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Dissertation Proposal MBA


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Effectiveness of Online Advertising on Social Networking Sites

Effectiveness of Online Advertising on Social Networking Sites

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  • 1. Mitun Dutta MBA Dissertation Proposal Page 1Dissertation proposal onEffectiveness of Online Advertising on SocialNetworking SitesTable of ContentsTopic Page no.1. Dissertation Title…………………………………………………………………..2. Purpose of the study……………………………………………………………….3. Research Questions………………………………………………………………..4. Aim and Objectives of the study………………………………………………….5. Scope of the study…………………………………………………………………6. Review of literature………………………………………………………………..6.1 Discussions of Previous researches on Advertisement on social networking6.2 Emergence of social networking6.2.1 Face book6.2.2 Twitter6.2.3 MySpace6.3 Type of online advertising7. Research Methods…………………………………………………………………8. Data collection methods………………………………………………………….8.1 Sampling procedure sampling size8.2 Sampling size8.3 Study population8.4 Study Unit8.5 Study instrument8.6 Data Processing and analyzing8.7 Graphical Representation8.9 Operational Design9. Conclusion……………………………………………………………………………10. References
  • 2. Mitun Dutta MBA Dissertation Proposal Page 21. Dissertation TitleEffectiveness of Online Advertising on Social Networking Sites2. Purpose of the studyIn recent times social networking websites not only provides a space for individuals to interactwith other people, but also provides a good opportunity for businesses to reach their targetcustomers by means of advertising. Form of advertising on online that focuses on and is givensocial networking sites is called social network advertising (Mrinal, 2008). These type ofadvertising has the potential to enable near-universal free or cheap access to services and content(Advanced Internet Policy Report, 2009).1. To investigate the impact of social network advertisements on providing the actualinformation about products.2. To explore the effectiveness of online advertising in reaching out to consumers3. Research QuestionsProposed study will answer the questions:1. How much advertising on social networking is effective in sales for companies?2. Which is the most preferred approach for advertising on social networking websites?3. How a customer like is approached by advertisements on social networking sites?4. Aim and Objectives of the studyThe proposed study aims to discuss a brief overview of the market of social network advertisingand to determine the effectiveness of advertisements on social networking to attract customers.
  • 3. Mitun Dutta MBA Dissertation Proposal Page 3This paper has two main objectives:a) To critically evaluate the effectiveness of social networks as an important advertisingmediumb) To identify the criteria for successful advertising on this new mediumc) To explore the coverage of online advertisement on social networking sitesd) To investigate the importance of online advertisement to know about products and companies5. Scope of the studySocial networks advertising is a widely discussed issue today and a lots of researches have beenconducted on the topic. Although social networking websites have become popular in recenttimes, but there are little academic researches and literature to describe this trend fromconsumers perspective. Advantage of social networking advertisement such as: myspace,facebook, friendster, twitter, youtube etc., is that by using users‟ demographic informationadvertisers can appropriately target their advertisements. The postmodern consumer trust theinternet as transparent and paid placements and paid reviews will outweigh because of ther therecommendations of known friends. The current paper will focus on three social networks andadvertisements in it: Facebook, Twitter, Myspace. The proposed study includes the perspectiveof the large base of customers.6. Review of literature6.1 Discussions of Previous researches on Advertisement on social networkingOn advanced Internet Policy Report, (2009) it is demonstrated that Promotion on internet byadvertising quickly acquiring the reliability of marketer than that other tools of Marketing. Thisreport also explored that online advertising, which has a market value of $40 billion at 2009 thattend, doubled in 2010 (Advanced Internet Policy Report, 2009).
