The purpose of this study is to assess mobile advertising acceptance among a representative sample of UK mobile users. Moreover, this study aims to examine through an online survey the motivation factors that drive consumers‟ willingness to accept commercial content on their devices as well as their opinions about mobile advertisements.

1. Exploring a new paradigm in consumers’ acceptance
toward mobile advertising in the UK
by
Viviane Costa Campbell – 08982305
Supervised by Adrian Thomas
Submitted to Manchester Metropolitan University Department of Food and Tourism
Management as part of the requirement of the MA Strategic Consumer Marketing
4th September 2009

2. Declaration
No portion of the work referred to in this dissertation has been submitted in support of
an application for another degree or qualification of this University or any other
institution of learning.
i

3. Abstract
Purpose –The purpose of this study is to assess mobile advertising acceptance
among a representative sample of UK mobile users. Moreover, this study aims to
examine through an online survey the motivation factors that drive consumers‟
willingness to accept commercial content on their devices as well as their opinions
about mobile advertisements.
Design/methodology/approach – The data used in this study was collected via an
online survey. A total of 130 consumers responded to this survey. Cross-tabulations
and correlations were used to investigate the co-relations between the variables and
responses to mobile advertising as well as to validate the hypothesis and questions
raised during the research process. An analysis of variance was also conducted in
order to verify, for example, the gender or age difference in relation to the key
questions.
Findings –Even though in the past year the majority of respondents have not used
mobile as a reference for purchasing at least once, the results suggest that young
consumers are more receptive towards mobile advertisements. Furthermore, the
results indicate that incentives are a key motivating factor that drives consumers‟
willingness to accept advertisements and promotions on their mobiles.
Research limitations/implications – This project is limited since the topic could not
be broadly covered due to the time available and the type of research. Therefore,
this gap allows future research to be conducted. For instance, mobile advertising
practitioners‟ viewpoints could be taken into account, in order to gain an in-depth
understanding of mobile advertising and its implications within organisations and
agencies.
Keywords - Mobile advertising, wireless advertising, m-advertising, consumer
acceptance, UK
Paper type – Masters Dissertation
ii

4. Acknowledgements
I would like to thank my husband Steven for all the love and support and for revising
the English in my research. I also would like to thank my family and friends for being
part of my life and for believing that I could finish my work successfully. A great thank
to Heikki Karjaluoto who shared some of his rich knowledge of Mobile Marketing
through our email exchanges. And last but not least, my supervisor Adrian Thomas
for all his patience and guidance.
iii

5. Table of Contents
Chapter 1: Introduction ........................................................................................................................ 8
1.1. Research Motivation ................................................................................................................. 8
1.2. Aim, objectives and research questions.............................................................................. 10
1.3. Outline of the study................................................................................................................. 12
Chapter 2: Literature Review ............................................................................................................ 13
2.1. The Digital Context ................................................................................................................. 13
2.2. Advertising overview .............................................................................................................. 14
2.2.1. Advertising expenditure in the UK ................................................................................ 14
2.2.2. Mobile advertising figures in the UK ............................................................................. 15
2.2.3. Mobile media versus Internet and traditional media .................................................. 16
2.3. Mobile environment in the UK............................................................................................... 18
2.3.1. Economic factors ............................................................................................................. 18
2.3.2. Mobile users and usage ................................................................................................. 21
2.3.3. Mobile web ....................................................................................................................... 23
2.4. Mobile Advertising .................................................................................................................. 24
2.4.1. Mobile advertising definitions ........................................................................................ 24
2.4.2. Mobile advertising formats ............................................................................................. 25
2.4.3. Push and Pull strategies ................................................................................................. 28
2.4.4. Mobile Advertising law and standards.......................................................................... 28
2.5. Consumer acceptance issues............................................................................................... 29
2.5.1. Consumer acceptance towards advertising in general .............................................. 29
2.5.2. Consumer acceptance towards technology ................................................................ 30
2.5.3. Consumer acceptance towards mobile advertising ................................................... 31
2.6. Research questions and hypothesis .................................................................................... 33
Chapter 3: Methodology .................................................................................................................... 35
3.1. Research Philosophy, Approach and Strategy .................................................................. 35
3.2. Secondary Research .............................................................................................................. 36
3.3. Primary Research ................................................................................................................... 37
3.4. Internet-based survey ............................................................................................................ 38
3.5. Sampling plan .......................................................................................................................... 39
3.6. Questionnaire design ............................................................................................................. 40
3.7. Methods of analysis ................................................................................................................ 41
iv

6. 3.8. Ethics ........................................................................................................................................ 42
3.9. Limitations of the methodology ............................................................................................. 43
Chapter 4: Results/Findings.............................................................................................................. 44
4.1. Mobile usage behaviour ......................................................................................................... 45
4.2. Awareness of mobile advertising.......................................................................................... 47
Chapter 5: Conclusions ..................................................................................................................... 58
5.1. Reflections and recommendations ....................................................................................... 60
5.2. Limitations and further research ........................................................................................... 62
Reference ............................................................................................................................................ 64
Bibliography ......................................................................................................................................... 73
Cyberography...................................................................................................................................... 76
Appendices .......................................................................................................................................... 77
Appendix A: Gantt chart (Dissertation Schedule) ...................................................................... 78
Appendix B: Dissertation Supervision Meeting Log .................................................................. 79
Appendix C: Survey Monkey receipt ........................................................................................... 82
Appendix D: Facebook survey approach ................................................................................... 83
Appendix E: Services used in the past month (Female vs. Male) .......................................... 84
Appendix F: Mobile Advertising Acceptance Survey ................................................................ 85
v

7. List of figures, tables et al.
Figure 1: Mobile “convergence box” of services and content ........................................................ 9
Figure 2: Comparisons of advertising media.................................................................................. 18
Figure 3: Total UK fixed lines and mobile subscriptions............................................................... 20
Figure 4: Mobile features and services used among British consumers.................................... 22
Figure 5: The most accessed media channels all day long ......................................................... 23
Figure 6: What type of mobile phone do you have? ..................................................................... 45
Figure 7: How many times in the past month have you used each of the following
features/services on your mobile phone? ....................................................................................... 46
Figure 8: How many times in the past year did you receive each of the following types of
advertisements or promotions on your mobile? ............................................................................. 47
Figure 9: What type of mobile do you have? (Female vs. Male) ................................................. 50
Figure 10: What type of free product or service would you choose in order to receive mobile
advertising? (Age difference) ............................................................................................................ 51
Figure 11: How many times did you use a mobile advertisement as a reference for
purchasing in the past year? (Age difference) ............................................................................... 52
Figure 12: How many times did you participate in a promotion through your mobile in the past
year? (Age difference) ....................................................................................................................... 53
Figure 13: What type of free product or service would you choose in order to receive mobile
advertising? ......................................................................................................................................... 55
Figure 14: What type of gift/discount voucher would you choose in order to receive mobile
advertising? ......................................................................................................................................... 56
Figure 15: How many times did you use mobile as a reference for purchasing in the past
year. ...................................................................................................................................................... 57
Figure 16: How many times did you participate in a promotion through your mobile in the past
year? ..................................................................................................................................................... 58
Table 1: Advertising Expenditure in the UK* (Excluding Production Costs).............................. 15
Table 2: Mobile phone subscribers and penetration (2003 – 2008) ........................................... 19
Table 3: Forecast Sales of Mobile Phones: Volume 2007-2012 ................................................. 20
Table 4: Definitions of mobile advertising ....................................................................................... 25
Table 5: Forms of mobile advertisements ...................................................................................... 26
Table 6: Mobile ad formats ................................................................................................................ 27
Table 7: Demographic profiles classified by gender ..................................................................... 44
Table 8: Which type of brand has sent you the following advertisements or promotions on
your mobile? ........................................................................................................................................ 48
Table 9: To what extent do you agree/disagree with each of the following characteristics of
mobile advertising? ............................................................................................................................ 49
Table 10: To what extent do you agree/disagree with each of the following conditions related
to accepting advertising or promotions on your mobile? .............................................................. 54
vi

8. List of abbreviations
ASA – Advertising Standards Authority
IAB – Internet Advertising Bureau
MMA – Mobile Marketing Association
MMS- Multimedia Messaging Service
SMS – Short Messaging Service
VMS – Video Messaging Service
3G – Third Generation
vii

