2010 EABR & ETLC Conference Proceedings

Dublin, Ireland

SMS Advertising Business Model: Toward Finding Vital Elements Of Its Value Model
SeyedAlireza Mirbagheri, Sharif University of Technology, Iran Abstract Most predictions express that mobile advertising will become a prosperous business in coming years (e.g. the annually growth of 40%). In this paper, I will introduce a practical scenario for SMS advertising business model in which main SMS advertising business actors (i.e. advertiser, mobile network operator, mobile advertising agency, and end user), their roles, their potential benefits, and their revenue sources are described. Besides, I will present 10 vital elements of SMS advertising value model: (1) Ease of opting-in SMS ads, (2) Ease of opting-out SMS ads, (3) Being relevant to end users fields of interest, (4) Sending at the appropriate times and locations (5) Monetary incentives, (6) Having informative contents, (7) Being entertaining, (8) Limited frequency of exposure, (9) Sending at non-disturbing times, (10) Providing privacy protection. Finally, I will develop 5 research propositions in order to be used in investigating effect of vital elements of SMS advertising value model on end users perceived value. Key words: Business model, value model, mobile advertising, Short Message Service (SMS) Introduction Number of mobile subscribers at the end of 2008 exceeds four billion persons (ITU, 2009). Moreover, at the end of 2007, mobile penetration rate was about 40% throughout the world (ITU, 2009), while it was 117% in Europe, 84% in US and 82% in Japan (GSMA, 2008). One feature of mobile phone network is short messaging service (SMS) which allows subscribers to send and receive text and numeric messages (Yunos & Gao, 2004) and it is limited to 160 Latin characters. Nowadays use of SMS has evolved from a merely client to client model to a machine-customer model by providing services such as games, payments, receipts, and informing (Olla & Atkinson, 2004). In recent years, all produced mobile phones support SMS, which has provided a large accessible market for SMS advertising campaigns (MMA, 2009). In addition, fragmentation of today markets complicates reaching consumers and decreases effectiveness of non-personal mass communication (especially advertising through traditional media like TV, Radio, and magazine); as a result, targeted and personal marketing communication (like SMS advertising) becomes more important (Leppniemi & Karjaluoto, 2008). Most predictions, accordingly, express that mobile advertising will become a prosperous business in coming years (Sadeh, 2002) and it is expected that mobile advertising will become the best targeted medium among all advertising media (Leppniemi & Karjaluoto, 2005). According to eMarketer, in 2007 approximately $2.5 billion was spent for SMS advertising and it is predicted that this figure will reach up to $14 billion by 2012 (eMarketer, 2008); this statement shows the annually growth of 40% in SMS advertising market. According to one definition mobile advertising refers to advertising and marketing activities that deliver advertisements to mobile devices using wireless network and mobile advertising solutions to promote the sales of goods and services, or build brand awareness (Yunos & Gao, 2004, p. 2). Mobile advertising also can be defined as any paid message communicated by mobile media with the intent to influence the attitudes, intentions and behavior of those addressed by the commercial messages (Leppniemi, Karjaluoto, & Salo, 2004, p. 93). Mobile advertising began with SMS advertising (Kim & Jun, 2008) and now, according to Mobile Marketing Association classification, various mobile tools and options can be used for mobile marketing communication (MMA, 2009): (1) mobile web sites (2) mobile applications (3) Short Message Service (SMS) (4) Multimedia Messaging Service (MMS) (5) Mobile video and TV. Furthermore, WAP push messages (Komulainen, Mainela, Sinisalo, Thtinen, & 815

