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Piercing the Fog of Mobile Advertising Ramin Vatanparast Dr. of Technology, Nokia Inc. Palo Alto, California, USA [email protected] Abstract Mobile advertising holds strong promises to become the most highly targeted advertising medium offering new ways to target messages to users. By utilizing mobile advertising, companies can run marketing campaigns targeted to tens of thousands of people with a fraction of the costs and time compared to other direct marketing mediums. However, as mobile advertising is a novel approach, many aspects of it still need further investigation. Little is known regarding the effectiveness of mobile advertising campaigns and the factors contributing to their success. This article aims to provide a comprehensive understanding of the advertising space and its influencing factors. First, the study investigates factors that influence mobile advertising from both the industry’s and consumer’s point of view. Second, based on a review of previous studies in the field, the author proposes a conceptual model for mobile advertising, which categorizes the factors in different groups and provides a holistic view of their impact in the mobile advertising space. 1 Introduction Advances in mobile technology have changed the business environment significantly. Devices and systems based on mobile technologies have become a common place in our everyday lives [1], increasing the accessibility, frequency and speed of communication. As a result, mobile technologies have the potential to create new markets, change the competitive landscape of business, create new opportunities, and change existing community and market structures [2]. Today's development in information technology helps marketers to keep track of customers and provide new communication venues for reaching smaller customer segments more cost effectively and with more personalized messages. This resulted in two major changes of permission marketing and targeted marketing in marketing communications environments [3]. Developments in information technology are speeding up the shift towards permission marketing [4], and at the same time marketers are shifting to targeted marketing. As result, modern advertisers are increasingly relying on various modes of interactive technology to advertise and promote their products and services [5]. Gradually, many companies are redirecting their marketing spending to interactive marketing, which can be focused more effectively on targeted individual consumer and trade segments. Despite this, potential customers so far did not have the opportunity to signal their likes and dislikes with marketing activities via mobile devices. This puts marketers at a high risk [6] as they are unsure whether their marketing activities cause positive or negative reactions by the customer. Although the global mobile advertising industry is in its formative years [7], forecasts concerning growth of mobile advertising have been quite enthusiastic [8]. Mobile advertising holds strong promises to become the best targeted, one-to-one, and most powerful digital advertising medium, offering new ways to aim messages to users that existing advertising channels can never do. The mobile advertising market is expected to grow to over $600m by 2007 [9] and will jump to $11.35bn in 2011 [8]. Europe will lead the mobile advertising market whereas in the USA, the fragmented nature of its cellular markets [10] and users’ fear of mobile spam have slowed the market growth [11]. By utilizing mobile advertising, companies can run marketing campaigns targeted to tens of thousands of people with a fragment of the costs in just few seconds of time [12]. There are a couple of reasons why many experts consider mobile advertising as an encouraging branch of mobile business [13]: high penetration rate of mobile terminals, mobile terminals as personal communication devices, individually addressable, multimedia capabilities and interactivity. However there are also some serious challenges when talking about mobile advertising, such as spam, limited user interface, privacy concerns, and the expense of mobile data communication. The mentioned features and challenges of mobile advertising show an area of divergence: personalized advertising requires sensitive information about the end user, his fields of interest, latest activities or his current location. On the other side there are privacy concerns when providing this information for a mobile advertising application. Despite all the attention paid to advertising, only few academic researchers have evaluated critical factors determining its success. There is no agreement between researchers whether the focus should be on internet-based or message-based advertising in the telecom sector. In the US, researchers have mainly focused on wireless internet-based advertising whereas in Europe mobile advertising has just been understood as message-based telecommunication [12]. Even though these two views form a very different basis for future business models, main factors affecting both environments are the same. This article aims casts light on the challenges and future directions of advertising system by developing a conceptual model that helps researchers and managers to better understand the critical components of this system. The first objective of this study is to review the factors that influence advertising system from the industry’s and consumer’s point of view. Second, based on this literature, the author proposes a preliminary conceptual model for factors effecting advertising system. The proposed conceptual model help researchers and managers better understand the critical components of mobile advertising and provide ideas for further research in this emerging field. The following section discusses about definitions around this business and clarifies the definition used in this article. The subsequent section discusses the factors affecting mobile advertising system based on literature study. The final section provides a conceptual model based on the findings and concludes the paper with discussion on the applicability of the model and with suggestions for future research. 