Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Smarter Ads for Smartphones: When They Do and Don't Work

16.07.2014

Study demystifies effectiveness of smartphone ads; offers marketers tips

Brands spent $8.4 billion on mobile advertising in 2013, and that number is expected to quadruple to $36 billion by 2017, according to eMarketer. But, do mobile display ads—those tiny banner ads that pop up in your smartphone’s web browser—actually work? Researchers at Columbia Business School have found that, despite their size, mobile ads can have a big effect on consumers who are in the market for certain types of products.


Research Results Illustrated in Graphic

“Digital advertising in mobile channels is experiencing explosive growth,” said Miklos Sarvary, co–director of the Media Program at Columbia Business School and co–author of the new study. “But many marketers are still using a ‘spray and pray’ approach to digital ads. In other words, they’re just putting mobile ads out there and hoping that they work. Limitations in tracking smartphone ads have always made it difficult for marketers to track and optimize their return on investment, but we’ve unlocked a part of that mystery now, which means they’ll know how to best to spend their dollars.”

The research, recently published in the Journal of Marketing Research, is titled “Which Products Are Best Suited to Mobile Advertising? A Field Study of Mobile Display Advertising Effects on Consumer Attitudes and Intentions,” and co–authored by Andrew T. Stephen, assistant professor of business administration at Columbia Business School and Yakov Bart, assistant professor of marketing at INSEAD.

Researchers found the below information:

  • Mobile ads do work for products that have a practical and important use, like a lawn mower or a washing machine
  • Mobile ads do work for high–involvement products (a lot of time, thought and energy is placed into the decision, like a family car).
  • Mobile ads don’t work for just–for–pleasure items, like fancy watches
  • Mobile items don’t work for low–involvement purchases like movie tickets or toothbrush (ones that pose a low risk to the buyer)

The Research

Sarvary and his fellow researchers looked specifically at the effects of mobile display ads (MDAs) viewed on a variety of mobile devices, including smartphones.

The researchers studied survey data from nearly 40,000 American consumers about their reactions to MDAs. The researchers focused on mobile display ads because, unlike text message ads or mobile video ads, the popularity of this mobile marketing tool is on the rise.

Over 50 products were represented in the ads, from consumer packaged goods and cars to financial services. After viewing an ad for one of these products on a mobile device, participants were asked to complete a survey that assessed their attitude toward and intention of buying the product.

To determine what kind of products are best–served by mobile display ads, the researchers classified each product as either “utilitarian” or “hedonic.” In other words, does the product serve a useful purpose, like a washing machine or a lawnmower, or is it typically bought just for pleasure, like movie tickets or a fancy new watch?

Products were also classified as being either high or low involvement. Higher involvement products are those that people think a lot about before purchasing. For example, people tend to think quite a bit before purchasing a new minivan, but they don’t think too hard before purchasing a low–involvement product, like a toothbrush.

The Results

What accounts for the results in the above? Sarvary believes it has something to do with psychology. Before making a big purchase, Sarvary explained, people tend to do a lot of rational thinking, comparing one product to another and weighing their options. And, this rational thinking is magnified even more if the product being purchased isn’t just a new big–screen TV, but one that serves a more useful purpose, like a new family car. 

It might take you weeks or months before deciding to bite the bullet and buy the car you’ve been thinking so much about, but as Sarvary explained, “During that time, you’re debating with yourself about which model of car you should buy. If a display ad for that car shows up on your smartphone, even if it’s tiny and doesn’t provide you with new information, it’ll reinforce what you already know about the product.”

“The mobile ad’s strength,” Sarvary went on to say, “is not adding new data, but reminding you of what you already know and making you think about the product again.”

These findings carry huge implications for marketers who are planning a multi–channel campaign for a product, Sarvary said. Rather than sticking with a “spray and pray” approach, they might find it’s more effective to launch mobile display ads after a product has been advertised in other media.

“That way,” Sarvary said, “The banner ad seals the deal.”

To learn more about cutting–edge research being performed by Columbia Business School faculty members, please visit www.gsb.columbia.edu.  

