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SLOVAK UNIVERSITY OF AGRICULTURE IN NITRA
FACULTY OF ECONOMICS AND MANAGEMENT
1132206
ONLINE ADVERTISEMENTS AND THEIR INFLUENCE
ON THE CONSUMERS
2011
Tibor Cseri
SLOVAK UNIVERSITY OF AGRICULTURE IN NITRA
FACULTY OF ECONOMICS AND MANAGEMENT
ONLINE ADVERTISEMENTS AND THEIR INFLUENCE ON
THE CONSUMERS
Bachelor’s thesis
Study programme:
International business with agrarian
commodities
Study specialization:
6221700 International Economic Relations
Department:
Department of Marketing
Supervisor:
Ing. Patrik Rovný, PhD.
Nitra 2011
Tibor Cseri
Declaration of Originality
I, the undersigned Tibor Cseri, solemnly declare that the thesis „Online
advertisements and their influence on the consumers“ is a result of my own independent
research and was written solely by me using the literature and resources listed in
Bibliography.
I am aware of legal conseqences in case the data are not true and correct to the
best of my knowledge.
May 9, 2011 in Nitra
................................................
Signature
Acknowledgments
I would like to express my gratitude towards my supervisor Ing. Patrik Rovný. He
was guiding me with many helpful advices and was willing to sacrifice his time, for the
contribution to this work, what I truly appreciated.
Abstrakt (Slovak)
V 21. storočí ľudia trávia stále viac a viac voľného čašu surfovaním na nete, čo je
veľmi atraktívne pre obchodníkov aby vzbudili pozornosť spotrebiteľa. Hlavným
cieľom tejto bakalárskej práce bolo preskúmanie internetových reklám a ich vplyv na
spotrebiteľa a tiež zistiť ako užívatelia internetu vnímajú a reagujú na jednotlivé formy
reklám. Prostriedkom výskumu boli dotazníky rozdané užívateľom internetu, z ktorých
boli výsledky odvodené. Získané výsledky ukázali veľmi pozitívny prístup užívateľov k
niekoľkým druhom internetovej reklamy. Hodnota práce spočíva v pochopení
spotrebiteľského vnímania on-line reklamy. Práca sa bližšie zaoberá sociálnou sieťou
Facebook a jeho publikačnými metódami reklám z ktorých banery sú najpodrobnejšie
opísané. Mojim zámerom bolo tiež identifikovať spôsoby, ako by mohol Facebook jeho
reklamy prispôsobiť užívateľom tak aby boli ešte efektívnejšie.
Kľúčové slová: online reklamy, facebook, cieľové zameranie, spotrebiteľ, vplyv
Abstract (English)
Consumers of the 21st century spend more and more of their free time online,
which is appealing for marketers to reach their attention through the internet. The main
objective of the Bachelor’s thesis was to examine online advertising influence on the
consumers and also identify how the internet users perceive and react to the different
forms of advertisements. There was a questioner created and handed out to online users
from which the results were deducted. The obtained results showed a very positive
attitude of users towards the several types of online advertisements. The value of the
work is concluded in the better understanding of the consumer attitude towards online
ads. The work takes a closer look to the advertising forms of Facebook, from which the
banners and their targets get the biggest attention. My intention was also to identify the
methods how Facebook could make its ads even more appealing to its users and gain
even bigger effectiveness with its advertisements.
Key words: online advertisements, facebook, targeting, consumer, influence
Table of contents
Table of contents ............................................................................................................. 5
List of illustrations, graphs, and tables ......................................................................... 7
Introduction ..................................................................................................................... 8
1 Theoretical background.......................................................................................... 10
1.1
Introduction to Marketing.................................................................................... 10
1.1.1
Definition of Marketing and Online Marketing ........................................... 10
1.1.2
Brief historical outline of Marketing ........................................................... 11
1.2
Advertising and its development ......................................................................... 13
1.2.1
Advertisements online ................................................................................. 13
1.2.2
Forms of online ads ...................................................................................... 15
1.2.3
Advantages and disadvantages of Online Advertisements .......................... 18
1.3
Targeting and its online methods ........................................................................ 19
1.3.1
1.4
Behavioral Targeting ................................................................................... 20
Consumer perception of online ads ..................................................................... 20
2 Aim of the work ....................................................................................................... 22
3 Materials and Methods ........................................................................................... 23
3.1
Marketing research analyzing the consumer influence by online ads on
Facebook .................................................................................................................. 23
3.1.1
Setting the aims of the investigation ............................................................ 23
3.1.2
Predictions about the outcomes of some problematic questions ................. 23
3.1.3
Working procedure and methodology of the investigation .......................... 23
3.1.4
Characteristics of the questionnaire ............................................................. 24
3.1.5
The way of collecting data and their sources ............................................... 24
4 Results ...................................................................................................................... 26
4.1
Characteristics of the social network Facebook .................................................. 26
4.1.1
Brief History ................................................................................................ 26
4.1.2
The company’s mission and success ............................................................ 27
4.2
Patterns of advertising forms on Facebook ......................................................... 27
4.2.1
4.3
Targeted ads on Facebook ........................................................................... 28
Analysis of data and interpretation of results ...................................................... 28
4.3.1
Demographic analysis of the respondents.................................................... 28
4.3.2
Questions connected to the general forms of online ads .............................. 30
4.3.3
Specific questions related to the ads on Facebook ....................................... 36
5 Discussion ................................................................................................................. 41
5.1
Evaluation of the predicted problematic questions ............................................. 41
5.2
Problem solution .................................................................................................. 41
Conclusion ..................................................................................................................... 44
Bibliography .................................................................................................................. 46
Appendices ..................................................................................................................... 49
List of illustrations, graphs, and tables
Figure 1
The four main eras of Marketing…………………………………… 11
Figure 2
Division of advertising forms…………………................................ 13
Figure 3
Evolving Company Orientations…………………………………… 14
Figure 4
Early Banner Ad for AT&T from 1944………………………....
Figure 5
The Development of Facebook……………………………………… 26
Graph 1
Proportion of gender…………………………………………………. 29
Graph 2
Division according to age……………………………………………. 29
Graph 3
Classification acc. to the respondent’s occupation………………….. 30
Table 1
Associations of respondents…………………………………………. 32
Table 2
Ads attracting attention………………………………………………. 33
7
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Introduction
“In advertising, not to be different is virtual suicide.”
William Bernbach
Advertisements are keen “ingredients” for developing a successful company.
Their major role is to attract attention, bring the customer to the firm. In the 21st
century, consumers do not notice casual advertising any more. The ways which were
used some years ago, might not bring the same results now. As the world has been
continually changing, so have been the people with their perspectives and needs. People
growing up in the informational era need to be dealt differently.
It takes time and commitment to understand consumers and their behavior, but if
it is achieved the hard work will be paid back many times. The vast majority of
advertising forms is wasting of money and brings no effect at all. Therefore, the market
should be explored and analyzed first, and then the actions can be taken. The consumers
of the newest era have different day to day life and programs. Their everyday activities
involve surfing on the net, checking e-mails, and socializing through different online
networks. These are the new opportunities for marketers, where to reach consumer
attention and build up relationships.
The advertisements being really effective must be consumer friendly, showing
no aggressive approach because these are identified by the consumer right the way,
which turn the consumer away from the company. Nor they shall be grey and unseen.
As it was mentioned, it is not an easy job to find the right means and forms. Perhaps,
there out in the online world, it is now easier than ever before through such huge social
network as Facebook is.
The aims of the thesis were certainly identifying the most relevant forms of ads,
examine consumers and their attitude towards ads, and the most important aim was to
analyze the ads and fan pages on facebook, whether they meet the conceptions of
companies and individuals to advertise in such way.
The value of the work is embodied in the identification of the most effective
online ads at the present time. Also, my work makes suggestions to companies which
online ads to use. For them, the understanding of consumer reactions and perception of
ads trough my own research could be a significant piece of information that can be
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processed even further. The practical part intends to analyze consumer behavior on
Facebook with measuring and evaluating their responses to the ads found in the
network. My piece of work could serve as a basis for Facebook to develop an even more
sophisticated research by which Facebook could gain profit and make the best social
network even better.
The core of the thesis is divided into five main chapters. The first chapter is the
theoretical background, which has the role of providing the basic theoretical knowledge
relating to online advertising. The sources for the creation of the framework were
gathered mostly from contemporary abroad literature by competent authors.
The second chapter has the role to introduce the aim of the work. The aim is
clearly and simply defined. This section comprises the sub aims, which help in the
development of the main aims.
The third chapter is assigned to the methods of investigation. It holds
information about the way of preparation and assimilation of the practical part. The
third chapter names the primary and secondary sources for the investigation and the
procedure of the entire research.
The fourth chapter is the most important from the standpoint of added value.
This part represents the demonstration and interpretation of results. But before the
actual outcome is presented, the characteristics of the investigated object –facebook- are
put in writing. The process of collecting data and their sources are present as well.
The fifth chapter is devoted to the discussion, where the own resolution of the
aims are carried out and the the emerged unclear questions are answered as well.
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1 Theoretical background
