Sales Impacts of Location Based Advertising Using Wireless Communication Technology

Using wireless communication technology, location-based advertising (LBA) is booming recently. Most LBA researches are cross-sectional analysis studying only contemporaneous impacts, which might seriously underestimate advertisings' efficacy in the long run. Complementary to these researches, we employ a company archival dataset to explore LBA's and PUA's (Pop-up Advertising) sales impact in both contemporaneous and long run terms. The developed dynamic structural equation model reveals that (1)in terms of magnitude, LBA's efficacy is stronger than that of PUA both contemporaneously and accumulatively; (2) in terms of persistent time, while LBA only have contemporaneous impact, PUA' s impact lasts for 9 days. Theses empirical findings would help managers to allocate advertising budget efficiently while using wireless communication technology.