Impact of Online Advertising on Consumer Buying Behavior

Impact of Online Advertising on Consumer Buying Behavior.

Jewel Chowdhury*¹, Dr Manish Sarker², Kowshik Datta³

¹Assistant Professor, Department of Business Administration,

Ishakha International University, Bangladesh

²Assistant Professor, Department of Business Administration & Additional Director (IQAC)

Ishakha International University, Bangladesh

³Department of Statistics, Comilla University, Comilla, Bangladesh

ABSTRACT

Today’s situation is overflowing with the most up-to-date necessities of the modern future, which is quickly becoming an unavoidable reality. Online advertisements are expanding and becoming more expensive. It’s crucial to know what factors determine the success of online ads. Customer response to online advertising purchasing behaviors is the subject of this research. For this goal, the study was carried out with the help of both principal and secondary databases. Primary data is gathered through the researchers’ observations and field surveys, and secondary data is gathered through comprehensive literature such as magazines, journals, e-journals, websites, books, and newspapers, among other sources. This study aims to evaluate several aspects associated with internet advertising and how they influence shopper purchasing behavior.

Keywords: Brand loyalty, social media, online purchasing, online consumers and advertisements.

INTRODUCTION

Online advertising is a sort of communication technology that resembles traditional advertising but uses other communication strategies to new technical and medium-based constraints. Online advertising is the distribution of advertisements to online consumers through websites, e-mail, ad-supported software, and Internet-connected cell phones.( Bakshi, & Gupta 2013)

The buyer’s preference for or hatred of the marketed goods frequently influences their purchasing behavior. (Khandare & Suryawanshi 2016)

Some essential indicators of consumer purchasing habits have been selected based on a survey of the literature. (Shumaila and Ayesha 2013)

• The advertised product’s quality
• The advertised product’s price
• Information, entertainment, and persuasiveness
• Advertising’s brand image
• Endorsement by celebrities

Basic data were acquired using questionnaires, and tertiary data were gathered from the internet, journals, and business periodicals. In March of 2024, a survey was done. A total of 200 respondents were surveyed.

Research Problem

Do online ads have more advantages and are more affordable than traditional forms of advertising?

Research gap

Comprehensive Analysis: Previous research often focuses on isolated factors such as social media influence or brand perception, lacking a holistic view of how various online advertising elements collectively affect consumer behavior in Dhaka.

Demographic Variations: There is limited exploration of how different demographic segments (age, gender, income level) respond to online advertisements, particularly in the context of Dhaka’s diverse population.

Objectives

The purpose of this study is to assess several aspects of online advertising and their impact on customer buying behaviour.

Online advertising is a type of marketing and advertising that involves sending promotional messages to customers through the Internet. It’s also known as web advertising, internet marketing, or online marketing. Many people find online advertising to be disruptive for a variety of reasons and have increasingly turned to ad-blocking. It is referred to as programmatic advertising when software is employed to make the purchase. (Online_Advertising, 2024)In the last ten years, online advertising has exploded. By the year 2000, the expense of the amount of money being spent on online advertising in the United States had climbed to $8.2 billion. As more people connect to the internet and spend more time online, the total has increased to $12.7 billion. Online advertising began in 1994 when HotWire sold the first banner on its website and has since evolved into an important tool for ensuring that businesses get fair returns on their products and services. (Bakshi, & Gupta 2013)

Since its inception in 1994, the World Wide Web has grown to be an important medium for Internet advertising. Even though the Internet generates less than 5% of advertising revenue in the United States at the time of writing, polls suggest that it accounts for roughly 14% of all media consumption in the country. (Deshwal, 2016) In 2004, slightly more than 150 million Americans used the Internet regularly. In 2004, online advertising spending in the United States totalled more than $9.6 billion, and it is expected to reach $26 billion by 2010. The fact that search engine businesses such as Google and Yahoo! generate advertising money is perhaps the most dramatic evidence of the internet’s growth as a medium for advertising is perhaps the most dramatic indicator of the internet’s growth as a medium for advertising. (Deshwal,2016)

Fig1:Online Advertising Source:(Deshwal,2016)

RESEARCH METHODOLOGY

This is a descriptor study. Furthermore, it is an empirical study based on primary and secondary data. The goal of this study is to look into the relationship between celebrity endorsement and customer purchasing choices influenced by internet ads. In addition, the elements that influence customer purchase behavior as a result of internet advertising will be investigated. The researchers gathered practical information through a questionnaire and a field survey, which was used by Excel for data analysis.

