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CHAPTER 1

INTRODUCTION TO THE REPORT

1.1 BACKGROUND OF STUDY

Mobile advertising is a form of advertising through mobile phones. Advertisers and

media industry are increasingly taking account of a huge and fast-growing mobile

market, though it remains at around 1% of global advertising spend.

As the mobile phones have rapidly outnumbered Television sets by over 3 to 1, and

Personal Computers based internet users by over 4 to 1, and the total laptop and desktop

PC population by nearly 5 to 1, advertisers in different markets have rushed to this new

media. In Spain, around 75% of mobile phone users receive ads through their cell phone,

in France 62% and in Japan 54%. As the mobile advertising is maturing, like in the most

advanced markets, the user involvement has also matured. In Japan, 44% of mobile

phone users click on ads they receive on their mobile phones. D2, the largest mobile

advertising agency in Japan claimed in November 2009 at the Mobile Asia Congress, that

mobile advertising in Japan was worth 900 million. (Wikipedia)

This unexceptional two-way communications grabbed the attention of media industry

and advertisers as well as mobile phone makers and telecom operators. Ultimately, SMS

became a new media - called the seventh mass media channel by several media and

mobile experts. It is a two-way mobile media, as compared to one-way immobile media

like radio, newspaper and Television. Besides, the immediacy of responsiveness in this

two-way media is a new territory found for media industry and advertisers, who are eager

to measure up market response immediately.

Additionally, the possibility of fast delivery of the messages and the ubiquity of the

technology (it does not require any additional functionality from the mobile phone, all

devices available today are capable of receiving SMS), make it ideal for time- and

location-sensitive advertising, such as customer loyalty offers (e.g. shopping centers,

BAHRIA UNIVERSITY, ISLAMABAD 2
http://en.wikipedia.org/wiki/SMShttp://en.wikipedia.org/wiki/SMS

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large brand stores), SMS promotions of events, etc. To leverage this strength of SMS

advertising, timely and reliable delivery of messages is paramount.

Mobile media has begun to draw more significant attention from media giants and

advertising industry since the mid-2000s, based on a view that mobile media was to

change the way advertisements were made, and that mobile devices can form a new

media sector. Despite this, revenues are still a small fraction of the advertising industry as

a whole.

1.1.1 Advertising Industry Pakistan

Advertising is well-thought-out by many to be the most important factor in the successof a company. A company can have the best business idea, product, or service, but

without effectively conveying their message to their target market, these ideas, products

and services can go unnoticed. A successful advertising drive can set a company apart

from the competition, and permits giving potential customers an image of what makes the

company different from the competitor.

Advertising is known as the second oldest occupation by some people. The method of

advertising has been drastically changed due to the arrival of PC, Internet, e-commerce,

and graphic designing.

The key objective of advertising is to make people buy goods or services. If the world is

the market place where everyone is trying to sell a product, a service, or an idea, the

significance of advertising could hardly be over-emphasized. The post-PC era where

information travels at the speed of light to strike all geographical barriers has helped turn

the art of advertising into a precise science which can make or break a manufacturer to

confirm maximum returns the ultimate indicator of which is the targeted increase in

sales.

http://en.wikipedia.org/wiki/Mobile_mediahttp://en.wikipedia.org/wiki/Mobile_media

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In Pakistan, advertising is as old as country itself, although it was there before the

partition too, but the changes it had experiences in last decade has made greater impact

than the previous fifty years. Pakistan was considered as a 'sellers' market till eighties,

therefore the manufacturers never had to worry about marketing. Term sales used to be

more in use than marketing and because sellers market guaranteed the total sales of the

goods produced, the manufacturers were relaxed and did little for marketing.

Pakistan and Mobile Advertising:

Mobile advertising is a segment of overall advertising industry in Pakistan, which is all

set to burst out. Now a day, almost every one owns a mobile phone which is why the

future is bright for mobile advertising. There is huge potential in mobile advertising

itself, SMS based advertising is just an initial step. There is so much more to offer in

Mobile Internet Advertising due to its capacity to tap into the user context and display

advertisements in a non-intrusive way. E.g. A consumer is surfing a sports website in his

mobile phone, then he/she could be served with an advertisement from Nike. The

strength of mobile advertising lies in its ability to display relevant ads to consumers.

Experts around the world believe that the industry is only at its formative years and is on

the edge for phenomenal growth in the emerging markets like India and Pakistan. Thereason is the low PC penetration and limited wired internet availability. Mobile web is

providing the first internet experience to most users. Mobile operators are accelerating

the market growth by providing low-cost reliable internet connections.

So what makes mobile advertising so enticing? The answer lies in the intrinsic

advantages of mobile as a medium. The reach of the mobile medium is tremendous and

has spilled well beyond the larger cities. Brands tie up with ad networks to leverage this

ability to reach out to the masses and increase their brand awareness. Mobile ad networks

are constantly trying to improve the tools and technology used to provide users with

relevant ads. Ads vary depending on the economic status of the user like a watch

company advertisement showing a cool trendy watch for youth and more sophisticated

elegant watch for an adult. Similarly parameters like operator, demography, handset


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capabilities, user profile etc provide ways to be able to deliver contextually relevant ads

to the users.

In the very near future campaigns will be more mobile device-centric and will fully

leverage the capabilities of the device. For e.g. the ads for a video ad will only be shown

on mobiles which have the capability of video streaming and other phones will be served

with banner ads. User patterns and preferences would be the key to ad relevance keeping

in mind privacy concerns of the users. Imagine passing by a movie theatre and your

mobile page will have an ad showing the trailers of the movies running in the theatre.

1.1.2 Reason for Choosing this Industry

Growth and Revenues

In Pakistan, the advertising industry showed very healthy figures i.e. Rs. 13 billion

source:Gallup). Huge portion of growth i.e. 30% came from telecom and financial

services market. The cutthroat competition in these sectors made it vital for the survival.

Media Explosion

Last decade, Media grew exponent in Pakistan, opening new horizons for the world ofadvertising. Media Planning and buying got mature and more formal. There are roughly

40 satellite TV channels and almost a dozen FM radio stations and a number of print

publications. This also showed a significant increase in the viewership of TV. This made

the job of agencies more challenging and demanding.

Creativity

A cut throat competition in all sectors ignited the clients to take advertising more

seriously (as a fruitful investment than as an expense), they now ask for superior

advertisements and are equally willing to pay for it, creativity has started niggling into

Pakistani advertisements industry.


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1.1.3 Growths in Mobile Users in Pakistan

As per PTA (Pakistan Telecommunication Authority) the number of subscribers has

more than doubled in the past 5 years with the current customer base exceeding 90

Million. There are currently 97 million mobile users in the country and the total

population is 180 million and it is anticipated that there will be at least 30 million more

users. There is a chance that more companies might enter into the market after a few

years which shows the gradual growth in the mobile users in Pakistan.

