MOBILE MARKETING

Acknowledgements
It has been three months since we start doing thesis course. During this time I have learn much and
there are some people I would like to express my appreciation to.

First of all I would like to thank my supervisor Dr. Mohammad Nasir Uddin who giving me such
valuable advice and guidance during the thesis course.

This thesis would neither have been done without the help of 2 companies Zovoteam.com and
Brandmyth Digital so I would like to thanks Vice President of –Zovoteam.com, Middle East and
Brandmyth Digital for their cooperation in providing valuable and necessary information

Finally I would like to thanks my family and all my friends who always with me to support in tough
times and encourage me to finish this thesis on time.

Wish them all the best.

Abstract
The explosive growth of wireless as a communication medium offering exciting new Marketing
opportunities and demanding that wireless become a new channel of the marketing communication
mix.A study of mobile advertising is interesting because it help researchers understanding the
contribution of a new information technology for doing business. The aim of this thesis is to gain a
better understanding of how companies use mobile marketing in doing business. In order to fulfill
this purpose the researcher explores, describes and tries to find out factors influence mobile
marketing adoption, mobile marketing campaigns as well as form of mobile advertising. Two cases
study were conducted with mobile marketing companies Zovoteam.com and Brandmyth Digital in
Bangladesh show the empirical research operating in Bangladesh markets. The results of this study
support the theoretical framework as well as clarify and extend it. The finding also include some
suggestions for companies how to use this kind of emerge new medium effectively
Table of Contents
Table of Contents.................................................................................................................................0
1. Introduction..................................................................................................................................1
1.1 Background.................................................................................................................................1
1.1.1 Mobile commerce and Mobile Marketing...............................................................................1
1.1.2 Enabling mobile advertising technologies...............................................................................2
1.1.3 Mobile advertising...................................................................................................................4
1.2 Problem discussion.....................................................................................................................6
1.3 Purpose and Research question..................................................................................................9
1.4 Demarcations..............................................................................................................................9
1.5 Outline of the thesis....................................................................................................................9
2. Literature Review.......................................................................................................................11
2.1 Factors affecting mobile advertising adoption.........................................................................11
2.1.1Branding strategy...................................................................................................................12
2.1.2 Facilitating conditions...........................................................................................................13
2.1.3 Location-based services.........................................................................................................13
2.1.4 Service costs..........................................................................................................................14
2.1.5 Regulatory control.................................................................................................................15
2.1.6 Cultural Barriers....................................................................................................................16
2.2 Mobile advertising Campaigns.................................................................................................17
2.2.1 Effective mobile advertising.................................................................................................19
2.3 Forms of mobile advertising.....................................................................................................22
2.3.1 Competitions.........................................................................................................................22
2.3.2 Location base service............................................................................................................24
2.3.3 Coupons.................................................................................................................................25
2.3.4 Alerts.....................................................................................................................................25
2.3.5 Sponsorships..........................................................................................................................26
2.4. Conceptualization....................................................................................................................26
2.4.1 Factors affecting organization’s mobile advertising adoption..............................................27
2.4.2 Mobile advertising campaigns...............................................................................................27
2.4.3. Mobile advertising forms.........................................................................................................28
2.4.4 Operationalisation of Study Areas.........................................................................................28
2.4.5 Emerge frame of reference....................................................................................................30
3. Methodology...............................................................................................................................31
3.1 Research Purpose......................................................................................................................31
3.2 Research Approach...................................................................................................................32
3.3 Research Strategy.....................................................................................................................32
3.4 Data Collection method............................................................................................................33
3.5 Sample Selection......................................................................................................................34
3.6 Data analysis.............................................................................................................................35
3.7 Validity and Reliability.............................................................................................................36
4. Data presentation........................................................................................................................37
4.1 Case study –MindMatics..........................................................................................................37
4.1.1 Company Presentation...........................................................................................................37
4.1.2 Factors affecting mobile advertising adoption......................................................................38
 4.1.3 Effective mobile advertising campaigns...............................................................................40
4.1.4 Mobile advertising forms......................................................................................................41
4.2 Case study 12snap-Lokomobil...............................................................................................43
4.2.1Company Presentation............................................................................................................43
4.2.3 How can organization’s effective mobile advertising campaigns be characterized?............45
4.2.4 How can organization’s mobile advertising forms be described?.........................................46
5. Data Analysis..............................................................................................................................48
5.1 Within case-Analysis of MindMatics.......................................................................................48
5.1.1 How can the factors affecting organization’s mobile advertising adoption be described?...48
5.1.2 How can organization’s effective mobile advertising campaigns be characterized?............52
5.1.3 Mobile advertising forms......................................................................................................53
5.2 Within case-Analysis of 12snap-Lokomobil............................................................................56
5.2.1 Factors affecting mobile advertising.....................................................................................56
5.2.1 Effective Mobile advertising campaigns...................................................................................59
5.2.3 Forms of Mobile advertising.....................................................................................................61
5.3 Cross Case Analysis.................................................................................................................63
5.3.1 Factors affecting mobile advertising adoption......................................................................63
5.3.2 Mobile advertising campaigns...............................................................................................64
5.3.3 Mobile advertising forms......................................................................................................65
6 Finding and Conclusions.............................................................................................................66
6.1 How can the factors affecting organization’s mobile advertising adoption be described?......66
6.2 How can organization’s mobile advertising campaigns be characterized?..............................67
6.3 How can organization’s mobile advertising forms be described?............................................67
6.4 Implication................................................................................................................................68
6.4.1 Implication for theory............................................................................................................68
6.4.2 Implication for manager........................................................................................................68
6.4.3 Implication for future research..............................................................................................69
Reference...........................................................................................................................................71
 1. Introduction
In this chapter an introduction of the chosen topic for the thesis will be provided, the chapter begins with a
short background to the research area followed by a problem area discussion that will guide the reader to
the overall purpose. From the purpose specific research questions are posed for the thesis. Finally,
demarcations and outline for the thesis will be presented

1.1 Background
1.1.1 Mobile commerce and Mobile Marketing
To exploit the opportunity created by high growth of cellular phones and other wireless devices
such as PDA, pagers, Bluetooth, companies around the globe are integrating m-commerce
technology in their business model.

According to Nan Si Mobile commerce can be defines as delivery of electronic commerce (e-
commerce) capabilities directly into the consumer’s hands via wireless technology and the
placement of a retail outlet into the customer’s hands anywhere. This type of e-commerce makes it
possible for businesses to reach end-users directly, irrespective of their location. Through mobile
commerce end-users can make purchases, download cash, do banking, and buy ticket through
mobile phone. The recent increase interest in mobile commerce is as a result of high degree of
interest shown by consumers on how to access business service and information or to communicate
anywhere, is also motivated by desire of business community to reach end-users at all time and all
places.

According to Juniper Research Group in global mobile commerce market, comprising mobile
entertainment downloads, ticket purchases and (POS) Point Of Sale transactions, will grow to $88
billion by 2020, The research firm predicts that on average, Western Europeans will conduct around
28 transactions per year using their mobile phones by 2020, with each transaction valued at an
average of approximately $3.00.

Mobile marketing is very recent, but promising industry created by the emergence and widespread
adoption of wireless data networks, which enable the convergence of the Internet, e- business and
the wireless world .
 1.1.2 Enabling mobile Marketing technologies
Mobile advertising requires wireless network, mobile technology and infrastructure in order to be
effective and efficient; these technologies serve as the sound platform for implementation of
wireless promotion and advertising.

Currently three major mobile technologies that are being use world side. “i-mode” based on
Compact Hyper Text Markup Language (C-HTML) is most popular in wireless technology in
Japan. In America, WAP is the standard and most used by mobile vendors and service business. In
Europe SMS is the most popular protocol in mobile community. These technologies tend to focused
on distinctive group of users, and require particular mobile devices and mobile environments.

I-Mode: “i –mode” is a wireless internet connection that allow users to browse internet

Pages and send and receive email through mobile devices offering easy access to more than 94,000
Internet sites. it was first introduce in Japan by NTT DoCoMo in 1999 and regarded as the most
successful internet access model in the telecommunication world wide (Ishii, 2020).

Andersson et al (2020) to the end-user, “i-mode” consists of a mobile phone with a screen that
 can display text and small graphics (some 100 characters can be fitted to the screen). By pressing a
special “i” button, the user is logged on to a central gateway server operated by DoCoMo. The
initial default text displayed consists of menus linking to official NTT DoCoMo i-mode content
sites. The major technical components of the “i-mode” service are:

 (PDC-P) Packet Data Cellular , 9.6 kbps (later upgraded to 28.8 kbps) packet-switched network;
 The “i-mode” server, which functions as a gateway between PDC-P and the content
provider sites;
 Terminals including micro-browsers

 Official and unofficial content provider sites and micro-payment system.

 Content development tools and support;

 A simple fairly html-compatible mark-up language; and

 A portal.

“i-mode” is based on a foundation of technological advances. By embracing packet transmissions,

the service offers continuous access to the internet. Additionally the use of a subset of HTML
makes content creation simple and allows existing sites written in HTML to be converted into i-
mode content, since iHTML requires only minor changes to the HTML. More sites are joining
the “i-mode” roaster because of this easy conversion One of the key strengths of
“i-mode” is the fact that it remains connected to the Internet at all times. Implying that user need
not dial up to access more than 4,700 Japanese and English- language web sites via the” i-Menu”
and an infinite number of independent sites. “i-mode” also offers "Web to", "Phone to", and "Mail
to" functions which add even greater convenience .

NTT DoCoMo claims that by September 2020 45 million customers are using the “i-mode” service;
“i-mode” is not only about technology for assessing the internet via mobile phone but is can be
described as “i-mode” entire value chain including technologies, business model, and marketing. “i-
mode” service includes browsing (access to internet sites with i-mode tailored contents),
downloading (ring tones, java applications) and “i-mode” messaging which basically is based on
Internet e-mail technology. DoCoMo offers a one-stop-solution of mobile internet services which
enable users to undertake numerous tasks in one portal: instant messages, e-mailing, data search and
internet.

As a result of success story of “i-mode” in Japan, some European mobile operators such as (KPN of
Netherlands, E-plus of Germany, Bouygues Telekom of France and Base of Belgium) have
introduced i-mode.
1. SMS: Short messaging is a digital cellular network feature, which allow users to send and receive
short text and numeric messages to and from digital cell phones over internet using email and
mobile phones based on public messaging gateways. SMS messages stored in the short message
center and sent to the recipient when the subscriber connects to the network. Users can send
plain-text messages to another mobile user using the SMS protocol this will in effect facilitate
viral marketing, SMS messages are limited to 160 characters, because in its initial form, it was
basically for exchanging short messages. The use of SMS has now shifted from customer-
customer model and advance to a reliable means of machine- customer service such as game,
payments, receipts, notification
Today mobile advertising is carried out mainly using SMS (Short Message Service). With the use
of WAP (Wireless Application Protocol), advertisements will be based on voice, text, graphics and
music. The most popular mobile application is SMS it has attracted 580 users who sent 135 billion
SMS messages in the first quarter of 2004 and it is predicted that by the 2008 mobile commerce
users will reach 1.67 billion from 94.9 in million in 2003. SMS is said to account for bulk of mobile
company’s revenue from data service until 2006. According to Öst et al during the first half-year
of2018, a total of 2.04 billion SMS were sent which represents an increase in 13 percent from total
sent during2018. The total turnover for SMS is amounted to SEK 1.80 billion in2019, as much as
84% was derived from private customers. WAP has been a commercial failure because only few
people connect to internet due to high costs, slow access speed hard to read screens that lead to lack
of comfort and lack of ease of use, on the other hand “i-mode” has been very successful in Japan
and is now gaining ground in Europe and SMS is very successful in Europe

1.1.3 Mobile Marketing

Mobile advertising is a brand new phenomenon. There exists no commonly accepted definition for
the concept ‘mobile advertising’.Yunos et al defined mobile advertising as marketing and
advertising activities that deliver advertisements to mobile devices using wireless network and
mobile advertising solutions to promote goods and services and build brand awareness. Leppäniemi
has defined mobile advertising as any paid message communicated by mobile media with the intent
to influence the attitudes, intentions and behavior of those addressed by the commercial messages.
Mobile advertising hold strong promises to become the best targeted advertising medium delivering
new means of reaching users with message other than traditional channels (e.g. radio, television,
print, and mail) (ibid). M-advertising provides consumers with personalized information based on
their location, time of the day and interest And analysis have revealed of mobile advertising
becoming more relevant in the coming years. By the year2019, mobile advertising market is
expected to grow from US$ 16 billion to 17 US $ billion and US$ 23 Billion by 2020. There has
been rapid growth of m-advertising especially in Europe and Asia. According to e-marketer 2018
about 40% of mobile phone users have received SMS- based m-advertising from marketers in Asia,
36 % in Europe and 8% in US. (ibid)

Mobile advertising can be flexible, dynamic, and highly targeted. The targeted audience can search
for information, make enquiries and make purchases at any location. Stock quote, wireless coupon,
local entertainment information and dining restaurant are some of the early application of mobile
advertising.

The proper context within which mobile advertising can be well executed is permission-based.
Permission-based mobile advertising can be described as situation where by end-users permit
advertisers to reach them with their offerings. . It is now the new and alternative way for marketing
communication.

Push advertising may be unsolicited for instance when special promotion is sent to end-user by
SMS within the context of existing already establish relationship. Push advertising can also be
solicited meaning customers agree to have certain services or promotion push on them at certain
times.

Another mode of mobile advertising is term as called pull advertising which can be define as any
content sent to the wireless subscriber upon request shortly thereafter on a one time basis (MMA).
In this case advertisers provides a wireless means for customers to respond to advertiser’s message,
thus it is advertising that the end-user request for advertisement
Mobile advertising provides end-users with personalized information based on their time of the day,
location and interests as a result various factors need to be considered in mobile advertising
concept. Time and location have impact on individual’s behavior and receptiveness to adverts.
Knowing the location of the customer enable geographically targeted advertising message via GPS.
Sending message at appropriate time increases the success of advertising campaign (ibid).
Personalization of the content of an advert is possible by tracking personal identity and capturing
customer data.

According to Barwise & Strong advertisers need to be cautious about the content and the
information when planning mobile advertises in order to get end-user’s attention. Mobile adverts
should be entertaining, emotional, interactive and provide incentive to customers in order for them
to pay attention to the advertises in Jellasi et al In addition, in order to function properly wireless
advertising should provide the information customer find more valuable and creates added value to
the customer. If the content of SMS advertisers is irrelevant customers may have negative reaction
when receiving such messages.

