Neven Bosilj * , Goran Bubaš , Neven Vrček *

INFuture 2009INFuture 2009 11Bosilj, Bubaš, VrčekBosilj, Bubaš, Vrček11

Neven BosiljNeven Bosilj**, Goran Bubaš, Goran Bubaš****, Neven Vrček, Neven Vrček******

User Experience with Advertising over User Experience with Advertising over Mobile Phone: A Pilot StudyMobile Phone: A Pilot Study

**T-mobile, CroatiaT-mobile, Croatia

****University of Zagreb, Faculty of Organisation and University of Zagreb, Faculty of Organisation and InformaticsInformatics

INFuture 2009INFuture 2009 22Bosilj, Bubaš, VrčekBosilj, Bubaš, Vrček

Mobile phone and SMS Mobile phone and SMS usersusers

In comparison to land-line telephones, television, radio, In comparison to land-line telephones, television, radio, and most other electronic communication media, mobile and most other electronic communication media, mobile phones are phones are much more personal devicesmuch more personal devices..

A mobile phone usually only has a single user and this A mobile phone usually only has a single user and this attribute makes mobile phones suitable for attribute makes mobile phones suitable for high-precision high-precision targetingtargeting in marketing campaigns in marketing campaigns..

2.7 billion users2.7 billion users of mobile phones in 2007 (in comparison of mobile phones in 2007 (in comparison to 1.1 billion users of the Internet).to 1.1 billion users of the Internet).

4 billion subscriptions for mobile devices in 2009 and 2.7 4 billion subscriptions for mobile devices in 2009 and 2.7 billion active SMS users (Ahonen, 2009).billion active SMS users (Ahonen, 2009).

Mobile message services (SMS & MMS):Mobile message services (SMS & MMS):

SMS - text of 168characters

Availabilityand simplicity

MMS - pictures,audio or video


Issues in mobile Issues in mobile marketingmarketing

EE-mail message is opened, on average, within 24 hours-mail message is opened, on average, within 24 hours and a and a reply occurs within 48 hours.reply occurs within 48 hours.

SMS messages are read within 15 minutes of their arrival and the SMS messages are read within 15 minutes of their arrival and the average response time amounts to less than 60 minutesaverage response time amounts to less than 60 minutes..

AAs much as 65% of e-mails are spams much as 65% of e-mails are spam; ; the percentage of spam the percentage of spam among SMS messages is less than 10%.among SMS messages is less than 10%.

Some important factors to consider:Some important factors to consider:

Customization(user profiles)

Privacy – mSpam(PBMS)

Adoption problems(users, advertizers)

Customerization(mCRM & alike)

Viral marketing

Location-basedmobile marketing


Mobile marketing Mobile marketing campaignscampaigns

Interactivity of push, pull and dialogue campaigns (Jelassi & Interactivity of push, pull and dialogue campaigns (Jelassi & Enders, 2004).Enders, 2004).

Pushcampaigns

Dialogue campaigns

Traditional (non-interactive)

campaigns – TV, radio, print

Pullcampaigns

Low High Consumer activity

High

Advertiser activity

Low


Technological Technological problemsproblems

Key points in creation of mCRMKey points in creation of mCRM (Sinisalo et al., (Sinisalo et al., 2006):2006):

Technologies

Server

Price formation

Gateway

Number

Campaign logic

Marketing

Permissiondatabase

Mediamix


Research Research motivationmotivation

Main goals and problem:Main goals and problem:

IInvestigate how potential clients would react to a mobile nvestigate how potential clients would react to a mobile advertising campaign.advertising campaign.

Conduct aConduct a pilot study on a small group of students who pilot study on a small group of students who would receive 1-4 marketing SMS messages per day for a would receive 1-4 marketing SMS messages per day for a period of two weeks and evaluate the usefulness of each of period of two weeks and evaluate the usefulness of each of the incoming messages.the incoming messages.

DDetermine the potential acceptance rate of SMS marketing.etermine the potential acceptance rate of SMS marketing.