It can be said for sure that the future predictions for the growth in the mobile users are

very bright and the current scenario is very hospitable for new advances. The people of

Pakistan are also taking up the habit of using the mobile phone in their day to day matters

and are appreciating the new services being provided to them. The market is full of state-

of-the-art and mobile phones with innovative features and youngsters are buying it in

great numbers.

The introduction of value added services for example GRRS, MMS Balance Transfer

etc. have been introduced to appeal more consumers and there are many more to be

introduced in the coming future.

According to one of the prominent newspaper Daily Jang (2009), the need for mobile

phones is growing and the market is expanding day by day. The number of consumers

has increased from 3 Million in 2003 to more than 97 Million in 2010. This shows the

exponential growth in the number of consumers over the past few years.

The recent trends show a very optimistic and bright future for the Pakistani mobile

users. The number of subscribers will continue to increase as there is an enormous market

potential and similarly the number of mobile users will also increase.


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1.2 PURPOSE OF STUDY

As Mobile Advertisement is a very potential medium of advertisement and it is yet to

create an effect in the market. The purpose of the research is to study the attitude of

customers towards Mobile Advertising in Pakistan and its impact since the future of

business lies on more and more exposure and that can be done through advertising. The

success of the business is through a fruitful advertising strategy. The other purpose is to

investigate the findings and give recommendations and solutions as to what can be done

and achieved in the area of Mobile Advertising, also to understand the numerous features

of m-advertising and the usage of mobile phones in Pakistan and to recommend

improvement in area of m-advertising.

1.3 OBJECTIVES OF STUDY

The primary objective of this research study is to gain an understanding of the perception

of mobile users towards mobile advertising and its impact on the consumers.

to comprehend what m-advertising is and how important it is in the todays

competitive marketing environment

to explore consumers response to mobile advertising

to discover the relationships between attitudes toward the cell phone medium and

cell phone ads

to explore the conduct of the respondents and their tendency to accept and use cell

phone ads

For above case the main focus is on use of mobile and general attitude towards

advertising.

1.4 RESEARCH QUESTIONS

Specifically, this study will answer five research questions:

1. Whether M-advertising will be a successful tool of marketing in Pakistan?

2. What cell phone services are consumers more interested in?

3. How do consumers perceive cell phone medium for advertising?

4. How do consumers perceive different types of cell phone ads (SMS and MMS)?

5. What impact will the mobile advertising have on the consumers routine life?


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1.5 SCOPE OF STUDY

The research is designed to study the evolution and development of Mobile Advertising

in Islamabad and consumers attitude towards M-advertising. An effort has been made

along with its limitations to collect the necessary data needed to fulfill the requirementsof this report. Every possible effort has been made to cover all the data and to advance

the knowledge about the m-advertising.

1.6 SIGNIFICANCE OF STUDY

The significance of this topic is that through this research it will be settled whether the

mobile advertisement can be executed and accepted by the people in Pakistan or not. So

far very petite research has been done in this field so this research will be of help for

others. The research will help people understand the practice and importance of mobile

advertising.

1.7 RESEARCH METHODOLOGY

The research methodology is a pre-requisite of conducting the research. It states the

procedure to be followed during the course of research report. Research methodology provides the guidelines for collecting information. The data used in this report is

developed from primary source as well as secondary sources:

Primary collection method

Questionnaires were used as a primary source for data collection. Two questionnaires

were created to find out the attitude of consumers and companies towards m-advertising.

Secondary collection method

Secondary data collection techniques used in the compilation of this report includes: -

Internet Search

Books

Magazines, Articles & Newspapers

Prior research Reports


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These are the main secondary sources of data used for this study. In short, all the

resources available to get the maximum possible information in order to make this report

comprehensive and authentic have been used.

1.8 TARGET POPULATION

Respondents were selected through random sampling for the first questionnaire, from

various sectors of Islamabad to find out the response of people and the impact of M-

advertising on the society. Respondents for this level of research included students,

housewives, teachers, businessmen and other different classes of society and different age

groups. Main focus was on the young educated people of Islamabad.

In addition the second questionnaire was filled by the managers of selected companies.

The companies that were studied for this purpose are:

1. Beauty saloon

2. Educational institution

3. Telecom industry

4. Restaurant

5. Food and beverages

6. Banks

1.9 SAMPLE SIZE

A sample size of 200 was taken for the data collection of the first questionnaire which

was created to analyze the response of the general public towards m-advertising.

For the second questionnaire 6 companies were selected to find out the response of the

companys owners or Managers towards the usage of m-advertising.


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1.10 RESEARCH INSTRUMENT

Data for this research was collected through questionnaire survey. The questionnaire were

developed from the existing literature and self-created. In the questionnaire, 5-point

Likert scale (1 strongly disagree; 2 disagree; 3 neither disagree nor agree; 4

agree; 5 strongly agree) was used to measure customer attitudes towards

mobile advertisements. The survey questionnaire consisted of eighteen questions.

The first three questions were related to the demographic characteristics of the

respondents, and the last fifteen questions were intended to investigate mobile phone

users attitudes. Before the questionnaire was conducted, it was pretested on ten

mobile phone users in order to measure the construct the validity of the attitude

measurement.

1.11 LIMITATIONS OF STUDY

It is to admit that the study attempts only those aspects, which are closely relevant to the

purpose of the study. Facts and figures, which otherwise might be equally important, but

not having a direct bearing on the conclusions arrived at is this study, have been ignored.

This study employed only 9 convenience samples of people from different age

groups.

Since this study was conducted mostly with student sample, the result of this

study cannot be generalized to the cell phone user population as a whole. It can

only be generalized for the young educated people of Islamabad.

Another problem of scarcity of the written material. As very fewer researches

have been conducted on m-advertising in Pakistan.

And last but not the least was element of secrecy due to which I couldnt get

access to all information especially from the companies selected fro the study.

At last being the time duration; 2 months are not enough to understand the

functions of m-advertising and then carrying out a research report on this topic.


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1.12 SCHEME OF REPORT

This report includes the following main sections.

CHAPTER 1: Introduction consists of background of the study, purpose of the study,

scope of the study, significance of the study, objectives of the study, and research

questions, limitations of the study, research methodology and scheme of the report.

CHAPTER 2: Literature Review

CHAPTER 3: Findings and Analysis

CHAPTER 4: Discussion

CHAPTER 5: Conclusion and Future Research


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CHAPTER 2

LITERATURE REVIEW

2.1 Introduction to Advertising

Advertising is defined as any paid form of non-personal presentation and

promotion of ideas, goods or services by an identified sponsor (Kotler, 2003, p.

