 7.1% of people never heard
about online advertising
58
5. Have you ever seen advertisement on internet?
➢ Yes
➢ No
Interpretation
96.4 % of people seen advertisement on Internet and 3.6% people never seen
advertisement on Internet.
59
6. On which platform you see maximum advertisement?
➢ YouTube
➢ Instagram
➢ Facebook
Interpretation
This data shows 50% of people seen advertisement on Instagram or remaining 50%
of people seen advertisement on YouTube.
60
7. Which advertising techniques do you like most?
➢ Online advertisement
➢ Traditional advertisement
Interpretation
This data shows 71.4% of people like online advertisement and 28.6% of people
would like traditional advertisement.
61
8. How did the online advertisement describe the product/service compare to
traditional advertisement?
➢ Very bad
➢ Bad
➢ Average
➢ Good
➢ very good
Interpretation
This table shows the 53.6% of people says the online advertisement describe product/
service in good manner as compare to traditional advertisement. 28.6% people says the
online advertisement describe product/ services in average manner as compare to
traditional advertisement and 14.3 or 3.6% people say the online advertisement describe
product/service in very good or bad manner as compare to traditional advertisement.
62
9. Online advertising is more attractive compare to traditional advertising?
➢ Yes
➢ No
Interpretation
Table shows 82.1% of people say online advertisement is more attractive compare to
traditional advertisement and remaining people says traditional advertisement is more
attractive compare to inline advertisement.
63
10.What do you think online advertising help to grow small business compare to
traditional advertising?
➢ Yes
➢ No
Interpretation
The pie chart shows 89.3% people says online advertising help to grow small busniess
and remaing 10.7% people says traditional advertising help to grow small busniess
64
11. What do you think online advertising is cheaper than traditional advertising?
➢ Yes
➢ No
Interpretation
This pie chart shows 60.7% people says online advertisement is cheaper than
traditional advertisement and 39.3% people say traditional advertisement is cheaper
than online advertisement
65
12.Online advertising is easy to operate compare to traditional advertising?
➢ Yes
➢ No
Interpretation
In this pie chart we see 78.6% people says online advertising is easy to operate
compare to traditional advertising. And remaining 21.4% people says traditional
advertising is easy to operate compare to online advertising.
66
13. What do you think online advertising is comfortable, reliable or budget friendly
compare to traditional advertising?
➢ Yes
➢ No
Interpretation
In this pie chart we see 82.1% people think online advertising is comfortable, reliable
or budget friendly compare to traditional advertising. Remaining 17.9% people says t
traditional advertising is comfortable, reliable or budget friendly compare to online
advertising.
67
CHAPTER V
FINDINGS &
CONCLUSION
68
Findings
❖ Many of people aware about online advertising but they want traditional
advertising
❖ Most of the real sector people actually understanding the value and opportunities
of digital advertising.
❖ With the study of digital advertising, I came to its emergence and extreme growth
in today’s scenario compare to traditional advertising.
❖ Most of the sectors initially opt for the digital advertising channels name search
engine optimization, search engine advertising and social media advertising and
later they will think about other channels which mean these three-channel high
acceptance.
❖ 35% respondents prefer and trust those advertisements which are displayed online
on brand websites compare to traditional advertising.
❖ Television is still occupying the top most position among all other traditional
media with highest rank.
69
❖ Respondent evaluation for online and traditional advertisements media differ
significantly very much for attributes “reliable, misguidance, social evil and
unrequited desire.
70
CONCLUSION
71
CONCLUSION
72
The emergence of the online advertising has not replaced the use of traditional
advertising, particular tv. Online advertising and traditional media are highly
complementary in nature. From the study it is concluded that income of the audience /
viewers significantly influences their awareness about advertisement done through
online media but not gender. Maximum people prefer and trust those advertisement
which are displayed online on brand websites. But television is still occupying the top
most position respondents vary significantly for attributes namely reliable,
misguidance, social evil and unrequited desire. Besides that, online media is very much
helpful in easy comparison of product, does fast communication but creates more
violence while traditional advertisement is very much eye catching, more informative
but confusing.
73
RECOMMENDATION
74
Recommendation
Digital advertising is probably the best option for most. If you want to reach a
particular group of people, wherever they may be, while keeping costs low, go with
digital advertising. Doing so will also allow you to collect valuable information on your
audience immediately so that you can create even more effective advertising campaigns.
However, there is still a place for traditional advertising. If you want to reach an older
audience or a local audience, traditional advertising methods may be more productive
and stand out better than digital advertising methods. Though these methods may seem
“old,” the reality is that they’ve stuck around for a reason. They work!
When considering which advertising strategy is best for your business, consider your
audience, where they get their information from, and use that to make your decision.
When deciding between traditional advertising vs. digital advertising, it’s not
necessarily true that one is simply better than the other as they serve different purposes.
The bottom line is that you need to fully understand your business and your audience to
pick the strategy that’s better for you.
75
BIBLIOGRAPHY
76
BIBLIOGRAPHY
❖ https://en.wikipedia.org/wiki/Online_advertising
❖ https://www.groundtruth.com/insight/mobile-advertising-strategies-and-tools/
❖ http://dcac.du.ac.in/documents/E-Resource/2020/Metrial/23neerukapoor1.pdf
❖ http://www.agamaadvertising.com/index.php?option=com_content&task=view
&id=90&Itemid=135#:~:text=Traditional%20advertising%20is%20what%20m
ost,cable%20television%2C%20or%20outdoor%20billboards.
❖ https://www.business2community.com/online-advertising/5-of-the-biggest-and-
still-the-best-online-advertising-methods-0186358
PHOTOGRAPHS
❖ https://www.howtogeek.com/wp-content/uploads/2019/03/gmail-
1.png?width=1198&trim=1,1&bg-color=000&pad=1,1
❖ https://13p13n407tzq3x5jwg1daxox-wpengine.netdna-ssl.com/wp-
content/uploads/2015/03/display-ads.png
❖ https://storage.googleapis.com/website-production/uploads/2020/04/search-vs-display-
example.png
77
APENDIX
78
QUESIONEER
❖ When using the internet, about how long do you stay logged in?
➢ Less than 1 hour
➢ 3 to 5 hours
➢ More than 5 hours
79
❖ On which platform you see maximum advertisement?
➢ YouTube
➢ Instagram
➢ Facebook
80
❖ What do you think online advertising help to grow small business compare to
traditional advertising?
➢ Yes
➢ No
81