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In-App Advertising
In-App Advertising
In-App Advertising
Introduction
The number of global mobile phone and cellular subscriptions size is estimated to grow from
USD 21.15 Billion in 2016 to USD 112.29 Billion by 2021, at an estimated Compound
Annual Growth Rate (CAGR) of 39.64% from 2016 to 2021. 302 million mobile handsets
will be sold in India in 2019, the highest ever in a year. The usage of Smartphone has
increased in India as the cost of Smartphone and data plans have decreased drastically in the
last one - two years. The users are downloading Smartphone applications as they are curious
about new domains and areas. This provides ample opportunities for marketers to use the
mobile phone as a marketing media. Therefore, it is important to study Gen Y and Gen Z that
how they comprehend their attitudes toward the Smartphone applications as it may provide a
vast array of approaches for the marketer to communicate to its audience without facing the
risk of rejection. Moreover, investigating the mobile phone usage habits of Gen Y and Gen Z
would enlighten researchers with consumer behavior from interactive media. The present
study thus aims to explore Gen Y’s and Gen Z’s attitude toward in-app advertising and
Smartphone applications. In this project respondents are asked for which type of Smartphone
Applications they use and where they use it and for how hours much they use it, do they use
it all time or they just use it once and delete it after 1st use, do they share applications or not,
what problems do they found with Smartphone Applications, how they think about the In-
App Advertisement, what sort of Ads they have encountered with.
In-App Advertising
In-app advertisements are those campaigns that are portrayed through mobile applications.
The most common form of display ads are banner ads. Another form of In-app advertising is
based on location of the mobile subscriber. In-app ads help marketers develop more relevant
and specific advertisements for consumers. Moreover, research has found that the perceived
intrusiveness of a location congruent ad is less as compared to a location incongruent ad. In-
app advertising can be measured through metrics such as cost per impressions, cost per click
and cost per acquisition. The common ad formats are on screen banner ads which are
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displayed along with the content of the screen, interstitial ads which are featured before or
after the activity in the app, click-to-expand ads and pop-out-of-app ads.
Interstitial ads are often used in games and applications which have a sequence. The user
completes one part of the activity on the app and then moves on to another level. These ads
are effective as the user is expecting a break and is more receptive to advertisements. Click–
to-expand ads are those ads that expand in size with comprehensive information about the
brand on the same page. In this case, the user is not redirected to another page and hence it
saves time. Out-of-app ads stay on the device even after the user stops using the app.
However, this type of advertising could be viewed as a disruption of privacy, as the user has
not signed up for receiving ads on the device after the application is closed.
In-app advertising is an effective monetization strategy for mobile publishers, in which app
developers get paid to serve advertisements within their mobile app. Not only do apps drive
mobile usage, they also drive global media consumption. This makes in-app advertising a
vital marketing channel for brands and agencies. With sophisticated data tracking and user
targeting, the in-app environment also allows advertisers to reach consumers with pinpoint
accuracy.
Smartphone Applications
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Chapter 2
Research Objectives
1. To know the perception and orientation of Gen Y vs Gen Z.
2. To know the orientation of Gen Y in comparison to Gen Z towards Smartphone
Applications.
3. To know the orientation of Gen Y in comparison to Gen Z towards In- App
Advertising.
Research Question
1. What is the overall perception of Gen Y vs Gen Z respect to smartphones and mobile
applications?
2. What is the usage behavior of Gen Y vs Gen Z with respect to smartphone
Applications?
3. What is the overall perception of Gen Y vs Gen Z respect to In- App Advertisement?
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Chapter 3
Literature Review
According to Stephen Carter, Amy Chu-May Yeo, Journal Published in Internet
Research in year 2016
Thier research offers insights on the orientation of Gen Y toward mobile applications
and In-app advertising in a developing nation context. The study emphasizes the fact that
although Gen Y does not mind In-app advertisements they prefer ads that are based on
involvement with the apps, less intrusiveness of the ad, relevance, context, personalization,
credibility, and its usefulness. It was found that in--app advertising leads to higher brand
recall and this association can be further strengthened to generate purchase intention.
According to Eunice Kim, Jhih-Syuan Lin & Yongjun Sung, Journal published
in Journal of Interactive Advertising in year 2013
Their Study tells that the rapid growth of smartphone and smartphone application users,
mobile apps have attracted an increasing amount of attention as an engaging platform for
marketing communication. A content analysis of 106 branded apps of global brands found
that most global brands incorporate into their apps important engagement attributes that this
study examines (i.e., vividness, novelty, motivation, control, customization, feedback, and
multi plat forming) and frequently employ entertainment features. In addition, this study
shows the extent to which branded apps employ transformational and informational message
strategies. Last, branded apps feature a variety of brand-related content, including brand
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identifiers and virtual products. Practical implications of this study are discussed for mobile
advertisers and branded app designers.
