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The characteristic of GPS is extremely attractive because advertisers can target customers when they are driving near their store location. A lot of consumers in America are impulsive buyers and receiving ads into their cells has personalized psychological effects that can push a sale. This technique of mobile advertisement is referred to as location-based advertisement. It is currently commonly used in Japan and Europe. Mobile advertising has had a greater impact in Asia than in the United States.
There are companies that are capitalizing on this new niche marketing method to attract new mobile customers. NearbyNow and GPShopper are both offering text messages services that allow the mobile user to search the shoppers of stores for prices and inventory (Plunkett Research). The speed of G3 and G4 networks has increased the capacity of cellular phones to connect to be able to surf the internet at very fast speeds. Smartphones also have the ability to generate tremendous graphics. New smartphones with windows technology are so advanced that the phone can play Xbox games. The graphics capabilities of the phones can be used by marketers to generate very attractive advertisers. One of the advantages of mobile advertising is that marketing campaigns can be created based on the profile of mobile users. Also, the campaigns can be implemented very fast to the large number of users who will actively participate in the advertising. The fact that participation rates of mobile ads are high is a tremendous advantage over other types of marketing such as internet advertising.
The cellular phone is one of the most popular electronic innovations in the world. There are an estimated 4.7 billion cellular phone users worldwide (Plunkett Research). This statistic means that nearly 68% of the world’s population has a cellular phone. The potential reach of mobile advertising is greater than the internet. Cellular phone companies are seeing the potential of mobile advertising. Some cellular phone providers are offering their customers discounts off their monthly rates if they sign up to receive a predetermined amount of cellular ads each month. This new form of advertising has the potential to make cellular companies a lot of money. There are billions of potential customers that can be reached using cellular technology. The world is in love with the cellular phone which makes mobile advertising one of the hottest trends in advertising for the future. There will be a lot of work available for advertisers that can develop smart mobile ads.
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