The researcher used a mixture of qualitative and quantitative research. Descriptive and explanatory research was used for questionnaire techniques for finding the consumer judgment preferences, expectations, demands from a product, and perceptions about the organization, attitude, and overall views.

It was a self-administered questionnaire. Data were collected from the respondents by using: Simple random sampling. By using this sampling technique, the researcher selected a small number of respondents from the large population of Dhaka City, Bangladesh. This survey study was conducted in March 2024.

This study used 200 respondents to see if they were connected to the study’s major goal and objectives.

LITERATURE REVIEW

Internet advertising is another term for online advertising. As a result of the internet’s growth, online advertising has become a requirement. In 2018, there will be over 4.54 billion internet users, according to a report by Digital Report with half of them spending the majority of their time on search engines. This is a true blessing, as it opens the door to millions of new prospects.(sortlist.com/online-ad 2024)

Consumer behavior is investigated by researchers, organizations, and marketers to better understand what motivates a consumer’s buying pattern and product and service choices. Economic status, morals, polish, personality, age, and education are all factors that impact consumer behavior. (Kotler & Keller 2021).

Online advertisements’ reliability has a significant impact on consumers’ trust and purchase decisions. Islam et al. (2021) found that fast searching and confirming the accuracy of product information are important variables influencing Bangladeshi superstore customers. According to LuLu et al. (2023) surveyed young customers in Dhaka and discovered that many elements, including the distinctiveness of marketing, time-saving features, security, ease of ordering, and feedback mechanisms, had a major impact on their online advertising decisions as well as positive effects.Consumer opinions and purchase decisions are greatly influenced by online advertisements. The efficiency of influencer marketing in increasing brand recognition and sales in Dhaka was investigated by Sultana (2024).

One type of online ad campaign is display advertising, web banners, often known as banner ads, are little boxes of advertisements that can be found on a variety of websites. These banner ads help to promote a product and attract visitors to a company’s website. Static, animated, dynamic, interactive, and televised commercials are all options. (Khandare & Suryawanshi 2016)

Advertisers target banner advertising in a variety of ways, encompassing behavioral, demographic, geographic, and redirecting targeting, as well as site-based targeting. The process of using the internet to create website traffic and target and show marketing messages to the proper clients is known as online advertising. (Khandare &Suryawanshi 2016)

The purpose of Internet advertising is to identify markets through the use of innovative and practical solutions. Since the early 1990s, the rise of online advertising has been exponential, and it has since become the industry standard for both large and small businesses (Khandare & Suryawanshi 2016)

Advertising over the internet is a sort of marketing that takes place on the internet. The quick spread of product information without respect to regional boundaries is a significant advantage of online advertising. The rapidly evolving field of interactive advertising, which presents new hurdles for internet advertisers, is a major challenge. Banner ads, search engine results pages, social networking ads, email spam, online classified ads, pop-ups, contextual ads, and spyware are instances of Internet advertising. (Shimp, 2007)

Online advertising format

• Websites: Organizations and their customers use websites to generate and perform exchanges. Websites are an integral part of a marketing strategy, online marketing activities, with other forms of advertising complementing them.
• Display or Banner Ads: Throughout the internet’s brief advertising history, the static advertisement is known as a display, or banner, which has been the most popular advertising format. This type is equivalent to a static print ad in a magazine or newspaper. Banner advertisements are a common type of web advertising.
• Rich Media Formats, Pop-Ups, Interstitials, Superstitions, Video Ads, It was only a matter of time before online advertisers began experimenting with more dynamic online formats than banners in terms of motion, images, and sound. Rich media advertising is a newer type of web advertising.

