Location-based ads drive mobile shopping

The majority of mobile users (84%) participates in shopping on their device while on the go, according to new research.

JiWire, a location-based mobile media company, examined location-based media engagement, the mobile device landscape and public Wi-Fi trends.
The recent survey in Q4 2010 found that location-based ads are driving mobile shopping, with 17 percent of the on-the-go audience making purchases while mobile and 20 percent visiting physical store locations after seeing a relevant advert.
Additionally, the greater the discount offered, the further the mobile audience is willing to travel to redeem a promotion.
Mobile Users Want More Location-based Offers
Location-based services and apps are increasingly important to mobile users on the go. As people become more open about sharing their location with apps and services, they are realizing the benefits of providing information to receive relevant and timely ads. According to the survey:
• 78 percent use location-based apps on their phone; 29 percent use them multiple times a day
• 34 percent clicked on an ad in response to location specific message
• 57 percent are more likely to engage with an ad that is relevant to their location, an increase from 46 percent in Q1
• 17 percent have made a purchase in response to a location-based advertisement
• 84 percent of people who use app-enabled phones have participated in a shopping activity
• On average, the mobile audience uses 1.6 devices to connect while on the go
Location Based Advertising Drives Store Traffic
The report also found location-based advertising is driving consumers to physical storefronts. Twenty percent of the on-the-go audience visited a store in response to a location-based ad. Forty two percent said they are most likely to use location-based services for finding store locations.
As the discount in the ad increases, the more time a customer is willing to travel to redeem the offer. This provides new opportunities for brands to attract new customers across a broader distance and drive in-store traffic and sales.
“Consumer demand for location-based services and reception to location-based advertising continues to increase dramatically, with companies like Groupon, Facebook and now even Google getting into hyperlocal deals,” said David Staas, SVP of Marketing at JiWire. “Localized ads help consumers find the best deals and venues in their area and as location-based services become more mainstream, people are becoming more willing to give their location to reap the benefits of relevant promotions and discounts.”
Mobile Device Landscape – Rise of the Tablet
The introduction of the iPad in 2010 has not only taken marketshare away from other top mobile devices, including the iPhone and iPod Touch, but is also starting to become the primary device for people on the go. From Q2 to Q4, laptops decreased 26 percent as the primary device used to connect to public Wi-Fi, while the iPad, along with other tablets, increased 10 percent and gaming devices (including the iPod Touch) grew 7 percent.
The top Android devices in the U.S. have become the LG Optimus and the HTC Evo, both running on the Sprint 4G network, while the Droid Incredible and Desire have taken the No. 8 and No. 10 spots respectively.
Android continues to increase in marketshare, with 7.7 percent of ad requests. While Apple iOS still has a strong hold as the top operating system, its share of the mobile device market dropped below 90 percent for the first time. In comparison, the Apple iOS in the U.K. maintains 83.7 percent of the marketshare, with Android accounting for 12.3 percent.
Wi-Fi Hotspots Grow in China
While the U.S. has continuously been the top market for Wi-Fi usage, China has exceeded the U.S. for the first time, with a 157.7 percent increase since Q3. The number of public Wi-Fi locations worldwide considerably increased over 2010, growing to more than 414,000 hotspots, a 43.1 percent increase from last year. Additionally, from Q3 to Q4, there was the most growth in locations during the year, increasing 22.7 percent.
Methodology
JiWire’s Mobile Audience Insights Report is based on data from approximately 450,000 public Wi-Fi locations, as well as a survey of more than 3,000 customers randomly selected across JiWire’s public Wi-Fi Media Channel from October 2010 – December 2010. JiWire serves advertisements to 40 million unique users across location-based apps and public Wi-Fi locations in North America and the United Kingdom and records data from every ad request.
This report is based on the ad request data collected from October 2010 – December 2010. Quarterly public Wi-Fi location rankings and business model distributions are based on the final day of the quarter.
Source: www.JiWire.com
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