Online Advertising: Risks, Opportunities, and Consumer Impact

This report delves into the evolving landscape of online advertising, examining its opportunities and risks for companies within the consumer goods industry. It begins by defining online and offline trading, exploring their similarities and differences, and then focuses on online advertising methods, including new approaches. The report investigates the psychology of the buying process, comparing offline and online purchase behaviors. Furthermore, it addresses project management and marketing strategies for online shops, using "Shockliner" as a case study to illustrate product launch phases and marketability tools. The report concludes with an analysis of the current state of online advertising and provides an outlook on its future, offering valuable insights into how businesses can adapt to the changing digital environment.

The End of Online Advertising as we
know it - Opportunities and Risks for
Companies in the Consumer

TABLE OF CONTENTS
List of Figuers
Illustration 1: Online trading............................................................................................................7
Illustration 2: Offline trading...........................................................................................................9
Illustration 3: Online Advertising .................................................................................................15
Illustration 4: Banner Ads..............................................................................................................17
Illustration 5: Social Media Advertisement ..................................................................................20
Illustration 6: Consumer Buying Process .....................................................................................22
Illustration 7: Phases of project management ...............................................................................27
Illustration 8: Shockliner ...............................................................................................................29
CHAPTER 1: INTRODUCTION....................................................................................................1
Title.........................................................................................................................................1
1.1 Research questions and objectives...................................................................................2
1.2 Procedures........................................................................................................................2
1.3 Outline..............................................................................................................................5
CHAPTER 2 : DEFINITION...........................................................................................................7
Introduction............................................................................................................................7
2.1 Definition of online trading..............................................................................................7
2.2 Definition of offline trading.............................................................................................9
2.3 Similarities and difference between online trading and offline trading.........................11
CHATTER 3 : ONLINE ADVERTISING....................................................................................15
Introduction..........................................................................................................................15
3.1 Online Advertising.........................................................................................................15
3.2 New Methods of Online Advertising.............................................................................18
CHAPTER 4: PSYCHOLOGY OF THE BUYING PROCESS...................................................22
Introduction..........................................................................................................................22
4.1 Offline Purchase process................................................................................................22
4.2 Online purchase process.................................................................................................23
4.3 Similarities and differences 'offline and online' buying process....................................25
CHAPTER 5: PROJECT MANAGEMENT AND MARKETING FOR ONLINE SHOPS.........26
Introduction..........................................................................................................................26
5.1 Phases of project management for a product launch......................................................26
5.2 "Shockliner" as an innovative product..........................................................................28
5.2.1 Presentation of the product innovation of "Shockliner".........................................28
5.2.2 Reasons for insufficient market establishment of the new product........................29
5.3 Possibilities and tools for better marketability of Shockliner recommendations...........30
CHAPTER 6: CONCLUSION AND OUTLOOK........................................................................31
REFERENCES..............................................................................................................................32

CHAPTER 1: INTRODUCTION
Title
The End of Online Advertising as we know it - Opportunities and Risks for Companies in
the Consumer Goods Industry and their Customers using the example of Online Shops.
Introduction
Online advertising is also known as online marketing or internet advertising or promotion
by using web. It is a type of marketing and promotion which utilities internet to deliver
promotional marketing messages to consumers (Richardson, Ganz and Vallone, 2015).
Customers tends to influences from the online advertising as it possess few benefits which
affects their buying decision. Online advertising includes social media marketing, search engine
marketing, search engine optimisation and other types of display advertising which enable
marketers to promote organisational goods and services to number of customers in an effective
and efficient manner. In this context, the dissertation will explore the online advertising and
trading tactics used by marketing management of online shopping companies like Lidl,
Powerslide, etc.
Online marketing trend embarked with beginning of internet revolution. Internet is now
accessible in every part of world which allows ample of opportunities to the marketers through
which they can promote and advertise organisational products and services to enormous amount
of population. In this context, the dissertation will be formulated in a systematic and structured
manner. Researcher will focus on providing definition of online and offline trading done by the
organisations. Articles and journals of senior authors and researchers will be selected in the study
in order to make dissertation more robust and effective. The online advertising is considered as
an efficient and effective method which is used by marketers in order to enhance the productivity
and profitability of the organisation. As compared with offline mode of marketing, online
marketing is considered to be cheap, effective and efficient source of marketing which provides
greater opportunities to the marketers through which they can advertise organisation’s products
and services to a large number of customers.