9. Chapter 1: Introduction
Mobile advertising is still a contemporary concept in its embryonic stage, with its first
published academic article in 2001. Nevertheless, the topic is relevant to the field of
study, as it is generating fast-growing interest not only among scholars but also
marketers and experts (Leppäniemi et. al, 2006; Leppäniemi and Karjaluoto, 2008).
Indeed, the purpose of this research is to analyse and discuss UK mobile users‟
attitude toward mobile advertisements and the factors that may influence their
willingness to receive commercial messages or content on their mobile handsets.
Exploring a new paradigm in consumers’ acceptance toward mobile
advertising in the UK uses an online survey to validate mobile advertising
acceptance factors and to discover what motivates a representative sample of UK
mobile users to acknowledge advertisements on their devices.
1.1. Research Motivation
The chosen topic raised the interest of the researcher for both personal and
academic reasons. Firstly due to the researcher‟s academic background in
Advertising, the proposed issue is better understood and developed. Secondly, as it
is an up-to-date subject, it is more enjoyable to investigate as there are a number of
recent studies available. Finally, this research is not trivial and may contribute greatly
to the field through original findings and the contemporary theme.
Although there is substantial information available on mobile usage and environment,
there is still a lack of formal knowledge regarding consumers‟ acceptance toward
mobile advertising in the UK (Hanley and Becker, 2008; Hanley et al., 2006;
Leppäniemi and Karjaluoto, 2008; Merisavo et al., 2007). Additionally, a great deal of
authors have highlighted the importance of mobiles in everyday life and mobile
marketing as a major business activity due to the possibilities these devices have
available (figure 1). Furthermore, mobile is probably the most important medium an
individual owns, as users carry it at all times and do not share the device with other
users, enabling the use of the channel for advertising and promotional purposes in a
more interactive way and with the possibility of direct consumer response. Therefore,
8

10. it is imperative to understand how this medium is perceived among consumers
(Balasubramanian et al., 2002; Chowdhury et al., 2006; Haghirian et al., 2005;
Hanley and Becker, 2008; Internet Advertising Bureau, 2009; Leek and
Christodoulides, 2009; Park et al., 2008; Silverman, 2005). Conversely, still little is
known about how mobile technologies and their application can be successfully
integrated into marketing activities (Haghirian et al., 2005, p.1).
Figure 1: Mobile “convergence box” of services and content
Alarm
Diary
GPS
Web Book
Alarm Alarm
MP3 Game
Alarm Alarm
Shopping Banking
Alarm Alarm
Video Photo
Alarm
Alarm
Calculator
Alarm
Adapted from: Cambridge Marketing College (2007); IAB UK and Waterhouse Coopers
(2008)
With the contemporary busy lifestyle of UK consumers, it is difficult for marketers to
reach them precisely. However, the high number of subscriptions to mobile phones in
the UK and the 120% of market penetration demonstrates that it is a potential
channel to communicate with customers and advertise products and services
(dotMobi Advisory Group, 2007; Mintel, 2008). As it is an evolving medium with
limited studies on cost-effectiveness, wireless advertising still has a low acceptance
9

11. rate among practitioners in the UK, (eMarketer, 2009; Mobile Marketing Association,
2009). Due to this fact, the Internet Advertising Bureau (IAB) and other associations
are directing their efforts to convince marketers and advertisers of the benefits of
mobile advertising, in order to boost this activity in the country (eMarketer, 2009).
In addition, a poll of over 1,600 UK mobile phone users in 2008 was conducted by
the marketing firm Velti, resulting in 79% agreeing that mobile marketing and
advertising was expected and unavoidable. Even so, the marketing messages still
need to be relevant, fun and rewarding, to make sure consumers engage in the
advertisements. Many users are easily distracted and use their phones when they
have a few spare minutes when commuting, at work or at home. This has to be taken
into account when planning the marketing strategy (Internet Advertising Bureau,
2009).
This does not mean that consumers are willing to receive marketing-related
messages in their mobile devices. According to Kondo et al. (2008), one study has
revealed that 50% of consumers would not accept marketing communications on
their devices, even if they received compensation for it. However, there are other
mobile users who present a more positive attitude toward advertisements on their
devices. Due to this fact, it is imperative to understand the behavioural reasons that
drive consumers to accept mobile advertisements and promotions.
1.2. Aim, objectives and research questions
Based on the discussion above, the aim of this research is to critically assess
consumers‟ acceptance of mobile advertising, by exploring a new paradigm in
marketing communications. In order to achieve this aim and to guide the entire study,
the subsequent key objectives are set:
10

12. 1. To assess advertising and mobile advertising figures in terms of media usage
in the UK;
2. To compare mobile as a communication channel with online and traditional
channels;
3. To identify the current situation and trends of the mobile market and mobile
advertising;
4. To determine the factors associated with consumers‟ acceptance of mobile
advertising and the theories associated;
5. To evaluate how a representative sample of UK mobile users perceive mobile
advertising;
6. To make recommendations for the future of mobile advertising campaigns in
targeting their segments efficiently.
Additionally, with the intention of reaching the aim and objectives proposed for this
study, the following research questions are stated:
RQ1. To what extent do the demographic variables of gender, age and level of
education affect the way consumers perceive and accept mobile advertising?
RQ2. What drives consumers to consider accepting advertising on their mobile
devices?
RQ3. If incentives can increase consumer willingness to accept mobile
advertisements, which type of compensation would work better?
RQ4. Are consumers more willing to buy a specific brand or product after receiving a
mobile advertisement?
Since mobile advertising is very broad and extensive, this study will only focus on
examining consumers‟ opinions and behavioural intentions to accept advertisements
and promotions on their mobiles. To further limit the research, a sample among UK
mobile users was chosen for consideration.
11

13. 1.3. Outline of the study
This study contains five chapters, which are structured as following. The first chapter
contains a brief introduction where the reasons behind the topic choice are stated as
well as the aims and objectives of the research. Then, the advertising industry and
mobile advertising figures in the UK are discussed in chapter two, as well as a brief
comparison between mobile and other communication channels. At the same
chapter, an overview of the British mobile environment is made, followed by an
analysis of mobile advertising definitions, formats, strategies and standards. After
this, consumer acceptance theories are looked at with a special emphasis on mobile
advertising acceptance. In chapter three the research methods and design are
explained in detail. This is followed by the analysis of the online survey of consumer
acceptance toward mobile advertising is summarised in chapter four. Finally, in the
conclusion, an overview of the entire study is made, including its limitations, and the
researcher reflections and gives recommendations.
Overall, an academic research assessing customers‟ acceptance of mobile
advertising in the UK is valuable and may contribute towards the foundation of a
theoretical model of mobile advertising and consumer acceptance of the medium.
12

14. Chapter 2: Literature Review
2.1. The Digital Context
The contemporary world is driven by technology, which is one of the main forces that
influence the business environment as well as people‟s lives. Furthermore, with the
dynamic and rapidly changing technological environment, organisations need to be
aware of these changes and adapt if they intend to survive in this complex and
turbulent business scenario (Kotler and Armstrong, 2008).
As noted by Vervest and Dunn (2000, p.1), today's new digital business technologies
enable organisations to achieve near complete communications and instant access
to information. In this world dominated by technology, where commercial content
needs to compete constantly with amateur's to get people's attention; it is becoming
harder for organisations to communicate efficiently (Anderson, 2006).
The way of communicating brands and organisations is facing a transitional period,
where the old tools are still available and new ones are being introduced. As Kotler
and Keller (2009) state, technological changes have significantly altered the
marketing world. The rapid spread of broadband Internet, ad-skipping digital video
recorders, versatile mobile phones and mp3 players have made marketers re-
evaluate traditional practices. It has also affected the way consumers perceive
communications.
Hence, in this new era of networked consumers and digital everything (Anderson,
2006, p.3), effective communication needs to have online and offline marketing
strategies combined, integrated and supporting each other constantly (Chaffrey et al.,
2006; Howarth, 2007). Similarly, Miller (2005) argues that digital communications
represent an emergent revolution that is going to generate a greater transformation in
everyday life. Digital media provides a combination and convergence of text, sound,
image and data in such an integrated format never imagined before.
13

15. Digital media has not totally matured as a marketing channel and has not been fully
exploited yet. Nevertheless, practitioners are becoming more confident and are
integrating digital channels as part of their marketing and communications plan
(Hoare, 2008). Moreover, as digital prices are dropping, it is now cheaper to exploit
what digital has to offer (Simpson, 2008). Hence, organisations wanting to cease the
opportunity to create a sustainable competitive advantage, will need to learn how to
use digital business technologies effectively (Vervest and Dunn, 2000).
2.2. Advertising overview
As defined by Kotler and Keller (2009, pp. 538), advertising is any paid form of
nonpersonal presentation and promotion of ideas, goods, or services by an identified
sponsor. Moreover, advertising has changed significantly because of technological
advances in the industry and even in today‟s complex digital world, ads can still be
an effective tool to build brands, educate people and spread messages (Vatanparast
and Asil, 2007).
As noted, the growth of digital media has brought new challenges to traditional
agencies. Combined with this fact, consumers are more media savvy and have more
control than ever over communication channels. Contemporary advertising agencies
are becoming aware of this and therefore, beginning to concentrate their efforts
around digital media, especially the Internet (Howarth, 2007; Sorrel and Salama,
1996). Additionally, there has been a move away from traditional marketing media,
such as TV and radio, to more direct methods, such as direct mail and the Internet.
The increase in mobile advertising complements this, allowing marketers even higher
levels of effectiveness and impact (Burgan, 2009).
2.2.1. Advertising expenditure in the UK
According to World Advertising Research Center (2008), the total media expenditure
in the UK was estimated slightly over £18 billion in 2007, which correspond to a 4%
growth in relation to 2006 (table 1). Internet represents the strongest growing
medium, which confirms the digital trend. Even though it has fallen almost 2% since
14