Let’s look at some of the different sorts of rich media. Pop-ups are advertisements that show on the screen in a new window that appears out of nowhere while a Web page is loading. Interstitials are sites that are called after the word interstitial, which means “between two things.” In short, pop-up ads and interstitials are both obstructive, but in different ways.

• Superstitions: are animated ads that appear over or above a Web page. Finally, online video advertisements, also known as streaming video, are audio-video advertisements that are similar to traditional 30-second television commercials but are typically cut to 10 or 15 seconds and compressed into smaller file sizes. (Shimp, 2007)
• Web Diaries: Blogs are, in a sense, “everyman’s” way of engaging with others and forming digital communities in which people, mainly of like mind, can share their thoughts on personal concerns. In this context, products and brands are occasionally discussed. Companies can utilize this space to try to boost their brand equity and possibly attract new business.
• Blogs: Brand marketers can either start their blogs or simply promote on blogs that are related to their brand. For instance, Google offers a service that permits small adverts to be inserted on blogs.
• Podcasts: Podcasting is an online way of delivering audio files that allows consumers to subscribe to a feed and get new audio files automatically. In effect, podcasters produce their radio broadcasts. Customers subscribe to podcasts through aggregator software, which periodically checks for and downloads new content and makes it available for playback on PCs and mobile devices.
• The use of email: Many people primarily use the Internet to send and receive email. It’s no wonder that marketers have turned to email as a viable advertising medium, with millions of people online and the number expanding by the year. Sending commercial messages via the Internet is what e-mail advertising is all about.
• Opt-in e-mailing is the activity of asking for and gaining permission from customers to send them communications regarding specified themes. Instead of getting unsolicited messages, the consumer has decided to receive messages about issues that are of interest to them or has opted in.
• Electronic magazines: E-zines, or sponsored e-mail, is a developing kind of e-mail advertising that distributes free magazine-like publications. E-zines are often distributed locally rather than nationally and may be found in most major American cities.
• E-mail Advertising: Advertisers, understandably, want to reach businesses and consumers on their mobile devices just as much as they want to reach them when they are linked to the internet electronically.
• Cell phones and text messaging: The expanding number of mobile phone users suggests that advertisers have a significant chance to contact people using these devices. Consumers under the age of 35 are particularly appealing. It is estimated that 75% of youths aged 15 to 19 and 90% of persons in their early twenties use their cell phones for text messaging daily.
• Search Engine Advertising: Thousands of businesses have websites dedicated to promoting their goods and services and encouraging potential customers to make purchases. Competition is severe because many other companies are promoting their items.
• Keyword-Matching Advertising: Advertisers must bid on and acquire keywords from search engine providers like Google to become a sponsored link in Internet shoppers’ search results. (Shimp, 2007)
• Influence marketing: “When a brand hires social media influencers with a large following and established credibility to talk about or promote the brand in a social media post, it’s called influencer marketing” They are known as influencer marketing. Influencer content can be packaged with testimonial advertising. (Influencer Marketing, 2025)

Consumer Behavior

Each of us is a consumer. We consume and purchase products that we utilize regularly, and we do it depending on our requirements, tastes, and financial power. Consumables, durables, specialist items, and industrial goods are all examples.

This notion indicates that consumer behavior begins with the process of obtaining or purchasing items, rather than with the acquisition or purchase of products or services. (Khan 2006) In the literature on the effects of advertising on its efficacy, consumer purchasing behavior has traditionally been given a lot of weight and space. (Ajzen et al.,1980). The consumer’s liking or disliking of the marketed items has a significant impact on their purchasing decisions. (Smith et al., 2006).

