Mobile Advertising: An Empirical Study of Temporal and Spatial Differences in Search Behavior and Advertising Response

Using clickstream panel data from an automobile ad campaign conducted on a mobile platform, we investigate the relevance of mobile advertising, the interrelationships between ad content, information search behavior, and advertising response. Temporally, we compare mobile users' search behavior and advertising response before and during a focal campaign event of an automobile show. Spatially, we examine their search behavior and advertising response in relation to their proximity to the show's location. Estimation results from individual-user random effects binary Logit and Poisson count models show that users' responses to mobile advertising are related to the depth and breadth of search and the ad content. While informative and persuasive ad content exhibits differential non-linear effects on the depth and breadth of search, they have similar effects on advertising response. Interestingly, spatial and temporal proximity of mobile ad campaigns may not lead to increased relevance of mobile campaigns; it depends on the type of ad content and the type of measure used to assess relevance.

[1]  Peter S. Fader,et al.  On the Depth and Dynamics of Online Search Behavior , 2004, Manag. Sci..

[2]  Peter S. Fader,et al.  Dynamic Conversion Behavior at E-Commerce Sites , 2004, Manag. Sci..

[3]  Per E. Pedersen,et al.  Intentions to use mobile services: Antecedents and cross-service comparisons , 2005 .

[4]  R. Bucklin,et al.  Modeling Purchase Behavior at an E-Commerce Web Site: A Task-Completion Approach , 2004 .

[5]  N. Hollis.  Ten Years of Learning on How Online Advertising Builds Brands , 2005, Journal of Advertising Research.

[6]  Erik Brynjolfsson,et al.  Frictionless Commerce? A Comparison of Internet and Conventional Retailers , 2000 .

[7]  Michael D. Smith,et al.  Location, Location, Location: An Analysis of Profitability of Position in Online Advertising Markets , 2008 .

[8]  Wendy W. Moe,et al.  Capturing evolving visit behavior in clickstream data , 2004 .

[9]  Daniel A. Ackerberg.  Empirically Distinguishing Informative and Prestige Effects of Advertising , 2001 .

[10]  Chris Janiszewski,et al.  The Influence of Display Characteristics on Visual Exploratory Search Behavior , 1998 .

[11]  George M. Giaglis,et al.  Consumer Responses to SMS Advertising: Antecedents and Consequences , 2013, Int. J. Electron. Commer..

[12]  X. Drèze,et al.  Internet advertising: Is anybody watching? , 2003 .

[13]  R. Meyer.  A Descriptive Model of Consumer Information Search Behavior , 1982 .

[14]  Anindya Ghose,et al.  Analyzing the Relationship Between Organic and Sponsored Search Advertising: Positive, Negative, or Zero Interdependence? , 2010, Mark. Sci..

[15]  J. T. Wulu,et al.  Regression analysis of count data , 2002 .

[16]  Kannan Srinivasan,et al.  Modeling Online Browsing and Path Analysis Using Clickstream Data , 2004 .

[17]  Hye Sun Lee,et al.  Analysis of the Actual Response Rates in Mobile Advertising , 2006, 2006 Innovations in Information Technology.

[18]  A. Cameron,et al.  Microeconometrics: Methods and Applications , 2005 .

[19]  Girish N. Punj.  The formulation, empirical specification and testing of a model of consumer information search behavior for new automobiles , 1983 .

[20]  Hairong Li,et al.  Consumer Privacy Concerns and Preference for Degree of Regulatory Control , 2009 .

[21]  M. Brucks.  The Effects of Product Class Knowledge on Information Search Behavior , 1985 .

[22]  Patrick Barwise,et al.  Permission-based mobile advertising , 2002 .

[23]  Bruce L. Stern,et al.  An Analysis of Information Content in Television Advertising , 1977 .

[24]  Avi Goldfarb,et al.  Online Display Advertising: Targeting and Obtrusiveness , 2011, Mark. Sci..

[25]  A. Roy,et al.  Correlates of mall visit frequency , 1994 .

[26]  Florian Zettelmeyer,et al.  How the Internet Lowers Prices: Evidence from Matched Survey and Automobile Transaction Data , 2006 .

[27]  Ting-Peng Liang,et al.  Consumer Attitudes Toward Mobile Advertising: An Empirical Study , 2004, Int. J. Electron. Commer..

[28]  Sang Pil Han,et al.  An Empirical Analysis of User Content Generation and Usage Behavior on the Mobile Internet , 2011, Manag. Sci..

[29]  Peter J. Danaher,et al.  Modeling Page Views Across Multiple Websites with an Application to Internet Reach and Frequency Prediction , 2007 .

[30]  R. Dholakia,et al.  Mobile Advertising: Does Location Based Advertising Work? , 2008 .

[31]  J. Cacioppo,et al.  Central and Peripheral Routes to Advertising Effectiveness: The Moderating Role of Involvement , 1983 .

[32]  Lih-Bin Oh,et al.  Effects of Multimedia on Mobile Consumer Behavior: An Empirical Study of Location-Aware Advertising , 2003, ICIS.

[33]  Pradeep K. Chintagunta,et al.  The Effect of Banner Advertising on Internet Purchasing , 2006 .

[34]  C. McDaniel,et al.  A profile of browsers in regional shopping malls , 1987 .

[35]  David H. Reiley,et al.  Does Retail Advertising Work? Measuring the Effects of Advertising on Sales Via a Controlled Experiment on Yahoo! , 2008 .

[36]  Eric J. Johnson,et al.  When Web Pages Influence Choice: Effects of Visual Primes on Experts and Novices , 2002 .

[37]  R. Peterson,et al.  Consumer information search behavior and the internet , 2003 .

[38]  P. K. Kannan,et al.  The Impact of Online and Offline Information Sources on Automobile Choice Behavior , 2012 .

[39]  Ricardo Baeza-Yates,et al.  A Study of Mobile Search Queries in Japan , 2007 .

[40]  Barbara A. Lafferty,et al.  The Impact of Corporate Credibility and Celebrity Credibility on Consumer Reaction to Advertisements and Brands , 2000 .

[41]  Donna L. Hoffman,et al.  Measuring the Customer Experience in Online Environments: A Structural Modeling Approach , 2000 .

[42]  B. Kahn,et al.  How Tolerable is Delay? Consumers’ Evaluations of Internet Web Sites after Waiting , 1998 .

[43]  Michael A. Kamins,et al.  Two-Sided versus One-Sided Celebrity Endorsements: The Impact on Advertising Effectiveness and Credibility , 1989 .

[44]  Catarina Sismeiro,et al.  A Model of Web Site Browsing Behavior Estimated on Clickstream Data , 2003 .

[45]  P. Chatterjee,et al.  Modeling the Clickstream: Implications for Web-Based Advertising Efforts , 2003 .

[46]  Shintaro Okazaki.  How do Japanese consumers perceive wireless ads? A multivariate analysis , 2004 .

[47]  Wendy W. Moe,et al.  The Influence of Goal‐Directed and Experiential Activities on Online Flow Experiences , 2003 .

[48]  B. Ratchford,et al.  Consumer information search revisited: Theory and empirical analysis , 1997 .