Mobile Advertising: A Review

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A review toward mobile advertising literature. Delivered by Harryadin Mahardika at Universitas Indonesia

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Mobile Advertising: A Review

  1. 1. Mobile Advertising: A Review Harryadin Mahardika, PhD
  2. 2. 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 2
  3. 3. 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)
  4. 4. New Medium of Advertising  Mobile marketing can build brand awareness; increase consumer involvement and interaction; and influence consumer response and activation (Sultan & Rohm, 2005).
  5. 5. 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)
  6. 6. 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).
  7. 7. 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).
  8. 8. 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)
  9. 9. 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)
  10. 10. 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)
  11. 11. 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.
  12. 12. 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).
  13. 13. 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.
  14. 14. 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.
  15. 15. Personalized Mobile Advertising
  16. 16. Mobile Advertising Research (Varnali & Toker, 2010)
  17. 17. Mobile Advertising Research (Varnali & Toker, 2010)

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