590) The non-personal component means that advertising comprises mass media (e.g.,

TV, radio, magazines, newspapers) that can spread a message to large groups of

individuals, often at the same time.

The non-personal nature of advertising means that there is generally no prospect for

immediate response from the message receiver (except in direct-response advertising).

2.1.1 Attitudes toward Advertising in General

Consumers stance towards advertising in broad-spectrum has long been found to be

negative. For example, Zanot (1981) found that after 1970s, consumer attitudes toward

advertising became gradually negative. Early surveys of consumer attitudes revealed

somewhat positive results.

2.1.2 Purpose of advertising

Advertising aids the following purposes:

1. Appeal to new prospects and try to expand consumers base.

2. To compete with other players in the market.

3. To create companys recognition among the customers.

4. To promote subsidiary or products produced by the same company.

5. To highlight the changes, special offers or current developments to the interest of

the consumers.

6. To increase the sale of a specific product.

7. To carry out PR and public service programs.


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Other purposes of advertising could be to promote special events, build a strong sales

force and organization employee morale, generate store traffic, gather a sales lead or

balance a seasonal sales decline.

2.2.1 Different Models of Conventional Advertising

Cognitive Information Model

This model undertakes that the consumer purchase decisions are very sensible and that

they are not altered by advertising. Advertising provides information and reduces search

costs and shopping time. Quality of the product and truthfulness of an advertising claim

can be judged by examination (without trial) and assessment of relevant objectiveinformation (e.g., price). Advertising is anticipated to be more effective for experience

and credibility than for search goods because it provides information that inspection does

not provides. (Vakratsas & Ambler, 1999).

Pure Affect Models

This approach suggests that consumers preferences are based on the elements like

feelings; liking and emotions tempted by the advertisement or the acquaintance caused by

the sheer exposure to the advertisement rather than the product brand attribute

information.

Persuasive Hierarchy Models

If advertising has to encourage sales of the product, then it must inform and then

influence has innate appeal. In the development of advertising research, the Hierarchy

concept has played a vital role. Within the Persuasive Hierarchy framework, extensive

studies have been carried out on the two important facilitating factors of individual

responses to advertising, that is, involvement and attitude toward the advertisement. The

involvement factor was operationalized by Krugman (1965-67) as the number of linkages

made between the advertised product and the consumers life during contact to an

advertisement.


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Low-involvement Hierarchy Models

In the models given below the advertisement is used to emphasize the present habits of

product and the experience of the product is the dominant factor; which frames

experience and secure the brand of consumer franchise. (Ehrenberg 1994;

Pechmann & Stewart, 1989).

2.3 Advertising and social responsibility

Advertising can be used to get both intentional as well as unintentional results. The

intentional results due to advertisements benefit us in the healthy sales of the product.

Advertisement is not just used for notifying and persuasion but also used as silent

information receiver on action taken regarding people in organized and proper way.

2.4 Mobile Advertising Introduction

In our routine, mobile technology is becoming very common in developed countries.

Statistic of Western Europe shows that 60% is user of unique mobile in 2002 and around

30% were unique SMS users.

Communication through mobile has changed the market sphere of influence because

communication happens in completely innovative manner between consumer and theadvertiser, which in its way is easy and quick.

This technology is used as it gives new opening to marketer and they can build customer

relationship of new breadth by providing information to consumer. Consequently

marketer are advertising and sponsoring their services and products by using different

means of interactive technologies.

There is less information about the potential factors that influence the behavior of

consumers towards mobile advertising, and this is because perspective customer has

fewer opportunities to express their uncertainty of marketing activities and behaviors

using mobile technology. Research done to know the impression of advertising activities

on the attitude of consumer is influenced by messages via advertising, advertising

company and even the applied media.


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Though mobile advertising is latest technology but most of the advertising is done via

mass media or web based advertising. Markers who use the mobile advertising they

should know the effective utilization of communication channels that are provided by the

mobile media. And other factor that marketer needs to know is that the attitude of mobile

consumer how they find the cell phone for advertising.

But the potential customers as yet have fewer opportunities to convey their fear of such

marketing activities using interactive mobile technology. As a result, there is less

knowledge about the potential factors that affects the consumer attitude towards mobile

advertising. Research indicates that impacts of advertising activities are influenced by

attitude towards the advertising message, advertising company and even the applied

media. However, these results are more often associated to advertising through mass

media or through web-based advertising. In order to efficiently utilize the communication

channels that are being provided by the mobile media, marketers need to know the

attitude of mobile consumers as to how they identify cell phones as a source of

advertising.

According to Yoon & Kim (2001), web advertising and mobile advertising have many

common features such as digital texts, voice, tailored and responsive capabilities.

However the mobile advertising has little edge over web based advertising such as the

mobility limitation is removed. One has access to mobile anytime and anywhere.

According to Zoller, Housen &Matthews (2001), Wireless marketing can be of three

types incentive based, location based and permission based. Permission based advertising

is different from the traditional advertising in which ads about the product, services or

content are sent only to those who have allowed or who have shown their willingness to

receive messages. Advantage of permission based messages is that is reduces the

irritation of the consumer by relying on the permission of the customers. Whereas

consumer gets specific financial benefits for approving to receive promotion campaigns.

These methods of advertising are realistic for mobile advertising because of the wireless

technology which makes it possible to identify individual user. This is great advantage of


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mobile advertising that it makes it possible to locate a specific user, and location based

advertising takes benefit of this feature.

2.4.1 Advertising via Mobile Devices

Mobile advertising is relatively new concept; mobile advertising or advertising via

mobile is the practice of wireless media such as cell phone, pagers, cordless telephone,

two way radios, baby crib monitors,

Advertising via mobile devices or mobile advertising is defined as the usage of

interactive wireless media, wireless networking systems, GPS-based locators and maps to

correspond advertising messages in form of time and location sensitive area, informationis sent with the objective of promotion of goods and services.

There are number of names for mobile advertising, such as wireless messaging

advertisement, short name for it is SMS i.e. short messaging service. This medium of

communication allows the marketer to use unique feature of adapting their message to

consumer attributes. A well define marketing strategy is that which emphasize on the

building of long term relationships.

2.4.2 Attitudes towards mobile advertising in general

The mobile advertising has produce a new field for research that is what consumer think

about advertisement of products via mobile, do they get irritated, will this be of any

good? Which means will be more useful for advertising? So a good understanding of

these things will be of vital use for advertising via mobile. As it is very important to

know how customer feel about the ads sent to them via cellular phone.