Collect qCollect quantitative and qualitative data on students’ uantitative and qualitative data on students’ responses to mobile marketing messages.responses to mobile marketing messages.

DetermineDetermine the factors which contribute to the acceptance of the factors which contribute to the acceptance of SMS marketingSMS marketing..


HypothesesHypotheses

H1: Students in our convenience sample will on H1: Students in our convenience sample will on average demonstrate a high level of average demonstrate a high level of acceptance of SMS marketing.acceptance of SMS marketing.

H2: The level of engagement of students in our H2: The level of engagement of students in our convenience sample during the marketing convenience sample during the marketing campaign will not decrease over time.campaign will not decrease over time.

H3: Message attributes (related to brand, H3: Message attributes (related to brand, information value, entertainment, information value, entertainment, personalization, perceived usefulness) have an personalization, perceived usefulness) have an influence on the acceptance of mobile influence on the acceptance of mobile marketing.marketing.


MethodologyMethodologySubjects, instruments and procedure:Subjects, instruments and procedure:

CConvenience sampleonvenience sample, , 62 students of the fourth year of study of informatics62 students of the fourth year of study of informatics ..

The subjects were aged between 21 and 24, 66% of them were male and 34% female. The subjects were aged between 21 and 24, 66% of them were male and 34% female.

They They were given a written statement regarding the privacy and confidentiality of were given a written statement regarding the privacy and confidentiality of collected collected datadata..

A sA survey urvey was used was used regarding the actual use of mobile technology (phone, Internet regarding the actual use of mobile technology (phone, Internet etc.). etc.).

SSelf-assessment scales elf-assessment scales were also used were also used that measured various constructs (user that measured various constructs (user attributes)attributes): : attitude (Shimp and Kavas, 1984; Pollay and Mittal, 1993)attitude (Shimp and Kavas, 1984; Pollay and Mittal, 1993) ;; perceived perceived usefulness (Venkatesh et al., 2003)usefulness (Venkatesh et al., 2003);; message attributes (brand, information value, message attributes (brand, information value, entertainment, personalization)entertainment, personalization);; use of services related to mobile advertising (Merisavo use of services related to mobile advertising (Merisavo et al., 2007).et al., 2007).

The The mobile marketing campaign mobile marketing campaign lasted two weeks during which lasted two weeks during which the subjects received the subjects received 2-4 2-4 SMS messages SMS messages per day per day that were related to their college, program of the local that were related to their college, program of the local cinema and theatre, city swimming pool, student restaurants and town bars/pubs, or cinema and theatre, city swimming pool, student restaurants and town bars/pubs, or included diverse advertisements of products and services.included diverse advertisements of products and services. (10 kn per 120 SMS). (10 kn per 120 SMS).

The subjects were asked to respond to each of the received SMS messages regarding The subjects were asked to respond to each of the received SMS messages regarding its usefulness on a 1-5 Likert-type scale. After a week of participation in the mobile its usefulness on a 1-5 Likert-type scale. After a week of participation in the mobile marketing campaign they also completed a brief survey regarding the received marketing campaign they also completed a brief survey regarding the received messages and their effects.messages and their effects.


Results /1Results /1Percentage of subjects who responded with an evaluation of Percentage of subjects who responded with an evaluation of the received marketing SMS during the first and second week the received marketing SMS during the first and second week of the campaignof the campaign..

40%

45%

50%

55%

60%

65%

70%

75%

80%

85%

90%

Sequence of SMS messages

Per

cen

tag

e o

f re

spo

nse

s

First week Second week


Results /1Results /1

H2: The level of engagement of students in H2: The level of engagement of students in our convenience sample during the our convenience sample during the marketing campaign will not decrease over marketing campaign will not decrease over time.time.

NOT CONFIRMED!NOT CONFIRMED!


