Location-based advertising and mobile phone vouchers will be the key to the future of advertising and promotions, according to a survey commissioned by navigation and location data specialists NAVTEQ.
Three-quarters of Australian mobile phone users indicated they would be open to receiving location-based offers when shopping, a nod to a geo-targeted marketing future. One in three (34%) said they would permanently leave the application switched on. Another 41% of respondents indicated they would opt-in when shopping.
Younger consumers, in the 18-34 bracket, were more likely to accept geo-targeted ads, with 83% indicating they would use the function and 49% of those consumers switching it on when shopping.
“Advertising is not just going mobile, it is going local. The NAVTEQ survey shows that Australians are open to receiving location-based discounts and promotions in the form of display advertising on the phone, as long as they offer real and immediate value,” said Kirk Mitchell, vice president of Oceania Sales, NAVTEQ. “When offers are location-targeted, they become that much more relevant for a consumer.”
For businesses, the convenience of location-based advertising and promotions means consumers are more likely to respond to marketing, said Mat Baxter, CEO of advertising agency Universal McCann.
“Location based mobile services is undoubtedly seen as a key development on the horizon for the advertising industry,” he said. “Location targeting enables the advertiser to meet consumers where they are at times of great relevance in the consumer experience, at the point of purchase.
Contextual advertising offers “real value” to both advertisers and consumers and this “leads to greater conversion and a better experience with the brand,” Baxter noted.
More than half of respondents listed petrol as their number one discount request, followed by meal and restaurant discounts, groceries and fast food.
The survey results also showed an upward trend for the use of GPS on mobile phones with 70% of those who owned phones with GPS capabilities using it 2-3 times or more a month . GPS services were activated to find directions for driving or walking, and to find nearby shops and restaurants.
“As GPS integration on phones to continues to increase, location targeting presents an unprecedented opportunity for advertisers to target consumers when they are near a point of purchase and then route them to a merchant’s location,” said Mitchell. “This level of contextual targeting transforms mobile into a direct response channel for brick and mortar merchants.”