“Mobile Advertising a potential medium; not being utilized

affectively”

Supervisor

Mr. Ahmed Bilal

Submitted by

Bassim Khan 01-221091-007

Faizan Jahangir 01-221091-009

MBA-IV (E)
BAHRIA UNIVERSITY, ISLAMABAD 1
CHAPTER 1
INTRODUCTION TO THE REPORT

1.1 BACKGROUND OF STUDY

“Mobile advertising is a form of advertising through mobile phones. Advertisers and
media industry are increasingly taking account of a huge and fast-growing mobile
market, though it remains at around 1% of global advertising spend.”

“As the mobile phones have rapidly outnumbered Television sets by over 3 to 1, and
Personal Computers based internet users by over 4 to 1, and the total laptop and desktop
PC population by nearly 5 to 1, advertisers in different markets have rushed to this new
media. In Spain, around 75% of mobile phone users receive ads through their cell phone,
in France 62% and in Japan 54%. As the mobile advertising is maturing, like in the most
advanced markets, the user involvement has also matured. In Japan, 44% of mobile
phone users click on ads they receive on their mobile phones. D2, the largest mobile
advertising agency in Japan claimed in November 2009 at the Mobile Asia Congress, that
mobile advertising in Japan was worth 900 million.” (Wikipedia)

“This unexceptional two-way communications grabbed the attention of media industry

and advertisers as well as mobile phone makers and telecom operators. Ultimately, SMS
became a new media - called the seventh mass media channel by several media and
mobile experts. It is a two-way mobile media, as compared to one-way immobile media
like radio, newspaper and Television. Besides, the immediacy of responsiveness in this
two-way media is a new territory found for media industry and advertisers, who are eager
to measure up market response immediately.”
Additionally, the possibility of fast delivery of the messages and the ubiquity of the
technology (it does not require any additional functionality from the mobile phone, all
devices available today are capable of receiving SMS), make it ideal for time- and
location-sensitive advertising, such as customer loyalty offers (e.g. shopping centers,

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large brand stores), SMS promotions of events, etc. To leverage this strength of SMS
advertising, timely and reliable delivery of messages is paramount.

“Mobile media has begun to draw more significant attention from media giants and
advertising industry since the mid-2000s, based on a view that mobile media was to
change the way advertisements were made, and that mobile devices can form a new
media sector. Despite this, revenues are still a small fraction of the advertising industry as
a whole.”

1.1.1 Advertising Industry Pakistan

“Advertising is well-thought-out by many to be the most important factor in the success
of a company. A company can have the best business idea, product, or service, but
without effectively conveying their message to their target market, these ideas, products
and services can go unnoticed. A successful advertising drive can set a company apart
from the competition, and permits giving potential customers an image of what makes the
company different from the competitor.”

“Advertising is known as the second oldest occupation by some people. The method of
advertising has been drastically changed due to the arrival of PC, Internet, e-commerce,
and graphic designing.”

“The key objective of advertising is to make people buy goods or services. If the world is
the market place where everyone is trying to sell a product, a service, or an idea, the
significance of advertising could hardly be over-emphasized. The post-PC era where
information travels at the speed of light to strike all geographical barriers has helped turn
the art of advertising into a precise science which can make or break a manufacturer to
confirm maximum returns the ultimate indicator of which is the targeted increase in
sales.”

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“In Pakistan, advertising is as old as country itself, although it was there before the
partition too, but the changes it had experiences in last decade has made greater impact
than the previous fifty years. Pakistan was considered as a 'seller’s' market till eighties,
therefore the manufacturers never had to worry about marketing. Term “sales” used to be
more in use than “marketing” and because seller’s market guaranteed the total sales of the
goods produced, the manufacturers were relaxed and did little for marketing.”

Pakistan and Mobile Advertising:

“Mobile advertising is a segment of overall advertising industry in Pakistan, which is all

set to burst out. Now a day, almost every one owns a mobile phone which is why the
future is bright for mobile advertising. There is huge potential in mobile advertising
itself, SMS based advertising is just an initial step. There is so much more to offer in
Mobile Internet Advertising due to its capacity to tap into the user context and display
advertisements in a non-intrusive way. E.g. A consumer is surfing a sports website in his
mobile phone, then he/she could be served with an advertisement from Nike. The
strength of mobile advertising lies in its ability to display relevant ads to consumers.”

“Experts around the world believe that the industry is only at its formative years and is on
the edge for phenomenal growth in the emerging markets like India and Pakistan. The
reason is the low PC penetration and limited wired internet availability. Mobile web is
providing the first internet experience to most users. Mobile operators are accelerating
the market growth by providing low-cost reliable internet connections.”

“So what makes mobile advertising so enticing? The answer lies in the intrinsic
advantages of mobile as a medium. The reach of the mobile medium is tremendous and
has spilled well beyond the larger cities. Brands tie up with ad networks to leverage this
ability to reach out to the masses and increase their brand awareness. Mobile ad networks
are constantly trying to improve the tools and technology used to provide users with
relevant ads. Ads vary depending on the economic status of the user like a watch
company advertisement showing a cool trendy watch for youth and more sophisticated
elegant watch for an adult. Similarly parameters like operator, demography, handset

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capabilities, user profile etc provide ways to be able to deliver contextually relevant ads
to the users.”

In the very near future campaigns will be more mobile device-centric and will fully
leverage the capabilities of the device. For e.g. the ads for a video ad will only be shown
on mobiles which have the capability of video streaming and other phones will be served
with banner ads. User patterns and preferences would be the key to ad relevance keeping
in mind privacy concerns of the users. Imagine passing by a movie theatre and your
mobile page will have an ad showing the trailers of the movies running in the theatre.

1.1.2 Reason for Choosing this Industry

Growth and Revenues
In Pakistan, the advertising industry showed very healthy figures i.e. Rs. 13 billion
source:Gallup). Huge portion of growth i.e. 30% came from telecom and financial
services market. The cutthroat competition in these sectors made it vital for the survival.

Media Explosion
Last decade, Media grew exponent in Pakistan, opening new horizons for the world of
advertising. Media Planning and buying got mature and more formal. There are roughly
40 satellite TV channels and almost a dozen FM radio stations and a number of print
publications. This also showed a significant increase in the viewership of TV. This made
the job of agencies more challenging and demanding.

Creativity
A cut throat competition in all sectors ignited the clients to take advertising more
seriously (as a fruitful investment than as an expense), they now ask for superior
advertisements and are equally willing to pay for it, creativity has started niggling into
Pakistani advertisements industry.

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1.1.3 Growths in Mobile Users in Pakistan
“As per PTA (Pakistan Telecommunication Authority) the number of subscribers has
more than doubled in the past 5 years with the current customer base exceeding 90
Million. There are currently 97 million mobile users in the country and the total
population is 180 million and it is anticipated that there will be at least 30 million more
users. There is a chance that more companies might enter into the market after a few
years which shows the gradual growth in the mobile users in Pakistan.”

“It can be said for sure that the future predictions for the growth in the mobile users are
very bright and the current scenario is very hospitable for new advances. The people of
Pakistan are also taking up the habit of using the mobile phone in their day to day matters
and are appreciating the new services being provided to them. The market is full of state-
of-the-art and mobile phones with innovative features and youngsters are buying it in
great numbers.”

“The introduction of value added services for example GRRS, MMS Balance Transfer
etc. have been introduced to appeal more consumers and there are many more to be
introduced in the coming future.”

“According to one of the prominent newspaper Daily Jang (2009), the need for mobile
phones is growing and the market is expanding day by day. The number of consumers
has increased from 3 Million in 2003 to more than 97 Million in 2010. This shows the
exponential growth in the number of consumers over the past few years.”

“The recent trends show a very optimistic and bright future for the Pakistani mobile
users. The number of subscribers will continue to increase as there is an enormous market
potential and similarly the number of mobile users will also increase.”

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1.2 PURPOSE OF STUDY
As Mobile Advertisement is a very potential medium of advertisement and it is yet to
create an effect in the market. The purpose of the research is to study the attitude of
customers towards Mobile Advertising in Pakistan and its impact since the future of
business lies on more and more exposure and that can be done through advertising. The
success of the business is through a fruitful advertising strategy. The other purpose is to
investigate the findings and give recommendations and solutions as to what can be done
and achieved in the area of Mobile Advertising, also to understand the numerous features
of m-advertising and the usage of mobile phones in Pakistan and to recommend
improvement in area of m-advertising.

