Location: Why Geography Matters

Tap ◽  
2017 ◽  
Author(s):  
Anindya Ghose
Keyword(s):  
Real Time ◽  
Purchase Decisions ◽  
Mobile Advertising ◽  
Product Preferences ◽  
Zip Code

This chapter examines one of nine critical forces behind purchase decisions that make mobile advertising so powerful: location. For many decades, location-based marketing usually meant being able to target users at the level of ZIP codes. Every consumer in the same ZIP code received the same offer, presumably because they had homogeneous preferences stemming from similar socioeconomic and demographic backgrounds. However, in today's mobile economy, firms can know in real time which store someone is visiting, which aisle in the store someone is standing in, and in some cases estimate shelf location of the product someone is staring at. Consumers' location histories are very predictive of their product preferences. This means their locations will influence their responses to marketing offers.

Time: It’s On Your Side

Tap ◽  
2017 ◽  
Author(s):  
Anindya Ghose
Keyword(s):  
Real Time ◽  
Positive Response ◽  
Time Of Day ◽  
Advertising Effectiveness ◽  
Purchase Decisions ◽  
Mobile Advertising ◽  
Individual Consumer ◽  
Coupon Redemption ◽  
Day Of The Week ◽  
The Relationship

This chapter examines one of nine critical forces behind purchase decisions that make mobile advertising so powerful: time. It addresses questions such as: How can advertisers use time to their advantage to reach their target audience? Now that smartphones give advertisers the opportunity to reach an individual consumer in real time, what is the secret to getting the timing and the ad right? What is the best way to deliver a timely advertisement that will trigger a positive response? The chapter discusses advertising effectiveness based on time of day, advertising effectiveness based on day of the week, effectiveness of coupon redemption windows, the relationship between redemption windows and geography, and mobile advertising and its effect on different stages of the purchase funnel.

Tech Mix: Solving Wanamaker’s Riddle

Tap ◽  
2017 ◽  
Author(s):  
Anindya Ghose
Keyword(s):  
Two Dimensions ◽  
Purchase Decisions ◽  
Mobile Advertising ◽  
Holy Grail ◽  
Multiple Devices

This chapter examines one of nine critical forces behind purchase decisions that make mobile advertising so powerful: tech mix. Tech mix can be described as a force that enables businesses to pursue omni-channel marketing. It has two dimensions. First, consumers today spend time on multiple devices (or multiple screens) and this sort of multihoming creates an interdependency between devices that firms can tap into. Second, consumers are exposed to multiple ad messages in different ad formats for the same brand across different channels at different points in time in their path to purchase. This creates potential omni-channel synergies. These two dimensions of tech mix influence consumers' behavior in non-trivial ways and have made digital attribution the holy grail of advertising.

Trajectory: Watch Where You’re Walking

Tap ◽  
2017 ◽  
Author(s):  
Anindya Ghose
Keyword(s):  
Three Dimensions ◽  
Purchase Decisions ◽  
Mobile Advertising ◽  
Front Door ◽  
Number Of Factors ◽  
Day Of The Week ◽  
Spatial Trajectory

This chapter examines one of nine critical forces behind purchase decisions that make mobile advertising so powerful: trajectory. An individual's trajectory is the physical, behavioral trace of his or her offline movements. Firms can measure when we walk past their physical stores, when we come through the front door, when we walked up to the second floor, and so on. Trajectory has three dimensions: time, route, and velocity. Time includes the starting and ending point of the trajectory and the day of the week. Route is not location itself, but rather a way to determine how similar someone's spatial trajectory is to others. Velocity contains information about how fast the individuals are moving. Underlying these three dimensions is a fourth and far more granular dimension called semantics. Semantics takes a number of factors into account, such as the likelihood that someone may visit a certain store, how much time they spend there, how much time they spend moving to another location, and how related or unrelated those two stores are.

Saliency: Can You See Me Now?

Tap ◽  
2017 ◽  
Author(s):  
Anindya Ghose
Keyword(s):  
Position Effect ◽  
Purchase Decisions ◽  
Trial And Error ◽  
Mobile Advertising ◽  
Ideal World ◽  
Error Process

This chapter examines one of nine critical forces behind purchase decisions that make mobile advertising so powerful: saliency. Today's consumers may find advertising annoying, but they fear missing out and would prefer not to waste time in the trial-and-error process of searching for what they need. They want choice and freedom, but they also get easily overwhelmed. Imagine an ideal world where we don't need to scroll down and squint to find what we want. We don't need to refine and repeat our search or make a tough call. We always get the “best right answer” with the least possible effort. This is referred as saliency or the position effect. Consumers want to see the best right answer stand out on their screens. Advertisers, retailers, and other marketers want their message to be that “best right answer.”

Social Dynamics: You Are Who You’re With

Tap ◽  
2017 ◽  
Author(s):  
Anindya Ghose
Keyword(s):  
Social Context ◽  
Social Dynamics ◽  
Group Composition ◽  
Family Members ◽  
Real Life ◽  
Purchase Decisions ◽  
Mobile Advertising ◽  
The Social ◽  
The Impact

This chapter examines one of nine critical forces behind purchase decisions that make mobile advertising so powerful: social dynamics. Recent studies have shown that the social company we keep changes our behavior. This is our social context. Beyond our individual location at any given time, our social context influences how we interact in real life as part of a group of friends, as a couple, or with family members. And these behaviors are fundamentally different than how we behave when we are on our own. The chapter discusses the impact of social dynamics on mobile purchases, the importance of group composition, and digging deeper into consumers' personalities.

Weather: Creating the Perfect Storm

Tap ◽  
2017 ◽  
Author(s):  
Anindya Ghose
Keyword(s):  
Decision Making ◽  
Scientific Literature ◽  
Business Success ◽  
Purchase Decisions ◽  
Mobile Advertising ◽  
Medium Term ◽  
Short Term ◽  
Success Stories ◽  
Perfect Storm

This chapter examines one of nine critical forces behind purchase decisions that make mobile advertising so powerful: weather. Weather is ubiquitous and omnipresent. Scientific literature tells us just how strongly weather can influence our behavior, our moods, and our short-term, medium-term, and long-term decision making. One study showed that when our moods change, weather can account for as much as 40 percent of that change. Weather also offers that special ingredient that helps improve our understanding and find ways to make advertising a lucrative win-win for businesses and customers: lots and lots of data. The chapter introduces a mix of academic studies and business success stories, which show that the value of weather as a very influential driver of behavior. It discusses how weather affects mobile purchases and drives sales of big-ticket items.

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