Estimating the capacity of the Location-Based Advertising channel
by Gyozo Gidofalvi, Hans Ravnkjaer Larsen, Torben Bach Pedersen
International Journal of Mobile Communications (IJMC), Vol. 6, No. 3, 2008

Abstract: Delivering 'relevant' advertisements to consumers carrying mobile devices is regarded by many as one of the most promising mobile business opportunities. The relevance of a mobile ad depends on at least two factors: (1) the proximity of the mobile consumer to the product or service being advertised, and (2) the match between the product or service and the interest of the mobile consumer. The interest of the mobile consumer can be either explicit (expressed by the mobile consumer) or implicit (inferred from user characteristics). This paper tries to empirically estimate the capacity of the Mobile Advertising channel, i.e. the number of relevant ads that can be delivered to mobile consumers. The estimations are based on a simulated mobile consumer population and simulated mobile ads. Both of the simulated data sets are realistic and derived based on real-world data sources about population geo-demographics, businesses offering products or services, and related consumer surveys. The estimations take into consideration both the proximity and interest requirements of mobile ads, i.e. ads are delivered only to mobile consumers that are close-by and are interested, where interest is either explicit or implicit. Results show that the capacity of the Location-Based Advertising channel is rather large, which is evidence for a strong business case, but it also indicates the need for user-control of the received mobile ads.

Online publication date: Thu, 13-Mar-2008

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Mobile Communications (IJMC):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com