16. 2002, television is still the market share leader in ad spend with 22.1% of the total
market.
Table 1: Advertising Expenditure in the UK* (Excluding Production Costs)
Current prices, % change % share
£m yr-on-yr of total
Television 3,996 2.3 22.1
Internet 2,813 39.5 15.6
Regional newspapers 2,747 -1.3 15.2
Direct mail 2,171 -6.5 12.0
National newspapers 1,928 0.8 10.7
Outdoor & transport 976 4.6 5.4
Business & professional magazines 968 -4.7 5.4
Directories 960 -3.4 5.3
Consumer Magazines 791 -2.7 4.4
Radio 497 3.4 2.8
Cinema 207 10.1 1.1
TOTAL 18,053 4.0 100.0
Source: World Advertising Research Center (2008).
*Mobile advertising expenditure is not considered in this study.
2.2.2. Mobile advertising figures in the UK
Even though mobile advertising has not reached its maturity across the globe and
represent just a small amount of total advertising and also mobile revenue, its
substantial growth has been forecasted for the upcoming years while the traditional
media declines (Burgan, 2009; Interactive Advertising Bureau, 2008a; Kimberley,
15

17. 2009; Vatanparast and Asil, 2007). By 2011, the mobile advertising market is
expected to grow to £7 billion worldwide and to £187 million in the UK (Berg Insight,
2006; Interactive Advertising Bureau, 2008b; Leek and Christodoulides, 2009;
Leppaniemi and Karjaluoto, 2008; Vatanparast and Asil, 2007). According to Leek
and Christodoulides (2009, p.44), If those forecasts prove correct, mobile advertising
will become the fastest growing promotional channel.
In 2008, even though it was a difficult year for the advertising industry in the UK, the
country saw a total mobile advertising revenue of £28.6 million, represented by a
mobile ad spend growth of 99.2% between 2007 and 2008 (IAB UK and Price
Waterhouse Coopers, 2008; Kimberley, 2009). At the same year, mobile Internet
display ads, which can be represented by banners, text links and games, reached
£14.2 million, accounting for almost half of all mobile ads spend. However, the
majority of Mobile Advertising spending is still represented by text messaging
(dotMobi Advisory Group, 2007; Kimberley, 2009).
2.2.3. Mobile media versus Internet and traditional media
Kondo et al. (2008) and Haghirian et al. (2005) state that some experts believe that
mobile devices will soon be the most significant medium for advertisers. Mobile is a
promising media channel as it can deliver effectively targeted, one-to-one and
powerful message communications instantly and with low costs (Henriksson, 2008;
Vatanparast and Asil, 2007). Even well-known brands such as Coca-cola, Pepsi,
Sony, MTV, Disney and Nike are using mobile as a communication channel in order
to reach their consumers (eMarketer, 2009; Jin and Villegas, 2008; Leppaniemi and
Karjaluoto, 2008; Vatanparast and Asil, 2007).
Differently from Internet and traditional channels where consumers generally remain
anonymous, mobile is exceptionally personal and usually has only one user.
Therefore, it is a very accurate communication channel to reach consumers broadly
and also to establish close contact with them (Bamforth et al 2006; Hanley et al.
2006; Mobile Marketing Association, 2007, 2009; Park et al., 2008). One of the major
16

18. possibilities for marketers using mobile media is to deliver a customised message to
consumers, which can be based on information provided by them during previous
purchases or their feedback when they opt in to receive mobile ads. This advantage
enables marketers to enhance the relationship with potential or existing customers,
by engaging them in campaigns that are actually of their interest. For instance, when
sending a discount voucher from their favourite restaurant (Chowdhury et al., 2006;
Haghirian et al., 2005; Jin and Villegas, 2008; Kotler and Keller, 2009; Mobile
Marketing Association, 2009; Tähtinen and Salo, 2004).
This is also noted by Hanley and Becker (2008), Vatanparast and Asil, (2007), and
Jin and Villegas, (2008) who observed that mobile devices have a great advantage
over traditional channels, as they have the possibility to target the individual in a
personalised, exclusive and interactive way, which permits an instant dialogue
between advertisers and their consumers. Additionally, the mobile channel provides
its users with a direct call to action which is very difficult through other channels
(Kondo et al., 2008). This means that advertisers are able to contact potential
customers anytime and anywhere (Jin and Villegas, 2008, p.6).
Although mobile media has its advantages over Internet and traditional channels, it
also has some usability and technological limitations. Firstly, if compared with
computers, the size of the screen and the numeric keypad layout of mobiles
represent a great issue for marketer, by limiting the design of advertisements and
also the interactivity level with consumers. Moreover, mobile phones have different
features, such as display formats and display colours, as well as operating differently
from one another. This fact also limits advertisements, since users who are familiar
with a specific handset may not be able to download some content when using a
different model, for example. Additionally, mobile devices also have limited
computational power, memory and battery life. Text messaging is another constraint
for marketers, as different from emails, the message must be concise, clear to the
recipient and not have more than 160 characters (Ahohen, 2008; Benbunan-Fish and
Benbunan, 2007; Haghirian et al., 2005; Mobile Marketing Association, 2009).
17

19. The differences between mobile and online or traditional media exist (figure 2.1), but
they are minor. However, it does not mean that the same standard ad format that is
used on TV or in a magazine, for example, can be directly transferred to mobile
devices. Not only the message but also the design and content must be adapted
accordingly with the necessity of the medium in order to engage the audience
(Internet Advertising Bureau, 2009; Park et al., 2008).
Figure 2: Comparisons of advertising media
Source: Park et al., 2008
2.3. Mobile environment in the UK
Current mobile capabilities and services go beyond imagination. With third
generation (3G) technologies, mobile consumers use their devices for much more
than just making and receiving calls. They have a great deal of services available
which carry not only content but also advertisements available from wireless web,
short message service (SMS) and multimedia message service (MMS) (Benbunan-
Fish and Benbunan, 2007; Internet Advertising Bureau, 2009; Mobile Marketing
Association, 2009; Nasco and Bruner II, 2008). Mobile and handheld devices are
seen by their users as the last personal space they can still control and the most
important channel to stay in contact with other people. Therefore, marketers must
understand the consumer‟s need for privacy and balance it with their own commercial
needs (Hanley et al., 2006; Jin and Villegas, 2008).
18

20. 2.3.1. Economic factors
Worldwide, there are more than 1.7 billion mobile subscribers, which means that
about 25% of the population are connected through mobile devices (Jin and Villegas,
2008). In the UK, there were an estimated 74 million mobile phone subscriptions in
2007, and the forecast is that it will continue to grow in the following years as people
start to use a secondary mobile device, reaching 78 million connections in 2010
(Cambridge Marketing College, 2007; Ofcom, 2007; Mintel, 2008; Mobile Operators
Association, 2009). This number represents more than the total UK population that
was estimated to be 61,113,205 in 2007 (CIA, 2007; Interactive Advertising Bureau,
2008b).
This fact makes the UK one of the most attractive and competitive European markets
regarding mobile phone subscription and penetration (table 2). This can be explained
due to the fact that mobile devices are an important part of UK consumers‟ daily
lives, as they are considered the society “on the move” (Mintel, 2008). Additionally,
the increasing usage of Smartphones in the UK which account for 9% of the total
market with a growth of 9.9% between November 2006 and December 2007, have
helped the UK mobile market boost (Burk, 2008).
Table 2: Mobile phone subscribers and penetration (2003 – 2008)
Subscriptions Year on year % of total
Total population
(Millions) growth (%) population
2003 52.8 - 59.6 89
2004 59.7 13.1 59.8 100
2005 65.5 9.7 60.2 109
2006 69.8 6.6 60.6 115
2007 73.5 5.3 61.0 121
2008 76 3.4 61.4 124
Source: Mintel (2008)
19

21. Mobile phones volume sales had 3.3% growth in 2007 compared with the previous
year. Although this growth is still low, it is expected that with the entrance of new
sophisticated and highly technological phones in the market, such as the iPhone, the
sales will have boosted by 2012 (table 3). Another important point is that the mobile
phone unit price will fall significantly, which will also contribute to the volume sales
growth (Euromonitor International, 2008; Mobile Operators Association, 2009).
Table 3: Forecast Sales of Mobile Phones: Volume 2007-2012
'000 units
2007 2008 2009 2010 2011 2012
Mobile phones 18,247.2 19,269.0 20,290.3 21,284.5 22,284.9 23,265.4
Source: Euromonitor International (2008)
According to the O2 Report (2004), the mobile telephone industry contributed
significantly to the UK economy in 2003, with £22 billion to the GDP, which account
for 2.2% of the country‟s total economic output. In the telecom sector, the number of
mobile subscriptions has overtaken the number of fixed lines by more than two-to-
one in 2006, which can be seen in figure 3 (Interactive Advertising Bureau, 2008b;
Ofcom, 2007). Indeed, the number of customers who claim that their main method of
making calls is through mobile devices has increased from 21% in 2004 to 30% in
2005, and these numbers do not seem to fall (Cambridge Marketing College, 2007).
Figure 3: Total UK fixed lines and mobile subscriptions
Source: Ofcom (2007)
20

