Aalto University School of Economics Thesis: Four out of five consumers have positive attitudes toward mobile marketing

One of the largest consumer studies in Finland concerning mobile marketing has published in Aalto University School of Economics. According to an extensive study, which looked into how consumers perceive mobile marketing, Finnish consumers are beginning to embrace SMS based mobile advertisements. Respondents feel positive toward received mobile advertisement and believe that theyprovide useful information. According to the study, four out of five (84%) Finnish consumers have positive attitudes toward advertisements received on hand‐held devices. Every tenth consumer has a negative attitude. On average, consumers feel more positive toward mobile marketing than traditional advertising. According to TNS Atlas study conducted by TNS gallup every fifth (20 %) consumer has a negative attitude toward advertising in general. Surprisingly women have more positive attitudes toward mobile advertising when compared to men.

The study is one of the first studies in Finland utilizing authentic mobile campaigns to look into how consumers perceive mobile advertisements. The attitudes of Finnish consumers were researched in a largescale study conducted by Aalto University and SN4Mobile in the autumn of 2009. Altogether, 1304 survey responses were collected. The research data was collected by SN4Mobile as a part of mobile campaigns from a wide range of industries. The data consisted of two samples. From these samples, only one received a mobile advertisement. Julia Friman, research manager at SN4Mobile, was in charge of the research project. Her thesis concerning the subject will be published in Aalto University school of economics in May 2010.

One of the main results of the extensive study highlighted the importance of customer and consumer data
in planning mobile marketing campaigns. Attitudes toward mobile advertisements are positive when themarketer has the possibility to target advertising based on existing customer data.

“The results indicate, that marketers should plan marketing campaigns that are more customer need oriented than sales oriented. Attitudes toward informative messages are more positive when compared toproduct‐centric messages. At the same time, the role of existing customer data is emphasized and therefore marketers should focus on collecting and utilizing this information. Customer data helps marketers plan, target and time mobile advertising messages according to customer needs, which results in positive attitudes toward mobile advertising. Identifying consumer needs may be challenging if the marketer bases mobile advertising only on external consumer data provided by third parties”, states Julia Friman, research manager at SN4Mobile.

Strong influence on purchase intentions

The results of the study also emphasize that mobile marketing has a stronger direct influence on purchase intentions than traditional marketing. If mobile marketing is targeted to existing customers, brand attitude has an effect on purchase intentions. The strong influence of mobile marketing on purchase intentions is explained by its ability to reach people quickly at the right time, its high level of personalization and its potential for effortless reaction. As a result, mobile marketing seems to work better than traditional advertising in tactical campaigns, which aim to increase product purchase. When the customer need has been identified and the mobile campaign has been sent at the right time, the purchase decision will be made regardless of the brand.

 “Traditionally there has been a considerable amount of prejudices regarding the use of the mobile phone as a marketing medium. However, the results of this study indicate, that when a consumer has had a positive mobile marketing related experience he or she will feel more positive toward mobile marketing as a phenomenon. In addition, the choice of campaign type or model has an effect on purchase intentions. Event invitations and customer need oriented campaigns have a stronger influence on purchase intentions than traditional product centric advertising”, Friman says.

Branding effects are strengthened when the customer dialogue is continuous

The results of the study highlight the brand effects of mobile marketing, which are considerable when using mobile advertisements to acquire new customers. The impact of mobile marketing on the brand is strong when the recipient of the advertisement does not have a bond with the company through an existing customer relationship. The results indicate that mobile marketing creates positive brand associations when marketing to new potential customers. The brand attitude of respondents who had a favorable attitude toward a mobile advertisement was 20 % higher when compared to those who had a negative attitude.

 “The mobile phone is the only medium that people carry with them everywhere they go. Therefore it can
be used to effectively increase brand touchpoints. Interactivity in advertising has been found to increase the effect that advertising has on a brand. The branding effects of advertising are enhanced considerably when the customer dialogue is continued by informing the customer about the sales process, the use of the product or service and by asking for feedback about the sales, customer service as well as the product”, says Jukka Hyttinen, CEO of SN4Mobile.

Women are more positive toward mobile advertising than men

On a general level, men and women have similar attitudes toward mobile marketing as a phenomenon. However, differences in attitudes were evident when the respondents were asked about specific mobileadvertisements. Women seemed to consider mobile advertisements more informative and credible than men. The respondents were also asked which direct marketing channel they would have preferred for receiving the marketing message. According to the results the mobile phone was preferred over the telephone, letter or e‐mail.

“The content of the message, customer need and timing have a central role in mobile marketing. Through

the mobile phone marketers connect with their customers in an interesting way at the right time. In contrast, in another marketing channel the message may not reach the customer. The drivers of growth are mobile marketing solutions that are based on serving existing and potential customers and strengthening customer relationships. In the near future, the mobile marketing industry will continue to grow especially in customer relationship marketing”, believes Jukka Hyttinen, CEO of SN4Mobile.

Julia Friman’s thesis was mentored by professor, D.Sc.(Econ.), head of department of marketing and management Henrikki Tikkanen and professor, D.Sc.(Econ.), M.Sc. (Tech) Jaakko Aspara.

Additional information:

Jukka Hyttinen, CEO, SN4Mobile, tel. +358400141425
Julia Friman, head of research, SN4Mobile tel. +358400141430

SN4Mobile

SN4Mobile implements mobile and electronic services for the needs of marketing, sales and customer service. The company, which was founded in 2002, serves customers in various industries in Scandinavia, the Baltic States and Russia. The company supports its customers in increasing the profitability of marketing and sales as well as the efficiency and quality of customer service. The company integrates its services into the customer’s product, service and customer relationship management systems. The mobile services provided by SN4Mobile are bough by companies from a range of different industries: car sales, groceries, energy, banking, insurance, organizations, commercial centers, retail chains, real estate, forestry, agriculture, travel, e‐commerce, mail‐order, construction, manufacturing and events. www.sn4mobile.com