2 Definition It is valuable to make a distinction between mobile advertising and mobile marketing. Although there are various definitions for the concept ‘mobile advertising’ in both academic and industrial publications, no commonly accepted definition exists [14]. From a marketing perspective, we are dealing with an extremely under researched phenomenon. For instance, one of the largest professional associations for marketers, the American Marketing Association [15] does not give any definition, in its Dictionary of Marketing Terms, for mobile advertising, mobile marketing or wireless advertising. The definition of advertising provided by the American Marketing Association [15] is as follows: “The placement of announcements and persuasive messages in time or space purchased in any of the mass media by business firms, nonprofit organizations, government agencies, and individuals who seek to inform and/ or persuade members of a particular target market or audience about their products, services, organizations, or ideas”. Kotler [16] defines advertising as “any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor”. Mobile advertising can be seen as a part of mobile commerce [17], which is seen as radically different from traditional commerce [18]. Mobile advertising enables not only sending unique, personalized and customized ads [19] but also engaging consumers to discussions and transactions with the advertiser. In this paper, based on the common characteristics of mobile media, the definition of mobile advertising is used as “any paid content, communicated by mobile media with the intent to influence the attitudes, intentions and behavior of those addressed” [20]. The American Marketing Association [15] defines marketing as “the process of planning and executing the conception, pricing, promotion, and distribution of goods, services, and ideas to create exchanges that satisfy individual and organizational goals”. The Mobile Marketing Association [21], the worldwide leader in promoting mobile marketing via mobile devices, defines mobile marketing as “the use of wireless media as an integrated content delivery and direct response vehicle within a cross-media marketing communications program”. Therefore, mobile marketing can be considered marketing in the context of a mobile environment. In this article, mobile marketing definition is used as “using interactive wireless media to provide customers with time and location sensitive, personalized information that promotes goods, services and ideas, thereby generating value for all stakeholders [22]. 3 3.1 Consumer Privacy Privacy refers to the degree to which personal information is not known by others [23]. Customer privacy has always been a critical issue in marketing, but with the rise of Internet-based commercial transactions has brought a greater meaning in recent years [23]. As mobile communication is becoming more and more ubiquitous and the amount of information traveling wirelessly increases, the analysis, planning, and implementation of a security architecture becomes extremely important [24]. Consumers regard their mobile phone as a very private item [25]. Mobile consumers are very sensitive towards receiving messages from unknown persons or organizations. Most consumers are still quite uncomfortable and skeptical of mobile business and whether these businesses are feasible and secure [26]. From the users’ point of view, invasion of privacy and general security concerns relating to the mobile medium have been identified as one of the main obstacles to the success of mobile advertising [27]. According to studies by Forrester [28] and Cahners In-Stat Group [29], consumer concerns over privacy and invasiveness regarding mobile advertising could threaten the entire mobile advertising market, at least in the short term. According to Forrester [28], 80% of consumers fear invasion of their privacy in SMS campaigns. According to Ackerman, Darrel and Weitzner [30], privacy concerns can not be dismissed, but consumers will accept a certain degree of privacy loss if the benefit is perceived as being sufficient and satisfying. This was confirmed by another study [31] which found that roughly 65% of US consumers are willing to give their personal information to marketers in exchange for relevant mobile marketing information. Quoting a review of several consultancy studies conducted by Lewis [32], US consumers seem to be willing to accept advertising to subside the cost of other services such as e-mail and news services. It is critical to remember that customers, eventually, judge the right ways, time, and place for what is perceived as convenient communication. 3.2 Purpose It is clear that mobile advertising is a unique form of advertising which brings new way of reaching consumer and also new ways that consumer can interact with ads. An individual’s purpose is often referred to as a person’s acknowledgment of what he is pursuing in a particular situation and to an associated inner state of arousal [33]. Thus an individual’s mobile media purpose is his acknowledgment of the processing goal he is pursuing when attending to his mobile device, which in this case is the medium for mobile ad. Depending on what type of purpose the receiver is trying to satisfy by using a mobile device also affects his processing of the ads. If the user’s the media purpose is information, the customer will be more interested in ads that provide him relevant information on products, services or companies. On the other hand, if the customer’s purposes are more towards entertainment, he will enjoy ads that are entertaining and provide experiential satisfaction through aesthetic pleasure, emotional stimulation, or social experience [34]. A consumer may wish to satisfy both kinds of purposes at the same time, and the relative importance