The Advertising Spending Trends: Mobile Vs Traditional Media-- An Empirical Study

Abstract

Mobile commerce has become a driving force in retail industry in the past 20 years. Since Apple introduced its firstgeneration of iPhone in 2007, smartphone has penetrated about 70% of US population. Consequently, mobilecommerce has emerged from a supplementary to electronic commerce and has become a powerhouse in retailbusinesses. The American adults spend more time on their smartphones, and do even more commerce on theirsmartphone than on their personal computers. In next few years, US mobile commerce will be a half of the totalecommerce. Marketers have spent more advertising dollars on smartphones, as they can better target smartphoneusers through programmatic advertising, particularly when they find the phone users are interested in particularproducts they browse. This study compares the advertising effectiveness on smartphone users through an empiricalsurvey. The results suggest that smartphone advertising is an effective way to reach and influence the users. Mobileadvertising will continue to work hand-in-hand with traditional media advertising. A strategic shift with more focuson mobile advertising will be more effective.