MEASURING THE COMPARATIVE

EFFECTIVENESS OF ONLINE ADVERTISING

VERSUS TRADITIONAL ADVERTISING FOR
SIMILAR PRODUCTS: A STUDY ON DHAKA
CITY.

Supervised By
Md Shariful Islam
Lecturer
Department of Marketing
Jahangirnagar University

Submitted By
Tasmia Tabassum
Student ID: 1048
Batch No: 4th
Department of Marketing
Jahangirnagar University
INTRODUCTION
Advertisement becomes effective when it can be able to deliver the right message at
the right place for the right person. For an advertisement to choose the right message
& the right person is much easier than to choose the right place. The effectiveness
of advertising is very dependent on the place where it’s being designed & targeted
to be placed. As advertising is one of the main weapons of marketing, to cope up
with the newest advertising trends it’s very important to know about the needed
placement of advertising. An advertisement can be placed at two types of platforms
– online platform & traditional platform. A wrong decision regarding the placement
of advertising can make it ineffective or meaningless in time less than a second. On
the other hand, only a right decision about the advertising placement make it
successful along with giving its client & advertiser the desired outcomes. From this
viewpoint it can be said that effectiveness of an advertisement depends on its
placement at the right platform either online or traditional platform. To prove this,
the emergence of this research project has been developed so that we can be sure of
the myth that effectiveness of an advertisement depends on its needed placement.
Besides we can also be able to know how to measure the effectiveness of an
advertisement based on its placement so that we can take the right decision regarding
the right placement of advertisement. This research project will greatly benefit
different industries even for taking decisions to choose the right platform where they
should give the advertisements of their products in order to ensure the desired
outcomes from those products. In addition, it will also provide an overview of the
measurement techniques to compare the effectiveness between online advertisement
& traditional advertisement for similar products.

PROBLEM STATEMENT
The need of measuring the comparative effectiveness of online advertising versus
traditional advertising for similar products has been recognized by several industries.
According to the traditional marketers & digital marketers, all companies want to
promote their products at both traditional & online medias with little knowing about
the effectiveness of advertisements on those medias. Because the companies don’t
want to lose a single chance to make awareness & to attract their targeted customers.
But it’s not always wise to float on all waves. In today’s competitive world it’s very
challenging for the companies to advertise their products in the right way. Besides
customers are also being more complex to be attracted day by day. In this research
there is a perfect reflection of the need for a better understanding of placement of
advertising and the measurement approaches to compare the effectiveness between
online advertisement & traditional advertisement for similar products so that
companies can ensure the desired outcomes from the advertisements of their
products. More specifically, the following research questions need to be addressed:
 What is the placement of advertisement & its importance?
 Why should we think about the effective placement of advertising to ensure
the desired outcome from that advertisement?
 How can we measure the comparative effectiveness of online advertising
versus traditional advertising for similar products?

OBJECTIVES
The long term goal of the research is to measure the comparative effectiveness of
online advertising versus traditional advertising for similar products. Placement of
advertisement along with its importance, online advertising & traditional advertising
along with their different forms have been defined here in as the process of
identifying the need of the effective placement of advertising to ensure the desired
outcome from that advertisement & also measuring the comparative effectiveness of
online advertising versus traditional advertising for similar products. The objective
of the current study is to provide a comprehensive review of literatures and industry
practices in relation to the placement of advertising and outline some measures of
checking the comparativeness effectiveness of online advertising versus traditional
advertising. Particularly, the study has the following sub-objectives:

1. To provide a comprehensive review of ad placement, the need of ad placement,

online & traditional ad platform & also different forms of online & traditional ad;
2. To develop some measures of checking the comparative effectiveness of online
advertising & traditional advertising;
3. To review current industry practices and researches in regards to placement of
advertising;
4. To outline some measures of comparing the effectiveness of online advertising
versus traditional advertising.
The result of this study will be valuable to the industry practitioners as well as
marketers in measuring the effectiveness of online advertising versus traditional
advertising for similar products.

PRELIMINARY LITERATURE REVIEW

This preliminary literature review shows that past studies are primarily focused on
understanding the effectiveness of either online advertising or traditional advertising
such as effectiveness of online advertising, effectiveness of traditional advertising,
motivating factors of online advertising to recall a brand etc.
PRITHVI B.J.; MIHIR DASH (2013) in their study “COMPARATIVE
EFFECTIVENESS OF RADIO, PRINT AND WEB ADVERTISING” shed some
light on the potential of the internet, print, and radio as advertising media,
particularly in targeting particular consumer segments. It shows the growing
importance of internet advertising in consumer purchase behavior, particularly in
delivering product information. It highlights the popularity of radio, especially
among the youth. It also shows that print advertising is perceived to be effective in
changing attitudes. Finally, the analysis gives enough reason only to believe that TV
advertising is indeed the most effective medium of advertising. But didn’t provide
any measurement scale to measure the comparative effectiveness between online &
traditional advertising. Here the research gap exists.
Lim, Yet; Yap, C.-S; Lau, Teck-Chai (2011) in their research “The effectiveness
of online advertising in purchase decision: Liking, recall and click” tried to answer
the question: "How significant are the measures of advertising effectiveness in terms
of (1) attitude towards the ad, (2) ad recall, and (3) click-through rates in explaining
online purchase decision." All the three measures of advertising effectiveness were
found to be significant predictors. The findings suggest that online advertising may
be a powerful marketing tool in the context of online environment. The research
findings also imply that marketers should include online advertising in their
advertising media mix as online advertising promotes online buying or online
shopping. Only online advertisement effectiveness is measured in this research.
Antun BILOŠ, Ivan RUŽIĆ & Ivan KELIĆ (2014) in their research “Online And
Offline Media Effectiveness Based On Shopping Center Communication
Objectives” test and measure every communication channel used and to determine
its efficiency and cost effectiveness. The final results showed that although offline
channels contributed more in absolute numbers, online channels were significantly
more cost effective compared to traditional advertising channels. However, due
to sample limitations further research is necessary.

