Development of a Viable Mobile Advertising Strategy: Mobile Specific Rather Than a Web-Derived Redesign

Abstract

This study focuses on identifying what constitutes a viable mobile advertising strategy. The hypothesis that frames this study is that a purely mobile advertising strategy designed for mobile consumption is more effective than solutions that are dependent upon traditional web-based elements. The study first incorporates a critical review of the relevant literature on the subject and then examines an industry-leading benchmark in mobile advertising as a case study. The industry-leading benchmark that is examined in-depth is Starbucks which has centered its entire mobile marketing strategy on its mobile app. The literature indicates that digital media is increasingly being consumed on mobile platforms rather than on PC-based platforms. Additionally, the mobile web is becoming more ubiquitous and thus much more critical for any retailing firm. In Starbucks’ case, its mobile advertising strategy is based on its mobile app which incorporates geo-location features, mobile ordering and mobile payment features, order tracking and history, customer loyalty programs and customer customization features. All of these features ensure that its consumers are able to integrate Starbucks’ products and services into their daily routine in a seamless and un-intrusive fashion. One final element of Starbucks’ mobile advertising strategy is that its app-based strategy can also forward integrate emerging mobile solutions that are still in their infancy or not yet developed. With at least 20% of Starbucks’ overall revenues now related in one respect or another to its mobile marketing platform, mobile advertising is shown to be most effective when designed for mobile applications from the ground-up.

Keywords: mobile advertising, mobile app, mobile solutions, geo-location, mobile payment, Digital Marketing