Page 294 - Introduction to Electronic Commerce and Social Commerce

280 9 Marketing and Advertising in E-Commerce

Examples of AR Applications estimation by eMarketer indicates that the global annual
Several examples of interactive applications are provided at mobile ad spending has an increase of 105%, reaching
en.wikipedia.org/wiki/Augmented_reality. These include US$101 billion in 2016, a 430% growth from 2013. This rep-
real estate and architecture, product and industries design, resents a great opportunity for online mobile marketing and
tourism, and more. Companies such as Nissan, Best Buy, advertising. (See emarketer.com/Article/Mobile-Ad-
Walt Disney, and Burger King have experimented with using Spend-Top-100-Billion-Worldwide-2016-51- of-Digital-
AR in advertising. For more examples, see Russell (2012). Market/1012299.)
Retailers in the clothing, fashion, and jewelry industries
are using this technology, because in their industries, visual-
ization is critical. For example, ClothiaCorp combines AR Mobile Marketing and Mobile Commerce
and with real-time merchandise recommendations. It allows
shoppers to “try on” clothing and share the “how they look” Mobile marketing and advertising are generally considered a
with family and friends, in real time. subset of both mobile commerce and mobile marketing.
Mobile marketing takes several forms, such as using SMS
(e.g., Twitter), as well as games and videos. Their major ele-
Advertising in Chat Rooms and Forums ments are described next.

Chat rooms can be used for advertising. For example, Mattel Defining Mobile Marketing
Corp. sells about one-third of its Barbie dolls to collectors.
These collectors use chat rooms to make comments or ask Mobile marketing is frequently defined as the use of mobile
questions that are subsequently answered by Mattel’s staff. devices and wireless infrastructure as a means of marketing
The Xiaomi case in this chapter runs a smartphone forum for and advertising. The marketer intends to access potential
its product design and advertising. customers through wireless information channels. The
Advertisers sometimes use online fantasy sports (e.g., Mobile Marketing Association (mmaglobal.com) provides
available at Yahoo!, ESPN, and more) to send ads to specific definitions of advertising, apps, messaging, m-commerce,
sports fans (e.g., fans of the National Football League or and CRM on all mobile devices, including smartphones and
Major League Baseball). Online fantasy sports attract mil- tablets.
lions of visitors every month. Mobile marketing includes sales, market research, cus-
tomer service, and advertising, all supported by mobile com-
puting. Companies can devise contests where customers
SECTION 9.5 REVIEW QUESTIONS describe the quality of a new product, and the sellers can post
coupons and promotions. You can make ads interactive since
1. Define banner ads and describe their benefits and limita- mobile computing provides a direct link between vendors
tions. and consumers.
2. Describe the difference between banner swapping and
banner exchanges. Mobile Advertising
3. Describe the issues surrounding pop-ups and similar ads.
4. Explain how e-mail is used for advertising. Mobile advertising (m-advertising) is defined by the IAB
5. Describe the search engine optimization technique and (2014) as “Advertising tailored to and delivered through
what it is designed for. wireless mobile devices such as smartphones (e.g. Blackberry,
6. Describe Google’s AdWords and AdSense. iPhone, Android, etc.), feature phones (e.g. lower-end mobile
7. Describe video ads and their growing popularity. phones capable of accessing mobile content), and media tab-
8. Describe augmented reality advertising. lets (e.g. iPad, Samsung Galaxy Tablet, etc.).” Mobile adver-
tising ranges from simple text messaging to intelligent
interactive messaging on mobile devices. It involves several
key players, such as the advertisers, mobile ad networks,
9.6 MOBILE MARKETING mobile apps, and mobile devices.
AND ADVERTISING Figure 9.5 shows how mobile ads work. A company hires
a mobile advertiser to create a mobile ad and specifies the
The rapid growth of mobile devices provides another arena promotional criteria. The mobile ad is then sent to a mobile
for EC marketing and advertising. For example, the ratio of advertising network. The original network forwards these
mobile handsets, including smartphones, to desktop and lap- ads to multiple mobile networks and keeps track of the distri-
top computers is approximately 2–1 and growing. A 2016 bution and responses to these ads. The ad will reach the