Two thirds of Australian consumers like to receive location-based offers when shopping, according to a new report, with petrol, restaurants, groceries and fast food the most popular items for location-aware advertisements.
Market research company Galaxy Research conducted a survey on behalf of NAVTEQ, a global provider of digital maps and map content.
The survey, based on the responses of 606 Australians, reveals two-thirds of consumers find it appealing to receive location-based offers on their mobile phones when shopping.
When asked what types of products they would most like to receive location-aware ads for 51% identified petrol discounts, followed by meal and restaurant discounts, groceries and fast food.
NAVTEQ says location-based advertising, via smartphones, presents a range of exciting marketing opportunities for businesses to reach consumers.
Kirk Mitchell, NAVTEQ vice president of Oceania sales, says advertising is not only going mobile, it is going local.
“Australians are open to receiving location-based discounts and promotions, in the form of display advertising on the phone, as long as they offer real and immediate value,” Mitchell says.
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“When offers are location-targeted, they become that much more relevant for a consumer.”
The survey also reveals that GPS usage on smartphones is on the rise, with 70% of respondents saying they use GPS capabilities two to three times a month or more.
While GPS is most commonly used to get directions while driving, more consumers are relying on GPS to identify the location of shops and restaurants.
“As GPS integration on phones continues to increase, location targeting presents an unprecedented opportunity for advertisers to target consumers when they are near a point of purchase and then route them to a merchant’s location,” Mitchell says.
“This level of contextual targeting transforms mobile into a direct response channel for bricks and mortar merchants.”
The survey also assessed the appeal of an opt-in function, which allows consumers to decide if and when they would want to receive ads to their phone, sent by SMS.
According to the survey, 75% of mobile phone users are willing to use this function, with 34% saying they would permanently leave the application switched on.
A further 41% would opt-in when shopping; 83% of those aged 18 to 34 indicated they would use the function, with 49% switching it on when shopping, suggesting younger users are more inclined to accept location-aware mobile offers.
Mat Baxter, chief executive of media agency Universal McCann, says location-based services are undoubtedly seen as a “key development on the horizon” for the advertising industry.
“Location targeting enables the advertiser to meet consumers where they are at times of great relevance in the consumer experience, at the point of purchase,” McCann says.
“This type of contextual advertising offers real value to advertisers and consumers alike, which in turn leads to greater conversion and a better experience with the brand.”