2010 EABR & ETLC Conference Proceedings Dublin, Ireland Ulkuniemi, 2006) and file transfer (sound, picture, and so on) by means of Bluetooth can be employed. Among all these channels, this paper focuses on SMS channel. SMS advertising owns unique characteristics and capabilities which highlight its importance compared to other media: Since all mobile phones can receive SMS and people hold their mobile devices whole the day, SMS advertising can reach them approximately anytime and anywhere (Bulander, Decker, Schiefer, & Klmel, 2005; Nysveen, Pedersen, Thorbjrns, & Berthon, 2005). Interactive communication and quick response to SMS ads is viable (Bulander, Decker, Schiefer, & Klmel, 2005; Yaniv, 2008) thus marketers can gather campaign results quickly (Leppniemi & Karjaluoto, 2008). SMS advertising is capable that viral marketing (i.e. word of mouth marketing) is put into practice and the reach of a campaign is multiplied (Karjaluoto, Lehto, Leppniemi, & Mustonen, 2007; MMA, 2009) . Response rate of correctly targeted SMS advertising campaigns is more than such campaigns via other channel. As an illustration, the response rate of mobile marketing campaigns was reported on average 31%, while the same figure for permission-based e-mail marketing is announced from 1% to 8% (Rettie, Grandcolas, & Deakins, 2005) and the response rate of printed advertising are reported 0.15% to 0.60% (Kavassalis, Spyropoulou, Drossos, Mitrokostas, Gikas, & Hatzistamatiou, 2003). SMS advertising campaigns can achieve high level of attention, in that mobile users usually dont delete short messages unless they open and read at least some parts of messages (MMA, 2009). SMS advertising campaigns are relatively low cost and cost-effective (Kavassalis, Spyropoulou, Drossos, Mitrokostas, Gikas, & Hatzistamatiou, 2003; Michael & Salter, 2006). This paper intends to develop a practicable scenario for SMS advertising business model and specially put emphasis on identifying vital elements of SMS advertising value model which are critical for survival and growth of SMS advertising businesses. In the following sections, first, I explain a practical scenario for SMS advertising business model containing main business actors, their potential benefits, and their revenue sources. Next, by using results of previous empirical and theoretical researches, vital elements of SMS advertising value model are elaborated. Finally, research implications and conclusion will be discussed. A practical scenario for SMS advertising business model Timmers defines business model as architecture for the product, service and information flows, including a description of the various business actors and their roles; and a description of the potential benefits for the various business actors; and a description of the sources of revenues (Timmers, 1998). In another similar definition by Osterwalder, a business model is a conceptual tool that contains a set of elements and their relationships and allows expressing a company's logic of earning money. It is a description of the value a company offers to one or several segments of customers and the architecture of the firm and its network of partners for creating, marketing and delivering this value and relationship capital, in order to generate profitable and sustainable revenue streams (Osterwalder, 2004, p. 15). In this article, Timmers definition is utilized for developing a practical scenario for SMS advertising business model thus SMS advertising business actors should be identified and also their roles, their potential benefits, and their revenue sources should be described. Proposed scenario for SMS advertising business model (i.e. four main SMS advertising actors and money flow, goods or services flow, information flow, and advertisement content flow among them) is shown schematically in Figure 1, and it is discussed exhaustively in remaining part of this section.

816

2010 EABR & ETLC Conference Proceedings

Dublin, Ireland

Mobile network operators

SMS delivering services Subscribers information

SMS ad content Money flow Good/service flow

SMS ad content

Advertiser

Money SMS advertising services

Mobile advertising agency

Money

Information flow

SMS ad content

End user

Good or service Money

Figure 1: A practical scenario for SMS advertising business model

SMS advertising business actors and their roles Researchers have identified various actors in mobile advertising business such as advertiser, application provider, infrastructure provider, mobile network operator, mobile advertising agency, provider of context information, and end user(Kavassalis, Spyropoulou, Drossos, Mitrokostas, Gikas, & Hatzistamatiou, 2003; Leppniemi, Karjaluoto, & Salo, 2004; Bulander, Decker, Schiefer, & Klmel, 2005; Komulainen, Mainela, Sinisalo, Thtinen, & Ulkuniemi, 2006). Advertiser, seller of goods or services, provides SMS advertisement content1, and application provider supplies required software system for sending and managing SMS ads; infrastructure provider equips mobile network infrastructure; mobile network operator provides access to wireless network and facilitates SMS advertising by renting the network from infrastructure provider (Komulainen, Mainela, Sinisalo, Thtinen, & Ulkuniemi, 2006). Mobile advertising agency is the central actor aggregating all business actors and offers appropriate mobile advertising services. Provider of context information supplies contextual information like weather, traffic conditions, and results of particular events such as sport events (Bulander, Decker, Schiefer, & Klmel, 2005). End user is a mobile subscriber receiving SMS ads. To develop a practical business model, I have chosen four main actors among all mentioned actors: advertiser, mobile network operator, mobile advertising agency, and end user. On the grounds that presence of a few mobile network operator in each geographic area is probable and advertisers tend to communicate with all of their target audience regardless of what mobile network operator serves them, a third party firm such as mobile advertising agency (as shown in Figure 1) can play an intermediary role among advertisers, mobile network operators, and end users (Gopal & Tripathi, 2006).