1.1 Introduction to Marketing
1.1.1 Definition of Marketing and Online Marketing
There exist many definitions of marketing; most of them are entirely exact and
some are less precise. To be professional, the two most common and used definitions
are the ones that have been created by the American Marketing Association (AMA) and
the Chartered Institute of Marketing (CIM).
The CIM defines “The management process, which identifies, anticipates and
satisfies customer requirements efficiently and profitably”. As David Pickton identifies,
the definition “stresses the need for management action”. Then the product must also
meet customer needs physically, psychologically, financially and also time wise
(Pickton, 2010). These four listed qualities are summarized in two meaningful words:
efficiency and profitability. The CIM tried manifestly to create a short and into the point
definition.
The second definition by the AMA looks like: “Marketing is an organizational
function and a set of processes for creating, communicating, and delivering value to
customers and for managing customer relationships in ways that benefit the
organization and its stakeholders.” This definition had been recognized worldwide until
2004, and then the AMA gave a new meaning to the word marketing by associating it
into these new words: “Marketing is the activity, set of institutions, and processes for
creating, communicating, delivering, and exchanging offerings that have value for
customers, clients, partners, and society at large. The most profound change to the
definition for marketing is that marketing is understood as a “broader activity” states
Nancy Costopulos, Chief Marketing Officer of the American Marketing Association.
He also claims, “Marketing is no longer a function – it is an educational process”.
(AMA, 2008)
As the paper intends to give an overview and examine online advertisements,
there is also need for the definition of online marketing. Simply put, online marketing
shares all the properties and actions that general marketing intends to cover, except the
fact that its presence is exclusively internet based. The following definition can be
drawn from the AMA’s online dictionary: Online Marketing is a „term referring to the
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Internet and e-mail based aspects of a marketing campaign. Can incorporate banner ads,
e-mail marketing, search engine optimization, e-commerce and other tools” (AMA,
2011). The mentioned association defines rather online advertisements than online
marketing. In the book called Techniques for online Marketing, the author insists that
online marketing is more than putting advertising online. “Marketing online includes
such areas as communicating with your customers, promoting your business or product
online, and making sure that your website content is useful and up to date” (Goose,
n.d.). From this contradictory definition it must be clear that there should be difference
between online marketing and online advertising.
1.1.2 Brief historical outline of Marketing
“The essence of marketing is the exchange process, in which two or more parties
give something of value to each other to satisfy perceived needs. Often people exchange
money for tangible goods such as groceries, clothes, a car, or a house. In other
situations, they exchange money for intangible services, such as dinner in a restaurant.
Although marketing has always been a part of business, its importance has varied
greatly“. As Louis Boone identifies, there are four main eras in the history of marketing.
These are the production era, the sales era, the marketing era, and the relationship era.
(Boone, 2011)
ERA
Production
Sales
Marketing
Relationship
„Long-term
PREVAILING
„A good
„Creative
„The
relationships
ATTITUTED
product will
advertising
consumer
with customers
sell itself.”
and selling
rules! Find a
and other
will overcome
need and fill
partners lead
consumers’
it.”
to success.”
since 1950s
since 1990s
resistance
and persuade
to buy.”
APPROXIMATE
prior to 1920s
prior to 1950s
TIME PERIOD
Figure 1 The four main eras of Marketing
Source: retrieved from the book: Contemporary Marketing by L. Boone
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The Production Era dates back to the beginning of 20th century. In these times
most firms focused on production. First, they produced then looked for buyers. The
main principle was that a high-quality product would sell itself. As Henry Ford said
“They (customers) can have any color they want, as long as it’s black”. The production
shortage allowed Mr. Ford to say such statements.
The Sales Era, had been dominating from 1920s to the 1950s when production
techniques became more sophisticated, which meant larger amount of output. The
customers had bigger choices to buy products. In these days, the sales orientation and
personal selling gained a bigger importance, where advertising was the tool by which
customers were persuaded to buy.
The Marketing Era was the concept ruling in the 1930s, when personal incomes
and consumer demand for products dropped rapidly that created a trend in business: a
shift in the focus from products and sales to satisfying customer needs. The so called
seller’s market – one in which there were more buyers for fewer goods and services had been gradually changing into buyer’s market – one in which there were more goods
and services than people willing to buy them.
The Relationship Era started to gain importance during the final decade of the 20th
century and continued to grow its importance. It involves developing long-term, value
added relationship over time with customers and suppliers. Strategic alliances and
partnerships among manufacturers, retailers, and suppliers are often beneficial for all
parties. (Boone, 2011)
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1.2 Advertising and its development
The relationship era was not only the period when the focus moved to the
customer, but also the era of new forms of advertising methods. Beside the traditional
forms of advertising a new kind of method appeared, see figure 1. As the internet and
online technology has developed in the late 20s, “so has the technology that is used to
create and serve advertising online” argues Solomon. Online advertising rapidly
followed the developing Internet. And, as consumers are increasingly spending more
time online, and hours spent on the Internet start to eclipse hours spent watching
television, the medium becomes increasingly important to any advertiser”. (Solomon,
2009)
ADVERTISING
Traditional Advertising
Online Advertising
Conventional
Advertising
Direct
Advertising
print ads
TV-commercials
direct mailings
web ads,
pop-up windows
(radio commercials
billboards, etc.)
(coupon ads, etc.)
(web sites, e-mails,news
letters, direct group
mailings, infomercials)
2. Figure: Division of advertising forms
Source: retrieved from the book Web advertising by Anja Janoschka
1.2.1 Advertisements online
Online Advertisements are one of the newest forms of ads and belonging to the
most sophisticated communication models. Michael Solomon, in his book, takes the
reader through the basics of online advertising by writing: “Online advertising includes
a spectrum of text, still-image, animated graphics, streaming-video, and interactive
advertising on the Web. Advertisers create their ad and then find a Web site or service
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to host the ad” (Solomon, 2009). The mentioned ad might be a so called pop-up window
or a banner embedded in the content of the site. The site might show the actual ad more
times a day or just in a certain time period. A different aspect that he identifies is the
inexpensiveness of the online ads, and also their effectiveness. These are all types,
forms, qualities and varieties of online ads that will be examined further, but first take a
look onto the development of advertising and promotion.
1.2.1.1
Business-to-Consumer (B2C) Online Marketing
The four main online marketing domains include B2C (business-to-consumer),
B2B (business-to-business), C2C (consumer-to-consumer) and C2B (consumer-tobusiness) demonstrated by the figure below.
Initiated by
business
Initiated by
consumer
Targeted to
consumers
Targeted to
business
B2C
B2B
(business-toconsumer)
(business-tobusiness)
C2C
C2B
(consumer-toconsumer)
(consumer-tobusiness)
Figure 3: Evolving Company Orientations
Source: Retrieved from the book called Principles of marketing by Phillip Kotler
The commercial press has paid the most attention to business-to-consumer
(B2C) online marketing – business selling goods and services online to final consumers.
Today’s consumers can buy almost anything online – from clothing, kitchen gadgets,
and airline tickets to computers and cars. Online consumer purchase continues to grow
at a healthy rate.
Perhaps more importantly, the Internet now influences 35 percent of total retail
sales. Sales transacted online plus those carried out offline, but encouraged by online
research. By 2010, the Internet influenced a staggering 50 percent of total retail sales.
Thus, smart marketers are employing integrated multichannel strategies that use the
Web to drive sales to other marketing channels. (Kotler, 2011)
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As more and more people find their way to the Web, the population of online
consumers is becoming more mainstream and diverse. The Web now offers marketers a
palette of different kinds of consumer seeking different kinds of online experiences.
However, Internet consumers still differ from traditional offline consumers in their
approaches in purchasing and in their responses to marketing. In the Internet exchange
process, customer initiate and control the contact. Traditional marketing targets a
somewhat passive audience. In contrast, online marketing targets people who actively
select which Web sites they will visit and what marketing information they will receive
about which products and under what conditions. Thus, the new world of online
marketing requires new marketing approaches. People now go online to order a wide
range of goods- clothing from Gap, books or electronics from Amazon.com, furniture
from Ethan Allen or even home mortgages from Quicken Loans.” (Kotler, 2011)
1.2.2 Forms of online ads
Internet uses a variety of advertising formats. Generally, they differ in terms of
style, expenditure which factors are closely connected with the ads effectiveness. To
make it clear at the beginning, the two major forms of online advertising – with the
share of 70 percent or more – were e-mail and search engine advertising in the year
2008. As the internet has developed there have been arising new types and forms of
online advertising.
In the book called Internet marketing: a practical approach the ad formats are
generally divided into two main groups. The reasoning for the simple division is that
“the e-marketer for online ads is determined by two issues, (1) the objectives of the ad,
and (2) where they are to be displayed. The former is a decision that is made by the
organization but the second – though there may be a preference – is determined by the
publishers of the ad-carrying sites” (Charlesworth, 2009). The author supports his idea
by reasoning with the example of the big three search engines. Advertisers are allowed
only to include ads that are so called text-only ads. Therefore if one wants to advertise
there an ad, he might not include images (this was true at the time of writing – mid
2008). On the other hand, portals often insist on banner ads. Ad formats are, therefore
put into two groups that are text-only and banner ads that include images as well.
Although, Alan Charlesworth stresses that the title banner can be confusing in that a
banner could actually present only textual content to the web user – in this case the
differentiation is technical – describing the type of file used on the web page.
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A really great division of online ads was created by Terence Shimp, who
identifies the following categories and also examines each one by one: Websites,
Banner Ads and Rich Media Formats, Blogs-Podcasts-Social Networks, E-mail, Search
Engine Advertising and Advertising via Behavioral Targeting (Shimp, 2008). The
certain groups contain some sub-forms of online ads, which will be defined and
introduced later on.

