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

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