MANAGEMENT SLANT

  • Branded apps help consumers recognize advertisements more than do mobile websites.
  • Branded apps can increase consumers’ willingness to buy more than do mobile websites.
  • Advertising on popular apps may not be as effective as advertising on branded apps, because the findings show that advertisement recognition does not mediate between advertising on popular apps and the willingness to buy new products.
  • It is better to target consumers with high cognitive and sensory innovativeness to increase the customer base of branded apps.

INTRODUCTION

Mobile users now represent the majority of the world’s population. By 2020, more than 4.78 billion consumers are expected to be mobile users (Statistica, 2019). The number of consumers using mobile devices is projected to continue to grow. To reach the growing mobile-using consumer segment, companies are expected to spend about $187 billion on digital marketing in 2022 (eMarketer, 2018). There is a growing consensus that mobile has become a key marketing-communication channel for digital advertisements (Faulds, Mangold, Raju, and Valsalan, 2018; Kim, Kim, Choi, and Trivedi, 2017; Koetsier, 2018).