1.3 OBJECTIVES OF STUDY

The primary objective of this research study is to gain an understanding of the perception
of mobile users towards mobile advertising and its impact on the consumers.
• to comprehend what m-advertising is and how important it is in the today’s
competitive marketing environment
• to explore consumer’s response to mobile advertising
• to discover the relationships between attitudes toward the cell phone medium and
cell phone ads
• to explore the conduct of the respondents and their tendency to accept and use cell
phone ads
For above case the main focus is on use of mobile and general attitude towards
advertising.

1.4 RESEARCH QUESTIONS

Specifically, this study will answer five research questions:
1. Whether M-advertising will be a successful tool of marketing in Pakistan?
2. What cell phone services are consumers more interested in?
3. How do consumers perceive cell phone medium for advertising?
4. How do consumers perceive different types of cell phone ads (SMS and MMS)?
5. What impact will the mobile advertising have on the consumer’s routine life?

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1.5 SCOPE OF STUDY
The research is designed to study the evolution and development of Mobile Advertising
in Islamabad and consumer’s attitude towards M-advertising. An effort has been made
along with its limitations to collect the necessary data needed to fulfill the requirements
of this report. Every possible effort has been made to cover all the data and to advance
the knowledge about the m-advertising.

1.6 SIGNIFICANCE OF STUDY

The significance of this topic is that through this research it will be settled whether the
mobile advertisement can be executed and accepted by the people in Pakistan or not. So
far very petite research has been done in this field so this research will be of help for
others. The research will help people understand the practice and importance of mobile
advertising.

1.7 RESEARCH METHODOLOGY

The research methodology is a pre-requisite of conducting the research. It states the

procedure to be followed during the course of research report. Research methodology
provides the guidelines for collecting information. The data used in this report is
developed from primary source as well as secondary sources:

Primary collection method

Questionnaires were used as a primary source for data collection. Two questionnaires
were created to find out the attitude of consumers and companies towards m-advertising.
Secondary collection method
Secondary data collection techniques used in the compilation of this report includes: -
• Internet Search
• Books
• Magazines, Articles & Newspapers
• Prior research Reports

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These are the main secondary sources of data used for this study. In short, all the
resources available to get the maximum possible information in order to make this report
comprehensive and authentic have been used.

1.8 TARGET POPULATION

Respondents were selected through random sampling for the first questionnaire, from
various sectors of Islamabad to find out the response of people and the impact of M-
advertising on the society. Respondents for this level of research included students,
housewives, teachers, businessmen and other different classes of society and different age
groups. Main focus was on the young educated people of Islamabad.

In addition the second questionnaire was filled by the managers of selected companies.
The companies that were studied for this purpose are:

1. Beauty saloon
2. Educational institution
3. Telecom industry
4. Restaurant
5. Food and beverages
6. Banks

1.9 SAMPLE SIZE

A sample size of 200 was taken for the data collection of the first questionnaire which
was created to analyze the response of the general public towards m-advertising.

For the second questionnaire 6 companies were selected to find out the response of the
company’s owners or Managers towards the usage of m-advertising.

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1.10 RESEARCH INSTRUMENT

Data for this research was collected through questionnaire survey. The questionnaire were
developed from the existing literature and self-created. In the questionnaire, 5-point
Likert scale (1 strongly disagree; 2 disagree; 3 neither disagree nor agree; 4
agree; 5 strongly agree) was used to measure customer attitudes towards
mobile advertisements. The survey questionnaire consisted of eighteen questions.
The first three questions were related to the demographic characteristics of the
respondents, and the last fifteen questions were intended to investigate mobile phone
user’s attitudes. Before the questionnaire was conducted, it was pretested on ten
mobile phone users in order to measure the construct the validity of the attitude
measurement.

1.11 LIMITATIONS OF STUDY

It is to admit that the study attempts only those aspects, which are closely relevant to the
purpose of the study. Facts and figures, which otherwise might be equally important, but
not having a direct bearing on the conclusions arrived at is this study, have been ignored.

• This study employed only 9 convenience samples of people from different age
groups.
• Since this study was conducted mostly with student sample, the result of this
study cannot be generalized to the cell phone user population as a whole. It can
only be generalized for the young educated people of Islamabad.
• Another problem of scarcity of the written material. As very fewer researches
have been conducted on m-advertising in Pakistan.
• And last but not the least was element of secrecy due to which I couldn’t get
access to all information especially from the companies selected fro the study.
• At last being the time duration; 2 months are not enough to understand the
functions of m-advertising and then carrying out a research report on this topic.

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1.12 SCHEME OF REPORT
This report includes the following main sections.

CHAPTER 1: Introduction consists of background of the study, purpose of the study,

scope of the study, significance of the study, objectives of the study, and research
questions, limitations of the study, research methodology and scheme of the report.

CHAPTER 2: Literature Review

CHAPTER 3: Findings and Analysis

CHAPTER 4: Discussion

CHAPTER 5: Conclusion and Future Research

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CHAPTER 2

LITERATURE REVIEW

2.1 Introduction to Advertising

Advertising is defined as “any paid form of non-personal presentation and
promotion of ideas, goods or services by an identified sponsor” (Kotler, 2003, p.
590) The non-personal component means that advertising comprises mass media (e.g.,
TV, radio, magazines, newspapers) that can spread a message to large groups of
individuals, often at the same time.

The non-personal nature of advertising means that there is generally no prospect for
immediate response from the message receiver (except in direct-response advertising).

2.1.1 Attitudes toward Advertising in General

Consumers’ stance towards advertising in broad-spectrum has long been found to be
negative. For example, Zanot (1981) found that after 1970s, consumer attitudes toward
advertising became gradually negative. Early surveys of consumer attitudes revealed
somewhat positive results.

2.1.2 Purpose of advertising

Advertising aids the following purposes:
1. Appeal to new prospects and try to expand consumers’ base.
2. To compete with other players in the market.
3. To create company’s recognition among the customers.
4. To promote subsidiary or products produced by the same company.
5. To highlight the changes, special offers or current developments to the interest of
the consumers.
6. To increase the sale of a specific product.
7. To carry out PR and public service programs.

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 Other purposes of advertising could be to promote special events, build a strong sales
force and organization employee morale, generate store traffic, gather a sales lead or
balance a seasonal sales decline.

2.2.1 Different Models of Conventional Advertising

Cognitive Information Model

This model undertakes that the consumer purchase decisions are very sensible and that
they are not altered by advertising. Advertising provides information and reduces search
costs and shopping time. Quality of the product and truthfulness of an advertising claim
can be judged by examination (without trial) and assessment of relevant objective
information (e.g., price). Advertising is anticipated to be more effective for experience
and credibility than for search goods because it provides information that inspection does
not provides. (Vakratsas & Ambler, 1999).

Pure Affect Models

This approach suggests that consumers’ preferences are based on the elements like
feelings; liking and emotions tempted by the advertisement or the acquaintance caused by
the sheer exposure to the advertisement rather than the product brand attribute
information.

Persuasive Hierarchy Models

If advertising has to encourage sales of the product, then it must inform and then
influence has innate appeal. In the development of advertising research, the Hierarchy
concept has played a vital role. Within the Persuasive Hierarchy framework, extensive
studies have been carried out on the two important facilitating factors of individual
responses to advertising, that is, involvement and attitude toward the advertisement. The
involvement factor was operationalized by Krugman (1965-67) as the number of linkages
made between the advertised product and the consumer’s life during contact to an
advertisement.

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Low-involvement Hierarchy Models

In the models given below the advertisement is used to emphasize the present habits of
product and the experience of the product is the dominant factor; which frames
experience and secure the brand of consumer franchise. (Ehrenberg 1994;
Pechmann & Stewart, 1989).

2.3 Advertising and social responsibility

Advertising can be used to get both intentional as well as unintentional results. The
intentional results due to advertisements benefit us in the healthy sales of the product.
Advertisement is not just used for notifying and persuasion but also used as silent
information receiver on action taken regarding people in organized and proper way.

2.4 Mobile Advertising – Introduction

In our routine, mobile technology is becoming very common in developed countries.
Statistic of Western Europe shows that 60% is user of unique mobile in 2002 and around
30% were unique SMS users.
Communication through mobile has changed the market sphere of influence because
communication happens in completely innovative manner between consumer and the
advertiser, which in its way is easy and quick.
This technology is used as it gives new opening to marketer and they can build customer
relationship of new breadth by providing information to consumer. Consequently
marketer are advertising and sponsoring their services and products by using different
means of interactive technologies.

There is less information about the potential factors that influence the behavior of
consumers towards mobile advertising, and this is because perspective customer has
fewer opportunities to express their uncertainty of marketing activities and behaviors
using mobile technology. Research done to know the impression of advertising activities
on the attitude of consumer is influenced by messages via advertising, advertising
company and even the applied media.