According to him the internet has proven to be an efficient way of communicating, marketing
and selling products and services. In parallel with the internet, mobile communications and
3G (Third Generation) technologies have emerged to play a key role in business, and notably
direct marketing, and so emerging wireless mobile technology has been expected to bring
several opportunities for marketers. If mobile commerce is adopted by mobile phone users,
mobile retailers will gain a new revenue-generating direct marketing tool, in succession to
the internet.
Even though it is too early to decide whether mobile commerce and mobile marketing
services will be adopted or not in Turkey, the results of the survey help in establishing that
mobile commerce acceptance level is low, and that mobile phone users are not ready to
embrace mobile marketing in its fullest sense. Specifically, mobile phone users have a
negative attitude towards mobile shopping and are found to be somewhat ignorant of it.
Because mobile commerce is a very recent concept, mobile phone users have not adopted
mobile shopping in combination with the mobile phone. On the other hand, mobile
advertising, mobile discount coupons, mobile entertainment services, location-based mobile
services, mobile internet and mobile banking are more positively accepted by mobile phone
users.
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Chapter 4
Research Design
Descriptive Design
Descriptive research designs help provide answers to the questions of who, what, when,
where, and how associated with a particular research problem; a descriptive study cannot
conclusively ascertain answers to why. Descriptive research is used to obtain information
concerning the current status of the phenomena and to describe "what exists" with respect to
variables or conditions in a situation.
1. The results from a descriptive research cannot be used to discover a definitive answer
or to disprove a hypothesis.
2. Because descriptive designs often utilize observational methods [as opposed to
quantitative methods], the results cannot be replicated.
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3. The descriptive function of research is heavily dependent on instrumentation for
measurement and observation.
Sampling
Convenience sampling
Convenience sampling is perhaps the easiest method of sampling, because participants are
selected based on availability and willingness to take part. Useful results can be obtained, but
the results are prone to significant bias, because those who volunteer to take part may be
different from those who choose not to (volunteer bias), and the sample may not be
representative of other characteristics, such as age or sex. Note: volunteer bias is a risk of all
non-probability sampling methods.
Also known as selective, or subjective, sampling, this technique relies on the judgement of
the researcher when choosing who to ask to participate. Researchers may implicitly thus
choose a “representative” sample to suit their needs, or specifically approach individuals with
certain characteristics. This approach is often used by the media when canvassing the public
for opinions and in qualitative research.
Judgement sampling has the advantage of being time-and cost-effective to perform whilst
resulting in a range of responses (particularly useful in qualitative research). However, in
addition to volunteer bias, it is also prone to errors of judgement by the researcher and the
findings, whilst being potentially broad, will not necessarily be representative.
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Data Collection
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Chapter 5
Data Analysis
1. Gender
Table No. 1
Chart No. 1
Gender
0%
43% Male
Female
Interpretation: - It is came out to be that out of 100 respondents 57 respondents are male
compared to female i.e. 47 and no third gender. This pie chart is clearly indicating that Males
are much more active towards the Smartphone usage.
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2. Age
Table No. 2
Chart No. 2
Age
7%
17%
18 or below
5%
19-25
6% 26-30
31-40
above 40
65%
Interpretation: - Age groups 18 or below, 19-25, 26-30 are the respondents who born
between in years 1989- present and represents Gen Z. Age groups 31-40 and 40 above are the
respondents born between in years 1969-1988 and represents the Gen Y. It is clear that Gen
Z having more respondents compared to Gen Y, which shows Gen Z is showing more
interest in using of Smartphone Applications.
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3. Annual Income
Table No. 3
Rs. 1,00,000 or Rs. 1,00,001 – Rs. Rs. 5,00,001- Rs. Rs. 10,00,001 or
below 5,00,000 10,00,000 above
43 36 14 7
Chart No. 3
Annual Income
7%
14%
Rs. 1,00,000 or below
43%
Rs. 1,00,001 – Rs. 5,00,000
Rs. 5,00,001- Rs. 10,00,000
Rs. 10,00,001 or above
36%
Interpretation: - Out of 100 Respondents 43% of respondents having Annual Income Rs.
