Comparing factors affecting attitudes toward LBA and SoLoMo advertising

Abstract

This study compares the effectiveness of location-based advertising (LBA) and social-local-mobile (SoLoMo) advertising. The results show that SoLoMo advertising is more effective than LBA. Consumers perceive a higher level of brand interaction, entertainment, informativeness, perceived location awareness, and sociability in SoLoMo advertising than in LBA. This study also discovers that there are differences in consumers’ reaction to the ads on different situational contexts and platforms. The academic contribution of this paper lies in the direct comparison of the effectiveness of LBA and SoLoMo advertising, which was lacking in the literature. To our knowledge, this is the first study in which comparison between LBA and SoLoMo advertising is made. This paper fills the gap by investigating how factors associated with advances of modern smartphone functionalities, brand interaction, perceived location awareness, and sociability, affect attitudes towards ads. It also contributes to the theory of effectiveness of telecommunication promotion by examining how consumers react to ads in different situational contexts on different platforms. Finally, this study provides practical suggestions.