22. 2.3.2. Mobile users and usage
The profile of mobile users is composed of 42% female and 58% male. The majority
of them are young people aged between 18-34 followed by those aged 35-44 years,
which accounted for 47% and 21% respectively of total mobile consumers (Internet
Advertising Bureau, 2009). If compared with other media, mobile devices also have
the capability to reach a wider range of socio demographic groups, including low
income and elder segments (Cambridge Marketing College, 2007).
Hence, mobile device consumption strongly varies according to niche markets.
Youths, for example, are heavy users of SMS and are also capable of strongly
influencing patterns of consumption amongst peers. The relationship between
customers and mobile technology and how it influences individuals‟ lifestyle is also
imperative. Mobile services and the understanding of their usage must be considered
as it can indicate customer responsiveness and acceptance to mobile
communications (Carroll et al., 2007; Mort and Drennan, 2007).
Independently from the location, mobile devices enable marketers and brands to
actively and heavily interact with their customers through photographs, videos and
high-quality audio (Haghirian et al., 2005). Although UK mobile users are still
predominantly using their devices to make voice calls and to send text messages,
they are increasingly using all the services and features available to them (Internet
Advertising Bureau, 2009; Nasco and Bruner II, 2008). According to the Mobile Life
European Report (2007), 51% of mobile consumers have used Bluetooth, 46% have
accessed the mobile web and 37% have recorded a video (figure 4). Considering the
usage pattern, there is a slight variation between gender and noticeable difference
among generations.
21

23. Figure 4: Mobile features and services used among British consumers
Source: Mobile Life European Report (2007)
Besides that, no other media spends the same amount of time or is so close to its
owner as mobile phone devices are. According to the Orange UK (2007), 81 % of
mobile consumers use their devices at least once a week and 47% use them on a
daily basis, even at home when they have other media available. Moreover, as
revealed by Mobile European Life Report (2007), 1 in 6 British people consider their
mobile devices their most important possession. In addition, Orange UK (2007)
reports that compared with TV, computer, radio and print, mobile is the most
accessed media channel between noon and 6pm (figure 5). In the same report, it
was found that 87% of mobile consumers use it at home, 73% when out, 48% at
work, and 47% on transport. Moreover, more than 60% of mobile users prefer to stay
24 hours a day connected, without turning off their devices. Hence, it indicates that
advertisers have the potential to reach their customers anytime and anywhere
(Internet Advertising Bureau, 2009; Silverman, 2005).
22

24. Figure 5: The most accessed media channels all day long
Source: Orange UK (2007)
2.3.3. Mobile web
Mobile Internet usage and penetration is sharply increasing in the UK, according to
some studies reported by eMarketer (2009). In terms of mobile Internet usage, it has
grown from 8.8 million users in December 2007 to 11 million users in December
2008. This growth of 28% is driven by several reasons, which are new handsets with
Internet-capability being introduced in the market, improved user experience, high
volume, better quality content, fast data speeds and enhanced search functionality
(Internet Advertising Bureau, 2009).
Younger people between 15-34 years are regarded to be the leader segment in
mobile web usage, representing 56% of the total users, with the male population
being the majority of them. Although mobile web activities are growing, such as
access to news, sports, weather, entertainment and online shopping, it is still low if
compared with other mobile services used by UK consumers, where text messaging
is the most popular (eMarketer, 2009; Mobile Marketing Association, 2009).
23

25. 2.4. Mobile Advertising
Being a fast-growing sector, mobile advertising provides brands, agencies and
marketers with many opportunities to communicate with potential customers directly
on their mobile devices (Mobile Marketing Association, 2009). However, Leppäniemi
and Karjaluoto (2008) present that there is a lack of connection between mobile
advertising and organisation‟s communications marketing strategies. Kotler and
Keller (2009) also highlight this gap and argue that organisations need to adopt a
holistic marketing orientation in order to gain competitiveness, without forgetting to
focus on the customer and the emergent tools available to reach them, such as the
“third screen”, which is represented by the mobile, after the TV and the computer.
Carroll at al. (2007) adds that mobile advertising is a great opportunity as it is
expected to grow on a global scale in the following years.
2.4.1. Mobile advertising definitions
Although it is an emerging concept, there are a wide range of definitions for mobile
advertising, also known as wireless advertising or m-advertising (Haghirian et al.,
2005). It could be defined as any paid message communicated by mobile media with
the intent to influence the attitudes, intentions and behaviour of those addressed by
the commercial messages (Leppäniemi et al., 2004, pp. 97). Another alternative
could be identified as ads sent to and presented on mobile devices, i.e. cellular,
phones, PDA‟s, and other handheld devices (Tähtien and Salo, 2004, pp.2). It could
also be simplified by saying that it is a type of advertising which uses mobile phones
or handheld devices as a medium to communicate with consumers or prospects.
In their review, Leppäniemi et al. (2006) made a detailed analysis of all
conceptualisations available on published articles and they have identified
differences and similarities of these definitions, which can be seen on table 4.
24

26. Table 4: Definitions of mobile advertising
Author Definitions
Komulainen et al. (cited by
... advertising using mobile devices as a communication vehicle.
Leppäniemi et al.,.2006, p. 37)
The usage of interactive wireless media (such as cellular phone
and pages, cordless telephones, personal digital assistants, two-
Haghirian and Madlberger (cited
way radios, baby cribs monitors, wireless networking systems,
by Leppäniemi et al.,.2006, p.
GPS-based locators and maps) to transmit advertising message to
37)
consumers in form of time and location sensitive, personalised
information with the overall goal to promote goods and services.
De Reyck and Degraeve (cited
by Leppäniemi et al.,.2006, p. ...advertising via mobile phones...
37)
Petty (cited by Leppäniemi et ...form of advertising...that includes short text messages sent to
al.,.2006, p. 37) telephones, personal digital assistants, and other wireless devices.
Yunos et al. (cited by ...advertising and marketing activities that deliver ads to mobile
Leppäniemi et al.,.2006, p. 37) devices over a wireless network...
Tsang et al. (cited by ... sending advertising messages to mobile devices such as mobile
Leppäniemi et al.,.2006, p. 37) phones or PDAs through the wireless network.
Brassington and Pettit (cited by ... the use of text messaging via a mobile telephone as a means of
Leppäniemi et al.,.2006, p. 37) marketing communication.
Adapted from: Leppäniemi et al. (2006, p. 37)
2.4.2. Mobile advertising formats
Mobile ad can be used as a stand-alone medium or in cross-media campaign plans
to support other media ad campaigns like on the TV or Internet (Mobile Marketing
Association, 2009). Moreover, marketers are able to build new and long-term
relationships through sending only relevant and personalised content to their
consumers (Haghirian et al., 2005).
25

27. Table 5 lists some forms of advertisement that marketers are using to engage and
interact with potential customers through mobile devices (Mobile Marketing
Association, 2009; Park et al., 2008). In addition, when designing a mobile
advertising campaign, there are multiple channels available to reach the consumer.
Those include mobile websites, mobile applications, mobile messaging and mobile
video (Mobile Marketing Association, 2009).
Table 5: Forms of mobile advertisements
Click to call – users place an outgoing call to the content provider or advertiser
Click to locate – users find, for example, the closest car dealer or movie theatre, enabled by location-based
service
Click to order brochure – users receive marketing materials by supplying their postal address
Click to enter competition – users enter text or sweepstake to win prizes
Click to receive email – users receive an email and a link to online site by supplying their email address
Click to receive mobile coupons - users receive an electronic coupon on their mobile phone that can be
redeemed immediately at a participating merchant
Click to buy – users make a purchase paid for with a credit card, added to their monthly mobile bill or using some
other form of mobile payment
Click to download – users download content, including logos, wallpapers or ring tones, onto their mobile phones
Click to enter branded mobile website – users click a banner to get connected to standing or campaign-specific
mobile website
Click to forward content – users forward relevant content to friends, creating a viral campaign effect
Click to video – users click a banner to view an advertiser‟s commercial for a product or service
Click to vote – users reply message ballot or poll from their mobile phone and provide marketers and brand with
valuable research insights
Source: Mobile Marketing Association (2007, p.1)
Regarding mobile Internet ad formats, marketers have many opportunities available
at the moment, which are very similar to online ads, such as text links, banners, ad
funded content, pre/post roll video, and search engines (dotMobi Advisory Group,
2007; Internet Advertising Bureau, 2009). Furthermore, concerning to non Internet
mobile ad formats, there are SMS, MMS and VMS (Video Messaging Service),
26

