User Acceptance of Location-Based Mobile Advertising: An Empirical Study in Iran

Location-Based Advertising

With the emergence of high speed wireless network technologies and the increasing market penetration of mobile phones the global advertising industry’s interest in using this medium as a means of marketing communication is rising. Mobile advertising can be more personalized and different forms such as permission-based, incentive-based, or location based (He & Lu, 2007). Researches related to mobile advertising have shown that this marketing instrument is very effective as a branding vehicle and in stimulating a response, thus increasing brand attitude and purchase intentions (Rettie, Grandcolas, & Deakin, 2005). In this regard, LBA refers to marketer-controlled information specially tailored for the place where users access an advertising medium (Bruner & Kumar, 2007). Marketers can entertain, inform, build brand awareness, create loyalty, and drive purchase decision among their target consumers through LBA. LBA can be defined as a subset of location-based marketing (LBM which includes all aspects of the marketing mix in the mobile location-based setting, whereas LBA is a narrower concept focused on the advertising strategy and communications elements of LBM.