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Promotional Products Home Promo University^® Independent Study How Cell Phones Affect Business & Advertising

How Cell Phones Affect Business & Advertising

Alyssa Mertes

Promo Expert

Published: February 12th, 2019

Updated: April 22nd, 2019

In this day and age, advertising is all over our cell phone screens. It’s no surprise, really. We’ve gone from just texting and calling people to basically having a mini computer in our hands. If you’re a business owner, it makes sense to put your ads where people are going to see them, and in this digital world, that’s right on our phones.

What’s the cell phone’s role in marketing? How is it affecting business? Place that call on hold – it’s time to discuss the impact cell phones have on advertising and the business world!

The cell phone’s ability to spread information is fundamentally changing lives.

– Andrea C. Nakaya, author of How Do Cell Phones Affect Society?

What Can Consumers Do On Their Cell Phones?

Before you can truly understand why the cell phone is a force in the business world, you need to understand what consumers are doing with their devices. People are using their phones for more than just selfies, status updates, and cat memes. They are changing business by doing the following:

Paying for purchases
Shopping
Sharing posts with friends and family

Paying for Purchases

Many banks and financial services are introducing the concept of mobile wallets, which are defined as “virtual wallets that store payment card information on a mobile device.”

This payment info is stored through a downloadable app on your smartphone. It works via transfer technology (known as near-field communication), which interacts with payment terminals and successfully reads your card information. Think of it like your phone doubling as your credit card.

Most phones come with an app that makes it easy for you to access your mobile wallet.

Smart Paying Options

Launched October 2016
Available on iPhone 6, newer iPhones, Apple Watch, MacBook Pro, and iPads
Supports gift cards and loyalty cards
Accessed via passcode, Face ID, or Touch ID
Receipts stored in wallet app

Launched in February 2018
Formerly known as Android Pay and Google Wallet
Accessed via passcode, fingerprint authentication, PIN, or pattern
Supports gift cards and loyalty cards
Available on most Android devices

Launched in September 2015
Functions with payment readers that use old magnetic stripe technology on credit and debit cards
Accessed via PIN, fingerprint, or iris scan
Available on select Samsung-made Android phones

Pros

Supported by 50% of retailers
Available in over 20 countries
Each transaction has security code to prevent identity theft
Supported by all major banks in the U.S.

Users can send and receive money
Supported by over 1.5 million retail locations and 1,000+ banks and credit unions
Each transaction has security code to prevent identity theft
No transaction fees

Widely accessible in retail stores due to Magnetic Secure Transmission (MST) technology
Each transaction has security code to prevent identity theft
Works at more than 350,000 retail websites

Cons

Only available for Apple products
Works on older iPhones only with an Apple Watch
Might not be available at smaller banks or credit unions
May charge fee for quick-paying friends

Available on phones that already use Google Pay
Doesn’t contain passcode option for access
Doesn’t work at gas stations or ATMs
Stripe can sometimes be difficult to activate

Only available for Android users
Available in only a few countries
Transaction begins when you’re in close proximity to an NFC (near-field communication) terminal

To date, about 90 million Americans are using these services to pay for their purchases. Some banks, credit unions, and stores also have their own mobile wallet apps, such as Chase Pay and Walmart Pay.

Overall, it’s a technology that’s becoming more and more popular. If your business supports this payment method, you should definitely make it known in your advertising.

Shopping ‘Til They Drop

Consumer buying habits are being affected by the ease of ordering online with a cell phone. It’s super easy to hop on your phone and get anything under the sun delivered to your house, from clothes and electronics to groceries and singing telegrams.

In 2015, Lee Hao Suan Samuel and colleagues from Taylor’s Business School published a study in The Journal of Internet Commerce about online shopping. The team wanted to see how the user experience affects a customer’s shopping decisions. In gathering their data, they followed the conceptual framework pictured below.

A total of 148 respondents completed an online survey answering a few questions about their shopping habits. The survey contained questions about the website’s visual appearance, the person’s feelings about shopping, how much they trusted the site, and their overall purchase intentions.