28. Bluetooth, games and several emerging formats being used to deliver commercial
content to consumers (Internet Advertising Bureau, 2009). All these formats cited
beforehand are explained in detail in table 6.
Table 6: Mobile ad formats
Mobile Internet advertising formats
Text links - offer a low cost and low risk entry method to mobile advertising especially for DR clients
with them being bought on a CPC basis.
Banners and super banners - again like on the PC, and we are starting to see more opportunities for
animations and creativity.
Ad funded content – as technology and demand has opened up the content on the mobile, so has the
opportunity to advertise, and with there still being reluctance and misunderstanding in terms of data
charges, sponsorship, which enables free or reduced cost content for the consumer, has increased.
Pre/post roll video – often linked to the above, usually 15 second video clips which can be supported
by clickable banners making them great for both branding and DR.
Search – basics are the same as online but results are more location based. Major benefits with
search on the mobile over search on the PC is the less cluttered environment and lower CPC due to
less advertisers bidding on keywords.
Non Internet mobile advertising formats
SMS (text), MMS (picture) or VMS (video) – can either be sent out to own customer database or to a
targeted opted in bought list. This can be a great form of CRM or due to the viral benefits of mobile a
great way of distributing money off coupons or incentives.
Bluetooth – an alternative to WAP for broadcasting information. Generally installed at set locations
such as cinemas or train stations and can distribute opted in content within a limited area.
Mobile games – often linked in with ad funding or sponsorship, can be as simple as a full page
interstitial before the games, or a fully integrated branded experience.
Emerging formats - Mobile TV, screen savers or the new mobile phone ad funded directory enquiries
service, making use of the original purpose of the mobile „voice‟.
Source: Internet Advertising Bureau (2009)
Due to the fact that feature mobiles with limited capabilities are still dominating the
market worldwide and in the UK, SMS has been the leading method of
communication through mobile devices. Nonetheless, MMS and VMS are expected
to popularise more in the near future, creating a positive impact on consumers‟ brand
relationships (Merisavo et al., 2007; Park et al., 2008).
27

29. 2.4.3. Push and Pull strategies
Similarly to online advertising, in order to reach customers, both “push” and “pull”
marketing strategies can be used in mobile advertising. Push mobile advertising
refers to marketers sending advertisements directly to consumer‟s mobile devices,
which may be solicited, when consumers agree to receive content on their mobiles,
such as sponsored sports alerts. Indeed, this strategy requires a previous approval
from the consumer who may demonstrate some resistance to this approach, as they
many times receive unsolicited promotions on their mobile via SMS (Hanley et al.,
2006; Leppaniemi and Karjaluoto, 2004; Nasco and Bruner II, 2008; Park et al.,
2008). Pull mobile advertising refers to a consumer responding to and requesting or
“pulling” information from the marketer (Hanley et al., 2006, p. 51), therefore, when
they choose to access the commercial message or content, including any related
advertising (Leppaniemi and Karjaluoto, 2004; Nasco and Bruner II, 2008; Park et al.,
2008). Overall, Nasco and Bruner II (2008) indicate that in the future whether through
the pull or push strategies, consumers will probably be faced with some form of
commercial content on their devices.
2.4.4. Mobile Advertising law and standards
In the UK, the standards of mobile advertising have not yet been fully established.
However, the Internet Advertising Bureau (IAB), Mobile Marketing Association (MMA)
and other industry bodies are controlling mobile advertisements and working to
improve mobile ad standards. These standards will open the market for mobile web
advertising, as most mobile advertising in the country is still predominantly based on
SMS (eMarketer, 2009; Mobile Marketing Association, 2009).
According to the Advertising Standards Authority (ASA), the self-regulating body that
controls advertising in the UK, all ads that appear in new media, which include mobile
channel, must be under the same rules that apply to advertisements in traditional
media (Advertising Standards Authority, 2009). Mobile advertising is also regulated
by the Mobile Marketing Association (MMA), which has its own global code of
conduct (Mobile Marketing Association, 2008) in order to create guidelines for mobile
marketers and protect the medium from irresponsible and unethical marketers. The
28

30. major aims of these bodies are to guarantee consumers‟ privacy and security
standards.
Furthermore, according to the The Privacy and Electronic Communications
Regulations, the British Code of Advertising, and Mobile Global Code of Conduct, no
organisation can send unsolicited electronic communication to consumers, including
SMS and MMS. Hence, marketing and promotional messages can only be sent to
individuals if the person consents (opt-in) or explicitly asks to receive them.
Consumers also have the right to stop receiving these messages (opt-out) anytime
they wish. Therefore, permission-based marketing is the only form of marketing
communication available for marketers in the UK to access mobile consumers
(Hanley et al., 2006). Moreover, the content of any type of mobile advertising must
also meet the laws mentioned previously (Advertising Standards Authority, 2009;
Information Commissioner, 2009; Mobile Marketing Association, 2008).
2.5. Consumer acceptance issues
Consumers‟ attitudes and perceptions toward wireless advertising are still evolving,
and some studies have shown that their attitudes can be negative if they do not
consent to it. As noted, consumer permission is one of the drivers for mobile
advertising acceptance. Additionally, entertainment value and information value also
contribute towards positive perceptions regarding advertising via mobile devices
(Leppäniemi and Karjaluoto, 2006). Carroll et al. (2007) argue that mobile advertising
acceptance is directly connected with the acceptance of advertising in general as
well as mobile technologies. Nevertheless, researchers have been adopting the
traditional advertising theories and Internet usability to develop a mobile acceptance
model, as no one theory has generally been accepted regarding mobile advertising
acceptance (Hanley and Becker, 2008).
29

31. 2.5.1. Consumer acceptance towards advertising in general
Advertising must be analysed by taking into consideration the social and cultural
context it is part of and the role it plays in this framework in order to understand
customer reception and behaviour towards ads (Aitken et al., 2008). Advertising itself
generally has a negative impact on individuals‟ minds and many of its aspects
receive a great deal of criticism. Many consumers and critics state that advertising is
manipulative and also promotes materialistic social values. Children and teenagers
are also perceived as vulnerable targets of advertisements and promotions.
Advertising can also be seen as intrusive and is easily ignored or avoided by the
audience in both traditional and digital media. Due to the fact that contemporary
consumers are more conscious about what they want to buy as well as being aware
of the role of advertising, many of them are sceptical towards it. Conversely,
consumers accept advertising as part of modern life and most of the time they
associate it as informative. Additionally, when they see advertisements as clever,
original and humorous, they find it entertaining, presenting a more positive attitude
(Cheung, 2007; Wang et al., 2002).
2.5.2. Consumer acceptance towards technology
The success of new technologies basically relies on consumers‟ adoption of the
innovation. Mobile users, for example, must be aware and have a fair understanding
of the new applications and services available on their devices to accept new
entrances. According to the Technology Acceptance Model, users must perceive the
new technologies usefulness and perceived ease of use. However, this is not the
only approach that determines consumers‟ acceptance toward technologies. The
network externalities approach points out that other users can strongly influence the
acceptance behaviour among a certain group. Moreover, other variables may also
affect consumers‟ behaviour, such as its credibility, its perceived benefits, its costs,
availability in the market, and the most important is consumers‟ previous experience
with the technology and its transference to new technology applications (Benbunan-
Fish and Benbunan, 2007; Wang et al., 2008).
30

32. 2.5.3. Consumer acceptance towards mobile advertising
Since consumers are progressively more exposed to mobile advertising, their
acceptance is also increasingly considered as a critical success factor. For the
majority of users, their mobile phones are seen as very personal devices, and
consequently, mobile advertising can frequently be considered intrusive, even more
than general advertising. Moreover, as mobile handsets generate an emotional
attachment with their users and have the capability of storing a great deal of personal
information about friends, family and business contacts; there is generally little
motivation among consumers to receive advertising on their devices (Leek and
Christodoulides, 2009; Merisavo et al., 2007)
Nevertheless, relevance and added value, such as discount vouchers and special
offers, can enhance consumer acceptance significantly (Leppaniemi and Karjaluoto,
2008; Merisavo et al., 2007; Tähtinen and Salo, 2004). Incentives, such as a free
download or discount vouchers, as well as consumers‟ intention to receive
advertisements can also have a positive impact on consumer attitudes towards
mobile advertising (Vatanparast and Asil, 2007). For instance, quite a few airlines
and hotels in the US are now offering extra points on loyalty cards if consumers
accept to receive advertisements on their mobiles (Nasco and Bruner II, 2008).
Furthermore, entertaining messages and relevant content might have a positive
impact on consumers‟ attitudes whereas high frequency of advertising exposure can
generate a negative impression (Haghirian et al., 2005; Vatanparast and Asil, 2007).
Different from TV or radio where advertising can easily be avoided or ignored through
the use of a channel switch or even by just turning off the equipment, mobile
advertising as well as online formats cannot be easily skipped (Ha, 2008). Hence, a
great deal of consumers are still relatively uncomfortable with the idea of mobile as a
commercial tool and they are also unconvinced about its feasibility and security. As
noted, consumers consider their mobile handsets a very private item, even an
extension of the self. Therefore, they are very sensitive about unknown individuals or
organisations delivering messages or contents that penetrate their mobile space and
are increasingly intolerant towards these messages. Most consumers report mobile
ads as another form of spam. Furthermore, if marketers intend to efficiently use the
31