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Though mobile advertising is latest technology but most of the advertising is done via
mass media or web based advertising. Markers who use the mobile advertising they
should know the effective utilization of communication channels that are provided by the
mobile media. And other factor that marketer needs to know is that the attitude of mobile
consumer how they find the cell phone for advertising.
But the potential customers as yet have fewer opportunities to convey their fear of such
marketing activities using interactive mobile technology. As a result, there is less
knowledge about the potential factors that affects the consumer attitude towards mobile
advertising. Research indicates that impacts of advertising activities are influenced by
attitude towards the advertising message, advertising company and even the applied
media. However, these results are more often associated to advertising through mass
media or through web-based advertising. In order to efficiently utilize the communication
channels that are being provided by the mobile media, marketers need to know the
attitude of mobile consumers as to how they identify cell phones as a source of
advertising.

According to Yoon & Kim (2001), web advertising and mobile advertising have many
common features such as digital texts, voice, tailored and responsive capabilities.
However the mobile advertising has little edge over web based advertising such as the
mobility limitation is removed. One has access to mobile anytime and anywhere.

According to Zoller, Housen &Matthews (2001), Wireless marketing can be of three

types incentive based, location based and permission based. Permission based advertising
is different from the traditional advertising in which ads about the product, services or
content are sent only to those who have allowed or who have shown their willingness to
receive messages. Advantage of permission based messages is that is reduces the
irritation of the consumer by relying on the permission of the customers. Whereas
consumer gets specific financial benefits for approving to receive promotion campaigns.
These methods of advertising are realistic for mobile advertising because of the wireless
technology which makes it possible to identify individual user. This is great advantage of

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mobile advertising that it makes it possible to locate a specific user, and location based
advertising takes benefit of this feature.

2.4.1 Advertising via Mobile Devices

Mobile advertising is relatively new concept; mobile advertising or advertising via
mobile is the practice of wireless media such as cell phone, pagers, cordless telephone,
two way radios, baby crib monitors,
Advertising via mobile devices or mobile advertising is defined as the usage of
interactive wireless media, wireless networking systems, GPS-based locators and maps to
correspond advertising messages in form of time and location sensitive area, information
is sent with the objective of promotion of goods and services.
There are number of names for mobile advertising, such as wireless messaging
advertisement, short name for it is SMS i.e. short messaging service. This medium of
communication allows the marketer to use unique feature of adapting their message to
consumer attributes. A well define marketing strategy is that which emphasize on the
building of long term relationships.

2.4.2 Attitudes towards mobile advertising in general

The mobile advertising has produce a new field for research that is what consumer think
about advertisement of products via mobile, do they get irritated, will this be of any
good? Which means will be more useful for advertising? So a good understanding of
these things will be of vital use for advertising via mobile. As it is very important to
know how customer feel about the ads sent to them via cellular phone.
Research has shown that the major issue in the advertising is the public attitude. Some of
the studies like of Bauer & Greyser and Gallup in 1959 have anticipated positive attitude
towards advertisings, but the modern studies by Bracket and Carr in 2001 proposed

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negative attitude towards advertising. Given the fact of noticeable decline in the customer
response to the advertising it is doubtful how the consumer will perceive mobile
advertising, what will be there reaction towards it, will it be positive or negative.
As mention above that the mobile advertising and web based advertising has mutual
feature, so according to research of Tsang have shown that mobile advertising has taken
few factors from internet advertising so as to forecast customer reaction n attitude
towards product and and services.

2.4.3 Advertising Value of Mobile Advertising

According to Pavlou & Stewart (2000) advertising basic problem is how to measure the
outcome of advertising on the receiver. The communication between marketer and the
customer has effect on both so it is important to separate the effects of advertising
contact, because customer affects marketer and marketer affect customers.
Advertising value is a measure for advertising efficiency. It is defined as “a subjective
estimation of the relative worth or utility of advertising to consumers” (Ducoffe, 1995).
Values are the foundation of actions, attitudes, and judgments in advertising as well as in
other aspects of social life (Beatty, Kahle, Homer & Shekar, 1985). “Advertising value
may be influenced by and influence both media and media vehicle context. For
advertisers, this suggests that by carefully selecting media that fit the communication
task at hand and media vehicles that precisely target the most interested potential
customers, they can enhance the value of their advertising” (Ducoffe, 1995). This aspect
is of high significance for m-advertising as an innovative marketing alternative.

2.4.4 Antecedents of Attitude toward Advertising via Mobile Devices

Advertising Value of Mobile Marketing

Advertising Value measure for effective and efficient advertising and it can assist as a
guide book for customer satisfaction. It’s an evaluation but of one side of utility of
advertising to consumers. Actions, feelings, thoughts and decision are the basis of
advertising. The effect of the advertising has noted to have obvious effect on the attitude

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of the public; it is hence found that the highly perceived value through cellular devices
also reflects positively on consumer actions towards products and services.
So the advertising via mobile devices is important factors that affect value for consumer.
According to Ducoffe (1995) the advertising information will decline with the repetition,
as a result the advertising value will decrease too, this is because the the customer will
get irritated and the information will be learned by public hence therefore decreasing the
value of advertising.

Consumer Attitude towards Privacy

As cellular phone are very private thing so the technology related to these devices are
consider very personal. So it might not be liked by the public, in many countries such as
Western European countries advertising via personal devices like telephone, cellular
phone and email is forbidden by law, unless and until the customer has allowed to receive
ads. Therefore via using this technology of m advertising privacy issue should be of
utmost importance.

2.5 Factors influencing mobile advertising

List of few factors effecting mobile advertising according to Mobile Advertising

Association of America (2007) are as follows:

2.5.1 Personal Nature of M-advertising

M-advertising is like personal selling with addition to it that mobile can be carry
anywhere and anytime to any place. Or in other word we can say that the cellular devices
are with consumer always.

2.5.2 Interactive Nature of M-advertising

The m-advertising is of highly interactive in nature that is parties can interact with each
other anytime and anywhere. And the customer can respond to the marketer by calling,
SMS, MMS or email. And if the ad is liked by the customer he can forward it to his or
her friend.

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2.5.3 Context Awareness of M-advertising
For example, m-adverts comprising video and music clips cannot be sent to mobile
phones which do not support them. Now, different mobile phone models and even the
same models may show an advert contrarily on the screen, depending on the phone's
software version. M-advertising can be associated to location, weather, and time, all of
which can be used in pointing adverts. For example, by using location awareness the m-
advertiser is able send an advert if the customer strolls by the retailer's shop. Moreover,
since people carry their devices with them almost all the time, m-advertising is an
extremely quick media.

2.5.4 Individuals' Media Goals

The type of objective the recipient is trying to achieve by using a mobile device also
influences his meting out of the advertisement. If his media goal is information, the
consumer will be more interested in ads that provide him with suitable information. The
features that make m-advertising a selected form of advertising has been discussed,
namely its personal and interactive nature, and the context awareness. Since m-
advertising is private, it sets new kinds of demands when planning advertising.

Now while keeping in mind how to plan m-advertising, there are two main choices to be
made when planning any advertising campaigns; to whom do we want to talk, i.e.
directing the advertisement? And what do we want to say to them? i.e. the advertising
content.

2.5.5 Targeting the Adverts

It is possible to target m-advertising if the retailer can make use of the user specific
information, which is added to the m-advertising service system. Firstly, each user, when
allowing the permission to send ads also fills in a user profile. Users also input presence
status that tells if the consumer is idle or ready to receive ads. All this can be done
straight from the user's mobile device. Secondly, the retailer may use prevailing data
from the company's Customer Relationship Management (CRM) database.

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Moreover, the content awareness allows retailers to target ads according to the local
climate. Depending on the time of the day, retailers can send m-adverts that attend to the
needs of consumers at a specific point in time. For pub and restaurant owners the time
range used together with weather conditions and location information, allows a range of
opportunities in providing the mobile users with m-ads that really accomplish their
information needs.

Although the number of possible receivers would be considerably smaller, a well-planned

execution of m-advertising can be more effective than, for example direct mail (which is
often left unopened) or television advertising (which is restricted by zapping). Based on
the personal information, the weather, the time of the day or week, and the location of the
consumer, the retailer can send adverts that match with the mobile user's personal
interests and mood status.

2.5.6 Advertising Content

By applying the information given by the consumer and/or information retrieved from the
company’s CRM databases, the marketer can also provide quick and well-timed
information, i.e. news that interests the receiver. Reading from mobile devices may take
additional time and effort than reading from a desktop computer. Humor and surprises in
the design of the advert creates positive approaches toward the ad and may lead to viral
marketing, especially amongst younger recipients. Also, the personal nature of the mobile
devices, as well as the context specificity and originality of m-advertising will lead
consumers towards high involvement. In such situations, the contrast affect appears to
stimulate consumers to process the advertising even more.

