An in depth study of in-app location-based advertising of Generation Y in Germany
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MA of Business Administration
Dublin Business School
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New technical developments and outstanding innovations improve not only people’s lives but also marketer’s goal to contact target groups more precisely. In-app location-based advertising (LBA) is one of those inventions. As the smartphone market in Germany is in a constant rise and with that high app downloads and usage, it represents a brilliant opportunity to base new marketing tools on that. Especially when trying to reach Generation Y marketers believe in the huge potential of Mobile Marketing. However, when new techniques and tools occur threats are not long in coming – privacy concerns and data protection build one of these problems. Although some laws try to fix the protection gaps, industry does not always bear the guilt. In general it is not common amongst German Generation Y to read privacy policies even not when downloading new applications on their smartphone. Nonetheless, Gen Yers are afraid and concerned about location-based data usage by third parties. This conflict catches the researcher’s attention and built the foundation for the at hand observation. The survey found out that marketer’s belief of the efficient in-app LBA is currently not justifiable in all situations. Instead the survey discovers a general negative attitude towards in-app advertising especially when knowing app-providers utilizes user’s locations. In any case, there is still hope for companies successfully using in-app LBA. The decision-making process and the situation a user receives in-app LBA plays an important role in the acceptance of it. Generation Y does not hate advertising in general just those which are irrelevant for them.