Web Sites
Web sites of companies are on their own great tools of advertisements. They represent
all the values, goals and image of the company at one place. A brand’s Web site is
invaluable advertising conveying information about the brand, its character, and its
promotional offerings. Web sites can be considered the centerpiece of companies’
online advertising efforts, with other advertising formats simply serving to drive traffic
to their Web sites. Hence, sites are as some keys to successfully integrate online
advertising programs. (Shimp, 2008)

Banner ads and Rich Media Formats
Defining with G. Schneider words: “A banner ad is a small rectangular object on a Web
page that displays a stationary or moving graphic and includes a hyperlink to the
advertiser’s Web site” (Schneider, 2008). They represent the most popular and widely
used advertising format on the internet. In the near past they have been commonly
renamed to online display ads. One of the reasons might be that people have developed
negative perception about banner ads and a new term means new association. They
were first used in 1994, but their cost exceeded its effectiveness that time. When the
prices dropped they made their comeback and so represent a reasonably priced online
advertising option. The Click-through rates (CTR) to banner ads are very low, with an
average less than 0.3 percent. This does not necessarily imply that companies do not
benefit from banner advertising. (Charlesworth, 2009)
Figure 4: An Early Banner Ad for AT&T from 1944
Source: Online book called: eMarketing by Rob Strokes
http://www.flatworldknowledge.com/pub/emarketing/106209#web-106209
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Susan K. Jones insists that rich media is the savior of banner ads, in her words “If
anything can enhance banner advertising, it is rich media” (Jones, 2008). Rich media
adds an entirely new dimension to banner ads. It clothes banners into a new progressive
dress. This “dress” has the properties of motion, sound, and interactivity.

E-mails
To describe E-mail Marketing – “it is extremely cost efficient, targeted, and
measurable…” Simms Jenkins. This form of advertising is precisely targeted, can be
exactly measured, it’s immediate and works well. Contrary, there is the dark side of emails – that are unwanted and unsolicited - as we call them spams. These messages
have produced consumer irritation and frustration. But again, when e-mails are used
properly, they can be the ultimate marketing medium. (Kotler, 2010)

Search Engine ads
“Search Engine promotion will always remain as one of the most vital website
marketing methods. Search Engine algorithms establish which factors determine the
sites that obtain top rankings. There algorithms are relentlessly altering which is the
reason search engine result are continuously changing. Search engines generate over 90
percent of traffic to all websites; it becomes evident that achieving top rankings should
be a site owner’s top objective.” (Dunford, 2008)

Social Networks
„The web has revolutionized the way people network” stresses Anne Rutledge. Around
the world, hundreds of millions of people use social networking sites in a single month.
They have blogs, and listen to rather podcasts than radio. (Rutledge, 2008)
“The term social media refers to the collection of technologies that capture
communication, content, and so on across individuals, their social networks. Examples
of social media include social networking sites like Facebook and Twitter, blogging
technologies like TypePad and WordPress, crowd sourcing products like Wikipedia,
photo and video sharing sites Flickr and Youtube, and others. These technologies help
user easily create content on the Internet and share it with others. The groups of people,
communities, who share these common interest, perspective and background, are called
social networks” (Chris Treadaway). As Anne Rutledge describes “The most effective
social network is all about building relationships, engaging with others, and developing
solid word-of-mouth marketing”, which is currently no doubly Facebook.
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1.2.2.1
The Evolution of Social Networks
William M. Pride and O.C. Ferrell discuss that as the Internet technology has
developed, digital media marketers have to continually adapt to new technologies and
changing consumer needs. As they go further, they identify that there are so many new
technologies emerging that makes digital media channels die off and new ones
emerging. Social networks are not exceptions either. The very first social networks as
Six Degrees failed when they could not catch on with general public. Friendster, a
different early social network, was easily beaten down by MySpace and eventually
Facebook was created. As time goes by, digital media becomes more sophisticated in
order to capture consumer attention. Social networks which cannot keep up the race
with consumer needs eventually fail. (Pride, 2010)
Becoming more proficient in online media represents a challenging task for
marketers, especially those traditional means of marketing. Because of this fact, it is
vital that marketers concentrate on the changing social behavior of consumers and how
they interact with digital media. Social networking, as it becomes broader and more
frequently used, is changing with the ways how consumers reach and use information.
Consumers have access to more information than ever before, and the usage of Internet
draws the average consumer even closer to the marketing process.
1.2.3 Advantages and disadvantages of Online Advertisements
Marketing is, at one side, about creating value for the consumer; on the other hand
what seems to be valuable for the marketers might not provide any plus to the buyer. To
see what makes unique the online advertising, let’s focus our attention to some key
qualities of these forms of ads. The properties, that make online advertising superior to
the other kinds of advertising, are reflected in the following points.

