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BizReport : Mobile Marketing : April 26, 2010

MMA: Location-based mobile ads outperform other formats

Location, location, location. Not just a motto used by real estate agents but now also a mobile marketing mantra. New research from the Mobile Marketing Association and Luth Research has found location-based mobile marketing to yield significantly more response than other mobile ad formats.

by Helen Leggatt

mma_logo_new.jpgAccording to the research while 28% of mobile phone users noticed non-targeted ads on mobile websites, and 37% noticed non-location-based ads while text-messaging, nearly half took some kind of action when presented with a location-based targeted ad.

"Consumers believe location-based services offer them significant benefits in functionality and relevance," said Mobile Marketing Association market intelligence VP Peter Johnson.

Around 10% of mobile users utilize a location-based service once a week - whether it is a map or business-location service. However, younger consumers are far more enthusiastic with 22% of those aged between 25 and 34 using location-based services once or more each week.

"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," added Johnson.

Other key findings from the Mobile Marketing Association's survey include:

- 63% of Apple iPhone owners use location services at least once a week

- Respondents said they use location-based services most frequently to "locate nearby points of interest, shops or services"

- Consumers are interested in allowing their phone to automatically share their location in exchange for a reward, such as free mobile applications and mobile coupons.

Tags: location-based services, mobile marketing, mobile phone

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  • Thank you for posting these interesting findings, to provide reputable validation for the many companies out there beginning to catch the mobile marketing wave. Location-based mobile advertising is the one of the most effective ways to get new users to check out your new mobile campaign. At Globaltel Media we've seen particular interest from our retail customers to be able to provide specific product details and mobile couponing to their customers remotely. By providing customers with on the spot, actionable information about products, retailers are able to build a bond and level of trust with customers, increasing the chances of purchase and brand loyalty. It'll be exciting to watch how mobile technologies continue to advance in retail to help customers make educated purchases. Thanks again for the post!



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