of the types may change according to the situation that he is in. 3.3 Performance The indignity people feel when being addressed by ads greatly influences their attitude towards advertising [35]. Consumers are likely to perceive it as an unwanted and irritating influence, when advertising employs techniques that annoy, offend, insult, or are excessively manipulative [36]. Mobile advertising can provide an array of information that distracts, confuses, and overwhelms the consumer [2]. Consumers may therefore feel confused about them and react negatively. Irritation does negatively influence the value of mobile advertising [37]. Still a low correlation coefficient indicated that the influence of irritation is not as strong as the influence of the variables entertainment and informativeness. Irritation is a phenomenon that is similar to reactance, with consumers feeling that the ads are too intrusive and tend to refuse ads. Rodgers and Thorson [38] provide an extensive summary of responses to online advertising measures of effectiveness [39] in traditional media. A critical measure is attention. Gaining attention, often measured after the fact as recall, is a precondition for influencing consumer action. Compared with other media, the recall rate for mobile ads is high [40]. Viral effects [41] multiply the impact of appealing mobile advertising messages and consumer attention. By forwarding messages to their friends, recipients create strong peer influence. Other intended consumer reactions to mobile advertising messages include following a link to a Web page, e-mailing the advertiser, purchasing a product, and placing a telephone call [42]. Compared to click-through rates of less than 1% for Web-based advertising [40], average click and call through rates for wireless devices are 19% and 12%, respectively [40]. Well targeted campaigns in Japan achieved click-through rates up to 33% [43]. 4 4.1 Message Content Advertising messages refer to communication exchanges between advertisers and consumers [36]. Mobile advertising activities strongly depend on message characteristics, which need to be developed carefully. Marketers can not only rely on the fact that an advertising message sent via a mobile device will be read and remembered automatically. Similar to attracting attention in other media, the content of a mobile ad is crucial. Content is a key factor in creating a service that attracts the users and keeps them coming back [44]. We should bear in mind that the golden rule of all advertising, ‘content is king’, is also not complete. Here we can argue that if the content, is not relevant then the ad does not have much value. As result we have to add the relevancy to the equation, ‘relevant content is king’ in mobile advertising. Reading from mobile devices may take more time and effort than reading from a desktop computer [45]. Because of that, and also due to the space limitations, the message should be kept short and the use of graphics or photos is encouraged [46]. Mobile advertising should contain an attractive idea, convey this idea concisely, employ language or image understood by the target group, and utilize the available space or characters effectively [34]. Although the receiver pays little or nothing for information services, ads must complement consumer interests. Advertising messages should also disclose how to stop receiving further messages. Humor and surprises in the design of the ad create positive feelings toward the ad and may lead to viral marketing, especially among the younger receivers [34]. Entertainment has turned out to increase advertising value in different empirical investigations [47]. The higher the entertainment factor of mobile advertising messages, the higher the perceived advertising value of the consumer [37]. 4.2 Credibility Advertising credibility can be defined as “consumers’ perception of the truthfulness and believability of advertising in general” [48] or “predictability and fulfillment of implicit and explicit requirements of an agreement” [5]. Credibility of an ad is influenced by different factors, especially by the company’s credibility and the bearer of the message [49]. But it is also influenced by the advertising medium. For example, Marshall and WoonBong [47] found out that a message on the Internet achieves less credibility than a printed message unless the message is communicated by a strong brand. There is no empirical evidence on the overall credibility of messages transferred to mobile devices and their influencing factors. Credibility of a mobile advertising message has a positive influence on the perceived advertising value of the consumer [37]. Credibility, which is based on the extent to which consumers believe that the marketer has the expertise, and honesty to perform a transaction effectively and reliably, is the base of consumer trust [50]. Building customer trust is a complex process that involves technology and business practices, but it is crucial for the growth and success of mobile commerce [26]. Since communication with consumers via their mobile devices is a very young phenomenon, marketers are requested to build and breed trust. It is therefore advisable to build awareness via other media as well [12]. Viral marketing, or word-of-mouth [51] defined as an advertising message is spread indirectly by consumers among other consumers, not by the advertiser or an agency. Viral marketing is very beneficial for the advertiser, as the customer forwarding the ad becomes the sender of the message and therefore the message gains in credibility. In addition, it is assumed that ads received from relatives rather than marketers have a higher credibility. 