Title
Mobile advertising in Peru: The impact of SMS advertising on sales and customer experience
Date Issued
01 September 2020
Access level
metadata only access
Resource Type
conference paper
Author(s)
Andrade-Chaico F.
Publisher(s)
Institute of Electrical and Electronics Engineers Inc.
Abstract
Mobile advertising through SMS is widely used by Peruvian companies to provide customers relevant offers. Telecommunication companies' sales depend considerably on getting into consumers' minds, so they refill their prepaid phone, upgrade their subscription, or purchase a new phone. Therefore most mobile operators might not hesitate to raise the number of SMS ads sent to customers to obtain higher profitability at the expense of customer satisfaction. A case is then presented to determine the impact SMS advertising has on business sales and consumer experience. First, we analyzed 5-month data of SMS advertisement sent by a telecommunication company that included the number of impressions, clicks-throughs and conversions made for a mobile campaign. Throughout the campaign, we observed that the rise of SMS sent produced the click to rate (CTR) to decrease from 5% in October to 1% in February. In contrast, the CR kept around 3% while sales remained stable in the first four months. Moreover, the customer touchpoints of the three major mobile campaigns indicated that Peruvian customers received, on average, 1 SMS every day. Nevertheless, most customers ignored the fact that they allowed receiving such ads after accepting the terms of service on the phone subscription. It is expected that this work helps understand mobile advertising in Peru and serves as a guide to telecommunication regulatory bodies to promote better customer experience.
Language
English
OCDE Knowledge area
Sistemas de automatización, Sistemas de control
Economía, Negocios
Subjects
Scopus EID
2-s2.0-85095410405
ISBN of the container
978-172819377-9
Conference
Proceedings of the 2020 IEEE 27th International Conference on Electronics, Electrical Engineering and Computing, INTERCON 2020
Sources of information:
Directorio de Producción Científica
Scopus