Prateek Maheshwari, Nitin Seth, Anoop Kumar Gupta (2014) in their research
“Advertisement Effectiveness: A Review and Research Agenda” review various
studies on advertisement effectiveness and identify a range of measures used in
context of a specific media. It may be noted that the development of the
advertisement effectiveness literature from 1964 to 2013 highlights the change in
the focus of researchers from traditional to modern media. It is further observed that
different dimensions are considered in different media for measuring advertisement
effectiveness which adds to the complexities and vagueness of the subject. This
clearly highlights the need of further research in the area of measuring advertisement
effectiveness as summed up in previous section.

Ravi Kumar (2018) in his research “Scale for Advertising Effectiveness: A Study
on Traditional and Interactive Advertisements as per the Lavidge and Steiner
Model” has developed a research measurement instrument (Scale) that is empirically
tested to measure effectiveness of traditional and interactive advertisements based
on the model of advertising effectiveness proposed by Lavidge and Steiner. But there
are other effective advertising models such as AIDA sequence, Information-
Processing model based on which a better measurement instrument (scale) could be
developed. The researcher has only used Lavidge and Steiner Model to develop the
measurement instrument (Scale) for measuring effectiveness of traditional and
interactive advertisements. Here the research gap exists.
Limited progress has been made to measure the comparative effectiveness of online
advertising versus traditional advertising for similar products. In terms of
understanding the need for perfect placement of advertising, the need for online &
traditional advertisement had been researched. In terms of measuring the need of
online & traditional advertising or measuring the motivating factors of online &
traditional advertising various approaches have been recommended. For example,
several measurement indicators have been used to measure the effectiveness of
online advertising such as Display, Conversion, Traffic Interaction, Sub- scription,
Coverage, Offline sales, ROI, Post-tests. In the same way different methods have
also been recommended to measure the effectiveness of advertising such as pre-
testing method & pro-testing method. What is missing from the past studies is a
comprehensive and structured approach for measuring the comparative effectiveness
of online advertising versus traditional advertising for similar products so that ad
placement decision can be taken very accurately to ensure desired output from that
advertisement.

METHODOLOGY
The primary research method for this study is to analyze the literature review &
available secondary data related to this study. Based on these previous information
& attempts to measure the comparative effectiveness of online advertising versus
traditional advertising for similar products, some effective measures will be explored
those were mentioned in the previous research may be useful to measure the
comparative effectiveness of online advertising versus traditional advertising for
similar products. The secondary research method for this study will be based on a
formal & structured research model in which research design, used data types & their
sources, used data collection techniques, scaling techniques, sampling design,
questionnaire design will be briefly included. This research is a exploratory research
firstly. Both primary & secondary data have been used in this research. Primary data
have been collected by structured questionnaire & the analysis of the online survey
results using these questionnaire. Secondary data have been collected through
literature review & other available secondary sources. Effective advertisement
measurement instruments or scales like have been considered & critically evaluated
in this study to find the best suitable measures or scales to measure the comparative
effectiveness of online & traditional advertising for similar products. Judgement
sampling has been used in this research & the sample size is 50. Structured
questionnaire has been designed through multiple-choice-question. Due to several
limitations needed experimentation hadn’t become possible for this research. That’s
why it is designed as an exploratory research firstly & recommended to be a
comparative effectiveness research in future.
REFERENCES
 file:///C:/Users/User/Downloads/Documents/studie_online_advertising_effectiveness.pdf
 https://www.mbaknol.com/marketing-management/approaches-to-measuring-advertising-
effectiveness/
 http://indianresearchjournals.com/pdf/APJMMR/2013/July/2.pdf
 https://www.researchgate.net/publication/287509406_The_effectiveness_of_online_advertising_i
n_purchase_decision_Liking_recall_and_click
 https://www.researchgate.net/publication/262955424_Online_And_Offline_Media_Effectiveness
_Based_On_Shopping_Center_Communication_Objectives
 file:///C:/Users/User/Downloads/Documents/Advertisement-Effectiveness-A-Review-and-
Research-Agenda.pdf
 www.scholarshub.net/ijcms/vol9/issue1/Paper_08.pdf