2.6 Characteristics of Mobile Advertising

According to Houston & Gassenheimer (1987), “good marketing management highlights
the constructing of long-term relationships. Mobile advertising can support these goals in
various ways, because it allows shared communication processes between marketer and
consumers.” According to Varshney & Vetter (2002), “in Japan, where wireless Internet
is already a reality, several portals are sending simple advertising messages to mobile

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phone users. As more wireless bandwidth will be available, content rich advertising
including audio, pictures and video clips can be produced for individual users with
specific needs, interests and inclinations” (Venkatesh et. al, 2003). It is therefore
presumed that mobile advertising will be also an important source of revenue for mobile
operators in the future (DeZoysa, 2002).

Haghirian et. al. (2005) opines that “associated to advertising via classical media and
Internet-based advertising, m-advertising has some unique features which enrich as well
as limit advertising opportunities for marketers. M-advertising provides possibility for
personalization, because mobile devices typically carry the user’s assigned identity” (Lee
& Benbasat, 2003). “If marketers use mobile devices for their advertising activities, they
can use consumer feedback to tailor their messages and offerings and collect information
about consumers’ preferences to advance future products and services” (Stewart &
Pavlou, 2002). Users are open to advertising that is personalized and related to their
lifestyle, states Reza Chady, the head of global market research at Nokia Networks
(DeZoysa, 2002).

The characteristic of personalization turns m-advertising into a very vital m-commerce

application, since it permits the usage of demographic information collected by wireless
service providers and information on the current location of a mobile user. Further than
personalization upon consumer’s feedback, the ability to locate consumers allows the
specific situation of a user to be measured. Consequently, advertising activities can be
modified to time and time-related items such as local events.

2.6.1. Personalization
According to Lee & Benbasat (2003), “M-advertising provides possibility for
personalization, because mobile devices typically carry the user’s assigned identity. If
marketers utilize mobile devices for their advertising activities, they can use consumer
feedback to tailor their messages and offerings and collect information about consumers’
preferences to advance future products and services” (Stewart & Pavlou, 2002).

BAHRIA UNIVERSITY, ISLAMABAD 21

2.6.2. Interactivity
“Consumer-marketer matters are communications in which actors are trying to fulfill
their goals. M-advertising activities increase the possibilities of communication, since
they allow an instant and direct feedback from the consumer. Similarly to Internet-based
advertising, m-advertising can respond very fast to customers’ feedback.”

2.7 Limitations of Mobile Advertising

2.7.1 Usability
Usability of mobile services and technology is one of the major impediments marketing
managers need to overcome in the future.

2.7.2 Technological Limitations

“The main difference between mobile and desktop computer-based features is the size of
the screen of the mobile device (Lee & Benbasat, 2003). This seems to be one of the most
difficult obstacles to overcome when applying advertising to mobile devices, because the
scope for design of advertised messages is much more limited. There are also some
differences, such as display format and color display, that root limited scope of design.
Additionally, mobile devices are also limited in computational power, memory, and
battery life.”

2.9.7 Market Diversity

The Pakistan market pretenses certain exceptional tests for the advertisers in many
respects. There are massive divisions in the economic, social, cultural, regional,
language, religious, and traditions in the different segments of the society. The consumer
profile is so broad among the different sections of the society that a single marketing
strategy is hardly effective compared to the developed countries which speak one
common language and none of these traditional trappings. Internationally accepted
advertisement concepts remain hardly effective in Pakistan due to the psyche of the
people.

BAHRIA UNIVERSITY, ISLAMABAD 22

CHAPTER 3
FINDINGS AND ANALYSIS

Before analysis of the report, it is necessary to keep in mind that mobile advertising till
this point in time in every kind of market is being used as additional advertising
campaign and it is not being run as completely separate campaign. The companies using
mobile advertising haven’t devices single campaign solely for mobile phones but they are
running a main campaign through electronic media and in order to support the message
mobile advertising is being used.

Looking at the availability of service; MMS service was started in December 2005. At
this point this service is in its expansion stages. An MMS interconnection service was
being unveiled by Warid Telecom, Telenor and Ufone; three GSM network operators in
Pakistan, enabling subscribers of each company to exchange MMS messages with each
other, without incurring interconnect charges.

Looking at the volume of the usage of this service, Warid said MMS was at that time the
fastest growing value added service and was expected to have the same growth rate in
Pakistan as SMS experienced. However, this is to be remembered that SMS service was
introduced in Pakistan by Mobilink in year 1998 and took almost nine years to be at the
place at which it is the mostly used value added service in Pakistan. MMS will certainly
take less time to develop as it is based on the same technology as SMS.

There are no precise figures available to the volume and usage of the MMS, SMS.
However the mobile phones being used are an indication of the fact that how much
people have the access to all these services. All the users of mobile phones have access to
SMS services, however, the accessibility to MMS services is reliant upon the mobile
phones and phones which support such services are much expensive.

BAHRIA UNIVERSITY, ISLAMABAD 23

There are almost 90 million mobile phone users in Pakistan and according to Pakistan
Telecommunication Authority (PTA), telecommunication sector of Pakistan is the fastest
growing sector in Pakistan and also the growth among this sector is fastest as compared
to other South Asian markets. In this regard SMS service is heavily used by the
customers specially the younger people from the age of 18 to 35 years of age.

The telecommunication sector is regulated by Pakistan Telecommunication Authority

(PTA) and it has not yet defined any regulatory policy for the mobile advertising sector.
Hence this will be door for the investors to capitalize upon. Since there are no regulations
hence the costing to advertiser is mainly based on the contracts between advertiser,
agency and the network operators. The revenue is collected on the basis of these
agreements. Also another factor for the collection of revenues is based on the factor that
it depends upon the number of customers to whom the SMS is delivered.

Comparing with the international situation, the SMS advertising is taking over M-
advertising scene due to very low cost associated for customers and advertising agencies
are benefiting from it due to the volume of advertising they are catering to. The SMS
advertising world wide is used as a supplementary advertising service for the print and
electronic campaigns for the advertisers.

These factors are also prevailing in Pakistani Market. There is a large customer base
removing the constraint of volume. Also mobile advertising for SMS services is provided
at a micro level as an additional for the advertiser. So although the cost for operating M-
advertising is high at this point but it is a good source of revenue for the advertising
agencies especially in an environment where growth rate is phenomenal in customer base
and average spending per person is raising every year.

BAHRIA UNIVERSITY, ISLAMABAD 24

3.1 Data Analysis
SPSS 13.0 for Windows were used to analyze data. The data analysis was done through
Frequency Distribution and Cross Tabulation. The results are as follows:

3.2 Results of Consumers Questionnaire

3.2.1 Frequency Distribution Analysis

Table 3.1: Age of respondents

Cumulative
Frequency Percent Valid Percent Percent
Valid 15-20 44 22.0 22.0 22.0
21-25 111 55.5 55.5 77.5
26-30 15 7.5 7.5 85.0
31-35 10 5.0 5.0 90.0
36-40 6 3.0 3.0 93.0
41-45 7 3.5 3.5 96.5
46-50 3 1.5 1.5 98.0
Above 50 4 2.0 2.0 100.0
Total 200 100.0 100.0

Almost 55.5% of the respondents belonged to the age group of 21 to 35 years

and approximately 22% of the respondents belonged to the age group of more than 15 to
20 years which shows that most of the respondents are young people.

Table 3.2: Gender of respondents

Cumulative
Frequency Percent Valid Percent Percent
Valid Male 119 59.5 59.5 59.5
Female 81 40.5 40.5 100.0
Total 200 100.0 100.0

The above table shows that 59.5% of the respondents were males and 40.5% were
females.

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 Table 3.3: Occupation of respondents

Cumulative
Frequency Percent Valid Percent Percent
Valid Student 147 73.5 73.5 73.5
Teacher 12 6.0 6.0 79.5
University employee 11 5.5 5.5 85.0
Advocate 3 1.5 1.5 86.5
Private sector employee 6 3.0 3.0 89.5
Radio anchor 4 2.0 2.0 91.5
Nurse 5 2.5 2.5 94.0
Housewife 7 3.5 3.5 97.5
Business man 5 2.5 2.5 100.0
Total 200 100.0 100.0

In terms of the respondents employment and occupation, 6% work as teachers in

universities, 3% work in private companies, and 73.5% are students. 1.5% is advocates,
2% are radio anchors, 2.5% are nurses from different hospitals, 3.5% are housewives,
and 2.5% are businessman. The result shows that most of the respondents were young
educated people of Islamabad.