33. mobile communication channel, they should first recognise how mobile consumers
perceive and evaluate mobile devices as a medium, since their perceptions toward
the medium directly affect their attitudes toward advertising (Haghirian et al., 2005;
Nasco and Bruner II, 2008).
There are many factors driving consumers‟ acceptance towards mobile advertising.
Firstly, their attitudes towards general advertising are directly related to mobile
advertising. If for instance they do not have a positive relationship with other forms of
advertising, it is more likely that this feeling is transferred to mobile devices (Hanley
et al., 2006; Vatanparast and Asil, 2007). Their attitudes towards technologies,
especially their familiarity with the Internet, also affect mobile advertising acceptance
(Hanley et al., 2006). According to Scharl et al. (2005), acceptance of mobile
marketing campaigns should be higher among Web users than among the overall
population.
Leek and Christodoulides (2009) state that friends also play an important role in
mobile ad acceptance, especially among young consumers, who expect to receive
short, concise, and entertaining messages from their favourite brands. Due to this
fact, mobile marketing practitioners tend to target youths, as they are more likely to
be innovators, to adopt new technologies first and to be more receptive to
advertisements. Leppaniemi and Karjaluoto (2008) add that usually, men show more
positive attitudes toward advertising in general than women, even preferring
interactive advertisements than the traditional ones. It is not just gender and age that
are the demographic variables impacting mobile ad acceptance, other demographic
aspects, such as annual income and level of education can strongly affect the way
consumers perceive and interact with mobile ads. For instance, it is believed that
individuals with less education and lower income are more susceptive to receiving
commercial content on their devices (Hanley et al., 2006; Leppaniemi and Karjaluoto,
2008).
32

34. As noted, there are potential problems concerning mobile marketing and advertising,
such as spam and privacy. The major concern among consumers is that wireless
communication could grow and have the same issues as email marketing, which
could jeopardise the mobile ad value and opportunities (Park et al., 2008). As
revealed by the Advertising Standard Authority study (2005), consumers report their
concerns of receiving commercial content on their mobiles. According to the study,
all respondents were more suspicious about mobile advertising compared to other
media, text message-based advertisements being the most obtrusive and annoying,
which the majority do not even reply to it. On the other hand, mobile web banners
evoked less apprehension among consumers, mostly with trusted brands
(Advertising Standards Authority, 2005).
Even though there is great interest from organisations to reach consumers in more
interactive ways and also from a great deal of consumers in receiving mobile
advertisements, as noted beforehand, there are several concerns regarding the use
of mobile as a commercial channel (Nasco and Bruner II, 2008). Thus, mobile
operators, which are the main trusted partners from a consumer perspective, and
also marketers, must ensure that mobile advertising will not be transformed into
another spam machine (Burgan, 2009).
2.6. Research questions and hypothesis
After reviewing the literature, the following research questions and hypothesis were
formulated, which are going to guide the data collection and analysis of this study:
RQ1. To what extent do the demographic variables of gender, age and level of
education affect the way consumers perceive and accept mobile advertising?
H1. Men are generally more technologically savvy than women and, therefore, have
a more positive attitude toward mobile advertising.
H2. Individuals from a lower level of education have a more favourable attitude on
receiving commercial communication on their devices.
H3. Young people are more prepared to accept mobile advertising.
33

35. RQ2. What drives consumers to consider accepting advertising on their mobile
devices?
H4. Trusted brands may increase consumer acceptance toward mobile campaigns.
H5. Relevant, personalised and entertaining messages/content drive consumer‟s
willingness to receive mobile ads.
H6. Reward and incentives encourage consumers to accept mobile advertisements.
RQ3. If incentives can increase consumer willingness to accept mobile
advertisements, which type of compensation would work better?
RQ4. Are consumers more willing to buy a specific brand or product after receiving a
mobile advertisement?
34

36. Chapter 3: Methodology
3.1. Research Philosophy, Approach and Strategy
In this research the positivist philosophy is used as it is the researcher‟s intention to
analyse the facts without considering subjective influences, as the aim of this study is
to assess customer acceptance of mobile advertising and not to profoundly
understand the behavioural reasons for that. The positivist philosophy allows the
researcher to apply to the social study the same procedures used by natural
sciences. It also allows the researcher to express the study findings as empirical
generalisations, since it was not the researcher‟s intention to deeply understand all
the reasons that motivate consumer acceptance of mobile campaigns, which the
interpretivism approach, for example, proposes (Saunders et al., 2003; Kumar,
2005).
In order to complement this philosophy and to ensure a thorough development of the
topic, the deductive approach will be used. At the end of the literature review, a
couple of research questions and hypothesis were formulated in order to guide the
design of the questionnaire and to test them in the findings‟ section. According to
Saunders et al., (2003), a deductive approach is where the researcher first develops
a theory or hypothesis in order to design a research strategy to test the hypothesis.
This approach was chosen especially because it enables the researcher to move
from theory to data, to collect quantitative data as well as maintain an independent
view of the subject that will be assessed. The advantage of this approach is that it is
relatively cheap, quicker to complete and represents a lower-risk (Bell, 2005;
Saunders et al., 2003).
The research strategy aids the researcher to better answer the questions raised in
the literature review, as its purpose is to suit the particular objectives of this study.
Hence, a survey strategy has been chosen to coincide with the deductive approach.
This strategy allows an adequate amount of data to be retrieved from a suitable
sample size in an efficient manner (Saunders et al., 2003). This can be seen in the
35

37. online survey, which is guiding this study. Although designing and piloting the
questionnaire as well as analysing its results are time-consuming, the survey strategy
gives some control over the whole process. The advantage of this is that the
researcher does not depend on others to obtain the information needed, such as
interviews and focus groups that need pre-arrangements (Saunders et al., 2003).
Inevitably, the survey method is not perfect and the researcher has been faced with
some limitations, such as the fact that the data collect may not be as extensive as
those collected through action research or ethnography, for instance. Due to this
fact, targeting a representative sample population was essential to ensure that the
method is valid and reliable (Bell, 2005; Saunders et al., 2003).
3.2. Secondary Research
In order to go over the main points of the digital context, advertising industry, mobile
environment, and mobile advertising, its theories and models, a critical review of
general text books, current reports, and relevant journal articles was conducted in the
secondary research. The value of a review goes beyond supporting or rejecting
arguments, it gives the reader an explanation of the context and background of the
subject studied (Bell, 2005; Burns, 2000).
The advantage of this type of data is that the content combines knowledge from
many primary sources into a single publication (Burns, 2000, pp. 27). Hence, this
method provides a rapid and quite simple way of obtaining a general understanding
of the proposed topic and its related subjects. Furthermore, the literature review
allows the researcher to find gaps in the field of study as well as to provide useful
insights to structure the research design. Many studies are more likely to contribute
with methods and approach suggestions than with their findings and conclusions
(Burns, 2000). However, this isolated method is not enough to comprise a well
developed piece of research (Burns, 2000; Burns and Bush, 2003; Saunders et al.,
2003)
36

38. 3.3. Primary Research
The primary data was collected through online questionnaires administered via the
website Survey Monkey. Beforehand, with the purpose of refining the questionnaire
to minimise answering issues, a pilot was conducted with 10 people chosen through
a convenience sampling method, which although it is easy to obtain, it can also
produce bias as the sample is opportunely chosen by the researcher (Burns and
Bush, 2003; Saunders et al., 2003). With the feedback from the pre-test, the
researcher could improve the questionnaire design and see the mistakes that were
raised. Following the pilot, the quantitative survey took place between 4 th and 18th
July 2009. Closed questions, and a combination of nonprobability referral and
convenience sampling among mobile consumers in the UK were used to answer the
research questions. Potential respondents were asked to answer an anonymous
questionnaire, which compiled an identical array of non complex questions in a set
order covering mobile advertising and its implications, as the researcher aimed to
determine the acceptance of mobile advertising among a representative sample of
mobile British consumers. Due to the fact that it is a current topic, it may have
motivated consumers to answer the survey (Burns and Bush, 2003; Saunders et al.,
2003).
Both qualitative and quantitative approaches are important when conducting
research because they provide alternative perspectives and no individual
methodology can provide suitable answers and insights for all questions or problems.
It just depends on the researcher‟s objectives and expected achievements. Although
a combination of at least one other method could enhance the methodology of this
research, due to the short time and limited resources available, the researcher
decided not to design a methodological triangulation. Some insights would be
welcomed from a qualitative method, such as from a focus group to get some useful
thoughts into mobile advertising and consumers behavioural intentions. However, the
timescale involved in data collection and analysis is one disadvantage to qualitative
research, which is the main reason why the researcher did not complement the study
with this method (Burns, 2000; Burns and Bush, 2003; Saunders et al., 2003).
37

