CONSUMER PRIVACY BEING RAIDED AND INVADED

The Negative Side of Mobile Advertising

Monika Mital

Jaipuria Institute of Management, Lucknow, India

Keywords: Mobile Human Computer Interaction, Mobile Advertising, Message Characteristics, Device Characteristics,

Situation Characteristics.

Abstract: There have been growing concerns regarding mobile advertising being extremely intrusive into the personal

space of the consumers. The study tries to broadly concretize the reasons as to why mobile ads are found to

be intrusive. The analysis reported that three factors namely: situation characteristics, message

characteristics and device/network characteristics, played an important role in defining the extent of

intrusiveness of mobile advertising and the ad irritation arising out of it.

1 INTRODUCTION

In the recent years there has been an exponential

growth in the usage of mobile devices. The adoption

of mobile devices has been 3.3 billion by the end of

2007 and a penetration rate of 49% which is much

higher than the penetration rate of any other

technological innovation (Gartner, 2007). In India

the annual average growth rate of mobile usage is at

22 percent, with 154 million new subscribers

annually. In comparison to the internet there is a

significant growth in mobile usage worldwide. The

mobile advertising market is expected to rise to $

16.2 billion by 2011, which is up from $2.7 billion

in 2008 .With these kinds of figures it is expected

that mobile advertising is going to be a very

effective form of marketing communications in the

coming years. In Comparison with traditional

advertising, the main advantages of mobile

advertising are: personal touch, tailor-made to suit

individuals, and hence can be considered cost

effective. Mobile advertising can reach the target

customers anywhere anytime, with accessibility,

frequency and speed of communication being some

of the advantages afforded by the medium. The most

popular mobile application, referred to as text

messaging or Short Message Service (SMS). Studies

reveal that mobile advertising campaigns can

generate responses that are as high as 40%,

compared with a 3% response rate through direct

mail and 1% with internet banner ads (Jelassi and

Enders, 2004).

Cellular services are individual utilitarian services

and the purpose is mainly to fulfill certain

communication and information needs of the users

(Ng, Russell-Bennett and Dagger, 2007). In

Individual services, the consumer can determine

start and leave times, duration and timing of use.

When the telecommunication device like a cell

phone is used for advertising (Mobile advertising)

there is no control of the individual on the

consumption. As a result, since mobile phone is a

very private device, there are perceptions of

intrusiveness when the customer has no control over

the consumption of the mobile advertising service

(Haghirian & Madlberger 2005; Jelassi & Enders

2004). Growing concerns about the protection of the

users' privacy have been raised since mobile

advertising may become extremely intrusive in an

intimate personal space (Cleff 2007, Zwass 1996).

2 LITERATURE REVIEW

Mobile consumers are very sensitive toward

receiving messages from unknown persons or

organizations and are uncomfortable with mobile

advertising (Siau & Shen, 2003). Invasion of privacy

and general security concerns relating to the mobile

medium have been identified as one of the main

obstacles to the success of mobile advertising

(Gohring, 2002). Mobile users are concerned about

unauthorized data access, data manipulation, and

unwanted tracking of usage patterns. Godin (2001)

117

Mital M. (2010).

CONSUMER PRIVACY BEING RAIDED AND INVADED - The Negative Side of Mobile Advertising.

In Proceedings of the 12th International Conference on Enterprise Information Systems - Human-Computer Interaction, pages 117-123

DOI: 10.5220/0002844601170123

 SciTePress

described that a majority of anonymous mass

advertising is despised by consumers leading them

to reject the messages.

Li et al (2002) discusses how negative reactions like

irritation arise through intrusion advertising.

Consumer perceptions of intrusiveness or acceptance

of a channel influences the consumer’s

responsiveness to marketing communication

(Abernethy 1991). If the consumer considers

marketing communication via a channel as

disturbing it may negatively affect the attention to

and perception of the message. Perceived clutter,

hindered search, and disruption were related to less

favorable attitudes and greater ad avoidance (Elliot

and Speck 1998). Edwards et al. (2002) found ad

intrusiveness to be a good predictor of ad irritation

and ad avoidance which can both significantly

hamper the effectiveness of an ad. Ad avoidance

could also mean putting the sender of an intrusive

and/or irritating mobile ad on a mobile spam list so

that future ads will be blocked or instantly deleted.

