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Effectiveness of Online Advertisement

Paper type: Essay
Pages: 11 (2524 words)
Categories: Advertisement, Advertising, Business, Marketing
Downloads: 27
Views: 252

Chapter 1: Introduction

Oxford Dictionaries Online states that online is of an activity or service; the available on or performed using the Internet or other computer network while advertisement is a notice or announcement in a public medium promoting a product, service, or event or publicizing a job vacancy.

What is online advertising? Online advertising is just basically using the online platform to promote a company’s or brands’ product and or service. Advertising is a necessary tool to expose a brand, product and or services provided, to customers or consumers; be it to raise awareness, sales, or simply just to improve brand image for a company, product or services.

Advertising and marketing are inter-related, they work hand-in-hand to increase the rate of sales. With the digital age in succession, online advertising is something that is vital for companies to survive and still remain relevant in the market.

Based on Rizwan, Pirzada, Sohail, Nadeem, and Murid (2013), a large sum of budget is spent by companies to invest on advertising so as to promote their products and services.

The authors also stated that companies hope that potential customers will buy their products and services after viewing advertisements along the street.

Advertising in itself is like a form of appeal, persuading potential consumers to buy their products and services. Berkman and Gilson (1987) defined advertising appeal as a means to engage purchase intention of customers all while changing the prospects’ behaviour on a product or services provided.

A driving power that helps prospects derive the intended message of the advertisement (Lin, 2011). Emotional and rational appeal are used mainly by advertising companies (Khan & Sindhu, 2014). It creates a mixed of emotions, either a constructive or obstructive emotion in customers to make their purchase on the product or services (Keshari & Jain, 2014).

This is why choosing the right advertising appeal for a companies’ product and services greatly impacts the reach of advertisements. Owalabi (2009) states that celebrity endorsement, advertiser credibility and the state of emotion of consumers are also among the elements included in online advertisements favoured by Internet consumers.

There are all sorts of online advertising. This includes display advertisement on websites (usually in the form of web banners), advertisement appeared on search engine pages, social networking sites and of course, e-mail (Stokes, 2008).

Advertisements on social networking sites are popular among advertisers, be it pop-up advertisements in a video or simply just appearing on your social feed based on your search history or either a page or group or hashtag that stimulates discussion and acts as a platform where buyers and sellers exchange information online.

Problem Statement

With the increase usage of online advertising, advertisers see this as a potential market to market their products and services. This research is to gain perception of young adults on emotional and rational appeal tactic advertisements based on its influence on young adults’ preference on types of online advertisement.

Based on Coleman, Chandler & Gu (2013), the measurement result of social network users was young age. Therefore, advertisers need to know what to factor in their planning to gain young adults’ attention on their advertisements.

There can be different opinions on advertising, some consumers think that advertisements are an annoyance and in actuality is spamming their inbox or even their feed. Even though social media advertising was a substantially huge convergence in advertising, IDC report in year 2008 reported that there was a whopping 43% of social media consumers skipping and not contributing to the click rates per advertisement.

For those social media consumers that did click on the advertisements and later proceeded to buy the product were 11% while 23% was actually done by non-social media consumers.

Research Objectives

This research consist of two main objectives:

  • To identify the perception of young adults towards online advertisements.
  • To identify the process on how advertisers can effectively portray their intended message to young adults based on the underlying factors affecting online advertisements.

Research Questions

  • What are the methods that advertisers can adopt to reduce the amount of skipped advertisements done by young adult consumers?
  • What are the factors underlying in the favouring of types of advertisements found online?

Significance of Study

This study is to help advertisers, marketers and companies hoping to pitch an advertisement online to understand consumer behaviour better, to know what the effective approaches are in increasing click rates considering their target market.

It also helps in identifying elements that should be included or avoided in advertisements. Companies that want to be relevant in the market needs to know the pros and cons of their choice of advertisements targeted at young adults. This way companies can build on their brand identity and brand image among young adults to be positive.

