Mobile Users Respond To Location-Based Ads, Coupon Biz To Hit $57 Billion in 2014

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A new survey of U.S. adults found about one-quarter have used location-based mobile services. The Mobile Marketing Association survey, conducted in partnership with Luth Research, also found that mobile users are more likely to respond to mobile advertising delivered with location-based targeting than regular ads.

Overall, 91% of American adults own a cell phone, the survey found. Within this group, 26% (23.7% of the total survey group) have used a map, navigation tool or some other mobile service that determines their location.

While 10% of cell phone owners (9.1% of the total) use a mobile location-based service at least once a week, the number is much higher for iPhone owners: 63%. In terms of age cohorts, adults ages 25-34 were the heaviest users of location-based services, with 22% doing so weekly.

Most respondents said that they used location-based services to locate nearby "points of interest, shops, or services." What's more, roughly half of those who noticed ads during their use of a location-based mobile service took some kind of action. That's substantially more than the 37% who took action while sending or receiving text messages and the 28% who did so while browsing the mobile Web.

Separately, a new report from Borrell Associates titled "Local Mobile Advertising & Promotions Forecast" predicts that mobile marketing will enjoy explosive growth over the next four years, driven largely by local mobile coupons.

Borrell sees mobile coupons growing from $2.7 billion in 2009 to $57 billion in 2014, for a cumulative annualized growth rate of 84% per year. Mobile advertising will grow from a $285 million business in 2009 to $11.3 billion by 2014 -- increasing from about one-tenth of total mobile spending to about one-fifth.

The Mobile Marketing Association surveyed more than 1,000 American adults.

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3 comments about "Mobile Users Respond To Location-Based Ads, Coupon Biz To Hit $57 Billion in 2014".
  1. Peter Saridakis from CommunityKard , April 22, 2010 at 8:12 a.m.

    Makes sense. Think about how many potential serivces, stores, etc that are around your "location" that can offer some type of discount while on your way to an entertainment venue or just out casual shopping or meeting friends.

  2. Laird Garner from Garner Consulting, LLC , April 22, 2010 at 3:07 p.m.

    There appears to be a major error in the data reported in this article. The report summary does not say "mobile coupons" will grow to $57B by 2014. Rather "mobile marketing" will, which includes all of mobile advertising, and presumably apps and other mobile technologies designed to market products and services.

  3. Howie Goldfarb from Blue Star Strategic Marketing , April 22, 2010 at 3:54 p.m.

    I hope your right Laird I was going to slam the story for claiming $57 bil in mobile coupons so fast.