Marketing Science Institute Special Report 07-206 Online and Mobile Advertising: Current Scenario, Emerging Trends, and Future Directions Venkatesh Shankar and Marie Hollinger © 2007 Venkatesh Shankar and Marie Hollinger MSI special reports are in draft form and are distributed online only for the benefit of MSI corporate and academic members. Reports are not to be reproduced or published, in any form or by any means, electronic or mechanical, without written permission. Online and Mobile Advertising: Current Scenario, Emerging Trends, and Future Directions Venkatesh Shankar Marie Hollinger* September 2007 * Venkatesh Shankar is Professor and Coleman Chair in Marketing and Director of the Marketing PhD. Program at the Mays Business School, Texas A&M University, College Station, TX 77843. Marie Hollinger is with USAA, San Antonio. The authors thank David Hobbs for assistance with data collection and article preparation. They also thank the MSI review team and Thomas Dotzel for helpful comments. Please address all correspondence to
[email protected]. Online and Mobile Advertising: Current Scenario, Emerging Trends and Future Directions, Copyright © 2007 Venkatesh Shankar and Marie Hollinger. All rights reserved. Online and Mobile Advertising: Current Scenario, Emerging Trends, and Future Directions Abstract Online advertising expenditures are growing rapidly and are expected to reach $37 billion in the U.S. by 2011. Mobile advertising or advertising delivered through mobile devices or media is also growing substantially. Advertisers need to better understand the different forms, formats, and media associated with online and mobile advertising, how such advertising influences consumer behavior, the different pricing models for such advertising, and how to formulate a strategy for effectively allocating their marketing dollars to different online advertising forms, formats and media.