1 I have supposed SMS ad content is provided solely by advertiser, whereas it can also be prepared by consulting with mobile advertising agency.

817

2010 EABR & ETLC Conference Proceedings Potential benefits for SMS advertising business actors, and their revenue sources

Dublin, Ireland

Potential benefits and revenue sources of four main SMS advertising business actors (i.e. advertiser, mobile network operator, mobile advertising agency, and end user) are explained below. Advertisers potential benefits and revenue sources Advertisers can use SMS advertising services provided by a mobile advertising agency to communicate with their target audience at the right time and right place. They can reach a wide range of audience who are subscribers of different mobile network operators (Gopal & Tripathi, 2006). Furthermore, SMS advertising leads to substantially higher return on investment compared to other advertising channels, advertisers also can monitor all stages of consumers response to SMS adsfrom reading SMS to actual purchase (Demarneffe, 2008). Advertisers sources of revenue derive from end users decision to buy their products after exposing to SMS ads; moreover, end users may forward received SMS ads to their friend, which can influence more persons to purchase advertisers products (Komulainen, Mainela, Sinisalo, Thtinen, & Ulkuniemi, 2006). Mobile network operators potential benefits and revenue sources Network operators earn money by charging mobile advertising agencies in exchange for sending SMS ads. Furthermore, profit margin of short messaging services is declining in many operators markets, so propagation of SMS advertising can enhance profit by increasing utilization of network capacity (Gopal & Tripathi, 2006; Yaniv, 2008). If there is no prohibition, mobile network operators can sell subscribers information (such as location) to mobile advertising agencies (Camponovo & Pigneur, 2003). Operators, moreover, can establish a mobile advertising agency as their subsidiary to raise their revenue and use subscribers information without any prohibition (e.g. SK Telecom, a South Korean operator, established AirCROSS). Mobile advertising agencies potential benefits and revenue sources Mobile advertising agencies should contract with regional mobile network operators for obtaining not only access to required infrastructure for sending SMS ads but also subscribers information such as location information at different occasions (Gopal & Tripathi, 2006), demographic information, geographical information, habits and preferences in using mobile, internet surfing history, and kind of mobile handset (Yaniv, 2008). Most of network operators gather only consumers geographic and real time location information, and (because of privacy issues and probability of abusing such information) they are banned from selling such information in many countries. Hence, one critical success factor for a mobile advertising agency would be developing a database by gathering end users information (Komulainen, Mainela, Sinisalo, Thtinen, & Ulkuniemi, 2006) and owning data-mining knowledge (Demarneffe, 2008) to be able to not only select the audience as highly targeted as possible but also improve the effectiveness of advertisements. Furthermore, mobile advertising agencies should prepare hardware and software facilities (e.g. through an application provider) to be capable of delivering messages and monitoring results of SMS advertising. Revenue sources of a mobile advertising agency derive from payments received from advertisers for providing SMS advertising services. The charged fee includes the utilization of end users database, cost of sending SMS to targeted end users (Komulainen, Mainela, Sinisalo, Thtinen, & Ulkuniemi, 2006), and the other services. The charged fee can be calculated by different revenue models such as flat fees (i.e. fixed amount of money in exchange for SMS advertising services), performance-based fees (i.e. variable fees based on actual results of SMS advertising like response rate and actual sales), and hybrid models (Sadeh, 2002). End users potential benefits End users are the most important actors in SMS advertising business, in that success or failure of the business is closely related to them (Camponovo & Pigneur, 2003). Accordingly, it is essential for survival of a business in this industry to identify and propose the benefits which affect end users (i.e. potential customers) to perceive SMS advertising as a valuable service. In other words, end users are consent to receive SMS 818

2010 EABR & ETLC Conference Proceedings Dublin, Ireland advertisements in exchange for obtaining these potential benefits (i.e. values) called value model in this article. SMS advertising value model, an important part of SMS advertising business model, is discussed completely in the next section. SMS advertising value model SMS advertising cannot be effective unless end users perceive it as a valuable service with definite benefits. That is, if SMS advertising is perceived as intrusive or irrelevant by target audience (i.e. end users), negative reactions are likely (Barwise & Strong, 2002) and customers may be lost forever (Demarneffe, 2008). As a result, it is critical for success of SMS advertising business that elements of SMS advertising value model (i.e. description of values should be proposed to final customers) are identified. After reviewing the literature, I identified 14 important elements affecting on consumers perception of SMS advertising, and I classified them in six general categories (Figure 2) discussed in following parts of this section.

