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Prepared by: Indrajoy Bhattacharya
INTRODUCTION
The Indian media and entertainment (M&E) industry is one of the fastest growing industries in the
country. Its various segments—film; television, advertising, print and digital among others—have
witnessed tremendous growth in the last few years.
According to a 2009 report jointly published by the Federation of Indian Chambers of Commerce and
Industry (FICCI) and KPMG, the media and entertainment industry in India is likely to grow at a
compound annual growth rate (CAGR) of 12.5 per cent per annum over the period between 2009‐13 and
touch US$ 20.09 billion by 2013.
With a majority of the population below the age of 35, and increasing disposable income in Indian
households, the average spend on media and entertainment is likely to grow in India, according to the
2009 edition of PricewaterhouseCoopers’ Indian Entertainment and Media (E&M) Outlook, covering the
forecast period of 2009–2013. Considering the above facts, it becomes imperative for the industry to
scrutinize their marketing investments and develop an approach through which they can quantify and
substantiate the return on their marketing expenditure. Looking at their online exposure, Social media is
a relatively new phenomenon, but Twitter, Digg, Facebook and other social media websites have
become an increasingly important source of website traffic. This also creates a massive demand for data
related to social media. Where are users coming from? What topics excite them?
These are questions that, when answered, can be the difference between a successful website and a
failed social media campaign. But social media analytics is young, and not many people know where to
start. Most of the web analytical tools provide clean data about the number of visits to the website,
traffic rates but there is still a lack of a framework which can use that data and effectively measure the
return on the spending done on social media campaigns.
Problem Area
• Indian advertising spends as a percentage of gross domestic product (GDP) – at 0.34 percent – is
abysmally low, as opposed to other developed and developing countries. Advertising revenues
are vital for the growth of this industry. While today the low ad spends may seem like a
challenge before the E&M industry, it also throws open immense potential for growth. This
potential can be estimated by the fact that even if India was to reach the global average, the
advertising revenues would at least double the current advertising revenues, estimated at about
INR 132 billion, for 2005.
• Traditionally Indian Media companies have been focusing more on the conventional
advertisement channels like Television, Print media and radio. But with the advent of internet,
the forms of communication have changed drastically. People are more involved in the web
than other channels. It becomes imperative to get to this segment as soon as possible before
the competitor does so.
• Foreign Investments in form of FDI will bring liquidity to the market and consolidation of the
industry will take place. The traditional organizational working of Indian companies will be
tested in those times.
Why Focus on Online Advertisement?
An estimated 28 million Indians are currently hooked on to the internet. And this rising number is
leading to the growth of internet advertising, which today stands at approximately INR 1 billion. The
internet is being used for a variety of reasons, besides work, such as chatting, leisure, doing
transactions, writing blogs etc. This offers a huge opportunity to marketers to sell their products. And
with broadband becoming increasingly popular, this segment is expected to grow by leaps and bounds.
DISCLAIMER
The research is conducted by keeping a hypothetical business problem in mind and going on those lines
to solve the issues involved. The results of the research might or might not be helpful to a real life
scenario considering various other macro factors involved in the decisions. The research work is an
academic work and should be used with caution before being applied to any industry.
Catching Eyeballs Group1
Table of Contents
Executive Summary....................................................................................................................................... 3
Business Problem .......................................................................................................................................... 4
Context ...................................................................................................................................................... 4
Marketing problem ................................................................................................................................... 4
Statement of Research Purpose ................................................................................................................... 4
Research Question .................................................................................................................................... 4
Scope ......................................................................................................................................................... 4
Significance ............................................................................................................................................... 5
Limitations ................................................................................................................................................ 5
Target population ......................................................................................................................................... 5
Methodology................................................................................................................................................. 5
Research Findings ......................................................................................................................................... 7
Recommendations ...................................................................................................................................... 14
Annexure ..................................................................................................................................................... 15
Exhibit 1 .................................................................................................................................................. 15
Exhibit 2 .................................................................................................................................................. 17
Exhibit 3 .................................................................................................................................................. 19
Exhibit 4 .................................................................................................................................................. 21
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Executive Summary
Today’s internet user has a lot to choose from the varied range of options available in the exponentially
growing internet space. Before one sets out to design a website it is imperative to understand the
behavior and preferences of the users and how do they evaluate the plethora of options available.