Measurability. Every time a user views or clicks on an online ad, it is recorded,
This makes it possible for advertisers to know exactly how many people are
viewing their ads, and how many people are following these ads to the desired
Web site. It also tells them when the interest in an ad is beginning to fade.

Rotation. If an ad is beginning to fade, the advertiser can pull it immediately, or
the advertiser can choose to rotate new ads into the slot. Advertisers can also
adjust the portions of an ad that are not getting attention.

Direct Contact with customers and Personalization. By simply clicking a
button on an ad or on an advertiser’s Web site, a customer can E-mail their
18
advertiser, download product information or sample, or even order a complete
product. The advertiser can also track the user’s ad viewing and product-buying
habits and personalize the ads for that particular user.

Interactivity. There are myriad possibilities here both for the ad and for the
final Web site that the ad leads to. For example, on the Web site, a car buyer
could click on different colors for a car that he or she is interested in or link from
the ad to an online auto magazine that has reviews on a certain model.

Cost. It is much cheaper to let the customer find information on a Web site than
it is to hire a salesperson. A downloaded or viewable sample costs the advertiser
nothing (beyond the basic cost of the Web site).

Unlimited Space. Once an advertiser can get a user to a Web site, then the
advertiser can use as much space as needed to present the products.
Contrary to the favorable conditions of online ads, they have their drawbacks as
well. The online advertising is a great tool, but only when it is used well. Marketers
identify two main problems concerned with online ads, which are the click-through rate
and the consumer resistance to the ads.