In conclusion mobile advertises may be seen as part of mobile commerce and mobile marketing,
one basic requirement of mobile advertising is to be permission-based, it can be categorized into
push and pull, however in future mobile advertising will be in the form of dialogue campaign.
Furthermore, factors such time and location, personal nature of customers and content and
information of mobile advertisement should be taking into consideration when delivering mobile
advertises.

1.2 Problem discussion

Marketers stand to gain more as a result of rise in mobile communication with regards to messaging
and other non-voice technologies.
“The convergence of the mobile phone and the Internet promise to change all our lives forever - the way
we work, the way we buy goods, the way in which we communicate with each other. Mobile devices, still
used almost exclusively for voice, is on the threshold of a wave of new service opportunities for businesses
and for customers. The appeal of the mobile device as a business tool is not hard to understand. The
average office workers will spend 20% of their waking day in front of the PC. A mobile device is with a
person for 80% of their hours, In a trial in Sweden one of the leading countries in mobile revolution, it was
found out that 76
percent of mobile users welcome advertising provided it is integrated within useful information.
More importantly in a Swedish survey conducted by Net survey and Zovoteam. com28 percent of
the respondents claimed they developed interest in campaign because of the advertising they
received whilst 17 percent found advertising intrusive

Mobile advertising is still at an early stage and different players are still experimenting with various
formats. However research and practice suggest that much can be achieved using simple mobile
technology that is already well established.

According to Haig marketers see synergy between text messaging and internet most often difficult
to resist. One common example where web and SMS compliment each other is when a text message
directs recipients to a web site for more information, such a method has a practical purpose since it
is impossible and impractical to express much information via text. Furthermore, marketers are able
to direct each recipient to a point of purchase on e-commerce site, and it increases the chances of
brand recall.

Mobile technology together with the internet and to lesser degree digital television has change the
way marketers can get their message across.

In the past, advertisers have limited media options such as print, television and radio. Even though
newspapers radio stations and television programs are still in use, targeting audiences through
media campaigns are still risky. Evaluating the success of a campaign is mainly guesswork since
broadcast media tend to be one way communication (marketer to consumer and not vice versa) and
most often cross section of the targeted population is reached. However, the emergence of new
media forms, together with changes in the old ones has given rise to micro- media age which in turn
leads to micro-marketing. Theoretically companies can now narrow cast their messages to smaller
targeted audience, instead of broadcasting their messages. Additionally marketers can interact with
their customers in a manner that was before then impossible. Every message sent can be monitored
responses accounted for providing there is call to action. Marketers who failed to acknowledge
mobile technology are in effect ignoring one of the most powerful means of actively engaging and
reaching customers.
According to Okaziki companies will consider the following factors when adopting mobile
advertising: branding strategy, Location based service and service cost as the most important
managerial factors, whilst facilitating condition, cultural barrier and regulatory as environments
factors. The predictions of future growth and the benefit of mobile advertising make companies find
the way to adopt mobile advertising. So to adopt mobile advertising it is necessary for company to
look at the factors influencing mobile advertising.

However because of perceived limitation of mobile terminals and failure of WAP functionality
some companies are reluctant to adopt mobile advertising. In addition the following factors among
others serve as stumbling block to wireless advertising adoption, cultural issue has been a big
obstacle to mobile advertising, a poll conducted by Businessweek shows that 89 percent of the
respondents dislike the idea of combining their online habits with information identification.
Regulatory, privacy and cultural issue differ among different countries especially in Europe.
Therefore any company which fails to adopt appropriate mobile advertising strategy will have
negative advertisements response and will have their brand strategy damaged. Also Limitation in
mobile infrastructure and cellular phone such as slow deployment of 3G infrastructure, high power
consumption require by handset, deficiencies in mobile browsers, shortage and high cost of 3G and
GPRS handsets among others hinder mobile adoption by companies.

There is high risk and low revenue associated with wireless advertising, because it is at its infant
stage. The low revenue aspect can deter mobile advertisement pioneers from investing in research
and development, and without the research firms will find it difficult in deciding the best marketing
model to adopt .

According to Jellasi et al to begin a mobile campaign the two basic options available are push and
pull. The challenge is the effort requires in creating compelling adverts that posses the required pull
effect to entice consumers to call in and participate.

The youth market being lucrative gives the marketer tough time in addressing it, the youth are
carried away by changing fashion trend and also vary in terms of attitude, interest and habits. They
are difficult to pin down, because their message is fragmented among hundreds of TV stations,
magazines, radio, news papers and the Internet, unlike in the past when they basically watch 3 or 4
TV stations. (ibid)
According to Will Harris Global Marketing Director Genie in the personal natures of mobile phones
present one of the main challenge and opportunities to mobile advertising companies, because
advertising campaigns carried via mobile phones are very sensitive and companies which adopt this
type of advertising campaigns need to be careful not to offend users.

According to Haig,when companies launch a new product or looking for extra revenue from mobile
advertising they should considers these types of forms for their campaigns because not every choice
available on the mobile advertising tools will be suitable for every brand and business.

1.3 Purpose and Research question

Based on the discussion above, the purpose of this study is to gain a better understanding of how
organizations are using mobile advertising in B2C.

In order to reach the research purpose for this study the following research questions are stated: RQ 1:
How can the factors affecting organization’s mobile advertising adoption be described? RQ 2: How can
organization’s mobile advertising campaigns be characterized?

1.4 Demarcations
Because mobile advertising is very broad and extensive, and also due to limited time allocated for
undertaking this research, this thesis will only focused on examining the use of mobile advertising
in Business to Consumer (B2C). To further limit the research only companies located in Europe
were chosen for consideration.

1.5 Outline of the thesis

This thesis is divided into six chapters. The first chapter is introduction with the purpose to bring
the background to the reader about the research area; problem discussion and research purpose as
well as research question are also presented. The second chapter provides the reader with overview
of the literature, related to three research questions of the study and then the emerged frame of
reference is provided. Chapter 3 is methodology provide the method which were used in this study.
Chapter 4 is data presentation and followed by chapter 5 with data analysis. In the end, chapter 6 is
finding and conclusion drawn from this study will be presented.
1. INTRODUCTION
-Background

-Problem Discussion

2. THEORETICAL DISCUSSION

Factors of Mobile Mobile

mobile advertising advertising
advertising campaigns Forms

Framework of mobile advertising

3. METHODOLOGY Research Purpose Research

Approach Research strategy Research Method

4. DATA PRESENTATION
Case presentations

5. DATA ANALYSIS

6. CONCLUSIONS Theoretical Contribution Managerial

Implications Limitations and future research

Fig 1: Structure of the Study

 2. Literature Review
2.1 Factors affecting mobile advertising adoption
The previous chapter provided the background and problem discussion of the area of this thesis, leading to
the research questions. In this chapter we review earlier studies within our research purpose area. The aim
of this chapter is to provide relevant literature in mobile advertising. Firstly, we discuss the theories that
are concerned with organizations mobile advertising adoption factors, secondly, we review theories
describing organization mobile advertising campaigns and lastly, we present theories describing
organizations mobile advertising forms.

Branding Awareness

Location-based service
Facilitating Conditions
Company’s Intention To
use
Service Costs

Regulatory control

Cultural barriers

Figure 2: Company‘s intention to use mobile advertising

 2.1.1 Branding strategy
According to Frolick and Chen 2018 as referred to by Okazaki (2019) mobile internet provide an
effective channel for building customer relationships by means of promotional and direct marketing
activities. More specifically wireless email had been regarded as an effective tool to enhance brand
awareness, build or test customer loyalty, and develop or enhance demographic database
(Mylonopoulus and Doukidis, 2020). Petersen et.al (2019) argues traditional use of internet through
computer does not allow brands to reach customers wherever they want, even though it is claimed
that internet has made it possible for customer to reach the company at their desired time, however
customers can only be reached if they are sitting in front of computer, contrary mobile devices are
always with the user making it possible for brands to reach their customer anytime anywhere.
Customers will highly value channels that are time and space flexible. Access to ubiquitous
channels is of special importance to customers particularly if the product and services are time
critical. Through mobile brands can distribute information about product, innovation, coupon
announcements, or/special offers. On the other hand customer can also utilize the wireless channel
to request about product usage, for example ask about the menu of a restaurant or evening program
of television channel thereby increasing the ability of customer to full benefit of the relevant
product or services brands are able to get feed back from their customers due to two-way
communication between brand and customer enabled by mobile device.
Typically wireless devices are use to coordinate social networks. Information received by a member
of the network in most cases forwarded to other members of the network. Therefore brands
information can be delivered on broader level other than the brands own customer database, this is a
result of the social interaction among the members of the customer database. the implication of this
is the delivering of brand jingle, logos, slogans … within the social networks double the number of
end-users exposed to the brands, thereby increase the brand knowledge (ibid).A survey using
popular brands trial in mobile advertising found that as many as 84 % of the 500 young British
adult are likely to recommend the service to their friends, while only 7 % are likely to abandon the
service (Barwise & Strong, 2018).

SMS advertising also makes the recipient feel more positive about the brand being advertised. The
strongest proof of branding success comes from the propensity for the consumer to buy the brand in
the future. On average 36% of SMS campaign recipients say they are more likely to buy the product
advertised as a result of the campaign. This rises to 71% for the best campaigns (Enpocket, 2020).
 2.1.2 Facilitating conditions
The technologies associated with wireless communications requires infrastructure which allows
mobile device users to send and receive SMS-based messages. Seeing the need for theoretical base
for wireless internet adoption base on the technology acceptance model (lu et. al, 2003) as cited in
Okazaki (2020) suggest that that facilitating conditions and ease of use of wireless internet is one of
the most important determinants of adopting mobile internet. In the light of this the integration of
competing standards and fragmented systems across countries, cross- network support for SMS, and
higher connection speeds are all necessary conditions greater transmission of mobile advertising.
Furthermore, the availability of web-enabled mobile handsets with 2.5G or 3G functionality would
significantly affect adoption of Multimedia Media Services (MMS) based advertising campaigns.
There must be various type of handset to enable consumers to choose combination of functions and
features that best suit their needs. (Baldi and Thaung, 2019) mobile phones of the same brand sold
in Japan and Europe with not have the same technical features. In Japan, a special emphasis is
placed on given superior color display using better input method. For example, Nokia’s 7110 WAP
allows only four lines of text on a black and white display, whilst Japanese counterpart allows for
256-color graphics, six lines of characters, and a screen resolution of 111x 106 pixels in smaller
size (ibid).

2.1.3 Location-based services

In order to determine a person's position, different location techniques can be used. The most
popular techniques use satellites: i.e. global positioning systems (GPS) which compute the user's
position from the signals transmitted from a satellite constellation. The main advantages of such
satellite systems are their global coverage, accuracy and minimum impact on the existing
communication networks.

Location based services (LBS) are service that is able to utilize of location of mobile device user; a
geographically specific adverts can be delivered to smart phone user wherever they are traveling to.
Allied Business intelligence reported that by the year 2021 LBS industry will account for more than
40 billion Euros in revenue in Europe. One of the much talk about capabilities of wireless internet
have been LBS The reason being that advertiser can reach consumer when he/she is mostly likely to
make purchase (ibid). As a result cellular phone manufacturers and service providers are
increasingly attracted by commercial viability of applying the satellite-based global positioning
system (GPS) to the wireless service(Okazaki,
2020). Currently the location tracking applications has much more wider implications. for instance
on the extended menu of "i-mode" "i-area" includes a various location-based services restaurant
guide, weather news, local hotel information, zoomable maps with address finder function, and
traffic updates and estimation of travel times. KDDI, the second largest Japanese operator began to
sell out a GPS enabled handset, which makes it possible for location-based service to be much more
personalized (ibid)

Mobile communication technologies which are always provided on broadband connections in

combination with location computation technologies will bring some obvious benefits. The bulk
will be commercial services providing specific content targeted at individuals and their context.
Murphy et al (2020) Mobile phones provide two key argument for e-commerce ubiquity and
location independent, this has made consumers to demand tailored and location-based services
thereby increasing the importance of personalized marketing, also virtual communities can be
created by properly applied location-based service (ibid).For example, Telia being one of the
Europe’s biggest and innovative telecommunication companies, launched a real-time SMS game
using mobile positioning to let users play against others in their vicinity (www.botfighters.com).

According Barnes (2020) referred by Okazaki (2021) the GPS facilities together with other location
based-service will give companies strategic advantage in mobile advertising, the reason being that
there is tendency for consumer behavior and receptiveness to advertisement to be influence by
location and time, and marketers can persuade the consumer to make impulse purchases by giving
the right information at the right time, and at the right place.

2.1.4 Service costs

Service costs is one of the important factors in wireless advertising adoption, the cost of sending
SMS message is comparably lower than other data oriented devices such as WAP, the cost of
sending a message is 0.02 Euro in Philippines, 0.04 in Euro in Japan and 0.11 Euro in western
Europe, the affordability has impacted greatly on the suitability and potential of applying SMS in
commerce. In Japan, the cost of mobile services is much lower compared to that of the wired
Internet. NTT’s DoCoMo prices data-oriented wireless services at a much lower rate compared to
data-oriented wired services, SMS messaging is relatively higher in Japan because it is considered
as low cost, convenient, and easy to use-to-use alternative to charting tools on the wired internet.

According to Leppaniemi within a few seconds companies can undertake marketing campaigns
targeting tens of thousand of people with a proportion of the costs compared to other direct medium
such as telephone and direct mail. Two types of costs calculations are used by advertising industry:
cost per thousand impressions (CPM) and cost per rating point (CPP). CPM is used in both print
and electronic media; previous studies on advertising mainly use CPM calculations. CPM is
calculated by multiplying the unit cost of media vehicle by 1000 and dividing the result by audience
size of the vehicle. For example if an advertising campaign
costs US $5000 and assumed audience is of 300,000 consumers, the CPM will be approximately
US$17. In addition to the CPM measure in media marketers have to apply several adjustments
audience-attention probability, prestige and believability of the media selection. The CPM measure
of direct mail is between US $ 500 to US$ 700, for e-mail CPM ranges from US$5 to US$7.
however mobile advertising provides a new and innovative ways of promoting goods and services
since e-mail is losing its efficiency as an advertising medium. According Forrester research m-
advertising provide greater economics compared with other direct marketing medium, with
remarkable average response rate of 11 % at average campaign costs of US $ 28,000. Forrester
calculated that the CPM of US$ 125 couple of response rate of 13 % in mobile advertising, overtake
mail and phone alternative. Mobile medium is becoming strong force in building dialogue between
the marketer and end-user with no comparative alternative.