This research study is conducted to focus on the factors that play an important role in bringing users to
a review website. The study targets young, educated, affluent and tech savvy people of Mumbai and
presents an analysis of what elements should an open discussion forum website have to attract this
segment to the website.
Exploratory research has been conducted to gauge and understand the various factors that could be
influential in the decision process of the target segment while choosing which websites to visit.
Instruments for descriptive study have been based on the findings of exploratory study and analysis has
been carried out on the data collected using the same. The target population has been studied for their
internet usage patterns, based on which they have been further segmented. The study provides insights
into which factors are the most crucial with respect to each of these segments and the extent of their
impact. Based on the above findings, recommendations for marketing strategy have been made as to
what kind of marketing and website design would work the best.
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Business Problem
Context
The client is looking to establish a new business venture. The venture is in the online space and would
be a site that is open for anyone and everyone who wishes to voice their opinion, post their reviews and
discuss or chat with their friends. The client believes that he will earn his revenue through
advertisements that he would attract for the target group that his website is attracting.
Marketing problem
Once the website is up, the client needs his customers. The customers should find the website engaging
and spend more time on it. Traditional forms of advertising will not work for such forums. The website
should gradually spread through word of mouth. All these are multiple challenges the client faces.
Research Question
The research question that we can derive from our client’s problems is – what would take an educated,
young, affluent, hip and tech savvy ‘Mumbaikar’ to visit a website for the first time.
Scope
The scope of the research is to identify user preferences on the factors identified on the focus group
interviews and also based on our judgment based on experience and past cases. The factors identified
are
The entire research is based on the preferences of users on the above factors. Any other factors are
beyond the scope of the research. Also the classification variables are
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Significance
This research is going to help the client understand his consumer and built the website based on the
preferences identified from the target audience. It will help the client attract more eyeballs on his
website which will in turn help him attract ads that are suitable to his target audience thereby earning
more revenue.
Limitations
The research is based mostly on the factors available from the focus group study conducted. Hence
there is a possibility that a few factors that are outside the scope of study might have a significant
impact on the user preferences. Also, the classification variables are limited. There could be more ways
in which the target audience could be segmented.
Target population
The client’s brief was clear on the fact that the target population of this project is urbane, tech savvy,
young ‘Mumbaikars’ who would be interacting with the review website. For the research for this
project, we conducted an exploratory research focus group study where we selected 8 individuals
between 20-35 years of age and discussed issues such as their website viewing trends, their interests,
preferences, their surfing habits etc. All the participants of the exploratory focus group study were tech
savvy who have a habit of surfing for more than 5-6 hours.
After that a questionnaire was prepared on the basis of the data collected. This questionnaire was sent
to the population with the following characteristics
Location: Mumbai
Though respondents of the survey were chosen very carefully keeping in mind the criteria given but to
be on the safer side, an extra question on measuring their internet surfing hours per day was put in the
questionnaire to detect the presence of any unwanted outlier present in the data
Methodology
The methodology adopted in collecting the data is as follows:
1. To investigate into what all factors are important in determining the attractiveness of a website,
we conducted an exploratory research focus group study where we selected 8 individuals
between 20-35 years of age who were tech savvy who have a habit of surfing for more than 5-6
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hours. They were made to sit around a circular table with a moderator and 3 observers were
observing and noting down the key points of the discussion. The discussion started with
moderator introducing himself and asking all the members to introduce themselves as well as
briefly give an overview of their pattern of internet usage. After the introduction the discussion
started on what all websites do the participants visit quite often and why? All the participants
had their opinions on different websites they log on to and the reasons as to why they choose a
particular website. Various factors such as design, user friendliness, colours etc came up. After
some time the discussion progressed on to social networking websites, participants’ usage and
interest levels and their likings and preferences for a particular social networking website. Then
the participants went on to discussing what they like on a particular social networking website
and what all changes do they want that could make them visit that again and again. In between
some discussion happened as to how do they visit a new website, how do they get to know
about it and what features attract them to it. The discussion went on for about 30-35 minutes
with constant guidance and direction given by the moderator. The observer noted all the points
and the discussion records were kept for future purpose. All the participants were thanked for
their time and effort they put in to make this focus group discussion successful.
