Tag: smartphone marketing

Location based marketing appears to appeal to app users

Smartphone owners appear to be happy to opt in for geolocation technologies and the benefits they offer.

Although assumptions had been made that location based marketing techniques would put consumers off because of a feeling of being tracked and stalked, new research is showing that as long as the method is used properly, consumers can actually find it to be quite appealing.

Research conducted by Urban Airship, a mobile marketing provider, shows that consumers are happy to opt-in.

At the same time, though, new American legislation could actually create a dramatic change in the landscape for location based marketing using apps, as the concerns over the privacy of smartphone users continues to grow. There are some who have equated the use of geolocation technology to stalking, and they are determined to put a stop to it. This is interesting news as it appears to be in direct conflict with the sentiment of the majority of device using consumers, at the moment.

That said, as location based marketing has not yet become mainstream, consumers may not yet know its full potential.

Location based marketing - app usersAs geolocation technology is only just getting started, many consumers may not yet be fully informed about what it entails and what risks it could pose to their mobile security. At the same time, it could be that consumers feel that the advantages still outweigh the potential risks and are willing to share their location with the applications on their smartphones and tablets.

Urban Airship conducted an analysis of 4 billion push messages that were sent by over 1,000 mobile apps. What they determined was that 62 percent of device users were fine with sharing their location to a provider that would send push marketing messages. Among those applications that were analyzed, the opt-in rates for providing location data ranged from an average of 60 to 80 percent.

The Urban Airship CEO, Scott Kveton, explained that the location based marketing analysis showed that “assumptions around consumers being reluctant to share location are false and massively short-sell mobile,” and pointed out that, on the whole, device owners “value the location-based functionality of apps.”

Mobile ads are growing in use but marketers are still slow to accept them

Advertisers have yet to warm up to this technique as they have yet to be convinced of the receptiveness of consumers.

Despite the fact that the rate of smartphone ownership is skyrocketing throughout the Middle Eastern region, and while mobile ads do seem to provide a tremendous amount of opportunity for marketers, those firms remain hesitant about its use as they have yet to receive adequate evidence to suggest that consumers will be entirely receptive to it.

This has led advertisers in the region to hold a lukewarm opinion of mobile marketing, at best, so far.

According to the Arabnet digital hub founder, Omar Christidis, “Mobile is probably the underserved segment and it is probably the most over looked opportunity in the market today.” This, even though the use of mobile ads is growing at an extremely rapid rate. However, when compared to other channels, there is still a considerable difference in the amount of money and resources that are being dedicated to marketing over smartphones and tablets.

It is only recently that spending growth for mobile ads has started to close in on other channels.

mobile ads and consumersChristidis also pointed out that “If you look at time spent on media versus ad dollars, the largest gap will be seen in mobile. This was the gap that existed even in developed markets until recently.” However he reminded that if the stats are examined, then it would show that the amount of for every ad dollar spent, there is more time spent viewing the advertisement is notably lower among mobile device users than it is among print readers.

Gartner has recently released a report that showed that by the end of this year, the amount of money spent on mobile advertising would reach the $18 billion mark. However, in the Middle East, that figure will be only $20 million. This is a measly statistic when taking the penetration of smartphones into consideration for that region.

However, the Criteo managing director of Eastern Europe and MEA, Dirk Henke pointed out that “It is very similar to advertising on desktop when it started.” Mobile ads appear to be following the same path as the original online advertising when it was in its infancy.