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It's already been established that iPhone users are happy spending money on their phones. Just this week AppsFire, found that the average iPhone user has spent $80 on apps for their phone

But the key to the mobile ad market rests in bringing relevant ads to people where they are, on the go. For marketers to succeed with location-based advertising, consumers have to cooperate. