“Too Close for Comfort”: The Negative Effects of Location-Based Advertising
The expanding presence of mobile devices offers marketers a new advertising channel for reaching consumers. Whereas both real-world practice and academia hail the advantages of personalizing advertising messages with location information, this research probes its negative effects. An exploratory field study that places ads on a social network reveals a sharp drop in advertising effectiveness when an online ad includes location information. To explain these results, a subsequent experimental study demonstrates how location-based personalization can trigger feelings of vulnerability, which hamper online advertising effectiveness.
Unable to display preview. Download preview PDF.
- Aguirre, M. E.; Mahr, D.; de Ruyter, K.; Wetzels, M. and D. Grewal (2012), “The Impact of Vul-nerability During Covert Personalization–A Regulatory Mode Approach,” Paper presented at the 41st EMAC Conference, Lisbon - ISCTE.Google Scholar
- Bauer, H.; Barnes, J.; Reichardt, T. and M. Neumann (2005), “Driving Consumer Acceptance of Mobile Marketing: A Theoretical Framework and Empirical Study,” in: Journal of Electronic Commerce Research, Vol. 6, 3, 181–192.Google Scholar
- eMarketer (2013), "Most Digital Ad Growth Now Goes to Mobile as Desktop Growth Falters." Retrieved January 15, 2013 from: http://www.emarketer.com/Article/Most-Digital-Ad-Growth-Now-Goes-Mobile-Desktop-Growth-Falters/1010458.
- Gartner (2012), “Gartner Identifies the Top 10 Strategic Technology Trends for 2013.” Retrieved March 19, 2013 from: http://www.gartner.com/newsroom/id/2209615.
- Gratton, E. (2002), “M-Commerce: The Notion of Consumer Consent in Receiving Location-Based Advertising,” in: Canadian Journal of Law and Technology, Vol. 1, 2, 59–77.Google Scholar
- Hayes, A. F. (2013), “PROCESS: A Versatile Computational Tool for Observed Variable Media-tion, Moderation, and Conditional Process Modeling,” White paper. http://www.afhayes.com/public/process2012.pdf.
- Jong Woo, J. and L. Sangmi (2007), “Mobile Media Use and its Impact on Consumer Attitudes toward Mobile Advertising,” in: International Journal of Mobile Marketing, Vol. 2, 1, 50–58.Google Scholar
- MSI (2012), “Research Priorities 2012-2014,” Cambridge, MA. Marketing Science InstituteGoogle Scholar
- Tam, K. Y. and S. Y. Ho (2006), “Understanding the Impact of Web Personalization on User Infor-mation Processing and Decision Outcomes,” in: MIS Quarterly, Vol. 30, 4, 865–890.Google Scholar