The document discusses the topic of online advertising in the service sector, covering definitions, types, characteristics, challenges, and pricing strategies. It highlights the growth and effectiveness of online ads while also addressing various challenges such as positioning, changing data, and competition with traditional media. Additionally, it emphasizes the importance of self-service technologies and promotion strategies for advertising agencies in today's digital landscape.

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Type— Assignment
Topic— Online Advertisement in Service sector
Submitted to— Purvi Mam
By- Rajat Gandhi
TY BBA (Sem-5)
Roll No. - 22

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Overview—
 Introduction
o What is Service
o What is Advertising
 Online Advertising
 Types of Online Ads
 Characteristics
 Challenges
 Yield Management/PricingStrategy
 Self-Service Technology
 Promotion

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What is Service?
A Service is an act or performance offered by one partyto another
that is essentiallyintangible & does not normallyresult in
ownership of any of the factor of the production.
Service is a type of economicactivity that is intangible, is not stored
and does not result in ownership.It is consumed at the point of
sale. Services are one of the two key components of economics,the
other being goods.

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Advertisement-
Advertising is the paid,impersonal,one-wayMARKETING of
persuasiveinformation from an identified sponsordistributed
through channels ofmass communication like Newspaper,
pamphlets, Internet,TVetc.to promote the adoptionofgoods,
services or ideas.
Online Advertisement-
Online advertising is a form of promotion that uses the Internet
and World Wide Web for the expressed purpose ofdelivering
marketingmessages to attract customers.
Ex. Contextualads on search engine results pages, banner ads,Rich
Media Ads, Social network advertising,online classifiedadvertising,
advertisingnetworks and e-mail marketing, includinge-mail spam.
Online advertisement was started in 1994 in India,and now it
graduallyincrease with the market competition.
 Here are some types of online advertising
• Google Search Ads
•AdWords Ads
• Social website ads

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• Banner Ads
• Google Display • Mobile Ads
• In-Game Ads • Email Ads
• Video Ads
Characteristic of OnlineAdvertisement-
1. Wide coverage-Online advertising
can reach people all over the world via the Internet all around
the clock, without restrictions to domain and time.
2. Effective-The number one reason more and more businesses
are spendingmore and more on online business advertisingis
because it produces results.
3. 24/7- Spreadingof the Advertisement on the internet is
continues without anyinterruption,it may possible that service
provider is asleep or not available but still customer can
experience the service or know about it virtually.
4. Variety-There are very huge verityin the online advertising
like: displayadvertising,search engine MARKETING,search
engine optimization,social media MARKETING,email
marketing,referral marketing,video marketing,webinars,
podcasts,online radio,online TV,banner, directorymarketing,
strategic partnership,apps and widgets.
5. Statistical Accuracy- It’s very hard for traditional media
advertisingto accuratelycalculate how many people can
receive the information ofan advertisement. While online
advertisingis different, it can conduct accurate statistics on
how many times the advertisement is exposed in front of

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users, how manyfurther clicks users make after theyare
interested in the advertisement,and when and where these
users lookup the advertisement.This can help customers
correctly evaluate advertisingeffects and examine their
advertisingrelease strategies.
6. Interaction & Direct sense experience-Carriers of online
advertisingare basicallymultimedia and hypertextdocuments.
If consumers are interested in a specific product,theycan
further know more, detailed and vivid informationabout it by
just clicking the mouse.It allows customers to reallyexperience
goods or service, and conduct booking,transaction and
settlement on the Internet,which can greatlystrengthen
development ofonline advertising.
7. Instant Tracking-As in the example above,having the abilityto
track web users in realtime is a powerful feature that can only
be achieved online.
8. Automated- Business connects online business advertising
with e-commerce. An e-commerce enabled website simply
means that you can transact business on it.
9. Sharebility-Sharing informationonline via e-mail oron social
media sites is so common. Most people are used to sending
and receiving links,documents and more to and from friends,
familyand co-workers. This has given rise to social media
marketing, Internet viral marketingand other ways of online
business advertising.
10. Targeted- Through the online advertisingbusinesscan also
able to saw theiradvertisement to the people of some
particularsegment.This segment may be of Region, Age group
or gender.

