National College of Business and Arts

Senior High School Department

Fairview, Quezon City

A.Y. 2019-2020

THE STUDY OF HOW INTERNET ADVERTISING IS THE MOST EFFECTIVE WAY OF

ADVERTISEMENT

Adan, Karla Nicole

Alaba, Airra Margaret I.
Dela Peña, Janniele
Galut, Ron Harold
Luminario, Pearl Anne
Macahia, Azineth Joy R.
Orjaliza. Angelica Jean
Podador, Tonjie B.
Tica, Jhon Paul

A.B.M 11 – Dollar
Group 4

TABLE OF CONTENTS

CHAPTER

I. THE PROBLEMS AND ITS BACKGROUND

Introduction.........................................................................................................

Statement of the problem.....................................................................................

Scope and Delimitation........................................................................................

Significance of the study.....................................................................................

II. THE REVIEW OF RELATED LITERATURE

Related studies....................................................................................................

Related literature………………………………………………………………

III.METHODOLOGY
IV. DATA AND RESULT
V. SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
VI. BIBLIOGRAPHY
 CHAPTER I

The Problem and Its Background

Businesses encounter different problems in their everyday operations. One of their

primary challenges is the lack of brand image. This is the reason why advertising, as part of

marketing tools, is very important in every firm. Kotler (2013) said that finance, operations,

accounting and other business functions depend on the sufficiency of the demand for products

and services in order to make a profit. In other words, financial success often depends on

marketing ability. (Kotler, 2013)

One of the fastest ways to market a business is through advertising. It helps to promote

the company’s brand. Advertising is just part of the large spectrum of marketing. Armstrong

(2015) stated that marketing is about managing profitable customer relationships. He further

explained that the goal of marketing is to attract new customers by promising superior value and

to keep and grow current customers by delivering satisfaction. There are also different strategies

in promoting the brand. This is called promotion mix or the marketing communications mix. It

consists of the specific blend of advertising, public relations, personal selling, sales promotion,

and direct marketing tools that the company uses to engage consumers, persuasively

communicate customer value, and build customer relationships. (Armstrong, 2015)

On this digital age, people nowadays use internet as a form of communication and

entertainment. This has been true in different parts of the world especially in the Philippines.

According to the Foundation for Media Alternatives (2015), most of the Filipinos use their

mobile phones for entertainment purposes and communication. This means that internet is widely

used and can reach many people nationwide. By the means of internet, businesses can attract
 their consumers easily.

Digital advertising, also known as online advertising or Internet advertising, is essentially using

the online opportunity to communicate marketing messages to consumers or visitors. There are many

new and emerging formats for digital advertising, although it is commonly accepted that it would

include e-mail marketing, search engine marketing, social media marketing, more general types of

display advertising, and mobile advertising. (Friesner, 2014)

Internet advertising has been used worldwide. This type of advertisement can reach

multiple of audiences since most of the target audiences were into social media to communicate

with other people. According to the studies provided by the Wall Street Journal (2006), the

global spending for internet advertising was around $18 billion in 2005. There were estimates

that the online expenditures would grow to $150 billion on 2015. There were also companies

which uses online advertisement to promote their product. This is seen on some social media

accounts such as on YouTube through the video advertisement, Facebook on their paid ads, and

on Instagram on their IG stories.

 The purpose of this study is to determine the effectivity of internet advertising.

Through this study, it can benefit businessmen, private companies, business educators,

students and future researchers. The paper will focus on internet advertising. The

primary aim of this paper is to determine whether internet advertising is the most

effective means of advertising.

Statement of the problem

The main objective of this study is to determine the effectivity of internet advertising. It

will answer the following questions:

1. How does internet advertising differ from traditional advertising?

2. Do the different forms of internet advertising effective?

Is internet advertising the most effective in advertising products and services than other

forms of advertising?
Significance of the Study

The study aims to determine how popular internet advertising as a means of advertising.

The findings of the study will be helpful to the following:

a. Businessmen – The study will benefit businessmen regarding their brand image.