Relevance

Appeal and benefit

Simplicity

Absence of disturbance

Permission

Value Model

Trust

Figure 2: categorization of elements of SMS advertising value model

Permission Permission has a significant and positive effect on end users attitude toward SMS advertising, and the attitude is positively related to end users intention to receive SMS ads (Tsang, Ho, & Liang, 2004). It means that SMS ads will be perceived valuable provided that end users give explicit permission for sending SMS ads (i.e. opt in), and mobile advertising agencies provide a simple mechanism to allow end users to opt out at any time (Muk & Babin, 2006; Carroll, Barnes, Scornavacca, & Fletcher, 2007; Drossos, Giaglis, Lekakos, Kokkinaki, & Stavraki, 2007; Demarneffe, 2008; Tsang, Ho, & Liang, 2004; Vatanparast, 2007). In addition, end users should have control over settings of SMS ads like frequency, time of receiving, and so on (Carroll, Barnes, Scornavacca, & Fletcher, 2007; Demarneffe, 2008). On the other hand, there is one empirical research in Finland shows that end users permission does not significantly influence them to perceive and accept SMS advertising as a valuable service 2 (Merisavo, et al., 2007).

2 One explanation for this contradictory finding could be that whereas sending SMS ads without end users permission is illegal in European Union (Komulainen, Mainela, Sinisalo, Thtinen, & Ulkuniemi, 2006), Finnish subjects in this research took permission-based advertising for granted (Merisavo, et al., 2007).

819

2010 EABR & ETLC Conference Proceedings Simplicity

Dublin, Ireland

Simplicity of SMS ads is positively correlated with end users acceptance and attitude toward SMS advertising. Simplicity can be assessed by criteria such as easiness of interacting with SMS ads (Muk & Babin, 2006; Vatanparast, 2007) and having non-confusing information (Haghirian, Madlberger, & Tanuskova, 2005; Vatanparast, 2007). Relevance Researchers have evaluated relevance of content and context of SMS ads from two viewpoints: first, sending SMS ads relevant to end users fields of interest will have a significant influence on perceiving SMS advertising as valuable service (Haghirian, Madlberger, & Tanuskova, 2005; Merisavo, et al., 2007; Vatanparast, 2007; Demarneffe, 2008; Xu, Liao, & Li, 2008). Second, SMS ads will provide more value for end users if they are received at the appropriate times and locations such as a lunch suggestion while prospect is nearby a favorite restaurant at noon (Merisavo, et al., 2007; Carroll, Barnes, Scornavacca, & Fletcher, 2007; Vatanparast, 2007; Xu, Liao, & Li, 2008; Demarneffe, 2008); however, there are few empirical researches do not support the second viewpoint (Muk & Babin, 2006; Drossos, Giaglis, Lekakos, Kokkinaki, & Stavraki, 2007). Appeal and benefit Appeal and benefit are among the most important factors affecting positively end users perceived value of SMS advertising. Appeal and benefit of SMS ads is broken to three subcategories: first, informative contents (i.e. rational appeals) focusing on factual information such as product features and benefits affect positively end users attitude (Haghirian, Madlberger, & Tanuskova, 2005; Drossos, Giaglis, Lekakos, Kokkinaki, & Stavraki, 2007; Merisavo, et al., 2007; Tsang, Ho, & Liang, 2004; Vatanparast, 2007). Xu and his colleagues, however, found there is only an insignificant relationship between informativeness and attitude toward mobile advertising (Xu, Liao, & Li, 2008). Second, entertainments such as funny contents and interactive games via SMS can increase not only consumers involvement and feeling of pleasure but also perceived advertising value (Tsang, Ho, & Liang, 2004; Haghirian, Madlberger, & Tanuskova, 2005; Merisavo, et al., 2007; Vatanparast, 2007; Xu, Liao, & Li, 2008). Last, monetary incentives (e.g. price discount coupons, samples, free minutes, and loyalty points) are essential in exchange for exposing to SMS ads (Merisavo, et al., 2007; Drossos, Giaglis, Lekakos, Kokkinaki, & Stavraki, 2007; Demarneffe, 2008; Tsang, Ho, & Liang, 2004); in contrast, there is one empirical research shows monetary incentives do not relate significantly to end users attitude toward accepting SMS advertising as a valuable service (Muk & Babin, 2006). Absence of disturbance SMS ads delivered to end users should be neither disturbing nor irritating (Tsang, Ho, & Liang, 2004). That is to say, the number of SMS ads sent to an end user (i.e. frequency of exposure) should be limited3 (Carroll, Barnes, Scornavacca, & Fletcher, 2007; Merisavo, et al., 2007); otherwise, it will influence negatively the advertising value perceived by end users (Haghirian, Madlberger, & Tanuskova, 2005). Furthermore, SMS ads should not be sent at a disturbing time (Carroll, Barnes, Scornavacca, & Fletcher, 2007; Merisavo, et al., 2007; Demarneffe, 2008); for example, SMS ads sent in dinnertime or late-night are really irritating (Kotler & Keller, 2009). Against most of the researches, there is only one empirical research finding no considerable relationship between end users perceived value and disturbance (Xu, Liao, & Li, 2008). Trust On the grounds that mobile phones are very personal devices (MMA, 2009) and consumers worry about spam ads, they prefer trusted agencies (Vatanparast, 2007). End users trust in mobile advertising agencies will have a positive impact on perceived value of SMS advertising and accepting it as a valuable service. End users trust,
3

