How Mobile Advertising Works : The Role of Trust in Improving Attitudes and Recall
SHINTARO OKAZAKI
Universidad Aut6noma de Madrid
obarquitec@coac.net
AKIHIRO KATSUKURA
Dentsu Inc.
akihiro.katsukura@
dentsu.co.jp
MAMORU NISHIYAMA
Dentsu Inc.
m.nishiyama@dentsu.co.jp
How does trust affect consumer attitudes and recall in mobile advertising? This study explores this question by conducting a large-scale "pseudo" mobile advertising campaign in Japan . Two "real" brands (one durable and one nondurable good) of major Japanese manufacturers were used as study stimuli. Using a push messaging service, both a campaign message and a subsequent questionnaire for each brand were sent to 40,000 opt-i n mobile users . Five primary constructs were examined: brand trust, mobile advertising trust, attitude toward brand, attitude toward mobile advertising, and mobile campaign recall. Findings suggest that a mobile campaign 's
recall largely depends on perceptions of both the medium and the advertised content, and that the effects of mobile advertising trust on attitude toward mobile advertising were stronger than those of other relationships. The path from attitude toward brand to mobile campaign recall was notably and statistically stronger for the durable good sample than for the nondurable good sample. Only in the durable good sample is
attitude toward brand a mediating variable in linking attitude toward mobile advertising and mobile campaign recall. This study offers a basic but useful research framework for a mobile-based online survey.
R ESEARCHERS AND PRACTITIONE R S AGREE that the
most explosive growth in telecommunications has occurred in internet and mobile telephone ser vices (Lehr and McKnight, 2003). Combining these two technologies, the internet-enabled mobile de vice has become one of the most promising ad vertising media around (Okazaki, 2006). For example, SMS (short message service) direct mar keting is a popular campaign method worldwide, with consumer spending in the United Kingdom reaching 58 million messages per day in 2004 (Trappey and Woodside, 2005). The trend has mi grated to the United States as well. McDonald's conducted an SMS-TV direct marketing campaign in conjunction with a popular song contest pro gram, offering concert tickets and backstage passes. Coca-Cola executed a text message campaign for college students in which a number printed on a
DOl : 10.2501/50021849907070195
Diet Coke can could be used as an entry in the Coca-Cola Grand Sweepstakes Competiti on. Ac cording to Mullman (2006), as many as 81 percent of 18- to 21-year-o lds have mobile phones, and most of them are likely to participate in TV or radio polls, purchase ring tones, play games, and send text messages.
On the other hand, SMS is not used in Japan as widely as in Western markets. Instead, an email compatible version of mobile mail is commonly used in NTT DoCoMo's i-mode, w hich has been cited as "by far the most successf ul and most comprehensive example of m-commerce today" (Sadeh, 2002, p. 5). While widely used for deliv ering digital content such as ring-tones/songs, news, weather reports, travel and traffic reports, games, standby displays, and animated video, this service allows users to transmit email of up to
June 2001 JOURnAL OF ROUERTISinG RESEARCH 165
HOW MOBILE ADVERTISING WORKS
10,000 alphanumeric characters or 10,000 bytes (NTT DoCoMo , 2006). For promo tional campaigns, i-mode offers "Message F (Free)," which is a push-type service delivering advertising exclusively to opt-in users . Advertisements are delivered to a designated "Message F" inbox, and users are exempt from the normal packet trans mission charges. This Message F can be sent to specific regional, gender, or age groups, thus allowing firms to target mes sages to selected segments (D2 Commu nications, 2005). In addition, an image attachment service begun in July 2005 sup ports the transmission of images, logos, and other visual effects up to 8KB per message (192 X 192 pixels in JPEG or GIF). In 2006, major Japanese mobile car riers are beginning to launch mobile hand sets that can receive terrestrial digital broadcasting signals in addition to con ventional analog signals, thus enabling firms to take advantage of interactive pre sentations with static, animated, and/or broadcast images (NTT DoCoMo, 2005).
