Location Based Advertising
Transcrição
Location Based Advertising
Big Data Conference, LMU Chair of Innovative Brand Management (LiM®) Location Based Advertising Determinants of consumer acceptance and intention to use Claudius Warwitz University of Bremen, Germany Chair of Innovative Brand Management March, 13th. 2015 Univ.-Prof. Dr. Christoph Burmann, Lehrstuhl für innovatives Markenmanagement (LiM), Universität Bremen Nr. 1 Agenda 1. Why should anybody care about Location-Based Advertising (LBA)? 2. State of the (Research) Art, Research Design & Questions 3. Preliminary Results Univ.-Prof. Dr. Christoph Burmann, Lehrstuhl für innovatives Markenmanagement (LiM), Universität Bremen Nr. 2 LBA on the Smartphone: A Hot Topic, Controversially Discussed! + Univ.-Prof. Dr. Christoph Burmann, Lehrstuhl für innovatives Markenmanagement (LiM), Universität Bremen - Nr. 3 What is LBA? - Meaning and Definition. Mobile Advertising Location Based Services Navigationservices SMS/MMS Campaigns Mobile Couponing DisplayAds … Location Based Advertising Emergency Services Friends finder LBA as intersection set of: 1) Location Based Services (LBS) 2) Mobile Advertising (MA), i.e. mobile ads without contextual location LBA can be defined as „targeted advertising initiatives delivered to a mobile device from an identified sponsor that is specific to the location of the consumer.”1 … “Advertisers could deliver contextually appropriate advertising messages through wireless devices on a geographically targeted basis and could reach mobile consumers when they are most likely to make a purchase”2 1 Unni, R./Harmon, R. (2007): Perceived effectiveness of push vs. pull mobile location-based advertising, in: Journal of Interactive advertising, Jg.7, Heft 2, S. 28 2 Kölmel, B., / Spiros A. (2002): "Location based advertising." The First International Conference on Mobile Business. 2002. Univ.-Prof. Dr. Christoph Burmann, Lehrstuhl für innovatives Markenmanagement (LiM), Universität Bremen Nr. 4 How does LBA work: Leveraging Big Data for Personalised, Context Aware, Local Targeting. BENEFITS: Context & location-based Offer Personalized / real-time SMS/MMS/P ush notification Mobile payment solutions Potential Data Sources Offers Based on prior puchases / Display / Local Search / SMS / MMS … User preferences & profile data Browsing and clicks (behavioral data) 3rd party Intender / Expressed Intent Efficient targeting for advertising companies (less spreading losses) Local, context specific, highly relevant offers for consumers Unlock new consumer segments in particular for small businesses Demo/Psychographic Layer HH Income, size / age / gender / education / PRIZM lifestyle categories Geography/sensor/time layer Merchant adresses/smartphone sensors/ weather/time/event calender Geo-Positioning data Network / GPS / WiFi Adress /… Source: Davis, T. (2013): Telco 2.0.: Making Money from Location Insights. An Operator Perspective on Location Insight Services, STL Partners . Univ.-Prof. Dr. Christoph Burmann, Lehrstuhl für innovatives Markenmanagement (LiM), Universität Bremen Nr. 5 Working Examples. O2 Geo-Fencing Solution Introduction in Germany: May 2014 Product Recommendations via SMS and MMS Compatible with all mobile Phones Offers as Coupons, redemption in the shop Facebook Small Business Solution Targeting, based on facebook consumer profile, activities and location Smartphone Sensors to be used to optimise targeting precision and relevance Introduced in the US already Aha Radio In Car – Solution Driver gets Info Commercials based on his car position and direction Next Burger Chain, Hair Dresser etc. Usage of In Car „Spare Time“ In Future: Car sales price bound to opportunity to get access to car dash Univ.-Prof. Dr. Christoph Burmann, Lehrstuhl für innovatives Markenmanagement (LiM), Universität Bremen Apple Watch March 2015 industry’s first programmatic ad platform for Apple Watch already in place hyper-local and relevant targeted ad delivery, e.g. ridesharing alternatives in response to subway delays Nr. 6 Mobile Catching up in Advertising Space! Global Advertising Market Shares % 45 -6% 40 35 30 25 +4% 20 -20% +130% 15 -20% 10 +0% -9% OOH Radio 5 0 TV Internet (PC) Mobile Internet Newspaper 2014 2017 Magazines -X% Development Univ.-Prof. Dr. Christoph Burmann, Lehrstuhl für innovatives Markenmanagement (LiM), Universität Bremen Nr. 7 LBA In Europe: Market Worth EUR 1.5bn in 2018 € Mio CAGR ´11-´18 EU 27 +44% EU 5 +41% Source: IDATE 2012-2013; EU5: GB, DE, FR, IT, SP Univ.-Prof. Dr. Christoph Burmann, Lehrstuhl für innovatives Markenmanagement (LiM), Universität Bremen Nr. 8 Location Based Services Market Strongly Developing in Germany. Development of LB-Services in Germany XY XY% # of LBS Services YoY growth Source: Goldmedia Univ.