Research has shown that the major issue in the advertising is the public attitude. Some of

the studies like of Bauer & Greyser and Gallup in 1959 have anticipated positive attitude

towards advertisings, but the modern studies by Bracket and Carr in 2001 proposed


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negative attitude towards advertising. Given the fact of noticeable decline in the customer

response to the advertising it is doubtful how the consumer will perceive mobile

advertising, what will be there reaction towards it, will it be positive or negative.

As mention above that the mobile advertising and web based advertising has mutual

feature, so according to research of Tsang have shown that mobile advertising has taken

few factors from internet advertising so as to forecast customer reaction n attitude

towards product and and services.

2.4.3 Advertising Value of Mobile Advertising

According to Pavlou & Stewart (2000) advertising basic problem is how to measure the

outcome of advertising on the receiver. The communication between marketer and the

customer has effect on both so it is important to separate the effects of advertising

contact, because customer affects marketer and marketer affect customers.

Advertising value is a measure for advertising efficiency. It is defined as a subjective

estimation of the relative worth or utility of advertising to consumers (Ducoffe, 1995).

Values are the foundation of actions, attitudes, and judgments in advertising as well as in

other aspects of social life (Beatty, Kahle, Homer & Shekar, 1985). Advertising value

may be influenced by and influence both media and media vehicle context. For

advertisers, this suggests that by carefully selecting media that fit the communication

task at hand and media vehicles that precisely target the most interested potential

customers, they can enhance the value of their advertising (Ducoffe, 1995). This aspect

is of high significance for m-advertising as an innovative marketing alternative.

2.4.4 Antecedents of Attitude toward Advertising via Mobile Devices

Advertising Value of Mobile Marketing

Advertising Value measure for effective and efficient advertising and it can assist as a

guide book for customer satisfaction. Its an evaluation but of one side of utility of

advertising to consumers. Actions, feelings, thoughts and decision are the basis of

advertising. The effect of the advertising has noted to have obvious effect on the attitude


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of the public; it is hence found that the highly perceived value through cellular devices

also reflects positively on consumer actions towards products and services.

So the advertising via mobile devices is important factors that affect value for consumer.

According to Ducoffe (1995) the advertising information will decline with the repetition,

as a result the advertising value will decrease too, this is because the the customer will

get irritated and the information will be learned by public hence therefore decreasing the

value of advertising.

Consumer Attitude towards Privacy

As cellular phone are very private thing so the technology related to these devices are

consider very personal. So it might not be liked by the public, in many countries such as

Western European countries advertising via personal devices like telephone, cellularphone and email is forbidden by law, unless and until the customer has allowed to receive

ads. Therefore via using this technology of m advertising privacy issue should be of

utmost importance.

2.5 Factors influencing mobile advertising

List of few factors effecting mobile advertising according to Mobile Advertising

Association of America (2007) are as follows:

2.5.1 Personal Nature of M-advertising

M-advertising is like personal selling with addition to it that mobile can be carry

anywhere and anytime to any place. Or in other word we can say that the cellular devices

are with consumer always.

2.5.2 Interactive Nature of M-advertising

The m-advertising is of highly interactive in nature that is parties can interact with each

other anytime and anywhere. And the customer can respond to the marketer by calling,

SMS, MMS or email. And if the ad is liked by the customer he can forward it to his or

her friend.


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2.5.3 Context Awareness of M-advertising

For example, m-adverts comprising video and music clips cannot be sent to mobile

phones which do not support them. Now, different mobile phone models and even the

same models may show an advert contrarily on the screen, depending on the phone's

software version. M-advertising can be associated to location, weather, and time, all of

which can be used in pointing adverts. For example, by using location awareness the m-

advertiser is able send an advert if the customer strolls by the retailer's shop. Moreover,

since people carry their devices with them almost all the time, m-advertising is an

extremely quick media.

2.5.4 Individuals' Media Goals

The type of objective the recipient is trying to achieve by using a mobile device also

influences his meting out of the advertisement. If his media goal is information, the

consumer will be more interested in ads that provide him with suitable information. The

features that make m-advertising a selected form of advertising has been discussed,

namely its personal and interactive nature, and the context awareness. Since m-

advertising is private, it sets new kinds of demands when planning advertising.

Now while keeping in mind how to plan m-advertising, there are two main choices to be

made when planning any advertising campaigns; to whom do we want to talk, i.e.

directing the advertisement? And what do we want to say to them? i.e. the advertising

content.

2.5.5 Targeting the Adverts

It is possible to target m-advertising if the retailer can make use of the user specific

information, which is added to the m-advertising service system. Firstly, each user, when

allowing the permission to send ads also fills in a user profile. Users also input presence

status that tells if the consumer is idle or ready to receive ads. All this can be done

straight from the user's mobile device. Secondly, the retailer may use prevailing data

from the company's Customer Relationship Management (CRM) database.


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Moreover, the content awareness allows retailers to target ads according to the local

climate. Depending on the time of the day, retailers can send m-adverts that attend to the

needs of consumers at a specific point in time. For pub and restaurant owners the time

range used together with weather conditions and location information, allows a range of

opportunities in providing the mobile users with m-ads that really accomplish their

information needs.

Although the number of possible receivers would be considerably smaller, a well-planned

execution of m-advertising can be more effective than, for example direct mail (which is

often left unopened) or television advertising (which is restricted by zapping). Based on

the personal information, the weather, the time of the day or week, and the location of the

consumer, the retailer can send adverts that match with the mobile user's personal

interests and mood status.

2.5.6 Advertising Content

By applying the information given by the consumer and/or information retrieved from the

companys CRM databases, the marketer can also provide quick and well-timed

information, i.e. news that interests the receiver. Reading from mobile devices may take

additional time and effort than reading from a desktop computer. Humor and surprises in

the design of the advert creates positive approaches toward the ad and may lead to viral

marketing, especially amongst younger recipients. Also, the personal nature of the mobile

devices, as well as the context specificity and originality of m-advertising will lead

consumers towards high involvement. In such situations, the contrast affect appears to

stimulate consumers to process the advertising even more.

2.6 Characteristics of Mobile Advertising

According to Houston & Gassenheimer (1987), good marketing management highlights

the constructing of long-term relationships. Mobile advertising can support these goals in

various ways, because it allows shared communication processes between marketer and

consumers. According to Varshney & Vetter (2002), in Japan, where wireless Internet

is already a reality, several portals are sending simple advertising messages to mobile


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phone users. As more wireless bandwidth will be available, content rich advertising

including audio, pictures and video clips can be produced for individual users with

specific needs, interests and inclinations (Venkatesh et. al, 2003). It is therefore

presumed that mobile advertising will be also an important source of revenue for mobile

operators in the future (DeZoysa, 2002).