Hence, the use of SMS as a reference point for mobile advertising may no lon ger provide a realistic impression . How ever, there is little, if any, empirical evidence as to the question of how mobile advertising works in a more enhanced environment. Our primary objective here is to close this research gap through an experimental study of mobile advertising campaigns. The study consisted of trans mitting "pseudo" mobile advertisements of popular Japanese brands, one a dura ble good and the other a nondurable good, to opt-in users. The advertisements con tained both textual and visual parts, which is more consistent with currently prevail ing mobile technology that enables firms to use rich digital content rather than simple text-based messages. One week af ter sending the advertisements, we sent a structured questionnaire to the same users in an attempt to examine their level of
acceptance. The study set out to examine five primary constructs: trust toward the advertised brand, trust toward mobile ad vertising, attitude toward brand, attitude toward mobile advertising, and mobile campaign recall.
In what follows, we first critically re view the extant literature on mobile ad vertising research, then establish the theoretical framework of the study. On this base, research hypotheses are pro posed. Following a detailed explanation of the methodology, we present the study results and discuss the implications of the study while recognizing important limitations.
ADVANCES IN MOBILE ADVERTISING RESEARCH
One of the benefits of a mobile-based
campaign is its capacity to attract con sumer attention and increase consumer responses through a "one-to-one dia logue" with customers (Kavassalis et al., 2003). This matches the characteristics of the mobile phone : a highly portable com munication device with ubiquitous data transmission capability. In recent years, higher-capacity 3G technologies have re sponded to more specific information needs by offering always-on service with more interactive and location-ba ed appli cations (Perlado and Barwise, 2004). So far, however, with the exception of some Asia Pacific countries, SMS has been the most common platform for mobile adver tising (Kavassalis et a!., 2003) and there fore the most studied application. Table 1 summarizes the recent advances in mo bile advertising research .
In a pioneering study, Barwise and Strong (2002) conducted a trial of permission-based SMS message adver tising in the United Kingdom . On re cruitment, respondents were paid cash incentives and received more than 100 messages in th e six-week trial period. AI -
most all respondents were sati fi d r v ry atisfied. The study found that 8J perc nt read all messages, 63 p rcent r ponded or took action, and 17 p rcent forward >d at least one me sage. Surprisingly, as many as 84 percent of respondents wer likely to recommend the ervic to their friend , whereas only 7 perc nt wer lik ly t abandon the service.
That research was lat r corroborated by Rettie, Grandcolas, and D akins (2005), who conducted a study bas d n "r al" mobile adv rtising campaign that t ok place between October 2001 and January 2002. In total, th r searchers ondu t d 5,401 telephone intervi ws regarding 26 different campaigns and found that the overall acceptability of MS adv rti ing was 44 percent, with an average re pon rate of 25 p rcent-much higher than email marketing . Acceptability was also signifi cantly correlated with campaign interest, campaign relevance, and mon tary in en tives. Similarly, sporadic industry urvey report a rath r optimi tic blueprint. An experimental survey conducted by Eri s son indicates that 60 percent of on um ers liked r ceiving mobile adverti ing, while Quios found that th I v I of r g nition of mobile advertising was surpri - ingly high : 79 percent of parti ipant recalled 60 percent of the advertising (Barnes, 2002).
In contrast, a study conduct d by 'n ang, Ho, and Liang (2004) reveal le enthu siastic attitude toward mobile adv rti - ing among Taiwanese. Their tructural model included both utilitarian and x periential factors affecting on umers' attitude toward p rmission-ba sed SM ad vertising. It wa found that (1) c nsumer generally have negative attitud s toward mobile adverti ing unle they have been informed and have pr consent d (i.e., opted-in) to the adv rti m nt , and (2) there seems to b a dir ct and p itive relationship between consum r ' attitude
166 JOURnAL Of ADUEATISinG RESEARCH June 2001
HOW MOBILE ADVERTIS ING WORKS
TABLE 1
Prior Resea rch on Mobile Advertising
Sample Methodology
Research Gender
(Male/
Response
Scale
Reliability
Author s Topic Population Size Age Female) Occupation Rate Survey Type Assessment
Barwise and Adoption of General 500 16-30 50%/ 50% Unknown
100% P&P8
Interval CFA ,b a
Strong (2002) permission- consumers scale
based push
...........................a. r.ti. i & ................................................. .....................................................................................