Situation Characteristics. Lack of Relevancy. But

it has been found time and again that relevant mobile

ads are perceived as less intrusive than irrelevant

mobile ads. Consumer attitude towards any

technology intervention is guided by their

perceptions of utility. Lack of relevancy and

contextualization has been found to be the key

reasons for perceptions of intrusiveness. Lack of

features such as location based services, self deletion

of ads, and access to more information can reduce

the perceived intrusiveness of the mobile as a

medium of advertising (Junglas 2007). The key is to

use interactive wireless media to provide customers

with time- and location- sensitive, personalized

information that promotes goods, services and ideas,

thereby generating value for all stakeholders

(Dickinger, Haghirian, Murphy, & Scharl 2004).

The mobile advertising relevance can be influenced

by the contextualization of advertising messages

(Kenny & Marshall 2000). Barwise & Strong take

up the flexibility, and time-based nature but also the

fact that the small screens restrict the length of the

message (Barwise & Strong 2002). Barnes stresses

the interactive nature of mobile advertising and the

ability to use contextual information to target the

messages to individual receivers, in other words to

personalize the message (Barnes 2002). Location-

aware advertising messages are creating five to ten

times higher click-through rates compared to

traditional internet advertising messages (Ververidis

& Polyzos 2002). These results underline the

importance of precisely embodying mobile

marketing messages and campaigns according to

consumer entertainment and information

requirements.

Consumers differ in their tolerance for unsolicited

commercial communication: consumers rather

tolerate communications pertaining to products and

services in which they are interested as opposed to

products and services in which they have little

interest (Petty Ross, 2003).

Message Characteristics-lack of Proper Content.

An individual’s mobile media purpose is his

acknowledgment of the processing goal he is

pursuing when attending to his mobile device, which

in this case is the medium for mobile advertising.

For example, if the customer’s main intention is

gathering information, the customer will be more

interested in advertisements that provide him

relevant information on products, services or

companies.

On the other hand, if the customer’s intention is

garnered more toward entertainment, he will enjoy

advertisements that are entertaining and provide

experiential satisfaction through aesthetic pleasure,

emotional stimulation, or social experience (Barwise

& Strong, 2002). A consumer may wish to satisfy

different kinds of purposes at the same time, and the

relative importance of the types may change

according to the situation that he is in. Katz et al.

(1973) identify the following three categories of

needs as being the most important: 1) information;

2) Entertainment; and 3) Communication.

The higher the entertainment/information factor of

mobile advertising messages, the higher the

perceived advertising value to the consumer

(Haghirian et al., 2005).Perceptions of usefulness

can have a lasting impact on the acceptance of

mobile advertising. The perceived entertainment,

informativeness, irritation, and credibility of mobile

ads affect the attitude toward mobile advertising

(Tsang, Ho, and Liang 2004, Lee and Jun

2005).Consumer have been found to differ in their

tolerance of unsolicited commercial communication

depending upon their interest in the product or

service (Petty Ross 2003). According to Edwards et

al. (2002), ads which are more entertaining or

informative are perceived as less intrusive.

Device/Network Characteristics-Privacy

Violation. Most of the users would be bothered

about marketers or other people knowing what they

are interested in (Kaasinen,2003). One of the main

challenges and opportunities for mobile advertising

companies is to understand and respect the personal

nature of the usage of mobile phones (Palmer &

O'Neill, 2003; Barnes& Scornavacca 2004;

Heinonen & Strandvik 2007; Barwise & Strong

ICEIS 2010 - 12th International Conference on Enterprise Information Systems

118

2002). The well meaning contextualized and

personalized advertisements may in reality be

encroachments to the privacy of individuals. And

also, it was found that when an offered technology

intervention would not meet customer expectations

(properly contextualized), it would not create strong

positive sentiments among the users (Akçura and

Altinkemer 2002).

If the messages are sent to the mobile user at the

right time and location and are relevant to the needs

of the user, the message intrusiveness can be

reduced (Gratton 2002). Although message

characteristics and relevancy of the ad has been

found to be closely related to reduced perceptions of

ad intrusiveness (Wehmeyer 2007), but at the same

time using user profile and location data without

permission can also lead to privacy invasion

(Cranor1999). Personalization mechanisms gather

information about user’s interest, navigation paths,

purchases, tracking previous behavior and also

asking users to fill in questionnaires and forms

(Georgiadis, mavridis and manitsaris 2005, Kaasinen

2003). Barkhuus and Dey(2003) investigated user’s

perceptions about usefulness and concern with

location tracking services and found that these

generated concerns for privacy.

There are pervasive service providers who would

deploy a variety of sensors in the user

environments to detect or track various contexts

like location of people, temperature and

activities of people or groups of people with the

purpose of sending information or advertisements.