4.3 Customization To communicate effectively, marketers need to understand the critical elements underlying the advertising. Various studies have found that customization [52] is the key elements of successful services, especially advertising [53]. Customization in general means understanding different kinds of individual preferences, needs, mindsets, lifestyles, and cultural as well as geographical differences, to build customer loyalty and meaningful one-to-one relationship [54]. In other words, customization is about mapping and satisfying of customer’s goal in specific context with a business’s goal in its respective context [54]. Mobile advertising provides potential for customization, because mobile devices usually carry the user’s assigned identity [55] and also can utilize time, activity and location awareness as customization variables. Similar to traditional media, a customized mobile advertising campaign relies upon databases with enough active and potential clients to reach the target group profitably. Mobile Marketers can customize the mobile messages based on the consumers profile, local time, location, and preferences [1]. The aspect of customization turns mobile advertising into a very important mobile commerce application, since it allows the usage of demographic information collected by wireless service providers and information on the current location of a mobile user. Thus, advertising can be carried out very precisely and with a clear focus on the target group [56]. There is an urgent need for marketing techniques based on knowledge of customer profiles, history, and their needs to allow that the specific situation of a user to be considered before interaction with ad [57]. As result, consumers increasingly expect tailored and location-based services, thereby underlining the importance of customized mobile marketing [58]. Properly applied, location-based services with customizing messages can create or reinforce virtual communities [59]. 5 5.1 Device Interface Despite many other limitations of mobile devices, a good and suitable user interface is usually one of the main criteria that determine how well an application is received by its users. Mobile terminals have a very limited user interface: the display; which does not allow presenting substantial graphic elements or significant amounts of text, and lack a full keyboard (for most mobile devices) [60], which makes it difficult for users to enter a lot of data [61]. Since the user interface is often the most critical part of mobile advertising applications, it must be designed to support the limited attention of its user, who may be distracted by other events, people or objects [62]. There are also some differences between different mobile devices, such as display format and color display, that cause limited scope of design. Unless the message is tailored to the terminal, the receiver will face problems in receiving and understanding the message. The above mentioned issues seem to be the most difficult obstacles to overcome when applying advertising to mobile devices. Smart phones and wireless PDAs are better suited for mobile advertising purposes as they have larger screens, higher storage capacity and many have touch screens or keyboards. Smart phones and wireless PDAs will, however, still have more complicated user interfaces, because of the many features that are integrated into them [63]. In any event, if marketers want to use efficiently the communication channels that mobile media provide, they need to understand how mobile consumers perceive and evaluate mobile devices as a source of advertising. For a long period of time it has been clear that perceptions of the advertising medium affect attitudes toward individual advertising [36]. A poor user experience in accessing content discourages both consumers and operators with the effect of increasing the value proposition of converged devices [64]. A consistent user interface will shorten learning curves and increase demand for multiple services. 5.2 Interactivity There is little agreement on the definition of interactivity, as it is a multidimensional and complex concept [65]. However, while practitioners and academics would agree that the true value of electronic media lies in its interactivity, the way to proceed to make this reality is much more ambiguous [70]. Thus, the concept of a completely interactive marketing approach is more of a challenging idea than a practiced reality [66]. Interactive marketing is the iterative process taken by a firm to uncover, meet, modify and satisfy customer’s needs and desires [67]. Interactive marketing can also be defined as an approach to use captured customer data to create messages that can affect the behavior of at least one customer [68]. At the device level, interactivity is generated through facilitation of one-way and two-way communication [69]. Based on the above definitions, an electronic interactive media can be defined as an electronic medium that has the capability to establish twoway communication system between buyers and sellers [70]. So far, most companies have failed to take the advantage of the full potential of interactive marketing [71], in particular, mobile advertising [72]. Challenges for having full interactive mobile advertising are creation of interactive messages and also having devices which facilitate and enable such interaction. 5.3 Intelligence Mobile technology provides greater flexibility in communication, collaboration, and information sharing [73]. Communication through the mobile medium has several limitations, such as limited bandwidth, device diversity, lack of standardization, and heterogeneous screen sizes and displays, which make certain fonts and picture formats, look awkward [53]. Moreover, communication through the mobile medium is often considered more complex than through other media since the content has to be optimized for a numerous of different devices [74]. Advances in mobile technology will enhance communication through the mobile medium step by step, from basic SMS messaging to a more intelligent means of communication, such as MMS and Java-based applications, enabling previously unfeasibly richer forms [75]. Intelligent devices are able to collect, processes, integrate, analysis, evaluate, and interpret available information to facilitate certain