Download Piercing the Fog of Mobile Advertising

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. I also gratefully acknowledge the
support of my colleagues at work.
9
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