There are a variety of ways of sending information

to an individual like instant messaging, email,

voice-mail, cell-phone, speech, displays (either

personal monitors or wall displays), network TV,

electronic billboards, etc (Ranganathan &

Campbell 2002). Sometimes, just participating in the

networked world would hamper the privacy of user,

without any deliberate attempts at information

disclosure. For example while searching through the

internet, sending an SMS to a friend, downloading

ring tones or music etc. the users are letting out

personal information like personal preferences and

use patterns (Palen and Dourish 2003).

Mobile spam, personal identification, location

information and wireless security are some of the

issues related to privacy. Mobile spam has been

found to be great cause for concern with mobile

users as they are unsolicited, sent in bulk, repetitive

and motivated by financial gain for the sender at the

cost of the receiver(Camponovo and Cerrutti 2004).

Negative thoughts about tactic inappropriateness

were seen to arise with repetition(Campbell and

Keller 2003).

3 RESEARCH OBJECTIVES

The primary objective of this research study is to

gain an insight into the perception of mobile users

towards mobile advertising. The study attempts to

explore intrusiveness of mobile advertising. The

total variance accounted for by each of the six

components explains nearly 71% of the variability in

the original 13 variables. So we can reduce the

original data set by using these three components

with only 29% loss of information.

Looking at the Table 1, the rotated factor matrix, and

the study shows three factors (which represent the

three perceptual dimensions about mobile

advertising) derived from 13 variables (which

represent the perception of mobile users towards

mobile advertising). The components of each factor

are shown highlighted in Table 1.

The factor analysis identified 12 items in three

groups, as Factor 1, Factor 2 and Factor 3, and the

Cronbach reliability alpha coefficient for the 12-item

scale was 0.703. We then investigated further

optimization of the instrument by examining the

reliability coefficient of each factor independently.

We then found that the 3-item Factor 1 had a

reliability coefficient of 0.788, 4-item Factor 2 had a

reliability coefficient of 0.811, 5-item Factor 3 had a

reliability coefficient of 0.834.Kaiser-Meyer-Olkin

Measure of Sampling Adequacy statistic of .820

seems to indicate that factor analysis will be useful

for the current study.

Looking at Table 3 we find that the variables;

mobile ads being less informative , not suiting

personal needs , inappropriate timing , and clutter

are loaded to factor 1 and since all the factors are

related to situational lack of relevancy, this factor

can be labeled ‘Situation Characteristics’.

Factor 2 has components; brand related information,

sales/promotion related information, and

product/services related information. Since all this

components are related to content of mobile

advertising, this factor can be labeled ‘Message

Characteristics’ of mobile ads.

Factor 3 has components related to disturbance

caused due to mobile advertising and privacy

violation because of the nature of the mobile device

and the information capturing network mechanisms;

this factor can be labeled ‘Device/Network

Characteristics’ due mobile ads.

CONSUMER PRIVACY BEING RAIDED AND INVADED - The Negative Side of Mobile Advertising

119

Table 1: Rotated Component Matrix .

Style of Advertising

Component

1 2 3

I find mobile ads less

informative

.622

.127

.133

Most of the times the

mobile ads do not suite my

needs

.808

.128

.039

Most of the times the

mobile ads are relayed at

the wrong time

.764

.050

.171

I am facing the problem of

clutter as a result of too

many ads

.608 .021 .284

I feel that mobile ads

cause disturbance in work

.537

.094

.463

As soon as I get an ad I

junk it without going

through it

.295

.158

.650

I find it time consuming to

go through ads

.344

.101

.695

I find brand related

information useful

-.244 .656

.141

I find information about

sale/special promotions

very useful

-.113 .694

.066

I find information about

products /services very

useful

-.096 .779

.045

I find ads on the mobile

repetitive in nature

-.003 .082 .615

I expect communication

on my mobile through

very important contacts

only so I do not like

encroachment on my

privacy through ads

.030 .033 .773

An ANOVA analysis was conducted to find out the

impact of mobile advertising on the perceptions of

intrusiveness. An R

value of .434 indicates a strong

significant impact of the mobile advertising on the

perceptions of intrusiveness. It was found that the

impact of situation, message and device/network

characteristics had a significant impact on the

perceptions of intrusiveness (Table 2).

A One-way ANOVA was conducted to find out

whether perceptions about mobile advertising varied

with age. It was found that there was a significant

impact of age on the perceptions of privacy violation

(p value<.05) but respondents of all age groups had

the similar perceptions about lack of relevancy and

lack of proper content ( p value>.05).

Table 2: ANOVA: Analysis to find out the impact of

mobile advertising on perceptions of intrusiveness.

