I got my job through online application. It depends really, most places around where I live only take online applications but I still went around with CVs and gave them out to everywhere that would take them.
Both are effective but if going in person, be on your A-game because recruiters/managers could ask you some "interview like" questions on the spot. But some of the jobs I went to required that I still submit the application online. I think more and more places are doing that now.
When I was the hiring manager at American Eagle, I would sort through the paper applications w/ resumes and/or cover letters, then the regular paper applications that have no resume or cover letter, and schedule interviews.
If I hadn't filled all the spots by then, I would then look through the online applications.
Most of the time they don't, that's why you always ask for a manager, and give it to them directly.
I KNEW IT!! It sucks nobody wants someone else to get on there feet. I'm going to start calling in instead of handing the application to employee's because I know they never really give it to the manager like they claim to do.