Through the use of this paper, they can easily promote their product/services on the

internet as a means of advertisement. For companies, the study could deter Through the

use of internet advertising, they could lessen their expenses by posting their

advertisement at social media accounts and other media accounts.

b. Business Educators – The study will give additional information for business

educators on their study on marketing management. This will increase their knowledge

on advertising and impart this knowledge to their learners.

c. Students – The students can use the research for their further studies on marketing

management specifically on internet advertising. They may also gain knowledge from

this paper.

d. Future researcher – This study may guide them on internet advertising that can

give them more knowledge and encourage the researchers to explore more in depth

assessment related to the concept of internet advertising.

 Scope and Limitation

This study focuses on determining whether internet advertising is the most effective means

of advertising. This paper will focus on the importance of internet marketing and its effect on the

brand image of the company.

The paper will only focus on internet advertising and will not tackle some of the issues on

marketing management. Also, its scope would only focus on five respondents in the Senior High

School – Accountancy, Business and Management students of National College of Business and

Arts, Fairview and five adult respondents from a neighborhood. Therefore, the result may not

represent the internet advertising as a whole. Due to the time constraint given to the researcher,

the study will only focus on ten respondents only. In addition, methods are used to gather the

data and it also helps to determine the objective of this study.

 CHAPTER II

Review of Related Literature

Foreign Related Studies

Armstrong & Philip Kotler (2015) believes that advertising is any paid form of non-

personal presentation and promotion of ideas, goods, or services by an identified sponsor.

Through advertising, it can reach masses of geographically dispersed buyers at a low cost per

exposure, and enable the seller to repeat a message many times (Armstrong & Kotler, 2015).

Percy (2014) said that advertising is designed to turn the target audience towards the

brand, build brand awareness and positive brand attitude. He further stated that the use of

internet marketing is huge. He explained that the top 50 web companies account for nearly all

internet advertising spending, with most going to Yahoo, Google, AOL and MSN. Daily users

visit in 2005 ranged from 2.9 million at Google to 4.0 million at Yahoo. Google is testing the

idea of offering diversified advertising, which would put them in direct competition with

newspapers and online classified listing services. (Percy, 2014)

Cateora, Gilly and Graham (2019) agreed that the internet today is the most global of any

media invented so far. It has leapfrogged television and radio which may yet become global

someday but are far from doing so. He added that internet is the only medium that approaches

true global reach since its power results from its many unique attributes namely: its ability

to (a)
encompass text, audio and video in one platform; (b) operate in a dialogue versus monologue

mode; (c) operate simultaneously as mass media and personalized media; and (d) build global

“communities,” unconfined by national borders. These attributes make it the most powerful

medium on earth, unparalleled in its ability to communicate, especially to a global world.

(Cateora, Gilly & Graham, 2019)

Yuan, Abidin, Sloan and Wang (2012) conclude that Internet advertising is a fast growing

business which has proved to be significantly important in digital economics. It is vitally

important for both web search engines and online content providers and publishers because web

advertising provides them with major source of revenue. Its presence is increasingly important

for the whole media industry due to the influence of the web.

For advertisers, it is a smarter alternative to traditional marketing media such as TVs and

newspapers. As the web evolves and data collection continues, the design of methods for more

targeted, interactive, and friendly advertising may have a major impact on the way our digital

economy evolves, and to aid societal development. It is related to the study because Google

online advertising is one of the internet advertising in which it helps lots of businesses. Since

Internet advertising is a fast growing business, it also help the economy.

Foreign Related Literature

Quelch (2009) shows that Businesses around the advertising-supported Internet have

incredible multiplier effects throughout the economy and society. Ironically, online advertising

and the commercialization of the Web achieved important goals of the resisters mostly to

preserve the Web as a medium for free publishing and communications. The Advertising-

Supported Internet also helps the economy by fostering innovation, entrepreneurship, and

productivity. It is related to the study because it represents the impact of advertising in the
economy by stressing how effective is online advertising and how online advertising helps the

economy. Advertising through internet also has given lots of benefits to businesses and also our

economy.