39. Hence, the above arguments confirm that the quantitative method is more
appropriate for this research. However, some cautions needed to be taken when
conducting this type of research to ensure the collection of data were precise in order
to answer the proposed questions accurately and to achieve the objectives, as the
researcher was not able to design another questionnaire and collect additional data.
The researcher was also careful during the design of the questionnaire, as it not only
affects the validity and response rate, but also greatly alters the reliability of the data
collected. Questionnaires function better with standardised questions that are not
open to interpretation (Bell, 2005; Saunders et al., 2003).
3.4. Internet-based survey
There are some issues regarding Internet-based surveys, such as being seen as
spam, having potential technical glitches that may arise and the sample not being
perfectly able to represent the entire population, due to the fact that some individuals
may not have computers or Internet access. There is also the issue that differently
from a paper-based questionnaire, not all respondents may see the same image. For
instance, alternative computer operating systems, Internet browsers and display
screens can interfere in the image that is being displayed. Consequently, the
questionnaire design needs to be clear and simple (Burns and Bush, 2003).
In spite of that, this type of data collection was chosen for this research because its
positive contributions were greater than the negative ones. The cost-effectiveness of
online surveys administered via website, such as Survey Monkey, seem to be the
most positive characteristic, followed by the fact that it has the same strengths of a
paper survey. In addition, the data is fast to collect, it is dynamic, it is less threatening
for some respondents, the data is captured in real time, respondents answer the
questions at their own pace, it is easy to use, the nonresponse is minimal, it is easy
to store the respondents‟ database records and it is environmentally friendly (Burns
and Bush, 2003; Survey Monkey, 2008). Moreover, in spite of this approach being
not entirely able to represent the population studied, it can, for instance, enable the
researcher to reach difficult-to-access groups (Burns and Bush, 2003).
38

40. Although web experience is needed to complete this survey, it has been seen that
the UK is a country with high Internet penetration reaching over 60% of the entire
population, with approximately 40 million users in 2007 (Abrams, 2008; CIA, 2007;
Internet World Stats, 2008). Therefore, as the topic of this research involves a digital
media subject such as mobile and handheld devices; it conveniently suited the
researcher‟s objectives (Burns and Bush, 2003).
3.5. Sampling plan
Burns and Bush (2003, p. 332) state that if a sample is not correctly drawn, the
research may produce misleading conclusions. Due to the fact that obtaining
information from every single individual in a population is generally impossible and
very impractical, the use of a sample is imperative when conducting this research.
The population considered for this research is all the UK mobile users, which
correspond to 73.5 million mobile subscribers in the country, according to Mintel
(2008). As the population is so large and difficult to be fully analysed, taking a sample
was needed in order to ensure the representation of the entire group.
The researcher sent emails to personal contacts and also promoted the survey on
mobile related groups on Facebook with a brief description of its purpose, asking
every respondent to forward the link of the survey to others (Appendix D). This type
of sample is considered a combination of nonprobability referral or “snowball”, and
convenience sampling methods because only those who are within the network have
the possibility of being chosen to answer the survey. The issue regarding this method
is that members of the population, who are less well known, disliked, or those who
opinions conflict with the respondent have a low probability of being selected (Burns
and Bush, 2003, p. 349). Although this method can be less accurate, when the
researcher used Facebook groups to reach the target, it may have increased the
chances of the sample being more random and representative, as these are pages
that are more likely to be looked at by the targeted population (Burns and Bush,
2003; Saunders et al., 2003).
39

41. As the population is so large, it is difficult to design a frame sample and, due to time
and financial restraints it is not practical to produce any type of probability random
sampling method, which are very costly and time consuming. For instance, simple
random sampling is better applied with small populations, random digital dialling and,
computerised lists. Consequently, the researcher would need a complete and current
list of the population to establish the frame sample, which was not feasible when the
UK mobile users‟ population is taken into consideration. Hence, referral sampling
was chosen as the most suitable method (Burns and Bush, 2003; Saunders et al.,
2003).
In relation to a nonprobability sampling method, it is inappropriate to consider any
sample size formula, as it is unrelated to accuracy. However, the value of the
information for the research objectives as well as the available resources must be
carefully considered (Burns and Bush, 2003). Moreover, as stated by Saunders et al.
(2003), the validity of a nonprobability method will rely on the analysis of the data
collected and not on the sample size.
Although the sample size in this case may not represent properly the entire
population due to the low accuracy and high sample error, in order to fit in the
researcher‟s budget and to meet the deadlines, a sample size of 130 respondents
was chosen. This number was selected in order to validate the results of the
research as it is feasible and also not too small (Burns and Bush, 2003; Saunders et
al., 2003).
3.6. Questionnaire design
The questionnaire (appendix F) was based on the questions and hypothesis
formulated at the end of the literature review and focusing on the data that was
collected. The questionnaire can be divided into three main parts. The first part
consists of a wide variety of questions covering mobile usage, mobile advertising
experience, opinions and attitudes taken by consumers. The second part includes
40

42. questions about consumers‟ behaviour after receiving mobile advertisements on their
devices. The third part contains socio-demographic questions, based around gender,
age, level of education and family annual income. Questions used in previous
research were adapted aiming to make a comparative analysis with the survey
findings and previous results (Chowdhury et al., 2006; Hanley and Becker, 2008;
Leppaniemi and Karjaluoto, 2008; Merisavo et al., 2007). These types of questions,
as noted by Burns and Bush (2003), allow reliability to be accessed. Additionally,
original questions were created, aiming to answer the issues raised during the
research process and also to meet the objectives of the study.
Moreover, three forms of questions are present in the questionnaire, which are
category, rating or scale and grid. The first one is represented by questions that have
only one response to be selected from a given set of options and was useful to
collect data about mobile advertising behaviour, mobile usage and for attribute
questions. The second is characterised by the Likert-style rating scale, with a five-
point scale ranging from „strongly agree‟ to „strongly disagree‟ being used. In order to
focus on the opinion of consumers about mobile advertising attributes and their
willingness to accept advertisements on their handsets, three questions were based
on the Likert scale. Grid questions are those where the responses to two or more
categories can be recorded by using the same matrix. Even though respondents may
find it difficult to understand this type of design, one grid designed question was still
included, as it was the researcher‟s objective to find out which brand was sending
mobile advertisements to consumers.
3.7. Methods of analysis
Web-based surveys, such as Survey Monkey, come with an integrated questionnaire
design and analysis software programme. Hence, there is no need for the use of
SPSS in this research, as all the statistical analysis is going to be done with the use
of the integrated software programme available on the website, which produces the
statistical results as well as tables and graphs (Burns and Bush, 2003; Survey
Monkey, 2008).
41

43. Although the tools are available in the web-site, the researcher needed to choose
how the data was going to be analysed. Two types of statistical analysis were
combined in order achieve more valid and reliable results. The associative method
and the differences method were the most important approaches, which combined,
give the required results to test the research hypothesis raised. The first method
determines if two variables are associated in a systematic way and the second one
assesses the statistical implication of two groups in a sample. With the associative
approach, cross-tabulations and correlations are going to be used to evaluate the co-
relations between the variables and responses to mobile advertising, in order to
answer the research questions and validate the hypothesis raised at the end of the
second chapter. With the differences approach, an analysis of variance is going to be
used in order to verify, for example, the gender or age difference in relation to the key
questions (Bush and Burns, 2003; Saunders et al., 2003).
3.8. Ethics
Ethical concerns emerge in this piece of work in terms of assessing individuals,
collecting, analysing and reporting the data. During the development of this study
several ethical issues were faced by the researcher, as it is very difficult to conduct a
research without encountering ethical arguments (Burns, 2000, pp. 22). Ethical
issues were guided by the Manchester Metropolitan University academic ethical
framework and also by the British law, such as the Data Protection Act 1998. This
ensures that the researcher meets the established behavioural norms and
procedures (Saunders et al., 2003).
According to Walliman (2005), the researcher should examine all possible
consequences deriving from the research methods employed. As noted by Saunders
et al. (2003), ethics is directly related to the researcher‟s behaviour regarding the
rights of individuals who become the research subjects or are affected by it. Hence,
the researcher was attentive to age, cultural aspects, gender and sexual orientation
issues.
42

44. 3.9. Limitations of the methodology
The limitations of the methodology in this research rely on the online survey
approach and on the chosen sampling method. The major problem to be considered
is that not only the chosen sampling method, but also Internet-based questionnaires
have a limited representativeness of the targeted population. Due to the fact that only
individuals within the network would be able to answer the survey, especially those
from mobile related groups, it may affect the overall result, as this sample might be
more willing to accept mobile advertising than other samples would. In addition,
online surveys, as noted before, have some issues that can jeopardise the entire
research as well as the data analysis. Hence, more detailed attention needs to be
paid to the data analysis section in order to overcome the weaknesses of the online
survey and the sampling method.
43

