Brand Communication with Branded Smartphone Apps: First Insights on Possibilities and Limits

Abstract
Branded apps represent a new possibility for enhancing brand image and service satisfaction. Compared with other forms of advertising, branded apps are welcomed as useful. Consumers are often more engaged with such apps, and therefore their users tend to process brand-related information more deeply and for a longer time than during passive consumption of other media. Research confirmed that app interaction consistently improved brand attitude, purchase intention and involvement in the respective product category. Remarkably, not only the brand itself, but the general interest for the whole category, was positively affected. Even though the results are promising, there are some “real world” issues that might limit the branded app’s success. First, it is becoming increasingly challenging for companies to ensure a new app is noticed when there are several hundred thousand others available. Second, to actually be used by consumers on a regular basis, the apps need to provide real benefits.