The Internet has revolutionized all aspects of our lives, including communication, shopping, and leisure activities.
Corporations have adapted their marketing communication strategies to the changing landscape by developing websites, online shopping malls, and consumer services. They also use various types of Internet ads like banner ads. The rise of wireless communication has led to increased consumer diversification and contact points with companies. Many corporations have ensured that their Internet services are compatible with mobile devices. Wireless communication opens up numerous opportunities for advertisers, such as targeting specific consumers and location-based promotions.
The rise of advertising through Short Messaging Service (SMS) has the opportunity to reach numerous customers via wireless devices anytime and anywhere. This marketing trend has gained popularity in Europe, Asia, and the U.S., leading the Egyptian wireless industry to consider adopting it for Egyptian consumers. In this study, we explore the correlation between attitudes towards mobile phone medium and mobile phone ads, as well as respondents’ behavior in terms of their acceptance and usage of mobile phone ads.
The objective is to determine if mobile phone advertisements influence the purchasing behavior of consumers in Egypt. The assessment recognizes wireless advertising as a creative and successful strategy employed by advertisers and marketers to engage with consumers. As internet advertising has reached its maximum capacity, advertisers have shifted their focus towards this expanding technology adopted by consumers. According to King (2000), it is projected that approximately 500 million mobile phones will be utilized in the United States by 2003.
According to Kotch (2001), the number of wireless Web and messaging subscribers in the U.S. was about 4.4 million in August 2001, but it is projected to reach 71.1 million by 2005. This rapid growth in mobile phone usage shows a promising future for the wireless market. However, there is uncertainty surrounding the sustainability of wireless advertising as an industry. It is likely that a substantial portion of the population will eventually receive advertising-supported content on their wireless devices.
Currently, the industry is at a critical stage and must show that consumers are willing to accept advertising on personal digital assistants (PDA), cell phones, and other similar devices. The main question is whether consumers will be receptive to receiving ads on wireless devices such as cell phones. As mentioned earlier, mobile advertising focuses primarily on internet usage, so it is essential to provide market forecasts specifically for wireless advertising.
Mobile advertising is a form of new media communication that targets modern consumers who are constantly on the move (Senn, 2000; Stafford, 2005). This type of communication utilizes wireless technology to reach consumers through cell phones, pagers, and personal digital assistants. In countries like Japan and Finland, these devices have already become significant means of communication through new media. While the use of mobile devices for promotional purposes has been slower in the United States, their diffusion is already outpacing that of the Internet (Perlado & Barwise, 2005).
According to Perlado & Barwise (in press), the use and significance of mobile advertising are expected to increase in the future. However, it is improbable that mobile technology will be capable of supporting the same quantity of content or visual quality that we typically associate with print or electronic media advertisements. Instead, mobile advertising is more likely to consist of concise text messages designed to inform, remind, or alert consumers. Consequently, it is best utilized for nurturing relationships with current customers rather than attempting to attract new ones.
Mobile advertising serves multiple purposes, such as reminding consumers to make purchases and offering immediate information for consumer decisions. Its notable advantage lies in its ability to reach people precisely when they are making buying choices. An illustration of this is when it provides details on sales promotions during purchase time, influencing consumer preferences for comparable products. Text messaging advertising is not yet widespread enough in the United States to cause service disruptions.
Recently, the major wireless carriers have finally agreed to allow their customers to send text messages to each other (Shachtman, 2002). The lower per capita use of cellular phones in the United States compared to Japan or Europe is attributed to competing standards (global system for mobile communications versus code division multiple access), fragmented systems, and limited variety in calling plans (Hirsh, 2001). Based on the experience in Japan and Europe, it is expected that text messaging ads will become more prevalent in the United States as the popularity of cellular phones and other wireless devices continues to grow.