45. Chapter 4: Results/Findings
As noted in the methodology chapter, the respondents to this study were recruited
from the UK during the three first weeks of July 2009 through a web-based survey.
After being pre-tested with 10 individuals, the final sample of the study resulted in
130 respondents aged 13 and above.
Table 7: Demographic profiles classified by gender
Gender
Female Male Response Response
Age n % n % Count Percent
13-24 15 21.4 17 28.8 32 24.9%
25-34 33 47.1 27 45.8 60 46.5%
35-44 11 15.7 10 16.9 21 16.3%
45 + 11 15.7 5 8.5 16 12.4%
Level of education
Currently attending school 2 2.9 1 1.7 3 2.3%
A Level 1 1.4 4 6.8 5 3.9%
GCSE, O Level 5 7.1 4 6.8 9 7.0%
NVQ / GNVQ / Vocational 1 1.4 1 1.7 2 1.6%
University degree (BA, Bed,
26 37.1 29 49.2 55 42.6%
BSc)
Masters degree / Doctorate 28 40 13 22 41 31.8%
Other qualifications 5 7.1 4 6.9 9 7.0%
Left school without
2 2.9 3 5.1 5 3.9%
qualification
Family income p. a.
Less than £15,000 12 17.1 9 15.5 21 16.4%
£15,000 - £ 29,999 20 28.6 14 24.1 34 26.6%
£30,000 - £ 44,999 15 21.4 16 27.6 31 24.2%
£45,000 - £54,999 4 5.7 3 5.2 7 5.5%
£55,000 - £ 64,999 4 5.7 2 3.4 6 4.7%
£65,000 - £ 74,999 1 1.4 0 0 1 0.8%
£75,000 + 3 4.3 7 12.1 10 7.8%
N/A 11 15.7 7 12.1 18 14.1%
Of the 130 respondents who completed the online survey, 54.3% were female and
45.7% male (table 7). The sample was predominantly composed of young mobile
users, since 70.4% of the participants were below 35 years old. Almost twice as
many females than males were in the oldest age group (>45 years), being 15.7% and
8.5% respectively. Regarding the level of education, the majority of the respondents
pursued a University degree, which accounted for 42.6% of the total of participants.
44

46. Additionally, 40% of the females have a Master or Doctorate degree, compared with
only 22% of the males. Forty-two percent reported a family annual income of less
than £30,000 and no critical difference was observed between males and females.
Table 1 illustrates the demographic profile of both male and female participants.
4.1. Mobile usage behaviour
With the new entrance of 3G technology in the UK market (Internet Advertising
Bureau, 2009; Mobile Marketing Association, 2009), the number of smartphones and
other advanced technologies, such as iPhone and Blackberry, has increased
significantly in the UK during the past years (AdMob, 2008; Burk, 2008). The results
show that 50% of the respondents still own a feature phone with basic attributes.
However, the 50% remaining own a smarthphone or similar (figure 6), showing that
there is a balance among the respondents.
Figure 6: What type of mobile phone do you have?
45

47. Text messaging is the main service used by the majority of respondents in the past
month, with 92.3% reporting they have used it more than three times (figure 7). As
noted, receiving and sending text messages are the most used service among
mobile users (Becker, 2006; Berger Insight, 2008; Jung and Leckenby, 2007; Mobile
Marketing Association, 2009). Moreover, the Nielsen Company estimates that in the
third quarter of 2008, 76% of all mobile subscribers aged 13 and older used text
messaging on a regular basis (Nielsen Report, 2008). From figure 7 it can be seen
that the second most popular service/feature used was the photo or video camera
with 40.9% of the participants stating that they have used it more than three times in
the past month. Furthermore, Nielsen Report (2008) reveals that 12.9% of the UK
mobile subscribers are actively using the Internet on their mobiles. In this study,
31.5% of the participants have accessed the web through their devices more than
three times in the past month, reinforcing that mobile web is becoming increasingly
important throughout the country (figure 7).
Figure 7: How many times in the past month have you used each of the following
features/services on your mobile phone?
46

48. 4.2. Awareness of mobile advertising
Sixty-seven percent of respondents reported that they received promotional text
messages on their devices in the past year, confirming previous studies that have
reported SMS as the most popular form of mobile advertising practiced among
marketers (Internet Advertising Bureau, 2009; Leek and Christodoulides, 2009;
Merisavo et al., 2007; Park et al., 2008). Indeed, MMS, links to Internet or
downloads, audio advertisements and quizzes were hardly ever received by the
respondents. Only links to Internet or downloads have demonstrated a significant
presence among the sample, with 16.9% of all participants declaring that they have
received these types of advertisements more than three times in the past year (figure
8).
Figure 8: How many times in the past year did you receive each of the following
types of advertisements or promotions on your mobile?
The results from table 8 also confirm that mobile operators represent the main
intermediate for mobile users, which was noted by Burgan (2009). The majority of the
participants reported that their mobile operators are the brands that send promotional
content to their handsets throughout all formats of advertisements. Local businesses
47

49. appear to be the second intermediate that sends advertisements to the respondents
in the past year, which reinforces the personal nature of mobile devices as a
promotional channel (Bamforth et al 2006; Hanley et al. 2006; Mobile Marketing
Association, 2007, 2009; Park et al., 2008).
Table 8: Which type of brand has sent you the following advertisements or
promotions on your mobile?
Big brands
Your mobile
(Coca-cola, Retail businesses Local
operator (O2,
Pepsi, Apple, (supermarkets, businesses
Answer Options Orange,
Nike, clothes shops, (gym,
Vodaphone,
Mcdonalds, groceries, etc) cinemas, etc.)
etc)
etc)
Text message/SMS 94.2% (113) 1.7% (2) 10% (12) 20.8% (25)
MMS/Video 78.7% (23) 6.7% (2) 6.7% (2) 0% (0)
Link to Internet 66.7% (30) 8.9% (4) 15.6% (7) 15.5% (7)
Audio
48% (12) 12% (3) 4% (1) 8% (2)
advertisement
Quiz 62.5% (15) 0% (0) 4.2% (1) 8.3% (2)
From table 9 it can be seen that 44% of the respondents think that mobile advertising
is informative. On the other hand, 50.4% of them said that they view advertising as
another form of SPAM, which is one of the major concerns of mobile advertising
(Burgan, 2009; Haghirian et al., 2005; Nasco and Bruner II, 2008; Park et al.,2008).
In addition, 63% stated that mobile advertising is a message that they did not ask for.
Moreover, 49.6% do not find mobile advertising entertaining and 45.2% do not agree
it is personalised, which contradicts the believed personal characteristic of mobiles
(Hanley et al., 2006; Jin and Villegas, 2008). Although previous studies have shown
that consumers view mobile advertising as common and inevitable, consumers does
not perceive mobile advertising as enjoyable and the majority do not want to receive
promotions on their devices, most of the time finding them even annoying (Hanley
and Becker, 2008; Kondo et al., 2008; Leek and Christoudolides, 2009).
48

50. Table 9: To what extent do you agree/disagree with each of the following
characteristics of mobile advertising?
Neither
Answer Strongly Strongly Rating Response
Agree agree or Disagree
Options agree disagree Average Count
disagree
It is 8.6% 35.2% 12.5% 14.1%
29.7% (38) 3.12 128
informative (11) (45) (16) (18)
It is 18.9% 23.6%
6.3% (8) 25.2% (32) 26% (33) 2.58 127
entertaining (24) (30)
It is 23.8% 20.6% 24.6%
5.6% (7) 25.4% (32) 2.65 126
personalised (30) (26) (31)
It is 13.5% 26.2% 18.3%
7.1% (9) 34.9% (44) 2.65 126
interactive (17) (33) (23)
26.8% 23.6%
25.2% (32) 9.4% (12) 15% (19) 3.38 127
It is a SPAM (34) (30)
It is an
19.7% 18.9% 12.6% 15.7%
irrelevant 33.1% (42) 3.14 127
(25) (24) (16) (20)
message
28.3% 24.4% 17.3%
22.8% (29) 7.1% (9) 3.39 127
It is annoying (36) (31) (22)
It is a
message that 38.6% 24.4% 16.5%
14.2% (18) 6.3% (8) 3.62 127
you did not (49) (31) (21)
ask for
4.3. Research questions and hypothesis
RQ1. To what extent do the demographic variables of gender, age and level of
education affect the way consumers perceive and accept mobile advertising?
H1. Men are generally more technologically savvy than women and, therefore, have
a more positive attitude toward mobile advertising.
Previous studies have shown some evidence that female were slower to accept new
technologies and were more resistant to receiving promotional content on their
handsets. Indeed, it was revealed that males were more likely to access mobile
media content (Leek and Christoudolides, 2009; Leppaniemi and Karjaluoto, 2008).
Conversely, Leppaniemi and Karjaluoto (2008) have illustrated that females are more
active than males when participating in and responding to mobile promotions (34%
vs. 24%). Figure 9 indicates that males are slightly more up to date with the mobile
devices that they own, with 59.3% of the males owning a smartphone or similar new
technology, against 42.8% of the females. They also accessed the Internet more
through their mobiles in the past month, with 38.6% of males reporting to have
49