Okazaki Perceptions General 800 n.a.c n.a. Students, 8.0% P&P 7-point CFA, a
(2004) of pull-type consumers office workers, Likert
advertising housewives,
platform professionals ,
............................................ •••••••••••••••••
How Mobile Advertising Works : The Role of Trust in Improving Attitudes and Recall SHINTARO OKAZAKIUniversidad Aut6noma de Madridobarquitec@coac.netAKIHIRO KATSUKURADentsu Inc.akihiro.katsukura@dentsu.co.jpMAMORU NISHIYAMADentsu Inc.m.nishiyama@dentsu.co.jp How does trust affect consumer attitudes and recall in mobile advertising? This study explores this question by conducting a large-scale "pseudo" mobile advertising campaign in Japan . Two "real" brands (one durable and one nondurable good) of major Japanese manufacturers were used as study stimuli. Using a push messaging service, both a campaign message and a subsequent questionnaire for each brand were sent to 40,000 opt-i n mobile users . Five primary constructs were examined: brand trust, mobile advertising trust, attitude toward brand, attitude toward mobile advertising, and mobile campaign recall. Findings suggest that a mobile campaign 'srecall largely depends on perceptions of both the medium and the advertised content, and that the effects of mobile advertising trust on attitude toward mobile advertising were stronger than those of other relationships. The path from attitude toward brand to mobile campaign recall was notably and statistically stronger for the durable good sample than for the nondurable good sample. Only in the durable good sample isattitude toward brand a mediating variable in linking attitude toward mobile advertising and mobile campaign recall. This study offers a basic but useful research framework for a mobile-based online survey. R ESEARCHERS AND PRACTITIONE R S AGREE that themost explosive growth in telecommunications has occurred in internet and mobile telephone ser vices (Lehr and McKnight, 2003). Combining these two technologies, the internet-enabled mobile de vice has become one of the most promising ad vertising media around (Okazaki, 2006). For example, SMS (short message service) direct mar keting is a popular campaign method worldwide, with consumer spending in the United Kingdom reaching 58 million messages per day in 2004 (Trappey and Woodside, 2005). The trend has mi grated to the United States as well. McDonald's conducted an SMS-TV direct marketing campaign in conjunction with a popular song contest pro gram, offering concert tickets and backstage passes. Coca-Cola executed a text message campaign for college students in which a number printed on aDOl : 10.2501/50021849907070195 Diet Coke can could be used as an entry in the Coca-Cola Grand Sweepstakes Competiti on. Ac cording to Mullman (2006), as many as 81 percent of 18- to 21-year-o lds have mobile phones, and most of them are likely to participate in TV or radio polls, purchase ring tones, play games, and send text messages.On the other hand, SMS is not used in Japan as widely as in Western markets. Instead, an email compatible version of mobile mail is commonly used in NTT DoCoMo's i-mode, w hich has been cited as "by far the most successf ul and most comprehensive example of m-commerce today" (Sadeh, 2002, p. 5). While widely used for deliv ering digital content such as ring-tones/songs, news, weather reports, travel and traffic reports, games, standby displays, and animated video, this service allows users to transmit email of up toJune 2001 JOURnAL OF ROUERTISinG RESEARCH 165 HOW MOBILE ADVERTISING WORKS 10,000 alphanumeric characters or 10,000 bytes (NTT DoCoMo , 2006). For promo tional campaigns, i-mode offers "Message F (Free)," which is a push-type service delivering advertising exclusively to opt-in users . Advertisements are delivered to a designated "Message F" inbox, and users are exempt from the normal packet trans mission charges. This Message F can be sent to specific regional, gender, or age groups, thus allowing firms to target mes sages to selected segments (D2 Commu nications, 2005). In addition, an image attachment service begun in July 2005 sup ports the transmission of images, logos, and other visual effects up to 8KB per message (192 X 192 pixels in JPEG or GIF). In 2006, major Japanese mobile car riers are beginning to launch mobile hand sets that can receive terrestrial digital broadcasting signals in addition to con ventional analog signals, thus enabling firms to take advantage of interactive pre sentations with static, animated, and/or broadcast images (NTT DoCoMo, 2005).Hence, the use of SMS as a reference point for mobile advertising may no lon ger provide a realistic impression . How ever, there is little, if any, empirical evidence as to the question of how mobile advertising works in a more enhanced environment. Our primary objective here is to close this research gap through an experimental study of mobile advertising campaigns. The study consisted of trans mitting "pseudo" mobile advertisements of popular Japanese brands, one a dura ble good and the other a nondurable good, to opt-in users. The advertisements con tained both textual and visual parts, which is more consistent with currently prevail ing mobile technology that enables firms to use rich digital content rather than simple text-based messages. One week af ter sending the advertisements, we sent a structured questionnaire to the same users in an attempt to examine their level of acceptance. The study set out to examine five primary constructs: trust toward the advertised brand, trust toward mobile ad vertising, attitude toward brand, attitude toward mobile advertising, and mobile campaign recall.In what follows, we first critically re view the extant literature on mobile ad vertising research, then establish the theoretical framework of the study. On this base, research hypotheses are pro posed. Following a detailed explanation of the methodology, we present the study results and discuss the implications of the study while recognizing important limitations.