It was found that “online experience influences purchase intentions directly and indirectly through trust.” Male shoppers were more inclined to trust a website if they had a good online experience vs. females. Interestingly enough, though, trust had a greater impact on purchase intentions for females than males. In other words, men are more likely to trust a website with a good user experience, but women are more likely to actually make the purchase.

As a business owner, it’s important to keep everyone in mind when creating your website, especially for mobile since that’s where many people are doing their shopping. In fact, about 200 million people shopped from their phones in the United States in 2018. A good mobile website could mean all the difference between someone shopping with you or going to a competitor instead.

By focusing on shopping experience, online retailers may attract more customers to visit the online shopping website, to browse products online, and ultimately increase online sales.

– Lee Hao Suan Samuel, author for The Journal of Internet Commerce

Sharing With Friends & Family

The cell phone helps us connect with more than just our family and friends. We can also build a relationship with a business by following them on social media, checking out reviews, and keeping track of trending news.

If the company gets our attention in a positive way, it only takes the click of a button to spread the message. When the deal is good enough, or the business is offering something unique, it could easily become a trending sensation. A business’s ad can be sent through text messages, emails, or social media posts, all from a person’s phone. From there, it’s a domino effect of people sharing the content over and over again.

This is important as 35% of people share content because they want to influence others and a majority of them accomplish that goal. Not to mention, a staggering 83% of people trust the recommendation of friends and family above anything else. Word-of-mouth is incredibly important, so make sure your business is worthy of being shared on mobile.

The capacity to have all information at our fingertips may be a more profound benefit of the cell phone than the opportunity it provides to converse with anyone, anytime, anywhere.

– Paul Levinson, author of The Story of the World’s Most Mobile Medium and How It Has Transformed Everything!

Where Can You Advertise?

As you can see, people are spending a crazy amount of time on their cell phones. They are making purchases with mobile wallets, shopping online, and sharing interesting content. People are looking at their phones all the time, so it only makes sense to get their attention by advertising on popular apps and services.

These platforms offer that opportunity:

Social media sites like Snapchat, Facebook, Instagram, and Twitter
Google
YouTube
Spotify
Other apps

Social Media

Social media platforms like Facebook, Twitter, Instagram, and Snapchat offer a unique opportunity for business owners. Each of these mediums has some kind of business center, which makes it easy to target audiences, offer coupons, sponsor posts, and engage directly with customers.

Here’s a full breakdown of what each platform offers:

Facebook

Social Media Advertising

Ability to target very precise audiences based on gender, industry, age, location, interests, behaviors, engagement, and more
Popular Feature: Facebook Insights
- Discover which posts work the best
Ability to schedule automatic posts

Try it out: Facebook Business Manager

Twitter

Target specific audiences based on gender, industry, age, location, etc.
Popular Feature: Promote Mode
- Automatically promotes posts to engage wider audience
Ability to schedule automatic posts

Try it out: Twitter for Business

Target specific audiences based on gender, industry, age, location, etc.
Popular Feature: Instagram Stories
- Takes full use of mobile screen with product stickers and tags
Ability to schedule automatic posts in Facebook Business Manager

Try it out: Instagram Business

Target specific audiences based on gender, industry, age, location, etc.
Popular Feature: Sponsored Lens
- Create a custom filter for your posts
Ability to schedule automatic posts

Try it out: Snapchat’s Business Center

The Power of Social Media Marketing

As long as you stick to the rules of each social media platform, this is an extremely lucrative way to advertise your business. About 2.34 billion people around the world are on social media, which means you have a lot of reach with this marketing strategy.

If these numbers tell you anything, it’s that social media is a popular form of advertising for businesses. Most people check these platforms from their phones as it’s convenient and helps them stay constantly connected. In fact, 80% of smartphone users check their devices before even brushing their teeth in the mornings. One of the first places they go is to social media, meaning your company can make an impression bright and early.