Chapter 2: Literature Review

Online Advertising

Advertising is an important part of marketing communication as it is how a company, business or marketing team chooses an array of advertising methods to convey messages or to simply promote their products and services so as to gain attention and hopefully proceeds to make a purchase; it can also be either to convey messages or gain awareness on their brand, company or to raise awareness on a certain issue (for example, global warming).

In the Latin language, “advertere” is defined as “to turn towards”, to further explain this would be to make heads turn towards what you are trying to get them to notice. (Saravanan & Sajitha, 2016). To make that happen, the marketing team can come up with interesting ideas using all forms of media, be it traditional media or digital media.

With focusing only on online advertising, a form of digital media, it consist of advertising on online platforms. For instance, web banners (advertisements that appear at the top or side of a webpage), social media advertising (advertising on social media platform like Facebook, Instagram), pop-up advertisements (advertisements that pop-up when you browse a webpage) and many more.

According to Al-gamal and Siddiq (2018), they stated that the World Wide Web (WWW), also known as the Internet has grown exponentially that it has been imparted in the lives of people, so much so that a large portion of websites actually gain a lot of money through the use of web advertising.

Online advertising is used because it helps advertisers know how and what their consumers are thinking, enables them to target their target market without wasting a large portion of money on identify them through expensive methods. It is also used to gain information on their consumers, figure out the sales potential and to also make sure their products and services are suitable for the geographic of population. (Saravanan & Sajitha, 2016).

Reasons that impact the preference of advertisements

Consumer Behaviour

Schiffman and Kanuk (2004) explained attitude “a learned predisposition to behave in a constantly favourable or unfavourable way with respect to a given object.” (as cited in Taghipoorreyneh & Run, 2016, pp. 72). To further explain this statement is that attitude is not an innate or instinctive occurrence, but instead is affected by how a message is marketed using the platforms (Taghipoorreyneh & Run, 2016).

According to Nizam, Jaafar and Supaat (2018), a study was carried out on Malaysian internet users and it has been known that Malaysian internet users form positive beliefs on web advertising. For instance, gaining up-to-date information about products and services that is currently accessible in the marketplace and also stated that the advertising on the web is convenient for them as it gives them information without having to look for it themselves.

Website Design Effectiveness

To produce an effective advertisement, you first need to gain the attention of passer-bys or consumers, and to gain their attention you need to input your creativity and effort in making an exciting and fun advertisement.

As stated by Nikhashemi, Paim & Fard (2013), a website that caters to consumers from businesses has an important role in attaining and stimulating purchase intention by their customers while making good perception of advertisements online.

Information Quality

The information a company receives from their webpages or systems are important to determine their target market; to achieve a niche market that they can focus on. It is also to identify if their advertisement are actually useful in gaining customers; if it is effective in gaining their attention to proceed to purchasing of product and services.

Authors Saeed, Lodhi, Naeem, Akbar, Sami and Dustgeer (2013) wrote in their journal that marketers are able to target their potential consumers by using “COOKIES” to determine the most visited website by an array of consumers so as to know which websites they should bid their advertisements on.

Nikhashemi, Paim & Fard (2013), stated that the accuracy of the system quality must also be reliable which includes “reliability of computer systems used, online response time, ease of terminal use, and a few other factors.”

The information of a product or services placed on a website and advertisement is also important in helping your customers to evaluate and compare so that they can determine if a product or services is to their preference, which then will incur unto the customers to proceed to the website or online platforms and make purchase or to understand more about a product or services.

By referring to Nikhashemi, Paim & Fard (2013), even though information quality may give you the slips, one can measure a website’s information quality on four parameters. This is including accuracy, integrality, relevant and updates timely. The authors proceeded to explain accuracy by defining them as “information that is factually irrefutable”.

Theoretical Framework

The basis of the theory hand-picked for this study is emotional appeals in advertising theory. According to Osewe (2013), a huge amount academic research was conducted on the psychology of emotion, and how advertisements that have emotional appeal affects how consumers respond to marketing communication. The author continued to state that advertisers may arouse positive emotions and also negative emotions in consumers with their advertisements which has been observed by scholars of sort.

