Internet advertising

INTERNET ADVERTISING AND ITS EFFECTIVENESS
KARIN KRISTIN SEPPÄ PAVÓN

HAAGA-HELIA University of Applied Sciences 2007

Seminar version Seminar date: 15.03.2007

Evaluation version

X

Handed in for assessment: 22.03.2007

Opponents: Sara Nunes E-mail: karin.seppa@gmail.com

ABSTRACT Malmi Degree Programme in International Business
Writer(s) Karin Kristin Seppä Pavón Thetitle of the thesis Internet Advertising and its effectiveness Group IBD03 Number of pages and app. Pages 41 + 4 Supervisors Anne Korkeamäki, Mia Leino Internet has been changing the advertising industry quite rapidly, as it delivers messages instantly to consumers offering diverse degrees of interactivity, giving the users the option to reply or to ignore the adverts that appear to them. Manycompanies have started to invest more on this type of media, but many are still sceptic of inventing in this kind of media, and it is the task of advertising agencies to help these companies as their clients to understand the Internet as an advertising media.

15.03.2007

The objective of this thesis is to provide more detailed proof of the efficiency of Internet advertising as a newmedia within terms of how it works and why.

The thesis will provide the reader with more understanding of the benefits that Internet advertising provides through various tools and their interactivity. As a result, the thesis will provide advertising agencies with more empirical proof to provide to their clients and thus persuade more customers to go online. For other agencies, this thesiswill clarify the concept of Internet advertising and the importance of having interactive experts in house, as many companies are going online all the time.

The study is based on qualitative research, which has provided the author with better understanding of and insight into the industry. The interviewees are experts on Internet advertising; their demographic is wide ranging as they comefrom different cultures and backgrounds.

The findings demonstrate the effectiveness of Internet advertising and its benefits. They also discuss how the industry is viewed and gives suggestions of future outcomes. Keywords Advertising, Internet Advertising, Traditional (Media) Advertising, Effectiveness, Interactivity, Globalization

TABLE OF CONTENTS
1 INTRODUCTION......................................................................................................... 1 1.1 1.2 1.3 2 Research Problem ............................................................................................... 2 Demarcations....................................................................................................... 3 Key Concepts...................................................................................................... 3

TRADITIONAL VERSUS INTERNET ADVERTISING................................................. 5 2.1 Advertising ........................................................................................................... 6 Changes in Traditional Advertising .............................................................. 8 Impacts ofGlobalization in Advertising ...................................................... 10

2.1.1 2.1.2 2.2

Internet Advertising............................................................................................ 11 How Internet Advertising Works................................................................. 13 Internet Tools............................................................................................. 15 Effectiveness of Internet as an Advertising Media ..................................... 20 Benefits of Internet Advertising .................................................................. 24 Where is Internet Advertising Going? ........................................................ 26

2.2.1 2.2.2 2.2.3 2.2.4 2.2.5 3

EMPIRICAL RESEARCH...