Haghirian et. al. (2005) opines that associated to advertising via classical media and

Internet-based advertising, m-advertising has some unique features which enrich as well

as limit advertising opportunities for marketers. M-advertising provides possibility for

personalization, because mobile devices typically carry the users assigned identity (Lee

& Benbasat, 2003). If marketers use mobile devices for their advertising activities, they

can use consumer feedback to tailor their messages and offerings and collect information

about consumers preferences to advance future products and services (Stewart &

Pavlou, 2002). Users are open to advertising that is personalized and related to their

lifestyle, states Reza Chady, the head of global market research at Nokia Networks

(DeZoysa, 2002).

The characteristic of personalization turns m-advertising into a very vital m-commerce

application, since it permits the usage of demographic information collected by wireless

service providers and information on the current location of a mobile user. Further than

personalization upon consumers feedback, the ability to locate consumers allows the

specific situation of a user to be measured. Consequently, advertising activities can be

modified to time and time-related items such as local events.

2.6.1. Personalization

According to Lee & Benbasat (2003), M-advertising provides possibility for

personalization, because mobile devices typically carry the users assigned identity. If

marketers utilize mobile devices for their advertising activities, they can use consumer

feedback to tailor their messages and offerings and collect information about consumers

preferences to advance future products and services (Stewart & Pavlou, 2002).


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2.6.2. Interactivity

Consumer-marketer matters are communications in which actors are trying to fulfill

their goals. M-advertising activities increase the possibilities of communication, since

they allow an instant and direct feedback from the consumer. Similarly to Internet-based

advertising, m-advertising can respond very fast to customers feedback.

2.7 Limitations of Mobile Advertising

2.7.1 Usability

Usability of mobile services and technology is one of the major impediments marketing

managers need to overcome in the future.

2.7.2 Technological Limitations

The main difference between mobile and desktop computer-based features is the size of

the screen of the mobile device (Lee & Benbasat, 2003). This seems to be one of the most

difficult obstacles to overcome when applying advertising to mobile devices, because the

scope for design of advertised messages is much more limited. There are also some

differences, such as display format and color display, that root limited scope of design.

Additionally, mobile devices are also limited in computational power, memory, and

battery life.

2.9.7 Market Diversity

The Pakistan market pretenses certain exceptional tests for the advertisers in many

respects. There are massive divisions in the economic, social, cultural, regional,

language, religious, and traditions in the different segments of the society. The consumer

profile is so broad among the different sections of the society that a single marketing

strategy is hardly effective compared to the developed countries which speak one

common language and none of these traditional trappings. Internationally accepted

advertisement concepts remain hardly effective in Pakistan due to the psyche of the

people.


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CHAPTER 3

FINDINGS AND ANALYSIS

Before analysis of the report, it is necessary to keep in mind that mobile advertising till

this point in time in every kind of market is being used as additional advertising

campaign and it is not being run as completely separate campaign. The companies using

mobile advertising havent devices single campaign solely for mobile phones but they are

running a main campaign through electronic media and in order to support the message

mobile advertising is being used.

Looking at the availability of service; MMS service was started in December 2005. At

this point this service is in its expansion stages. An MMS interconnection service was

being unveiled by Warid Telecom, Telenor and Ufone; three GSM network operators in

Pakistan, enabling subscribers of each company to exchange MMS messages with each

other, without incurring interconnect charges.

Looking at the volume of the usage of this service, Warid said MMS was at that time the

fastest growing value added service and was expected to have the same growth rate in

Pakistan as SMS experienced. However, this is to be remembered that SMS service was

introduced in Pakistan by Mobilink in year 1998 and took almost nine years to be at the

place at which it is the mostly used value added service in Pakistan. MMS will certainly

take less time to develop as it is based on the same technology as SMS.

There are no precise figures available to the volume and usage of the MMS, SMS.

However the mobile phones being used are an indication of the fact that how much

people have the access to all these services. All the users of mobile phones have access to

SMS services, however, the accessibility to MMS services is reliant upon the mobile

phones and phones which support such services are much expensive.


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There are almost 90 million mobile phone users in Pakistan and according to Pakistan

Telecommunication Authority (PTA), telecommunication sector of Pakistan is the fastest

growing sector in Pakistan and also the growth among this sector is fastest as compared

to other South Asian markets. In this regard SMS service is heavily used by the

customers specially the younger people from the age of 18 to 35 years of age.

The telecommunication sector is regulated by Pakistan Telecommunication Authority

(PTA) and it has not yet defined any regulatory policy for the mobile advertising sector.

Hence this will be door for the investors to capitalize upon. Since there are no regulations

hence the costing to advertiser is mainly based on the contracts between advertiser,

agency and the network operators. The revenue is collected on the basis of these

agreements. Also another factor for the collection of revenues is based on the factor that

it depends upon the number of customers to whom the SMS is delivered.

Comparing with the international situation, the SMS advertising is taking over M-

advertising scene due to very low cost associated for customers and advertising agencies

are benefiting from it due to the volume of advertising they are catering to. The SMS

advertising world wide is used as a supplementary advertising service for the print and

electronic campaigns for the advertisers.

These factors are also prevailing in Pakistani Market. There is a large customer base

removing the constraint of volume. Also mobile advertising for SMS services is provided

at a micro level as an additional for the advertiser. So although the cost for operating M-

advertising is high at this point but it is a good source of revenue for the advertising

agencies especially in an environment where growth rate is phenomenal in customer base

and average spending per person is raising every year.


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The result of the survey of Providing incentives for receiving mobile advertisements can

affect consumer intentions to receive mobile advertisements shows that 51% agree with

the statement. 2% strongly disagree and 20% strongly agree to it. Almost half of the

respondents agree that if they are provided with some incentives then they will prefer to

receive the m-advertisements.

BAHRIA UNIVERSITY, ISLAMABAD

Table 3.18: Respondents response for getting incentives for receiving ads

40 20.0 20.2 20.2

102 51.0 51.5 71.7

41 20.5 20.7 92.4

11 5.5 5.6 98.0

4 2.0 2.0 100.0

198 99.0 100.0

2 1.0

200 100.0

Strongly agree

Agree

Neither agree nor

disagree

Disagree

Strongly disagree

Total

Valid

SystemMissing

Total

Frequency Percent Valid Percent

Cumulative

Percent

33

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3.2.2 Cross Tabulation Analysis

