Location Based Advertising Increases Sales

Location BasedAdvertising Increases Sales

These are some of thefindings revealed in San Francisco-based JiWire’s latest Mobile Audience Insights Report, whichexamines location-based media engagement, the mobile device landscape andpublic Wi-Fi trends. The recent survey in Q4 2010 found that location-based adsare driving mobile shopping.

Location-basedservices and apps are increasingly important to mobile users on the go. Aspeople become more open about sharing their location with apps and services,they are realizing the benefits of providing information to receive relevantand timely ads.

According tothe survey respondents:

·       78%use location-based apps on their phone; 29% use them multiple times a day;

·       34%have clicked on an ad in response to a location specific message;

·       57%are more likely to engage with an ad that is relevant to their location – anincrease from 46% in Q1;

·       84% ofpeople who use app-enabled phones have participated in a shopping activity;

·       Onaverage, the mobile audience uses 1.6 devices to connect while on the go.

The report also found location-basedadvertising is driving consumers to physical storefronts, as evidenced by the20% of the on-the-go audience visiting a store in response to a location-basedad. While 42% of respondents are most likely to use location-based services forfinding store locations, as the discount in the ad increases, the more time acustomer is willing to travel to redeem the offer. This provides newopportunities for brands to attract new customers across a broader distance anddrive in-store traffic and sales, says JiWire management.