In January 2002, about 33% of cellular telephone users worldwide reported receiving advertising on their mobile phones, compared to only 1% in June 2001 (Kelsey, 2002). Analysts predict that text messaging ads could become a popular and cost-effective marketing tool with significant growth potential. Ovum, a research firm based in Boston, projects that the text messaging ad market could reach $16 billion by 2005, considering the already widespread use of digital cellular phones capable of accepting text messages (Berman, 2000).
Various predictions for wireless advertising sales in 2005 range from $6 billion (The Yankee Group), $3.9 billion (Strategis), $891 million (Forrester), to $700 million (Jupiter Media Metrix) (Graham, 2001). The convergence of cellular phones and PDAs into a single unit with a larger interactive screen format, similar to the replacement of pagers by cellular phones, is expected to facilitate advertising (Hirsh, 2001; Stone, 2001). This development gives rise to optimism for the growth of text messaging ads in the United States.
According to a study by Jupiter Media Metrix, around 50% of cellular phone and PDA users in the United States would not agree to receive advertising, even if they were compensated for it. However, more than 33% of the respondents showed interest in receiving advertisements in exchange for subsidized access. The study also found that many of these customers considered the advertisements to be valuable and actively sought out advertisements that were not specifically targeted at them (Olsen, 2001; Berman, 2001; Pintak, 2001).
According to a survey conducted by WindWire, 86% of the 260 users who participated in the trial of text messaging ads preferred free or ad-supported wireless content instead of paid content (Graham, 2001). Adbroadcast.com, based in Baltimore, also provides consumers with the opportunity to earn between $.05 and $.50 for every advertisement they view. These trials were made possible after AT&T Wireless and Sprint PCS introduced free text-messaging capabilities on wireless phones in early 2000. However, carriers like Nextel and Cellular One, now known as Cingular, charge an additional fee for receiving text messages (Musgrove, 2000).
Consumers would likely be hesitant to pay for unsolicited text messaging advertisements if they were charged for each individual message. There are six different types of SMS ads, as identified by Barwise and Strong in 2002. One type is brand building, which includes unique campaigns like Tango’s “Feed the Tango inside” and “The Tango inside is wise. Feed him.” Another example is a Carlsberg ad specifically targeting males over 18 years old at 10:30 p.m. on a Friday night, with the message “Pulled? If Carlsberg ran a nightclub you’d have pulled by now. Probably…” Another type of SMS ad is specific offers, which are designed to create awareness of existing special deals.
A typical example is from Sega “A Dreamcast with 4 selected games for just 109.99 pounds at Electronics Boutique or Game. Details in store. Call 000 000 0000 for your nearest store.
Timely Media Teasers: These are used by media organizations to encourage purchase or viewing, as illustrated by the following execution by the Evening Standard (London’s main local newspaper) “Tube strike starts 8 p.m. Anger as Major says ‘walk’… see tonight’s Evening Standard for ‘walking times’ map of key routes in London.
Product, service or information request: Examples included Interflora “Have you remembered Mother’s Day this Sunday? It’s not too late to say it with flowers, just call Interflora on 000 000 0000.” And Cadbury’s “Cadbury Gifts Direct – THE guide to gifts for chocolate lovers. For your copy sent direct to your door just text back CADBURY now!”
Competitions: Examples are Wella, “Free Wella Shockwaves. 1st 50 win! Text back WELLA now” and Lucozade Sport, “Win a signed Premier League shirt from Lucozade Sport. Text back your team’s name 2 enter draw. Lucozade Sport.
Do you have it in you? “Polls/Voting: Include lottery company Gamelot’s SMS “Would you like to play the National Lottery using your mobile? For further details text back YES. U 16s cannot play” and Blockbusters, “THE BLOCKBUSTER OSCARS VOTE Marilyn Monroe or Cameron Diaz. Text us your favourite female movie star, past or present. Let us know poll winners on Mar 18th!” Mobile Phone Usage And Advertising Acceptance Among College Students. The mobile phone is quickly becoming one of the most influential media for marketing since the introduction of the Internet.