-Prof. Dr. Christoph Burmann, Lehrstuhl für innovatives Markenmanagement (LiM), Universität Bremen Nr. 9 Currently, LBA Market Very Fragmented LBA Specialists AdMoove CityGrid Media LEMON Mobile Placecast, Verve Mobile WHERE/PayPal Media Network, xAd, Xtify, YOOSE Mobile operators AT&T Mobility Orange Group SFR Telefónica Group Verizon Wireless Weve – mobile operator joint LBS and navigation providers Appello Systems Intersec TeleNav, Telenity Telmap, TomTom Waze Location-aware applications and media Proximity marketing providers Badoo Foursquare Gbanga SCVNGR/LevelUp Shopkick BLIP Systems Proximus Mobility Qwikker Scanbuy Mobile coupons and deals providers Traditional mobile advertising players COUPIES Groupon Vouchercloud YourbanDeals Yowza!! Mobile search providers + also big retailers & brands move into LBA InMobi Jumptap Madvertise Millennial Media Nexage Sofialys Major digital and telecom players Hibu Mobile Commerce Poynt Yelp and Qype Apple Facebook Google Microsoft Nokia Yahoo! Source: Berg Insight, April 2014; http://www.berginsight.com/ReportPDF/ProductSheet/bi-lba3-ps.pdf Univ.-Prof. Dr. Christoph Burmann, Lehrstuhl für innovatives Markenmanagement (LiM), Universität Bremen Nr. 10 All Struggle With Advertising Paradox: Consumers Want Information But No Advertising. What new local services would you appreciate? Info/Ads in Malls/High Streets (e.g. next ATM, Bakery, etc.) Price-Comparison local offers What to you think about mobile advertising? LBAcentric! Ads disturb me I ignore ads best I can Local coupons, discounts Mobile as travel ticket Sightseeing Information I accept ads, because I benefit (e.g. free apps) Managing house lightning via mobile I use an ad blocker Managing house heating via mobile Lokation Info (e.g. Around me) Mobile as TV remote control I find ads informative Source: Goldmedia Analyse/Respondi 2013: Mobile Monitor 01/2014, n=1000 I like to get personalised ads So, How to do it right ??! Univ.-Prof. Dr. Christoph Burmann, Lehrstuhl für innovatives Markenmanagement (LiM), Universität Bremen Nr. 11 Working Hypotheses LBA based on big data will become a significant marketing channel for the majority of consumer brands Stated privacy concerns seem to be an issue! Brand managers need to know what will drive LBA consumer acceptance Univ.-Prof. Dr. Christoph Burmann, Lehrstuhl für innovatives Markenmanagement (LiM), Universität Bremen Nr. 12 Adoption Research… # Tests (A) # Positiv (B) Determinants of Adoption # Tests (A) # Positiv (B) Determinants of Adoption 22 20 Relevance/Usefulness/Value 10 10 Attitude towards use of service 21 17 Entertainment/flow 10 9 Personalisation/contextual offering 16 14 Trust/controllability 8 6 Risk 16 13 Informativeness 7 4 Ease of use 6 5 Compatibility with task 6 5 Permission to send ads 6 4 Personal Innovativeness 5 5 Previous user experience 5 2 Effort expectancy … … … (further until No. 51) 13 11 Privacy 12 11 Subjective Norms 12 10 Credibility of ad 12 9 Irritation (A): Number of empirical tests with this determinant in scientific research studies (A, B Journals) (B): Number of empirical tests in which this determinant significantly influenced service adoption Source: 45 international peer-reviews scientific Studies (A-,B-,C-) Journals, Research Papers and Dissertations Univ.-Prof. Dr. Christoph Burmann, Lehrstuhl für innovatives Markenmanagement (LiM), Universität Bremen Nr. 13 …Reveals First Relevant LBA Acceptance Factor Candidates. # Tests (A) # Positiv (B) Determinants of Adoption # Tests (A) # Positiv (B) Determinants of Adoption 22 20 Relevance/Usefulness/Value 10 10 Attitude towards use of service 21 17 Entertainment/flow 10 9 Personalisation/contextual offering 16 14 Trust/controllability 8 6 Risk 16 13 Informativeness 7 4 Ease of use 6 5 Compatibility with task 6 5 Permission to send ads 6 4 Personal Innovativeness 5 5 Previous user experience 5 2 Effort expectancy … … … (further until No. 51) 13 11 Privacy 12 11 Subjective Norms 12 10 Credibility of ad 12 9 Irritation (A): Number of empirical tests with this determinant in scientific research studies (A, B Journals) (B): Number of empirical tests in which this determinant significantly influenced service adoption Source: 45 international peer-reviews scientific Studies (A-,B-,C-) Journals, Research Papers and Dissertations Univ.-Prof. Dr. Christoph Burmann, Lehrstuhl für innovatives Markenmanagement (LiM), Universität Bremen Nr. 14 What´s missing … …and what is the impact of the BRAND? Univ.