Table 3.19: Cross Tabulation between age of the respondents and their preference of ads

age * preferableads Crosstabulation

29 3 10 2 44

65.9% 6.8% 22.7% 4.5% 100.0%

64 9 34 4 111

57.7% 8.1% 30.6% 3.6% 100.0%

12 0 3 0 15

80.0% .0% 20.0% .0% 100.0%

6 2 0 1 9

66.7% 22.2% .0% 11.1% 100.0%

2 0 2 1 5

40.0% .0% 40.0% 20.0% 100.0%

4 1 0 1 6

66.7% 16.7% .0% 16.7% 100.0%

2 0 1 0 3

66.7% .0% 33.3% .0% 100.0%

3 0 1 0 4

75.0% .0% 25.0% .0% 100.0%

122 15 51 9 197

61.9% 7.6% 25.9% 4.6% 100.0%

Count

% within age

Count

% within age

Count

% within age

Count

% within age

Count

% within age

Count

% within age

Count

% within age

Count

% within age

Count

% within age

15-20

21-25

26-30

31-35

36-40

41-45

46-50

above 50

age

Total

short duration long duration

short with

gimmicks and

animations

long with

gimmicks and

animations

preferableads

Total

The above table shows the cross tabulation between age and preferred advertisements. It

shows that what types of ads are preferred by the respondents according to their age. The

result shows that most of the respondents almost from all the age groups like watching

short duration advertisements. Only a few respondents aging 36-40 like long

advertisements with gimmicks and animations. This can be concluded that SMS

advertisements will be preferred by all the respondents and MMS advertisements willonly be preferred by respondents aging from 36-40 as they like advertisements that are

long with gimmicks and animations.

Table 3.20: Cross Tabulation between age of the respondent and their frequency of watching TV


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age * frequencywatchTV Crosstabulation

12 12 4 16 44

27.3% 27.3% 9.1% 36.4% 100.0%

31 16 13 51 111

27.9% 14.4% 11.7% 45.9% 100.0%

2 5 1 7 15

13.3% 33.3% 6.7% 46.7% 100.0%

2 2 1 4 9

22.2% 22.2% 11.1% 44.4% 100.0%

1 1 2 2 6

16.7% 16.7% 33.3% 33.3% 100.0%

4 3 0 0 7

57.1% 42.9% .0% .0% 100.0%

1 1 0 1 3

33.3% 33.3% .0% 33.3% 100.0%

1 1 0 2 4

25.0% 25.0% .0% 50.0% 100.0%

54 41 21 83 199

27.1% 20.6% 10.6% 41.7% 100.0%

Count

% within age

Count

% within age

Count

% within age

Count

% within age

Count

% within age

Count

% within age

Count% within age

Count

% within age

Count

% within age

15-20

21-25

26-30

31-35

36-40

41-45

46-50

above 50

age

Total

2-3 hours 4-5 hours

more than

5 hours

less than

2 hours

frequencywatchTV

Total

The above table shows the cross tabulation between age and frequency of watching T.V.

The result shows that mostly young people aging from 15 to 30 and above 50 watch less

T.V. i.e. less than 2 hours a day. The m-ads can be targeted towards these two extremes

i.e. the young aging from 15 to 30 and people above 50. The respondents aging from 36

to 40 watch T.V. more than 5 hours a day which shows that they are heavy viewers of

T.V. and will not be the target for m-ads.

Table 3.21: Cross Tabulation between respondents gender and mobile ads are irritating


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age * watchadsorswitch Crosstabulation

28 16 44

63.6% 36.4% 100.0%

68 43 111

61.3% 38.7% 100.0%

5 10 15

33.3% 66.7% 100.0%

5 4 9

55.6% 44.4% 100.0%

3 3 6

50.0% 50.0% 100.0%

4 3 757.1% 42.9% 100.0%

1 2 3

33.3% 66.7% 100.0%

0 4 4

.0% 100.0% 100.0%

114 85 199

57.3% 42.7% 100.0%

Count

% within age

Count

% within age

Count

% within age

Count

% within age

Count

% within age

Count% within age

Count

% within age

Count

% within age

Count

% within age

15-20

21-25

26-30

31-35

36-40

41-45

46-50

above 50

age

Total

YES I do

watch

advertise

ments

NO I switch

to other

channels

watchadsorswitch

Total

The above table shows the cross tabulation between age and frequency of watching ads

on T.V. or switching to other channels during commercial breaks. The result shows that

mostly respondents aging from 15 to 25 watch ads and respondents aging 26 to 30 and

above 50 switch to other channels. Hence it is concluded that young respondents like

watching ads on the T.V. and they will prefer receiving m-ads too.

Table 3.23: Cross Tabulation between respondents gender and preference of ads


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79 6 25 6 11668.1% 5.2% 21.6% 5.2% 100.0%

43 9 26 3 81

53.1% 11.1% 32.1% 3.7% 100.0%

122 15 51 9 197

61.9% 7.6% 25.9% 4.6% 100.0%

male

female

gender

Total

short

duration

long

duration

short with

gimmicks and

animations

long with

gimmicks

and

animations

preferable ads

Total

The above table shows the cross tabulation between gender and their preference of ads on

T.V. The result shows that both the male and female respondents prefer short duration

ads. This means that if they are willing to receive m-ads so they will prefer SMS ads.

While some females also prefer long duration with gimmicks and animations, so it can be

concluded that MMS ads will be preferred more by the female population.

Table 3.24: Cross Tabulation between respondents gender and frequency of watching TV

The above table shows the cross tabulation between gender and their frequency of

watching T.V. the table shows that the 13.6% females are heavy viewers of T.V. as they

watch T.V. more than 5 hours a day. Mostly the male respondents are less viewers of

T.V. as only 44.1% males watch T.V. less than 2 hours a day.


34 22 10 52 118

28.8% 18.6% 8.5% 44.1% 100.0%

20 19 11 31 81

24.7% 23.5% 13.6% 38.3% 100.0%

54 41 21 83 199

27.1% 20.6% 10.6% 41.7% 100.0%

Count

% within gender

Count

% within gender

Count

% within gender

Male

Female

Gender

Total

2-3 hours 4-5 hoursMore than5 hours

Less than2 hours

Frequency of watching TV

Total

38

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Table 3.25: Cross Tabulation between respondents gender &mobile ads source of timely information

25 60 15 9 8 11721.4% 51.3% 12.8% 7.7% 6.8% 100.0%

19 32 18 8 3 80

23.8% 40.0% 22.5% 10.0% 3.8% 100.0%

44 92 33 17 11 197

22.3% 46.7% 16.8% 8.6% 5.6% 100.0%

male

female

gender

Total

strongly

agree agree

neither

agree nor

disagree disagree

strongly

disagree

mobile ads source of timely information

Total

The above table shows the cross tabulation between gender and their attitude towards m-

ads whether it is a source for timely information or not. The results show that 40% female

respondents agree with it and 51.3% male respondents also agree that it provides timely

information. Hence it can be concluded that both the males and females agree that m-ads

will be a good source for providing timely information. As only 3.8% female and 6.8%

male strongly disagree with it.

