Monday, October 21, 2013

Making Mobile Ads That Work

You glance at your smartphone to check the weather, and a tiny banner ad for a new movie pops up. What are the odds that this fleeting exposure will have any effect on you?  According to the Harvard Business Review, there’s no clear answer despite the sums spent on mobile ads—$8.4 billion in 2012, a number expected to quadruple by 2016.

Some experts argue that mobile ads are a waste of marketing dollars (see “For Mobile Devices, Think Apps, Not Ads,”  by Sunil Gupta, HBR March 2013). But new research shows that mobile display ads can work for certain types of products: those that are both utilitarian and “high involvement.” Minivans and washing machines, for instance, serve a practical purpose, and consumers buy them only after much deliberation, in large part because they’re pricey. Mobile display ads for “hedonic” products (things, such as sports cars and movie tickets, that people buy for pleasure) are unlikely to have any influence, as are ones for “low involvement” products (a tube of toothpaste, a candy bar).

We studied data from a market research firm that surveyed 39,946 U.S. consumers about products featured in 54 mobile display ads from 2007 to 2010. The products spanned 13 industries, including consumer goods, financial services, and automobiles. About half the participants saw an ad for a product on their mobile devices; the others saw no ad. At the start and close of the experiment, all rated their attitude toward and intention of buying the product.

Personally, I feel completely blind to all of the ads that pop up while surfing the Internet, except for the annoying ads.  I suppose if I saw a high ticket item in an advertisement that I might be inclined to take a closer look, specifically if I was currently in the market for that item.

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