Results 2Results 2Acceptance of mobile marketingAcceptance of mobile marketing

After a week of exposure to the mobile marketing campaign the subjects After a week of exposure to the mobile marketing campaign the subjects in our convenience sample responded to the survey question “Mobile in our convenience sample responded to the survey question “Mobile advertising is a useful concept which I plan to use in the future”advertising is a useful concept which I plan to use in the future”..AAn average response n average response was was 4.14 on a Likert-type scale ranging from “1 – I 4.14 on a Likert-type scale ranging from “1 – I do not agree at all” to “5 – I completely agree”.do not agree at all” to “5 – I completely agree”.MMost of the SMS’s (85% of messages) during the first week of the mobile ost of the SMS’s (85% of messages) during the first week of the mobile marketing campaign were highly personalized and received an average marketing campaign were highly personalized and received an average rating for usefulness of 3.0 or above from the subjects in the study.rating for usefulness of 3.0 or above from the subjects in the study.

Typical positive verbal responses of subjectsTypical positive verbal responses of subjects

“ “Many messages were very useful to me (menu at the student Many messages were very useful to me (menu at the student restaurant, cinema, discount at the city swimming pool, college restaurant, cinema, discount at the city swimming pool, college information) and I will miss them when the campaign is over.”information) and I will miss them when the campaign is over.”““Interesting, I approve of it and support this kind of advertising as long as Interesting, I approve of it and support this kind of advertising as long as the user is capable of choosing and controlling the content that he/she the user is capable of choosing and controlling the content that he/she receives and its amount.”receives and its amount.”““I support this and hope that it will benefit the students”.I support this and hope that it will benefit the students”.



H1: Students in our convenience sample will H1: Students in our convenience sample will on average demonstrate a high level of on average demonstrate a high level of acceptance of SMS marketing.acceptance of SMS marketing.

CONFIRMED!CONFIRMED!



Correlation of acceptance of mobile marketing with Correlation of acceptance of mobile marketing with the constructs related to the attributes of mobile the constructs related to the attributes of mobile marketing messages and internal consistency of marketing messages and internal consistency of scales used to measure these constructs (N=62)scales used to measure these constructs (N=62)

MESSAGE RELATED

CONSTRUCTS

CORRELATION WITH ACCEPTANCE OF MOBILE

MARKETING

INTERNAL CONSISTENCY OF

SCALE (CRONBACH ALPHA)

Attractive brand in messages 0.47 0.90

Information value of messages 0.59 0.81

Entertainment value of

messages0.33 0.65

Personalization of message content 0.67 0.70



H3: Message attributes (related to brand, H3: Message attributes (related to brand, information value, entertainment, information value, entertainment, personalization, perceived usefulness) have personalization, perceived usefulness) have an influence on the acceptance of mobile an influence on the acceptance of mobile marketing.marketing.

CONFIRMED!CONFIRMED!


ConclusionConclusion

MMobile marketing could be accepted at least by a obile marketing could be accepted at least by a younger generation of computer literate mobile younger generation of computer literate mobile phone users.phone users.

Most of the subjects positively evaluated their Most of the subjects positively evaluated their experience with the mobile marketing campaign in experience with the mobile marketing campaign in our pilot study.our pilot study.

However, our findings also indicate that However, our findings also indicate that user/consumer interest in the participation in mobile user/consumer interest in the participation in mobile marketing campaigns may decrease over timemarketing campaigns may decrease over time..

MMobile advertising messages need to be personalized obile advertising messages need to be personalized and contain adequate information value to attract and contain adequate information value to attract attention, receive greater interest, and avoid being attention, receive greater interest, and avoid being perceived as spam.perceived as spam.

NNone of the participants indicated that they felt one of the participants indicated that they felt uncomfortable because of their participation in our uncomfortable because of their participation in our pilot studypilot study and t and the verbal content of their SMS he verbal content of their SMS responses to received mobile advertising messages responses to received mobile advertising messages was was predominantlypredominantly positive positive..


Thank you for your attention!Thank you for your attention!

[email protected]@foi.hr

[email protected]@t-mobile.hr

[email protected]@foi.hr

Documents

Neven Bosilj * , Goran Bubaš ** , Neven Vrček ***

Neven Bosilj * , Goran Bubaš , Neven Vrček *