In partnership with Luth Research, MMA surveyed 1,000 U.S. adult consumers from a demographically representative sample and found that, as of mid-March, 91% of the respondents have a cellphone and 26% of that group has used a "map, navigation or some other mobile phone service that automatically determines your current location," reads the MMA release on this data.
Perhaps more surprising is the level of engagement between these location-based service users and the geo-targeted ads. Nearly half of those who noticed ads while using a location-based service took some action.
Think about that for a minute and let it sink in.
For comparison purposes, a banner ad on the Web getting a 2% click-though rate (CTR) is considered fairly successful, but most campaigns now receive just 0.2%-0.3% CTRs.
That may not be a true apples-to-apples comparison, though. Location-based mobile ads don't necessarily have CTRs - they can be anything from standard Web banners to creative interactive video displays that respond as you move the phone around, such as was the case with the Dockers ad - the world's first "shakable" ad.
In fact, all forms of mobile ads do well. SMS ads saw 37% engagement, and ads seen while mobile Web browsing saw 28% engagement, notes the survey.
A few other interesting findings:
- 10% of cellphone owners use location-based mobile services at least once per week
- 63% of iPhone owners use location-based mobile services at least once per week
- Adults ages 25-34 are frequent users of location services, with 22% using them at least once a week.
- Consumers are interested in allowing their phone to automatically share their location in exchange for perks, such as free use of mobile applications and mobile coupons.