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

1. Mobile Advertising: A Review
Harryadin Mahardika, PhD

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Personalized Mobile Advertising

16. Mobile Advertising Research
(Varnali & Toker, 2010)

17. Mobile Advertising Research
(Varnali & Toker, 2010)