As a case in point, UK operator, Blyk sends at most 6 ads per day (Demarneffe, 2008).

820

2010 EABR & ETLC Conference Proceedings Dublin, Ireland also, is composed of both high level of privacy4 protection by mobile advertising agencies (Muk & Babin, 2006; Merisavo, et al., 2007; Carroll, Barnes, Scornavacca, & Fletcher, 2007; Vatanparast, 2007) and presence of laws protecting end users rights (Merisavo, et al., 2007; Vatanparast, 2007). Research implications and Conclusion SMS advertising business is growing substantially, so there is a need for better understanding of this business; moreover, it is essential for active companies in this business to identify their critical success factors. In response to these requirements, this paper demonstrates a practical scenario for SMS advertising business model in which main SMS advertising business actors (i.e. advertiser, mobile network operator, mobile advertising agency, and end user), their roles, their potential benefits, and their revenue sources are described. Among main SMS advertising business actors, end users are the most important actors in SMS advertising business owing to the fact that success or failure of this business depends on them. Hence, one of the critical success factors for businesses in this industry (e.g. mobile advertising agency) is to identify and propose the benefits (i.e. elements of value model) which end users are consent to accept SMS advertisements in exchange for. Table 1 (in Appendix A) shows 14 important elements of value model in six general categories, it also demonstrates which groups of researchers have found whether or not each element has positive effect on end users perceived value. If positive effect of an element on end users perceived value has been mentioned in more than three researches, I will define that element as a vital element of value model. Accordingly, vital elements of SMS advertising value model contain 10 elements: Permission: 1. Ease of opting-in SMS ads 2. Ease of opting-out SMS ads Relevance: 3. Being relevant to end users fields of interest 4. Sending at the appropriate times and locations Appeal and benefit: 5. monetary incentives 6. Having informative content 7. Being entertaining Absence of disturbance: 8. limited frequency of exposure 9. Sending at non-disturbing times Trust: 10. Providing privacy protection The difference between customers' evaluation of all the benefits and costs of an offering is defined as customer perceived value thus marketers can increase the value of an offering by increasing benefits and/or reducing costs which are perceived by customers (Kotler & Keller, 2009). In case of SMS advertising, effect of vital elements of SMS advertising value model on end users perceived value can be investigated in future researches by focusing on the following 5 research propositions developed from reviewed literature: P1: The more the ease of opting-in and opting-out SMS ads, the higher the end users perceived value of SMS advertising. P2: The more SMS ads are relevant to end users fields of interest, and times and locations of sending SMS ads are appropriate, the higher end users perceive value of SMS advertising. P3: The more there are monetary incentives, informative and entertaining content for SMS ads, the higher end users perceive value of SMS advertising.