Click-Through. Another major problem is getting people to click on an ad.
Unlike TV ad, which will run whether or not viewers do anything, the product’s
Web site will not be seen at all unless the user clicks on the banner. With users
becoming more sophisticated, ads are being ignored and the click-through rate
continues to do down.
 Resistance of consumers. One of the solutions to get better click-through is to
make ads more exciting through greater use of multimedia and interactivity.
(Garrand, 2001)
1.3 Targeting and its online methods
The term “targeting” is derived from “target” and so “Targeting is the process
through which marketing communicators deliver messages more accurately and prevent
wasted coverage to prospects not included in the intended audience” (Micu, 2005).
Targeting refers to online advertising and is derived from banner advertising “and
characterizes targeted advertising effort on the internet”. The different forms of
targeting, which will be described below, manage the distribution of online advertising
by different criteria and “enable advertisers and media planners to indentify and target
customers in that way that waste coverage in online advertising can be reduced
19
significantly. The foundation of targeting online is user data, which is connected to the
user via different methods, e.g. the IP-address of the user or a cookie in the user’s
browser. (Klever, 2009)
The main targeting methods represent Geo Targeting, Prime-Time Targeting,
Technical Targeting, Profile Targeting, Contextual Targeting, Keyword targeting and
Behavior Targeting. The last from the targeting methods is examined below.
1.3.1 Behavioral Targeting
This kind of advertising method segments the consumers based on observed and
measured online data, including pages or sites that the users visit, content examined,
search inquiries entered, and ads clicked. This data is then combined with the time,
length and frequency of site visits. Behavioral targeting (BT) can lead to ad campaigns
that are more likely to persuade their audience. The CEO of online media network
Specific Media claims that compared to targeting by customer category (e.g., „sport
fans”) or by only looking at click-through data, behavioral targeting has doubled
marketing’s efficiency. For the public, it could mean that Internet ads become more
relevant to their needs (Lamb, 2011). As an example of it is present on Facebook with
its personalized ads connected to one’s interests, activities, age etc.
1.4 Consumer perception of online ads
Lars Perner (2010) discusses the issue of perception in consumer behavior. He
takes the reader through from the basics by writing “our perception is an approximation
of reality. Our brain attempts to make sense out of the stimuli to which we are
exposed” he continues his explanation with a simple example: “when we see a friend
three hundred feet away at his or her exact height; however, our perception is
sometimes “off”- for example, certain shapes of ice cream containers look like they
contain more ice-cream than rectangular ones with the same volume.” He means that
there are some things we perceive exactly the same way as they are; contrary there exist
such phenomenon that fade the truth or are misleading.
There is a big number of factors that influence the consumer’s perception. The
term exposure means the “extent to which we encounter a stimulus”, although exposure
itself is not enough to influence the consumer. The second key ingredient to success for
marketers is attention. As Lars Perner defines, attention “is actually a matter of degree
- our attention may be quite high when we read directions for getting an income tax
20
refund, but low when commercials come on during a television program”. He
immediately ads that even in the case the consumer attention is reached, if it is at a low
rate it has very little or even no influence at all. (Perner, 2010)
Two different factors, influencing how well the stimuli are noticed, are relevance
and repetition. The first stimulus is relevance. When customers have a choice what to
take, positive or negative stimulus, he will choose definitely the positive. In the case
when they are forced to the unpleasant stimuli, those get attention as well and
interestingly they are effective. The other very vital factor is repetition. Even, when a
stimulus is one rather with low priority with a big number of repetitions can be very
effective. (Perner, 2010)
When a company wants to succeed in online marketing, it is necessary for it to
know its customers. Knowing the customers perception and attitude towards online
advertisements is a key to attract attention. (Newman, 2004)
A very premature study of Gordon and Lima-Turner (1997) explored that users
perceive the online advertising differently as their characteristics change. In the case
when the online activity is information based, the ads should act entertaining and if their
purpose is transaction based, the advertising should be rather informative. The research
also demonstrates that “users are more positive towards relationship marketing with
targeted ads rather than randomly selected profiles.” (Gordon, 1997)
A different study of Korgaonkar and Wolin (2002) concludes that the fact
whether the online advertising is boring or enjoyable it really depends on the type of
consumer. The basic concept of their research was that they created some groups of
respondents according to the time they spent online. There were 3 groups identified:
heavy, medium and light users. The most positive attitudes had the heavy users towards
online ads, while the light users were rather drilled by the ads. As for the medium users
it was a kind of neutral standpoint. (Korgaonkar, 2002)
A more recent study shows that “internet user’s perception of online
advertisements and their level of interest is highly correlated with their attitude towards
the site where these advertisements appear, increasing the attitude and response towards
the advertisement itself” (Korgaonkar, 2002).
21
2 Aim of the work
The main purpose of this bachelor thesis is to examine online advertising
influence and how the internet users perceive and react to the different forms of
advertisements.
The sub-targets of the work are specified in the following points and also
questions for which I will try to answer in the part where results are shown.
1. Analyzing the influence of online advertisements generally. Internet users don’t surf
because of the ads, but when they are present in the online world are the ads perceived
positively? This part and also the second part were studied based on the experiences of
internet users, which were examined and later evaluated with the help of a
questionnaire.
2. To be more specific, one of the online environments for advertising is studied in
depth, which is the social network called Facebook. Facebook is all about social
connections and sharing thoughts. But do individuals also share what products and
companies they like and prefer? Are they influencing each other according to their
preferences?
3. The final, but most relevant aim of the work is to identify whether social network
advertisements are beneficial methods for companies to draw attention and target
individuals or is it just another marketing strategy to try and waste money.
4. The last point of the aims is not a target, just to create a conclusion and come up with
a generalized statement about the online ads, what they mean to the internet user and
how the ads influence users nowadays.
The value of the work lays in the better understanding of the consumer attitude
towards online ads. My intention was also to identify the methods how could Facebook
improve and develop its ads to be perceived easier for consumers.
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3 Materials and Methods
3.1 Marketing research analyzing the consumer influence by online
ads on Facebook
3.1.1 Setting the aims of the investigation
As internet gets bigger and bigger importance at the present time, I wanted to
know, whether it has became the main media through which users are exposed to
advertisements. The investigation also points out the attitude of users towards the online
ads and one from them is specially highlighted, the pop-ups. Influence of ads on the
users and their interest is also examined and evaluated.
The most important aim of the investigation is to understand how the consumers
are influenced by the certain advertisements and how they perceive these ads. Also,
internet is not just about surfing anymore, but socializing and sharing ideas. People are
more interested about others than anything else. The question which seeks the answer
is: whether the online users pay attention to the advertisements while they are
facebooking, and are these ads potentially influencing the consumers?
3.1.2 Predictions about the outcomes of some problematic questions
It is predicted that most of the users click on the online ads only when they are
interested in them. A different prediction was made that most of the respondents will
associate to negative feelings, when they hear the word “pop-up”. It is highly probable
that the majority of respondents will state that they have given a “like” for an ad or are
fans of a company’s profile at least once. It is predicted that high number of respondents
will find at least one favorable banner ad, when they open their profile page on
Facebook, which means Facebook ads are well targeted.
3.1.3 Working procedure and methodology of the investigation
The first step of the investigation was to choose the method for the survey. After
that I tried to define the goals and questions with which I was concerned about. When
the goals were clear, the establishment of a questionnaire took place. Before I sent out
the questionnaire, I had made a test whether the questionnaire is clear and understood.
The test was about sending it to 5 people to fill it out and evaluate it. There were some
smaller mistakes identified and corrected, so the actual survey could begin. The
collected data was processed by Microsoft excel, where the graphs and charts were
23
created as well. The whole procedure was done by me. Also there were so called
primary and secondary sources used in the investigation. The primarily source was the
questionnaire from which the results were deducted.
3.1.4 Characteristics of the questionnaire
Clearness and simplicity were my priorities when I was creating the
questionnaire. Also the created questions were short and easy to understand. The form
of the questionnaire was a simple standardized type, where all the respondents were
asked to answer the same questions.
In the beginning, the respondents are welcomed and informed about the reason
why they are asked to fill out the paper, and also it is explained that the data is
anonymous and will not be provided to third party.
The questionnaire consists of 12 questions, from which there is only one openended question and the rest are closed-ended questions. Most of the questions had so
called sub-questions. There were five types of questions asked: multiple, checkbox,
choose from a list, scale, and grid. The first 5 questions were about to examine only
general view of advertisements. On the other hand, the following 4 questions were
specified and narrowed to the social network Facebook. The last 3 questions served to
identify the respondents according to their age, sex and occupation.
3.1.5 The way of collecting data and their sources
There were three basic ways how the respondents were found and asked. The first
and most effective way of reaching the public was through facebook. Then, I found
some internet users among my e-mail contacts. The third way represented the general
old method of surveys, which was finding people personally, either asking them the
questions or giving them the printed form to be filled out.
As my piece of work is tightly connected with Facebook, I thought it would be a
great idea to find respondents on the network. It is a very effective and easy way
contrary to the “field-work” where I would need to interact personally with people and
ask them to fill out my questionnaire. Most of the people do not even pay attention to
such surveys and just avoid them because they are time consuming and sometimes
frustrating. There are new opportunities arising with facebook, for me it was delivering
the questions simply to people I know, effectively and easily. As one of my questions is
concerned about whether one is member of the Facebook, it was evident that all the
24
respondents will tick the answer YES, so I delivered the questionnaire to people I knew
they had no account on Facebook to out-balance the rate. In this way, my collected data
reflects the reality more accurately.
The form for online distribution was created first in Microsoft Word, and then
reformatted to a so called Google document. Basically, it is such a document that can be