Table 3.4: Respondent’s frequency of watching TV

Cumulative
Frequency Percent Valid Percent Percent
Valid 2-3 hours 54 27.0 27.1 27.1
4-5 hours 41 20.5 20.6 47.7
More than 5 hours 21 10.5 10.6 58.3
Less than 2hours 83 41.5 41.7 100.0
Total 199 99.5 100.0
Missing System 1 .5
Total 200 100.0

Of all the 200 respondents, 41.5% watch T.V. less than 2 hours a day, 27% watch
T.V. 2 to 3 hours a day, 21% watch T.V. 4 to 5 hours a day, and only 10.5% watch T.V.
more than 5 hours a day. Those who watch T.V. for more than 4 hours are considered as
heavy viewers, so only 10.6% of respondents turned to be heavy viewers. The result
shows that the frequency of watching T.V. is not much. From here it can be concluded

BAHRIA UNIVERSITY, ISLAMABAD 26

that if the respondent frequency of watching T.V. is less, than the advertisements shown
on T.V. will also be ignored because if they don’t watch T.V. so the advertisement shown
on the T.V. will have no impact on the consumers as only 10% of the respondents watch
T.V. more than 5 hours a day.

Table 3.5: Respondent’s frequency of watching ads or switching

Cumulative
Frequency Percent Valid Percent Percent
Valid YES I do watch
114 57.0 57.3 57.3
Advertisements
NO I switch to
85 42.5 42.7 100.0
Other channels
Total 199 99.5 100.0
Missing System 1 .5
Total 200 100.0

Almost 57% of the respondents watch advertisements while watching T.V. and 42.5%
switch to other channels. This shows the propensity of respondents to watch
advertisements is quite frequent.

Table 3.6: Respondent’s ads preference

Cumulative
Frequency Percent Valid Percent Percent
Valid Short duration 122 61.0 61.9 61.9
Long duration 15 7.5 7.6 69.5
Short with gimmicks
51 25.5 25.9 95.4
and animations
Long with gimmicks
9 4.5 4.6 100.0
and animations
Total 197 98.5 100.0
Missing System 3 1.5
Total 200 100.0

The result of the survey of “Which type of advertisements do people prefer” shows that a
large majority of respondents (61.9%) watch short duration advertisements on the T.V.,
which results in that SMS ads will be preferred by the mobile users. Whereas only 7.6%

BAHRIA UNIVERSITY, ISLAMABAD 27

watch long duration advertisements. And 25.5% watch short duration with gimmicks and
animations. Very few respondents (4.6%) prefer long duration with gimmicks and
animations.

Table 3.7: Respondent’s access to mobile

Cumulative
Frequency Percent Valid Percent Percent
Valid YES 182 91.0 91.0 91.0
NO 18 9.0 9.0 100.0
Total 200 100.0 100.0

The table shows that almost all the respondents i.e. 91% have access to mobile phone.

Table 3.8: Cell phone services available to respondents

Cumulative
Frequency Percent Valid Percent Percent
Valid SMS 136 68.0 69.4 69.4
MMS 60 30.0 30.6 100.0
Total 196 98.0 100.0
Missing System 4 2.0
Total 200 100.0

Of all the 200 respondents, SMS service is available to 68% people and MMS services
are available to only 30%. The result shows that SMS ads will be more successful than
MMS as the MMS technology is not available on all the cell phones.

Table 3.9: Respondent’s frequency of using mobile services

Cumulative
Frequency Percent Valid Percent Percent
Valid SMS 180 90.0 91.8 91.8
MMS 16 8.0 8.2 100.0
Total 196 98.0 100.0
Missing System 4 2.0
Total 200 100.0

BAHRIA UNIVERSITY, ISLAMABAD 28

The result of the survey of “Which services (SMS or MMS) are more frequently used”
shows that a large majority of respondents i.e. 90% use SMS services while only 8% use
MMS services.

Table 3.10: Respondent’s awareness of mobile ads

Cumulative
Frequency Percent Valid Percent Percent
Valid YES 155 77.5 77.5 77.5
NO 45 22.5 22.5 100.0
Total 200 100.0 100.0

Of all the 200 respondents, only 22.5% respondents were not aware of Mobile
Advertisements while the remaining 77.5% were aware of it.

Table 3.11: Respondent’s response of “mobile ads are a source of timely information”

Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 44 22.0 22.3 22.3
Agree 92 46.0 46.7 69.0
Neither agree nor
33 16.5 16.8 85.8
disagree
Disagree 17 8.5 8.6 94.4
Strongly disagree 11 5.5 5.6 100.0
Total 197 98.5 100.0
Missing System 3 1.5
Total 200 100.0

The result shows that 46% of respondents agree that mobile advertisements will be a
source of timely information. 22% respondents strongly agree, 16.5% neither agree nor
disagree, and only 8.5% disagree. The conclusion drawn here is that almost all the
respondents agree that mobile advertisements will provide them with the information at
the right time.

BAHRIA UNIVERSITY, ISLAMABAD 29

 Table 3.12: Respondent’s preference of mobile ads

Cumulative
Frequency Percent Valid Percent Percent
Valid SMS 126 63.0 66.7 66.7
MMS 63 31.5 33.3 100.0
Total 189 94.5 100.0
Missing System 11 5.5
Total 200 100.0

In terms of the respondents preference of advertisements (SMS or MMS) 63% prefer

SMS ads while only 31.5% prefer MMS ads.

Table 3.13: Respondent’s frequency of receiving ads

Cumulative
Frequency Percent Valid Percent Percent
Valid 1 message a day 86 43.0 45.5 45.5
2 messages a day 54 27.0 28.6 74.1
3 messages a day 30 15.0 15.9 89.9
4 messages a day 19 9.5 10.1 100.0
Total 189 94.5 100.0
Missing System 11 5.5
Total 200 100.0

Of all the 200 respondents, only 9.5% choose to receive 4 messages a day while 45.5%
prefer only 1 message a day. So it can be concluded that the respondents will find it
disturbing to receive more than 2 messages day.

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 Table 3.14: Respondent’s reaction when receive m-ads

Cumulative
Frequency Percent Valid Percent Percent
Valid Ignore it completely 33 16.5 16.6 16.6
Read it occasionally 78 39.0 39.2 55.8
Read it after accumulating
10 5.0 5.0 60.8
too many of them
Read it when you get time 37 18.5 18.6 79.4
Read it right away 41 20.5 20.6 100.0
Total 199 99.5 100.0
Missing System 1 .5
Total 200 100.0

The result of the survey of “reaction of the respondents on receiving the ads” shows that
39% will read the advertising message occasionally, and 20% will read it right away.
16.5% will ignore it completely. The conclusion drawn here is that only a few
respondents will ignore the message while many of the respondents will read it not right
away but will read it once they get it.

Table 3.15: Respondent’s message receiving time

Cumulative
Frequency Percent Valid Percent Percent
Valid Morning 26 13.0 13.8 13.8
Noon 20 10.0 10.6 24.3
Afternoon 30 15.0 15.9 40.2
Evening 113 56.5 59.8 100.0
Total 189 94.5 100.0
Missing System 11 5.5
Total 200 100.0

Almost half of the respondents i.e. 56.5% prefer to receive mobile ads in evening time.
And only 10% prefer them at noon. This shows that the best time to send the advertising
message is evening.

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 Table 3.16: Mobile ads impact on respondents

Cumulative
Frequency Percent Valid Percent Percent
Valid Disturbing privacy 65 32.5 32.8 32.8
Make purchase
65 32.5 32.8 65.7
convenient
More exposure 68 34.0 34.3 100.0
Total 198 99.0 100.0
Missing System 2 1.0
Total 200 100.0

In terms of the respondents reaction towards the impact of m-ads on the personal life of
the receiver shows that 34% agree that it is source for providing them with information
which results in more exposure. Only a few respondents say that it can be a cause of
disturbing the privacy. 32.5% respondents respond that it will make purchase convenient
as the consumer can immediately reply to the advertised message.

Table 3.17: Respondent’s response to “mobile ads are irritating”

Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 55 27.5 27.6 27.6
Agree 80 40.0 40.2 67.8
Neither agree nor
42 21.0 21.1 88.9
disagree
Disagree 18 9.0 9.0 98.0
Strongly disagree 4 2.0 2.0 100.0
Total 199 99.5 100.0
Missing System 1 .5
Total 200 100.0

40% of the respondents agree that mobile advertisements can be irritating at times. 9%
disagree and 2% strongly disagree. 27.5% strongly agree. It can be concluded that almost
half of the respondents agree that m-advertisements are annoying.

