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Mobile Targeting Michelle Andrews Temple University Chee Wei Phang Fudan University Xueming Luo Temple University Zhang Fang Sichuan University
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Mobile Targeting - Temple Universityd3iovmfe1okdrz.cloudfront.net/.../2015/12/Mobile-Targeting.ms_.pdf• Users had not previously purchased mobile tickets ... this online ticket app

Apr 21, 2018

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Page 1: Mobile Targeting - Temple Universityd3iovmfe1okdrz.cloudfront.net/.../2015/12/Mobile-Targeting.ms_.pdf• Users had not previously purchased mobile tickets ... this online ticket app

Mobile Targeting

Michelle AndrewsTemple University

Chee Wei PhangFudan University

Xueming LuoTemple University

Zhang FangSichuan University

Page 2: Mobile Targeting - Temple Universityd3iovmfe1okdrz.cloudfront.net/.../2015/12/Mobile-Targeting.ms_.pdf• Users had not previously purchased mobile tickets ... this online ticket app

Background

Page 3: Mobile Targeting - Temple Universityd3iovmfe1okdrz.cloudfront.net/.../2015/12/Mobile-Targeting.ms_.pdf• Users had not previously purchased mobile tickets ... this online ticket app

Uniqueness of Mobile Technology

• Mobile Portability = Real-time Targeting• GPS, Wi-Fi, Bluetooth, iBeacon = Geo-Targeting

• Geo-Targeting + Temporal Targeting

Page 4: Mobile Targeting - Temple Universityd3iovmfe1okdrz.cloudfront.net/.../2015/12/Mobile-Targeting.ms_.pdf• Users had not previously purchased mobile tickets ... this online ticket app

Research Questions

(1) How do timing and location in combination affect mobile sales?

(2) What are the underlying mechanisms for these effects?

Page 5: Mobile Targeting - Temple Universityd3iovmfe1okdrz.cloudfront.net/.../2015/12/Mobile-Targeting.ms_.pdf• Users had not previously purchased mobile tickets ... this online ticket app

Contextual Marketing Theory

• Efforts to influence purchases must be context dependent

– Portability enables ubiquitous reach and time-sensitive offerings

? Temporal & spatial boundaries may interactively impact behavior

• Decision to attend event is function of event time and place

• Ex: web usage contexts affect revisit intentions

Kenny and Marshall 2000; Johnson 2013; Galletta et al. 2006

Page 6: Mobile Targeting - Temple Universityd3iovmfe1okdrz.cloudfront.net/.../2015/12/Mobile-Targeting.ms_.pdf• Users had not previously purchased mobile tickets ... this online ticket app

Field Experiment

• Large, randomized field experiment

• Text messages promoting movie tickets

• Users had not previously purchased mobile tickets

• Large city in China

• Single movie promoted

• Sent to 12,265 mobiles

Page 7: Mobile Targeting - Temple Universityd3iovmfe1okdrz.cloudfront.net/.../2015/12/Mobile-Targeting.ms_.pdf• Users had not previously purchased mobile tickets ... this online ticket app

SMS Message

To enjoy a movie showing this

Saturday at 4:00 pm for a reduced price, download this online ticket app to purchase

your movie tickets and select your

seat.

Page 8: Mobile Targeting - Temple Universityd3iovmfe1okdrz.cloudfront.net/.../2015/12/Mobile-Targeting.ms_.pdf• Users had not previously purchased mobile tickets ... this online ticket app

Variables

• Dependent

• Mobile targeting effectiveness: ticket purchase via new app

• Independent

• Temporal targeting

• Geo-targeting

Page 9: Mobile Targeting - Temple Universityd3iovmfe1okdrz.cloudfront.net/.../2015/12/Mobile-Targeting.ms_.pdf• Users had not previously purchased mobile tickets ... this online ticket app

Defining Temporal Targeting

• Messages sent at 2 pm

• 2 hours (Sat.), 26 hours (Fri.), 50 hours (Thurs.) before movie

• Movie time: 4 pm, Saturday

Page 10: Mobile Targeting - Temple Universityd3iovmfe1okdrz.cloudfront.net/.../2015/12/Mobile-Targeting.ms_.pdf• Users had not previously purchased mobile tickets ... this online ticket app

• Messages sent to mobiles located at

• Near distances: < 200 meters (from the movie theater)

• Medium distances: 200 meters < x > 500 meters

• Far distances: 500 meters < x > 2km

Defining Geo-Targeting

200m

350m

1km

Page 11: Mobile Targeting - Temple Universityd3iovmfe1okdrz.cloudfront.net/.../2015/12/Mobile-Targeting.ms_.pdf• Users had not previously purchased mobile tickets ... this online ticket app

Random Sampling by Location

Oversamplingof Near distance

Undersamplingof Far Distance

Cinema

Page 12: Mobile Targeting - Temple Universityd3iovmfe1okdrz.cloudfront.net/.../2015/12/Mobile-Targeting.ms_.pdf• Users had not previously purchased mobile tickets ... this online ticket app

