Global Journal of Finance and Management. ISSN 0975-6477 Volume 6, Number 7 (2014), pp. 669-674 © Research India Publications http://www.ripublication.com Impact of Newspaper Advertisement on Consumer Behavior Mohit Bansal 1 and Shubham Gupta 2 1,2 Department of Chemical Engineering, NIT BHOPAL–462003, Madhya Pradesh Abstract The current study analyzes the psychological impact of the newspaper advertisement on a consumer and thus his assessment of the effectiveness of the advertisement. The study also compares human perception of a newspaper advertisement versus the intended perception of that advertisement. Psychological impact and perception are important aspects found to affect consumer behavior. The advertisements used for the study ranged from products to services. Resnik and Stern criteria were used to evaluate the level of advertising information provided in the newspaper advertisement. The study revealed that 40% advertisements were informative whereas only 26% percent were perceived to be informative by the common consumer in the year 2013. Similar comparisons were made on other characteristics of newspaper advertisement such as perception of product quality and performance, components/ contents and special offers. Keywords: Consumer Behavior, Content Analysis, Impact of newspaper advertisement. 1. Background Advertising is a big component in the market economy. It plays a significant role in motivating consumers to either use a particular brand or to increase their consumption of that brand. Newspaper forms an effective form of media in a developing country such as India where its reach is to almost every household. According to the 55 th Annual Report of Registrar of Newspaper for India (RNI) in 2011 India leads the world in terms of newspaper circulation with nearly 330 million newspapers circulated daily and it grew at a rate of 6.25% over the previous year [6].Similarly, according to the figures of Nielsen Company, expenditure in India on Newspaper advertisements was US$ 4 billion in the year 2011 and is expected to grow at an impressive rate. Therefore the objective of this study is to find the role played by informative content in