Research Paper

On

Integrated Marketing Communications

Topic: Brand building through online advertising

Submitted To: Submitted By:

Prof. Issac Jacob Vivek Modi
PGDM-RM (2007-09)
Roll no. 22

K.J. Somaiya Institute of Management Studies & Research

 Brand building through online advertising

Abstract:
Branding on the internet has received increasing attention in recent years as mainstream
advertisers show growing interest in utilizing the online medium for building and
extending their valuable brands online. A unique advertising approach for enhancing
brand equity in the online environment is the design of dedicated websites for brands.
Online advertising has been with us for over 10 years. During that time two different
paradigms have characterized the way the effectiveness of online advertising has been
assessed: brand building or direct response. In general the direct response paradigm has
become the yardstick of online advertising success due to the universal measurement of
click-through. This article proposes that the two paradigms are not contradictory but are
in fact complementary and that the applicability of either model depends on the mindset
of the audience as much as the intent of the advertisement. The article outlines a
conceptual framework that integrates an established brand equity model with different
stages of the purchase process and then uses existing learning, new research data, and
case studies to illustrate the various ways in which online advertising can help build
brands and increase the probability of purchase.

Introduction:
The first simple .static banner appeared on Hot-Wired in 1994. The advertisement asked,
"Have you ever clicked your mouse right here?" and an arrow pointed to a button that
stated "You will." When people clicked on the button, they were taken to the AT&T site.
The Internet revolution dominates global society. Nowhere has the impact been felt more
strongly than in brand management. Internet advertising has rapidly become a new
popular communication medium in the market. Today there are thousands of Web sites
created by companies to promote their products and services and to perform other
marketing functions, such as corporate image building, after-sales supporting services
and relationship building with customers. Today’s technology has made it easier for
customers to communicate their opinions to large audiences through blogs and online
reviews. As a result, consumers have become more influential in shaping brands.
Marketers now have an incredible chance to enlist people in building their brands by

2
 Brand building through online advertising

getting them blogging about them, so companies are courting these online communities.
But it's a little scary for companies, because they don't exactly know what will happen,
and they can lose control of their brands if they're not careful. Companies have to be
much better at making sure that what they do always lives up to their brand.

Literature Review:
With the introduction of new communication tools such as direct-e-mail, Internet
promotions, online loyalty programs and the like, the Net is increasingly being
recognized by companies as an important element of an effective brand-building plan.
Brand-building on the Internet has also seen a spurt in the recent years with the
emergence of specialized online brand-building firms. While the concept is gaining
widespread recognition in countries such as the US and Western Europe where the
penetration of the Internet is very high

Online advertising has been with us for over 10 years. During that time two different
paradigms have characterized the way the effectiveness of online advertising has been
assessed: brand building or direct response. In general the direct response paradigm has
become the yardstick of online advertising success due to the universal measurement of
click-through. This article proposes that the two paradigms are not contradictory but are
in fact complementary and that the applicability of either model depends on the mindset
of the audience as much as the intent of the advertisement.
In February 2001 Morgan Stanley report suggests that even the much-maligned banner ad
is more effective at generating brand recall and brand interest than ads on TV or in
magazines or newspapers. According to the report, consumers show a 27 per cent greater
ability to recall a brand after seeing an Internet ad than earlier – compared with a 26 per
cent increase with magazines, 23 per cent with newspapers, and 17 per cent with
television. What’s more, advertisers are finding that the cost of advertising online is
considerably lower than advertising in other media. Morgan Stanley’s analysis shows that
the price of online advertising works out to about $3.50 per thousand ad impressions or
page views (also known as cost per mille, or CPM), for sites with broad general

3
 Brand building through online advertising

audiences and about 10 or 20 times that amount for sites with more desirable audiences.
The corresponding rates are $19 for daily newspapers and $16 for prime time TV.

Online marketing goal/measurement hierarchy

The diagram suggests that if cost were no object and all online options were available
Get reach and increase awareness
of the brand’s promise with display
advertising. This should be easy —
just brand and shoot the message to
millions of people (with adequate
frequency). Paid online video ad
inventory is in tight supply right
now so that may limit its reach.
Search could help you in the short
term, but its brand building power
may be quite small.