services. Third-generation mobile technology and devices enables services with ability to transfer simultaneously both voice data and non-voice data. Mobile advertising will be a more attractive marketing medium for both advertisers and consumers by developing technology, such as intelligent properties at the handsets, higher connection speed, and more accurate location awareness [14]. In addition, strong investments by the software industry to lay the foundation for Web services in mobile environment should fuel the diffusion of mobile technology [76]. Converged devices combine more than one form of wireless communication. Initially this was limited to combinations of mobile technology, such as GSM, and CDMA, to allow for roaming. Today there are an increasing number of handsets with features such as WLAN, EDGE, WCDMA and so on. This multi-band and multi-mode capability can enable their use almost anywhere in the world. While initially these devices had lower data capabilities than the business segment, this is not the case for higher tier devices. 6 6.1 Media Players To analyze the mobile advertising market, it is necessary to understand who the key players are. The mobile advertising industry is about; creating advertising campaign, interaction with mobile advertising value chain players, producing messages by mobile advertising specific technology and delivering to the end users via mobile channel. At the moment mobile advertising value chain is fragmented. The emerging industry neither converged on the form of the value chain nor generated a reference business model that is sustainable. As the convergence continues, the mobile ecosystem keeps shifting. Currently, the main players in the mobile advertising system are the 1) advertisers, 2) the advertising companies, 3) the media owners, 4) the traditional advertising agencies, 5) the network operators/carriers, 6) the technology providers and 7) \the customers [20]. The advertisers are one of the most important players in this system. For an advertiser, mobile provides supreme reach and a reliable measurement tool. Advertisers are using the same principle for the mobile medium, as they have used for evaluating other channels; purity, frequency, performance and advertising inventory. Media owners play an important role in this system by owning the databases of permission-based numbers, which is a prerequisite for delivering advertising. The network operators have an important role in the system by controlling the distribution channel. Carrier / network operators have expertise and knowledge of service delivery. They control the distribution channel and location-based services by allowing for message delivery and receipt. Advertising companies should partner with network operators to deliver effective advertising to their customers. Modern and innovate technology provides glue to the system. The advertising technology must be seamlessly integrated into the telecommunications ecosystem. It is valuable to understand that customer acceptance is the main factor that defines the future of advertising. Without a user-benefit driven business model, advertising will not survive. 6.2 Process Advertising experts see mobile advertising as a fourstage process [77]: deciding on the campaign strategy, designing based on brand, accessing data to find targeted customers, and making the message interactive, informative and entertaining. Assael [78] describes that advertising procedure involves, essentially, four core segments: the brand’s overall marketing strategy, the ad itself, the medium through which the stimuli are delivered, and the prospect who receives the communication message. Mobile ad should be able to provide relevant information and rewards, be delivered by trusted organization, and also give the viewer control over the message. A determinant for the success of the mobile advertising campaign [79], as a form of permission based marketing, is adequate market research resources. Agencies should be competent in creating opt-in lists through traditional marketing media, such as websites, television, or flyers. The advertiser must deliver a consistent message for an identified consumer, based on the information about consumer needs. Subsequently, agencies need to create meaningful opportunities for consumers to interact with advertisers with significant incentives [80]. In case of low response rates, contingency plans should permit the modification of the campaign strategy by employing alternative types of campaigns and service modules. Since a reputable brand will probably initiate more responses and overcome the clutter created from competitive mobile advertising, the advertised brand is the important factor for the effectiveness of the campaign. 6.3 Policies Norris [81] has collected ten legal considerations for today’s mobile markers; 1) data protection, 2) unsolicited commercial communication, 3) location data, 4) online contracting, 5) information requirements, 6) distance selling, 7) industry code, 8) contractual commitments, 9) specific activities, market or products, and 10) roaming and crossborder risk. As mobile phones cannot distinguish between spam and genuine communication automatically, unsolicited messages, commonly known as spam [82], overwhelm user acceptance. Unwanted messages are illegal in some countries and annoy consumers regardless of the medium. A list of critical factors that helps marketers to distance themselves from spam, collected by Fuller [11], includes: frequency, relevance, control, confidentiality and unsolicited. The Mobile Marketing Association [21] has also developed a code of conduct for the players in the mobile advertising industry that regulates spam. The code of conduct includes six principles which the Mobile Marketing Association, has labeled as the six C’s of privacy: choice, control, constraint, customization, consideration, and confidentiality. An extensive survey of mobile advertising in the UK [12] reveals that consumers fear that spamming might