The researcher will carry out the dissertation in a precise and appropriate manner which
covers each and every aspect related with subject matter. Researcher will describe the elements
of online advertising such as Internet of Thing (IoT), social media marketing, Electronic word of
mouth (eWOM), etc. in the dissertation. Researcher will further explain about the psychology of
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buying process including both offline purchase process and online purchasing process. The
similarities and differences between offline and online purchasing process will be investigate in
this research study. Researcher will devise project management and marketing plan for online
shop with reference to Shockliner.
1.1 Research questions and objectives
In order to formulate research questions, researcher first needs to make research aim and
objectives. Research aim will guide researcher in the right direction and research objectives will
provide assistance to the researcher through which researcher can accomplish the aim of study.
In this context, the aim and objective of present dissertation are described as below:
Aim
The aim of present dissertation is “to analyse opportunities and risk of online advertising
in the consumer goods industry and their customer”.
Objectives
The summarised objectives which underpin research aim are mentioned as below:
 To understand about online trend and online advertising
 To analyse opportunities associated with online advertising
 To identify the challenges and risks associated with online advertising
 To investigate customers' psychology of buying behaviour
Research questions are fundamental core of research study. Researcher in order to attain
the aim and objectives of dissertation first needs to devise precise research questions that
underpin the subject matter. In this context, researcher will answer the following research
questions:
1. What is the meaning of online trends and online advertising?
2. What are the opportunities associated with online advertising?
3. What are the challenges and risks associated with online advertising?
4. What is customers' psychology of buying behaviour?
1.2 Procedures
In this part, researcher will elaborate research methods that he or she will be going to use
in order to accomplish the aim and objectives of research study. Research methodology is
considered as a framework of dissertation. Discussion of research methods is very essential in
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dissertation as it tell readers about the methods which researcher selected to accomplish the aim
and objectives of the research study. In this context, the methodology used by researcher in the
present dissertation is described as below:
Research Philosophy
Research philosophy deals with source, nature and development of knowledge.
According to Saunders research onion, research philosophy is the first area which is to be
covered by the researcher. There are four types of research philosophies which are used by the
researcher such as pragmatism, realism, positivism and interpretivism (Flick, 2015). In the
present dissertation, researcher will use positivism research philosophy. Positivism research
philosophy adheres to the factual knowledge which is gained through observations. Thus, in
order to attain the aim and objectives of research study, positivism research philosophy is
considered to be appropriate and optimum. Positivism relied on quantifiable observations that
leads to the statistical analyses. It can be understood that as a philosophy, positivism is in
accordance with the empiricist view that knowledge stems from human experience.
Research Approach
Discussion of research approach is essential in dissertation. Research approach is the plan
which consists of steps which consists of broad assumptions formulated by researcher to the
process of collection of data. Research approach is the approach of carrying out the research
study in most precise and optimum manner. There are two major types of research approaches
which are used by researcher in order to attain the aim and objectives of their research studies.
These are deductive and inductive research approaches. Deductive research approach is used by
researchers when they have to justify the hypothesis they formulated in the beginning of research
(Lewis, 2015). Inductive research approach is used when researcher has to analyse the research
questions in an effective and efficient manner. In the present dissertation, researcher will use
inductive research approach in order to analyse the research questions associated with the
research. Through this, researcher will be able to accomplish the aim and objectives of the
research study.
Research Design
Research design is the plan through which researcher will be able to attain the research
questions effectively and efficiently (Mackey and Gass, 2015). There are different types of
research designs such as descriptive, explanatory and exploratory that has been used by
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researchers in order to carry out their research study. In the present dissertation, researcher will
use exploratory research design. Exploratory research, as the name implies, intends merely to
explore the research questions and does not intend to offer final and conclusive solutions to
existing problems. This type of research is usually conducted to study a problem that has not
been clearly defined yet. In this manner, researcher will be able to explore the research questions
more effectively and efficiently. Thus, this research design will help researcher in accomplishing
the aim and objectives of research study.
Research Strategy
Research strategy refers to the plan which helps the researcher in attaining the aim and
objectives of the research effectively. This strategy formulated by researcher which helps him or
her in determining the way through which the goals can be attained in most precise and
appropriate manner. There are different types of research study which are used by researcher in
order to attain the aim and objectives such as meta-analysis, case study analysis, systematic
review, qualitative analysis, quantitative analysis. In the present research study, the researcher
will use qualitative analysis in order to carry out the dissertation. As data will be obtain from
secondary source, qualitative analysis will be more appropriate and effective. Qualitative
research involves quality or kind i.e. when the research is to be made on human behaviour,
attitudes, cultures and experiences, on the basis of observations and interpretation, the research is
said to be qualitative.