opened and filled out by anyone in the browser. There is a link generated for the creator
and owner of the document. It is enough to share the link and not the whole form to
respondents. The respondent clicks on the link, the document opens up in the browser,
and he or she can fill out the form easily in front of his or her computer. The final way
was handing out printed forms. According to these forms, I managed to transform the
data to the electronic form and everything was at one place for analysis.
25
4 Results
4.1 Characteristics of the social network Facebook
Facebook is a website and also a social networking service established in
February 2004, run and owned by Facebook, Inc. This social network has more than
600 million users currently. Each user creates and has an own profile containing his
personal information, interest, activities, pictures and videos like an avatar. The users
can search for their relatives, friends or just people they know and ad them as “friends”,
by which they create their own network of people. Users also can join some groups with
other users sharing a common interest or preference for company product or idea. The
name of the service is derived from the book which is given to students at the beginning
of the academic year to promote getting to know each other.
4.1.1 Brief History
The company was established by Mark Zuckerberg and his college roommate in
February 4, 2004. At first, the site served only as the network for Harvard students, later
on it was expanded to the colleges in Boston, and gradually became as a means of
communication for other universities. The biggest attention that Facebook ever received
was when the company opened its gates and went entirely public. The only restriction
that has hold until now is the age limit, which is set to 13 years of age.
Figure 5: The Development of Facebook
Source: http://www.bdtechie.com/
26
As it is demonstrated, Facebook is a fast growing network. In less than 3 years
its number of members has risen by more than 400 million of users. Its and unbelievable
performance what Facebook does.
4.1.2 The company’s mission and success
The company’s mission is “Giving people the power to share and make the
world more open and connected” through the internet. In other words, facebook’s initial
goal is not only to connect people in reality, but also in the “online world”. As we spend
more and more time online, we have less time to talk to people and interact with them,
but this tool makes it possible to communicate and share ideas even when we are
passively sitting in front of our computers. It is such a brilliant idea.
As simple is their mission, as easy to be in touch with friends through this
network. Probably, that is their pathway to success, to remain simple and with it comes
another great feature, effectiveness. The numbers talk, Compete.com research declares
facebook as the most used social network in 2009. Referring to the Social Media Today
study, 42 % of US population had a Facebook account in April 2010. This number is
probably much higher now.
4.2 Patterns of advertising forms on Facebook
At the beginning, facebook was a way, through which students could advertise
their old textbooks or find roommates. Now, this social network is open to the public
and has hundreds of millions of members. Not only the huge number of users is
attractive for advertisers, but the ability to sort and narrow a certain group of people by
their common features and interest. Nowadays, big companies place ads on Facebook
and „marketing strategies have changed too, from simple network-targeted banner ads
to social ads, which mine members’ personal details and Friend Lists to hawk
products”. (Vander, 2008)
The most evident type of facebook ads are banners. They are present, when the
user opens his profile page. These banners are placed to the right-middle side of the
page. There are four static ads shown generally and standardized into a specific size and
format. These ads include a title a picture, some additional text. It might also contain the
web address and the number of “likes” it received.
Fan Pages, are mostly home pages of companies on facebook. They are very
similar to the general web pages with the exception it’s all on facebook. They represent
27
facebook profiles of basically anything but people, like brands and companies. These
forms of advertisement is relatively new on Facebook, it has been around since 2007.
Users can be fans of the company, and when they do so the actual company has the
right to send updates and news about their products and services. In other words, the
companies can keep the connection with their „fans” and inform them about what is
happening with them.
4.2.1 Targeted ads on Facebook
Advertising, on such social networks as facebook, is very popular because of the
fact that these sites have huge amount of data about the users and the information can be
used by marketers to target customers. It makes sense, and why wouldn’t marketers use
this opportunity to deliver their message to the consumers more effectively? Facebook
attracts its advertisers by explaining: „People treat Facebook as an authentic part of their
lives, so you can be sure you are connecting with real people with real interest in your
products” and if it’s true, online promotion has just got to the finish.
Mia Dand – the Digital & Social media manager for HP – conducted a simple
trial of the facebook ads. She explains that the catchy slogan of facebook is rather
irrelevant; the well advertised targeting method doesn’t work like it should work. She
looked at the ads on two fan pages, Microsoft and BMW. She noticed that the “targeted
ads” on the right side had nothing common with the content of the fan pages. In other
words, facebook did not make any connection with the current page and the ads shown.
The only correlation that could be noticed is that Mia is a woman and the ads were all
connected typically with women’s interest. (Dand, 2010)
4.3 Analysis of data and interpretation of results
The questions will be examined one by one starting from the first one in the
questionnaire and continuing sequentially. There are three main categories of questions,
which are the demographic questions, the questions connected to general types of ads,
and the questions related only to the Facebook.
4.3.1 Demographic analysis of the respondents
In the survey there were 145 people involved, but only 105 were willing either to
fill out the questionnaire or answer to the question orally. From the 105 answerers there
were 57 women and 48 men, in terms of percentage it means: 54 % with women
majority and the remaining 46 % belongs to the group of men.
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Male (47)
45%
55%
Female (57)
Graph 1: Proportion of gender
Source: Own research
The second chart shows the share of respondents categorized according to their
age. The percentage of people with the age of 19-25 is the highest, topping at 67%.
Then the second biggest position was taken by the 26 to 35 years old peers reaching
13%. Similarly, the representation of youngsters to the age of 18 years was right above
10 %. The lowest rank on this chart belongs to the age groups of 36-45 with 8%, then
46-55 with only 3%. The last group had no chance to express itself to the questionnaire
because there was not even one respondent with the age 56 or above. This measure
reflects the reality that elderly people do not use computers either the internet.
percentage
%
67%
10%
to 18
13%
8%
3%
19-25 26-35 36-45 46-55 56 and
more
age
Graph 2: Division according to age
Source: Own research
The students belong to the largest group with 65%. They are followed by the
employed people, who create a group reaching 24%. Entrepreneurs make up only 8% of
the asked people. The smallest proportion belongs to the unemployed with 3%. No
retired people filled out the forms, it was also indicated by the previous graph, that no
one was above the age of 65. As internet is the tool of the younger people, the survey
will reflect mostly their attitude and perception of the online ads.
29
percentage
%
65%
24%
8%
3%
0%
Graph 3: Classification acc. to the respondent’s occupation
Source: Own research
4.3.2 Questions connected to the general forms of online ads
The list of queries starts with a question, which intends to get the very first
impression of consumers about the advertisements. The impression is deducted by
making the respondent choose from some of the possible reaction that he or she might
make. At this point, the quick and general response is important.
The first question was a so called multiple choice question. The asked people
could choose from four options. The question was the following: What do you do or
feel when you notice advertisements while you are surfing on the net? 61% chose the
option: „I click on them only, when I am interested in the ad“. Most of the respondents
do not like wasting their times and do not click. On the other hand 18% of the repliers
do not advert the existence of such ads, for them these ads mean nothing, they are not
concerned. Another 22% say that even they see and take the ads into account, they
never click on them.
Question n.1: What do you do or feel when you notice advertisements while you are
surfing on the net?
0%
Do note notice
them (18)
17%
Never click on such
ads (24)
60%
23%
Graph 4
Click on them,
when they interest
me (63)
Always click on
them (0)
Source: Own research
30
The second question was a little more complicated than the first one. It was
a question of scale type evaluating more objects. The objects were the forms of media,
and the question was: How do you evaluate the influence of ads through the certain
channels of media? This question served for the identification of the most valuable
means for delivering ads. I was also curios about the position of internet, how people
feel and treat the internet as a tool for advertising. There were 4 types of media
evaluated: printed, radio, TV, and internet. Television is still the leading channel for
delivering ads for the consumers, but internet got a reasonable amount of votes for big
influence as well.
Question n.2: How do you evaluate the influence of ads through the certain channels of
media?
neutral
printed
radio
tv
big
influence
no influence
Graph 5
internet
Source: Own research
The first sight on the graph suggests that each type of media either influences or
at least acts neutrally from the viewpoint of the consumers. Most of the respondents
believe that media has to have some kind of impact.
My personal concern was to match and compare the newest forms of media –
internet and TV. As I already discussed it, all types of media had either neutral or some
kind of influence on the consumers of online world. Therefore, I would eliminate the
printed media and radio from our sample evaluation. They served only as a basis for
comparison. At this point TV vs. internet influence, according to the consumers own
experience, are more valuable sources of information for me.
The third question, was one of the types that is more difficult to evaluate, on the
other hand the result can be many times very useful and valuable. The question was
very simple and easy: What comes into your mind when you hear the word pop-up?
31
The aim of the question was to estimate how well the public is in picture with the online
terminology. But also, the association of respondents was a key attribute to analyze.
From all the respondents 60% do not know the word pop-up. These respondents were
eliminated from the evaluation of the question.
Question n.2: What comes to your mind when you hear the word pop-up?
ASSOCIATION
FREQUENCY
in %
1
advertisement that jumps „out”
14
37
2
window that jumps out
6
16
3
advertisement
5
13
4
frustrating
4
11
5
window that opens up in a time sequence
3
11
6
irritating
3
8
7
aggressive advertisement
1
0,5
8
once again?
1
0,5
9
to share
1
0,5
10
hate it as much as trash
1
0,5
11
close it
1
0,5
12
nothing good at all
1
0,5
13
useless
1
0,5
14
something jumping out
1
0,5
15
boilies
1
0,5
Table 1: Associations of respondents
Source: Own research
There were 14 associations to its basic sense, which holds the meaning of a so
called advertisement type that “pops-up” then remains on the screen and covers all the
information we intended to see. The user has to close it, when he wants to surf along.
Another 6 people were connecting it to a hopping window that is almost the same
identification to the first group, with the little exception that they are not connected with
advertising just to some kind of, most probably, annoying part of the online world.
There were 5 answerers that thought right of the word ad. No negative meaning
attached. The pop-ups represent a way of promotion for these people.
Contrast to the above mentioned peers, there is a reasonable group of online
users who have very negative feelings and opinions about these forms of promotion.
