How do content-related factors influence perceived value of location-based mobile advertising?

Abstract

Location-based mobile advertising (LBA) is forecast to drive the growth of the mobile advertising industry. Although past research supports that advertising content influences their effectiveness, little research has identified content factors and examined their effects on users’ perceived value of LBA. Analyzing web survey data from a national representative sample of 605 Singapore mobile consumers, partial least square results show that LBA content factors (contextualization, relevance, entertainment, and credibility) are positively related to perceived value, while irritation has a negative effect. Among them, credibility has the highest effect size to perceived value of LBA, followed by entertainment, which can be explained by context and culture. The results also show a positive relationship between LBA perceived value and use intention. Theoretical and practical implications are discussed.