Stefan et al Looking at CPM one can see that the mobile channel is still more expensive than prime
time television but one need to keep mind that the distribution paid by the service provider only
takes place if a target customer profile and the situation description of the customer do match. As a
result spreading losses are reduced to barest minimum and quality of contact acquired is averagely
higher than traditional mass media, which can provide weak customize targeting and allocation
mechanisms. In the long run this can lead to a distribution through the mobile channel that is more
cost efficient than traditional media

European counterparts will be in position to charge their content providers minimal fees and this
would in turn serve as incentive to companies to create their own mobile advertising campaigns, if
the business model of “i-mode” service had been transferred through partnership and knowledge
exchange. (Okazaki, 2020)

2.1.5 Regulatory control

The main difference between mobile advertising and e-mail advertising is the “opt-in” according
(Sadeh, 2020) this “opt-in” in function is very important in providing end-users full control over
messages they receive, in that end-users demand for highly personalized service need to be
reconcile with desire for privacy. Corporate policies need to take into account legalities such as
electronic contract, electronic signature and condition for sending SMS message. According to
DeZoysa (2020) in Okazaki (2020) European consumers regard SMS as irritating and intrusive in a
survey conducted across Western European countries in 2020, of 3000 mobile users almost all
the respondents see any SMS campaigns to their mobile phones as intrusive even if it last for 30
seconds. As many as 46 percent of Europeans agreed to use mobile banking and this raises concern
for European lawmakers and require them to enact law which protect consumers financial
information, this is because mobile banking users may be highly concern about security concerning
their information, the reason being that mobile banking allow consumers to request that their
account balance via SMS.

In November 2001, Court issues injunction on Global Network a company which spams DoCoMo
customers; this is believed to be first of its kind, this spamming cause a system failure and
disruption. As much as 900,000 spam messages were sent within an hour with 170,000 going
undelivered, as result Ministry of Public Management support DoCoMo’s initiative of blocking
spam messages. According to UK Mobile Operators (Vodafone, Orange, T-Mobile, 02, 3 and
Virgin) announced a joint Code of Practice for the self-regulation of new forms of content on
mobile, this is to safeguard children from undesirable content on their mobile phones as well as
facilitating the responsible use of the device

In the same vein, the Mobile Marketing Association has taking steps to establish industry guidelines
for mobile marketers: MMA members need to send mobile advertising unless they receive
confirmation for "opt-in"; and such opt-in subscriber permission should not be transfer to third
parties without full permission from subscriber

2.1.6 Cultural Barriers

According to even though penetration of mobile phones has converged rapidly there exist
differences in terms of usage. In the individualistic northern part of Europe people use mobile
phones to communicate with each other, so sending SMS is very popular since people are more
verbally oriented. In the southern Europe with more collective and high power distance culture
people use mobile phones for talking as well as networking. From companies view point such
variations may be serious obstacle to adopting mobile advertising, since single campaign may not
yield same result in different market. This will make mobile advertising costly as well as inflexible
if companies had to adopt mobile campaigns which are peculiar to specific segment of each market

Countries like Italy, France and Germany which are known for their high uncertainty avoidance
will be unwilling to quickly adopt new technology whilst countries with low medium scores on
avoidance, such as Netherlands and Scandinavian countries are likely to embrace new technology
quickly .
 Japanese consumers tend to spend much time on public transport with a lot of time to spare, this
provides them with incentive to use wireless devices use m-commerce services, on the contrary,
many Europeans commute by car therefore have less incentive to use mobile internet (Shi, 2004).
However Anderson (2004) argued that the believe that Japanese should be more prone to embracing
mobile internet because of their culture, than Europeans embracing mobile internet is weak,
because similar services such as messaging, personalization of phones… have been successful both
in Japan and Europe as well. (Barnes and Huff, 2003) This observation implies that communication
needs are universal and not specific to Japan. Also, the rapid spread of “i-mode” in Japan can be
attributed to “word of mouth” due to the normative beliefs attributed to significant others
(colleagues, friends or family members) with regard to adopting and continuing to use mobile
technology. This may partially accounted for as high as 75% subscription rate of email newsletters
among “i-mode” users, and this make advertising much easier. But because Europeans are
relatively individual than others the spread of mobile internet through “word of mouth” cannot be
expected of them.

2.2 Mobile Marketing Campaigns

According to it is becoming difficult for marketing managers to find the right strategies to reach
customers with their messages, in the past it was possible to target reach large segment of potential
customers by advertising through major TV networks, but the emergence of private channels have
given rise to high degree of fragmentation, making it difficult to reach customers.
In addition, because of difference regarding the Reach and Richness of different media types (Fig.
2), different approaches need to be employed. Reach is a function of how many customers; in this
regard participants can be reached through a given medium.

Richness on the contrary, is defined, (1) bandwidth i.e. the volume of information which can be
sent from a company to customer in a given time (2) the degree of customization of individual
information, and (3) interactivity i.e. the possibility for two-way communication. (Jellasi et al,
2004).

Bandwidth: this dimension refers to the amount of information that can be delivered from the
sender to the receiver in a given time; face to face interaction ensures a broad bandwidth. This
provides an information exchange that exceeds content level, by including tone of the voice,
gestures and facial expression.

Customisation: this dimension refers to provision of personalized service based on the need and
preferences of individual end users, For instance personal advertising agents who have personal
interaction with a customer can provide better customized service than TV, Print, internet etc.
 Interactivity: this means the possibility of having bi-directional communication, traditional
advertising medium like TV, and print tend to be less interactive

The rich marketing information communication, i.e. traditionally information that rank high on all
three aspects requires closeness to the customer and/or channels specifically dedicated to
transmitting the information. Mobile phone can serve as powerful means to reach out to customers
because it provide both expanded Reach and Richness at the same time than other traditional
advertising media(ibid)

Figure 3: The Trade-off between Richness and Reach in Advertising

Mobile device can serve as the most important channel to reach consumers since it simultaneously
provides reach and a number of richness advantages than other media forms. (Marla et.al, 2005)
Mobile advertising had four distinctive aspects: Ubiquitous, detailed user information, integrated
response and channel Personnel channel.

 Ubiquitous Access: Ubiquitous access is more prominent in places like airport lounge, trains and
subways and buses etc. marketers can take advantage of the time
 because during this time people are not occupied with other activities, there fore end-users are
receptive to adverts and other kind of entertainments. users of mobile phone always carries it and
have it on and can be use almost anywhere and this pose a challenge and opportunities to
advertisers. This is particularly prevalent among youth and teenagers who stay in touch with the
peers via SMS .Boston Consulting Groupa consulting group in their study they discovered that
among private users, the categories "having fun" (71%) and "killing time" (55%) is one of the main
motivation for using mobile phones-ranking only behind "keeping in touch with friends"(85%)

 Detailed user information: Mobile campaigns can make use of detail and individual information
about each user (such as sex, age, usage profile) this information facilitates the launching of
targeted campaigns for particular product or service which tailored to suit individual preference
of the user, on the contrary traditional marketing campaigns limited access to customer
information. (ibid)
 Integrated response channel: The mobile devices make it possible for direct interactivity with the
user and response from the user can be received from the medium. This provide two merits, first
it provides opportunity for rich interaction. The ubiquity and interactivity of mobile phones
provide tendency for other media types (such as TV, radio, print or packing) to be interactive. For
example, companies can reach customers through TV and keep in touch with them via mobile
phone. Secondly, marketing companies can measure the impact of their advertising campaigns
and adapt their strategy clearly-an approach which is uneasy to do with traditional (ibid)
 Personnel channel: The personal nature of mobile device make it receive much more attention
from the user therefore it is very powerful than other less personal media platform, if it is well
managed. With mobile phones teenagers can take full control of the communication without any
limitation imposed by home phone and computer as well monitoring by parents.(ibid)

2.2.1 Effective mobile advertising

According to Jelassi et al Mobile advertising can be broken into three delivery categories
– push, pull and dialogue. And a mobile campaign which does not include interactivity will leave
the main asset of the medium untapped

Quite number of big companies such as Century Fox, McDonald and Sony are using wireless
advertising in their marketing mix, particularly to target the youth market, despite the fact that
mobile advertising is a new phenomenon. These campaigns varies depending upon the degree of
active involvement of the advertiser and customer Level of activity can be describe as the
involvement exhibited by both the advertiser and the consumer throughout the period of advertising
campaign. Traditional campaigns in the form of TV spots, radio or print ads, or poster which still
dominate the advertising industry, shows low levels of activity on both consumer and advertisers
side since they made up of one-way, non-interactive advertisement.
Mobile campaigns, on the contrary, exhibit high level of activity on the consumer’s side, the
advertiser or both. High level of activity on the advertising company’s side means that the customer
is reached proactively, whilst a high level on consumer’s side consumers means he/she reacts
actively to an advertisement or newspaper ad, for example, by requesting more information through
the mobile phone (ibid).

Fig 4. Mobile advertising Framework

Mobile push campaigns: Push advertising can be explain as the messages that are delivered
proactively to mobile device users, using this approach companies can use database containing
information about existing customers or purchase externally, to reach the target groups.(Caret,
2002). Both push and pull advertising should be carefully targeted and be of relevance to the viewer
to improve customer response and acceptance. In each instance, user perception is key. The user
should never believe that viewing the advertiser’s message is costing them airtime (ibid)

Because of sensitive nature of mobile phone, it is important for companies to seek consent of
consumers (opt-in) to receive wireless advertising, because this type of campaign requires detail
profiling of the database (Pearse, 2020) in Jelassi et al .By so doing companies can maximize the
effect of advertising budget on those targeted and avoid users which are not interested in the
advertising campaigns .
Mobile Pull campaigns: Pull advertisements are messages served to users as they are navigating
WAP or wireless sites/properties. Pull ads are seen when a user is requesting specific information
from a provider and an advertiser’s message is displayed to the viewer, as banner ads are presented
on the fixed Internet.

Applying a pull approach, advertisers use their traditional marketing media mix such as TV, radio,
print or packaging to promote an interactive mobile campaign. For instance, a telephone number on
a French fries box might invite a customer to participate in a raffle for free food through his mobile
phone. By calling, the consumer gives the “opt-in”—an explicit consent to the campaign—and can
then participate.

Through Pull advertising campaigns customers can request for precise information via their mobile
phones. For example a cinema could put up two phone numbers in order for people to send text-
messages: one for information about movie review and one for movie time. In this case both the
operator and the cinema could equally derive financial benefit from the campaign.

Mobile Dialogue campaigns: A dialogue campaign is different from Pull and Push campaigns in
terms of duration and the intensity of interaction between the customer and advertiser. Simple push
and pull campaigns focused around theme such as game or raffle and may last only for two to four
weeks; dialogue campaigns on the other hand span for several months and include various themes
that build on one another. The main aim is to create long-term relationship with consumers, in order
to have full insight into consumer’s preferences. For instance, mobile advertisers can use mobile
horoscope to ascertain the birthday of consumer which can then be use in sending out personal birth
day greetings at appropriate. The extensive consumer information enables the advertising to
distribute mobile coupons-for example, to introduce new products or undertake market research in
very target fashion
 Fig 5.Taxonomy of Mobile Advertising Campaigns

2.3 Forms of mobile Marketing

2.3.1 Competitions
Competition is the most popular form of mobile advertising. The main advantage of competitions is
that the prize provides users with a tangible reason to contact the relevant company. If the prize is
interesting competitions will have more chance to be successful. Competitions provide mobile users
with a great incentive to make contact with a company

Some of the main reasons of running competition are:

 To launce a service. Text message competition provides a better way to launce a service, especially
mobile one. For example one of the Europe’s leading tour operators ran a SMS competition to
launch its booking service
 To build database. a strong cash incentive is required if a company want add new users to its
existing database
 To limit opt-outs. Companies will be in position to limit number of subscribers wanting to opt- out
if necessary steps is taking to establish pool of subscribers with the chance of winning a prize
(ibid)

 Simple Entry: Simple Entry enables consumers to enter a competition by simply SMS a keyword
associated with the brand to a competition number. Simple Entry can be used with a conventional
media campaign,

 Txt ‘n Win: Text ‘n Win is the way that consumers can enter a branded competition through SMS
and win prizes. Entrants choose between answer options.
 Quiz: Quiz entrants send a brand keyword to an SMS competition number. In reply they receive a
question and then they need to reply with an answer. Correct answers qualify for branded prizes.
Questions can be around the brand, event or promotion

 SMS Voting: An SMS voting competition provides an innovative way for viewers and listeners of
traditional broadcast media such as television and radio to interact express an opinion or vote on
an issue whilst the broadcast is in progress.
According to 1rsWap (2019) There are many benefits from competition such as it can reach a wide
audience wherever they are and receive entries from the hard-to-reach mobile customers. In the cost
effective mobile advertising competition will save on printing, distribution and collection costs, run
more and smaller, targeted competition, In addition it will enjoy short lead times for promotion and
higher flexibility, test promotion methods with controlled roll-out

First they should make a good prize because it will attract people to join competitions. And in order
to make competition works well when combine with other media they should have a cross media
approach. The fact proved that viral effect will be very good and can have from imaginative
competition so make it be imaginative. In addition, a competition should be relevant to the target
audience and make customer interested to the business and products that is offered, Build some
form of competition that make relationship with customer so that company can send further
advertising or invite customer joint to receive more promotions. Last but not least competition
program should care about time to launch, season time or day time that is efficient for the purpose
of company.
To support its new Aqua Cool Spray for Men, Nivea has launched a text to win competition
targeting movies fans. The game has been created by Text Marketer together with Nivea's
marketing agency which planned also a free product sample distribution in 101 cinemas. Mobile
phones owners are invited to send the word AQUACOOL to a special number in order to win a 7
day skiing trip for four people.

2.3.2 Location base service

Location Based Services are services which are enhanced with and depend on information about a
mobile station’s position. This kind of information will not useful if it is not correlated with some
types of services. Location Based Services take up the role to supply the user of these services with
customized information according to their position.

