By: Ian Mansfield | 20th Jun 2011
http://www.cellular-news.com/story/49651.php
The acceptance of advertising in navigation apps is high in Europe - 67% percent of consumers said they valued promotional offers in exchange for free use of their favourite content, according to a survey commissioned by Navteq.
The objectives of the study were to determine what types of dynamic and other location content appeal most to users, measure tolerance for mobile ads in exchange for content, and understand consumer perceptions of various forms of advertising when integrated within the navigation experience.
The research found consumers placed the highest value in - and said they most often use - real-time traffic services. The insight is significant in that it suggests location-based mobile ads served in the context of traffic services command a higher degree of consumer use and attention and may provide a higher return on investment for advertisers.
The most valued content services are traffic information, area incident notification, petrol station locator, parking locator, and interactive 3D data-modelled maps of complex interior spaces such as those that are available through Navteq's recently launched Destination Maps. The majority of survey respondents expressed they would use interior maps like Destination Maps at least once a week and would value ads in exchange for access to the content.
"The research shows most persuasively that real-time traffic and location-based advertising is a powerful combination. For publishers, it means they can increase the stickiness of their apps with highly valued content like Navteq Traffic, and support that content with ads that are relevant to the location experience via Navteq LocationPoint ads," said Christopher Rothey, vice president, advertising, Navteq.
The research showed:
Sixty-seven percent said they would accept ads in exchange for access to their favourite location content service. Acceptance was highest in Spain (82%) and Italy (69%)
Consumers in Europe ranked traffic as the content service they value most
The traffic information service would generate the highest frequency of use among respondents (72% would use it on a weekly basis)
Fifty-four percent expressed interest in receiving indoor location content in exchange for ads
The preferred type of advertising is discounts/vouchers, followed by merchant information
The preferred categories for Location-Based Advertising in the navigation context are parking garages and petrol stations followed by tourist information and attractions and restaurants
Methodology
The online survey sampled 1,021 cell phone navigation users, Personal Navigation Device (PND) and in-vehicle navigation users in France, Germany, Italy, Spain and the UK.
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