In recent years, social media has become an important part of people’s daily lives and, therefore, firms’ marketing programs.

– Yuchi Zhang, author for Journal of Marketing

Google

Have you ever been in a heated argument over which actor was in a movie? It’s easy to prove your friends wrong with a quick Google search. Of course, we use this search engine for more than just settling debates. From getting directions to playing music, there’s nothing this technology can’t accomplish. That’s why Google accounts for 96% of all searches that take place on cell phones.

Since people are spending a lot of time on this search engine, many businesses turn to Google Ads, or PPC (Pay-per-Click), to market their products or services. These ads show up in search results with specific keywords, also known as Google AdWords, which allow advertisers to bid on search terms in order to make their clickable ads appear. For example, if you have a business that sells wedding favors, your ad might appear if someone searches for “affordable wedding favors.”

Google is a massive influence in the marketplace, and with people spending so much time on the search engine, it only makes sense to use it to help advertise your business.

YouTube

It’s also very common for brands to place ads before YouTube videos. People can be watching a funny video about cats, see an ad for a new Cajun restaurant, and immediately know where to go for dinner. They can check Google Maps, pull up direction, and download a Groupon before they go, all right from their phones!

YouTube offers three different types of ads

1
TrueView In-Stream Ads
The ads are 30 seconds long and typically feature voiceover or some kind of narrative. The “Skip This Ad” comes after five seconds.

TrueView Discovery Ads
Your ad shows up in YouTube search results, on the YouTube homepage, and alongside related videos.
2
Bumper Ads
These are 6-second video ads that work best on mobile. Since they are short and sweet, they are heavier on visual content.
3
Pre-Roll Ads
The audience will watch until the end since these ads are non-skippable and pay-per-click. The videos are typically 15-20 seconds in length.

YouTube advertising has been successful for many businesses. In fact, 62% of ad time on YouTube mobile received the viewer’s attention, compared to only 45% of TV commercials. It just goes to show people are spending more time watching videos on their phones than watching TV.

Learn how a small town quilt shop owner used YouTube to advertise her company!

Spotify

Go back to the old-fashioned days of radio by advertising on Spotify. This music streaming service has over 83 million users, making it a great place for a business to run their ads.

Spotify makes advertising extremely easy for businesses. You just have to submit a script and they take care of the voiceover and music mix. From there, the business chooses who to target based on age, gender, location, activity, and music taste. They also set their campaign dates and budget for the audio ads.

If you choose to advertise on Spotify, you can expect your ad to be heard over and over again. These are often repeated as a person listens to their playlists from their phone at work, home, or in the car. This is extremely important as according to Forbes “by repeating the same ad, a brand gains incremental reach and increases its recallability.” Like a great song, you want your ad to be on repeat!

Other Apps

Keep in mind, most apps allow you some ability to advertise. These typically show up as banners, videos, or quick pop-ups in your downloads. If you’ve ever played a game on your phone, you might be familiar with these little blurbs coming up on your screen.

In-app advertising is usually a good way for other apps and mobile services to get attention. However, some businesses have used this medium to advertise their services and products as well. This is usually done through external sources like AdColony, a mobile advertising company that allows advertisers to create targeted video ads that automatically show up in Android installs.

These ads typically show up in the most popular apps, which includes social media platforms, YouTube, and Spotify. Still, though, you’ll see your ads pop up in other popular apps like Skype and Candy Crush. Overall, it’s another way to reach your audience while they’re spending time on their phones.

Branding with Phone Accessories

Not only can businesses advertise with mobile ads, but also with branded mobile accessories. Since these items are on the outside of the user’s phone, other people can see the logo design and ask questions. Plus, the cell phone’s owner can be reminded of your company every day when they pick up their phone.

You can add your logo to any of these mobile accessories!

Cell phone wallets
These cash holders stick to the back of your phone via adhesive and come in many bright colors and unique shapes.

Phone stands:
A phone stand holds your phone while it’s sitting on your desk or counter. Since they come in creative styles, you can find one that matches your personality.

