Location-Based Ads, Please
According to a recent survey conducted by the Mobile Marketing Association (MMA) and Luth Research, consumers respond much better to location-based ads than to SMS and mobile Web ads.
The survey of 1,000 U.S. adult consumers, which was conducted in mid-March, found that 91 percent of respondents had a cell phone, and that 26 percent of this segment had used a “map, navigation or some other mobile phone service that automatically determines your current location.”
Nearly half of these mobile users who took notice of ads while using location-based services took at least some action. This was notably better than the 37 percent for ads noticed while sending or receiving text messages, and considerably better than the 28 percent for ads seen while browsing the mobile Web.
“The Consumer Briefing shows that consumers believe location-based services offer them significant benefits in functionality and relevance,” said Peter A. Johnson, vice president of market intelligence at MMA, and author of this study. “Consumers’ significant adoption and appreciation of location-based services opens up enormous new opportunities for brands and agencies to leverage this unique virtue of the mobile channel.”
The survey also found that 10 percent of cell phone users use mobile location-based services at least once a week, while 63 percent of Apple iPhone users used the same services at least once a week. Twenty-two percent of adults between the ages of 25 and 34 were frequent users of location services (i.e., they used them at least once a week).
Locating nearby points of interest, shops or services was the most common way to use these location services for most respondents. Also, consumers are willing to automatically share their location in exchange for things like free use of mobile apps and mobile coupons.
“Location-based services are a compelling audience engagement feature unique to the mobile platform,” said Jacqueline Rosales, executive vice president of business development and client service at Luth Research. “By providing more location-aware services and products, brands can now create a much more intimate presence in consumers’ life.”
While the term “location-based” may strike fear into the hearts of some apprehensive consumers, it’s clear that many are willing to dive into that pool of risk in exchange for some benefits.
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