Not so long ago, mobile phone was a strictly luxury or business item. However, not long after, the portable nature of mobile phone practically freed us from wall-mounted phone and it quickly became a necessity.
Given rapidly growing mobile device user basis, the idea of mobile marketing was born. Delivering advertisement to the device that people practically sleep with was a radical idea. Nevertheless, a massive user base has not been transformed into potentially profitable market segment because frequently exercised push-base strategy is nearly analogous to spam for consumers. The optimum balance between companies’ right to advertise and consumers’ right to privacy is a delicate thing to gain for any successful mobile advertising, and such balance has not achieved yet, according to Wilken and Sinclair (2009).
Nevertheless, we at least need to note that the introduction of smartphone is surely expanding the role of mobile devices. Mobile phone functions as a coordination device for personal and professional lives. It is a management tool for personal and emotional lives by playing a storage space for visual contents and highly personal information. In addition, it offers a bridge between oneself and the modern world where countless apps and conversations are virtually introduced. Lastly, it is a symbol of personalization. Users customize various aspects of their device setting, and as time goes by, the device is often full of the byproducts of our interests, preferences, and entertainments. Given such expanding role of mobile devices, the article by Kolsaker and Drakatos (2009) suggested mobile devices’ implication on advertisements.
In fact, the study supported that mobile users valued the ability to stay in touch with family and friends and the way that mobile devices users organize and function in their daily life. However, their responses toward mobile advertisement were relatively warmer at the best because users may perceive incoming mobile advertisement as invasions of their personal space. The article also suggested that push strategies of mobile advertising less likely succeeds over the long term even with the option of permission-based current practices. We can imply the significance of relevant content and more effective, but undisruptive way to deliver focused, catchy, pointed, and consumer-centric messages.
In addition, the idea of using social media for advertisement is emerging because of its nature of peer generated contents and its potential ability to deliver highly relevant information to individual users. The article by Taylor et al (2011) suggested that in social media setting, entertainment or information and social value oriented contents will likely generate consumers’ positive attitude toward the advertisements.
The article by Paek et al (2011) discussed the persuasive impact of peer or expert contents, which are core contents of social media. The article suggested that the productions by perceivably similar peers were more effective in the attitude enhancement and the effect of a perceivably similar peer production was appear to be more pronounced under low-involvement condition. Such findings have significant implication in terms of social media advertisement. While advertisement is inherently associated with low-involvement, recipients of the social media advertisement will likely be more susceptible to the ad because it is often recommended by other users who are similar with them.
The article by Muntinga et al (2011) also suggested the impact of social media in terms of brand management. Varying by degree of participations, consumers are actively engaging in conversation about products, services, and brands in social media setting. One may easily disregard the value of consumer conversations in social media venues, but we must not forget that brand image, which is the most valuable and intangible asset that any firm can wishfully want to own, is built upon consumers’ perceived images and knowledge. While brand image used to be built upon mass advertisement and conversations with family and peers, given the trend of rising consumer use of social media and the amount of conversations exchanges within the venues, the social media is determined to play a vital role for the formulation of successful brand image.
So now that we know that users have more trust in peer opinion than in expert opinion (generally), do you think the advertising happening on facebook now where a user gets a discount on an item for reposting the purchase offer in their feed is more affective than side bar direct marketing? I’m not sure its applicable as the PSA study because I’m able to tune out advertising in my feed almost as well as I can in the sidebar.
Well if my undergrads are any indication – those messages may not be treated as peer message, but rather as spam (or getting hacked). So I guess one follow-up would be to see how, in the wild, people determine who the source of a message is. I believe in the PSA study, the subjects were told explicitly who the PSA was produced by. It would be interesting to see – do people ascribe those kind of social ads in Facebook to their peers?
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