The entire product creates an image in the mind of the consumer, who then goes through a decision-making process that leads to satisfaction or disappointment, which affects sales and the brand’s image. (Khan 2006)

Fig. 02 A simplified framework for studying consumer behavior. (Khan, 2006)

 

Factors that affect Consumer Buying Behavior

Table 02. Factors Affecting Consumer Buying Behavior (Furaiji et al.,2012)

Researcher	Major factors
Enis (1974)	Personal factors, social factors
Cross and Peterson (1987)	social factors, physical factors
Dibb and Etal (1991)	Personal factors, social factors, physical factors
Cohen (1991)	Marketing mix, physical factors
Zikmond and Amico (1993)	Social factors, environmental factors, individual factors
McCarthy and Perreault (1993)	Physical factors, social factors
Narayyana and Raol (1993)	Physical factors, social factors, and Cultural factors
Setlow (1996)	Personal factors, marketing mix, environmental factors
Stanton (1997)	Social factors, physical factors, and attitudinal factors
Lancaster and Reynold (1998)	Physical factors, social factors, Plural factors
Kotler and Armstrong (2007)	Physical factors, social factors, cultural factors, personal factors
Straughan and Roberts (1999)	Demographic factors, lifestyle

Figure 02 depicts the forces that shape crucial moments and the self-made framework that shapes them. A single point should be added to this model. Customers do not always go through the procedure in the same order. It is possible to repeat the second and third steps needed, and the evaluation stage is not necessarily followed by a purchase. It depends on the items, the buyer’s stage, and even the financial situation of the customer.

A consumer must expend little or no effort in conducting a second search or weighing different possibilities. (Belch & Belch 2009)

(Dhar et al., 2007) Also, brings up the concept of buying momentum, which occurs when a first purchase prompts a psychological desire to acquire a second, unrelated item.

3.4 A framework for influencing decision-making based on various elements and circumstances.

Figure 03: Framework of factors and moments that influence decision-making

Choice by Consumers in a Variety of Circumstances

The decision-making process, according to Solomon et al. (2006), is defined as the amount of work put into a choice each time it is needed. It has been discovered that thinking about a continuum that starts with habitual decision-making and ends with extended problem-solving is helpful. Many decisions are in the middle, and problem-solving options are restricted. (Figure 04).

Figure 04: Buying decision behavior on a spectrum (Solomon et al.,2006)

 

Consumer Behavior Facts & Figures of Bangladesh

Table:03: Consumer Behavior Facts & Figures of Bangladesh

S.No	Consumer Behavior Facts	Percentage (%)
1	Recommendation from people know	86%
2	Editorial content	72%
3	Brand websites	69%
4	Newspapers	85%
5	TV	91%
6	Consumers’ opinions posted online	65%
7	Magazines	61%
8	Brand sponsorships	68%
9	Radio	66%
10	E-mails	57%
11	Billboards/outdoor	64%
12	Ads before movies	61%
13	Search engine results ads	52%
14	Online video ads.	54%
15	Banner ads	49%

As can be seen from the table above, the majority of Bangladeshi consumers regard “Word of Mouth” as more dependable than other sources while shopping online.

FINDINGS AND DATA ANALYSIS

Basic statistical approaches are employed to analyze the data, such as percentages and frequencies of responses in support of and against the online advertisement. The conclusions will be carried away after data has been analyzed, organized, tabulated, and interpreted.

From table 04: Nearly 23 percent of total respondents propose giving priority to the appeal of quality, 18 percent to persuasiveness, and 15% to the element of entertainment and information, while approximately 17 percent of total respondents place third priority on the appeal of celebrity endorsement, 16 percent to price discounts, and 11 percent to prize schemes.

Key indicators	Percentage	Respondent
Appeal of quality,	23%	46
Persuasiveness	18%	36
Price discounts	15%	30
Celebrity endorsement	17%	34
Entertainment and information,	16%	32
Prize schemes	11%	22
Total	100%	200

Table:04 (Field Survey)

From table 05: Nearly 55 percent of all respondents believe that the prize scheme has had some impact on product sales, 23 percent believe it has had a significant impact, and 22 percent believe it has had a minor impact.