According to Gerry Purdy, a prominent analyst in the mobile industry, the most significant form of advertising in the 21st century will likely be the cell phone rather than print media or billboards (SMS Marketing, 2006). By utilizing the mobile phone, the mobile phone network, and various participants in the mobile marketing ecosystem, brands, businesses, and marketing agencies can now engage and interact with their target audience on a more personal level, which was previously unattainable.
According to M:Metrics (2005), young people, who are often early adopters of new technology, have the highest rates of cell phone usage and mobile content adoption. Among various groups, students with jobs consume the most mobile content and are 42% more likely to use mobile email than the average subscriber. They are also 23% more likely to use mobile email than typical full-time workers. In addition, working students download mobile games and personalize content on their phones twice as often as other users (M:Metrics, 2005).
According to ComScore Networks, individuals aged 18-24, also known as the “Cellular Generation,” view their cell phones as more than just tools for communication. They also perceive them as sources of entertainment, symbols of social status, and means to express their uniqueness. Mobile marketing, which refers to marketing through mobile channels and using mobile-enhanced traditional media (Becker 2005), encompasses various marketing activities. One prevalent type of mobile marketing is mobile advertising. Although mobile advertising was largely unheard of a few years ago, it has gained significant attention in recent times.
Leading companies such as Procter & Gamble, Microsoft, ESPN, Disney, Coca-Cola, Sony Pictures, and McDonalds are embracing mobile advertising and including it in their marketing budgets. They often target teens and college students. Mobile advertising has been consistently growing since it was first done in Scandinavia in 1997 (Becker, 2005). It is expected that by 2011, marketers will be spending $11.3 billion annually on mobile advertising, up from $871 million in 2006 (O’Shea, 2007). However, Jupiter Research predicts a slightly slower growth rate for mobile advertising, projecting an increase to $2. billion by 2011 (Jupiter Research, 2006).
According to Sharma (2007), the time it took for broadcast TV, the Internet, and cable TV advertising to reach $1B in ad revenue was two years, four years, and five years respectively. Both the Internet and broadcast TV advertising took five years to reach $5B. None of these advertising platforms crossed the $10B revenue mark within their first 10 years.
In contrast, mobile advertising differs from traditional methods in that it is personalized, interactive, and targeted towards individuals. Traditional advertising is conveyed through mass media and is considered non-personal. The main objective of traditional advertising is to inform and persuade a specific audience (Ayanwale, Alimi, and Ayanbimipe, 2005).
Marketers have multiple options to engage consumers through mobile advertising, including incorporating a call-to-action in their traditional media ads. Consumers can then respond using various methods on their cell phones such as text messaging, multimedia messaging, picture messaging, Bluetooth alerts, or voice channels. For instance, they may be prompted to send text messages, reply to Bluetooth alerts, make phone calls to regular or toll-free numbers, interact with instant voice response services, or utilize the phone’s multimedia messaging service to send picture messages.
Marketers can append an advertisement to messaging or voice channels that consumers have opted in to receive. This can be done on a broadcast basis to specific demographic groups or to individuals. Another common method of advertising on mobile phones is through embedded applications and browsers. For instance, advertisers often include inline and interstitial ads on mobile Internet sites, embed advertisements in mobile radio, video clips, TV, and games, and place ads within a mobile operator’s dedicated portal.
Ads may occasionally appear in the phone’s interface, although this is not a usual practice. Mobile advertising utilizes both “push” and “pull” strategies, often alongside other direct-to-consumer marketing and niche market advertising techniques. Due to regulatory and telecommunications obstacles, mobile advertising messages face restrictions in their presentation and delivery that other advertising mediums do not encounter.
For mobile marketing, obtaining prior approval from consumers is often necessary due to legal regulations and industry standards. In the United States, access to mobile consumers is governed by federal law and industry best practices (Mobile Marketing Association, 2007; CAN-SPAM Act, 2003). However, in certain regions of Europe and worldwide, obtaining prior approval is not always mandatory.