Privacy can be defined as the degree of personal information which is not known by other persons (Vatanparast, 2007).

821

2010 EABR & ETLC Conference Proceedings Dublin, Ireland P4: The less times of sending SMS ads is disturbing, the higher end users perceive value of SMS advertising. Similarly, the more frequency of exposure to SMS ads is limited, the higher end users perceive value of SMS advertising. P5: The more privacy protection is provided, the higher end users perceive value of SMS advertising. References 1. 2. Barwise, P., & Strong, C. (2002). Permission-based mobile advertising. Journal of interactive marketing , 16 (1), 14-24. Bulander, R., Decker, M., Schiefer, G., & Klmel, B. (2005). Comparison of Different Approaches for Mobile Advertising. Proceedings of the Second IEEE International Workshop on Mobile Commerce and Services. Camponovo, G., & Pigneur, Y. (2003). Business Models Analysis applied to Mobile Commerce. 5th International Conference on Enterprise Information Systems. Angers. Carroll, A., Barnes, S. J., Scornavacca, E., & Fletcher, K. (2007). Consumer perceptions and attitudes towards SMS advertising: recent evidence from New Zealand. International Journal of Advertising , 26 (1), 7998. Demarneffe, H. (2008, June). Mobile Advertising White Paper how telcos can dominate the advertising industry. Mechelen: The House of Marketing. Drossos, D., Giaglis, G. M., Lekakos, G., Kokkinaki, F., & Stavraki, M. G. (2007). Determinants of Effective SMS Advertising: An Experimental Study. Journal of Interactive Advertising , 7 (2). eMarketer. (2008). Mobile Advertising: After the Growing Pains. Gopal, R. D., & Tripathi, A. K. (2006). Advertising via wireless networks. International Journal of Mobile Communications , 4 (1), 1-16. GSMA. (2008). European Mobile Industry Observatory. GSM Association. Haghirian, P., Madlberger, M., & Tanuskova, A. (2005). Increasing Advertising Value of Mobile Marketing An Empirical Study of Antecedents. Proceedings of the 38th Hawaii International Conference on System Sciences. ITU. (2009). Measuring the Information Society : The ICT Development Index. Geneva: International Telecommunication Union. Karjaluoto, H., Lehto, H., Leppniemi, M., & Mustonen, T. (2007). Insights into the Implementation of Mobile Marketing Campaigns. International al Journal of Mobile Marketing , 2 (2), 10-20. Kavassalis, P., Spyropoulou, N., Drossos, D., Mitrokostas, E., Gikas, G., & Hatzistamatiou, A. (2003). Mobile Permission Marketing: Framing the Market Inquiry. International Journal of Electronic Commerce , 8 (1), 5579. Kim, M. J., & Jun, J. W. (2008). A case study of mobile advertising in South Korea: Personalisation and digital multimedia broadcasting (DMB). Journal of Targeting, Measurement and Analysis for Marketing , 16 (2), 129138. Komulainen, H., Mainela, T., Sinisalo, J., Thtinen, J., & Ulkuniemi, P. (2006). Business model scenarios in mobile advertising. International Journal of Internet Marketing and Advertising , 3 (3), 254270. Kotler, P., & Keller, K. L. (2009). Marketing Management (13 ed.). New Delhi: Prentice Hall of India. Leppniemi, M., & Karjaluoto, H. (2005). Factors Influencing Consumers Willingness to Accept mobile advertising: a conceptual model. International Journal of Mobile Communications , 3 (3), 197-213. Leppniemi, M., & Karjaluoto, H. (2008). MOBILE MARKETING: FROM MARKETING STRATEGY TO MOBILE MARKETING CAMPAIGN IMPLEMENTATION. International al Journal of Mobile Marketing , 3 (1), 50-61. Leppniemi, M., Karjaluoto, H., & Salo, J. (2004). The success factors of mobile advertising value chain. E-Business Review IV , 93-97. Merisavo, M., Kajalo, S., Karjaluoto, H., Virtanen, V., Salmenkivi, S., Raulas, M., et al. (2007). An Empirical Study of the Drivers of Consumer Acceptance of Mobile Advertising. Journal of Interactive Advertising , 7 (2). Michael, A., & Salter, B. (2006). Mobile Marketing: Achieving Competitive Advantage through Wireless Technology (1st ed.). United Kingdom: Elsevier. 822

3. 4.

