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Mobile Advertising

Ads-in-the-moment are the fastest growing segment of the advertising industry. This is the mobile advertising industry, which relies on spontaneity and instant reaction. Persuasive advertising bends the demand curve by creating genuine (or spurious) product differentiation and brand loyalty. Mobile advertising promotes impulse buying, which is captive to persuasion so that mobile devices can be strong channels for persuasive advertising. When consumer preferences are malleable, they can be made less sensitive to price increases, thereby increasing the profit margin. Branding and loyalty programs seek to follow the latter strategy.21 Hence, the goal of advertising is not only to increase demand but also to increase brand loyalty. Experience goods, where quality is determined only after purchase, are more susceptible to persuasion. Consumers could be persuaded to believe that there is a better match between product and buyer relative to other goods. Or they could be reminded of a previous experience in order to generate repeat business.

There has been an increasing interest in “event television programs,” like sports, which draw advertisers because viewers watch the program live, as in the 2014 Soccer World Cup. Viewers must see the ads - there is no option to skip the ads as in more general media programming. Increased participation in SM has generated significant increases in marketing budgets devoted to digital media in general, and mobile devices, in particular. The combination of event advertising and mobile devices is powerful since attendees at the live event will likely be connected to their devices, making

them perfect targets for mobile advertisements while watching the live


event in person.

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