Developing location-based mobile advertising in Singapore: A socio-technical perspective

Increasing adoption of location-based services and smartphones leads to optimistic forecasts for location-based mobile advertising (LBA).This study investigates the development of emerging LBA in Singapore by examining stakeholders’ perspectives and shaping forces in the socio-technical subsystems (i.e., technology, market/industry, and government/regulation). In addition to document analysis, it conducts in-depth interviews with key industry players in the LBA value chain, policy-makers, and smartphone consumers in order to identify drivers and challenges in this nascent mobile business. The socio-technical analyses show that LBA in Singapore is technology-ready with government support and industry pull, while conservative advertisers, negative consumer attitudes, and insufficient regulations hinder LBA's diffusion. The results reveal that LBA at an early adopter stage in Singapore has a relatively convergent and competitive value chain, as telcos play a crucial part in creating and distributing LBA services. With a newly launched Personal Data Protection Act, smartphone consumers still show concerns about personal privacy, data security, and intrusive spam. Technical implementation and LBA effectiveness are major inhibitors for advertisers' adoption. The Singapore case offers market and regulatory implications for other mobile-advanced countries to develop mobile marketing, location-based services, and LBA. •The socio-technical framework is applied to examine emerging LBA in Singapore.•LBA in Singapore is technology-ready with government support and industry pull.•Only a few innovative advertisers adopt LBA, and majority of mobile consumers hold negative attitudes.•Insufficient LBA regulations raise consumers' concerns about privacy and personal data protection.•Socio-technical recommendations are made for other mobile advanced countries to develop LBA.