BAHRIA UNIVERSITY, ISLAMABAD 32

 Table 3.18: Respondent’s response for “getting incentives for receiving ads”

Cumulative
Frequency Percent Valid Percent Percent
Valid Strongly agree 40 20.0 20.2 20.2
Agree 102 51.0 51.5 71.7
Neither agree nor
41 20.5 20.7 92.4
disagree
Disagree 11 5.5 5.6 98.0
Strongly disagree 4 2.0 2.0 100.0
Total 198 99.0 100.0
Missing System 2 1.0
Total 200 100.0

The result of the survey of “Providing incentives for receiving mobile advertisements can
affect consumer intentions to receive mobile advertisements” shows that 51% agree with
the statement. 2% strongly disagree and 20% strongly agree to it. Almost half of the
respondents agree that if they are provided with some incentives then they will prefer to
receive the m-advertisements.

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3.2.2 Cross Tabulation Analysis

Table 3.19: Cross Tabulation between age of the respondents and their preference of ads

age * preferableads Crosstabulation

preferableads
short with long with
gimmicks and gimmicks and
short duration long duration animations animations Total
age 15-20 Count 29 3 10 2 44
% within age 65.9% 6.8% 22.7% 4.5% 100.0%
21-25 Count 64 9 34 4 111
% within age 57.7% 8.1% 30.6% 3.6% 100.0%
26-30 Count 12 0 3 0 15
% within age 80.0% .0% 20.0% .0% 100.0%
31-35 Count 6 2 0 1 9
% within age 66.7% 22.2% .0% 11.1% 100.0%
36-40 Count 2 0 2 1 5
% within age 40.0% .0% 40.0% 20.0% 100.0%
41-45 Count 4 1 0 1 6
% within age 66.7% 16.7% .0% 16.7% 100.0%
46-50 Count 2 0 1 0 3
% within age 66.7% .0% 33.3% .0% 100.0%
above 50 Count 3 0 1 0 4
% within age 75.0% .0% 25.0% .0% 100.0%
Total Count 122 15 51 9 197
% within age 61.9% 7.6% 25.9% 4.6% 100.0%

The above table shows the cross tabulation between age and preferred advertisements. It
shows that what types of ads are preferred by the respondents according to their age. The
result shows that most of the respondents almost from all the age groups like watching
short duration advertisements. Only a few respondents aging 36-40 like long
advertisements with gimmicks and animations. This can be concluded that SMS
advertisements will be preferred by all the respondents and MMS advertisements will
only be preferred by respondents aging from 36-40 as they like advertisements that are
long with gimmicks and animations.

Table 3.20: Cross Tabulation between age of the respondent and their frequency of watching TV

BAHRIA UNIVERSITY, ISLAMABAD 34

 age * frequencywatchTV Crosstabulation

frequencywatchTV
more than less than
2-3 hours 4-5 hours 5 hours 2 hours Total
age 15-20 Count 12 12 4 16 44
% within age 27.3% 27.3% 9.1% 36.4% 100.0%
21-25 Count 31 16 13 51 111
% within age 27.9% 14.4% 11.7% 45.9% 100.0%
26-30 Count 2 5 1 7 15
% within age 13.3% 33.3% 6.7% 46.7% 100.0%
31-35 Count 2 2 1 4 9
% within age 22.2% 22.2% 11.1% 44.4% 100.0%
36-40 Count 1 1 2 2 6
% within age 16.7% 16.7% 33.3% 33.3% 100.0%
41-45 Count 4 3 0 0 7
% within age 57.1% 42.9% .0% .0% 100.0%
46-50 Count 1 1 0 1 3
% within age 33.3% 33.3% .0% 33.3% 100.0%
above 50 Count 1 1 0 2 4
% within age 25.0% 25.0% .0% 50.0% 100.0%
Total Count 54 41 21 83 199
% within age 27.1% 20.6% 10.6% 41.7% 100.0%

The above table shows the cross tabulation between age and frequency of watching T.V.
The result shows that mostly young people aging from 15 to 30 and above 50 watch less
T.V. i.e. less than 2 hours a day. The m-ads can be targeted towards these two extremes
i.e. the young aging from 15 to 30 and people above 50. The respondents aging from 36
to 40 watch T.V. more than 5 hours a day which shows that they are heavy viewers of
T.V. and will not be the target for m-ads.

Table 3.21: Cross Tabulation between respondent’s gender and mobile ads are irritating

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 Mobile ads are irritating
Neither
Strongly Agree nor Strongly
Agree Agree Disagree Disagree Disagree Total
Gender Male Count 31 50 26 11 1 119
% within
26.1% 42.0% 21.8% 9.2% .8% 100.0%
Gender
Female Count 24 30 16 7 3 80
% within
30.0% 37.5% 20.0% 8.8% 3.8% 100.0%
Gender
Total Count 55 80 42 18 4 199
% within
27.6% 40.2% 21.1% 9.0% 2.0% 100.0%
Gender

The above table shows the cross tabulation between gender and the irritating content of
m-ads. The result shows that 42% male respondents agree that mobile ads are irritating
and 37.5% of the female respondents also agree. When compared the above table shows
that mostly male respondents find m-ads more irritating than female respondents.

Table 3.22: Cross Tabulation between ages of the respondent and watch TV ads or Switch

BAHRIA UNIVERSITY, ISLAMABAD 36

 age * watchadsorswitch Crosstabulation

watchadsorswitch
YES I do
watch NO I switch
advertise to other
ments channels Total
age 15-20 Count 28 16 44
% within age 63.6% 36.4% 100.0%
21-25 Count 68 43 111
% within age 61.3% 38.7% 100.0%
26-30 Count 5 10 15
% within age 33.3% 66.7% 100.0%
31-35 Count 5 4 9
% within age 55.6% 44.4% 100.0%
36-40 Count 3 3 6
% within age 50.0% 50.0% 100.0%
41-45 Count 4 3 7
% within age 57.1% 42.9% 100.0%
46-50 Count 1 2 3
% within age 33.3% 66.7% 100.0%
above 50 Count 0 4 4
% within age .0% 100.0% 100.0%
Total Count 114 85 199
% within age 57.3% 42.7% 100.0%

The above table shows the cross tabulation between age and frequency of watching ads
on T.V. or switching to other channels during commercial breaks. The result shows that
mostly respondents aging from 15 to 25 watch ads and respondents aging 26 to 30 and
above 50 switch to other channels. Hence it is concluded that young respondents like
watching ads on the T.V. and they will prefer receiving m-ads too.

Table 3.23: Cross Tabulation between respondent’s gender and preference of ads

BAHRIA UNIVERSITY, ISLAMABAD 37

 preferable ads
long with
short with gimmicks
short long gimmicks and and
duration duration animations animations Total
gender male 79 6 25 6 116
68.1% 5.2% 21.6% 5.2% 100.0%
female 43 9 26 3 81
53.1% 11.1% 32.1% 3.7% 100.0%
Total 122 15 51 9 197
61.9% 7.6% 25.9% 4.6% 100.0%

The above table shows the cross tabulation between gender and their preference of ads on
T.V. The result shows that both the male and female respondents prefer short duration
ads. This means that if they are willing to receive m-ads so they will prefer SMS ads.
While some females also prefer long duration with gimmicks and animations, so it can be
concluded that MMS ads will be preferred more by the female population.

Table 3.24: Cross Tabulation between respondent’s gender and frequency of watching TV

Frequency of watching TV
More than Less than
2-3 hours 4-5 hours 5 hours 2 hours Total
Gender Male Count 34 22 10 52 118
% within gender 28.8% 18.6% 8.5% 44.1% 100.0%
Female Count 20 19 11 31 81
% within gender 24.7% 23.5% 13.6% 38.3% 100.0%
Total Count 54 41 21 83 199
% within gender 27.1% 20.6% 10.6% 41.7% 100.0%

The above table shows the cross tabulation between gender and their frequency of
watching T.V. the table shows that the 13.6% females are heavy viewers of T.V. as they
watch T.V. more than 5 hours a day. Mostly the male respondents are less viewers of
T.V. as only 44.1% male’s watch T.V. less than 2 hours a day.