-Prof. Dr. Christoph Burmann, Lehrstuhl für innovatives Markenmanagement (LiM), Universität Bremen Nr. 15 So… Studies in Cultural different areas like US, Asia But, only 3 scientific publications in Germany Brand influence on consumer acceptance not researched until now. Authors claim further research need Univ.-Prof. Dr. Christoph Burmann, Lehrstuhl für innovatives Markenmanagement (LiM), Universität Bremen Nr. 16 Expert Estimate: Most Relevant LBA Adoption Determinants. Interviewees: CEOs/entrepreneurs, product developer, telco- and retail experts, association members, consultants, market researcher, scientists. Ø Determinants of LBA Adoption (closed questions) Amount of Mentions What other factors determine LBA usage intention? (5= very important, 1= not important) 4,67 Information value 5 Perceived usefulness 4,47 Privacy Concern 4 Relevancy of the ad 4,27 Marketing Effects like Brand Trust 2 Ease of use 4,07 Monetary incentive 2 Social norm 4,00 Entertainment value 1 Transparency (Why this ad?) 3,93 Personalization of LBA 1 Prognosis capability of the app 3,47 Irritation when receiving LBA 1 Quality of content 2,93 Innovation affinity of consumer 1 Cost consciousness Duration: approx. 45 Min. -1,5h. Modus: Explorative guided interviews personal and via phone Duration 11/2013 – 04/2014 N = 15 Univ.-Prof. Dr. Christoph Burmann, Lehrstuhl für innovatives Markenmanagement (LiM), Universität Bremen Nr. 17 Expert Estimate: Most Relevant LBA Adoption Determinants. Interviewees: CEOs/entrepreneurs, product developer, telco- and retail experts, association members, consultants, market researcher, scientists. Ø Determinants of LBA Adoption (closed questions) Amount of Mentions What other factors determine LBA usage intention? (5= very important, 1= not important) 4,67 Information value 5 Perceived usefulness 4,47 Privacy Concern 4 Relevancy of the ad 4,27 Marketing Effects like Brand Trust 2 Ease of use 4,07 Monetary incentive 2 Social norm 4,00 Entertainment value 1 Transparency (Why this ad?) 3,93 Personalization of LBA 1 Prognosis capability of the app 3,47 Irritation when receiving LBA 1 Quality of content 2,93 Innovation affinity of consumer 1 Cost consciousness Duration: approx. 45 Min. -1,5h. Modus: Explorative guided interviews personal and via phone Duration 11/2013 – 04/2014 N = 15 Univ.-Prof. Dr. Christoph Burmann, Lehrstuhl für innovatives Markenmanagement (LiM), Universität Bremen Nr. 18 Research Questions. 1 What acceptance factors determine the intention to use Big Data based LBA? 2 What factors reduce the influence of the perceived privacy risks? 3 How important is the brand perception? Differences on established brands and start-ups? 4 What marketing measures should be taken to decrease privacy risks and increase LBA adoption? 5 What consumer segments show high LBA acceptance? Univ.-Prof. Dr. Christoph Burmann, Lehrstuhl für innovatives Markenmanagement (LiM), Universität Bremen Nr. 19 Research Model (Results: April 2015) Consumer-Focused Privacy Concerns H1 Brand related Variables Brand Authenticity Brand Image H10a Brand Trust H13a Brand Attachment H7a H8a Social Norms SelfEfficacy H10b H7b H2a H2b Incentives Setting: LBA Attitude Online / Smartphone Questionnaire, 1.250 German Smartphone-Users, that know or use LBA H3 Advertising Value H4a H4b Entertain -ment Usage (not part of research model) H8b H9b H9a Usage Intention H13b H5 Relevance H6 Results Expected April 2015 Irritation Univ.-Prof. Dr. Christoph Burmann, Lehrstuhl für innovatives Markenmanagement (LiM), Universität Bremen Nr. 20 Brands Established Brands Advertising Brands Restauration FMCG Telco/Electronic Trade Established Brands Retail Start-ups LBA-Supplier Univ.-Prof. Dr. Christoph Burmann, Lehrstuhl für innovatives Markenmanagement (LiM), Universität Bremen Nr. 21 Preliminary Findings from Pre-Test 1.) Big data privacy concern with no strong impact on LBA usage intention. Possible reason: PRIVACY PARADOX. 2.) Relevancy and entertainment of personalized LBA far more important 3.) Brand related determinants: customers must „love“ advertised brands to really accept personalised LBA 4.) Monetary incentive not main driver for LBA usage. Attractive brands/products by far more important 5.) Customers: less students, more employees, less formal education but with more disposable Income and less privacy concerns Source: Online / Smartphone Questionnaire, 150 German Smartphone-Users, that know or use LBA Time-Frame: Dec 2014 - Jan 2015 Univ.-Prof. Dr. Christoph Burmann, Lehrstuhl für innovatives Markenmanagement (LiM), Universität Bremen Nr. 22 Thank You ! Questions ? Univ.-Prof. Dr. Christoph Burmann, Lehrstuhl für innovatives Markenmanagement (LiM), Universität Bremen