Advertising value and privacy concerns in mobile advertising: the case of SMS advertising in banking

In an increasingly mobile-centric world, how banks effectively engage consumers through mobile advertising is a pressing issue. This study aims to accomplish two objectives: The first is to assess how consumers respond to mobile advertising from banks, specifically via SMS, based on Ducoffe’s advertising value model, and the second is to examine the moderating effect of mobile users’ information privacy concerns (MUIPC) between consumer attitudes and acceptance of mobile advertising. Using a survey with 413 usable responses from individuals who have received SMS advertisements from banks, which were analyzed using partial least squares structural equation modeling (PLS-SEM), the study found that entertainment and informativeness significantly enhance advertising value, whereas irritation does not. Furthermore, advertising value positively shapes consumer attitudes toward, and acceptance of, SMS advertising from banks. Notably, MUIPC moderates the relationship between attitudes and acceptance behavior. Taken together, this study advances our understanding of consumer behavior in mobile advertising in the banking sector and underscores the need for balancing advertising value with privacy concerns.