Control Variables

• Theater (A, B, C, D)

• Rate plan types

• MOU (minutes used monthly)

• ARPU (monthly bill)

• SMS (amount of text messages sent and received)

• Traffic (amount of data usage)

Page 13: Mobile Targeting - Temple Universityd3iovmfe1okdrz.cloudfront.net/.../2015/12/Mobile-Targeting.ms_.pdf• Users had not previously purchased mobile tickets ... this online ticket app

Response Rate

• 901 of 12,265 users downloaded app and bought tickets= 7.35%

• Mobile click rates in Asia:= 0.42%

eMarketer 2012

Page 14: Mobile Targeting - Temple Universityd3iovmfe1okdrz.cloudfront.net/.../2015/12/Mobile-Targeting.ms_.pdf• Users had not previously purchased mobile tickets ... this online ticket app

Time0.00

0.02

0.04

0.06

0.08

0.10

0.12

Estim

ated

Mar

gina

l Mea

ns

Sam

e-da

y

Evidence: Temporal Targeting

One

-day

prio

r

Two-

day

prio

r

χ² = 9.53, p < .01

χ² = 14.68, p < .01

Mean purchase for same-day messages:• Higher than one-day prior

• Higher than two-day prior

Page 15: Mobile Targeting - Temple Universityd3iovmfe1okdrz.cloudfront.net/.../2015/12/Mobile-Targeting.ms_.pdf• Users had not previously purchased mobile tickets ... this online ticket app

0.00

0.02

0.04

0.06

0.08

0.10

0.12

near medium far

Estim

ated

Mar

gina

l Mea

ns

Far

Medium

Near

Evidence: Geo-Targeting

Mean purchase for proximal distances:• Higher than moderate distances

χ² = 9.20, p < .01

• Higher than far distancesχ² = 18.33, p < .01

Page 16: Mobile Targeting - Temple Universityd3iovmfe1okdrz.cloudfront.net/.../2015/12/Mobile-Targeting.ms_.pdf• Users had not previously purchased mobile tickets ... this online ticket app

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

0.18

0.2

Time

Estim

ated

Mar

gina

l Mea

ns

Sam

e-da

y

One

-day

prio

r

Two-

day

prio

rFar MediumNear

Sam

e-da

y

One

-day

prio

r

Two-

day

prio

r

Sam

e-da

y

One

-day

prio

r

Two-

day

prio

r

Geo- and Temporal Targeting Combined

Page 17: Mobile Targeting - Temple Universityd3iovmfe1okdrz.cloudfront.net/.../2015/12/Mobile-Targeting.ms_.pdf• Users had not previously purchased mobile tickets ... this online ticket app

Additional Results: Customer Scenarios• Messages sent to mobiles located in

• Residential districts

• Shopping districts

• Financial districts

Page 18: Mobile Targeting - Temple Universityd3iovmfe1okdrz.cloudfront.net/.../2015/12/Mobile-Targeting.ms_.pdf• Users had not previously purchased mobile tickets ... this online ticket app

0

0.05

0.1

0.15

0.2

0.25

Near Medium Far Near Medium Far

Estim

ated

Mar

gina

l Mea

ns

Sam

e-da

y

Sam

e-da

y

Sam

e-da

y

Sam

e-da

y

Sam

e-da

y

Sam

e-da

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Sam

e-da

y

Sam

e-da

y

Sam

e-da

y

One

-day

prio

r

One

-day

prio

r

One

-day

prio

r

One

-day

prio

r

One

-day

prio

r

One

-day

prio

r

One

-day

prio

r

One

-day

prio

r

One

-day

prio

r

Two-

day

prio

r

Two-

day

prio

r

Two-

day

prio

r

Two-

day

prio

r

Two-

day

prio

r

Two-

day

prio

r

Two-

day

prio

r

Two-

day

prio

r

Two-

day

prio

r

Time

Near Medium Far

At Mall At Home At Work

Distance x Time x Customer Scenario

Geo-Targeting on same day is most effective for shoppers vs. others (χ²=5.12 & 19.07, p = .01)

Geo-Targeting’s effect diminishes over time

U-shape for far distances is robust across segments

Page 19: Mobile Targeting - Temple Universityd3iovmfe1okdrz.cloudfront.net/.../2015/12/Mobile-Targeting.ms_.pdf• Users had not previously purchased mobile tickets ... this online ticket app

• Mobile targeting by location and time

• Customer context matters

Geo- and Temporal Targeting Takeaway

Effectiveness Effectiveness

Time TimeNear Distance

Far Distance

Page 20: Mobile Targeting - Temple Universityd3iovmfe1okdrz.cloudfront.net/.../2015/12/Mobile-Targeting.ms_.pdf• Users had not previously purchased mobile tickets ... this online ticket app

THANK YOU!

[email protected]

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