1,00,000 or below and 36% respondents having the Annual Income between Rs. 1,00,001-
Rs. 5,00,000. Remaining respondents having Annual income above Rs. 5,00,000. Therefore,
Maximum Number of Smartphone Users are belong between Rs. 1,00,000 or below to Rs.
5,00,000 Annual Income.
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4. Do you use Smartphone Apps?
Table No. 4
Yes No
100 0
Chart No. 4
No, 0
Yes, 100
Interpretation: - All the 100 Respondents are using the Smartphone Applications.
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5. Which kind of Smartphone Applications do you use? (Select maximum 5
Applications)
Table No. 5
13
Chart No. 5
82
73
58
54 54
48
31 34 31
19
9 7
14
6. On an average how many Smartphone Applications do you use?
Table No. 6
Chart No. 6
7%
Less Than 10
36% 10-20
More than 20
57%
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7. For how many hours a day you spend your time using your Smartphone
Applications?
Table No. 7
Less than an 1-2 hours 2-3 hours 3-4 hours More than 4
hour hours
9 35 19 21 16
Chart No. 7
9%
16%
19%
Interpretation: - 35% of respondents are using the Smartphone applications for 1- 2 hours
and 9% of respondents are using the Smartphone Applications for less than an hour.
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8. Please rate the following statement on the characteristics of Smartphone
Applications. (Where 1 Means strongly agree and 7 Means strongly disagree).
8.1 I find Smartphone applications useful.
25
25
21
18
20
15
11 11
9
10
5
5
0
1 2 3 4 5 6 7
Rating Scale
Interpretation: - Out of 100 Respondents 64 are agreeing with this statement and 25 are
disagreeing, followed by 11 respondents who are neither agreeing with the statement and nor
disagreeing with the statement.
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8.2 I consider Smartphone Applications are necessary.
29
30
25
20
18
20
15 12
10 9
10
5 2
0
1 2 3 4 5 6 7
Rating Scale
Interpretation: - Out of 100 Respondents 61 are agreeing with this statement and 29 are
disagreeing, followed by 10 respondents who are neither agreeing with the statement and nor
disagreeing with the statement.
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8.3 I consider Smartphone Applications are effective (Easy to use, Saves times).
29
30
25 22
20
14 13
15
10
8
10
4
5
0
1 2 3 4 5 6 7
Rating Scale
Interpretation: - Out of 100 Respondents 61 are agreeing with this statement and 31 are
disagreeing, followed by 8 respondents who are neither agreeing with the statement and nor
disagreeing with the statement.
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8.4 I can communicate better with others via Smartphone Applications.
25
21
19
20 18
15
15
10 10
10 7
0
1 2 3 4 5 6 7
Rating Scale
Interpretation: - Out of 100 Respondents 58 are agreeing with this statement and 35 are
disagreeing, followed by 7 respondents who are neither agreeing with the statement and nor
disagreeing with the statement.
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8.5 Smartphone Applications helps me to pass time.
24
25
20
16 16
14
15 13
9
10 8
0
1 2 3 4 5 6 7
Rating Scale
Interpretation: - Out of 100 Respondents 56 are agreeing with this statement and 30 are
disagreeing, followed by 14 respondents who are neither agreeing with the statement and nor
disagreeing with the statement.
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8.6 Smartphone Applications serve as an alternative to the computer applications
/software.
25 22
20
20
14
13 13
15
10
8
10
0
1 2 3 4 5 6 7
Rating Scale
Interpretation: - Out of 100 Respondents 55 are agreeing with this statement and 31 are
disagreeing, followed by 14 respondents who are neither agreeing with the statement and nor
disagreeing with the statement.
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9. How often do you check your most preferred installed application?
Table No. 9
Chart No. 9
2%
12%
Interpretation: - 64% of respondents check their most preferred app 1-10 times, followed by
22% who check their most preferred app 11-20 times, 12% checking 21-50 times and only
2% respondents are there who checks their most preferred app more than 50 times a day.
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10. Where do you check your Smartphone applications the most?
Table No. 10
Chart No. 10
While travelling
23%
At office
7%
At home
70%
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11. Please rate the following statement on your behaviour towards Smartphone
Applications. (Where 1 means Strongly Agree and 7 Means Strongly Disagree).
11.1 Checking Smartphone Applications is the first thing in the morning and
last thing in the night.
24
25
20 16 16
14
13
15
9
8
10
0
1 2 3 4 5 6 7
Rating Scale
Interpretation: - Out of 100 Respondents 56 are agreeing with this statement and 30 are
disagreeing, followed by 14 respondents who are neither agreeing with the statement and nor
disagreeing with the statement.