Location based services that connect to a distinct location are highly relevant for local advertising
such as a person can receive a message including directions to the nearest restaurant or train station.
Companies can send advertisements to a registered customer when this customer passes the point of
purchase, illustrating the time sensitiveness of this approach. Experts using location based services
showed that because this service is time sensitive, customers should receive the message when in
front of the shop and not half an hour later.

According to Gravitate, Inc. (in Koeppel 2018) in Maitland et al, there are different kinds of
location base service. The first generation of services relies on the user to provide the location
information manually, for example, as a street address or postal code. The next generation of
services has some built-in positioning ability that is sufficient to provide routing or proximity
information, for example to find nearest restaurant or petrol station. The third generations of
location based services have greater position awareness and thus can also deliver services in the
push service category, such as notification of events or traffic alerts. The fourth generation of
location based services consists of location aware application based on infrastructures, technologies
and techniques that enable context aware information to be seamlessly offered to the end-customer.

Location-based mobile services can be classified in a number of ways. Koeppel (2018) introduced
two broad categories of services: pull and push services. Services in the ‘pull category’ enable users
to ‘pull’ information wherever and whenever required, whereas services in
the ‘push category’ utilize the position of the mobile device to determine whether the user meets the
criteria of a potential customer or service recipient. Maitland et al (2002)

2.3.3 Coupons
Dickinger et al (2018) Companies can send coupons to mobile phones though SMS. There are three
advantages from mobile coupon: targeting based on customer mobile phone numbers; time
sensitivity such as receiving a 20% discount on purchases immediately after entering a shop; and
efficient handling by scanning the coupon’s bar-code at the cash desk. Expert predicts that
consumers will use mobile coupons more often than ordinary paper coupons because the coupons
will be stored in the mobile phones memory and therefore difficult to misplace or forget –
compared to their paper-based equivalents. Customers keep their mobile phone with them and
therefore the coupon with them too.

By sending mobile advertising coupons, advertisers have created the value to message instead of
sending the message with general promotions, they make the message activate and create good
feeling for customers. Mobile coupons is important with the development of location base service
but even the products offers is goods the advertiser still must care about spam and over sending
message problems. In addition mobile coupon is a good way to building customer loyalty so
advertisers can take advantage from a mobile advertising campaign using coupons to add value to
customer loyalty program.

Mobile coupons have two categories: impulse coupons and preselected coupons. Impulse coupons
are highly time sensitive coupons designed by advertisers to increase impulse purchases. Especially
impulse coupons are sent to subscribers who have opted in but they don’t know when they will
receive them. Preselected coupons have been preselected by subscribers who have expressed an
interest in some kind of products. It can be seen as part of a long term loyalty program. (ibid)

2.3.4 Alerts
According to Haig (2018) Alerts fit well with mobile media because they are location or time
sensitive. Advertisers can reach users at any time because mobile devices are carried along by
people wherever they go. Even though text message alerts are practically push - based services, it
can work well with other pull – based forms of mobile advertising. For instance, web portal and
search engine companies Lycos offer shopping alerts via SMS, being a push – based service the
SMS shopping alerts help as a price comparison tool.

Brainstorm UK- based mobile marketing firm, is one company providing advertisers SMS sales
alert service, allowing advertisers to push details of promotion through SMS to interested end- users
who sign up for the service either using a WAP form or Web, by sending a text message,
more importantly Brainstorm’s service allow end-user's to specify the number of text messages to
be delivered weekly and preferred time of delivery

Alert can also be used to deliver real time information such as sport results, stock quote and
business news all for sale purposes it should be permission-based though. It can also be used to get
a chat based - service. (ibid)

2.3.5 Sponsorships
Sponsorships for an already established service is another way advertisers can use to reach mobile
users. The sponsorship money can used to add value to the service or reduce costs for customers.
To be successful with sponsorship activities the advertiser should care about the service, it should
be relevant to the company or brand and the service should target specifics users so that the
company know who subscribe to the service.

According to ebusinessforum, sponsorship for an established service will reduce risk and the
headache of implementing a campaign.

Example of Alert and Sponsorships in Quios, an online community offering services to mobile
phone users worldwide, conducted a program delivering mobile message alerts to Euro 2000 fans.
Euro2000. Quios sent SMS alerts delivered to fans mobile phones. These mobile alerts provided
real-time notification each time a goal was scored as well as notification of the final score. The
alerts were sponsored by Sega Dreamcast, Grolsch Beer and sports.com

Research survey of the Euro Message Alert recipients indicates that users are enthusiastic about
this type of targeted messaging. Highlights of the study results include strong sponsor recall and
click-through rates, suggesting significant potential for building brand awareness. With strong
brand-building capabilities and efficient message delivery, wireless advertising has the critical
components to achieve widespread adoption among advertisers seeking a highly targeted, cutting-
edge medium. The majority of respondents report viewing sponsors in a positive light, recalling
having seen specific sponsor messages, telling their friends and family about the service, and many
actually clicked through to sponsor Web sites as a result of the messages.

2.4. Conceptualization
According to Miles and Huberman frame of references is the main things to be studied, the key
factors, constructs or variables and the presumed relationship between them. The purpose of a
conceptualization is to explain either graphically or narrative, the main things that are going to be
studied. Therefore, the frame of references and conceptualization will guide us when collecting the
data and help us fulfill the purpose of gaining a better understanding how organizations use mobile
advertising in B2C.
 2.4.1 Factors affecting organization’s mobile advertising adoption
In this part, the most important literature to answer first research question: How can the factors
affecting organization’s mobile advertising adoption be described? will be presented below.

Ozakasi (2020) suggestions concerning six key factors that influence company’s decision to adopt
will be used. All of the five factors will be applied to this research, these are.

 Branding strategy

 Facilitating conditions

 Location-based services

 service costs

 Regulatory control

 Cultural barriers

The reason for using this literature to the research is that it covers most important elements which
viewed as determinants in mobile adoption decisions by multinational company, and the study is
very recent and has much relevance in current wireless advertising industry.

2.4.2 Mobile advertising campaigns

In this part, the most important literature to answer second, how can organization’s mobile
advertising campaigns be characterized? We will be presented

with regards to Mobil advertising campaigns, suggestions from Jellasi et al (2020) will be used, the
reasons for this is that advertising campaigns were categorized into Pull , Push and Dialogue.
making it more broader than other types of mobile campaigns reviewed in some of the literatures,
also the piece of work was done in collaboration with 12snap mobile advertising agency in recent
times.

The types of the campaigns that will be applied to this research are.

 Pull advertising campaign

 Push advertising campaign

 Dialogue advertising campaign

2.4.3. Mobile advertising forms
In this part, the most important literature to answer third research questions, how can organization’s
mobile advertising forms be characterized? We will be presented

Haig(2018) suggestions of some forms of mobile advertising. The research will consider all the
forms suggested namely:

 Competition

 Location base service

 Alerts

 Sponsorship

 Coupons

The reason for this literature is that it one of the mobile marketing literature which have discussed
some of issues in detail. The literature is published in 2018 it is relevant in today’s mobile
advertising environment

2.4.4 Operationalisation of Study Areas

The table presents the proposed research Areas to be used in research questions, operational and
theoretical definitions

Table 2.1: Research Areas

Areas Theoretical definitions Operational definitions

Mobile Yunos et al (2018) defined mobile Direct and personalized advertising

advertising advertising as marketing and through wireless devices such as
advertising activities that deliver mobile phones, PDA, Bluetooth,
advertisements to mobile devices Pagers etc irrespective of time and
using wireless network and mobile location
advertising solutions to promote goods
and services and build brand
awareness

Mobile Push Push advertising is categorized as Push advertising may be unsolicited

Campaign messages that are proactively such as special promotions delivered
delivered out to customers using, by SMS to users within the context of
companies can use databases with an existing customer relationship,
existing customer profile, which can or it may be solicited where users
 be bought externally to reach targeted agree to have certain services or
groups promotions pushed to them at

certain times (sponsored sports score

alerts, for example)

Mobile Pull Use of traditional advertising mix such Pull advertising, is an advertising that
Campaign as TV, radio, print or packaging to is attached to content or services that
promote interactive mobile campaigns. users request or “pull” to themselves.
For instance, when a customer
requests the local weather from
mobile service provider, the content
of the response, including any related
advertising, is pull advertising.

Mobile Dialoque Dialogue campaigns tend to last for Dialogue campaign tend to have high
Campaign several weeks and include several degree of duration and interactivity
themes that build on one another . between customer and advertiser, the
aim is to establish long term
relationship with customers

Mobile Mobile advertising forms are tools that Some of the mobile advertising forms
Advertising company use when promoting a s are: location based-service,
Forms product launch, looking for extra competitions, coupons, Alerts,
revenue channel or building a relations sponsorship,
over long term.
 2.4.5 Emerge frame of reference
The conceptual model at the beginning of the chapter enables us to provide framework of theories
to answer the research questions. Each question relates to certain a research area that will serve as
subject to this study. The arrows shown in the figure act as indicators of how the RQs relate are
interrelated.

Location based services

Facilitating Condition

Regulatory controls
Branding Strategy

Cultural Barriers
Service costs

Mobile Advertising Adoption

Mobile Push Mobile Pull Mobile Dialogues

Campaigns Campaigns campaigns

Mobile Advertising Forms

Competitions Location based
services
Coupons Alerts Sponsorship

Fig 6: Framework of mobile adverting

 3. Methodology
In this chapter we will describe what methods we will use and how we will conduct the study. The
chapter contains a description of research purpose, the research approach, research strategy and
research methods, and then it ends with a discussion concerning the reliability and validity.

Research Research Research Data Sample Data

Purpose Approach Strategy Collection Selection Analysis

Validity & Reliability

Fig 7: A schematic presentation of the methodology

3.1 Research Purpose

According to Yin (2018) there are three kind of research: exploratory, descriptive and explanatory.
Exploratory research is used to clarify an understanding of a problem. It has one of the goal is
exploring something and is suitable for when the research problem is difficult to delimit.
Exploratory approach should be applied when the researcher is not certain about the right model to
use and the kind of relations and characteristics that are more suitable. the focus of exploratory
approach tend to be on discovering interesting research questions , develop a system of definition
and reach a more specific problem in Svensson et al

Descriptive approach: the objective is to provide description of various phenomenons and is

recommended when the intention is not to provide casual relationship and when the problem is
clearly structured. The researcher knows what to investigate but the answers are not known by
him/her. According to Wiedersheim et al as referred by Svensson et al based on the objective of the
study, it is normal that a researcher starts with an exploratory stage to determine what the study
should be about and then advance into descriptive and exploratory.

There is little empirical research on SMS-based mobile advertising. We are therefore employing the
descriptive and exploratory approach to the research questions. This will enable us to have
good understanding and description of this study.

The study aims at exploring and describing how SMS-based mobile advertising is use in B2C. In
this sense it can be regard as both descriptive and exploratory.

3.2 Research Approach

Research approach is often either quantitative or qualitative. Both approaches have their strength
and weaknesses and neither approach can be held better than the other. The best research method to
use for a study depends on the study’s research purpose and accompanying research questions. (Yin
1994)

According to Yin (2018), in a qualitative approach emphasis is given to description and discovery
based on data in the form of words rather than numbers. In contrary the quantitative approach, is
signified by that all variables are measured by statistical methods, since the information mostly is
transformed into numerical data

According to Miles and Huberman qualitative research is conducted through an intense and/or
prolong contact with a ‘field’ or a life situation these situations are typically ‘banal’ or normal ones,
reflective of the everyday life of individuals, groups, societies, and organisations. Yin pointed out
that qualitative methods are normally related to case studies where the goal is to get thorough
information and thereby obtain a deep understanding of the research problem

As a result of this discussion, we regard this research as qualitative. The research questions posed
will provide answers that cannot be quantified or measured, since the purpose of this work is to gain
better understanding of how companies use mobile advertising, qualitative method will best suit our
research work.

3.3 Research Strategy

With the focus at qualitative research as a general approach the focus now turn to the research
strategies to collect the data. According to Yin there are five primary strategies in social science:
experiments, survey, archival analysis, history or case study as research strategy. Each strategy had
its own advantages and disadvantages depending on three distinct conditions:

1. The type of research question posed

2. the extent of control an investigator has over actual behavior events :

3. The degree of focus on contemporary as opposed to behavior events:

The purpose of this study is to gain better understanding of mobile advertising in B2C since we do
not require control over behavioral events, experiment is rule out. In addition we want to
describe organizations mobile advertising adoption decisions, and kinds of mobile advertising
campaigns use and the forms that mobile advertising takes in an organization. For this reason
surveys, archival analysis and history are inappropriate for this study. This leaves us with case
study as our research strategy.

Case study is the most suitable method for our study, since we attempted to study contemporary
phenomenon case companies and mobile advertising. We have used interviews, and the questions
of our interview is derived from how and why questions.

According to Yin (2018), a case study can involve a single and a multiple-case study. The single
case study makes an in-depth investigation regarding only one entity, such as an organization or a
decision. However, when making a multiple-case study, two or more entities are studied which
gives the opportunity of comparisons. The case study approach allows the use of a variety of
research methods. More than this, it more or less encourages the use of multiple methods in order to
capture the complex reality under scrutiny.

In our research, both within case analyses and cross case analyses will be conducted. We will begin
by analyzing each case separately and compare it with previous theories. Secondly, the two cases
individual cases will be compared with each other in a cross case analysis, The analysis will follow
the same structure as the frame of reference matrices in the form of table and figures will be used in
order to visualize data collected for a better understanding of the reader as recommended by (Miles
and Huberman,

3.4 Data Collection method

According to Yin (1994) there are six sources of evidence for data collection in case studies :
documentation, archival records, interviews, direct observation, participation-observations and
physical artifacts. Each of these has its own strength and weaknesses. The most appropriate sources
of evidence for out thesis are interviews and documentation.

Some potential disadvantages with an interview are that it can be biased on poorly constructed
questions and there is a risk of reflexivity, i.e. that the interviewee tells the interviewer only what
they want to hear. The following three different types of interviews can be described: open-ended,
focused, and surveys. The most commonly used interview method is the open-ended, where the
researcher asks the respondent unstructured questions, thus allowing the interview to be more of a
discussion. When a focused interview takes place, the respondent is interviewed during a brief
period of time. Still, the character of the interview is open, and it may be conducted by a
conversation between the respondent and the researcher. The third form of interview, survey, is
more of a combination of an interview and a survey. The interview is structured and based on
predetermined questions.