Ethical Consideration
Ethical considerations are norms and conducts that are followed by researcher while
carrying out the research study (Taylor, Bogdan and DeVault, 2015). In order to enhance the
effectiveness in the quality of research, it is essential and important for the researcher to work
according to ethics. In the present dissertation, researcher will ensure that data will be obtained
from authentic and reliable sources. Researcher will cite the author (s) name where he or she
referred from their articles. Researcher will further make sure that plagiarism issue can be
prevented. Researcher will write the dissertation in his or her own words in order to prevent
plagiarism. Thus, in this manner, ethical consideration will be followed in the research study.
Research Limitation
Research limitations are obstructions that are faced by researcher which affect the
effectiveness in the research study (Cobb, Brookover and Cobb, 2015). Discussion of research
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limitations are important as it helps readers in providing understanding of the issues that
researcher face. In the present dissertation, researcher presumed that due to lack of available
studies on the research topic, it will become challenging to find appropriate research articles.
Researcher further estimated that the cost of research articles will be high which affects the
budget of researcher while conducting the dissertation.
1.3 Outline
In order to attain the aim and objectives of the present dissertation, it is crucial and
important for the researcher to carry out the dissertation in a systematic and efficient manner. In
this part, researcher will provide brief outline of dissertation by elaborating each chapter of
dissertation in an explicit and succinct manner. This will help the end users by providing them
comprehensive understanding of each chapter of the dissertation which will be covered by the
researcher. In this context, the dissertation structure for present study is described as below: Chapter 1: Introduction – This is the first chapter of the dissertation. In introduction,
researcher will introduce the topic of the dissertation effectively and efficiently. The
chapter will compose of background, research aim, objectives and questions.
Furthermore, researcher will explain the methodology that will be used by him or her in
order to accomplish the aim and objective of the dissertation. Researcher will
demonstrates the outline of the dissertation which helps end users to comprehend the
subject matter effectively and efficiently. Chapter 2: Definitions – In this chapter, the researcher will provide definition of
important topic of research. The definition of various elements such as online trading,
offline trading, similarities and differences between online and offline trading will be
provided in this chapter. By reviewing the articles, journals and books written by
different researchers, the researcher will provide detailed understanding and meaning of
the elements related with online advertising in this chapter. Chapter 3: Online Advertising – This is the third chapter of the dissertation in which
researcher will provide detail understanding about the topics related with online
advertising. The new methods of online advertising will also be described in this chapter
by referring to senior authors and researchers. Chapter 4: Psychology of the buying process – In this chapter, researcher will explain in
detail about the psychology of consumers before and after purchasing the particular
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product via online shopping. The psychology of offline purchase and the psychology of
customer during online purchase will be assessed in this report. The similarities and
differences between psychology of consumers during online and offline purchase will be
described by the researcher in this chapter in order to enhance understanding readers. Chapter 5: Project management and marketing for online shops – This will be the fifth
chapter of dissertation. In this chapter, researcher will explain in detail about the phases
of project management for a product launch. Researcher will elaborate the reason for
insufficient market establishment of the new product and the Possibilities and tools for
better marketability of shock-liner recommendations.
 Chapter 6: Conclusion – This will be the last chapter of the dissertation. In this chapter,
the researcher will summaries the complete learning and findings in the most appropriate
and suitable manner which aid in enhancing the knowledge level of end users.
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CHAPTER 2 : DEFINITION
Introduction
In this chapter, researcher will provide definition of important terminologies which are
relevant to the research study i.e. online trading, online marketing, online advertising and offline
trading. The definition will be supported by the reviews of authors and researches who have
described these terminologies in their research study. Furthermore, researcher will also provide
similarities and differences between online trading and offline trading supported with current
literature and efficient examples.
2.1 Definition of online trading
The word online is totally mean “on the internet”. Online trading is an internet based
trading market which consists of simple buying and selling assets with the use of internet based
portals. In late 1990's after the coming of internet and high speed computers online trading
market is grown up at increasing rate. In online trading these things like bonds, mutual funds,
shares and currencies are buy and sell (Zekiri and HASANI, 2015). In addition, in online
marketing there are many other things also traded. At this online platforms a trader sells and buy
many products and there are also provides services. Many people trade online by becoming a
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Illustration 1: Online trading
(Source:5 Deadly Sins information from online stores and how to solve them, 2016 )

broker. In earlier years an investor would call or meet to people for trading. They could either
make a call or meet to people for their business. In fact, there was no other choice (Solomon,
Dahl and Polegato, 2014). This procedure is very lengthy and time consumption also too much.
