Warren, January 11, 2011 – Despite the popularity of location-based services among Smartphone users, location-based advertising and promotions are surprisingly slow to catch on, according to a new mobile survey from Lightspeed Research.
Thirty-seven percent of respondents on Lightspeed’s Mobile Consumer Panel had checked in using a location-based application during the past six months – with the percentage jumping to 54 percent for 18-24-year-old males. The (52 percent) had checked in with Facebook Places, while eighteen percent were using FourSquare and 12 percent were using Google Latitude. Just under one-third of location apps users check in at least once a day (31 percent), with 21 percent saying they check in several times per day. The most popular locations for people to check into through location based apps were at home (52 percent), at a restaurant (50 percent), at a store (40 percent) and at work (39 percent).
Most users of location-based apps are motivated to do so by social concerns: 29 percent said they use them to pass time, 22 percent want to publicize their locations to friends or want to locate their friends (10 percent).
Only nine percent of the respondents used location-based services to get coupons or special offers. Only two percent used them to win prizes or enter raffles, while the novelty of game-like activities such as collecting points/badges, and becoming “Mayor” seems to be wearing off.
A further indication that location-based promotions might still have a long way to go is the fact that the majority of respondents (56 percent) haven’t responded to any location-based promotions in the past six months.
Even though adoption is still low at the moment, opportunity exists for businesses to attract customers via location-based apps. Eighty-five percent of location based apps users said they would be likely to visit a store or restaurant if they received a coupon or free item for checking in nearby. This idea had appeal across all age groups.
“The increasing popularity of location-based services offers marketers a way to reach a very substantial audience on their most personal electronic device”, commented Chris Urinyi, Lightspeed Research CEO, The Americas. “When it comes to location-based promotions, the majority of our respondents show interest in patronizing a nearby business if given a coupon or a freebie, yet less than half report they’ve actually responded to a promotion in the last six months. This hints that brands have a real opportunity to leverage location-based apps by learning even more about the expectations and needs of mobile phone users – and fine tuning their marketing efforts accordingly.”
For press inquiries please contact:
Naor Chazan, Marketing Director, The Americas – Lightspeed Research
nchazan@lightspeedresearch.com Tel: (908) 605-4480
Corinna Stadel, PR Consultant – Greenfields Communications
cstadel@greenfieldscommunications.com Tel: 001 4040 865 1423
Note to Editors
This survey was conducted in November 2010 and is based on 4,768 respondents using Lightspeed Research’s US Mobile Phone Panel.
About Lightspeed Research
Lightspeed Research (www.lightspeedresearch.com) is the market researcher’s choice for digitally accessing and deriving insight from consumer opinions and behaviors whenever, wherever and in whatever segments needed. The industry’s most thorough panelist pre-screening process and large global pool delivers business-ready results quickly and cost-effectively. From proprietary online access panels to specialty panels, custom panels and innovative mobile surveys, Lightspeed Research offers the industry’s highest-quality and most complete combination of qualitative and quantitative online research. This is backed by an expert client operations team that provides a range of data collection services, from sample management and survey design to programming and reporting. Part of Kantar, a division of WPP, Lightspeed Research serves clients and cultivates online panelists across the Americas, Europe and Asia Pacific.
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