###

About Columbia Business School

Columbia Business School is the only world–class, Ivy League business school that delivers a learning experience where academic excellence meets with real–time exposure to the pulse of global business. Led by Dean Glenn Hubbard, the School’s transformative curriculum bridges academic theory with unparalleled exposure to real–world business practice, equipping students with an entrepreneurial mindset that allows them to recognize, capture, and create opportunity in any business environment. The thought leadership of the School’s faculty and staff, combined with the accomplishments of its distinguished alumni and position in the center of global business, means that the School’s efforts have an immediate, measurable impact on the forces shaping business every day. To learn more about Columbia Business School’s position at the very center of business, please visit www.gsb.columbia.edu.

Karen Paff | Eurek Alert!
Further information:
http://www8.gsb.columbia.edu/newsroom/newsn/3018/smarter-ads-for-smartphones-when-they-do-and-dont-work#.U8ZsDWGKDct

More articles from Communications Media:

nachricht New Technologies for A/V Analysis and Search
13.04.2017 | Fraunhofer-Institut für Digitale Medientechnologie IDMT

nachricht On patrol in social networks
25.01.2017 | Fraunhofer-Institut für Arbeitswirtschaft und Organisation IAO

All articles from Communications Media >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Can the immune system be boosted against Staphylococcus aureus by delivery of messenger RNA?

Staphylococcus aureus is a feared pathogen (MRSA, multi-resistant S. aureus) due to frequent resistances against many antibiotics, especially in hospital infections. Researchers at the Paul-Ehrlich-Institut have identified immunological processes that prevent a successful immune response directed against the pathogenic agent. The delivery of bacterial proteins with RNA adjuvant or messenger RNA (mRNA) into immune cells allows the re-direction of the immune response towards an active defense against S. aureus. This could be of significant importance for the development of an effective vaccine. PLOS Pathogens has published these research results online on 25 May 2017.

Staphylococcus aureus (S. aureus) is a bacterium that colonizes by far more than half of the skin and the mucosa of adults, usually without causing infections....

Im Focus: A quantum walk of photons

Physicists from the University of Würzburg are capable of generating identical looking single light particles at the push of a button. Two new studies now demonstrate the potential this method holds.

The quantum computer has fuelled the imagination of scientists for decades: It is based on fundamentally different phenomena than a conventional computer....

Im Focus: Turmoil in sluggish electrons’ existence

An international team of physicists has monitored the scattering behaviour of electrons in a non-conducting material in real-time. Their insights could be beneficial for radiotherapy.

We can refer to electrons in non-conducting materials as ‘sluggish’. Typically, they remain fixed in a location, deep inside an atomic composite. It is hence...

Im Focus: Wafer-thin Magnetic Materials Developed for Future Quantum Technologies

Two-dimensional magnetic structures are regarded as a promising material for new types of data storage, since the magnetic properties of individual molecular building blocks can be investigated and modified. For the first time, researchers have now produced a wafer-thin ferrimagnet, in which molecules with different magnetic centers arrange themselves on a gold surface to form a checkerboard pattern. Scientists at the Swiss Nanoscience Institute at the University of Basel and the Paul Scherrer Institute published their findings in the journal Nature Communications.

Ferrimagnets are composed of two centers which are magnetized at different strengths and point in opposing directions. Two-dimensional, quasi-flat ferrimagnets...

Im Focus: World's thinnest hologram paves path to new 3-D world

Nano-hologram paves way for integration of 3-D holography into everyday electronics

An Australian-Chinese research team has created the world's thinnest hologram, paving the way towards the integration of 3D holography into everyday...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Marine Conservation: IASS Contributes to UN Ocean Conference in New York on 5-9 June

24.05.2017 | Event News

AWK Aachen Machine Tool Colloquium 2017: Internet of Production for Agile Enterprises

23.05.2017 | Event News

Dortmund MST Conference presents Individualized Healthcare Solutions with micro and nanotechnology

22.05.2017 | Event News

 
Latest News

How herpesviruses win the footrace against the immune system

26.05.2017 | Life Sciences

Water forms 'spine of hydration' around DNA, group finds

26.05.2017 | Life Sciences

First Juno science results supported by University of Leicester's Jupiter 'forecast'

26.05.2017 | Physics and Astronomy

VideoLinks
B2B-VideoLinks
More VideoLinks >>>