B S.E Beta Sig.

(Constant) 3.63

.048 .000

Situation

Characteristics

.481 .048 .377 .000

Message

Characteristics

.227 .048 .178 .000

Device/Network

Characteristics

.475 .048 .373 .000

Also a one-way ANOVA was conducted to find out

the impact of busy work schedule on perceptions

about mobile advertising. The results indicated a

significant impact of busy work schedule on the

perceptions of lack of proper content. It was found

that the respondents who had busy work schedules

gave more importance to information richness of

ads.

4 DISCUSSION

The results of the study show that there are

perceptions of intrusiveness amongst the users.

These perceptions arise as a result of three factors:

lack of relevancy, lack of proper content and privacy

violation. The perceptions of lack of relevancy of

mobile ads arise as a result of lack of proper timing

of relay of the ads, lack of localization and

contextualization of ads. This corroborates with the

findings of Junglas (2007), according to whom

features such as location based services, self deletion

of ads and contextualization can reduce the

perceived intrusiveness of the mobile as a medium

of advertising. Also, since it was found that there

was a moderately significant impact of lack of

relevancy on the perceptions of intrusiveness, and

Almost 90% of the users felt that mobile advertising

was an encroachment into their personal private

space we can say that the users felt that their privacy

was being invaded. The results of the study indicate

that lack of relevancy of ads was found to be a

predictor of irritation (p value<.05) and ad

avoidance (p value<.05) (As soon as I get an ad I

junk it without going through it). Ad avoidance

could result in putting the sender on the spam list so

that all future ads were blocked or instantly deleted

(Edwards et al 2002).

The respondents feel that Lack of proper message

content leads to feelings of irritation and create

perceptions of intrusiveness in the minds of the

ICEIS 2010 - 12th International Conference on Enterprise Information Systems

120

users. Previous studies have reported that the utility

of advertising messages can lead to a reduced

perception of intrusiveness. Advertising messages

that give useful information to the users are more

acceptable than messages without any utility value.

A one way ANOVA conducted to find out the

purpose of using mobiles (using mobile as a medium

of communication/information/entertainment) and

their impact on perceptions of users about mobile

ads showed that when the users use mobile as a

medium of information access, they found message

characteristics as an important factor in determining

their attitude towards mobile ads. When the mobile

was used as a medium of

communication/entertainment, then situation,

message, and device/network characteristics played

an important role in determining attitude of the

users(p value<.05).

It was found that in spite of perceived usefulness of

mobile messages, perceptions of intrusiveness

resulted from device/network characteristics. The

personal nature of the mobile device gave rise to

feelings of privacy violation. If the mobile service

providers used pervasive sensors to detect location

and used user profile data to create personalized

messages, even then the users felt an encroachment

into their personal space. Users felt that mobile ads

caused disturbance during work and as a result most

of the times they junk ads without going through

them. This seems to corroborate with the findings of

Elliot and Speck (1998), according to whom clutter,

repetition of ads and disruption caused by ads led to

feelings of ad intrusiveness and resulted in ad

avoidance.

5 CONCLUSIONS

Previous studies have looked at mobile advertising

as an effective mode of marketing communications.

The studies have discussed the role of

contextualization, personalization, and

customization in reducing intrusiveness of mobile

advertising and also to create a positive attitude

amongst the users towards mobile ads. However,

little research has emphasized on the darker side of

this intrusion of the users privacy through mobile

advertising. This study has endeavored to initiate a

discussion in this direction. Specific implications of

this study for practitioners would be:

• Although mobile advertising effectiveness can be

improved through understanding the needs of the

users and customization of ads, still, it invades

the privacy of the individuals through push

advertising.

• Many factors, like demographic characteristics

and psychological characteristics affect an

individual’s attitude towards a technology

intervention. The results of this study indicate

that there are significant differences in the

perceptions of intrusiveness based on

demographic characteristics like age, busy work

schedules, purpose of using mobiles.

• If the mobile service providers used pervasive

sensors to detect location and used user profile

data to create personalized messages, even then

the users felt an encroachment into their personal

space. Advertising should be user driven rather

than service provider driven. If certain

mechanisms like search ad agents are developed,

the users would access advertising based on their

needs. Once the user makes a query to the ad

engine then the information about his location

should be detected at request.

• Gathering information for contextualization and

customization of messages raises privacy

concerns and the regulatory and corporate

policies should address such concerns, so that

users of mobile services do not feel that their

privacy is being raided and invaded.

The study has also attempted to identify some areas

for future research, despite its limited scope in

reference to the participant pool, the sample size and

location convenience.

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