The Advertising Spending Trends: Mobile Vs Traditional Media-- An Empirical Study

Abstract

Mobile commerce has become a driving force in retail industry in the past 20 years. Since Apple introduced its first
generation of iPhone in 2007, smartphone has penetrated about 70% of US population. Consequently, mobile
commerce has emerged from a supplementary to electronic commerce and has become a powerhouse in retail
businesses. The American adults spend more time on their smartphones, and do even more commerce on their
smartphone than on their personal computers. In next few years, US mobile commerce will be a half of the total
ecommerce. Marketers have spent more advertising dollars on smartphones, as they can better target smartphone
users through programmatic advertising, particularly when they find the phone users are interested in particular
products they browse. This study compares the advertising effectiveness on smartphone users through an empirical
survey. The results suggest that smartphone advertising is an effective way to reach and influence the users. Mobile
advertising will continue to work hand-in-hand with traditional media advertising. A strategic shift with more focus
on mobile advertising will be more effective.