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11.2 I check Smartphone Apps while watching Television.
25 22
20
16
14 14
15 13 13
10 8
0
1 2 3 4 5 6 7
Rating Scale
Interpretation: - Out of 100 Respondents 49 are agreeing with this statement and 38 are
disagreeing, followed by 13 respondents who are neither agreeing with the statement and nor
disagreeing with the statement.
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11.3 Many a times I don't open the installed Application after 1st use.
25 23
19
20 17
14
15
10 10
10 7
0
1 2 3 4 5 6 7
Rating Scale
Interpretation: - Out of 100 Respondents 59 are agreeing with this statement and 27 are
disagreeing, followed by 14 respondents who are neither agreeing with the statement and nor
disagreeing with the statement.
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11.4 I share the installed Application with friends/ relatives.
25 22
20 18
16
15
15 12
11
10
6
0
1 2 3 4 5 6 7
Rating Scale
Interpretation: - Out of 100 Respondents 55 are agreeing with this statement and 33 are
disagreeing, followed by 12 respondents who are neither agreeing with the statement and nor
disagreeing with the statement.
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11.5 I feel satisfied after using an Application.
24
25
20 20
20
14
15
10 8 8
6
0
1 2 3 4 5 6 7
Rating Scale
Interpretation: - Out of 100 Respondents 52 are agreeing with this statement and 28 are
disagreeing, followed by 14 respondents who are neither agreeing with the statement and nor
disagreeing with the statement.
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11.6 Sometimes I feel addicted towards the Smartphone Application usage.
20
20
18 16 16
16
13
14 12 12
11
12
10
8
6
4
2
0
1 2 3 4 5 6 7
Rating Scale
Interpretation: - Out of 100 Respondents 52 are agreeing with this statement and 35 are
disagreeing, followed by 13 respondents who are neither agreeing with the statement and nor
disagreeing with the statement.
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11.7 I delete an installed Application immediately if it doesn't meet my
requirement/ needs.
29
30
25
20 16
13 14
15
9 9 10
10
0
1 2 3 4 5 6 7
Rating Scale
Interpretation: - Out of 100 Respondents 54 are agreeing with this statement and 33 are
disagreeing, followed by 13 respondents who are neither agreeing with the statement and nor
disagreeing with the statement.
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11.8 I might purchase a premium app or premium version of an app if I find it
relevant.
25 22
20 17
16 16
15 13
10 8 8
0
1 2 3 4 5 6 7
Rating Scale
Interpretation: - Out of 100 Respondents 46 are agreeing with this statement and 41 are
disagreeing, followed by 13 respondents who are neither agreeing with the statement and nor
disagreeing with the statement.
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12. Please check the issues you find with Smartphone Applications.
Table No. 12
Chart No. 12
In-App Advertisement 59
0 10 20 30 40 50 60 70
Interpretation: - People find In- App Advertisement an issue while using the Smartphone
application followed by storage space taken by some applications, least issue that people find
while using the Smartphone applications is excessive Data Consumption of application.
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13. Please tick the kind of In-App Advertisement you have been exposed to.
Table No. 13
Chart No. 13
Video Ads 69
Pop-up Ads 72
Banner Ads 59
0 10 20 30 40 50 60 70 80
Interpretation: - Out of these 3 types’ advertisement people has exposed to Pop-up Ads
most followed by Video Ads and least they have exposed to Banner Ads.
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14. Please rate the following statement on the scale of 1-7 (where 1 = strongly agrees
and 7 = strongly Disagree).
25
25
20 16
14 13 13
15
9 10
10
0
1 2 3 4 5 6 7
Rating Scale
Interpretation: - Out of 100 Respondents 33 are agreeing with this statement and 57 are
disagreeing, followed by 10 respondents who are neither agreeing with the statement and nor
disagreeing with the statement.
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14.2 I click/tap the In-App advertisement shown to me.
24
25
20 18
14 14
15 13
12
10
5
5
0
1 2 3 4 5 6 7
Rating Scale
Interpretation: - Out of 100 Respondents 31 are agreeing with this statement and 56 are
disagreeing, followed by 13 respondents who are neither agreeing with the statement and nor
disagreeing with the statement.
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14.3 I might purchase a product/service via In- App Advertisement.
25 23
20 18
17
14
15 12
10 8 8
0
1 2 3 4 5 6 7
Rating Scale
Interpretation: - Out of 100 Respondents 39 are agreeing with this statement and 53 are
disagreeing, followed by 8 respondents who are neither agreeing with the statement and nor
disagreeing with the statement.