Local Related Literature

INQUIRER.net (2019) said that Filipino spend over 10 hours online every day. It is

49.8% more than the global average. Since the internet are made easily accessible, businesses

finds leverage digital marketing solution a way to expand their reach and connect with more

consumers. As most Filipinos do, they conduct their transactions online providing great

opportunity for businesses to delve into the e-commerce space. (INQUIRER.net, 2019)

Osorio (2017) mentioned that the Philippines has 69 million internet users and are active

social media users. Accordingly, the average daily use of every Filipinos is the following: 9

hours on the Internet via personal computer or table; 3 hours and 36 minutes on the Internet via

mobile phone; 4 hours and 17 minutes on social media using any device and 2 hours and 30

minutes on television. This significant values means that the social media continues to dominate

influencer marketing. Brands view social media as the most effective digital channel for

marketing, due to the high number of active users, the enormous amount of times users spend

using the channel and cost efficiency. In the Philippines, social media are used for searching and

purchasing products or services by nearly a third of the population with Facebook as the priority

medium.
 Viray (2018) discussed the different changes that the digital advertising has made in the

country. One of its most significant contributions in the Filipinos are the mobile-first strategies.

Through its use, businesses can immediately enter the device of each individual by having ads on

every media content or game applications. This kind of advertising is very effective in creating

brand awareness of the product or services of every company.

Adobo Magazine (2013) shows that online advertising has continued to grow, achieving

10% year on year growth recording $813.25 million for the three months ending September

2012. The results of the Online Advertising Expenditure Report (OAER) by IAB Australia,

compiled by PricewaterhouseCoopers (PwC), show that while the general advertising market is

softening, online advertising is on track to surpass both newspaper and TV advertising in 2013. It

is related to the study because it shows how effective is online advertising to businesses that it

became on track to surpass both newspaper and TV advertising in 2013. It also shows that online

advertising is continuously growing and becoming more effective to advertisers and businesses.

Local Related Study

Concha and Cruz (2012) conclude that online activity has reached an unprecedented rise

owing to the popularity of social networking sites and the easier accessibility to computers and

the internet for more people. As such, and with more methods of interactive and efficient

advertising available online.

The rising online presence causes advertises to invest more online advertising rather than

newspaper advertising and the dwindling of newspaper readership causes advertisers to flee from

the newspaper as another advertising medium has taken place. It is related to the study because

online advertising is really popular to business and to audience or customers because it’s easier to

spread online ads than newspaper which will be more helpful to businesses also.
Synthesis

Advertising plays an important role in business. It provides significant impact on the

society. Accordingly, it can reach multiple targets in different parts of the world. Through this, it

can affect how audiences will react on certain product or services by building the brand image of

the company. The use of internet can be a medium for every business to advertise their product

or services. According to studies, Filipino spends significant time on internet. This means that

businesses can use internet to advertise their product and services. Specifically, businesses can

target mobile users to market their product and services.

Reference

1. Armstrong (2015). Marketing: an introduction, 12 th Ed., Pearson Custom

Publishing: One Lake Street, Upper Saddle River, New Jersey.
2. Cateora, Graham and Gilly (2019). International marketing. 18th Ed.,
McGraw-Hill Companies, Inc.
3. INQUIRER.net (2019). Leveraging digital marketing solutions to grow
your business. Retrieved from: https://business.inquirer.net/279661/leveraging-
digital- marketing-solutions-to-grow-your-business.
4. Kotler (2013). Marketing management. Pearson Custom Publishing: One
Lake Street, Upper Saddle River, New Jersey.
5. Osorio (2017). Where are we in digital
marketing? Retrieved from:
https://www.philstar.com/lifestyle/business-life/2017/08/06/1725942/where-are-
we-digital-marketing.
6. Viray (2018), “The 9 trends that will shape digital marketing in the
Philippines in 2018”, Retrieved from:
https://www.rappler.com/technology/features/194338- digital-marketing-in-2018-
philippines-trends
7. Friesner (2014). Digital advertising, Retrieved from:
https://www.marketingteacher.com/digital-advertising/
8. Concha and Cruz (2012). “The Rise of Online Advertising and its Impact
on the Future of the Philippine Newspaper”. University of the Philippines Diliman
9. Adobo Magazine (2013). “Online Advertising to Surpass Print and TV in
2013” Retrieved from: https://www.adobomagazine.com/news/online-advertising-
to-surpass-print-and-tv-in-2013/
10. Quelch (2009). “Quantifying the Economic Impact of the Internet”
Retrieved from: https://hbswk.hbs.edu
11. Yuan, Abidin, Sloan and Wang (2012). “An Interplay among Advertisers,
Online Publishers, Ad Exchanges and Web Users” Cornell University of Ithaca,
New York