5. 6. 7. 8. 9. 10.

11. 12. 13.

14.

15. 16. 17. 18.

19. 20.

21.

2010 EABR & ETLC Conference Proceedings Dublin, Ireland 22. MMA. (2009, JANUARY). Mobile Advertising Overview. Retrieved from Mobile Marketing Association(MMA): http://www.mmaglobal.com/mobileadoverview.pdf 23. Muk, A., & Babin, B. J. (2006). U.S. CONSUMERS ADOPTION NONADOPTION OF MOBILE SMS ADVERTISING. International Journal of Mobile Marketing , 1 (1), 21-29. 24. Nysveen, H., Pedersen, P. E., Thorbjrns, H., & Berthon, P. (2005). Mobilizing the Brand: The Effects of Mobile Services on Brand Relationships and Main Channel Use. Journal of Service Research , 7 (3), 257276. 25. Olla, P., & Atkinson, C. (2004). Developing a wireless reference model for interpreting complexity in wireless projects. Industrial Management & Data Systems , 104 (3), 262-272. 26. Osterwalder, A. (2004). The Business Model Ontology - a proposition in a design science approach. Dissertation . Switzerland: University of Lausanne. 27. Rettie, R., Grandcolas, U., & Deakins, B. (2005). Text message advertising: Response rates and branding effects. Journal of Targeting, Measurement and Analysis for Marketing , 13 (4), 304312. 28. Sadeh, N. (2002). M-commerce : technologies, services, and business models. New York: John Wiley & Sons, Inc. 29. Timmers, P. (1998). Business Models for Electronic Markets. Electronic Markets , 8 (2), 3-8. 30. Tsang, M. M., Ho, S.-C., & Liang, T.-P. (2004). Consumer Attitudes toward Mobile Advertising: An Empirical Study. International Journal of Electronic Commerce , 8 (3), 65-78. 31. Vatanparast, R. (2007). Piercing the Fog of Mobile Advertising. Proceedings of the Sixth International Conference on the Management of Mobile Business. 32. Xu, D. J., Liao, S. S., & Li, Q. (2008). Combining empirical experimentation and modeling techniques:A design research approach for personalized mobile advertising applications. Decision Support Systems , 44, 710724. 33. Yaniv, G. (2008). SOLD ON MOBILE MARKETING: EFFECTIVE WIRELESS CARRIER MOBILE ADVERTISING AND HOW TO MAKE IT EVEN MORE SO. International al Journal of Mobile Marketing , 3 (2), 86-91. 34. Yunos, H. M., & Gao, J. (2004). Wireless Advertising. Department of Computer Engineering,San Jose State University .

823

2010 EABR & ETLC Conference Proceedings Appendix A Table 1: elements of SMS advertising value model al. Merisavo, et al. (2007) Muk & Babin (2006) Empirical (in Carroll, et al. (2007) New Zealand) Drossos, et al. (2007) Vatanparast (2007) Tsang, et al. (2004)

Dublin, Ireland Number of Positive effects 6 5 2 2 2 P P P P P P P P P NE P NE NE P P 5 5 4 5 5 5 4 4 2

Demarneffe (2008)

et

(in Haghirian, (2005)

Researchers Name

(in

(in

(in

(in

conceptual

conceptual

Empirical Taiwan)

Empirical Austria)

Empirical US)

Empirical Finland)

Empirical Greece)

Research type

Elements of Value model Permission Ease of opting-in SMS ads Ease of opting-out SMS ads Control over settings of ads Simplicity Easiness of interacting with SMS ads Non-confusing information Relevance Relevant to end users fields of interest At the appropriate times & locations Appeal and benefit Monetary incentives Informative content Entertainment

P P

NE NE NE

P P P

P P

P P

P P P

P P P NE P P P NE P P P P P P P P P P P P P P P

P P P P

NE P P

Absence of disturbance Limited frequency of exposure P P At non-disturbing times P Trust Privacy protection Presence of laws protecting end users Notes: P=Positive effect on end users perceived value NE=No considerable Effect on end users perceived value

824

Empirical China)

(in

Xu, et al. (2008)