BAHRIA UNIVERSITY, ISLAMABAD 38

Table 3.25: Cross Tabulation between respondent’s gender &mobile ads source of timely information

mobile ads source of timely information

neither
strongly agree nor strongly
agree agree disagree disagree disagree Total
gender male 25 60 15 9 8 117
21.4% 51.3% 12.8% 7.7% 6.8% 100.0%
female 19 32 18 8 3 80
23.8% 40.0% 22.5% 10.0% 3.8% 100.0%
Total 44 92 33 17 11 197
22.3% 46.7% 16.8% 8.6% 5.6% 100.0%

The above table shows the cross tabulation between gender and their attitude towards m-
ads whether it is a source for timely information or not. The results show that 40% female
respondents agree with it and 51.3% male respondents also agree that it provides timely
information. Hence it can be concluded that both the males and females agree that m-ads
will be a good source for providing timely information. As only 3.8% female and 6.8%
male strongly disagree with it.

Table 3.26: Cross Tabulation between respondent’s gender and providing incentives for receiving
mobile advertisements can affect consumer intentions to receive ads

Incentives for receiving ads

Neither
Strongly Agree nor Strongly
Agree Agree Disagree Disagree Disagree Total
Gender Male 25 54 28 8 3 118
21.2% 45.8% 23.7% 6.8% 2.5% 100%
Female 15 48 13 3 1 80
18.8% 60.0% 16.3% 3.8% 1.3% 100%
Total 40 102 41 11 4 198
20.2% 51.5% 20.7% 5.6% 2.0% 100%

BAHRIA UNIVERSITY, ISLAMABAD 39

The above table shows the cross tabulation between gender and their attitude towards m-
advertisements providing incentives. 60% respondents that agreed that providing
incentives for receiving m-advertisements can affect consumer intentions to receive
mobile advertisements were females. 45.8% males also agree with this statement. The
overall result is that the respondents think that providing incentives will have an impact
on the consumers as only 2.5% males and 1.3% female disagrees with it.

Table 3.27: Cross Tabulation between respondent’s occupation and time of receiving m-ads

BAHRIA UNIVERSITY, ISLAMABAD 40

 at what time of the day would you like to
receive the advertisement
morning noon afternoon evening Total
occupation student 22 12 22 88 144
15.3% 8.3% 15.3% 61.1% 100%
teacher 2 2 0 5 9
22.2% 22.2% .0% 55.6% 100%
university employee 0 2 0 7 9
.0% 22.2% .0% 77.8% 100%
advocate 1 0 0 1 2
50.0% .0% .0% 50.0% 100%
private sector emplyee 0 0 2 3 5
.0% .0% 40.0% 60.0% 100%
radio anchor 0 0 0 4 4
.0% .0% .0% 100.0% 100%
nurse 1 1 1 2 5
20.0% 20.0% 20.0% 40.0% 100%
housewife 0 1 4 2 7
.0% 14.3% 57.1% 28.6% 100%
business man 0 2 1 1 4
.0% 50.0% 25.0% 25.0% 100%
Total 26 20 30 113 189
13.8% 10.6% 15.9% 59.8% 100%

The above table shows the cross tabulation between occupation and the m-advertisement
receiving time. The result show that 55.6% teachers, 60 % private companies
employees, 61% students, 50% advocates, 100% radio anchors, 40% nurses from
different hospitals, and 28.6% housewives are willing to receive the ads at evening time
while only 50% businessman are willing to receive the ads at noon. The overall result
shows that all those who are willing to receive the ads at evening time are busy in their
own professions from morning till afternoon so that is why they want the advertisements
to be received in the afternoon so they will have time to read the advertisements. Only the
businessmen are willing to receive the ads at noon because they are the people who are
mostly busy from noon till the evening.

Table 3.28: Cross Tabulation between respondent’s gender and preference of m-ads

BAHRIA UNIVERSITY, ISLAMABAD 41

 What type of
Advertisements would
you prefer
SMS MMS Total
Gender Male Count 81 30 111
% within gender 73.0% 27.0% 100.0%
Female Count 45 33 78
% within gender 57.7% 42.3% 100.0%
Total Count 126 63 189
% within gender 66.7% 33.3% 100.0%

The above table shows the cross tabulation between gender and what type of
advertisements (SMS or MMS) would they prefer. The result shows that 73% male and
57.7% female prefer SMS advertisements. And only a few respondents prefer MMS
advertisements. One of the reasons behind this liking can be that not all the mobile users
have the access to MMS technology so that is the reason why most of the respondents
favor SMS advertisements.

3.3 Results of Company Questionnaire

3.3.1 Frequencies Distribution Analysis

Table 3.29: Types of Company

Cumulative
Percent Percent
Valid bank 9.1 9.1
telecom industry 27.3 36.4
restaurant 27.3 63.6
oil refinery 9.1 72.7
food and beverages 9.1 81.8
educational institution 9.1 90.9

BAHRIA UNIVERSITY, ISLAMABAD 42

 Spa and beauty saloon 9.1 100.0
Total 100.0

Most of the respondents were from telecom industry and restaurants. Other companies
were banks, educational institutions, food and beverages and beauty saloons.

Table 3.30: Respondents satisfied with cost of advertising mediums

Cumulative
Percent Percent
Valid highly satisfied 54.5 54.5
Satisfied 45.5 100.0
Total 100.0

Almost all the respondents are satisfied with the current advertising mediums that they
are utilizing in terms of its cost. The result shows that 54.5% that is half of the
respondents are highly satisfied.

Table 3.31: Respondents satisfied with impact of current advertising mediums

Cumulative
Percent Percent
Valid highly satisfied 27.3 27.3
satisfied 63.6 90.9
neither satisfied
9.1 100.0
nor dissatisfied
Total 100.0

Almost all the respondents are satisfied with the current advertising mediums that they
are utilizing in terms of its impact on the customers. The result shows that 63.6% that is
more than half of the respondents are satisfied. Only 9.1% are neither satisfied nor
dissatisfied. The result shows that almost all the companies are satisfied and there is no
such company who is not satisfied with the current advertising mediums.

BAHRIA UNIVERSITY, ISLAMABAD 43

Table 3.32: Respondent’s mobile ad awareness

Cumulative
Percent Percent
Valid YES 100.0 100.0

The result shows that all the respondents are aware of m-advertising.

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Table 3.33: Respondent’s response of “mobile good source of promotion”

Cumulative
Percent Percent
Valid strongly agree 45.5 45.5
agree 45.5 90.9
neither agree nor
9.1 100.0
disagree
Total 100.0

The result of the survey of “whether m-advertising is a good source for promoting a
product” shows that almost 45.5% respondent’s responded in a positive way. They are of
the opinion that mobile should be used as a source for promoting product and service.

Table 3.34: Respondent’s response of using mobile for promoting product

Cumulative
Percent Percent
Valid surely 90.9 90.9
may not 9.1 100.0
Total 100.0

Of all the respondents, only 9.1% choose not to use mobile for promoting their product.
However the remaining 90% are willing to use mobile for promotion. Hence it can be
concluded that if this technology is made available so it will be utilized by many
companies.

Table 3.35: Respondent’s ads preference

Cumulative
Percent Percent
Valid SMS 9.1 9.1
BOTH 90.9 100.0
Total 100.0

BAHRIA UNIVERSITY, ISLAMABAD 45

90% of the respondents prefer to use both SMS and MMS for advertising their product.
While only 9.1% are of the view that SMS will be more practical.

3.3.2 Cross Tabulation Analysis

Table 3.36: Cross Tabulation between type of company and use of mobile for promoting product

Make use of mobile

phone for promoting
the product
Surely May not Total
Type of Bank 1 0 1
the 10.0% .0% 9.1%
Company Telecom industry 3 0 3
30.0% .0% 27.3%
Restaurant 3 0 3
30.0% .0% 27.3%
Oil refinery 1 0 1
10.0% .0% 9.1%
Food and beverages 1 0 1
10.0% .0% 9.1%
Educational institution 1 0 1
10.0% .0% 9.1%
Spa and beauty saloon 0 1 1
.0% 100.0% 9.1%
Total 10 1 11
100.0% 100.0% 100.0%

The above table shows the cross tabulation between type of the company and their
attitude towards using mobile for promotion of their product or not. All the respondents
are “surely” willing of utilizing this opportunity. Standard Chartered Bank already uses
m-advertising. For all the other companies that are willing to promote their products via
mobile this tool of advertising should be introduced for them. There is a chance that m-
advertising will be successful in Pakistan as well as is in the other nations. The spa’s and
beauty saloons opposes m-advertising. As it is a gender driven business so it contains
some privacy reasons and they don’t want to consume this opportunity.