2. Through the discussion records, we found out many relevant factors which could affect the
target group to visit a new website. We clubbed them into three sub categories of – design,
technical details and individual preference
Design
Technical Details
Individual Preference
Some of the factors which we found relevant, we prepared a questionnaire consisting 14 questions.
Most of the questions were stated as statements which the respondents were supposed to respond on a
5- scale point ranging from strongly disagree to strongly agree. It was kept in consideration while
preparing questions that there were no double barrelled questions, reverse ordering was done in most
of the cases, and no leading questions were put. Most of the questions that we prepared were on ratio
scale except one where we asked the respondents to ask their age. The questionnaire once prepared
was given for pilot testing to see whether there were any problems with the questionnaire. We
encountered a couple of problems with the test run and corrected those in the second and final draft of
the questionnaire. Finally we launched the questionnaire and collected 102 responses which have been
analyzed in the report
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Research Findings
The various factors that came up after focus group interview and which were included in the
questionnaire were
The segmentation of the target group should be done on the basis of the perception of the
people, whether they are eager to experiment with new websites (ADOPTERS) or are reluctant
(FOLLOWERS). We ran ANOVA on the above factors which gave us the following result
ANOVA
I click on links of all those Between Groups 174.165 3 58.055 .614 .607
websites, the advertisements Within Groups 9260.041 98 94.490
of which are attractive to my
eyes irrespective of its Total 9434.206 101
content.
I normally look for site map to Between Groups 318.527 3 106.176 1.150 .333
navigate through a website. Within Groups 9049.316 98 92.340
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As the significance values are higher than 0.05 for all factors, the groups are not different. This
showed that we cannot do segmentation purely on the basis of whether people perceive themselves
as adopters or followers.
The next trial was on the basis of time spent on the internet. We ran ANOVA to test it and we
got the following result
ANOVA
I click on links of all those Between Groups 228.483 3 76.161 .811 .491
websites, the advertisements Within Groups 9205.723 98 93.936
of which are attractive to my
eyes irrespective of its Total 9434.206 101
content.
I normally look for site map to Between Groups 150.983 3 50.328 .535 .659
navigate through a website. Within Groups 9216.860 98 94.050
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Again the significance value of all factors were greater than 0.05, hence the groups were not
different. As a result, we cannot do the differentiation based on the time spent on the internet
alone.
We then ran a crosstab between time spent on the internet and perception of the viewer on his internet
habits. The result is as follows
Adopters and followers * On an average, for how long do you browse internet for non-work related purposes per day?
Crosstabulation
On an average, for how long do you browse internet for
non-work related purposes per day?
30 minutes -
Less than 30 less than one 1 hour - 2 More than 3
minutes hour hours hours Total
adopters and adopters Count 5 15 16 9 45
followers
% within adopters and 11.1% 33.3% 35.6% 20.0% 100.0%
followers
% within On an 38.5% 46.9% 39.0% 56.3% 44.1%
average, for how long
do you browse internet
for non-work related
purposes per day?
followers Count 8 17 25 7 57
% within adopters and 14.0% 29.8% 43.9% 12.3% 100.0%
followers
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Now the research aims to find the most critical factors influencing these 4 segments. We ran factor
analysis to find the most important factor or combination of factors which can influence the segment to
visit the website. We selected cases from the database and ran factor analysis on each of these
segments. The results are as follows
For EARLY ADOPTERS- The factor analysis (Exhibit 1) gave us the following insights
The anonymity of a user in a website, availability of a good web site map/search and
customized website forms the most important criteria for this segment. Let’s call it
WEBSITE DESIGN.
Friend’s recommendation is the next most important criteria for this segment to visit
any website
We also analyzed the channels which could impact this segment the most. The result were as
follows
Statistics
Reading
Social Product/brand Reading
networking sites Emails reviews Online shopping newspapers Online Games
N Valid 19 19 17 16 19 15
Missing 1 1 3 4 1 5
Mean 28.00 37.95 14.12 8.13 13.74 3.00
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For targeting them, the best possible way is to target them via emails and social networking
sites.
