Survey Shows Two Thirds of Australians see Value in Location-Based Advertising and Mobile Coupons

NAVTEQ Survey Shows Two Thirds of Australians see Value in Location-Based Advertising and Mobile Coupons
Jun 06, 2011
Sydney– NAVTEQ, the leading global provider of maps, traffic and location data enabling navigation, location-based services and mobile advertising around the world, revealed results of a new study indicating that consumer behavior is “going mobile” as Australians want location-based advertising delivered to their smart phones. Two thirds of Australian mobile phone users find it appealing to receive location-based offers when shopping, which presents exciting marketing opportunities to reach consumers via geo-targeted promotions.

The survey compiled by Galaxy Research*, also helped to identify the widespread consumer benefits that location-based advertising could deliver. These benefits were largely related to convenience and immediacy, as respondents were most favorable towards receiving timely offers while shopping -- without the need to search. Moreover, when asked about the types of products for which they would most like to receive location-aware ads, the survey found petrol discounts (51%) to be the most appealing, followed by meal and restaurant discounts, groceries and fast food.

“Advertising is not just going mobile, it is going local. The NAVTEQ survey shows that Australian’s 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. When offers are location-targeted, they become that much more relevant for a consumer” said Kirk Mitchell, vice president of Oceania Sales, NAVTEQ.

This survey also showed GPS usage on a smart phone is on the rise with as many as 70% of those with GPS capabilities using it two to three times per month or more. Respondents indicated using GPS on their phones most commonly for directions when driving, followed by showing their location on the map, directions when walking and to identify the whereabouts of shops, restaurants or a friend’s location.

“As GPS integration on phones to 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. This level of contextual targeting transforms mobile into a direct response channel for brick and mortar merchants,” Mitchell adds.

The survey also assessed the appeal of an opt-in function, allowing a consumer to decide if and when they would want to receive ads to their phone sent by SMS. Results revealed that three quarters (75%) of mobile phone users are willing to use the function that enables geo-targeted offers, with one in three (34%) saying they would permanently leave the application switched on. A further 41% would opt-in when shopping. For the younger cohort, 83% of those aged 18-34 indicated that they would use the function, with 49% switching it on when shopping. This demonstrates an emerging trend that younger users are more inclined to accept location-aware mobile offers.

“Location based mobile services is 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. 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,” says Mat Baxter, CEO, Universal McCann.


Note to editors

*The Location-based advertising survey was conducted by Galaxy Research during April 2011 and included responses from 606 Australians nationally, aged 18 years and over.

About NAVTEQ
NAVTEQ is the leading global provider of location content in the form of maps, traffic and places data that enables navigation, location-based services and mobile advertising around the world. NAVTEQ supplies precise, comprehensive location content to power automotive navigation systems, portable and wireless devices, Internet-based mapping applications and government and business solutions. The Chicago-based company was founded in 1985 and has approximately 5,600 employees located in 213 offices in 50 countries.