Influence of Location-​Based Mobile Ads Growing

Yesterday, I highlighted the recently-​issued Borrell Associates study regarding the importance of local mobile marketing. Last week, another research shop released solid numbers demonstrating the growth in consumer use of mobile location services. The Mobile Marketing Association (MMA) and partner Luth Research say that over 26% of the 91% of U.S. mobile phone owners currently use “map, navigation or some other mobile phone service that automatically determines your current location.”

While consumers are using the location-​based services, they become a captive audience for advertising. The study indicates that consumers have a favorable response to these ads when compared to other settings. For example:

  • Noticed ads and take action in location-​based setting: Over 50%
  • Noticed ads while sending/​receiving text messages: 37%
  • Noticed ads while browsing Web sites: 28%

For now, the consumers most likely to use location services are between the ages of 25–34. And these consumers use the services to find shops or other points of interest at least once a week.  One way to capture these consumers, as also mentioned in the Borrell Associates study, is to hand out a free mobile coupon in exchange for capturing their location. And as more consumers grow comfortable using smart phones and location-​based services, mobile advertising will likely be adopted by more marketers.
[Source: U.S. Consumers Significantly More Likely to Respond to Location-​Based Mobile Ads Than Other Mobile Ad Types. Mobile Marketing Association. 21 Apr. 2010. Web. 27 Apr. 2010.] 

Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.