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Challenges faced by OnlineAdvertising-
1. Place of Advertisements-Advertisement maynot be placed at
the perfect position on the website.
2. Changes in WEB data-Google changes its data 500-600 time in
a year, with its people also change theirsearch options so it is
very difficult forthe advertisers to identifywhat people likes
most and post advertisement there.
3. Platforms changes- Todaymost of the people would like to surf
the internet from mobile or tablet rather than the Desktops, so
it is very difficult of Advertisingagency to displaythe ads on
mobile.Ex. If a person surfingthe social site say facebook then
he/she does not able to see the advertisements on facebook
from mobile or tablet.
4. A Traditional mediums-In India still majorityofthe people like
are like to know news by watchingTV or readingnewspapers in
the morningtime, so it is very big challenge in India foronlibe
advertisingindustryto attract customer first before traditional
mediums like TV, Newspaper or Radio.
5. Mentality-It is a very typical challenge for an advertising
agency to make an advertisement such that it suits the culture
or mentalityofthe people of that segment.
6. Data waste on online videos-It is observed that manypeople
tried to avoid online videos and directlydownload them only
because of bombardingofadvertisement videos.
7. Skipping-Advertisingagency & business both are do hard work
to make an advertisement which are only of 20 to 30 sec. and
tried to make it concept clear but when they ads it on videos of
YouTube before online video streamingmost of the people are

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click the SKIP button and theyavoid those ads and then the
purpose of those ads are demolished at some level.
8. High resolutionads vs. low net speed- In India still the speed of
Internet is very slow with compare to other countries.Today
India is going on the path of Digitalizationso it is necessary to
makes video ads in 1080p but due to data transmission speed
it is very difficult to open it, so people tried to neglect them.

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Yield Management-
Yield management is a variable pricingstrategy, based on
understanding,anticipatingand influencingconsumer behaviorin
order to maximize revenue or profits from a fixed,perishable
resource.
Yield Management,controllingcustomer demand through the use
variable pricingand capacity management to enhance the
profitability.Most of this work is of tactical and mathematical
rather than managerial.
Todaythe market of online advertisingis growing and with this
competition is also gone tough between advertisingagencies. So
Todayit is very important forthem to make the maximum
utilization ofmoneyi.e. yield.
Normallyin Online advertisingindustrymainly3types of Pricing
strategy are there.
i) CPM (cost per thousand)
ii) CPC (Cost per clicks)
iii) Customer Action
i) CPM- In this strategy Advertisingagencycharged on the basis
of impression on one thousand customers.ForEx. If website
publisher charges ₹ 100/thousand impression,so advertiser
must pay₹ 100 for 1000 impressions ofits ad.
ii) CPC- In this strategyAdvertisingagency charged on the basis
of Clicks that are done on the ads. If yourad performs well
and a lot of users click through to yoursite, each click-through
costs you less.On the other hand,the lower the click-through
rate the more each click costs you.
iii) Customer Action-The customer action model is based on
actual sales or anotherdirect customer action that results
from an ad.The best example of this model may
beAmazon.com'sAssociatesProgram,which pays a bountyto
Web sites that refer visitors back to Amazon.com.Inthis case,

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the "banner ad"is simplythe special Amazon URL, which is
built into the linkfrom the referring site.
iv) Fixed rate- In this pricingstrategy advertiser has to paya fix
amount for an ad. Reach of ad and clicks are doesn’t matter
here.

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Self Service Technologies-
In the Advertisingindustrythis trend ofSelf service is so much
populartoday.In this technologyAdvertiser does not require to
contact agency person to give the advertisement,theycan directly
post theirads & pay the cost of advertisement.
This technologyis very useful when nobodywants to waste their
golden time. In this Self-service technologyof advertisement
advertisers just simplygo on the website of the advertisingagency
and fill the form of advertisement,This form is designed in such a
manner that not a single topicis missed out relatingto the ad.
Advertiser can also give the video and photos as an advertisement.
Facebook.com is a
very great example for the self-service advertisement.In FB
advertisers does not require contactingFB customer services.
Facebookcreate a very friendlyadvertisingpattern that anybody
can promote theirproduct or services between more than 1 billion
people. FB also gives the right to advertiser to control on theirad.
Advertisers can also decide thatpeople ofwhich age group,which
gender, people of which location,people ofwhich interest will saw
this ad.
As per theirrequirement FB controls theirad and as that theyalso
charge to advertisers.
Self-Service technologyis very easy and fast, instead ofthat as per
the survey of Forbes magazine only 20% of advertisers out of all
online advertisers like to go with Self-service technology.The main
reason is that this technologyis normallyuseful onlyfor small

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budgeted and small scale businesses because huge business whose
advertisements are lakhs of rupees does not like to pay it with
credit card and they did not want to drop theirvaluable ad on the
trust of only advertisingagency.

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Promotion-
Todayin the world of competition even advertisingagency cannot
be stand alone. Advertisingagencyalso supposed to promote them
self.
In promotion advertisingagencynot onlypost ad on theirwebsite
but they may give it on either on social media or video streaming,
other websites,Google search. So we can say that promotional
tools also require promotion.