Personal interview provide better opportunity to explain the stated questions, avoidance of
misunderstanding and time for the interview tend to be longer(ibid)

Bryman agues about the advantages and disadvantages of personal interview, telephone interviews.
Personal interviews are like a questionnaire in a face to face setting. The researchers may meet
problems associated with presence of interviewers: age, appearance, race, gender and social class
affect the preparedness of respondent. It‘s very costly if survey is on large scale. For telephone
interview it is cheaper, administered, good answering rate, brief, more easily to supervise. The
effect of personal affect is less and high numbers of interviews are possible. The disadvantage is
researcher can not collect on site information, cannot see the puzzle of respondent though this is
only necessary for social science research.

Data was collected by interviewing representatives from case companies, we used telephone
interview. The case companies we brief about the purpose and nature of the study before the
interview. By undertaking the telephone interview we could explain the questions asked and in a
manner that is understandable to the respondents and in return receive detailed answers within the
allocated time for the exercise (30mins). Telephone interview is the best option because of the
distance between the interviewers and the respondents. The interview guide (Appendix A) was
developed from our frame of reference. This guide was use for the interviewing

3.5 Sample Selection

When conducting research, it is often impossible, impractical, or too expensive to collect data from
all the potential units of analysis included in the research problem. Hence, a smaller number of
units, a sample, is often chosen to represent the relevant attributes of the whole set of units, the
population. Because the samples are not perfectly representative of the population from which they
are drawn, the researcher cannot be certain that the conclusions will generalize the entire
population. (Graziano & Raulin) Sampling techniques provide a range of methods that enable to
reduce the amount of data that need to collect by considering only data from a sub group rather than
all possible cases or elements. Qualitative researchers generally works with small sample that
suitable with purpose of study the cases were drawn from 2 European countries UK and Sweden
because of convenience principle in sample selection. The reason for choosing cases from the
countries is because of developed nature of mobile advertising in these selected countries

According to Romano there is nothing like the exact number of cases to be included and the
literatures recommending case studies are not specific on how many case to be developed the
reseacher is free to make a choice.

In choosing cases representative is not yardstick for case selection, instead the guarded choice of
each should be made in such that it predicts similar results for predictable reasons or produces
contrary outcome for predictable reasons
According to Holm and Solvang (1991) the selection of respondent is crucial. If we interview the
wrong person the research may turn out to be invalid or worthless (ibid).we contacted the company
initially to identify the right person and purpose of the study was explained. In order to achieve the
purpose of the study, it important to get contact with the right person that has good knowledge and
experience of running mobile advertising within the companies. The chosen respondents were
believed to be most suitable. The chosen respondents were Managing Director of 12sap-Lokomobil
Martin Edvall and Managing Director Zocoteam.com and vice president Vice President Europe,
Middle East and Africa Anders Hakfelt.

3.6 Data analysis

According to Yin data analysis involves examining, categorizing, tabulating or otherwise
recombining the collected data. Every investigation should have a general analytical strategy in
order to determine what to analyze and why. Two general strategies proposed: either researcher rely
on the theoretical propositions and following the selected frame of reference, or developing a case
description, that is, use a descriptive way to present data. There are four analyzing techniques
within these strategies:

Pattern matching: comparing empirically based pattern with a predicted one.

Explanation building: A type of pattern matching where the goal is to analyze the case study data
by stipulating a set of casual links about it.

Times- series analysis: multiple measures of the dependent variable in order to look at changes over
time.

Program logic models: combination of pattern-matching and time-series analysis, where the
complex chain of patterns over time is being stipulated

In this study we used a selected frame of reference for the case study research. We also used pattern
matching strategy as by comparing the case study with previous theories presented in the literature
review.

According to Miles and Huberman analysis consists of three flows of activity: data reduction, data
display, and conclusion drawing and verification. The data reduction stage of the analysis helps the
researcher to make the data sharp, sorted, focused, discarded, and organized in order to be able to
draw and verify conclusions. The data display is a way to organize and compress the reduced data
so that it will make it easier to draw conclusions. This phase is useful when the researcher studies
more than one case, a so-called multiple case. Conclusion drawing and verification involve noting
regularities, patterns, explanations, possible configurations, casual flows and propositions.

In this study, we followed these three steps in order to analyze the empirical data. We will use the
within-case analysis and cross case analysis. The data will be reduced through a within-case
analysis where the cases will be compared against the frame of reference. Conclusions from these
analyses will be drawn based on the patterns of similarities and differences, which are discovered in
the data reduction and data display.

3.7 Validity and Reliability

The validity is the most important fact demanded of a measuring instrument. Validity is concerned
with whether the findings are really about what they appear to be about .Direct contact at the point
of the interview means that data can be checked for accuracy and relevant as they are collected.
However, disadvantage is time consuming, interviewer effect, invasion of privacy and resources. In
order to increase the validity of our research we will formulate questionnaires on the basis of
research question and theory. The validity may have been undermined by the fact that the
respondent may have misinterpreted some of the theoretical concepts used in the questionnaires.
Therefore we will try to formulate questions as simple as possible.

Research problems and research objective is derived from intensive review of literature. Feed back
and direction from supervisor will be of great help to ensure the relevancy. The interview guide will
be developed from relevant theory to help get insight of the research questions. Questions will be
checked with supervisors before sending. In addition, we include a covering letter explaining the
purpose of the interview and the benefits of the respondent from the results of the research.
According to Bryman Personal interviews is like a questionnaire in a face- to-face setting. The
researchers may meet problems associated with presence of interviewers: age, appearance, race,
gender and social classes affect the preparedness of respondent. By formulating our questions as
neutrally as possible, we have tried to reduce the risk of follow up ideas. Of course, we will collect
data from several sources to improve the reliability. To enhance the reliability we will try to
describe how we conducted the research as thoroughly as possible.
 4. Data presentation
In the previous chapter, the methodology of the research was discussed; this chapter focuses on the
presentation of data collected from our interview and documentation in two selected case studies. The
companies studied were 12Snap-Lokomobil and MindMatics. The data collected is based on our frame of
reference in chapter two. The data presented follow the pattern of our frame of reference and interview
guide used when undertaking the interview. Each section will start with brief background of the
organization;, the empirical data will be presented in a manner that addresses the three research
questions of this study

4.1.1 Company Presentation

Zovoteam.com is a full-service mobile agency which was formed in 2020. Aside management the
principal investors behind the Zovoteam.com are T-venture, Nova Capital and Holtzbrinck
networks. Currently the company can boast of 120 staff across its offices in Munich, Cologne,
London, Vienna and New York. The company comprises of four distinct business units: mobile
messaging and payment, mobile applications, mobile content and mobile marketing. MindMatics
has worked with over 250 leading companies such as Citi Bank, BMW, T-mobile, Vodafone,
Toyota, Audi and Budweiser to create and deliver innovative media campaigns with lasting value .
 4.1.2 Factors affecting mobile marketing adoption
Branding strategy

Mobile advertising has been recognized as a mean of extending brand awareness, especially for
targeting the youth market, Zovoteam.com has recorded high level of brand recognition and recall
in most of the campaigns organized for brands such as Budweiser, Tic Tac etc. For

For instance, in 2019 Zovoteam.com run a campaign, using SMS and (Multimedia Media Services)
MMS messaging across its brands to create brand awareness among the youth market. “Ferrero's
example of using SMS and MMS in a viral campaign is an excellent way in which marketers can
have their consumers actually increase brand-awareness for them as the brand is forwarded to new
potential customers through their mobile phones.

Zovoteam.com organized another branding strategy campaign for Budweiser a German brewery
company it was On-pack “text-and-win” competition on over 4 million packs of Budweiser bottles
(it means consumers have to text in a phone number provider on the package of the bottle of the
bottles). Also 10 video phones with MMS were placed inside special bottles to be won by
consumers .Among the campaign benefits Budweiser expect is brand awareness, product
positioning and customer database generation.

Facilitating Conditions

Europe has witnessed as high as 99% of mobile phones penetration among the adult population, and
about 20 to 30 % of these mobile phones are 2.5G and 3G(third generation ) these generation of
phones provide the ability to transfer both voice data (a telephone call) and non- voice data (such as
downloading information, exchanging email, and instant messaging).hence Zovoteam.com use,
text, graphics, sound, java application as well as video to send advertising messages to mobile
phones users. In addition to that the improvement of telecommunication infrastructure has
facilitated smooth running of mobile campaigns in Europe. These issues among others has laid a
good foundation for mobile advertising

Service costs

Zovoteam.com and some of its clients see mobile advertising costs as relatively lower as compared
to other advertising media. This because the major costs incurred in campaigns is sending of
standard SMS (for example £1.50 /SMS).Zovoteam.com makes it possible to send SMS messages
in over 200 international mobile networks. Its has highly scalable infrastructure, as well as
partnership with mobile network operators all over the world this ensures first class performance at
favorable prices. Mobile advertising has direct response and measurable in term of feedback, this is
in direct opposite to sums of money that brands spend on trade promotions, trade
discounts, direct mail, TV, newspapers the World Wide Web, and radio which can not be measured
in terms of return on investment and direct response.

Location-based service (LBS)

The believe that end-users location and time can influence their receptiveness to advertisement have
attracted firms like Zovoteam.com and other companies into the industry, In mobile marketing,
LBS applications are advertising or marketing services that use specific location information for
delivering the right message to the right person at the right place and time. Also because millions of
end-users carry mobile phones everywhere that LBS applications can reach virtually anybody, at
anywhere, any time.

For example Zovoteam.com teamed up with Handy Traveller, the award winning travel service, to
make it possible for customers to search out offers, book and pay for holidays all from their mobile
phones. Wap.handytraveller.com includes 20,000 Hotels and the Handy Traveller gives end-users
the added ability to research, reserve and pay for their holidays whilst on the move or already
abroad, through the convenience of their mobile.

In response to sending text message with the keyword ‘Handy’ to (61177) a number provided by
the company, customers are sent an easy-to-use application to their mobile phone, showing what
products and services are available, where and at what rates - including images of suitable hotels,
villas or apartments. End-users can also pay by entering details in an easy to use format on their
phone. Because the comprehensive service allows all the facilities of the website on a mobile,
customers can also change or browse their holiday details whilst abroad, without the need for PC
internet access. Confirmation is simultaneously made by WAP, SMS and Email to ensure receipt
wherever the customer may be.

its an example of how people can benefit from the very broad capabilities of mobile phones , saving
time and effort and maximizing convenience when booking a trip or holiday,” The respondent,
further added that location based service will work better in service bundling using pull campaign
approach instead of push approach.

Regulatory control

In December 2018, the EU Directive on Privacy and Electronic Communications came into force in
the UK .The Directive extends control over unsolicited electronic communications including
commercial email and SMS. The new Directive now seeks to protect people from receiving
unsolicited mobile advertising, and to harmonize such legislation across the EU. In addition
(Mobile Marketing Association) MMA code of conduct has also been very useful in shaping the
mobile advertising industry. “Zovoteam.com is very optimistic as we firmly believe this will be to
the benefit of all legitimate users of the mobile medium. If we look at mobile and email marketing
throughout the EU, where this legislation has been in force for a long time, we find that marketers
are increasingly turning to these innovative channels just like in the UK, so we are
confident that the growth rates we have seen in the past will continue in the UK”. The regulation
had brought sanity in the mobile advertising industry leading to upspring of several agencies
includingZovoteam.com. However not all companies and mobile advertising agencies abide by
these regulations and directives.

Cultural Barriers

There is no cultural difference across Europe in terms of mobile usage. Night clubs, restaurant and
consumer goods market use a lot of “Text and Win”, to drive and call people to action. The
mechanics and usage of mobile phones is not very different across Europe. In Scandinavia, western
and Eastern Europe the same mobile is use in mobile advertising .The respondent does not see any
cultural differences that will say yes or no mobile marketing .the only difference is in the countries
where the media is fragmented, then the companies use mobile medium use to differentiate the
offering since it is new and innovative way of reaching out to customers. In 2019 Zovoteam.com
and Italian new media specialist Babila Srl announce a partnership agreement to help manage the
increasing demands for pan-European marketing campaigns. The partners have already successfully
worked on a pan-European survey campaign. "Through our partner network we can now offer an
advertising that can reach a record of over 11mllion end-users across Europe who will “opt-in”.
Says the respondent.

4.1.3 Effective mobile advertising campaigns

Mobile Push Campaigns

In Mobile Push campaign where the company is already having the customer’s database before
running the campaign, the response rate tend to be as low as 5-7 %.The low response rate is more
pronounce in a campaign where there is no cash and other incentive to attract users to participate
actively in the campaign, eventhough the campaign is permission-based. In some of the campaigns
where cash or other incentive is giving out as way of attracting more users for participation,
responses from the target customers tend to be around 10 % leaving about 90% or more of the
targeted customers not responding as well as engaging in the advertisement. The low response rate
in this sense represents low level of activity which Zovoteam.com have experienced in some of the
push campaigns carried on.

Mobile Pull Campaigns

Pull advertising campaign ensures high level of activity between Zovoteam.com and end-users. It is
often very difficult for the company to know the number of people who sees the advertisement but
any person who responded to the advertisement by contacting Zovoteam.com indicates the level of
interest they have in the campaign. From there on the interaction between the two parties begins. In
most the Pull campaigns, where the mobile campaign is integrated with other medium, such as TV,
internet, print, radio or packaging the degree of interactivity ranks high, this is
because the traditional media have mass reach and mobile is used as the interactive part of the
campaign to strengthen the mass media reach. Since mobile phone is personal and allows one- to-
one interactivity, therefore pull advertising campaign surpass any medium when it comes to
interactivity.

Mobile dialogue Campaigns

Dialogue campaign is very important when it comes to the degree of interactivity from the
advertiser and the recipient of the message; this is because the campaign can is run for a period of 3
to 4 months. Zovoteam.com use software called dialogue manager to endure some degree of
continues interaction between the brand and end-user. “The Dialogue manager offers the
opportunity for agencies or brands to set up test and operate an entertaining customer dialogue live
from the PC. The Dialogue manager realizes its full range of services when, for instance, the simple
transmission of SMS using a keyword mechanism activates personalized MMS, (Interactive Voice
Response) IVR or email processes for which the level of depth and breadth can be specified”.

