Tuesday, June 26, 2012

BART Yakov, STEPHEN Andrew T., SARVARY Miklos
A Field Study of the Determinants of Mobile Advertising Effectiveness 
INSEAD Working Paper 2012/63/MKT revised version of 2012/38/MKT

Mobile advertising is one of the fastest-growing advertising formats. In 2011, U.S. advertisers spent approximately $1.2 billion on this form of advertising, and by 2015 global mobile advertising spending is expected to exceed $20 billion. Interestingly, despite the rapid penetration of sophisticated handsets such as smart phones, 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 mobile display advertising is effective in increasing consumers’ purchase intentions. We draw on established theories in consumer psychology to identify these conditions and verify our hypotheses in a series of advertising campaign field tests involving 54 U.S. mobile displayadvertising campaigns that ran between 2007 and 2010 and involved 27,753 consumers. Our results indicate that mobile display advertising campaigns are effective when they are for products that tend to trigger deliberate thought and consideration, which includes campaigns for higher (versus lower) involvement products, and for products that are seen as more utilitarian (versus more hedonic).