Their responses indicate strong refusal and prejudice. These members of the society will
32
be never reached by the message of the ad because these people close the ad as soon as
it is possible. Not only the ad is not effective on this layer of users, but it also provokes
and makes the consumers even more resistant.
The fourth question intends to measure the attractiveness of the certain types of
the most common forms of online ads. The question sounded as: “How do the certain
types of online advertisements attract your attention?” The asked peers should make
a scale about the ads attractiveness. The most transparent way of demonstrating the data
seemed to be a semantic differential table containing all the related data.
There were the six main forms of online advertisements analyzed. I tried to list
the first 4 types of ads in an order that would begin with the less attractive to the most
attractive. My estimation was well done. The simple text took the first –worse- place on
the scale. It was followed by the highlighted text achieving the value of 2 in the
arithmetic average. According to the sample consumers, the interactive ad and the video
ad are the most attractive types of online promotion. I could not estimate how the
consumers will perceive the pop-ups and not wished e-mails. I was a little bit surprised
with the results. Pop-ups possess a good position among the ads concerning their
attractiveness. The unwanted e-mails have bigger potential than I thought. They are
treated generally as trash and spams that is the reason I had such negative prejudice
about them.
Question n.4: How do the certain types of online advertisements attract your attention?
not
attractive
(1)
a bit
attractive
(2)
very
extremely
attractive
arithmetic
attractive attractive
(3)
value
(4)
(5)
simple text
1,8
highlighted text
2,0
interactive ads
3,0
video ads
3,4
pop-up
2,5
ads among the e-mails
2,0
Table 2: Ads attracting attention
Source: Own research
33
The fifth question, dealing with generalized online ads, was asked in this form:
Could you please choose one of the options, which fits the best to the given
statement or question? This question had the intention to study the consumer in
details. It is only an introducing question, which consists of four sub questions. In these
specific questions the consumers had to take stand and choose one of the given answers.
The answers were very simple, either to agree, disagree, or choose the neutral option.
The first statement was: Advertisements have no place on the internet,
nobody notices them. As the graph clarifies, most people do not reject the ads right the
way. They think, the ads have been and should remain as parts of the online
environment. People need them to be informed about new products, services and
discounts. They have the desire to be exposed to online ads.
Question n. 5 -first statementAdvertisements have no place on the internet, nobody notices them
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
39%
35%
14%
10%
1%
fully
disagree neutral
disagree
Figure 6
agree
fully
agree
Source: Own research
The second sub statement was a declaration, where the consumer could choose
whether it was true for him or her or not. The statement sounded: I am interested in
the online ads. The answers are not positive either negative. People are concerned
about the ads presence, but when it comes down to the interest of people, they act
neutrally.
34
Question n. 5 -second statement- I am interested in the online ads.
50%
41%
40%
30%
20%
22%
20%
13%
10%
4%
0%
fully disagree neutral
disagree
Figure 7
agree
fully
agree
Source: Own research
“The online ads influence me” was the next statement in the survey. This graph
demonstrates almost the same results as the previous one. It is understandable because
the two statements bear almost the same meaning. When one is interested in the ad, then
it has to have some kind of influence on the person.
Question n. 5 -third statement- The online ads influence me
50%
39%
40%
28%
30%
20%
17%
12%
10%
4%
0%
fully disagree neutral
disagree
Figure 8
agree
fully
agree
Source: Own research
There was a sub-question attached to the fifth question: Have you ever bought
a product for which you have seen an ad online? This question tried to explore the
user’s willingness to purchase products. The question was formed in such way that the
form of purchase was not determined. In other words, there are both the online and
retail purchase included. That is an important aspect because the majority of online ads
35
contribute to the offline purchases. The direct online impact is not as significant as it is
the effect in the reality.
Question n. 5 -fourth statementHave you ever bought a product for which you have seen an ad online?
35%
30%
30%
25%
24%
20%
20%
15%
15%
10%
10%
5%
0%
fully
disagree neutral
disagree
Figure 9
agree
fully
agree
Source: Own research
4.3.3 Specific questions related to the ads on Facebook
The second part of the questionnaire is devoted exclusively to the so often
mentioned social network Facebook. These questions narrow the advertising types and
pay closer attention to the little banners found on this site. They try to examine the
member’s interest and attitude towards those ads. The first question in the section
intended to eliminate those respondents that do not use Facebook. The users answering
to the first question with a NO were immediately redirected to the personal questions
skipping the questions related to Facebook. The question was directly asking for the
quality whether one is or is not the member of the portal: “Are you a member of
Facebook?” The result was impressive, 94% of the asked people declared that he or she
is one of the members of the some hundred millions in the network. This high
percentage is probably due to the methods of handing out the questionnaire and also the
age structure of asked people.
36
Question n.6 Are you a member of Facebook?
6%
Yes
No
94%
Figure 10
Source: Own research
At this point, when I had information about the percentage of users who are
members of the network, I was also concerned about their frequency of attendance of
the page. It really matters how often they surf and chat on to the pages because the more
they see an ad the bigger influence it has on the user. That’s the concept of repetition, a
tool used by marketers to achieve higher effectiveness. Almost 60% manifest their
attendance of facebook as “more times a day”. Another 20% comes to this number,
which represents people who saying they open the network at least once a day. It gives
an impressive percentage of daily attendees of 80 %. In other terms, 80 people out of
100 members of facebook are exposed to the ads at least once a day.
Question n.7 How often do you use Facebook?
70%
60%
59%
50%
40%
30%
19%
20%
8%
10%
9%
0%
more times once a day
every
a day
second day
Figure 11
once in a
week
Source: Own research
37
The answerers had to continue with the section of YES or NO questions. The
exact question was formulated to these words: “Answer to the following YES or NO
questions, which are related to the social network Facebook.” The first graph
represents the shares of those who either notice or do not notice the ads while they are
clicking on the pages of Facebook. As it can be seen, it is really difficult to pass by
those ads. It happened only to 2% of the respondents, which is a negligible percentage.
Question n.8.1: Have you ever noticed an advertisement on Facebook?
2%
NO
98%
0%
20%
40%
60%
80%
Figure 12
100%
YES
120%
Source: Own research
The next question was more divisive, which was about to find out, whether users
click on the ads or not. For an ad, it is vital to be opened to give even more information
about the product, firm or whatever its intention is. The majority of people even click on
the ads which are interesting, building up even a stronger connection with the brand,
product or company.
Question n.8.2: If you have noticed one of those ads on Facebook, then have you ever
clicked on them?
44%
NO
56%
0%
10%
20%
30%
40%
Figure 13
50%
YES
60%
Source: Own research
Another type of ads on Facebook is the already mentioned fan-page or
brand/product “profiles”. The results show that 60% of the peers are the members of a
group of firm or a fan of brand/product. People are concerned about their loyalty to
38
brands they prefer. They are also proud to give publicity to it, and share it with their
friends and relatives.
Question n.8.3: Are you a member of a group/fan of any firm/product on Facebook?
39%
NO
61%
0%
20%
40%
60%
Figure 14
YES
80%
Source: Own research
The third sub-question was seeking the popularity of mainstream „like” buttons
connected with advertising. It is very „in” in these days. But as it turns out, users do not
express their feelings with a “like” when it comes to firms and commercial products.
Those “likes” are probably reserved to ideas and activities the user share. “Likes” bear
with a rather personal feature, which relates to the most similar individuals and their
opinions and thoughts.
Question n.8.4: Have you ever given a “like” for a product advertisement, webpage or
firm?
45%
NO
56%
0%
10%
20%
30%
40%
Figure 15
50%
YES
60%
Source: Own research
Facebook is also the place of interactions and influences of one to another. It is
true when we talk about personal preferences. These preferences are shared amongst the
friends. One can see what is valuable and interesting to his or her friend. By seeing what
does and likes the other, we might think it might be interesting to us so we click on that
thing, even if it is an ad. The question was asked like this: “Have you ever given a
39
“like” because you saw that your friend has done so?” More than 80% states that
they are not influenced by others when they “like” ideas, videos, or advertising.
Question n.8.5: Have you ever given a “like” because, you saw that your friend has
done so?
82%
NO
18%
0%
20%
YES
40%
60%
80%
Figure 16
100%
Source: Own research
The last question, talking about the questions related to advertisements, was an
interesting way of discovering whether the Facebook ads are well targeted. The
respondents needed to proceed according to my request and take stand. The request and
question were: “Open Your PROFILE PAGE on facebook and take a look at the
ads on the right side of the page, then answer to the question please. Is there any
ad that draws your attention?” The respondents did so and as it turned out, the
majority of these ads were not delivered to the right people. Only 32% of answerers
declared that they found at least one banner, out of four, interesting after clicking on
their profile page. Facebook has a lot of work to get done in targeting. Their method is
not well established yet.
Question n.8 Open Your PROFILE PAGE on facebook and take a look at the ads on
the right side of the page, then answer to the question please. Is there any ad that draws
your attention or seems to be interesting to you?
32%
Yes
No
68%
Figure 17
Source: Own research
40
5 Discussion
5.1 Evaluation of the predicted problematic questions
It is predicted that most of the users click on the online ads only when they are
interested in them. The first prediction has been proven to be true. People do, make,
watch, and see the things that are interesting to them.
A prediction was made that most of the respondents will associate to negative
feelings, when they hear the word “pop-up”. The results showed that most people
associated on advertisements and “jumping up” windows. Some negative feelings were
also identified, but they were in minority, but still present. The general view and
opinions are not negative about pop-ups.
Most of the respondents are members of Facebook and have at least once given
a “like” for an ad or are fans of a company’s profile. The assumption was met as it was
predicted. The 94% of all the repliers were members of the network, but only around
60% was willing to give “like” for products and be involved in fan pages.
High number of respondents will find at least one favorable banner ad, when
they open their profile page on Facebook, which means Facebook ads are well targeted.
Only 32% of the answerers found at least one interesting banner ad on their Facebook
profile page, which is relatively a small percentage to the predicted rate. It can be seen
from this small proportion that Facebook’s targeting method fails to perform.
5.2 Problem solution
In this part of the paper I will devote place for my own problem solution, which
are the results of meeting the sub-aims of the work. I am going to explain the
relationship of online users and online ads. Also, Facebook will be further analyzed
with its main idea of “sharing” related to products and companies. Targeting online
users, as one very keen part of my work, will get a closer attention. My ideas and results
are combined to come up with a generalized reflection of the reality which might be
helpful for marketers to understand the behavior of Facebook users.