  • 4. Mitun Dutta MBA Dissertation Proposal Page 4This market value indicates a shift towards online advertisement from traditional marketing.Online advertising is alive for round the clock and that leads to gain the return on investment ofadvertisement. On line advertising is preferable by the marketer because the target is moreprecise and provides specific measurement about the target than other marketing media.A current analysis by Epsilon explores that half of chief marketer like to use data motivatedpromoting techniques. A recent report of IAB/PWC indicates that, in UK less than a period of 2years the market growth of online advertising increased near about 8%. The comparison betweenthis two parameter shows that, the market shares of traditional advertising platforms, such as TV(21.7% - 22.1%), Press Display (20.8% - 19.3%), Press classified (16.2% - 14.6%) havedownward slope between 2006 and 2008 (Advanced Internet Policy Report, 2009).Marketing is all about networking. Now a day it goes online. The rise of social networking sitelike as MySpace, Face book over last few years has been phenomenal. It is explored that thesesocial networking sites have grown to new height, each sites currently boasts more than 60+million genuine visitors each month. It is a common thinking to all marketing agency to cover allpotential target. Through this new marketing policy marketer can convey their message to a largescale by providing less effort than other media. (Mrinal,2008).This paper will set up an analysis of the importance of social networking sites to promotebusiness by advertising and also try to study the current advertising modes that are used.Spence (2010) argued that advertisement in online covers the most. This has also supported by(Pergelova, et al. 2010). According to (Pergelova, et al. 2010), they establish that onlineadvertising enhance the efficiency and that lasts long run.In an empirical research on control of friends to buy of users in an online social network revealsthe category of users with different behavior. The low-status group (48% of users) isdisconnected, shows very poor interaction with different users and is not biased by socialpressure. The middle-status group (40% of users) is not adequately connected, tends to logicalnon-buying action on the site and has a well-built and positive effect due to friends‟ buying. Thehigh-status group (12% users) is perfectly connected and dynamic on the site, and tends to a
  • 5. Mitun Dutta MBA Dissertation Proposal Page 5momentous downward effect for the purpose of friends‟ buying. This research indicates thedifference of purchasing habit and effect of advertisement on habit. This impact leads to nearly14% decline in the returns of this huddle. (Iyengar, Han and Gupta, 2009).Primarily web was used as a marketing tool that promotes the business but soon it converts into acritical distribution medium for the up to date business organization. On line are used as a majormedium for brand communication (Thompson, 2002; Jothi, Neelamalar and Prasad, 2011). Areading on the usefulness of advertisement on social network it is argued that, in net advertisersrepresents their products by a normal way to grow the attention to check out the product detailsby click. It can be concluded that, social networking sites are used as a major tool to promoteand develop the business‟s brand identity (Jothi, Neelamalar and Prasad, 2011)An explanatory study on some footwear sales company reveals that some industry are highlyinterested to use on line advertisement whereas other shown a very negative approach. Theresearch states that, the Internet is the most powerful channel to advertise because almost allpeople relies on the Internet and thus online advertising is far better than usual advertisingmethod. People are living in a virtual world by using social networking sites widely (Kaur,2008).It is rightly said that traditional media have narrow coverage comparison to Internet. It alsoregarded as cheap way of marketing. (Jensen and Jepsen,2008). They also argued thatcomparatively costs are reduced and return on the costs is high. The rise of social networkinglike Twitter and Face book may lead any firm to spend a lesser cost and develop gender focusedadvertisements based on user‟s information (Hoy & Milne 2010; Cramphorn, M.F. 2011).6.2 Emergence of social networkingAccording to Danah Boyd and Nicole Ellison (2007), social networking sites can be said as“Web-based services that allow individuals to (1) construct a public or semi-public profilewithin a bounded system, (2) articulate a list of other users with whom they share a connection,and (3) view and traverse their list of connections and those made by others within the system.”
  • 6. Mitun Dutta MBA Dissertation Proposal Page 6Social networking site was started in 1997. The starting of in2001 was the second stepof social networking sites. Whereas Face book in 2004, the most popular site around the worldusers. It also varies from countries to countries: Orkut, Google‟s foray into social networking,had tremendous users in India and Brazil. Windows Live Spaces, Microsoft”s network combinedwith instant messaging service, became trendy in Mexico, Italy and Spain. Some sites alsoprovides different services, such as- sharing digital media, by Flickr and YouTube, and treated asmost popular websites all over the world. (Mrinal, 2008)6.2.1 Face bookOn February 4, 2004 Face book started its journey and regarded as pioneer in social networkingwith 800+ million dynamic users around the world. Its intention is to help the people to connectand share to become world a very open arena. Banner advertisements and referralMarketing is its main source of income.Commonly it reveals 30 non-personally particular information from user‟s summary. This data isserved for behavioral advertising, which benefits their customers. Face book collects all the datatransparently but the reveals the data which is non- personal according to their sense. Face bookAds and Social Ads are their two sectors of advertisements, both of them started their journey inNovember 2007.Face book Ads is a common targeting advertising formation based on non-personally-identifiable data and derived from customer‟s profile. It is a standard targeting stagethat conveys the message for certain group by ensuring their Characteristics and interests(Advanced Internet Policy Report, 2009).6.2.2 TwitterWith 300+ million dynamic users Twitter is the second largest social networking site around theworld. It tends to cover its users interest and it is one sort of micro blogging site. At 2010 itcovers near about $140million revenue. Twitter focuses customer who belongs to a celebrity intheir arena. In a very short time, less than a year 57% of Indian joined in this site, which providesthe idea of popularity of social networking and micro blogging. That becomes a very common