Table 3.26: Cross Tabulation between respondents gender and providing incentives for receiving

mobile advertisements can affect consumer intentions to receive ads


25 54 28 8 3 118

21.2% 45.8% 23.7% 6.8% 2.5% 100%

15 48 13 3 1 80

18.8% 60.0% 16.3% 3.8% 1.3% 100%

40 102 41 11 4 198

20.2% 51.5% 20.7% 5.6% 2.0% 100%

Male

Female

Gender

Total

Strongly

Agree Agree

Neither

Agree nor

Disagree Disagree

Strongly

Disagree

Incentives for receiving ads

Total

39

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The above table shows the cross tabulation between gender and their attitude towards m-

advertisements providing incentives. 60% respondents that agreed that providing

incentives for receiving m-advertisements can affect consumer intentions to receive

mobile advertisements were females. 45.8% males also agree with this statement. The

overall result is that the respondents think that providing incentives will have an impact

on the consumers as only 2.5% males and 1.3% female disagrees with it.

Table 3.27: Cross Tabulation between respondents occupation and time of receiving m-ads


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22 12 22 88 144

15.3% 8.3% 15.3% 61.1% 100%

2 2 0 5 922.2% 22.2% .0% 55.6% 100%

0 2 0 7 9

.0% 22.2% .0% 77.8% 100%

1 0 0 1 2

50.0% .0% .0% 50.0% 100%

0 0 2 3 5

.0% .0% 40.0% 60.0% 100%

0 0 0 4 4

.0% .0% .0% 100.0% 100%

1 1 1 2 5

20.0% 20.0% 20.0% 40.0% 100%0 1 4 2 7

.0% 14.3% 57.1% 28.6% 100%

0 2 1 1 4

.0% 50.0% 25.0% 25.0% 100%

26 20 30 113 189

13.8% 10.6% 15.9% 59.8% 100%

student

teacher

university employee

advocate

private sector emplyee

radio anchor

nurse

housewife

business man

occupation

Total

morn ing noon afternoon evening

at what time of the day would you like to

receive the advertisement

Total

The above table shows the cross tabulation between occupation and the m-advertisement

receiving time. The result show that 55.6% teachers, 60 % private companies

employees, 61% students, 50% advocates, 100% radio anchors, 40% nurses from

different hospitals, and 28.6% housewives are willing to receive the ads at evening time

while only 50% businessman are willing to receive the ads at noon. The overall result

shows that all those who are willing to receive the ads at evening time are busy in their

own professions from morning till afternoon so that is why they want the advertisements

to be received in the afternoon so they will have time to read the advertisements. Only the

businessmen are willing to receive the ads at noon because they are the people who are

mostly busy from noon till the evening.

Table 3.28: Cross Tabulation between respondents gender and preference of m-ads


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The above table shows the cross tabulation between gender and what type of

advertisements (SMS or MMS) would they prefer. The result shows that 73% male and

57.7% female prefer SMS advertisements. And only a few respondents prefer MMS

advertisements. One of the reasons behind this liking can be that not all the mobile users

have the access to MMS technology so that is the reason why most of the respondents

favor SMS advertisements.

3.3 Results of Company Questionnaire

3.3.1 Frequencies Distribution Analysis

Table 3.29: Types of Company

Percent

Cumulative

Percent

Valid bank 9.1 9.1

telecom industry 27.3 36.4

restaurant 27.3 63.6

oil refinery 9.1 72.7

food and beverages 9.1 81.8

educational institution 9.1 90.9


81 30 111

73.0% 27.0% 100.0%

45 33 78

57.7% 42.3% 100.0%

126 63 189

66.7% 33.3% 100.0%

Count

% within gender

Count

% within gender

Count

% within gender

Male

Female

Gender

Total

SMS MMS

What type of

Advertisements would

you prefer

Total

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Spa and beauty saloon 9.1 100.0

Total 100.0

Most of the respondents were from telecom industry and restaurants. Other companieswere banks, educational institutions, food and beverages and beauty saloons.

Table 3.30: Respondents satisfied with cost of advertising mediums

Percent

Cumulative

Percent

Valid highly satisfied 54.5 54.5

Satisfied 45.5 100.0

Total 100.0

Almost all the respondents are satisfied with the current advertising mediums that they

are utilizing in terms of its cost. The result shows that 54.5% that is half of the

respondents are highly satisfied.

Table 3.31: Respondents satisfied with impact of current advertising mediums

Percent

Cumulative

Percent

Valid highly satisfied 27.3 27.3

satisfied 63.6 90.9

neither satisfied

nor dissatisfied9.1 100.0

Total 100.0

Almost all the respondents are satisfied with the current advertising mediums that they

are utilizing in terms of its impact on the customers. The result shows that 63.6% that is

more than half of the respondents are satisfied. Only 9.1% are neither satisfied nor

dissatisfied. The result shows that almost all the companies are satisfied and there is no

such company who is not satisfied with the current advertising mediums.


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Table 3.32: Respondents mobile ad awareness

Percent

Cumulative

Percent

Valid YES 100.0 100.0

The result shows that all the respondents are aware of m-advertising.


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Table 3.33: Respondents response of mobile good source of promotion

Percent

Cumulative

Percent

Valid strongly agree 45.5 45.5agree 45.5 90.9

neither agree nor

disagree9.1 100.0

Total 100.0

The result of the survey of whether m-advertising is a good source for promoting a

product shows that almost 45.5% respondents responded in a positive way. They are of

the opinion that mobile should be used as a source for promoting product and service.

Table 3.34: Respondents response of using mobile for promoting product

Percent

Cumulative

Percent

Valid surely 90.9 90.9

may not 9.1 100.0

Total 100.0

Of all the respondents, only 9.1% choose not to use mobile for promoting their product.

However the remaining 90% are willing to use mobile for promotion. Hence it can be

concluded that if this technology is made available so it will be utilized by many

companies.

Table 3.35: Respondents ads preference

Percent

Cumulative

Percent

Valid SMS 9.1 9.1

BOTH 90.9 100.0

Total 100.0


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Chapter 4

DISCUSSION

The results from the data collected from the customers and companies have been

discussed separately as given below:

Overall, the result from the customers suggests that the participants have positive

attitudes mobile advertising. The respondents are of the opinion that mobile advertising

poses some security problems. Most of the respondents frequency of watching T.V. is

less, so the advertisements shown on T.V. will also be ignored because if they dont

watch T.V. so the advertisement shown on the T.V. will have no impact on the

consumers. A large majority of respondents watch short duration advertisements on the

T.V., which results in that SMS ads will be preferred by the mobile users. SMS ads will

be more successful than MMS as the MMS technology is not available on all the cell

phones. Almost all the respondents agree that mobile advertisements will provide them

with the information at the right time. The respondents prefer to receive only 1 message a

day. So it can be concluded that the respondents will find it disturbing to receive more

than 2 messages day. Only a few respondents will ignore the message while many of the

respondents will read it not right away but will read it when they get it. The results also

show that the best time to send the advertising message is evening. Almost all the

respondents agreed that it is source for providing them with information which results in

more exposure and makes purchasing easier and convenient. Some respondents are of the

view that m-advertisements are annoying at times. Young people were more tolerant

toward mobile advertising than elder people, so the message might not irritate them a lot

while comparing with older people. Respondents agreed that if they are provided withsome incentives then they will prefer to receive the m-advertisements. The use of

incentives shows a strong correlation to motivate m-advertising acceptance. Marketers

may consider offering various combinations of incentives to motivate the consumers.