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14.4 I think the use of In-App Advertisements by companies is a good source
of promoting a product/service.
25 22
20 17 17
15 13 13
10
10 8
0
1 2 3 4 5 6 7
Rating Scale
Interpretation: - Out of 100 Respondents 47 are agreeing with this statement and 31 are
disagreeing, followed by 22 respondents who are neither agreeing with the statement and nor
disagreeing with the statement.
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15. Do you like the idea of In- App Advertisement?
Table No. 15
Yes No
51 49
Chart No. 15
Yes
49% 51%
No
Interpretation: - 51% respondents like the idea of In-App Advertisement and 49% do not
like the Idea.
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16. If yes, which location do you prefer for the ad placement in an Application?
Table No. 16
Chart No. 16
5%
39%
56%
Interpretation: - Out of 51% of respondents 56% like the Ad placement at bottom of the
screen, 39% like the Ad placement at Top of the screen and 5% are in the favor of other
location
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Chapter 6
It comes out that Number of Male users are high compared to Female.
Gen Z is the Majority of the users who uses Smartphone Applications compared
to Gen Y.
Majority of respondents have the annual income between Re. 0 – Rs. 5,00,000
and few have the annual income above Rs. 5,00,000.
Both generations are using the Smartphone Applications.
Entertainment Applications are used most among both Generations.
Mostly people are using less than 10 Smartphone Applications.
On an average people are using the Smartphone applications for 1- 3 hours a day.
Majority of the sample size has agreed for the following statements related to the
characteristics of Smartphone Applications.
o I find Smartphone Applications useful.
o I consider Smartphone Applications are necessary.
o I consider Smartphone Applications are effective (Easy to use, Saves
time).
o I can communicate better with others via Smartphone Applications.
o Smartphone Applications help me to pass time
o Smartphone Applications serve as an alternative to the computer.
Majority of people check there most preferred installed application about 1-10times a
day.
People are checking their Smartphone applications mostly when they are at home.
Majority of the sample size has agreed for the following statements related to their
behavior towards Smartphone Applications.
o Checking Smartphone Applications is the first thing in the morning and
lasting in the night.
o I check Smartphone Apps while watching Television.
o Many a times i don't open the installed Application after 1st use.
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o I share the installed Application with friends/ relatives.
o I feel satisfied after using an Application.
o Sometimes I feel addicted towards the Smartphone Application usage.
o I delete an installed Application immediately if it doesn't meet my
requirement/ needs.
o I might purchase a premium app or premium version of an app if I find it
relevant.
People find In- App Advertisement as a issue with other issues like lots of apps
creating confusion, apps taking storage space etc. But they find In- App
advertisement as a nice source of getting information about products/ services.
Majority of Sample Size is exposed to Pop-up Ads followed by Video and Banner
Ads.
For the following statements the population has shown a negative response related to
In- App Advertisement.
o I pay attention to the In- App Advertisements.
o I click/tap the In-App advertisement shown to me.
o I might purchase a product/service via In-App Advertisement.
People like to see the In- App advertisement at the bottom of the screen.
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television. This implies that the marketers need to increase their visibility on more than one
media in order to earn the trust of the consumers. Consumers are very keen on location-based
apps and are comfortable with geo-targeting only within these apps. They would like to
receive location-based discounts, coupons and information on new launches. Retailers
must, therefore, actively use location-based services to target both the generations.
Limitations of study
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Chapter 7
Bibliography
Journals
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undergraduates and postgraduates: Implications for consumer behavior theory and
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Ketaki Bhave, Varsha Jain, Subhadip Roy(2013), Understanding the orientation of
Gen y toward Mobile Applications and In- App Advertising in India. International
journal of mobile marketing, Vol 8 No. 1, retrieved from
https://www.mmaglobal.com/files/vol8no1/IJMM-Summer-2013.pdf#page=63.
Eunice Kim, Jhih-Syuan Lin & Yongjun Sung (2013), To App or Not to App:
Engaging Consumers via Branded Mobile Apps. Journal of Interactive Advertising,
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https://www.tandfonline.com/doi/abs/10.1080/15252019.2013.782780.
Süleyman Barutçu(2007), Attitudes towards mobile marketing tools: A study of
Turkish consumers. Journal of targeting, measurement and analysis for marketing,
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https://link.springer.com/article/10.1057/palgrave.jt.5750061.
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Annexure
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