BAHRIA UNIVERSITY, ISLAMABAD 46

Table 3.37: Cross Tabulation between types of company and preference of m-ads

Type of advertisements
prefered for promotion of
the product via mobile
SMS BOTH Total
Type of Bank 0 1 1
the .0% 10.0% 9.1%
Company Telecom industry 0 3 3
.0% 30.0% 27.3%
Restaurant 0 3 3
.0% 30.0% 27.3%
Oil refinery 0 1 1
.0% 10.0% 9.1%
Food and beverages 0 1 1
.0% 10.0% 9.1%
Educational institution 1 0 1
100.0% .0% 9.1%
Spa and beauty saloon 0 1 1
.0% 10.0% 9.1%
Total 1 10 11
100.0% 100.0% 100.0%

The above table shows the cross tabulation between type of the company and their
preference of ads, SMS, MMS or both. All the companies responded that they will make
use of both SMS and MMS. Only one of the companies which works for the promotion
of education and provides scholarships for students is of the opinion that SMS will be
utilized for promotion. The reason is that mostly MMS are for those companies who want
the customers to view the products that they are offering but for the educational
institutions they don’t need to send MMS as they can work out only with SMS that is text
based messages.

BAHRIA UNIVERSITY, ISLAMABAD 47

Chapter 4

DISCUSSION

The results from the data collected from the customers and companies have been
discussed separately as given below:

Overall, the result from the customers suggests that the participants have positive
attitudes mobile advertising. The respondents are of the opinion that mobile advertising
poses some security problems. Most of the respondent’s frequency of watching T.V. is
less, so the advertisements shown on T.V. will also be ignored because if they don’t
watch T.V. so the advertisement shown on the T.V. will have no impact on the
consumers. A large majority of respondents watch short duration advertisements on the
T.V., which results in that SMS ads will be preferred by the mobile users. SMS ads will
be more successful than MMS as the MMS technology is not available on all the cell
phones. Almost all the respondents agree that mobile advertisements will provide them
with the information at the right time. The respondents prefer to receive only 1 message a
day. So it can be concluded that the respondents will find it disturbing to receive more
than 2 messages day. Only a few respondents will ignore the message while many of the
respondents will read it not right away but will read it when they get it. The results also
show that the best time to send the advertising message is evening. Almost all the
respondents agreed that it is source for providing them with information which results in
more exposure and makes purchasing easier and convenient. Some respondents are of the
view that m-advertisements are annoying at times. Young people were more tolerant
toward mobile advertising than elder people, so the message might not irritate them a lot
while comparing with older people. Respondents agreed that if they are provided with
some incentives then they will prefer to receive the m-advertisements. The use of
incentives shows a strong correlation to motivate m-advertising acceptance. Marketers
may consider offering various combinations of incentives to motivate the consumers.

BAHRIA UNIVERSITY, ISLAMABAD 48

The results from the companies suggest that respondents have positive attitudes mobile
advertising. Despite the fact that all the respondents are satisfied with the current
advertisements mediums that they are currently utilizing in terms of costs and its impact
on the consumers, they still welcome more and more promotion mediums like m-
advertising. The companies have positive attitude towards utilizing m-advertising for
promoting their products, as all the respondents strongly agree that m-advertising is a
good source of promoting a product or service. They are of the opinion that both the SMS
and MMS both will be used for advertising the products as MMS makes the message
more attractive so there is a chance that the customer will view it. “Standard Chartered
Bank” already uses m-advertising for promotion.

The only company that opposes m-advertising is “Solitude Day Spa”. The owner
declared that m-advertising cannot be successful in the beauty saloon industry in
Pakistan. As it is a gender driven business so it contains some privacy reasons. The
owner states that it is not wise to use m-advertising in a culture like Islamabad where
people are not aware of the spa industry. Many women in Islamabad have mobile phones
that are not registered by their own names. So it will be very difficult to create a database
of the clients which will be helpful in using m-advertising. These are the reasons the
owner confirm might become the hurdles in the success of m-advertising for beauty
saloons and spa’s in a conservative culture like Islamabad.

BAHRIA UNIVERSITY, ISLAMABAD 49

CHAPTER 5
CONCLUSION AND FUTURE RESEARCH

5.1 Conclusion

Based on the findings of the data collected from both customers and companies it can be
concluded that the Mobile advertising has a great potential of being used and accepted by
the consumers and many companies in Islamabad. After the research the respondents
responded in a positive manner towards m-advertising. The consumers are willing to
receive m-advertisements. Some people feel that m-advertisements can be irritating and
disturbing at times. But many are of the opinion that m-advertisements will provide them
with the information, will give them more exposure to the market and will make
purchasing convenient too.

Companies find it very easy and convenient source of advertising. All the companies are
satisfied with the current advertising mediums that they are utilizing in terms of cost and
its impact on the consumers, but still they welcome new and unique ways of advertising
their products. They are of the opinion that both SMS and MMS will be used for
advertising if m-advertising is integrated with the current advertising mediums. Many
people strongly agree that providing incentives for receiving mobile advertisements can
affect consumer intentions to receive mobile advertisements. So keeping in mind this the
companies should provide the customers with some incentives so they will be willing to
receive the m-advertisements.

More than 90% of the young population of Islamabad has access to mobile phones and
the growth of using mobile phone is increasing day by day. These are the people who can
be targeted. The company’s especially those who are targeting the young audience
should take this opportunity of advertising via mobile as it will have a great impact on the
consumers.

BAHRIA UNIVERSITY, ISLAMABAD 50

Mobile advertising has been started recently which is in its infant stage. Also the type of
mobile phones being used in Pakistani market does not support MMS services as in the
other parts of the world where most of the m-advertising is done through sending MMS.
However market is changing its shape and newer and cheaper mobile phones are being
introduced in the market which makes MMS advertising a perspective venture for the
future. The mobile phones being used are an indication of the fact that how much people
have the access to all these services and how much they are welcoming m-advertising.
All the users of mobile phones have access to SMS services, which makes it easier for
advertisers to take advantage of this scenario and start using m-advertising as a tool for
promoting their products. The use of incentives shows a strong correlation to motivate
cell phone advertising acceptance. Marketers may consider offering various combinations
of incentives.

The other conclusions drawn are that the people of Pakistan are welcoming newer
technologies. The advertisers are using new and unique ways of advertising their
products. So m-advertising will also be a success in the Pakistani competitive market
environment.

Mobile phone is a new direct marketing device that provides direct access to
consumers and interacts with them in a very personal way. It can be used for attractive
and efficient marketing. The mobile advertising, mobile Internet, mobile banking and
mobile entertainment services are growing in the world and in Pakistan it should also be
introduced. GSM operators and retailers should benefit from these mobile marketing
tools.

M-advertising will become fully utilized when managers see m-advertising as an

essential part of advertising portfolio that should be included in the future plans and
budgets of every company wanting to survive the interlinked m-commerce era. Overall, it
is clear that mobile advertising is going to be the future trend.

BAHRIA UNIVERSITY, ISLAMABAD 51

5.2 Managerial Implications
Some of the recommendations are as follows:
• The companies that are targeting the teenagers or the young population should
make use of m-advertising as the usage of mobile is rapidly growing mostly
among the teenagers and the research also confirm that almost all the young
people welcome m-advertising.
• Those companies that are unaware of this tool of marketing should be made aware
as the consumers are aware of m-advertising and they expect the companies to
send them advertisements related to the products that they have interest in.
• All the users of mobile phones have access to SMS services however the
accessibility to MMS services is dependent upon the mobile phones and such
phones are much expensive. So more focus should be on SMS rather than on
MMS.
• The advertising agencies should also be made aware of m-advertising as it is good
source of revenue for the advertising agencies especially in an environment where
growth rate is phenomenal in customer base and average spending per person is
raising every year.
• The research also shows that many people don’t watch TV more than 2 hours a
day. This brings us to the conclusion that these people will not watch the
advertisements on the TV; as a result it is important for the companies to know
that the ads shown on TV are of no use. They should find newer ways of
advertising their products. The solution is to advertise via mobile.
• This communication channel will become more popular when people will become
more familiar with the underlying technology.

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5.3 Future Research
After establishing the fact that it is possible to implement mobile advertising in Pakistani
advertising scenario there are many future prospects related to mobile advertising which
need the future study in order to successfully implement mobile advertising in this
market. Customer prospective of the mobile advertising needs a deep study. These issues
or future prospects include

• Privacy concerns regarding mobile advertising bother the Pakistani consumer in

the same way as any other developed country’s customer. More research should
be done in the permission based M-advertising.

• How can customer databases be established for mobile advertising?

• Emergence of new rules and regulations by regulatory bodies with respect of

mobile advertising.

These are the issues of immediate concern for the mobile advertising field while
implementing it in any form in Pakistani market.

At this stage there has been very little research available regarding mobile advertising in
Pakistani environment. Considering the fact that it has turned to a multibillion industry all
over the world; future research is needed in a vastly growing market like Pakistan.

BAHRIA UNIVERSITY, ISLAMABAD 53

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