PopSockets™
PopSockets™ are a trendy mobile accessory that make it extremely easy to watch Netflix or viral videos from your cell phone without holding it the whole time.

Phone cases
Protect your device by securing it in a phone case. This is essential if you’re prone to accidentally dropping your phone.

Mobile chargers
It always seems like our cell phone batteries are running out of juice. That’s why it’s useful to have a portable charger on hand.

How Are Cell Phones Changing the World?

All this technology makes spending easier and more efficient than ever before. With cell phone advertising, people have more direct access to the products that are being marketed. If you saw a billboard for Nike shoes, you would have to drive to a store to buy them. Now, you can see the ad on Facebook or hear about it on Spotify and go right online to order those kicks from your phone. Everything we possibly need is right in the palm of our hands.

Stats for Success

By 2019, mobile advertising is expected to represent 72% of all U.S. digital ad spending.

80% of internet users own a smartphone.

57% of people won’t recommend a business with a poorly-designed mobile site.

71% of advertisers believe mobile marketing is key to their business.

The Bottom Line

Advertising isn’t like it used to be when lithographed signs decorated the sides of barns and highways. Today, a vast majority of businesses target consumers on their cell phones. With the entire world on our screens, it only makes sense to go digital!

Alyssa Mertes

amertes@qualitylogoproducts.com

866-312-5646 x 277

Alyssa is the Lead Copywriter at Quality Logo Products. She has a BA in English & Communications and has written for Counselor Magazine and The Bolingbrook Sun. If you need her, you’ll find her buried in research, in the middle of a phone interview, or singing way off-tune in her office.

References

Nakaya, A. (2015). How Do Cell Phones Affect Society? Preference Point Press: San Diego, CA.

Investopedia. (2018). Mobile Wallet. Retrieved October 30, 2018, from https://www.investopedia.com/terms/m/mobile-wallet.asp

Chase for Business. (2018). Mobile Wallet Technology. Retrieved October 30, 2018, from https://merchantservices.chase.com/support/faqs/mobile-wallet-technology

Callaham, J. (2018, June 8). Android Pay vs Apple Pay vs Samsung Pay: Pros and Cons. Retrieved October 30, 2018, from https://www.androidauthority.com/android-pay-vs-apple-pay-vs-samsung-pay-2-688041/

Uzialko, A. (2018, October 4). Mobile Wallet Guide: Google Pay vs. Apple Pay vs. Samsung Pay. Retrieved October 30, 2018, from https://www.business.com/articles/google-pay-vs-apple-pay-vs-samsung-pay/

Weisbaum, H. (2018, August 13). 90 Million Americans Use Mobil Pay Apps – But Are They Safe? Retrieved October 30, 2018, from https://www.nbcnews.com/business/consumer/90-million-americans-use-mobile-pay-apps-are-they-safe-n900146

Boyle, C. (2013, October 17). Addicted to Your Smartphone? You’re Not Alone. Retrieved October 31, 2018, from https://www.cnbc.com/2013/10/17/addicted-to-your-smartphone-youre-not-alone.html

Zhang, Y., et. al. (2017, November 1). Online Shopping and Social Media: Friends or Foes? Journal of Marketing, property of American Marketing Association: Chicago, IL.

Samuel, L. (2015, April 1). An Investigation of Online Shopping Experience on Trust and Behavioral Intentions. Journal of Internet Commerce, Taylor & Francis Ltd: UK

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Shop All Business Promotional Items

How Cell Phones Affect Business & Advertising

What Can Consumers Do On Their Cell Phones?

Paying for Purchases

Smart Paying Options

Pros

Cons

Shopping ‘Til They Drop

Sharing With Friends & Family

Where Can You Advertise?

Social Media

Social Media Advertising

The Power of Social Media Marketing

Google

YouTube

YouTube offers three different types of ads

Spotify

Other Apps

Branding with Phone Accessories

How Are Cell Phones Changing the World?

Stats for Success

The Bottom Line

Alyssa Mertes