Literature Review on

Impact of Internet
Advertising on Business
and Consumer
Contents
Introduction...........................................................................................................................................3
Research Questions...............................................................................................................................4
Literature Review..................................................................................................................................4
Summary and conclusion.......................................................................................................................7
References.............................................................................................................................................8
Introduction
Advertising is a type of communication projected to influence an audience (viewers, readers
or listeners) to purchase or take some action upon products, information, or services etc.
(Zain-Ul-Abideen, 2015) Advertising is the foundation of communication tool between the
producer and the consumer. Advertising is a rift of promotion mix and is one of the 4ps in the
marketing mix which embrace product, price, place and promotion Advertising is a
promotion tactic which serves as a most important tool in creating product awareness in the
mind of the consumer to take purchasing decision. (B.A. CHUKWU1, 2019)
Internet is becoming a new mode to shop different products or services online. Although, it
is a longing state of affairs for everyone to touch the products that he/she wants to buy.
However, Internet is playing a wider role in assembly the shopping more easily as it is never
before. The internet makes shopping much easier, and nowadays shopping is not more than
away from a click. A most recent term is introduced that is known as “Online Shopping”.
Consumers can unswervingly shop product or services from the sellers without any
interaction of intermediate parties (Osama Harfoushi1, 2013).
Internet advertising is a set of tools for delivering promotional messages to people
worldwide, using the Internet as a global marketing platform. It is helpful for attracting traffic
and brand exposure, but first and foremost, online advertising is designed to persuade the targeted
customer to engage in a specific action - like, making a purchase. There are many different types of
online advertising - or internet advertising/web advertising as it is otherwise known - and it can be
difficult to know where to start. The most important types are Social Media Advertising, Content
Marketing, Email Marketing, SEM (Search Engine Advertising) - including PPC, Display Advertising
- including banner advertising & retargeting and Mobile Advertising (Notley, 2018).
Internet is becoming a most suitable platform for the shopping purpose. Internet is becoming
a novel platform for attracting consumer’s attention by the online advertisement. It has been
observed that companies are spending huge amount of money for advertisement on
interactive media. As companies are spending huge amount of money, it is significant to
measure whether this huge amount of money generates desirable outcomes or not.
Moreover, there might be huge potential in online advertisement as the stats indicates that
Internet users increase around the globe (Osama Harfoushi1, 2013)
Internet advertising strategies have been changed hugely as a result of development of social
media. Internet/Online advertisers have used social media (i.e. Facebook) to connect
customers with companies, developing new opportunities for customers know about their
brands and products (Tran, 2017). To draw customers’ attention, online marketers have
employed social networking sites to modify ads more appealing to customers. That is
reasonable to understand why more companies are employing social media as marketing tools
and why social networking sites like Facebook are preferred to non-virtual media in creating
ads (Waters, 2011).

Research Questions
The research question is going to channel this study are
How does internet advertisement impact the business?
How does internet advertisement create awareness in consumers?
Do internet advertisements build perceptions in the mind of consumers?

