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How the Smartphone Is Changing College Student Mobile Usage and Advertising Acceptance: A Seven-Year Analysis
Unformatted Document Text:  ringtones was the leading mobile content incentive; $1.00 for each ad accepted was the leading monetary incentive; and students chose coupons for a sit-down restaurant as the most desirable coupon or discount in the February 2011 survey, followed closely by fast-food restaurant coupons. The use of incentives is supported by a Harris Interactive (2008) survey that found 37% of U.S. adult mobile phone users are willing to accept incentive-based ads; 80% say the best incentive would be cash. Incentives are important, in part, because mobile is the only interactive medium where the user pays for the cost of network access (primarily in monthly usage fees) and for the content consumed. 2. More students are receiving mobile phone ads, and annoyance has increased disproportionately for feature phone users. One-half of students in the February 2011 survey report receiving ads on their mobile phone (48.3% feature phone; 54.2% smartphone). The incidence increased 14.7 percentage points during the study for feature phones, and decreased 6 percentage points for smartphones. Annoyance, as measured by asking those who received ads how it made them feel, increased 41.8 percentage points during the study for feature phone users, and 15.1 percentage points for smartphone users. The significant increase in annoyance to feature phone owners was disproportionate to the percentage increase of those students who reported receiving a mobile phone ad. The reason for the difference may be attributed, in part, to Internet access. Having a mobile phone that can access the Internet exposes users to ads on Internet Web sites and that contribute to an increase in ad annoyance. A cross-tab analysis of feature phone owners found that 38.3% say their phone can access the Internet, 19.3% say their mobile data plan includes Internet access, and 12.5% who report receiving an ad on their phone said it was from a link to the Internet. Interestingly, those who said they were neither pleased nor annoyed to get an ad increased for both phone types, jumping 21.3 percentage points for feature phones and 12.5 percentage points for smartphones. This indicates that while approximately two-thirds of mobile phone users report being annoyed to receive an ad, one-third indicate little annoyance. For those students receiving ads on smartphones, future purchases of products from businesses sending the ads were not greatly impacted, but 24

Authors: Hanley, Michael.
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ringtones was the leading mobile content incentive; $1.00 for each ad accepted was the leading monetary 
incentive; and students chose coupons for a sit-down restaurant as the most desirable coupon or discount 
in the February 2011 survey, followed closely by fast-food restaurant coupons. The use of incentives is 
supported by a Harris Interactive (2008) survey that found 37% of U.S. adult mobile phone users are 
willing to accept incentive-based ads; 80% say the best incentive would be cash. Incentives are important, 
in part, because mobile is the only interactive medium where the user pays for the cost of network access 
(primarily in monthly usage fees) and for the content consumed. 
2.
More students are receiving mobile phone ads, and annoyance has increased 
disproportionately for feature phone users. 
One-half of students in the February 2011 survey report receiving ads on their mobile phone (48.3% 
feature phone; 54.2% smartphone). The incidence increased 14.7 percentage points during the study for 
feature phones, and decreased 6 percentage points for smartphones. Annoyance, as measured by asking 
those who received ads how it made them feel, increased 41.8 percentage points during the study for 
feature phone users, and 15.1 percentage points for smartphone users. The significant increase in 
annoyance to feature phone owners was disproportionate to the percentage increase of those students who 
reported receiving a mobile phone ad. The reason for the difference may be attributed, in part, to Internet 
access. Having a mobile phone that can access the Internet exposes users to ads on Internet Web sites and 
that contribute to an increase in ad annoyance. A cross-tab analysis of feature phone owners found that 
38.3% say their phone can access the Internet, 19.3% say their mobile data plan includes Internet access, 
and 12.5% who report receiving an ad on their phone said it was from a link to the Internet. 
Interestingly, those who said they were neither pleased nor annoyed to get an ad increased for both 
phone types, jumping 21.3 percentage points for feature phones and 12.5 percentage points for 
smartphones. This indicates that while approximately two-thirds of mobile phone users report being 
annoyed to receive an ad, one-third indicate little annoyance. For those students receiving ads on 
smartphones, future purchases of products from businesses sending the ads were not greatly impacted, but 
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