PART II: RESEARCH CONTENT AND RESULTS CHAPTER 1: SOME THEORETICAL AND PRACTICAL ISSUES RELATED TO
APPLYING THE AIDA MODEL IN EVALUATING ONLINE ADVERTISING ACTIVITIES
1.1. Some theoretical issues related to the AIDA model in performance evaluation
online advertising
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1.1.1. Online advertising
1.1.1.1. Concept of online advertising
According to Wikipedia, online advertising (online adsvertisement) or internet advertising is a form of marketing and advertising that uses the Internet to convey advertising messages to consumers.
According to Tidalmarketing, online advertising is the use of the internet as a medium to deliver marketing messages to a defined audience for a specific purpose. Online advertising is useful for attracting website traffic and brand exposure, but primarily, online advertising is also designed to persuade the target audience to take a specific action - such as making a purchase [3].
Online advertising includes activities such as email marketing, search engine marketing (SEM), social media marketing, etc.
1.1.1.2. Online advertising media
Some popular online advertising media today include:
Display Advertising
In display advertising campaigns, ads are displayed as banners or text in ad-ready areas on websites and apps linked to the Google Display Network. Businesses pay either per impression or per click, depending on how the advertiser sets up the campaign.
The original form of online advertising was visual advertisements that appeared on third-party websites (usually content-related websites).
or service in some way). Display advertising can include basic forms such as: Static images, text, floating banners, backgrounds, pop-ups, videos, etc.
Advantage:
- Advertise products to a wider market.
- Expand potential customers and build brand on website system by field.
Disadvantages:
Large budget, depends on website and time of advertising, more suitable for companies that want to promote their brand.
Social Media Advertising
Up to now, social networks have become popular in the social life of most countries in the world, including Vietnam. As of June 2020, Vietnam has more than 69 million Facebook accounts, accounting for about 2/3 of Vietnam's population (according to gso.gov.vn) [4]. It is clear that social networks are a means for businesses to easily reach their target customers.
Similar to Display Ads, social media advertising can be presented in any form from banners, simple images to auto-playing videos. Compared to traditional advertising, this method brings higher interactivity, attracting more attention from customers. Social media advertising helps marketers target their audience more precisely and clearly through customizations on demographic characteristics, location, behavior, etc. when setting up ads on these platforms.
There are many social networks that have been born and are operating in the world, but in Vietnam, Facebook (including Instagram), Youtube and Zalo are commonly used. Among them, advertising via Facebook is the most popular because it allows marketers to use tools to customize and exploit.
Marketing activities on Facebook take place in 2 forms:
- Free: includes posting articles on fanpages, messaging, interacting with individuals to help maintain connections with customers, increase brand presence or provide information about the business as well as other useful information.
- Paid: Businesses pay Facebook to post on fanpage, or information about their business, products and services or advertising content to reach more individuals. Or businesses can hire influential individuals (famous people) to post information for the purpose of promoting that business.
In addition, a social network that is also commonly used for advertising programs today is Youtube. The growth rate of the number of Youtube users is extremely strong. According to 2020 statistics conducted by Graphic Rhythm and Elite Content Marketer, Youtube.com is the second most visited website in the world. Thanks to the characteristics of a video social network, businesses can convey their messages to target customers in a more attractive and impressive way.
Similar to other social networks, marketing activities on YouTube include 2 forms:
- Free: Exists as a private channel of the business, vlogs review business activities, products, services.
- Paid: Businesses pay YouTube to have their ads appear in videos uploaded by other YouTube users.
Some other social networks are also bringing great potential for businesses to carry out advertising programs such as Twitter, Tiktok, ... in which TikTok is a channel with strong growth in the Vietnamese market.
Advantage:
- High target audience reach, good interactivity.
- The message is presented in an attractive and impressive manner.
- Fanpage acts as a second website of the business, where social network users can search and refer to information about the business and products, helping businesses communicate directly with users.
Disadvantages:
More suited to the consumer market than the business market…
Search Engine Advertising is divided into 2 types: PPC advertising - Pay Per Click (mainly Google Adwords) and SEO - Search Engine Optimization.
PPC Advertising – Pay Per Click:
Google Adwords or Google Ads is a service provided by Google for businesses that want to advertise their products or services for a fee. Depending on the cost paid, the business's advertisement will appear in priority positions on Google's search results page. In advertising campaigns on the search network, the advertisement will be displayed as a search result corresponding to a certain keyword. This form is similar to SEO, with only two differences: Advertisers must pay Google for each impression/click instead of free like SEO; The advertisement results will be displayed in a separate area compared to Google's natural search position.
Advantage:
- The process of setting up advertising campaigns is quick, less time-consuming and labor-intensive than SEO.
- Ability to reach the right audience at the right time when they need it; good audience screening ability, businesses can completely reach the right target audience.
- Businesses can control the scale of advertising campaigns, thereby controlling the costs they spend.
Disadvantages:
- Expensive form of advertising.
- The advertising setup process is relatively complicated, requiring in-depth knowledge of marketing and consumer behavior on the website to use effectively.