4.1.4 Mobile advertising forms

Competition

Competition is important in driving participation and having direct responses from end-users. When
prizes are giving out as an incentive to entice consumers participation in the competition the
response rate tend to be on the average of 13 %. Competition can be use to reach out to wider
audience and receive entries from them through their mobile phones during the competition. Some
types of mobile competition used by Zovoteam.com , txt n win, quiz, and SMS voting. In 2018
Zovoteam.com and fashion brand Ted Baker joined forces to launch a Text-and-win competition
label “Text Ted”. In this case the end-user have to text in “Text Ted” through their mobile phones.
One of the aim of to help build up a database of customer’s mobile phone numbers. It is planned
that the numbers will be used in future to promote offers and new products, as part of Ted’s ongoing
marketing strategy.
From August to September 2005, Nivea UK’s premier skin care brand use competition to support
the launch of its new “Pure” deodorant and expand the use of its mobile adverting. The competition
was devised by integrated agency Cognito and the mobile element is managed by
mobileZovoteam.com. Through advertising and promotional events for the launch consumers are
asked to text in their worst ever fashion mistake along with the word ’Pure’. Their number is then
entered into a prize-draw to win ₤1,000 cash to spend on a shopping spree with celebrity stylist
Hannah Sandling. A message is immediately sent back with a thank you from Nivea and a fashion
tip from Sandling.

Mobile coupons

In 2019 Zovoteam.com launch a revolutionary mobile coupon solution with s.Oliver a major
German clothe retailer, utilizing a technology that facilitate sending and scanning of coupons as an
encrypted SMS text message. The coupons were designed and implemented for displayed on all
Siemens (S 35) Upwards and all Nokia phones as well as on all (Enhanced Messaging
Services)EMS and MMS-enabled mobile phones, s.Oliver was able to make significant savings in
its sales promotion, bookings and delivery since all the activities can be executed through mobile
phones. However, the respondent mention that in spite of excitement about mobile coupons, there
has been little interest from their retail client to use it, this is because it require extra piece of
hardware such scan ware also retailers are finding it difficult to integrate the hardware into their
cash collecting system, another major concern of the retailer client is how to limit fraud. Therefore
MindMatics has been used on small trials with specific retail partners such as Cinemas, football
stadium, nightclubs and the like with 10 or 20 outlet in a country where it work on stand alone
solution .

Alerts

MindMatics used alerts as one its campaign tools, for example during Europe Media Monitor
(EMM) project in 2019,Zovoteam.com was contracted by European Commission to process SMS
alerts to Commission delegates, The alerts give delegates instant updates on news and events at the
Commission whilst they are out and moving about, it significantly helped to maintain links between
the Commission body and its members. Zovoteam.com provided an automatic driven service that is
available 24 hours a day, 7 days a week, and 365 days a year. There was also a web-based function
– The Rapid News Service – that allows operators at the EMM to manually send selected alerts to
specific recipients

Sponsorship

Sponsorship is very important in running major campaign for different brands. In a campaign
organized by Zovoteam.com in Germany during May and June 2019 for Burger king restaurant,
companies such as Sony Ericson and T-mobile were invited by Zovoteam.com to be part of the
campaign. Sony Ericson provided phones as prizes and T-mobile sponsor some of the messaging, in
return these companies also get their brand exposed to the specific target market end-users through
Burger king website and other materials such as Burger king TV channel, posters, Banners , King
Magazine and POS. The sponsorship as part of mobile advertising is very important because such a
big campaign will cost Burger king about Euro 0.5Million. By having co-sponsors in the campaign,
the budget burden is reduced and in the long run all the partners reach the targeted customers.
Another area of sponsorship which Zovoteam.com is looking at is sponsorship on mobile portal
where there will be sponsored links from partner companies.

4.1.5Company Presentation
12snap-Lokomobile in which the respondent is working is a leading Mobile marketing company in
Scandinavia with headquarters in Stockholm. 12snap-Lokomobile will be tapping into the entire
Scandinavian market (Sweden, Norway, Denmark, and Finland), which is characterized by the
highest mobile penetration numbers as well as the highest acceptance of mobile services. Now
12snap-Lokomobile is an expert in innovative marketing and entertainment for mobile phones. The
company utilizes the creative and technological opportunities of mobile phones as the most
advanced and personal communication medium of everyday life by efficiently combining its know-
how in mobile applications, mobile loyalty, and mobile marketing.
.4.2.2 How can the factors affecting organization’s mobile advertising adoption be
described?
Branding strategy

Most of advertising campaigns has underlying goal of branding, for which mobile medium is no
exception, This is because mobile campaign involve a lot of content and this content is branded and
stay in the users phone until it is deleted, that means the brand sit in the user phone as long as the
phone is functioning, some users goes to the extent of forwarding the message to other users
thereby spreading the brand at no cost to the company in question. In may 2019 when Swedish
Telecommunication Company Telia wanted to expand their brand, their mobile portal named “Telia
Go” was re-branded to “Surf Port”. This campaign was created by 12snap-Lokomobil to promote
the “Surf Port” as a way of creating awareness of their brand in the youth market.

Facilitating conditions

Continental Europe has necessary infrastructure and conditions necessary for running mobile
advertising campaigns, more so there are ongoing research and investment by Telecommunication
companies to improve upon the necessary infrastructure for effective and efficient running of
mobile marketing. In view of the respondent, Sweden had been more technology focused on mobile
technology and that had rendered it to be slightly behind other countries like Finland where there is
much effort to utilize the mobile technology to deliver wireless advertising to the specific target
market. Finland is ahead most of the European countries in area of mobile advertising, the
respondents see the general conditions in Europe to be conducive for mobile advertising campaigns.

Location-based service (LBS)

The respondent view location-based service as an innovative and better way to provide personalized
advertising messages depending on the end-users position. This is because the use of GPS in
mobile application allows companies to reach out to end-users wherever anywhere, anytime.
Companies want to provide personalized service to consumers at any time, anywhere to free
consumer from the burden of sticking to computers, TV ... before receiving advertising message.
However the economic benefits from LBS are not encouraging due to low demand for such
services, but in future companies will start reaping potential benefits of LBS when there is
increasingly aware of this services and consumers begin to patronize such services.

Service costs

Reaching profitable and potential target group through traditional media is becoming less cost-
effective and efficient this is where mobile device comes in as a unique advertising channel. Mobile
media is considered to be inexpensive way sending advertising messages to potential customers,
what need to be done is to track down the cost. In mobile advertising two types of
 costs are combined into one. These are creative cost which in traditional advertising it is incurred
by advertising agency and media cost which is buying air time, or print space. In running mobile
campaign the major cost is the messaging cost which by estimation is far below the amount of that
will be incurred in running other advertising media campaign. However the cost of a mobile
advertising campaign can also be determined by its nature, that is whether the campaign is complex
or simple campaign one

Regulatory control

12snap-lokomobil has been implementing EU law on banning mobile phone spamming since 2019.
This law is now a Swedish national law. These kinds of regulations and directives are very
important for this new medium. This is because if companies don’t abide by the rules and
regulations regarding good practice in this industry the mobile medium can die quickly. As a result
of these regulations all mobile marketing activities carried out by 12snap-lokomobil are permission-
based. For example during the boom of mobile marketing some years back, certain companies in
UK where spamming peoples mobile phones under pretext of sending advertising messages, that
practice angered a lot of mobile phone users and there was heated debate as to whether mobile
campaigns should be allowed at all, after series of discussions and deliberations EU law and
regulations were enacted to streamline and regulate the mobile advertising industry in Europe

Cultural barriers

The respondent view Europe and Sweden particular to have similar attitude when it comes to
receiving legitimate wireless advertising messages, cultural differences does not determinate mobile
usage, Swedish multicultural populace as well as the natives seems to have homogenous desire to
own mobile phones, the youth market in particular which form the formidable force in the mobile
market have the similar cultural preferences when it come to owing and using phones. Therefore
cultural barrier does not influence the use and adoption of mobile medium.

4.2.3 How can organization’s effective mobile advertising campaigns be

characterized?
Mobile Push Campaigns

12snap-Lokomobil normally carries out push campaign for some clients, this type of campaigns is
more preferred by mobile operators, this is because this kind of clients already has phone numbers
and profile of the end-users in their database. Therefore the advertising messages is push on the
end-users after they “opt-in”. The company makes every effort to reach out to consumers with their
messages but because of poor quality of the database the responses from push campaigns falls
below expectation. Sometime the response rate is about 4-6 %. The reason being that the level of
activity from the end-users is very low hence the poor response rate.
Mobile Pull Campaigns

According to the respondent, 12snap-Lokomobil normally carried out pull advertising campaign for
most of its clients in fast moving consumer goods such as Pepsi, Macdonald. The campaign is pull
from pack of the product e.g. MacDonald’s French fries box or on Pepsi Cola bottle

In this case the campaign is Pull by the end-user. In most cases the advertising message is put in
print media or on bottle or a pack to attract the consumer to participate by phoning a number on the
package or send a text message. The duration of the campaigns also depends on the kind of
campaign that is if it is “unpacked” or “packed” campaign, as well as the sources from which the
message is pulls from. For instance a campaign organized for Pepsi lasted for approximately for
two months. Pull campaign gives the company the chance to integrate other advertising channels
such as TV, radio into the campaign. In this case the end-user willingly participates in the
campaign. The average rate from such campaigns is normally about 27 %. The reason being that
pull campaign provides better interactivity between the company and the consumer.

Mobile dialogue Campaigns

The respondent ‘s view of dialogue campaign to be very popular in future. The reason being that
both push and pull campaigns can be turned into Dialogue if the duration the campaign is extended
for considerable period of time. Also because of the lengthy interaction between 12snap-Lokomobil
and consumers there is high level of activity from both parties during such campaigns.

4.2.4 How can organization’s mobile advertising forms be described?

Competition

According to the respondents it is difficult to categorized mobile campaigns into separate entities or
static. But 12snap-Lokomobil creates and run competition base on the suitable and existing
technology as well as the demand from its clients.

Competitions is seen as forms of mobile advertising in fast moving consumer goods market. This is
because Competition is easier to organized in mobile medium than in traditional medium and can
have greater impact on the users. It is also easier for the end-user participate in it mobile
competition than sending physical coupon as a means of participating in a competition. Meanwhile
content of the message is very important in the competition. Since it will be in users phone for some
after the competition is ended. 12snap-Lokomobil has organized number of campaigns for major
brand like MacDonald’s and Pepsi using competition.
Coupons

12snap-Lokomobile use mobile Coupons as form of advertising for some its clients, currently
sending mobile coupons is welcomed in Sweden, and there is no problem sending end-users mobile
coupons and having them scan able in point of purchase system. Mobile coupons provide the
incentive for customers buy from the company because of the discount they receive after entering
the shop but, but one problem has to do with the redemption of the coupons

Currently 12snap together with icoupon are offering retailers and brands the ability to transmit bar
codes as picture messages which can be scanned and integrated into EPOS (Electronic Point of
Sale) systems. Retailers and brands will now have access to a new mobile marketing mechanic and
CRM.

Alerts

12snap-Lokomobil use alerts in some of its campaigns, because it provide instant messages. For
example in a campaign organized by 12snap for MacDonald’s. The main Objective of the campaign
was to raise awareness of the “Monsters” Inc film through mobile marketing and to develop the
McDonalds “txtclub” for CRM.

Consumers were simply asked to text in their monster code to a long number and if they won a
prize they were alerted back. 12snap-Lokomobil views the use of alert as very effective tool in
mobile campaign.

Sponsorship

According to the respondents sponsorship as a form of mobile advertising is increasingly becoming

very important because of the cost in major advertising campaigns, in most of the large campaigns
12snap-Lokomobil organized for different kinds of major brands, large companies such as mobile
operator or mobile phone manufacturers are being invited to sponsor part of the mobile advertising
campaigns. This is because the campaign can cost from £ 10,000 to several million of pounds. So
company feels it is important to invite partners join in running such campaigns. The sponsoring
companies also do get the chance to market their products or service to the end-users who
participate in the campaign.
 5. Data Analysis
The data collected in this study was presented in the previous chapter; in this chapter the data analysis will
be presented. First within case analysis will be look at where data from each organization are separately
compared with frame of reference to investigate whether variance with theory or not. Secondly, a cross
case analyses are presented where comparison is made between the two cases based on the data
collected. The analyses are presented in a way of addressing the research questions, during the analyses;
we will explain and discuss possible tendencies and trend that are found in the empirical data.

5.1.1 How can the factors affecting organization’s mobile advertising

adoption be described?
Branding strategy

Okazaki (2020) maintained that branding strategy is one of the main reasons for company’s
decision to adopt mobile advertising. In the case of Zovoteam.com the respondent also said that
branding strategy happen depends on the degree that company wants to show. With mobile
advertising company can improve its image and brand awareness of products will increase through
the utilizations of mobile advertising. Awareness of company also increases by using mobile
advertising. Marketers will make use of localized campaigns more effectively

Facilitating conditions

Okazaki (2020) suggest that facilitating conditions is one of the most important determinants of
adopting mobile internet and the integration of competing standards and fragmented systems across
countries, cross-network support for SMS, and higher connection speeds as well as web- enabled
handsets with would significantly affect mobile advertising adoption. In the case of Mindmatics it
showed that these conditions are important for mobile campaigns, these enabling facilitating
conditions and availability of web-enabled mobile phones with 2.5G and 3G functionality have
positively impacted on the case decision be drawn into mobile marketing industry
Location-Based service

According to Okazaki (2020), because of the unique feature of mobile internet, mobile phone
manufacturers and service providers are increasingly attracted by commercial viability of applying
the satellite-based global positioning system (GPS) to the wireless service

Service costs

(Leppaniemi, 2020) assertion that within a few seconds companies can undertake marketing
campaigns targeting tens of thousand of people with a proportion of the costs compared to other
direct medium such as telephone and direct mail.

In the case Zovoteam.com shows that mobile advertising costs is relatively lower and they consider
it as the best alternative to other traditional advertising medium

Regulatory control

Facilitating conditions as Okazaki (2020) suggest that is one of the most important determinants
together with ease of using wireless internet. In the light of this the integration of competing
standards and fragmented systems across countries, cross-network support for SMS, and higher
connection speeds are all necessary conditions greater transmission of mobile advertising.
Regulatory control being one the determinants of mobile advertising adoption

The rule show that companies sending commercial messages to mobile phones will need to
demonstrate that recipients have clearly opted-in to receiving the intended message and will need to
disclose the name of the sender or the permission holder as well as information about how to
unsubscribe to future messages. Generally welcomed throughout the advertising industry as an
important step towards higher quality and clearer guidelines for electronic direct marketing, it's also
important that the punitive powers the Directive provides for are exercised.