occur during mobile advertising, thus, they prefer to give their permission only to organizations they trust. Corporate policies must consider legalities such as electronic signatures, electronic contracts, and conditions for delivering mobile ads. The European Union [83] approved a new directive (Directive/58/EC) in 2002 for establishing standards for the processing of personal data and the protection of privacy in electronic communications sector. Mobile advertising in the EU area is regulated by law and involves asking end users’ permission to send unsolicited marketing messages via all electronic communications for marketing purposes. This is called opt-in mobile advertising. The main exception to this directive is that within the context of an existing customer relationship, marketers can use electronic contact details to promote similar products or services under an opt-out rule, which means that the user receives various kinds of communications but should have the option to immediately and easily cancel the use of his or her address in marketing purposes. Furthermore, the directive adopts an opt-in rule for the use of traffic data. Finally, the legislation sets rules for the collection and procession of location-based data. Location data cannot be collected or used without user’s explicit prior permission. Regulatory guarantees privacy for customer in market practices. New regulations in the United States that allow people to keep their phone numbers when switching cellular carriers [84] may reinforce fears of unwanted messages and misuse of personal data, thereby keeping consumers from registering for SMS based information services. 7 Conclusion & Conceptual Model Mobile marketing adoption and acceptance is on the rise [85], but without a clear understanding of the elements effecting mobile advertising, marketers will have little ability to constantly generate positive returns from their programs. Previous studies [86] identified the influential variables affecting consumer behavior. Based on author’s review the main factors which are affecting consumer behavior are 1) Privacy; the degree to which personal information is not known by others, 2) Purpose; what type of purpose the receiver is trying to satisfy by using a mobile device, and 3) Performance; respond and attitude towards mobile advertising. According to Kotler [16], formulating the message is critical in mobile advertising and will require solving four problems: what to say (message content), how to say it logically (message structure), how to say it symbolically (message format), and who should say it (message source). Based on the review, the following factors are critical regarding messaging in mobile advertising; 1) Content; ‘relevant content is king’ in mobile advertising, content being informative and entertaining, 2) Credibility; consumer’s perception of the truthfulness and believability of advertising in general, 3) Customization; mapping and satisfying of customer’s goal in specific context with a business’s goal in its respective context. Mobile handsets are seen as very powerful communication devices by advertisers, due to the personal, immediate, and interactive nature of them [87]. The mobile device may be an attention getter, but an attention getting device that is unrelated to the message will not attract consumers interested in the message or the product [88]. The device should have the following characteristics to maximize user experience in mobile advertising: 1) Interface; a good and suitable user interface maximizes user experience, 2) Interactivity; enable interactive solution for communication between mobile marketer and consumer, 3) Intelligent; include latest telecommunications platforms and also location based technologies. For mobile advertising to succeed, business models that can capture the synergy of two existing industries, advertising and telecommunications, must be conceived. In any future sustainable business model, all players will have to reach a consensus on the structure of the system and on the importance of each player in that system [20]. The factors affecting the mobile advertising media are: 1) Players; key players and their roles, 2) Process; relationship and cross media working in mobile advertising value chain, 3) Policies; legislation and regulation which place sets of rules for the collection and procession of location-based data. To summarize, the above mentioned information leads to the development of a hypothetical model of factors effecting mobile advertising. On the basis of the literature, author [1] [2] [3] [4] Balasubramanian S., Peterson R. A. and Jarvenpaa, S. L. "Exploring the Implications of MCommerce for Markets and Marketing", Journal of the Academy of Marketing Science 30(4), 2002, pp. 348 - 361. Stewart D. W. and Pavlou, P. A. "From Consumer Response to Active Consumer: Measuring the Effectiveness of Interactive Media", Journal of the Academy of Marketing Science 30(4), 2002, pp. 376 - 396. Kotler P., Wong V., Saundersa J., and Armstrong G., “Principles of Marketing”, (Fourth European Edition), Pearson Education Limited. 2005. Godin S., “Permission Marketing - Turning Strangers into Friends, and Friends into Customers”, New York: Simon & Schuster. 1999. proposed four main categories and three subcategories for each category. Figure 1 illustrates the hypothetical model of factors effecting mobile advertising model. The main objective of this article was to explore mobile advertising’s challenges and future directions by evaluating factors that seem to influence mobile advertising. The theoretical contribution of this article lies in outlining the key factors of mobile advertising. Author hopes that this article opens new dialogues on multiple unexamined issues concerning mobile advertising industry. Figure 1: Hypothetical model of factors effecting mobile advertising 8 Acknowledgment The author appreciates the valuable comments and suggestions of Mahsa Asil. 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