SEO Advertising - Search Engine Optimization:
SEO (short for Search Engine Optimization), meaning search engine optimization, is the top choice of businesses and stores in the process of selecting online marketing channels to implement. The main job of SEO is to optimize the business website, so that it is most friendly to search engines, mainly Google in Vietnam, so that this website appears at the top of the search list corresponding to a certain keyword.
Advantage:
Helps save costs, brings high efficiency in the long term, thanks to the SEO process, the website of the business, store will also become more user-friendly.
Disadvantages:
It takes a lot of time and effort to do, and costs more if you hire a third party to do it.
Advertising via business website
On the Internet, a website is considered the official presence of a business, like an electronic business card. Businesses will bring more peace of mind to customers if they own a beautiful, convenient website, detailed and clear information, fast loading speed and provide readers with full content needed to make a purchase.
There are many different types of websites such as: sales websites, e-commerce websites, business websites... Businesses need to build themselves a really attractive and unique website because that is the place to bring their products, services, and brands to everyone or even it is also the place to receive the most genuine feedback from customers. Help businesses know what customers need and want for their products and services, from there find the best solution.
Advantage:
- Contribute to building image, brand and reputation for the business
- The cost of building and maintaining is not as high as other search engine advertising methods.
Disadvantages:
It takes time to build a user-friendly and engaging website.
display on search engines
Email Marketing
Nowadays, E-mail is gradually replacing the way of sending letters by post and businesses can send marketing information to a series of e-mail addresses quickly and at a low cost. This is one of the other forms of advertising on the Internet that businesses can apply to create proactive information reception for customers, thereby creating a comfortable and sympathetic mentality with the information that the business brings to customers.
This is the approach, promoting the products/services of the business through email to bring in customers. Customers' email addresses can be collected through invitations to register for gifts, call-to-action buttons to follow the website, information registration forms... when they visit the website. This is an effective way to inform people about products or related information about services.
Through the integration with customer management systems, email marketing advertising is done automatically instead of manually as before. The main job of the marketer is to compose appropriate content, screen the audience and schedule sending, then analyze the response and effectiveness.
Advantage:
- This is a low cost advertising method.
- Thanks to the support of system software, implementing email marketing becomes easier.
Disadvantages:
Only suitable for some markets and sometimes not very effective.
1.1.2. Basic consumer response models
To evaluate the effectiveness of communication and advertising, researchers and advertisers are still widely using the Hierarchy of Effects Model (Barry & Howard, 1990). The Hierarchy of Effects is a marketing theory that assumes that buyers go through successive stages of awareness
(Cognitive), (Affective) and (Conative) [5]. The marketing and advertising literature concludes that the hierarchy of effects is not a single model, but that there are many hierarchies of effects models that have been developed by researchers over time (Barry, 1987).
The Marketing Management textbook by Dr. Nguyen Thi Minh Hoa and co-authors (2015) has provided some basic models of consumer response to the business communication process as follows:
Table 1: Basic consumer response models
Stage
paragraph
AIDA Model
E. St. Elmo Lewis (1898)
Hierarchical model
Lavidge & Steiner (1961)
New Product Adoption Model
Everett M. Rogers (1962)
William J. McGuire (1969) Communication Model
Stage
recognition paragraph
Knowledge
Attention
Knowledge
Attention Awareness Awareness Receiving
Influence/attitudinal stage
Stage
Care Desire
Likeability Interest Desire
Care about
Evaluate
Try it out
Attitude Intention
behavioral paragraph
Buy Action
Accept
Behavior
Source: Marketing Management Textbook, Dr. Nguyen Thi Minh Hoa (2015)
In there:
AIDA model: is the earliest model, proposed and developed by E. St. Elmo Lewis, the author of the model, theorized that salespeople who want to be successful must lead customers through the process of paying attention to the existence of the product; caring about the features and benefits of the product; wanting to benefit from the product to have the action of buying/using the product. This model is one of the most mentioned models in advertising and personal selling documents.
Hierarchical model (hierarchy of effects) : proposed by Lavidge & Steiner (1961), who were the first to connect the psychological aspects of human cognition, affect and involvement in the hierarchy of effects. Lavidge and Steiner argued that customers will not go to the action step without considering other elements of the purchase process. They may go through a series of seven steps to reach that purchase action from Unawareness - Awareness - Knowledge - Sympathy - Liking - Desire and Purchase but “Unawareness” is not a necessary step of the chain. These steps have different levels of importance and consumers can perform multiple steps at the same time. Therefore, the model consists of three main steps: Cognition - Awareness/Learning, Affect - Feeling, interest or desire and Conation - Meaning/Behavior [5].
New product acceptance model : proposed by Everett M. Rogers (1962), applied the hierarchical model to the new product acceptance process including: Awareness - Interest - Evaluation - Trial - Adoption.
Media Model (Information Processing): proposed by William J. McGuire (1969), who was the first to suggest that probability could be linked to the stages of a hierarchical model to show the impact of advertising on final behavior.
1.1.3. Evaluate the effectiveness of online advertising through performance indicators
Some common metrics used to measure the effectiveness of online advertising campaigns today include [6]:
Advertising effectiveness index: