Mobile Advertising Effectiveness

Ginger Rosenkrans and Keli Myers

Abstract:

This field experiment research study explores the effectiveness of the Technology Acceptance Model (TAM) and the uses and gratifications theory by comparing mobile banner ads to non-mobile banner ads on a local newspaper's website. Findings from this research indicate mobile banner ads had significantly higher click-through rates than the non-mobile banner ads and there were significantly more Apple devices than non-Apple devices used to access mobile ads.

Introduction

Digital is the impetus for growth in U.S. advertising (Emarketer, 2012b). It is projected that spending on desktop and mobile Internet advertising will increase from $39.5 billion in 2012 to $62 billion in 2016. During this time, it is purported that the Internet's share of total media ad spending will grow from 23.3% to 31.5%. It is estimated that more than one-third of U.S. adults have smartphones (Vasquez, 2011), and in 2012 more than three-fourths of the total U.S. population will be online (Emarketer, 2011). From 2010 to 2015, U.S. mobile commerce is forecast to grow at a 55% compound annual rate (Emarketer, 2012c). Local and national mobile ad spending in the United States is estimated to increase to $4 billion by 2015, with 70% of that dedicated to local ad spending. Presently, local mobile advertising spending accounts for more than half. More smartphone owners, greater consumer confidence in the security of mobile commerce, and better mobile websites and apps are expected to contribute to the growth of mobile ad spending (Vasquez, 2011). Additionally, Millennials, who are keen smartphone users, are projected to enhance mobile commerce as they enter their prime income-earning years and have more disposable income to spend (Emarketer, 2012c).