Nokia-owned global location content provider, Navteq, has revealed that local consumers are adopting the mobile platform for location-based advertising to be delivered to their smartphones.
The survey conducted by Galaxy Research in April this year showed two-thirds of consumers appreciate location-based offers to search for the best deals and save money on routine purchases.
Navteq vice-president of Oceania sales, Kirk Mitchell, said, “Tech savvy Australian consumers are pre-disposed to finding the best deals and location-based advertising offers them just that, as long as they offer real and immediate value.”
The survey showed three key findings from the trend:
- GPS usage on a smartphone is on the rise – 70 per cent of respondents with GPS capabilities use it two to three times per month or more. They indicated using it mostly for driving directions, showing their location on the map, walking directions and identifying shop, restaurant or a friend’s location.
Mitchell said location-based ads consider consumer demographics and their location to deliver customised ads. It also takes the hard work out of bargain hunting.
“Acting as a virtual storefront, a consumer can take advantage of an offer by simply clicking on their phone. If enabled, the click-to-navigate feature will then guide a consumer within a few metres of the shop, garage or restaurant,” he added.
- The appeal of an opt-in function – allowing consumers to choose if and when they obtain geo-targeted offers to their phone via SMS. Results showed 75 per cent of mobile phone users are willing to use the function, with 34 per cent of them saying they would leave the application switched on permanently and 41 per cent opting in when shopping.
It also shows an emerging trend of younger users accepting location-aware mobile offers. 83 per cent of respondents aged 18-34 specified using the function, with 49 per cent switching it on during shopping.
Universal McCann CEO, Mat Baxter, said the rise of smartphones had led to consumers wanting more from making calls or sending texts.
“Every day we use our phones to check-in and make our location known and this is paving the way for location-based services that can deliver highly relevant and timely discounts, promotions and coupons direct to our phones,” he said.