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Analysis of Chinese millennial consumers' preference for online advertising channel in China

Written by Liwen Zhang, Jinjing Song & Xinyu Li

Paper category

Bachelor Thesis


Business Administration>Marketing & Sales




Thesis: Online advertising The literature provides the definition of online advertising. Li & Lo (2015) pointed out that online advertising is transmitted through online video systems, enabling users to watch and even share. However, earlier articles provided a more precise definition of messages deliberately placed on third-party websites, including search engines and directories provided by Internet access (Ha, 2008). At the same time, the author emphasizes that intentional messages mean that advertisers intend to put the messages on online media (Ha, 2008). In the study of Hwang, McMillanand Lee (2003), they explained that Internet advertising is more than just banners, buttons, and pop-up windows. At the same time, the company website is broadly defined as Internet advertising (Hwang et al., 2003). Therefore, the definition of online advertising or Internet advertising is based on the author's research direction and field, which can be specific or broad. In addition, with the passage of time and the development of online advertising, the understanding of online advertising has also become diversified. There is obviously a relatively large time span between the above-mentioned documents, so this is another reason why they have different definitions of online advertising. 2.1.1 Traditional advertising and online advertising In the early literature, Hanekom and Scriven (2002) pointed out the current situation and the development trend of traditional advertising and online advertising, and at the same time carried out a detailed division and interpretation of traditional advertising. The author discusses the controllability, ease of preservation and high credibility of traditional advertising from three categories: print media (magazines and newspapers), live media (broadcasting, movies, etc.) and outdoor media (Hanekom & Scriven, 2002) Features. In another document, the author based on the above-mentioned clear classification of traditional advertising, through the display of traditional advertising, F2C (company to consumer) impressions and C2C (consumer to consumer) on brand building and customer acquisition of social information ( Vries, Gensler & Leeflang, 2017)). The author points out that traditional advertising is still effective today. More specifically, traditional advertising is the most effective way to influence consumer awareness, consideration and customer acquisition (Vries et al., 2017). In addition, Vries et al. (2017) and Fulgoni (2015) also mentioned that the dissemination of C2C or F2C on social media can supplement traditional advertising. Although the author affirms that traditional advertising has an undeniable positive impact on brand reputation and brand recognition, he also points out that traditional advertising lacks interactivity. 2.1.2 The development and current status of online advertising Online advertising includes countless delivery platforms, including search engine results, email advertising, ad insertion, brand blogs, organic and paid social media advertising, mobile advertising and display advertising (including banner ads). On desktop and laptop devices (Namin, Hamilton, and Rohm, 2017). Banner advertising is currently the most widely used online advertising of all types. It is easy to develop and has a low cost of delivery (Papatla & Bhatnagar, 2002; Constine, 2017). The tables are mainly derived from text and images, and do not rely on continuous information updates from advertising companies (Suckkee & Leckenby, 1999; Telang, Boatwright & Mukhopadhyay, 2004). However, some studies have shown that banner blind spots are one of the key issues that reduce the effectiveness of banner advertisements. Its significance is to expose the fatal problems of banner advertisements such as low recognition rate and short recall time (Brajnik & Gabrielli, 2010). And it has been regarded by consumers as the equivalent of online direct mail (Breuer & Brettel, 2012). Specific research shows that the click-through rate of banner ads to attract external corresponding frequencies has dropped to 0.36% ("Home", 2020). Stimulating and targeted banner advertising can reduce the appearance and impact of blind spots to a certain extent (Brajnik & Gabrielli, 2010). Therefore, the advertising market has gradually developed new types of counter advertising, such as affiliate advertising, which has been evaluated as "smart banners" (Dou, Linn & Yang, 2001). Compared with ordinary banner ads, smart banners usually have more accurate targeting to reduce the difficulty of targeting the correct target group, and most advertising forms do not require high upfront investment costs or operating costs (Douet al., 2001). Search engine advertising is based on consumers' active and autonomous search to generate visual advertisements that match facts or consumer cognitive information (Breuer & Brettel, 2012). Search engine advertising currently accounts for 47% of online advertising revenue (Silverman, 2010). Douet al. (2001) believes that it can be classified as one of the most frequent and mature online advertising methods in "smart banners", because there are specific figures showing that 90% of online users tend to use it in their daily lives to satisfy Various needs when surfing the Internet (IAB, 2009). As users participate in such advertisements, they bring excellent positioning effects (Nabi & Oliver, 2009), fully extend the service life of advertisements (Keller, 1987), and create interesting online advertisements to enhance memory effects (Hyun, Gentry, Park and Jun, year 2006). Read Less