  • 7. Mitun Dutta MBA Dissertation Proposal Page 7platform for marketers to develop their marketing communication strategy and also create a veryrigorous brand value..6.2.3 MySpaceLapinski‟s said that, the website has become “the next generation of marketing, advertising andpromotion, exquisitely disguised asocial networking”.My space creates a common plat form for all the corporation and advertisers. They allowcreating a page to promote the corporation and business. In MySpace advertisements aretormented throughout the site from the time users start to use and groups they contact whenscrutinize the site. It enjoys a number of common competitive advantages over Face book andYou Tube. It has a greater number of user comparisons to the both of the company and datareveals that users spend more time on MySpace than other social networking sites. It has agreater visiting rate near about $1billion per month, which is relatively more than Face book andYou Tube. But recently the traffic has leveled due to more competition. Still it has a favorablesituation to marketers to reach out the global audience (Mrinal, 2008).6.3 Type of online advertisingInternet already generated three categories of advertising. “Display” or “banner” ads, came firstin the shape of graphical box structure on web pages, but now with videos. Today these are 32%of on net advertising income. Next are treated as ads, which is now 17% of the total. The pest oflots of small-town media, are posted as Craigslist.The latest and largest, sort is advertising, with41% of the total, invented by Google, Together, these three types of online advertising arealready transforming entire industries and businesses (, 2007).7. Research Methods
  • 8. Mitun Dutta MBA Dissertation Proposal Page 88. Data collection methodsAt first the researcher introduced herself to the respondents and about the research project.Researcher also guarantee about the confidently and anonymity of the information or datacollected from the responses of the respondents. Then respondents are asked to volunteer aportion of their time. Each questionnaire contained a cover- latter so that respondents can be sureof the guarantee given by the researcher. Finally, by using the above mentioned techniques datahave been collected for this researcher project.8.1 Sampling procedure sampling sizeIn this study non-probability sampling will be selected to collect relevant data as it may proveperfectly adequate because the researcher will conduct a preliminary research study. Under thisnon-probability sampling techniques, purposive sampling will be used to select respondents.8.2 Sampling sizeRespondents will be selected purposively according to access to the respondents of theresearcher and other members of the group. By using purposive sampling, total 50 respondentswill be selected from the sample population.8.3 Study populationIn current study the study population will be Face book, Twitter and Myspace user community,8.4 Study Unit
  • 9. Mitun Dutta MBA Dissertation Proposal Page 9In this study each individual user in the community of Facebook, Twitter and Myspace will beselected as study unit.8.5 Study instrumentUnder the survey research, interview administered questionnaire has been selected as the studyinstrument. Survey was conducted randomly among Face book, Twitter and Orkut usercommunity, by sending questionnaire through online to collect the individual opinion from therespondents.8.6 Data Processing and analyzingWhen all data will be collected researcher will check whether there is any information gap ornot. After that „statistical program for social science‟ (SPSS) a computer base statistical dataanalyzing software will be used to analyze and interpret data. Various interpretations of the datahave been provided such as frequency distributions, mean, median and mode, standard deviationhas been used to test hypotheses.8.7 Graphical Representation1. Different types of exploitation, average wage level, country of destination foe workingwill be presented graphically by pie chart.2. Investments in different sources will be presented by bar diagram.8.8 Operational Design1. Time LineThe proposed research will be conducted within 1 month. The time allocation will be asfollows:a. Interview = 10 daysb. Data analysis = 10 daysc. Draft report writing = 5 daysd. Final report writing = 5days
  • 10. Mitun Dutta MBA Dissertation Proposal Page 109. ConclusionRational and repetitive marketing helps every consumer to make proper decision about what hewants, based on true information about products, which has become possible by advertising.Virtual social networking websites become one of the major spaces for encouraging onlineconsumption. Changing pattern of consumer consumption pattern, type of advertising anddetailed information about products in purchases can be seen now a days (Clemons, Barnett andAppadurai, 2007). For all these reasons the proposed study aims to critically evaluate theeffectiveness of social networking advertisements from the perspective of the consumer.Ref:Advanced Internet Policy Report Online Advertising: Confronting the Challenges, 2009, PolicyEngagement Network, Available from:, Danah and Ellison, Nicole, 2007, Social Network Sites: Definition, History andScholarship, Journal of Computer-Mediated Communication, Vol 13(1).Bryman, A. and Bell, E. (2007), Business Research Methods, (2nd ed.), Oxford: OxfordUniversity Press.
  • 11. Mitun Dutta MBA Dissertation Proposal Page 11Clemons Eric K., Barnett Steve , Appadurai Arjun, 2007, The Future of Advertising and theValue of Social Network Websites: Some Preliminary Examinations, In ICEC 07:Proceedings of the ninth international conference on Electronic commerce, New York,ACM, pp. 267-276.Iyengar Raghuram, Han Sangman, Gupta Sunil, Do Friends Influence Purchases in a SocialNetwork?, 2009, Harvard, Harvard Business School, Available P. Sri, Neelamalar M. and Prasad R. Shakthi, 2011, Analysis of social networking sites: Astudy on effective communication strategy in developing brand communication Journalof Media and Communication Studies, Vol. 3(7), pp. 234-242, Available from:, Inderjit, 2008, Online social networking as and advertising medium: footwear salesindustry, Ireland, Available from: Todi, 2008 , Advertising on Social Networking, Wharton Research Scholars JournalWebsites University of Pennsylvania, Available, P. (2010). Website Marketing with Social Networking Get Web Traffic withFacebook, MySpace, and TwitterWord of mouse: Will Facebook, MySpace and other social-networking sites transformadvertising? Nov 8th 2007, Sun Francisco, Economist, Available from:
  • 12. Mitun Dutta MBA Dissertation Proposal Page 12