Online Advertisement
Author – Jay Gherwala
Introduction
Online advertisements are crucial in today’s world, aiming to increase sales of targeted items or shops. However, effective marketing strategies require understanding customer behavior during shopping. Different shopping patterns may influence the appropriate advertisement strategy for each group. Studying customer behavior can help develop additional marketing strategies to enhance businesses.
History, Evolution and Changes
Online advertising is a complex term due to its evolution and decentralized nature. It involves calling users’ attention to a product or service through paid announcements, and is defined as any paid nonpersonal presentation and promotion of ideas, goods, and services through mass media. Regulations are often derived from committees of academia and industry professionals.
Methodology
The study uses quantitative, direct marketing research to identify trends in online advertising perception among internet consumers in Romania. Data was collected through a questionnaire on the EsurveysPro platform, with 50 respondents from urban and rural areas interviewed between April and May 2018.
Intermediaries and the practice of multi-homing
The digital advertising ecosystem has evolved with the rise of intermediaries like ad exchanges, supply-side platforms, demand-side platforms, data management platforms, ad networks, and agencies. These intermediaries provide technological infrastructure and tools for advertisers to reach their target audiences and optimize their campaigns. However, these intermediaries have gained control, leading to a loss of control over campaigns and algorithms acting as “black boxes.”
Online advertising on social media and companies
Social media has become the most popular communication channel in the 21st century, with a 9% annual increase in users. Online advertising spending has significantly increased, with a global investment of 73.8 billion dollars in 2018 and expected to reach 186.7 billion by 2023. Companies’ online activity and visibility are crucial for their success, with Facebook and Instagram being popular platforms for potential customers. Social networks are considered hybrid elements of the promotion mix, making it easier to identify potential customers through personalization methods.
Findings
The study reveals that online advertising channels, particularly social media advertising, significantly influence respondents’ buying decisions compared to offline advertising. Social media advertising has the highest impact, while email marketing has the lowest. The top five online advertising channels include social media, Google Ads, YouTube, websites, and email marketing. These results can vary depending on audience and demographic and behavioral factors.
Characteristics of Advertising
Research on online advertising primarily focuses on banners as the most successful model. Animation, size, and position of advertising significantly impact brand recognition and recall. Interactivity, content, and design elements also influence effectiveness. A study by Flores, Che and Ross (2014) found that format, form and language are the main variables influencing effectiveness. Studies also focus on banner efficiency, considering click, print and conversion as measurement tools. The format and size of advertising significantly affect click through rates and conversion from click to buy.
The PUSH and PULL effect of Internet Advertising
Online advertising is a direct communication activity where an organization transmits information about its products, trademarks, events or itself to a specific audience. Its efficacy is higher than traditional advertising due to factors like better target quality, better selectivity and faster evaluation of efficiency. Success depends on understanding the advertising domain and internet features. Companies adopt online advertising due to the shift towards the internet, impact of the Internet on daily life and the preference of 45.6% of people aged 18-54 for the internet.
Finding and Discussion
The study reveals that advertiser credibility and informative message are key factors influencing consumer attitudes towards advertising. Credibility leads to more favorable sentiments, while informative messages increase brand awareness. However, these variables only account for 23.3% of variance, suggesting other factors may influence attitudes. The study suggests these factors are crucial for marketers to promote their products effectively through banner advertising.
Conclusion
The Interactive Advertising Bureau reported that online advertising revenues in the US increased 17% from 2012 to $42,78 billion in 2013. A study by 12 Romanian practitioners offers insights into online advertising, its characteristics, services offered, factors influencing its modification, and its use alongside other marketing tools. The study, “A Qualitative Research Regarding Online Advertising Formats Used by Romanian Companies,” aims to identify similarities.
Overall Summary
Online advertising is crucial for businesses to increase sales and understand customer behavior. A study in Romania reveals that social media advertising significantly influences buying decisions compared to offline advertising. The top five online advertising channels include social media, Google Ads, YouTube, websites, and email marketing. The study also highlights the importance of advertiser credibility and informative messages in influencing consumer attitudes towards advertising.
References
Akira Matsui & Daisuke Moriwaki (2022): Online-to-offline advertisements as field experiments Abstract
Alexandra Giuliana ANDRONIC (2019): Internet Consumers’ Perception Of Online Advertising Methodology Page 74
Acatrinei Carmen (2015): Remarks About Online Advertising – A Qualitative Research Among Romanian Professionals Conclusion Page 1205
UNGUREANU Andrei & POPESCU Doris-Louise (2022): Online Advertising – History, Evolution, And Challenges Page 121 & 122
Georgiana Elena Constantin & Anca Ioana Blaga (2023): The Impact of Online Advertising on the Purchase Decision Findings Page 421
Lucia Nicoleta Barbu & Mihai Cristian Orzan & Andrei Canda (2022): Efficiency of Online Advertising Strategies on Romanian Social Networking Websites 2.2. Online advertising on social media and companies Page 154
LucreÅ£ia Mariana Constantinescu & Irina Tănăsescu (2014): Online Advertising – An Informational & Communication Space For The Enterprise The PUSH and PULL effect of Internet advertising Page 79
Raluca Mihaela Ursu & Andrey Simonov & Eunkyung An (2025): Online Advertising as Passive Search 2.2. Intermediaries and the practice of multi-homing Page 309
SARAH FAKHIR (2017): The Moderating Factors of Click on Intrusive Online Advertising 4.1. Characteristics of advertising (moderating variables) Page 167
Santirianingrum Soebandhi & Bayu Fadian Putra (2023): Online newspapers and banner Ads: Understanding advertiser credibility and informative advertising Finding and Discussion Page 99