Aaker, Stayman and Hagerty (1986) said that positive advertisements are used to stimulate consumers’ likability towards it to increase purchase intention while negative advertisements are used upon consumers to incur uneasiness so as to make them sought after the advertiser’s offered solutions (as cited by Osewe, 2013).

Findings done by Cotte, Coulter and Moore, (2004); Englis (1990); Stout, Homerand Liu (1990) opposed that there are “no guarantees that what the consumer actually experiences will be the affective response the advertiser intended to create”; Research has proved too often a mismatch occurs in between advertiser intentions and consumer response (as cited by Osewe, 2013).

With a clash opposing opinions, it is hard to identify what is actually effective for advertisers to use in advertising to persuade consumers. Is it possible for advertisers to avoid their advertisements being skipped online? Do consumers favour any type of online advertisement over the other? While using online advertising as the main focus, this study will attempt to answer the questions stated.

Chapter 3: Methodology

Research Design

The researcher plans to carry out this research to identify the factors underlying in the favouring of types of advertisements found online; the appeal of online advertisements from young adults’ perspective. A qualitative method is a better choice for this research as this research’s result cannot be measured numerically (emotions cannot be measured). This study is intended to be conducted to fill the gaps in the related field of topic.

For the purpose of this research, the researcher intends to carry out a focus group interview. According to Gorman and Clayton (2005), “Participants are encouraged to communicate with each other and not only responding to the interviewer.

With this the range and complexity of attitudes and beliefs can emerge.” (as cited by Dilshad & Latif, 2013). They also stated that focus group offers immediate feedback or sometimes clarification from a person’s viewpoint, which means that it promotes a frank, honest sharing ideas experience. They went on saying that facial expressions and the gestures made by interviewees are also taken into account during the interview, meaning the non-verbal communication aspect is taken into account.

With ethical considerations, the interviewer will signal the participants when the interview (audio recording) is about to start. This is to let the participants be at ease and to respect them and not violate ethics. The interview will not be carried out until the participants are ready. If the participants do not wish to be named, the researcher will respect their wishes by naming them participant number 1 and so on. The presence of a third party is needed as a moderator with a neutral opinion.

Procedure

3 focus group will be conducted with 5 participants in each of the groups. The location will be decided with the participants on where and when is the most convenient time and place for them. A consent form will be distributed to participants of the focus group to fill in, regarding the documentation of their voice and to allow the researcher to use the recorded audio for further studies.

A demographic form will also be distributed to participants to fill in on their name, gender, age, faculty and etcetera. The obtained data shall only be used for the purpose of the research study and not for other purposes.

The proposed interview shall be carried out by showing interviewees a few selected appropriate advertisements done by the interviewer to know about their perception; to identify what elements in an advertisement they favour. With a 30-40 minutes limit, the researcher plans to gain appropriate answers from the interviewees.

Participants

The targeted participants for this focus group interview are young adults in between 18-25 years of age. It is a must that the participants are active users of the Internet who spends at least 5 hours on the internet daily. The targeted participants are favourably from Universiti Tunku Abdul Rahman (UTAR), Kampar branch.

The favourable sample size for this research is 15 participants that fits the intended criteria stated. The researcher would intend to locate suitable participants from the Faculty of Social Sciences, Faculty of Business and Finance, Faculty of Engineering and Green Technology.

The researcher’s intention in conducting the interview with these participants in these faculties of UTAR is because the focus of the intended study are young adults, online active users. Since university students are technology dependent, they have a higher chance of being an online/Internet active user.

Sampling Method

The sampling method proposed in conducting this research would be using non-probability sampling method. The researcher intends to conduct the research by using purposive sampling. Since the focus is on young adults, the selection process of a sample that is relevant to the purpose of the study is required.

Data Analysis

The researcher intends to carry out a focus group interview by utilising an audio recording to document the interview. After the said interview, the researcher would be working hands-on in transcribing the recorded interview and analyse it leading to the categorisation of the participants’ response (using pre-set factors). The researcher will try his/her best to portray what the participants intend to say while categorising the obtained data.

Cite this essay

Effectiveness of Online Advertisement. (2019, Dec 12). Retrieved from https://studymoose.com/effectiveness-of-online-advertisement-essay

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