Key indicators	Percentage	Respondent
Prize schemes	55%	110
To some extent very much	23%	46
Rare impact	22%	44
Total	100%	200

Table: 05 (Field Survey)

Table 06 contains Approximately 42 percent of total respondents were urged to purchase advertised goods to some extent, 29 percent said it was uncommon, 9 percent said they purchased the product after seeing the advertisements a lot, and 20 percent said it was extremely rare.

Key indicators	Percentage	Respondent
Purchase advertised goods to a certain extent	42%	84
Rare impact	29%	58
Like it very much	09%	18
Really uncommon	20%	40
Total	100%	200

Table:06 (Field Survey)

According to Table:07, If the advertised products do not satisfy them, around 45 percent of total respondents change the channel.18 percent react and inform others of their dissatisfaction, 13 percent are irritated with manufacturing organizations, 13 percent switch off the TV, and only 11 percent said they do nothing.

Key indicators	Percentage	Respondent
Ad not satisfied	45%	94
Inform others of their dissatisfaction	18%	36
Annoyed the organizations	13%	24
Switch off the TV	13%	24
They do nothing	11%	22
Total	100%	200

Table:07 (Field Survey)

In table 08. Approximately 64 percent of total respondents believe that when they decide to purchase something, they prioritize quality; the price of the goods is worth 24%, while the celebrity who endorses the product is worth 12%.

Key indicators	Percentage	Respondent
Priority to quality	64%	128
Price of the product	24%	48
Celebrity endorsement	12%	24
Total	100%	200

Table 08. (Field Survey)

 

Pie Chart.01:

Pie Chart:01(Field Survey) (while watching advertisement )

Pie Chart: 01: It demonstrates what people do after watching a television commercial. 45 percent of all respondents feel they will change the channel if the product in the commercial is substandard. As many as 11percent say they don’t do anything at all. 12 percent of those polled prefer to turn off the television. Unsatisfied with the company are 13 percent and 19 percent, word of mouth respectively.

Bar diagram:1 (Field Survey)

Bar diagram:01 is about appeal; Quality impresses 35% of all respondents, followed by health (21%), celebrity (19%), and price savings (25%)

CONCLUSION & RECOMMENDATIONS

According to the study, online advertising greatly impacted client purchase decisions, as only about half of the respondents were impacted in their purchasing decisions. Purchase decisions made by customers are heavily influenced by Internet advertising. According to the findings of the survey, Advertising on the Internet has a big impact on what customers purchase.

Because commercials create a lasting imprint on the consumer’s mind, their quality should be appealing and beneficial. Furthermore, celebrities should be selective in leaving a lasting impact, particularly in the opinion of their admirers and status-conscious viewers about the advertisements they appear in.

Brand image, persuasiveness, and celebrity endorsement are all characteristics to look for according to the findings of the extensive study, which are the most essential contributing critical aspects in advertising that, if correctly conceived and managed, can shift customers’ purchasing habits to purchase decisions.

Businesses can better match their online advertising initiatives with Dhaka City consumers’ tastes by implementing these recommendations into practice. This will result in more successful marketing campaigns and more customer engagement.

Enhance Content Quality and Uniqueness

• Offer Exclusive Online Promotions
• Monitor and Adapt to Consumer Review
• Focus on Customer Engagement through Interactive Content
• Highlight Innovative and Diverse Product Offerings