The web: shopping environment or communication medium

Most studies reported in the public domain base sought to prove the efficacy of online
advertising using either CTR or survey response. Few have considered the role of the
audience and their intended use of the medium on what response is most relevant or
likely to be observed. The audience is usually considered as something to be defined by
demographics rather than mindset and yet the goals of the individual web user when they
encounter an advertisement will likely have more influence on behavioral response than
advertising message, format, or targeting. This article proposes that people who are
actively shopping in a category will be more predisposed to engage and click on
advertisements than those who are not. The proportion of people who are actively
considering a purchase at a specific point in time differs dramatically from category to
category.

4
 Brand building through online advertising

Online advertising builds brand consideration

It online advertising can be proven to increase brand consideration, it is reasonable
assumption that it has contributed to at least the first three stages of our conceptual
framework. An increase in consideration would imply that people had at least found the
brand relevant to their needs and worth checking out.There is no doubt that online
advertising can increase brand consideration.

Creating brand websites for brand building – an optimization approach

Most brand custodians recognize the power of the web as a tool for branding. The
versatility that technology provides, the ease of operation that the web offers, the
immense amount of relevant information that can be communicated simply yet impact
fully gives brand custodians good reasons to set up websites for their brands. (These
websites are called ‘brand’ websites or ‘branding’ websites.) Often it is the desire to
maximize the impact from the website that makes brand custodians try too hard and the
result is often a brand website that delivers a brand experience that is under par.

Following points can make a powerful brand websites

Express the brand’s personality: The ease with which brands can communicate their
personality through their website is amazing (though most people opt for the tougher
more complex approach). Identity and personality can be conjured up through simple
effects. Something as simple as the voice of the celebrity endorsing the brand welcoming
the site visitor to the site could itself have a powerful impact on the site visitor.

Content first, tech next: It is not always essential to have a hi-techno scream blast effect
on site visitors

Emphasize differentiation: Research indicates that most brands derive their equity from
their differentiation from competition. The brand’s website needs to drive this
differentiation home to build on this which is the basis of the consumer-brand
relationship.

5
 Brand building through online advertising

Ensure that the site reflects the brand’s values: Every brand has a unique set of values
that form its very essence. Communicating these values through the website is of
paramount importance as this is the charter of the brand.

Product specifications: Many prospective consumers want to know the product

specifications of brands. Knowing the tolerance levels for industrial products, side effects
for healthcare formulations, presence of a specific ingredient for edible products, etc is
critical for decision-making.

Best uses: It is commonly believed that no one knows how to get the best out of a brand
more than the company manufacturing the brand.

Suggest more uses for the brand: Informing consumers of more uses for the brand helps
to increase brand usage and consequently drives higher sales. But importantly this
information is of great use to consumers who are comfortable with the usage of a brand.

Education related to the need satisfied: One of the areas where many marketers are short
sighted is that they are so pre-occupied in the ir marketing function that they forget /do
not recognize the fact that consumers buy their brand to satisfy a need.

Brand heritage: There are many brands that have an interesting heritage but do not speak
of it on the site, not knowing that it makes for interesting reading as well as enhances the
brand’s credibility.

Give out interesting news about the brand: Brand extensions, forthcoming events,
celebrities coming on board need to be up on the site.

Who else uses the brand: Consumers derive great satisfaction in using brands that
celebrities use. Often this sense of satisfaction is enhanced if the celebrity is not paid to
endorse the brand.

6
 Brand building through online advertising

Give interesting anecdotes about the brand: Many brands have witnessed interesting
incidents that have gone on to become the brand’s folklore.

Database creation: A common fault many big brands commit is asking site visitors for
email ids without having a definite plan of how to use these in the near future.

Ask for suggestions and reward them: Asking for suggestions is a sign of showing that
the brand is not bigger than its well wishers.

Ask for feedback and set deadlines for response: The feedback section of most sites is
often the section that causes the most frustration with feedback either not responded to in
a timely manner or just plain ignored.

Careers etiquette: Brands that have a careers section need to be discreet in the way they
handle this section. People responding to the careers section can feel slighted if they do
not receive any response for a while or ever.

Allow business associates to contact you: A good website offers something for all its
audiences. Giving prospective business associates an opportunity to communicate with
the brand makes for common sense marketing.

