Does Location Familiarity Increase Response to Mobile Ads?

55 Pages Posted: 29 Apr 2022 Last revised: 9 Jun 2024

See all articles by Dominik Molitor

Dominik Molitor

Fordham University - Gabelli School of Business

Peter Pal Zubcsek

Tel Aviv University - Coller School of Management

Martin Spann

Ludwig Maximilian University of Munich (LMU) - Faculty of Business Administration (Munich School of Management)

Philipp Reichhart

Ludwig Maximilian University of Munich (LMU) - Faculty of Business Administration (Munich School of Management)

Date Written: June 09, 2024

Abstract

Targeting ads based on consumers’ real-time locations has evolved into a practice worth billions of dollars in the advertising industry. Yet, the implications of repeated mobile ad exposure are poorly understood, primarily due to the confounding effects of locational context. This paper seeks to bridge this gap. Using two large datasets comprising more than three million observations from a major European mobile telecommunication company, we investigate how ad repetition and location revisits (i.e., returning to a previously visited location) jointly determine consumer response to mobile display advertising. Our empirical strategy leverages coarsened exact matching combined with a logit model with fixed effects at the consumer-location level. We find that the click rate through ads is more than 25 percent higher at revisited locations compared to locations visited for the first time. However, mobile ad repetition decreases click rates, and this effect is amplified at revisited locations. Our results contribute to the theory and practice of mobile advertising.

Keywords: mobile analytics, location-based advertising, ad repetition, location revisits, geotargeting, coarsened exact matching

Suggested Citation

Molitor, Dominik and Zubcsek, Peter Pal and Spann, Martin and Reichhart, Philipp, Does Location Familiarity Increase Response to Mobile Ads? (June 09, 2024). Available at SSRN: https://ssrn.com/abstract=4071412 or http://dx.doi.org/10.2139/ssrn.4071412

Dominik Molitor

Fordham University - Gabelli School of Business

113 West 60th Street
Bronx, NY 10458
United States

HOME PAGE: http://www.dominikmolitor.com

Peter Pal Zubcsek

Tel Aviv University - Coller School of Management ( email )

Tel Aviv
Israel

Martin Spann (Contact Author)

Ludwig Maximilian University of Munich (LMU) - Faculty of Business Administration (Munich School of Management) ( email )

Ludwigstr. 28
Munich, 80539
Germany

Philipp Reichhart

Ludwig Maximilian University of Munich (LMU) - Faculty of Business Administration (Munich School of Management)

Kaulbachstr. 45
Munich, DE 80539
Germany

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