Location Based Mobile Phone Ads

old iphone
NAVTEQ, the global provider of maps, traffic and location data enabling navigation, location-based services, and mobile advertising around the world, has released results of a new survey that shows 78% of consumers welcome ads on their connected mobile devices when those ads are intelligent enough to know where the end-user is and can go on to guide them to nearby retailers and offers, and when the ads offset the cost of other high-value content.  This announcement also supports the business case of rival Google Places which might soon be providing free wireless location-based advertising applications and services.

Conducted by Marketing Research Services Inc. (MRSI), the survey showed that 78% of consumers are receptive to receiving location-intelligent Location Point ads to offset the cost of value-based content such as NAVTEQ Traffic, a six percent increase over the results of MRSI's first round of research on the subject published in November 2009. The new round of research yielded strong indications that again underscore the power of Location Point in converting passers-by to paying customers. Other findings show:
  • At least 42% of respondents that were exposed to a brand recalled seeing that brand (aided and unaided)
  • Thirty-one percent of respondents who reported seeing an ad on their device clicked on that ad for information to nearby locations
  • In a significant measure of impact, up to 31% of consumers seeing a specific ad went on to visit a store location; of those respondents who visited a location after seeing an ad, 53% said they did so directly because of the ad
  • Nine percent of respondents who visited a location because of seeing an ad reported it was a first-time visit to that location
  • Most desired ads were considered attractions/points of interest that provided a special offer or coupon, e.g. gas/fuel and restaurant offers
The MRSI-commissioned research surveyed 782 respondents 18 and older experienced with using ad-enabled personal navigation devices.

Launched 18 months ago, Location Point harnesses NAVTEQ's unrivaled location content and capabilities to pinpoint where consumers are, deliver ads and calls to action within a certain distance of advertised points of purchase, and guide them to the doorstep of an advertised retailer. Built-in calls to action including "click to map" and "click to navigate" bolster consumer engagement with ads, drive traffic to advertised locations and make the service unique.

"The survey indicates consumers are receptive and responsive to ads when those ads are contextually relevant. It shows strong, stable consumer acceptance of Location  Point -- and even suggests consumer acceptance grows with continued exposure," said Christopher Rothey, vice president, advertising, NAVTEQ. "Location Point's unique location intelligence is what drives that level of acceptance and make the ads measurably impactful."

Related Articles:
How Google Places Will Enable Free Wireless
Free Ad-Supported Wireless Access in the U.S.
Facebook Mobile Ads vs. Dumb Pipes