Findings
Data has collected through both Primary and secondary research in which 100 sample
was collected through questioner and online survey while few 10 blogs has collected as
secondary data collection. Questioner has attached in annexure

7
 Brand building through online advertising

Following are the interpretations of the data collected

1) Do you use internet?

No
8%

Yes
92%

So 92 % people from sample has used internet in some means

2) Do you see the ads or Pop-Ups on internet while surfing internet?

22% 18%

Yes
No
60%
Sometimes

60% people just close the pop-ups while 18% of them just give it a look and check the
detail from its website as it is a means to attract people to website
3) Do you visit websites of any company or product before buying it?

22%

54% Yes
24% No
Sometimes

Here medium to high value product are taken into consideration and 54% people visits
the site and check the feature contact detail etc while 22% people do it sometime.

8
 Brand building through online advertising

4) Does the quality of Ad or website effects your decision of buying?

34%
42%
Yes
No
24%
Sometimes

Here 42% people thinks that quality of Ad or website effects the decision of buying
certain products and service as it depends upon the value and utility of that product while
24% thinks that it does not effects the buying decision.
5) Do you check product/company review online before buying any products?

32%
54% Yes

14% No
Sometimes

Now here again its depends upon the value of the product or service and it is assumed for
medium to high value but almost 86% people in some means check the review and
internet is the simplest means for it.
6) How would you like to contact company incase of any problem in product/service
Please rate in descending order
Call Center
5%
15%
Online
48% requests/Email/Website
Personal visit to service
center
32%
Other

Here people 48% people rated call-center as first option as it is convenient to give a call
while 32% respondents were choose online options as their first choice as they can do it
easily while doing their other work at office and took lesser time.

9
 Brand building through online advertising

7) Do you Post your experience regarding product/service on Internet Blogs?

7%
28%

Yes

65% No
Sometimes

As people start using internet but only 28% people post their experience on blogs about
certain product and services while 7% people do it sometimes when they have
experienced best or worst.
8) What do you generally check on the website of any company/product?
12%
31% Product feature
About company
Contact us/Store locator
45% other
12%

45% respondent generally logon to website to check store location and to find contact
detail in terms of address or service contact no. while 31% people visits website to check
product/service feature and 12% people logon for other detail like promotion etc.
9) Are you login in to different contests or promotional schemes running by brand
online

9%
26%

Yes
No
65%
Sometimes

65% respondent does not participate in online contests

10
 Brand building through online advertising

10) Effect of age

8% 6%
16% Below 20 Years
20-30 years
30-40 years
40 years and above
70%

Now it shows that generally major internet users who care about brand are aged between
18 to 40 years since they have used internet day-in day-out in some means.

11) Occupation effect

Housewives
4%
0% Service

14% 6%
Business
36%
Students

22% Self-employed
Professional
18%
Retired

Others

Here we can easily say that most of the internet users are from service background
followed by students and business professionals.

11
 Brand building through online advertising

Conclusion
This article relates the response to online advertising back to a conceptual framework of
brand equity and purchasing. It proposes that findings from both attitudinal response
measured by surveys and behavioral response measured by click through can be
reconciled with the proposed model. The article outlines five levels of attitudinal equity,
each proven to relate to a higher probability of purchase for the brand, and demonstrates
how online advertising can move people from one level to the next based on the
impression created by the exposure. This effect is suggested to occur even when people
are not actively shopping for a purchase online. In the case of the luxury car streaming
advertisement, the statistically significant difference between test and control cells
indicates that exposure to the advertisement had increased the perceived relevance of the
brand, resulting in higher purchase consideration.
The decision to set up a website for a brand is a strategic decision and requires
commitment and attention to make the effort successful. Like any other strategic
initiative – the website requires adequate management time and resources to yield the
requisite benefits. A website backed by insufficient resources could be counterproductive
to the brand. As the saying goes ‘The bigger the weapon the more dangerous it is when it
backfires’.

