Research: Personalization, not location, key to mobile ad success

Mobile users want to see ads that reflect who they are not where they are, according to a new survey in the U.S. by Luth Research for mobile marketing firm Upstream.

by Helen Leggatt

Despite the hype surrounding location-based messaging to mobile users personalization still trumps location-based messages. Of the 2,000 or so Americans surveyed for the research from Upstream 59% of feature phone users ranked personalization over timing (18%), lifestyle (16%) and location (8%).

Those with more sophisticated mobile devices responded similarly. Sixty percent preferred personalized offers over those based on timing (17%), lifestyle (10%) and location (14%).

The survey revealed other consumer advertising preferences among smartphone users, such as viewing ads for content for their mobile device, followed by movies/entertainment (including tickets), offers from their mobile service provider and consumer goods.

Feature phone users prefer offers from their mobile service provider, movies/entertainment (including tickets), content for their mobile device, consumer goods and offers from retail stores.

"While location remains an important factor in delivering mobile ads, tailoring interactions via mobile to consumers' 'tastes and interests' clearly presents much greater potential for driving higher response and conversion rates," said Assaf Baciu, Senior Vice President, Product Management, Upstream.

So which advertising channel works best? For smartphone users mobile coupons push all the right buttons and were quoted as the most influential channel followed by opt-in text messages. The reverse was true for feature phone users.

Tags: consumer insight, location-based advertising, mobile advertising, mobile marketing, personalization