The role of online advertising in consumers lives
Most online users have positive attitude towards ads. They really think that the certain
types of online promotions are worth to be presented on the web pages. Moreover, the
users show great interest towards ads, but mostly only in cases when the ad is connected
41
to their interest in products and services it advertises. The vast majority of people
believe advertisements should remain parts of online environment, but as it is often
heard, there are some people who are strongly opposing any kind of advertising form
and for them they create only frustration and anger. An example of the consumer’s
negative approach could be demonstrated with the example of the pop-ups. These
“jumping-out-windows” are perceived as the most irritating and aggressive online
advertising tools.

Influence of online advertisements
Either one knows or is not aware; it is true that we are influenced by the casual and
online ads too. The rate how strongly we are influenced is very difficult to measure.
From my research, it turns out that all the studied forms of online advertising – text,
highlighted text, interactive advertising, video-ad, and e-mail messages- are attractive to
consumers, even pop-ups. From the listed forms, it was the video ad that was the most
attractive. Most of the respondents have purchased such product that it was advertised
for them online.

Members of Facebook and their approach to banners, “likes”, and fan pages
Marketing gets a whole new type of meaning in the case of a social network. Almost
everyone is registered to the network who is a frequent internet user. In this sense,
marketers have many new options to attract consumers. The little banners are very
divisive. Half of the users even click on them when they find it interesting. The
remaining half notices the ads, but does not take any action of clicking on them.

Targeting on Facebook
The biggest advantage of Facebook over other advertising web pages is its capability to
select the right advertisement for the right person. The members are evaluated according
to their personal data, features, and interest. It turns out from my survey that targeting is
present on Facebook, but its methodology must be very simple because with making
difference between man and woman its capabilities are yet exhausted. My personal
explanation of this issue takes into account the probability of the extremely low rate of
ads circulating. Facebook has made enormous improvements in the last couple of weeks
in targeting customers, but it has still some reserves left.
Facebook is in its best shape in these days. If we look back to the beginning of
the introduction, we can see that the introductory quote recommends us to be diverse in
42
ads. Facebook should follow the basic principle of alteration with his ads, and in general
as well.
43
Conclusion
It is really a challenge to be competitive in the market these days. One option for
companies is to develop a great marketing strategy with effective advertising methods.
But the question is how to do so? A simple answer to the question would be: being
different. Achieving diversity in marketing is possible with the development of some
kind of new advertising forms. As the younger generation spends a part of its free time
online, that is the opportunity that marketers and companies can take. One of the newest
trends in promotion is to advertise online, but not only to casual users, but to more the
600 million people on the social networks just like Facebook. If this is not a big enough
opportunity, there is a special feature of the social network. It holds personal
information of individuals, which can be further used for targeting these people. To
show them exactly and exclusively what they might need and want.
The main objective of this piece of work was to examine online advertising
influence and how the internet users perceive and react to the different forms of
advertisements. There have been some sub-targets developed: (1) Analyzing the
influence of online advertisements generally. (2) To be more specific, one of the online
environments for advertising is studied in depth, which is the social network called
Facebook. (3) The identification whether social network advertisements are beneficial
methods for companies to draw attention and target individuals or is it just another
marketing strategy to try and waste money.
The bachelor’s thesis fulfils all the defined objectives. There was a marketing
research conducted to examine the consumers by which the necessary information were
deducted and analyzed eventually. The results of the work support that online
advertising is an effective way of communicating with the public, and its influence
almost matches the influence of TV on the consumers. Many of the online users buy
products that were advertised online. Online advertisements are perceived very
positively by the consumers; most of them even think the ads are not separable parts of
the internet. Video ads are the most beloved types by the online users from all types of
online ads. People are generally interested in ads and click on them mostly if there is a
little potential for the ad to relate to something that the user is interested in.
Furthermore, the vast majority of online users are member of the most popular social
network called Facebook. Not only they are members, but more than 55% of the
44
respondents visit the web page, which further increases the effectiveness of ads on this
site. Through this network, the consumers are interacting and sharing not only thoughts
and videos, but also ads for products. One other thing that makes Facebook unique is
that companies can have fan pages and users show their interest by giving „likes” and
being members of the group additionally increasing the company’s recognition. One
aspect that I was very surprised about is that, from the questionnaire, it turns out that
members on the social network do not influence each other. One is not behaving
according to someone else. For example, if one „likes” a brand, then it is perceived by
only 20% of the witnesses influentially. Facebook’s greatest tool for advertising is its
targeted ads. They do not work as effectively as they should, but it is just the matter of
time when they improve it, and might be really one of the best ad methods.
Online advertisements are great ways for attracting consumers. Facebook has
made progress in the last couple of months with shaping their ads, but as the Greek
proverb suggests: „The effects or the joy from every miracle last only three days”,
which are very true for Facebook. Therefore, it is vital for the company to keep up the
race. For Facebook, being always with one step ahead of the users, continually engaging
with innovation, and maintaining consumer friendly ads, will keep up its leading
position in social networking.
45
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Appendices
Appendix A: Questionnaire……………………………………………………….50
49
Appendix A: Questioner
Welcome,
My name is Tibor Cseri and I am a student of the Slovak Agricultural University
in Nitra. I would like to ask You to fill this form out. It will take You about 5-7 min to
fill it out. This questioner is the basis of my research in my bachelor’s thesis. The works
main objective is to analyze the influence of advertisements on the consumer.
The questioner is anonymous. The personal data will be solely used for my
research and will not be provided to third party.
Thank You for Your participation and the sacrificed time.
Tibor Cseri
---------------------------------------------------------------------------------------------------------Question n.1 - What do you do or feel when you notice advertisements while you are
surfing on the net? (Tick the one, which fits the best)
a. Always click on them
b. Do note notice them
c. Never click on such ads
d. Click on them, when they interest me
Question n.2 - How do you evaluate the influence of ads through the certain channels
of media? (Select for each media one of the 3 given options)
no influence
neutral
big
influence
printed
radio
tv
internet
Question n.3 - What comes to your mind when you hear the word pop-up? (try to
answer only with one word)
50
Question n.4 - How do the certain types of online advertisements attract your
attention? (Tick one box for each type of advertisement)
not
attractive
a bit
attractive
attractive
very
attractive
extremely
attractive
simple text
highlighted
text
interative ads
video ads
pop-up
ads among
the e-mails
Question n.5 - Could you please choose one of the options, which fits the best to the
given statement-question? (fully disagree, disagree, neutral, agree, fully agree)
Advertisements have no place on the internet, nobody notices them.
I am interested in the online ads.
The online ads influence me.
Have you ever bought a product for which you have seen an ad online?
Question n.6 - Are you a member of Facebook?
a. YES
b. NO
NOTE: If you ticked the option NO for the Question n.6, skip the question n.7,8,9
and continue with the question n.10.
Question n.7 - How often do you use Facebook?
a. more times a day
b. once a day
c. every second day
d. once in a week
51
Question n.8 - Answer to the following YES or NO questions, which are related to the
social network Facebook.
Have you ever noticed an advertisement on Facebook?
If you have noticed one of those ads on Facebook, then have you ever clicked on them?
Are you a member of a group/fan of any firm/product on Facebook?
Have you ever given a “like” for a product advertisement, webpage or company?
Have you ever given a “like” because, you saw that your friend has done so?
Question n.9 - Open Your PROFILE PAGE on facebook and take a look at the ads on
the right side of the page then answer to the question please. Is there any ad that
draws your attention?
a. YES
b. NO
10. Age
a. to 18
b. 19-25
c. 26-35
d. 36-45
e. 46-55
f. above 56
11. Sex
a. male
b. female
12. Occupation
a. student
b. employer
c. entrepreneur
d. unemployed
e. retired
f. other
52