REFERENCES

1. Ajzen, I., & Fishbein, M. (1980). Understanding attitudes and predicting social behavior. Toronto, Ontario: Prentice-Hall.
2. Khandare A., U. & Suryawanshi P, B.(2016) Studying the Impact of Internet Advertising on Consumer Buying Behavior We’Ken International Journal of Basic and Applied Sciences Vol. 1, Issue 1 / pp 28-33
3. Bakshi, G.,& Gupta S, K.(2013) Online Advertising and its Impact on Consumer Buying. International Journal of Research in Finance & Marketing Volume 3, Issue 1 pp 21-30
4. Belch, G., & Belch, M. (2009). Advertising and Promotion: An Integrated Marketing Communications Perspective, 8th ed. Homewood, IL: Irwin.
5. Deshwal, P.(2016).Online advertising and its impact on the consumer. International Journal of Applied Research Vol:2. Issue:2. pp-200-204.
6. Ducoffe, R., H. (1996). Advertising value and advertising on the web. Journal of Advertising Research, Vol,36, No-4 pp- 21-35.
7. Dhar, R., Huber, J., & Khan, U. (2007). The Shopping Momentum, Effect Journal of Marketing Research, Vol. 44, No. 3, pp. 370-378. https://doi.org/10.1509%2Fjmkr.44.3.370
8. Furaiji,F., Łatuszyńska,M., Wawrzyniak, A.(2012).An Empirical Study of the Factors Influencing Consumer Behaviour in the Electric Appliances Market Vol. 6, Issue 3, pp76-86
9. Gollwitzer, P.M., Heckhausen, H., & Ratajczak, H. (1990). From Weighing to Willing: Approaching a Change Decision through Pre-or Post-decisional Mentation, Organizational Behavior and Human Decision Process vol-45, no-4 pp-41-65. https://doi.org/10.1016/0749-5978(90)90004-S
10. Gupta,S.K.,&Bakshi,G.( 2013). “Online Advertising and Its Impact on Consumer Buying Behavior.” International Journal of Research in Finance & Marketing vol-31, issue-5 pp: 21-30.
11. Islam, N., Afrin, S., Noman, S. A., Hoque, S. F., Araf, M. S. I., Amin, A. M., & Sujala, F. S. (2021). Impact of social media marketing on buying behaviors of superstore customers in Bangladesh. PYC Nepal Journal of Management, 14(1), 57–78. Retrieved from https://www.researchgate.net/publication/356861602_Impact_of_Social_Media_Marketing_on_Buying_Behaviors_of_Superstore_Customers_in_Bangladesh
12. Khan, M.(2006). Consumer behavior and advertising management, New Age International (P) , Publishers, New Delhi
13. Kotler,P.,&Keller,K.L(2021).Marketing Management,16^th Global edition Pearson Education.USA.
14. Khandare, A. U.,& Suryawanshi, P. B. (2016).Studying the Impact of Internet Advertising on Consumer Buying Behavior, International Journal of Basic and Applied Sciences Vol. 1, Issue 1 pp-105-115
15. LuLu, M. N. N., Rahman, M. S., Ali, M., Obayda, A., Shohel, A., & Tani, T. (2023). Impact of social media advertising on buying decision of a young group of consumers in Bangladesh: A study Dhaka city. Studies of Applied Economics, 41(2). https://doi.org/10.25115/sae.v41i2.9105
16. Sultana, J. (2024). The influence of social media influencer marketing on consumer purchasing behavior: Its performance in raising brand awareness and increasing sales in Dhaka. [Bachelor’s thesis, Brac University]. Retrieved from http://hdl.handle.net/10361/23874
17. Smith, E.G., Meurs, L. V., and Neijens, P.C. (2006). “Effects of Advertising Likeability: A 10-Year Perspective”. Journal of Advertising Research, vol-46, issue-1 pp: 73-83.
18. Solomon, M., Bamossy, G., Askegaard, S. Hogg, M.K. (2006). Consumer Behaviour. A European perspective, 3rd ed. Prentice-Hall Financial Times.
19. Shumaila A.& Ayesha, A. (2013)Impact of Advertising on Consumers’ buying behavior through persuasiveness, Brand Image, and Celebrity endorsement Global Media Journal International Journal of Research in Finance & Marketing Vol. 6 (2):149, pp1-9
20. Online advertising. (2024, December 16). https://en.wikipedia.org/wiki/Online_advertising. Retrieved December 16, 2024, from https://en.wikipedia.org/wiki/Online_advertising
21. Influencer marketing. (2025). In https://en.wikipedia.org/wiki/Influencer_marketing. Retrieved January 1, 2025, from https://en.wikipedia.org/wiki/Influencer_marketing
22. https://www.sortlist.com/online-ad accessed on 11 October 2024