12
 Brand building through online advertising

References

1. Using Brand Websites to Build Brands Online: A Product versus Service Brand Comparison. By:
Dou, Wenyu, Krishnamurthy, Sandeep, Journal of Advertising Research, 00218499, Jun2007,
Vol. 47, Issue 2

2. The power of the (Net-savvy) people. By: Hendershot, Steve, Crain's Chicago Business,
01496956, 1/15/2007, Vol. 30, Issue 3

3. Web Tools That Can Help Marketers Build Brands. njbiz, 10/9/2006, Vol. 19 Issue 41,
Special section p22-22, 1p; (AN 22843126)

4. Maximize the market value with a company website by Hudson valley business journal

5. The Internet Revolution. By: Plummer, Joseph T.. Journal of Advertising Research, Jun2007, Vol.
47 Issue 2, p129-129, 1p

6. The British Journal of Administrative Management; Oct/Nov 2007; ABI/INFORM Globalpg. 13

7. The Content of Internet Advertisements and its Impact on awareness and Selling Performance
Journal of Marketing Management 2002,18, 693-719

8. The Internet Shopper by Journal of advertising research NAVEEN DONTHU and ADRIANA
GARCIA

9. ARE UNCLICKED ADS WASTED? ENDURING EFFECTS OF BANNER AND POP-UP AD

EXPOSURES ON BRAND MEMORY AND ATTITUDES BY
Patrali Chatterjee. Journal of Electronic Commerce Research. Long Beach: 2008. Vol. 9, Iss. 1;
pg. 51, 11 pgs

10. Banner advertisement and Web site congruity effects on consumer Web site perceptions BY Eric
J Newman, Donald E Stem Jr, David E Sprott. Industrial Management + Data Systems.
Wembley: 2004. Vol. 104, Iss. 3/4; pg. 273

11. UNDERSTANDING THE ROLE OF RELEVANCE AND INTERACTIVITY ON CUSTOMER

ATTITUDES TOWARD REPETITIVE ONLINE ADVERTISING By Damon E Campbell,
Journal of Electronic Commerce Research. Long Beach: 2008. Vol. 9, Iss. 1; pg. 62, 15 pgs

12. Ten Years of Learning on How OnlineAdvertising Buiids Brands by NIGEL HOLDS Millward Brown
JOURNAL OF ADVERTISING RESEARCH JUNE 2005 DOI; 10.1017/S0021849905050270 Vol. 9,
Iss. 1; pg. 51, 11 pgs

13. Creating powerful brand websites – a common sense approach by Kartikeya Kompella Vol.
19
Issue 41, Special section p22-22, 1p

14. Success with online advertising Branding, not clicks, is the issue by KIRON KASBEKAR Managing
Director, The Information Company Pvt Ltd

13
 Brand building through online advertising

Annexure

QUESTIONNAIRE

Title: Brand building through online advertising

By students of K.J.Somaiya Institute of Management Studies and Research

PGDM-retail management

Objective: Conducting academic research to know effect of internet advertising and

website on Brand building

1) Do you use internet

Yes-1 No-2

2) Do you see the ads or Pop-Ups on internet while surfing internet?

Yes-1 NO -2
Sometimes-3

3) Do you visit websites of any company or product before buying it?

Yes-1 NO -2
Sometimes-3

4) Does the quality of Ad or website effects your decision of buying?

Yes-1 NO -2
Sometimes-3

5) Do you check product/company review online before buying any products?

Yes-1 NO -2
Sometimes-3

6) How would you like to contact company incase of any problem in product/service
Please rate in descending order

Call center
Online request/Email/Website

14
 Brand building through online advertising

Personal visit to service center

Other

7) Do you Post your experience regarding product/service on Internet Blogs?

Yes-1 NO -2
Sometimes-3

8) What do you generally check on the website of any company/product ?

Product feature-1 About company -2

Contact us/Store Locator-3 Promotion and schemes-4
Other Please specify
……………………….

9) Are you login in to different contests or promotional schemes running by brand online

Yes-1 NO -2
Sometimes-3

1. Personal Details

Name: Age:

Address: Pin code:

Tel no.: Mobile: Email:

Male – 1

Female – 2

Occupation:

Housewife – 1

Service -2
15
 Brand building through online advertising

Business – 3

Student – 4

Self-employed Professional – 5

Retired – 6

Others – 7

Note: We would like to emphasize that we are not selling anything. This is purely an
academic research and you will not receive any follow-ups from this research. All
information you provided will be treated as confidential.

16