Literature Review
The positive impacts of digital marketing on business are far outweighing any negatives that
exist. The impact of digital marketing on traditional marketing has been profound, and
rightfully so. The world of digital marketing opens doors that offer a potential client the
opportunity to feel as if he or she is connected with a business, as if the client is a part of it,
simply because one sees content from that business online on a regular basis. These types of
things entice potential buyers to give products and service a try that they once wouldn’t have
even known about. The benefits of digital marketing for the business world are vast and
easily outweigh any potential negatives (Barkman, 2018).
The benefits are easy to see, but negative impacts are of digital marketing on business are
also important for consideration. If an advertiser was unaware of the movement and ran a
banner ad on Facebook with some humor about something that could even slightly, in some
far-off universe, be considered sexist, it could be the death of that company. While that might
sound severe, consider the line, “Once it’s been on the internet, it’s out there forever.” Once
an ad has run that can be affiliated with a company and is interpreted in an offensive manner,
it’s out there, never to be retracted. It’s often death by digital suicide for the company behind
the message (Barkman, 2018).
Wang and Zhang et al. momentarily define social commerce as “a form of commerce that is
mediated by social media and is converging both online and offline environments.” Social
commerce also involves using social media in the support of buying and selling products
and/or services, on online and offline channels. “It represents latent merchandizing
opportunities that combine shopping and social networking activities together through social
media.” (Wang, 2012).
In spite of all, internet advertisement have been changing the interactions nature, between
customers and companies, producing radically new ways of interaction and revolutionizing
marketing. As such, the addition of digital marketing into business strategies has become
necessary to promote even more engagement and interaction. (Hansen, 2011)
Dunn et al. (1978) viewed advertising from its functional perspectives, hence they define it as
a paid, non-personal communication through various media by business firms, non-profit
organization, and individuals who are in some way identified in the advertising message and
who hope to inform or persuade members of a particular audience (Dunn, 1978). Morden et
al. (1991) is of the opinion that advertising is used to establish a basic awareness of the
product or service in the mind of the potential customer and to build up knowledge about it
(A.R., 1991).
Ayanwale et al. and Adelaar et al. viewed that advertiser’s primary mission is to reach
potential customers and influence their awareness, attitudes and buying behavior. Ayanwale
et al conducted research on advertisement of Bournvita, he found as advertising has a major
influence on consumers’ likeness for Bournvita food drink. Similar researches have already
been conducted for the quality of Bournvita (Ayanwale, 2005).
It is possible to deduce that entertainment, informativeness and irritation are the three more
speculated aspects on consumers’ attitude towards advertisement. There are existing factors
that can increase or decrease irritation levels towards advertisement. An irritating ad is often
one that is "provoking, causing displeasure and momentary impatience" (Aaker, 1995)
According to Li, Edwards, Lee, (2002) causes of advertisement irritation can be broadly
classified into three categories: ad content, execution, and placement (Li, 2002).
Adelaar et al. conducted study on online compact discs (CDs) shopping behavior of consumer
through emotional advertising. Advertising is a non-personal and paid form where ideas,
concepts, products or services, and information, are promoted through media (visual, verbal,
and text) by an identified sponsor to persuade or influence behavior (Adelaar, 2003)
Kumar et al. conducted a study on the impact of advertising on consumer buying behaviour
with special reference to Nestle Limited in India. He found that advertising and sales
promotion together with the image of the company influence the consumer buying decision.
He also found that the quality and price of product also influence consumer purchase of a
good (Kumar, 2011)
Taylor and Weiserbs et al. conducted a study on the relationship between advertising and
expenditure and aggregate consumption in America. They found that there is a simultaneous
relationship between advertising and consumption but not in a unidirectional. They concluded
that advertising and consumption seem to work on each other (Taylor, 1972).
Sharma and Sharma et al. conducted a study on the impact of advertising on consumer
behaviour in India. They studied 134 companies using fixed effect model of panel data
analysis. They found that besides advertising, factors like company’s brand, quality of the
product and company’s reputation affect sales of a company (Sharma, 2009).
Ghulan, Javana, Burham and Ahmed et al. conducted a study on the impact of advertising on
consumer buying behaviour in Pakistan. They examined the relationship between
environmental response and consumer buying behaviour. They used 200 people in twin cities
of Pakistan as their sample. They found that moderate relationship exists between the
independent variables and the dependent variable. The result showed that consumers buy
those brands from which they are emotionally attached (Ghulan, 2012).
Nawazish and Ahmed et al. conducted a study on the impact of advertising on consumer
buying behaviour in Pakistan. They examined how emotional responses are generated, after
watching effective advertisement they persuaded consumers purchasing behaviour. They used
300 sample subjects for this study. They found that the environmental response and sensory
stimulated activities represented in the advertisement has influence and can even change the
buying behaviour of consumers. They found that emotional and environmental responses
have significant impact on consumer buying behaviors (Nawazish, 2005)
Role of advertisement is to carry message to the far distances. It is also use to target the
scatter mass audience. The role of advertising on sales volume is very important. It is proved
to be very essential tool in enhancing the sales of brand. Advertisement is directly linked with
the sales of the products (Abiodun, 2011).
Through advertisements customer behavior shaped and they motivate to buy such products.
Researchers found that repetition in the advertisement hit the mind of the customers which
also help them to remember that product and purchase repeatedly (Pope, 2009).
Wright et al. further states that one of the specific benefits that advertising contributes to the
business is the replacement of more costly method of communication between the producers
and consumers or users. This in other words implies that good advertising techniques:
increases the volume of sales of products, influences target groups as well as the products that
have encountered public problem, builds up the interest in a product category and assist in
repositioning and most importantly expose features, benefits and advantages of the product
Internet advertisements drive business sales growth because they create interest among
consumers. Once consumers are aware of a company's products and services, they are
more likely to go out and buy it, especially if the advertisement entices them to try it out
and experience it for themselves. Through electronic commerce and social media,
businesses now have greatly expanded reach and can literally transact with consumers in
any part of the globe (Haris, 2020)
Business advertising strategies and efforts help to establish brand identity among
consumers in the market. Businesses that engage in impact advertising are more likely to
firmly establish themselves in the market because they create a lasting psychological
impact on the audience, giving them valuable entertainment or information and creating a
positive association with their product. In addition, businesses can establish a strong
market position where, on the basis of their advertisements, they proceed to meet customer
expectations through quality products and services that offer value for money (Haris,
2020).

Summary and conclusion

The Internet advertisement is the most powerful tool for businesses. Marketing managers
who fail to utilize the importance of the Internet advertisement in their business marketing
strategy will be at disadvantage because the Internet advertisement is changing the brand,
pricing, distribution and promotion strategy.
While there are always negatives with any marketing strategy, the impact of digital
marketing on businesses has, overall, been a positive one. With more access to a broader
audience, digital marketing illuminates businesses in ways that were once impossible, saving
businesses time, money, and bringing in new customers like never before
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