Implicit Opt-in Mobile Advertising
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Literature Review
Mobile marketing is a dynamic new field that is evolving very fast. Definitions of mobile mar-keting and the preferred used application, text messaging via short messaging system (SMS), are described in Dickinger et al. 2004. There have been many frameworks for understanding the po-tential and effectiveness of the usage of mobile phones as a promotional media, and though many retailers are interested in taking advantage of this powerful new tool they haven’t taken full advantage of being aware of the customers location (McManus and Scornavacca, 2005). This is the case even though the field has advanced from electronic or web-based marketing to mobile marketing, offering even more possibilities for direct marketing (Mort and Drennan 2002). The next logical step to improving the marketing effort will be utilizing information about the potential customers’ position and then extracting information about their surrounding to decide what and how to best advertise to them.
Retailers can address consumers directly by sending individualized advertising messages. To take advantage of the added value of mobile advertisement, potential consumers have been sur-veyed about their acceptance of mobile advertisement (Haghitian et al. 2005). Studies found that consumers’ responsiveness to indiscriminate mobile marketing is low (Heinonen and Strandvik, 2003), and that consumers can even have negative attitudes toward mobile advertising unless they have specifically consented to it (Tsang et al. 2004). This low response and negative atti-tudes are due to the effect that indiscriminate mobile marketing feels more like geographic based spam because it invades privacy. In fact the technology to create a location aware mobile market-ing application has existed for several years now but what has halted adoption is a lack of sup-port for privacy control and an easy, almost implicit, opt-in mechanism (Aalto et al. 2004). These findings give validity to our implicit opt-in approach based on pointing.
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