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The results from the companies suggest that respondents have positive attitudes mobile

advertising. Despite the fact that all the respondents are satisfied with the current

advertisements mediums that they are currently utilizing in terms of costs and its impact

on the consumers, they still welcome more and more promotion mediums like m-

advertising. The companies have positive attitude towards utilizing m-advertising for

promoting their products, as all the respondents strongly agree that m-advertising is a

good source of promoting a product or service. They are of the opinion that both the SMS

and MMS both will be used for advertising the products as MMS makes the message

more attractive so there is a chance that the customer will view it. Standard Chartered

Bank already uses m-advertising for promotion.

The only company that opposes m-advertising is Solitude Day Spa. The owner

declared that m-advertising cannot be successful in the beauty saloon industry in

Pakistan. As it is a gender driven business so it contains some privacy reasons. The

owner states that it is not wise to use m-advertising in a culture like Islamabad where

people are not aware of the spa industry. Many women in Islamabad have mobile phones

that are not registered by their own names. So it will be very difficult to create a database

of the clients which will be helpful in using m-advertising. These are the reasons the

owner confirm might become the hurdles in the success of m-advertising for beauty

saloons and spas in a conservative culture like Islamabad.


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CHAPTER 5

CONCLUSION AND FUTURE RESEARCH

5.1 Conclusion

Based on the findings of the data collected from both customers and companies it can be

concluded that the Mobile advertising has a great potential of being used and accepted by

the consumers and many companies in Islamabad. After the research the respondents

responded in a positive manner towards m-advertising. The consumers are willing to

receive m-advertisements. Some people feel that m-advertisements can be irritating and

disturbing at times. But many are of the opinion that m-advertisements will provide them

with the information, will give them more exposure to the market and will make

purchasing convenient too.

Companies find it very easy and convenient source of advertising. All the companies are

satisfied with the current advertising mediums that they are utilizing in terms of cost and

its impact on the consumers, but still they welcome new and unique ways of advertising

their products. They are of the opinion that both SMS and MMS will be used foradvertising if m-advertising is integrated with the current advertising mediums. Many

people strongly agree that providing incentives for receiving mobile advertisements can

affect consumer intentions to receive mobile advertisements. So keeping in mind this the

companies should provide the customers with some incentives so they will be willing to

receive the m-advertisements.

More than 90% of the young population of Islamabad has access to mobile phones and

the growth of using mobile phone is increasing day by day. These are the people who can

be targeted. The companys especially those who are targeting the young audience

should take this opportunity of advertising via mobile as it will have a great impact on the

consumers.


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Mobile advertising has been started recently which is in its infant stage. Also the type of

mobile phones being used in Pakistani market does not support MMS services as in the

other parts of the world where most of the m-advertising is done through sending MMS.

However market is changing its shape and newer and cheaper mobile phones are being

introduced in the market which makes MMS advertising a perspective venture for the

future. The mobile phones being used are an indication of the fact that how much people

have the access to all these services and how much they are welcoming m-advertising.

All the users of mobile phones have access to SMS services, which makes it easier for

advertisers to take advantage of this scenario and start using m-advertising as a tool for

promoting their products. The use of incentives shows a strong correlation to motivate

cell phone advertising acceptance. Marketers may consider offering various combinations

of incentives.

The other conclusions drawn are that the people of Pakistan are welcoming newer

technologies. The advertisers are using new and unique ways of advertising their

products. So m-advertising will also be a success in the Pakistani competitive market

environment.

Mobile phone is a new direct marketing device that provides direct access to

consumers and interacts with them in a very personal way. It can be used for attractive

and efficient marketing. The mobile advertising, mobile Internet, mobile banking and

mobile entertainment services are growing in the world and in Pakistan it should also be

introduced. GSM operators and retailers should benefit from these mobile marketing

tools.

M-advertising will become fully utilized when managers see m-advertising as an

essential part of advertising portfolio that should be included in the future plans and

budgets of every company wanting to survive the interlinked m-commerce era. Overall, it

is clear that mobile advertising is going to be the future trend.


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5.2 Managerial Implications

Some of the recommendations are as follows:

The companies that are targeting the teenagers or the young population should

make use of m-advertising as the usage of mobile is rapidly growing mostlyamong the teenagers and the research also confirm that almost all the young

people welcome m-advertising.

Those companies that are unaware of this tool of marketing should be made aware

as the consumers are aware of m-advertising and they expect the companies to

send them advertisements related to the products that they have interest in.

All the users of mobile phones have access to SMS services however the

accessibility to MMS services is dependent upon the mobile phones and such

phones are much expensive. So more focus should be on SMS rather than on

MMS.

The advertising agencies should also be made aware of m-advertising as it is good

source of revenue for the advertising agencies especially in an environment where

growth rate is phenomenal in customer base and average spending per person is

raising every year.

The research also shows that many people dont watch TV more than 2 hours a

day. This brings us to the conclusion that these people will not watch the

advertisements on the TV; as a result it is important for the companies to know

that the ads shown on TV are of no use. They should find newer ways of

advertising their products. The solution is to advertise via mobile.

This communication channel will become more popular when people will become

more familiar with the underlying technology.


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5.3 Future Research

After establishing the fact that it is possible to implement mobile advertising in Pakistani

advertising scenario there are many future prospects related to mobile advertising which

need the future study in order to successfully implement mobile advertising in this

market. Customer prospective of the mobile advertising needs a deep study. These issues

or future prospects include

Privacy concerns regarding mobile advertising bother the Pakistani consumer in

the same way as any other developed countrys customer. More research should

be done in the permission based M-advertising.

How can customer databases be established for mobile advertising?

Emergence of new rules and regulations by regulatory bodies with respect of

mobile advertising.

These are the issues of immediate concern for the mobile advertising field while

implementing it in any form in Pakistani market.

At this stage there has been very little research available regarding mobile advertising in

Pakistani environment. Considering the fact that it has turned to a multibillion industry all

over the world; future research is needed in a vastly growing market like Pakistan.


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