In that time cost would also increase due to increase of time. Today with online trading it is
reduced and also time save. In other words people who trades online they save their time and
also money which is incurred due to transport and other reason. Even they can run their business
threw online without any help. The important things of this online business is they run their own
business rapidly and instantly. The online trader also control over trades than the traditional
trader.
People who trade online they can execute trades easily and faster than they ever could
face to face or with the use of telephone (Jankowski, Ziemba and Kazienko, 2016). Apart from
this they are being able to manage multiple positions continuously and the online trader has
access to the extensive data. In today's world internet is easily available for everyone and
everywhere so it is a merit for online trading that they can easily access their work and earn more
profits compare to the traditional trader. Another benefits of online trading is the increasing the
numbers of transaction and it can be executed and settled timely. When any investor is entered
into online market, the order of product is placed in a database which pre check currency
(Hamzah and Sutanto, 2016). The seller and the buyer both are satisfied at a level of currency
exchange rate and deal it. This all procedure is come within seconds and it is easy also compares
to make a phone call or meeting with people.
In online trading a special thing also come that is online advertising. This is also known
as online marketing or internet advertising or web advertising. It is a step of marketing which is
compulsory conducted during online trading. It is mandatory because most of the customers use
internet and view online advertising as an unwanted distraction with few benefits and they are
increasingly turned to another suppliers for their needed services (Zekiri and HASANI, 2015). In
online advertising it contains search engine marketing, email marketing, social media marketing
and mobile marketing. The important things related to online advertising is it promotes any
business quickly and cover too much geographical area with numbers of persons. For online
trading, there are many reasons for opting online advertising like it is relatively inexpensive, it
reaches a wide audience, it can be personalized for a target market audience, by using this it can
be tracked to measure success.
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Types of online marketing or advertising – for complying an online business here some types for
promote that business.
Display Advertisement – this is the oldest and frequently used method. By this method an online
businessman must find an Auto zone display ad on a popular blog or a banner ad promoting
the newest products.
Email Ads – it is very popular form of online marketing that most customers do not think about
them like an advertisement (Foxall, 2014). Sometimes email ads are comes in the form of
newsletters and coupons.
Social Media Ads – social media like you tube, twitter, Facebook, marketing messages are also a
big platform to conducting online advertisements. There are new innovations are come every
time like Taco Bell, snap chat etc.
Native Ads – it is using like sponsored post. For example virgin mobile doing a post and in that
post “6 texts to copy and paste to break up with your significant other” on Buzz feed, or in
the form of an adversarial.
2.2 Definition of offline trading
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Illustration 2: Offline trading
(Source: Why offline stores need to start taking their data seriously, 2015)

Researchers elucidated that offline trading is also known as Brick and Mortar mode of
business. It means that organisation have physical presence in a building or other structure
(Lavanya and Saraswathi, 2018). Offline business or traditional business is commenced at
physical place where people come, see or browse through products and purchase them as per
their desires. Individuals in Brick and Mortar business are able to give efficient customer service
than any other type of operation structure. Authors said that offline business is considered to be a
traditional street side business that deals with its customers face to face in an office or store. For
example, the local grocery stores, banks, shopping parlour are the best example of offline stores
(Van Reijmersdal, Rozendaal and Buijzen, 2017). Offline stores have several benefits and
advantages as compared to their online counterpart. Researchers said that customers still prefers
to visit stores, take experience about the products, ask questions in order to know more about the
product which influences their purchase decision. In simpler terms offline business brings a
sense of trust in customers (Wilbur, 2015).
Researchers elucidated that offline mode of trading enhances customer motivation as it
depicts the owner of the business is financially stable enough to have a shop or store. It also
establishes an element of professionalism making it quite popular amongst customers (Carling,
Han and Rudholm, 2015). Researchers said that customers would rather like to see and feel the
products before spending money on them. This is done usually when the product is Jewellery,
electronic items, clothes etc. (Yamagata-Lynch, Cowan and Luetkehans, 2015). Offline trading
indeed transforms the perception of customers and influences their purchase decision. Whenever
customer sees an item in showcase or in showroom he or she prefers to get more information
about the product and then make the purchase decision about it. It can be understood that offline
mode of trading is considered to be the most efficient source of trading as it helps in enhancing
the motivation and satisfaction of customer.
Researchers argued that offline trading have ample of challenges associated with.
Business managers and organisation in bricks and mortars faced the challenge of managing cost
associated with the infrastructure, human resources (Paswan and Ganesh, 2015). It not just
requires lots of money but also requires continuous supervision, monitoring and doing business
activities. Another challenge faced by business managers in bricks and mortar is increasing
competition with online trading and marketing. Online business activities has been flourishing in
Europe as majority of consumers prefers to purchase products and services online. Researchers
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