Start Date

12-13-2015

Description

The proliferation of mobile technologies makes it possible for mobile advertisers to go beyond the real-time snapshot of the static location and contextual information about consumers. In this study, we propose a novel mobile advertising strategy that leverages full information on consumers’ offline moving trajectories. To evaluate the effectiveness of this strategy, we design a large-scale randomized field experiment in a large shopping mall in Asia based on 83,370 unique user responses for two weeks in 2014. We found the new mobile trajectory-based advertising is significantly more effective for focal advertising store compared to several existing baselines. It is especially effective in attracting high-income consumers. Interestingly, it becomes less effective during the weekend. This indicates closely targeted mobile ads may constrict consumer focus and significantly reduce the impulsive purchase behavior. Our finding suggests marketers should carefully design mobile advertising strategy, depending on different business contexts.

Share

COinS
 
Dec 13th, 12:00 AM

Digitizing Offline Shopping Behavior Towards Mobile Marketing

The proliferation of mobile technologies makes it possible for mobile advertisers to go beyond the real-time snapshot of the static location and contextual information about consumers. In this study, we propose a novel mobile advertising strategy that leverages full information on consumers’ offline moving trajectories. To evaluate the effectiveness of this strategy, we design a large-scale randomized field experiment in a large shopping mall in Asia based on 83,370 unique user responses for two weeks in 2014. We found the new mobile trajectory-based advertising is significantly more effective for focal advertising store compared to several existing baselines. It is especially effective in attracting high-income consumers. Interestingly, it becomes less effective during the weekend. This indicates closely targeted mobile ads may constrict consumer focus and significantly reduce the impulsive purchase behavior. Our finding suggests marketers should carefully design mobile advertising strategy, depending on different business contexts.