Wednesday, December 4, 2013

Educate Consumers Prior to Mobile Ads

Why are mobile device banner ads directed to washing machine shoppers more effective than those directed to candy bar shoppers? Two reasons, say researchers at University of Pittsburgh, Columbia University, and INSEAD:
  • Mobile ads do better for functional items than for pleasure-oriented items. A washing machine is utilitarian. A candy bar’s hedonic. 
  • If the shopper cares a great deal about the purchase, a mobile ad will be more effective. Washing machine shoppers place greater importance on selecting the ideal item than do those about to select a confection. 
     When the item being advertised had both characteristics, the ad increased purchase intention by nearly 7% compared to when the item had neither characteristic. A gain of 7% from a single banner ad on a small screen is impressive. So is the database on which the researchers based their conclusions—the reactions of about 40,000 U.S. consumers to 54 mobile display ads for items from 13 different retail segments, ranging from consumer packaged goods to autos to financial services.
     The mobile device ad best serves as a memory prompt for information the consumer has already analyzed intellectually. This doesn’t mean the banner ad is stimulating intellectual processing. On the contrary, these ads are more effective because the rational analysis has already been completed in advance, allowing the ad to appeal to emotions. That’s the realm in which decisions are made when the shopper is coming close to selecting and purchasing.
     Personal relevance of the mobile device ad is important not only for making the sale, but also for not losing the shopper. As a rule, people hate banner ads. In a study last year, sponsored by Upstream and conducted by YouGov, about 70% of American consumers and 80% of UK consumers said they find banner advertisements on their mobile devices to be irritating. About two-thirds of the YouGov respondents said they’re getting too many ads and promotions on their mobile devices.
     At the same time, a slightly higher percentage said they wouldn’t mind getting more of the right kinds of ads. What’s “right”?
  • 26% want the mobile device ads tailored to their personal interests 
  • 21% want the ads to take account of what the user is doing at the time 
  • 19% want the ads to be specific to their geographical location 
     Consumers consider interactions with their mobile devices, especially mobile phones, to be more personal than interactions with other internet paraphernalia.

Click below for more: 
Talk to the Handheld with Restraint 
Accent the Emotions when Imminent Usage

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