Mobile advertising is still seen as a new advertising channel and companies are worried about the
potential impact of "spam" on their brands. In fact not everyone wants to follow the rule and try and
work outside the rules. However, companies specializing in mobile marketing have a strong self-
interest in doing business in the correct manner and will adhere to the legislation and best practices
in order to protect and grow their core business.

Zovoteam.com is very optimistic this will be to the benefit of all legitimate users of the mobile
medium. If look at mobile and advertising throughout the Bangladesh, where this legislation has
been in force for a long time, we find that marketers are increasingly turning to these innovative
channels
Cultural barriers

Okazaki( 2020) mention that culture barrier can be serious obstacles to adopting mobile advertising,
since single campaign may not yield same result in different market. In the case of Zovoteam.com
the respondent said that most of the Europe country they do the similar thing and there have no
clear in culture difference

In adoption mobile advertising it is not much different in culture effect but there are more different
in term of technique factor. In US with the issue of some customers are charged to received sms so
it will be limited to use cross network sms. In Japan use I mode not many people using sms so it
will be difficult to send sms also instead of online advertise

The information obtained from Zovoteam.com is presented in table 5.1

Table 5.1: Factors affecting mobile advertising adoption

Factors influencing Theory ZOVOTEAM.COM

company’s mobile
advertising adoption

Branding Strategy found

Brand awareness of products will increase

through the utilisation of mobile advertising
awareness of company and marketers will make
use of localised campaigns more effectively The
development of mobile advertising make the
mobile device the leading advertising medium in
Europe

Facilitation conditions Most European consumers have access to mobile found

handsets with internet connection

Technological resources required to use wireless

communications are available in most of the EU
countries

Because of mobile communications, marketers

will make use of uniform promotional
 campaign in several markets

Current connection speed of wireless

communications is appropriate for advertising
purposes

Location-Based service To maximise the effectiveness of mobile found

advertising, “location” is a key factor to consider
Government regulation of wireless messaging
will become stricter in the future

Service costs (Leppaniemi, 2020) assertion that within a few found

seconds companies can undertake marketing
campaigns targeting tens of thousand of people
with a proportion of the costs compared to other
direct medium such as telephone and direct mail.

Regulatory control Individual governments’ control of the found

information flow within and across the continent
will become a major problem

Okazaki (2020) suggests that regulatory control

is being one of the important determinants of
mobile advertising adoption

Cultural barriers The use of mobile advertising across markets Not found
will be limited by linguistic differences

Within the next decade, mobile advertising will

overcome cultural differences in European
markets
5.1.2 How can organization’s effective mobile advertising campaigns be
characterized?
Push campaigns

According to Jellasi et al (2020) mobile advertising show the level of activity on the part of the
consumer and advertiser. According to respondent they use push advertising to send out the
message when launch new product to attract people and then have reply from people create
dialogue. The case findings shows that the level of activity from the consumer is low, because the
effort from company to send out message and waiting to reply from consumer and usely it is low
respond rate. On the other hand the level activity from the advertiser is high because the advertisers
make every effort to contact the customer by way of sending advertising messages using existing
customer’s database so company rarely using push advertising campaigns. It is match with the
model mobile advertising framework as show in the literature review.

Pull advertising campaigns

As theory from Jellasi et al (2020) suggest that with advertising pull campaigns advertisers use
traditional marketing media such as TV, radio, print or packaging to promote an interactive mobile
campaign. And customers can request for precise information via their mobile phones. According to
respondents using pull base advertise you will not know how many people will take part in but
anyone that contact with show that they are interested in

Pull use combination with other medium, use mobile as return way to contact with customer

Therefore pull advertising campaigns showed high level of activity from consumer because
consumer is willing to join the campaigns depending on the attractive of the campaigns that
company showed, consumer actively take part in the campaign by phone or sms in order to
participate in the campaign, the result is high response rate and high level of activity from the
consumer.

Dialogue campaigns

As Jellasi et al (2020) suggest that the main aim of dialogue campaigns is to create long-term
relationship with consumers. Howerver in the the case findings shows that company rarely use
dialogue campaigns casause there is high level of activity on the part of both advertiser and the
consumer and the dialogue campaign does not create long term relationship between MindMatics
and the consumer. Therefore this result is not match with the theory.

The information obtained from Zovoteam.com is presented in table 5.2

Table 5.2 Mobile advertising campaigns

 Effective Mobile Theory ZOVOTEAM.COM
advertising campaigns

Push campaigns Push advertising is categorized as messages Found

that are proactively delivered out to
customers using, companies can use
databases with existing customer profile,
which can be bought externally to reach
targeted groups (Carat Interactive, 2020)

Pull campaigns Use of traditional advertising mix such as Found

TV, radio, print or packaging to promote
interactive mobile campaigns(Jellasi et al,
2019)

Dialogue campaigns Dialogue campaign tend to have high degree Not found
of duration and interactivity between
customer and advertiser, the aim is to
establish long term relationship with
customers

5.1.3 Mobile advertising forms

Competitions

According to Haig (2018) Competitions provide mobile users with a great incentive to make
contact with a company. And there are some of the main reasons of running competition are:

 To launce a service. Text message competition provides a better way to launce a service, especially
mobile one.
 To build database. a strong cash incentive is required if a company want add new users to its
existing database
 To limit opt-outs. Companies will be in position to limit number of subscribers wanting to opt- out
if necessary steps is taking to establish pool of subscribers with the chance of winning a prize
(ibid)

According to 1rsWap (2019) There are many benefits from competition such as it can reach a wide
audience wherever they are and receive entries from the hard-to-reach mobile customers. In the cost
effective mobile advertising competition will save on printing, distribution and collection costs, run
more and smaller, targeted competition, In addition it will enjoy short lead times for promotion and
higher flexibility, test promotion methods with controlled roll-out

In the case of Zovoteam.com it showed that competition is very important in driving participation
and it can be also use to build database and launch a service. For example one campaigns
Zovoteam.com and fashion brand Ted Baker have joined forces to launch a “Text Ted” text-and-
win competition to help build up a database of customer mobile numbers. It is planned that the
numbers will be used in future to promote offers and new products, as part of Ted’s ongoing
marketing strategy.

Location-based service

Location Based Services take up the role to supply the user of these services with customized
information according to their position. (Ververidis et al, 2020). There is campaign MindMatics
teamed up with Handytraveller to provide location-based service through end-users mobile phone.
However according to the respondents Zovoteam.com now rarely provide this kind of services

Coupons

Dickinger et.al (2020) theory suggest that companies can send mobile coupons to mobile phones
through SMS, by way of targeting based on customer profile, time sensitivity such as receiving
discounts and efficient handling of most of the transaction through the mobile phones. Utilising a
new technology that enables the sending and scanning of a coupon as an SMS, MindMatics offers
an easy-to-use, stand-alone solution for Point-of-Sale couponing and ticketing.The solution is ideal
for use by retail chains, fast food and service businesses, but can also be used as a ticketing solution
for concerts, events, cinema or theatre. The retailer can make significant savings in their sales
promotion, bookings and delivery as they can all be handled through the mobile phone. It is match
with theory howerever according to respondent this form is quite expensive for retailer companies
so it will be grow in the future.

Alerts

Haig (2018) suggests that Alert can also be used to deliver real time information such as sport
results, stock quote and business news all for sale purposes. It can also be used to get a chat based
- service
Zovoteam.com has done some alerts form but not for advertise. For example MindMatics processed
SMS alerts to Commission delegates, as part of the Europe Media Monitor project. The alerts give
delegates instant updates on news and events at the Commission whilst they are out and about,
significantly helping to maintain links between the Commission body and its members.

Sponsorship

According to Haig (2018) sponsorship for an already established service is another way advertisers
can reach out to mobile phone users, the amount of money saved can be used to add value to the
service or reduce costs for customers.

In Zovoteam.com case showed that sponsorship is very important in carrying out major campaigns
for different brands, because of the costs to run a big campaign is very much so it is necessary to
using form of sponsorship. Example from the campaigns that Zovoteam.com ran an exciting
promotion for staff at mobile giant Vodafone to help them get involved in the company’s
sponsorship of the Ferrari Formula One team. Using a concept and creative organized by Sales
Promotion agency Dialogue, employees at Vodafone were encouraged to use their mobiles to
photograph themselves at the various stages of the 18 race Formula One season around the world.
They then sent the pictures back to Vodafone - once received the images were displayed on a
company website, which can be viewed by other staff and participants from anywhere in the world.

The information obtained from Zovoteam.com is presented in table 5.3

Table 5.3 Forms of Mobile advertising

Forms of mobile Theory Zovoteam.com

advertising

Competition Competitions provide mobile users with a great Found

incentive to make contact with a company. And
there are some of the main reasons of running
competition are: To launce a service, to build
database, to limit opt-outs.

Location-Based Location Based Services take up the role to supply Found

service the user of these services with customized
information according to their position.
 Coupons Dickinger et al theory suggest that companies can Found
send mobile coupons to mobile phones through
SMS, by way of targeting based on customer
profile, time sensitivity such as receiving discounts
and efficient handling of most of the transaction
through the mobile phones.

Alerts Haig suggests that Alert can also be used to Found

deliver real time information such as sport results,
stock quote and business news all for sale
purposes. It can also be used to get a chat based –
service

Sponsorship According to Haig sponsorship for an already

established service is another way advertisers can
reach out to mobile phone users, the amount of
money saved can be used to add value to the
service or reduce costs for customers.

5.2 Within case-Analysis of 12snap-Lokomobil

5.2.1 Factors affecting mobile advertising
Branding strategy

Okazaki (2005) maintained that branding strategy is one of the main reasons for company decision
to adopt mobile advertising. According to respondents in Brandmyth most of advertising campaigns
are underlying goals of creating brand awareness and building branding strategy. This is because
mobile campaigns involve developing good content and this content is branded and stay in the users
phone which means the brand sit in the user phone even after the campaign activities. In most of the
mobile advertising campaigns which 12Snap- Brandmyth run for dhaka, and Pepsi there was high
response rate, exact people participate were recorded and as well as good brand awareness

Facilitating conditions
Company suggest that facilitating conditions is one of the most important determinants of adopting
mobile internet and the integration of competing standards and fragmented systems across
countries, cross-network support for SMS, and higher connection speeds as well as web- enabled
handsets with would significantly affect mobile advertising adoption.

Location-Based service

Because of the unique feature of mobile internet, mobile phone manufacturers and service
providers are increasingly attracted by commercial viability of applying the satellite-based global
positioning system (GPS) to the wireless service

The interviewee claims that Continental Europe has necessary infrastructure and conditions
necessary for mobile advertising campaigns to take off, with number of new mobile phones having
web enable functionality couple with other standards like Global Position for mobile
communication (GSM) Digital Enhanced Cordless Communication System (DECS), Audio and
Broadcasting Platforms and (ABP) and Universal Mobile Telecommunication Systems (UMTS)
facilitate mobile campaigns. Sweden in particular had been more technology focused and that had
rendered to be slightly behind country like Finland where there had been success story of mobile
advertising campaign, however the general condition is tend be conducive for mobile campaigns

Service costs

Service costs are one of the important factors in wireless advertising adoption. And Leppaniemi
(2019) suggest that within a few seconds companies can undertake marketing campaigns targeting
tens of thousand of people with a proportion of the costs compared to other direct medium such as
telephone and direct mail. In the case of Lokomobil 12Snap according to the respondents mobile
media is not considered to be expensive, what need to be done is to track down the cost. There two
types of costs: creative cost which in traditional advertising, advertising agency do that and media
cost which buying air time, or print space. The campaigns can also be simple or complex, that will
determined the cost, however in mobile campaign the major cost is the messaging cost which is less
than other media cost.

Regulatory control

Company suggests that regulatory control is being one of the important determinants of mobile
advertising adoption. In case of 12snap Brandmyth they have been implementing EU law
on banning mobile phone spamming which is now Swedish law. The regulation is very important
for new medium, because if companies don’t abide the regulations the medium can die quickly.

Cultural barriers

According to Okazaki (2020) the use of mobile advertising across markets will be limited by
linguistic differences. Within the next decade, mobile advertising will overcome cultural
differences in European markets

In the case of Brandmyth 12Snap that cultural difference in Sweden as well as Europe does not
have significant influence on mobile usage. The information obtained from 12snap-Lokomobil is
presented in table 5.4

Table 5.4: Factors affecting mobile advertising

Factors influencing Theory BRANDMYTH

company’s mobile
advertising adoption

Branding Strategy found

Brand awareness of products will increase

through the utilization of mobile advertising
awareness of company and marketers will make
use of localized campaigns more effectively The
development of mobile advertising make the
mobile device the leading advertising medium in
Europe

Facilitation conditions Most European consumers have access to mobile found

handsets with internet connection Technological
resources required to use wireless
communications are available in most of the EU
countries Because of mobile communications,
marketers will make use of uniform promotional
campaign in several markets Current connection
speed of wireless communications is appropriate
for advertising purposes
 Location-Based service To maximise the effectiveness of mobile No information
advertising, “location” is a key factor to consider
Government regulation of wireless messaging
will become stricter in the future

Service costs assertion that within a few seconds companies found

can undertake marketing campaigns targeting
tens of thousand of people with a proportion of
the costs compared to other direct medium such
as telephone and direct mail.

Regulatory control Individual governments’ control of the found

information flow within and across the continent
will become a major problem Okazaki suggests
that regulatory control is being one of the
important determinants of mobile advertising
adoption

Cultural barriers The use of mobile advertising across markets Not found
will be limited by linguistic differences

Within the next decade, mobile advertising will

overcome cultural differences in European
markets

5.2.1 Effective Mobile advertising campaigns

Push advertising campaigns

According to Jellasi et al mobile advertising show the level of activity on the part of the consumer
and advertiser. The case finding showed that the level of activity from consumer is low, because
consumer does not initiate the interaction so the response rate from such campaigns is very low. On
the other hand 12snap-Lokomobil makes every effort to deliver messages to the mobile phones of
consumer using existing customers’ database showed that they put lot of effort on their activity so it
fit with the model mobile advertising framework as showed in chapter 2.