ADVANCES IN MOBILE ADVERTISING RESEARCH
One of the benefits of a mobile-based
campaign is its capacity to attract con sumer attention and increase consumer responses through a "one-to-one dia logue" with customers (Kavassalis et al., 2003). This matches the characteristics of the mobile phone : a highly portable com munication device with ubiquitous data transmission capability. In recent years, higher-capacity 3G technologies have re sponded to more specific information needs by offering always-on service with more interactive and location-ba ed appli cations (Perlado and Barwise, 2004). So far, however, with the exception of some Asia Pacific countries, SMS has been the most common platform for mobile adver tising (Kavassalis et a!., 2003) and there fore the most studied application. Table 1 summarizes the recent advances in mo bile advertising research .
In a pioneering study, Barwise and Strong (2002) conducted a trial of permission-based SMS message adver tising in the United Kingdom . On re cruitment, respondents were paid cash incentives and received more than 100 messages in th e six-week trial period. AI -
most all respondents were sati fi d r v ry atisfied. The study found that 8J perc nt read all messages, 63 p rcent r ponded or took action, and 17 p rcent forward >d at least one me sage. Surprisingly, as many as 84 percent of respondents wer likely to recommend the ervic to their friend , whereas only 7 perc nt wer lik ly t abandon the service.
That research was lat r corroborated by Rettie, Grandcolas, and D akins (2005), who conducted a study bas d n "r al" mobile adv rtising campaign that t ok place between October 2001 and January 2002. In total, th r searchers ondu t d 5,401 telephone intervi ws regarding 26 different campaigns and found that the overall acceptability of MS adv rti ing was 44 percent, with an average re pon rate of 25 p rcent-much higher than email marketing . Acceptability was also signifi cantly correlated with campaign interest, campaign relevance, and mon tary in en tives. Similarly, sporadic industry urvey report a rath r optimi tic blueprint. An experimental survey conducted by Eri s son indicates that 60 percent of on um ers liked r ceiving mobile adverti ing, while Quios found that th I v I of r g nition of mobile advertising was surpri - ingly high : 79 percent of parti ipant recalled 60 percent of the advertising (Barnes, 2002).
In contrast, a study conduct d by 'n ang, Ho, and Liang (2004) reveal le enthu siastic attitude toward mobile adv rti - ing among Taiwanese. Their tructural model included both utilitarian and x periential factors affecting on umers' attitude toward p rmission-ba sed SM ad vertising. It wa found that (1) c nsumer generally have negative attitud s toward mobile adverti ing unle they have been informed and have pr consent d (i.e., opted-in) to the adv rti m nt , and (2) there seems to b a dir ct and p itive relationship between consum r ' attitude
166 JOURnAL Of ADUEATISinG RESEARCH June 2001
HOW MOBILE ADVERTIS ING WORKS
TABLE 1
Prior Resea rch on Mobile Advertising
Sample Methodology
Research Gender
(Male/
Response
Scale
Reliability
Author s Topic Population Size Age Female) Occupation Rate Survey Type Assessment
Barwise and Adoption of General 500 16-30 50%/ 50% Unknown
100% P&P8
Interval CFA ,b a
Strong (2002) permission- consumers scale
based push
...........................a. r.ti. i & ................................................. .....................................................................................
Okazaki Perceptions General 800 n.a.c n.a. Students, 8.0% P&P 7-point CFA, a
(2004) of pull-type consumers office workers, Likert
advertising housewives,
platform professionals ,
............................................ •••••••••••••••••
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