For LATE ADOPTERS- The factor analysis (Exhibit 2) gave us the following insights
Friend’s recommendation and expert opinion on any website are the key factors in
making this segment visit any website. Let’s call it RECCOMENDATION.
The next important criteria include having a common/separate login id for different
websites and customization.
We also analyzed the channels which could impact this segment the most. The result were as
follows
Statistics
Reading
Social Product/brand Reading
networking sites Emails reviews Online shopping newspapers Online Games
N Valid 25 25 25 25 25 24
Missing 0 0 0 0 0 1
Mean 35.32 39.76 15.08 6.76 21.84 6.13
To target them, the best possible way is to target them via emails, social networking sites, and
newspaper channels like Indiatimes, The Economist etc.
For EARLY FOLLOWERS- The factor analysis (Exhibit 3)gave us the following insights
Less complex and customized website are the sole criteria in pulling this segment to
follow a new website. Let’s call it SIMPLICITY OF WEBSITE.
We also analyzed the channels which could impact this segment the most. The result were as
follows
Statistics
Reading
Social Product/brand Reading
networking sites Emails reviews Online shopping newspapers Online Games
N Valid 25 25 23 23 24 23
Missing 0 0 2 2 1 2
Mean 32.00 46.20 12.96 8.39 15.92 4.09
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To target them, the best possible channel is emails. The website owner should not spend on any
other channel as they will follow the adopters by themselves.
For LATE FOLLOWERS- The factor analysis (Exhibit 4) gave us the following insights
They follow a similar pattern as early followers except that they give high importance to
presence of website map/ search.
We also analyzed the channels which could impact this segment the most. The result were as
follows
Statistics
Reading
Social Product/brand Reading
networking sites Emails reviews Online shopping newspapers Online Games
N Valid 32 32 30 29 31 28
Missing 0 0 2 3 1 4
Mean 29.22 36.72 9.50 4.72 16.87 5.36
They are the last segment to be targeted. As of now, the focus should be on early and late
adopters and early followers only.
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100% 100%
90% 90%
80% 80%
REST REST
70% 70%
60%
60%
COMMON 50% FRIEND'S
50%
LOGIN/CUST 40% RECOMME
40%
OMIZATION 30% NDATION
30%
RECOMMEN 20% WEBISTE
20% DATIONS DESIGN
10%
10% 0%
0% EARLY
LATE ADOPTERS ADOPTERS
100%
100%
90%
90%
80%
80% REST
70%
70%
60%
60%
50% WEB
50% REST 40% MAP/SEAR
40% SIMPLICITY 30% CH
30% 20% SIMPLICITY
20% 10%
10% 0%
0% LATE
FOLLOWERS
EARLY FOLLOWERS
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Recommendations
On the basis of the above analysis, our client can follow a strategy to target the segment as follows
Target the early adopters with full strength. Most of the marketing spends should aim at
positioning the website for this segment.
Word of Mouth is the biggest influencer for this segment. If the client has any connections with
a popular blogger or a celebrity, that channel can be used effectively for disseminating
knowledge about this website.
Once a visitor visits our website more than once, that means he/she is interested in becoming a
part of it. Ask him/her to be a guest user for the first time and then onwards ask them to
register on the website. And while registering, ask them to forward a message to their friends
recommending the website.
Website Design (logo, colour, search function etc.) becomes a crucial factor in presenting a
good image in front of first time visitors. The ads on other websites should capture an attractive
image of the website
Once the website owner meets a specific number of first time loggers, then the focus should
gradually shift to early followers.
As a percentage of total population, early followers form a major chunk. Hence a separate
research would be needed to study their behavior patterns in depth.
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Annexure
Exhibit 1
Factor analysis for segment 1- early adopters
Co
Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
mp
on Cumulative
ent Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance %
1 2.383 29.784 29.784 2.383 29.784 29.784 1.967 24.591 24.591
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a
Rotated Component Matrix
Component
1 2 3 4
I maintain my personal .097 .786 -.007 .207
desktop screen on my
laptop/PC clutter free.
