Mobile Advertising: A Review

Harryadin Mahardika, PhD

Harryadin Mahardika Pop Economist FEUI & laporsuap.com Research objective:

– “to liberate and empower consumer...” Current research:

– Consumer empowerment

– Consumer intervention/engineering

– Mobile advertising Contact:

– harryadin.mahardika@ui.ac.id / harryadin@gmail.com

– @HarrySastro

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New Medium of Advertising Mobile telephone has great potential as an advertising medium

(Barwise and Strong, 2002)

The effectiveness of mobile channel as an advertising medium is subject to: (1) creative execution, (2) time-location-profile relevance, (3) explicit permission (Barwise and Strong, 2002)

New Medium of Advertising Mobile marketing can build brand awareness; increase consumer

involvement and interaction; and influence consumer response and activation (Sultan & Rohm, 2005).

Push vs Pull Advertising Typologies and model of wireless push and pull mobile advertising

(Barnes, 2002).

Educated young elite with higher disposable income have higher positive perception perceived toward pull-type wireless advertising, compare to the general youth market (Okazaki, 2004)

Types of mobile advertising Location-based mobile advertising:

– Customer satisfaction is improved by matching customer preferences with customer time/location. Retailer/advertiser prefers tailor ads to specific customer segment/profile (De Reyck & Degraeve, 2003).

Permission-based mobile advertising:

– Consumers generally have negative attitudes toward mobile ad unless they have specifically consented to it (Tsang, Ho & Liang, 2004).

Business/corporate adoption Companies have positive perception on mobile advertising (Okazaki,

2005).

Branding strategy, facilitating conditions, and security and cost are the strongest determinants of MNC’s mobile ad adoption (Okazaki, 2005).

SMS as advertising medium Text message (SMS) advertising is effective, both as a branding vehicle

and in stimulating response (Rettie et al., 2005).

Most user wish to have the ability to control text advertising received and support the concept of permission-based mobile ads (Manneesoon thorn and Fortin, 2006).

Heavy users showed a significantly higher need for controlling text advertising received compared to light users (Manneesoon thorn and Fortin, 2006)

Consumer adoption of mobile ads Factors that induce customers to accept mobile phone as a means of

communicating promotional content.

Entertainment value and information value is the strongest driver of customer acceptance of mobile phone as a marketing communication medium (Bauer et al., 2005)

Consumer adoption of mobile ads Four factors were identified and demonstrated a significant impact on

mobile advertising acceptance: permission, content, wireless service provider control, and delivery of the message (Barnes et al., 2007)

Consumer adoption (cont.) Mobile advertising acceptance factors; the type of incentives needed to

motivate college students to accept mobile advertising (Hanley, Becker & Martinsen, 2006):

– College students would consider accepting advertisement on their mobile phones if specific ads delivery condition were met or incentives were offer.

Cross-media The cross media effect of mobile and internet advertising was evident

on consumers’ perceived media engagement, message strength, and brand attitudes (Wang, 2007).

Message strength mediated media engagement on brand attitude (Wang, 2007).

Adoption: Cross-Market Comparison

Factors influencing the perception of mobile advertising in different cultures (Liu et al., 2012)

– The results suggest that infotainment and credibility are key factors predicting advertising value among Austrians and the Japanese.

– However, our findings show that Japanese customers are more irritated by mobile advertising than are Austrian respondents.

Personalized Mobile Advertising With smartphone, consumers' preferences can be pre-identified and

advertising messages can therefore be delivered to consumers in a multimedia format at the right time and at the right place with the right message (Chen & Hsieh, 2012):

– Results of the study identify six important design attributes for personalized advertisements: price, preference, promotion, interest, brand, and type of mobile device.

Personalized Mobile Advertising

Mobile Advertising Research (Varnali & Toker, 2010)

Mobile Advertising Research (Varnali & Toker, 2010)