Perceived Effectiveness of Push vs. Pull Mobile Location Based Advertising

The emergence of mobile phones as the leading personal communications device portends their attractiveness as a potentially lucrative media platform for marketers. This article presents initial consumer evaluations of mobile location-based advertising (LBA). LBA is a new form of marketing communication that uses location-tracking technology in mobile networks to target consumers with location-specific advertising on their cell phones. We use an experimental setting to test the effects of LBA characteristics on privacy concerns about location tracking, perceived benefits, value, and intentions to try LBA. LBA was described as a free, opt-in service from cell phone service providers. Results indicate that privacy concerns are high, and perceived benefits and value of LBA are low. LBA was relatively more effective when it becomes available upon explicit request by the consumer than when consumers are alerted to location-specific advertising or promotions for preferred product categories relevant to a specific location. Implications for marketers are discussed.