I click on links of all those .053 -.750 -.049 .217
websites, the advertisements
of which are attractive to my
eyes irrespective of its
content.
I normally look for site map to .730 -.493 .087 .308
navigate through a website.
I usually value expert’s -.026 .028 .955 .026
opinions on any website.
I am insistent on having a 2.948E-5 -.032 .043 .958
separate login id and
password for different
websites I use rather than
one common log in for all.
I do not want to reveal my .816 .148 -.252 .089
identity when I am involved in
open discussion forums e.g.,
Pagalguy.com,
mouthshut.com
I will visit a particular website -.124 .654 -.551 -.081
if my friends recommend it to
me.
I do not have time to .860 -.002 .221 -.210
customize my webpage.
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 5 iterations.
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Exhibit 2
Factor analysis for segment 1- late adopters
Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
Comp % of Cumulative % of Cumulative % of Cumulative
onent Total Variance % Total Variance % Total Variance %
1 1.886 23.577 23.577 1.886 23.577 23.577 1.802 22.523 22.523
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a
Rotated Component Matrix
Component
1 2 3 4
I maintain my personal .758 .178 .010 .150
desktop screen on my
laptop/PC clutter free.
I click on links of all those .305 -.312 .645 -.063
websites, the advertisements
of which are attractive to my
eyes irrespective of its
content.
I normally look for site map to -.071 .320 .864 -.029
navigate through a website.
I usually value expert’s .794 -.030 .040 .070
opinions on any website.
I am insistent on having a .108 .885 .147 .005
separate login id and
password for different
websites I use rather than
one common log in for all.
I do not want to reveal my .154 .012 -.037 .942
identity when I am involved in
open discussion forums e.g.,
Pagalguy.com,
mouthshut.com
I will visit a particular website .585 -.607 .137 -.234
if my friends recommend it to
me.
I do not have time to .347 .524 -.444 -.278
customize my webpage.
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 6 iterations.
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Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
Com
pone Cumulat
nt Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance ive %
1 1.812 22.646 22.646 1.812 22.646 22.646 1.665 20.809 20.809
Exhibit 3
Factor analysis for segment 3- early followers
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a
Rotated Component Matrix
Component
1 2 3 4
I maintain my personal .645 -.037 .175 .203
desktop screen on my
laptop/PC clutter free.
I click on links of all those -.024 -.118 .913 .037
websites, the advertisements
of which are attractive to my
eyes irrespective of its
content.
I normally look for site map to .038 .751 .202 .320
navigate through a website.
I usually value expert’s -.011 .261 .537 -.471
opinions on any website.
I am insistent on having a .152 -.832 .219 .179
separate login id and
password for different
websites I use rather than
one common log in for all.
I do not want to reveal my .107 .117 -.020 .847
identity when I am involved in
open discussion forums e.g.,
Pagalguy.com,
mouthshut.com
I will visit a particular website -.829 -.019 .039 .257
if my friends recommend it to
me.
I do not have time to .724 -.109 -.181 .212
customize my webpage.
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 7 iterations.
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Exhibit 4
Initial Eigenvalues Extraction Sums of Squared Loadings Rotation Sums of Squared Loadings
Comp
onent Total % of Variance Cumulative % Total % of Variance Cumulative % Total % of Variance Cumulative %
1 2.865 35.807 35.807 2.865 35.807 35.807 2.704 33.800 33.800
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a
Rotated Component Matrix
Component
1 2 3
I maintain my personal .942 .141 .063
desktop screen on my
laptop/PC clutter free.
I click on links of all those .388 .770 -.035
websites, the advertisements
of which are attractive to my
eyes irrespective of its
content.
I normally look for site map to .933 .158 .103
navigate through a website.
I usually value expert’s -.229 .666 .066
opinions on any website.
I am insistent on having a .133 .693 -.137
separate login id and
password for different
websites I use rather than
one common log in for all.
I do not want to reveal my -.061 -.163 .916
identity when I am involved in
open discussion forums e.g.,
Pagalguy.com,
mouthshut.com
I will visit a particular website -.603 .242 .443
if my friends recommend it to
me.
I do not have time to .598 .030 .716
customize my webpage.
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 6 iterations.
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