Monday, March 26, 2012

BART Yakov, STEPHEN Andrew T., SARVARY Miklos
Determinants of Mobile Advertising Effectiveness: A Field Experiment
INSEADWorking Paper 2012/38/MKT

Mobile advertising is one of the fastest growing advertising formats, with U.S. spending in 2011 estimated at $1.2 billion and global spending forecasted to reach over $20 billion by 2015. Interestingly, despite the rapid penetration of sophisticated handsets a growing proportion of mobile advertising spending consists of display advertising, which is known for its limited capacity for the transfer of information. This paper examines why and under what conditions such “low-fidelity” mobile display advertising is effective in increasing consumers’ purchase intentions. We draw on consumer psychology to identify these conditions and verify our hypotheses in a field experiment involving 54 national mobile display advertising campaigns that ran between 2007 and 2010 and involved 27,753 participants. Our results indicate that low-fidelity mobile advertising campaigns are effective when they are for products that trigger further thought and consideration, which includes campaigns for high (versus low) involvement products, and for products that are seen as more utilitarian (versus more hedonic).