Pull advertising campaigns

As theory from Jellasi et al suggest that with advertising pull campaigns advertisers use traditional
marketing media such as TV, radio, print or packaging to promote an interactive mobile campaign
and customers can request for precise information via their mobile phones Pull advertising
campaigns findings from the case reveals that the level of activity from the end- user is very high,
the reason being that consumer actively pull the adverts toward themselves by text in or calling a
phone provided by the Brandmyth in oder to participate in campaigns, this initiative from the end-
user account for high response rate as well as high level interactivity between end-user and
Brandmyth.

Dialogue advertising campaigns

As Jellasi etal suggest that dialogue campaign tend to have high degree of duration and interactivity
between customer and advertiser, the aim is to establish long term relationship with customers. In
case of 12Snap lokomobil both push and pull campaign can turn into dialogue campaigns but at the
moment they are not working with this type of campaigns. Therefore the case is not fully match
with theory

The information obtained from Brandmyth is presented in table 5.5

Table 5.5 Mobile advertising campaigns

Effective Mobile Theory BRANDMYTH

advertising campaigns

Push campaigns Push advertising is categorized as Found

messages that are proactively delivered
out to customers using, companies can
use databases with existing customer
profile, which can be bought externally
to reach targeted groups .

Pull campaigns Use of traditional advertising mix such Found

as TV, radio, print or packaging to
promote interactive mobile campaigns.

Dialogue campaigns Dialogue campaign tend to have high Not found

degree of duration and interactivity
between customer and advertiser, the
 aim is to establish long term
relationship with customers

5.2.3 Forms of Mobile advertising

Competitions

According to Haig Competitions provide mobile users with a great incentive to make contact with a
company. And there are some of the main reasons of running competition are: To launce a service,
to build database and to limit opt-outs. According to 1rsWap There are many benefits from
competition such as it can reach a wide audience wherever they are and receive entries from the
hard-to-reach mobile customers. In the cost effective mobile advertising competition will save on
printing, distribution and collection costs, run more and smaller, targeted competition, In addition it
will enjoy short lead times for promotion and higher flexibility, test promotion methods with
controlled roll-out

In Brandmyth competitions is considered as one of the most important form of mobile advertising,
especially for clients in fast moving consumer goods. This is because it is easier to organized and
have great impact on consumers since they find it easier to participate in. some of mobile
competition used are Txt n win, SMS voting, quizzes.

Location-based service

Location Based Services take up the role to supply the user of these services with customized
information according to their position. .12snap-Lokomobil rarely use this type of service to
consumer on behalf of its clients

Coupons

Dickinger theory suggest that companies can send mobile coupons to mobile phones through SMS,
by way of targeting based on customer profile, time sensitivity such as receiving discounts and
efficient handling of most of the transaction through the mobile phones.

Alerts

Haig suggests that Alert can also be used to deliver real time information such as sport results, stock
quote and business news all for sale purposes. It can also be used to get a chat based
Sponsorship

According to Haig sponsorship for an already established service is another way advertisers can
reach out to mobile phone users, the amount of money saved can be used to add value to the service
or reduce costs for customers.

Sponsorship showed in the brandmyth as one the important forms of mobile advertising
campaigns, especially in large campaigns for different kinds brands, large companies like mobile
operator or mobile manufacturer are invited to sponsor the advertising campaigns. Awareness about
their brands service is being created therefore they pay part of the campaign costs, in this they are
able to save the money which hitherto have been use for the campaign to create more added value
service to their customers

The data obtained from Brandmyth is presented in table 5.6

Table 5.6 Forms of Mobile advertising

Forms of mobile Theory BRANDMYTH

advertising

Competition Competitions provide mobile users with a great Found

incentive to make contact with a company. And
there are some of the main reasons of running
competition are: to launce a service, to build
database, to limit opt-outs.

Location-Based Location Based Services take up the role to supply Found

service the user of these services with customized
information according to their position.

Coupons Dickinger theory suggest that companies can send Found

mobile coupons to mobile phones through SMS,
by way of targeting based on customer profile,
time sensitivity such as receiving discounts and
efficient handling of most of the transaction
through the mobile phones.

Alerts Haig suggests that Alert can also be used to Found

deliver real time information such as sport
results, stock quote and business news all for sale
 purposes. It can also be used to get a chat based -
service

Sponsorship According sponsorship for an already established

service is another way advertisers can reach out to
mobile phone users, the amount of money saved
can be used to add value to the service or reduce
costs for customers.

5.3 Cross Case Analysis

5.3.1 Factors affecting mobile advertising adoption
Branding strategy Brand awareness of products will increase through the utilization of mobile
advertising awareness of company and marketers will make use of localized campaigns more
effectively The development of mobile advertising make the mobile device the leading advertising
medium in Europe. Both companies Zovoteam.com and Brandmyth agree about the affect of
branding strategy in using mobile advertising.

Facilitating conditions both companies in the case studies agree that facilitating conditions
prerequisite for effective implementation of mobile advertising campaigns. Most European
consumers have access to mobile handsets with internet connection Technological resources
required to use wireless communications are available in most of the EU countries Because of
mobile communications, marketers will make use of uniform promotional campaign in several
markets Current connection speed of wireless communications is appropriate for advertising
purposes.

Location-based service is seen as reason that has influence the using of this type of campaign
however this kind of campaign is rarely use by the two cases up to now especially Lokomobil the
respondent did not give any information about this factor

About service cost both cases see that mobile advertising cost is quite cheaper compared with
traditional advertising media so there is no difference between the two cases regarding service
costs.

Regulatory control is the same for both cases. They both see regulatory is important to follow when
adopt mobile advertising because the mobile medium is new technology so if they don’t follow
regulation the new medium will die quickly.
Cultural barriers are not important factor for both of the cases. Each company sees cultural barriers
as having no significant influence on the use of mobile phone in communication up to now.
Therefore is no deference between to cases.

The data obtained from the cross-case analysis is presented in the Table 5.7

Table 5.7 Cross-case Analysis of factors affecting mobile advertising adoption

Factors affecting mobile 12snap-Lokomobil MindMatics

advertising adoption

Branding Strategy Yes Yes

Facilitation conditions Yes Yes

Location-Based service No information Yes

Service costs Yes Yes

Regulatory control Yes Yes

Cultural barriers No No

5.3.2 Mobile advertising campaigns

Push mobile advertising campaigns Brandmyth and Zovoteam.com they both see push mobile
advertising campaigns is not much efficiency because it has low response rate, low level of activity
on the part of the consumer and they must spend more effort to push consumer and the data base
used to very poor. In addition cost to buy database from other companies is too high to adapt with
their campaigns.

Pull advertising campaign both companies showed that they like to do the pull advertising
campaigns regarding the characteristic of campaigns; it shows very high response rate and high
level of activity from consumers. They can conduct such kind of campaigns with other medium and
pull the consumer take part in the campaigns actively. In this way what they much do is create an
attractive program to attract more consumers.

Dialogue advertising campaign In both case they are not conduct dialogue advertising campaigns
alone, mostly push or pull campaigns turn to dialogue campaigns and it has not yet create long term
relationship with customer as respondent see up to now. But in other way it can be a good way to
contact with customers.

The data obtained from the cross-case are presented in the Table 5.8
Table 5.8 Cross case Analysis effective advertising campaigns

Effective Mobile advertising Brandmyth Zovoteam.com

campaigns

Push campaigns Yes Yes

Pull campaigns Yes Yes

Dialogue campaigns No No

5.3.3 Mobile advertising forms

Competitions is used as form mobile advertising in both case, the reason is that both companies see
competitions provide consumer with a great incentive to make contact with a company and it is a
good way to launce a service, to build database, to limit opt-outs.

Location-based service both cases Brandmyth and Zovoteam.com showed they are rarely use this
form in their campaigns because brands are yet to agree in using it, and where it can fit well, is the
service bundling company where companies can sell directory service and consumer will be asked
to pay extra amount of money for the value added.

Alerts is very popular form of mobile advertising to provide information in both cases.

Coupons is used in mobile advertising campaigns and both cases see mobile coupons is acceptable
form for consumer but it is not popular to use because of the cost.

Sponsorship is using in mostly large campaigns where the cost is too expensive and campaigns take
place in long time. In this situation other companies are joined to campaigns for sharing cost and
improve their brand awareness

Table 5.9 Cross case Analysis form of mobile advertising campaigns

Mobile advertising Forms Brandmyth Zovoteam.com

Competition Yes Yes

Location-based service Yes Yes

Alerts Yes Yes

Coupons Yes Yes

Sponsorship Yes Yes

 6 Finding and Conclusions
In the previous chapter an analysis was conducted where the collected data was compared to the theories
in the conceptual framework that was presented in chapter two. This chapter will present the main finding
and conclusions based on research conducted in this thesis. The purpose of these conclusions is to answer
the three research questions. Each of the research questions will be answered in separate sections. Finally
implications for management, theory and future research are presented.

6.1 How can the factors affecting organization’s mobile advertising

adoption be described?
When analyzing factors affecting organization ‘s mobile advertising adoption we found that these
factors branding strategy, facilitating conditions, service cost and regulatory control are the most
important for company adopt mobile advertising. Branding strategy can create brand awareness of
products that will increase through the utilization of mobile advertising awareness of company and
marketers will make use of localized campaigns more effectively. The developments of mobile
advertising make the mobile device the leading advertising medium in Europe. Both companies
MindMatics and 12snap-Lokobil agree about the affect of branding strategy in using mobile
advertising. Facilitating conditions in the case studies showed that facilitating conditions effective
implementation of mobile advertising campaigns. Most European consumers have access to mobile
handsets with internet connection Technological resources required to use wireless communications
are available in most of the EU countries Because of mobile communications, marketers will make
use of uniform promotional campaign in several markets Current connection speed of wireless
communications is appropriate for advertising purposes. Service cost is quite cheaper in mobile
advertising compared with traditional advertising media. Regulatory control is important to follow
when adopt mobile advertising because the mobile medium is new technology so if companies
don’t follow regulation the new medium will die quickly. The reason is that mobile advertising
should be “opt in” and consumers are highly concern about privacy and information security. If
they feel trouble then they will never adapt the new technology.

These other factors location base service and cultural barriers are not so important in adopting
mobile advertising in both cases study or in other way it is not using much this time because
Location-based service is seen as expensive for consumer when they must pay extra cost for value
added and cultural barriers having no significant influence on the use of mobile phone in
communication up to now because all the application in Europe are similar and they all do the same
thing.
 6.2 How can organization’s mobile advertising campaigns
be characterized?
When analysing mobile advertising campaigns both companies use mobile pull advertising most,
the reason is that pull advertising campaign shows very high response rate and high level of
activity from consumers. They can conduct such kind of campaigns with other medium and pull the
consumer take part in the campaigns actively. In this way what advertisers much do is create an
attractive program to attract more consumers. Push mobile advertising campaigns is not much
efficiency because it has low response rate, low level of activity on the part of the consumer and
they must spend more effort to push consumer and the data base used to very poor. In addition cost
to buy database from other companies is too high to adapt with their campaigns. Dialogue
advertising campaign In both cases they are not conduct dialogue advertising campaigns alone
mostly push or pull campaigns turn to dialogue campaigns and it has not yet created long term
relationship with customer as respondent see up to now. But in other way it can be a good way to
contact with customers.

6.3 How can organization’s mobile advertising forms be described?

When analysing organization‘s mobile advertising forms we can see competition, alerts and
sponsorship is using very popular

Competitions is used as form of mobile advertising in both case, the reason is that both companies
see competitions provide consumer with a great incentive to make contact with a company and it is
a good way to launce a service, to build database, to limit opt-outs. Competition seems to be most
popular and is very attractive to fast moving consumers goods and it can be much faster than
traditional media. Competition allowed the end-user to contact the company where ever they might
be. Competion is also easier for the end-user than sending mobile coupon. Meanwhile content of
the message is very important in the competition. Since it will be in users phone for some after the
competition is ended.

Alerts is very popular form of mobile advertising to provide information.

Sponsorship is using in mostly large campaigns where the cost is too expensive and campaigns take
place in long time. In this situation other companies are joined to campaigns for sharing cost and
improve their brand awareness. In large campaigns for different kind’s brands, large companies like
mobile operator or mobile manufacturer are invited to sponsor the advertising campaigns.
Awareness about their brands service is being created therefore they pay part of the campaign costs,
in this they are able to save the money which hitherto have been use for the campaign to create
more added value service to their customers

Other form likes location base service and coupons seem to be interesting and accepted by
consumers but it is rarely using nowadays because of the cost for this kind of form is likely
expensive. Coupons as form of advertising has been welcome currently in Europe, and there is no
problem sending consumer mobile coupons and having them scan able in point of purchase system.
However these kinds of forms is expected growing very fast in the future

6.4 Implication
6.4.1 Implication for theory
This study based on the theory showed in the literature review and frame of references. It starts
from the research about factors influence mobile advertising adoption and then mobile advertising
campaigns finally end up with mobile advertising forms. From the empirical research it showed that
location base service factor is not much influence in adopting mobile advertising as the theory
mention. It can be developed in the future but now still lot of issue need to be consider to using
because in both case showed that they are rarely use and it seem to be not much influence.

6.4.2 Implication for manager

Mobile advertising campaigns managers need to carefully address the following things for using
mobile advertising

Brand awareness, facilitating conditions and service cost and regulation control are the most
important factors when adopt mobile advertising in Europe. Most European consumer has access to
mobile medium and technological resources required to use wireless communication are available
in most of the European countries so marketer can make uniform advertising campaigns across
Europe when consider that not much difference regarding regulation control as well as culture
barriers. To maximize the effectiveness of mobile advertising location base service should be
consider. In addition cultural barrier can be looked as important when companies want to do
business outside Europe.
 6.4.3 Implication for future research
In this study due to ability and time limit it is focus in conduct research in European market. This topic will
be more interesting when considers it outside Europe when we can see the similarity and differences from
other market such as Asia or US. Especially when mobile technology can reach people from all over the
world as well as business can do across border. The research has done with the main focus on B2C
application. In order to deeper understanding the effective of this new technology medium more research
can be done with the application from B2B point of view.
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 Interview Guide

Program of Study: Msc. E-Commerce

Course Name: Master’s Thesis, 2005
Supervisor: Lennart Persson
Tel. +46 920 49 14 09
Room Alfa 234
Email: [email protected]
Thesis
The purpose of this project is to develop deeper understanding on how organizations use mobile