Mobile advertising stands out because the mobile medium is highly personal (Tahtinen & Salo, 2003). Research has shown that mobile devices, especially cell phones, are personal communication tools that have become deeply integrated into our digital society’s social network and fabric. A recent study conducted by the Mobile Marketing Association revealed that the mobile phone is a crucial component of our everyday lifestyle for all age groups.
The study conducted by the Mobile Marketing Association in 2007 revealed that 82% of respondents consider their mobile phone to be highly to moderately important in their daily life. Additionally, 79% of respondents indicated a high to moderate level of dependency on their mobile phone. For many individuals, a cell phone serves as a sacred personal space where communication and socialization can occur while still maintaining control. As a result, marketers should acknowledge and respect this personal space and strive to understand consumers’ attitudes and receptiveness towards mobile advertising.
According to research conducted by Forrester, 79% of consumers would be annoyed if they received ads on their mobile phones (Forrester Research, 2007). Additionally, the Online Publishers Association reported that 34% of mobile web users in the US and abroad would be willing to view ads on their phones in return for free mobile content (Online Publishers Association, 2007). Furthermore, a study by Harris Interactive revealed that 35% of adult cell phone users in the US are open to receiving incentive-based mobile ads (Harris Interactive, 2007).
There is limited research on consumer attitudes towards mobile advertising and its impact on consumer acceptance. Specifically, there is no multi-year analysis available. The marketing research problem is to evaluate the effectiveness of using mobile phones as an advertising medium and compare it with the competition’s strengths and weaknesses.
By the end of the research, we aim to determine if companies and producers should include mobile phone ads in their advertising campaign to increase sales and market share. Additionally, we will examine the preferences of Egyptian consumers regarding mobile phone ads and how it influences their purchasing patterns. This will enable us to decide whether such media should be utilized in the future. The management decision problem is to assess the potential success of using mobile phone ads and whether it will lead to increased sales.
They are seeking action and asking whether the use of mobile phone advertising should be increased to boost sales and market share. The marketing research problem entails finding the necessary information to conduct the research, which includes determining the effectiveness of mobile phone ads and consumer preferences for this advertising medium. The marketing research problem will help decision-makers gain a better understanding of this marketing phenomenon.
In addition, we can offer them details regarding the impact of mobile phone ads on Egyptian consumers, including their effectiveness in increasing purchases and driving sales. Our approach includes exploring consumer attitudes towards mobile phone ads in general, as well as SMS-based advertisements. Additionally, we will examine the connections between attitudes, intentions, and behaviors in this study.
It is crucial to identify the needs and preferences of mobile phone users for specific applications in order to target them effectively. Users prioritize applications such as driving directions, instant messaging, news/weather, streamed music (mp3), and email services when using their mobile phones on the go. Among these, driving directions service is of great interest to users. This aspect can be integrated with mobile phone ads for a successful mobile phone advertising campaign. Further research is needed to explore the factors that could influence mobile phone consumers’ perception of and attitude towards mobile phone advertising and SMS advertising.
The wireless service provider should understand how to influence users’ attitudes to design appealing service plans and offers. Further research should investigate the specific messages that would resonate with wireless users. However, this study has limitations in terms of its sample, sampling procedure, and measurements. Specifically, the findings of this study cannot be applied to the entire mobile phone user population since it was conducted with a convenience sample of college students.
Secondly, the absence of prior investigations on the perception of mobile phone advertisements makes it challenging to establish suitable metrics. My objective is to examine the consumer perception of mobile phone ads and determine their persuasiveness as well as discern if these ads are seen as a violation of privacy. The research inquiries are as follows:
- Are Egyptian consumers affected in their purchasing patterns by mobile phone ads?
- Are Egyptian consumers found mobile phone ads attractive & convenient?
- Did companies & producers market share increase since the use of mobile phone ads in their advertising campaign?
- Should companies & producers continue using the same campaign process or should it be changed?
