Evaluating the Effect of Mobile Display Advertising - Guidelines on how to Advertise in the Mobile Channel

Abstract: Abstract Title Evaluating the Effect of Mobile Display Advertising - Guidelines on How to Advertise in the Mobile Channel Authors Anton Olivensjö Gustav Sundberg Supervisors Charlotta Johnsson, Associate Professor, Department of Automatic Control, Faculty of Engineering, Lund University Carl-Henric Nilsson, Associate Professor, Department of Business Administration, School of Economics and Management, Lund University Staffan Engström, Head of Mobile, Schibsted Sverige AB, Sales and Inventory, Stockholm Issue of Study The mobile is a fairly new advertising channel, in which the time spent by consumers has rapidly increased. Advertising spendings are however not aligned, as companies do not fully understand the channel. The business is characterised by uncertainties on how to advertise and companies are unsure of what metrics to use when evaluating the campaigns. Purpose The purpose is to identify how product category, content type, frequency and engagement affect the consumer’s awareness, preference and purchase intention, through campaigns on a mobile website. Further, the purpose is to investigate if there is a relation between the established click-through rate and the consumer’s awareness, preference and purchase intention. Method A number of campaigns have been launched on one of Sweden’s most visited mobile websites. The marketed products have been categorised as either fast moving consumer goods or durable goods, and each product has been advertised through a static banner, a rich media solution and a video. Targeted questionnaires have been sent out to individuals who have been exposed to the campaigns, and to individuals who have not been exposed to the campaigns. Data from the two groups respectively has been analysed, in order to evaluate the effect from the advertisement. Conclusions With a total of 35,982 completed questionnaires, the study’s findings suggest that fast moving consumer goods are more suitable to advertise in the mobile channel, if the direct marketing objective is to drive preference and purchase intention. Durable goods increase awareness more than fast moving consumer goods. Regarding the content type, static banner has the greatest effect on preference and purchase intention, while video increases awareness more than static banner and rich media. There is a positive relationship between the number of exposures and a consumer’s perception of a brand. The study’s findings suggest that people who have engaged with a rich media solution or a video show a greater increase in awareness, preference and purchase intention. Last, the Click-Through Rate is not positively correlated with higher levels of awareness, preference and purchase intention. Key Words Campaign Effect, Click-Through Rate (CTR), Engagement, Frequency, Mobile Advertising, Mobile Campaigns, Rich Media, Static Banner, Video