Smart Marketing in Smartphones: A Quantitative Study on Mobile Advertising Effectiveness

Abstract: The rise of smartphones is creating smarter consumers - introducing opportunities for smarter marketing. Mobile media investments in Sweden skyrocketed by 23.3% from 2009 to 2010, exhibiting the strongest growth across all media investments. The main purpose of this thesis is to investigate which type of mobile advertising format is most effective - mobile coupons or mobile banners - and whether or not location based advertising can increase the effectiveness, while factoring in different levels of product involvement. The results from the experimental study with 365 participants from Sweden suggest that mobile coupons can strengthen purchase intentions and word-of-mouth intentions more effectively than mobile banners. Location based services in mobile advertising can also increase purchase intentions. The effectiveness was moderated by stronger associations of innovativeness and perceived advertising value.