- Does the use of mobile phone ads disturb consumers?
By the end of the research, these questions need to be answered to gain insight into how mobile phone ads are influencing consumer purchasing patterns. In order to test these questions, we can develop hypotheses and determine their validity throughout the research.
- H1: Mobile phone ads will have more advertising effects in terms of attitude toward the brand and purchase intention in the Egyptian market. Egyptian consumers are affected by mobile phone ads.
- H2: Mobile phone ads attract consumers & convince them to purchase the product or use the service in the ads.
- H3: Mobile phone ads will increase the companies’ sales.
- H4: Mobile phone ads will increase the companies’ market share.
- H5: Mobile phone ads intrude the consumer privacy.
The descriptive research design involves using a structured questionnaire as the survey method. This will be administered through a personal interview method, specifically the mall intercept method. This approach allows questionnaires to be distributed to consumers at the point of purchase, allowing them to provide their opinions on the topic. Additionally, the questionnaire will be distributed to college students at the university, as they represent a significant sector of society. The main sample for this research will consist of college students, as they are considered the future of the Egyptian market.
The questionnaire will primarily include ordinal and interval scales to assess various perceptions and preferences among Egyptian consumers. Sampling: The sample to whom the questionnaire will be distributed will be chosen using convenience sampling, specifically the mall intercept method. The researcher will distribute the structured questionnaire to customers in supermarkets, malls, sport clubs, and universities, with a focus on college students.
If they are present at the designated time and place, they will participate in the sample. I will hand out thirty research questionnaires. On the following page, you will find a sample of the questionnaire that will be given to the test units in order to gather the necessary information. Questionnaire: Dear participant, below you will find a questionnaire designed to measure consumer perception of using mobile phones as an advertising medium. As a consumer, your candid and honest responses are crucial in providing us with an accurate understanding.
Conclusion
During the research, we have been assessing the attitudes and behavior of Egyptian consumers towards cell phone advertising. Through a structured questionnaire, we will finally address the research problem: whether companies should incorporate cell phone ads into their advertising campaigns, and if Egyptian consumers are receptive to such ads.
If the research demonstrates that cell phone ads have an impact on Egyptian consumers’ purchasing behavior, leading to increased purchases, then the answer to the question is to utilize cell phone ads in promotions. However, if the results indicate that Egyptian consumers dislike these ads and that it does not affect their buying patterns, and they feel that it invades their privacy, then the answer is to cease using cell phone ads in promotions or make efforts to enhance them.
Result: Despite having a generally positive view on the usefulness of mobile phones, respondents expressed a negative attitude towards mobile phone advertising. Interestingly, this sample showed a notable positive correlation between attitudes towards mobile phone medium and mobile phone ads. The findings indicate that individuals who had a more positive perception of mobile phone ads were more likely to be receptive to and utilize them.
It is crucial to have a positive attitude towards mobile phone ads in order to increase the likelihood of accepting and utilizing them. The findings of this study demonstrate that users are doubtful when it comes to mobile phone advertising. The respondents exhibited negative attitudes towards receiving mobile phone ads, possibly due to finding them irritating given the personal nature of mobile phones. Additionally, many individuals find mobile phone ads to be boring, inconvenient, and perceive them as meaningless, unbelievable, uninformative, and not helpful.
During my research, I discovered that many respondents have reported receiving a minimal amount of mobile phone ads. This indicates that Egyptian companies and producers have not effectively utilized the mobile phone as an advertising medium. It is crucial for them to consider using it in a suitable manner for their advertising campaigns, in order to persuade and captivate users to try their products and services. This strategy will ultimately lead to an increase in sales and market share.
In conclusion, the impact of mobile phone ads on Egyptian consumers’ purchasing habits is minimal. This is likely due to the fact that mobile phone ads are a relatively new phenomenon in the Egyptian market. In order to gain the trust and perception of users, it is necessary to properly introduce these ads in the future.
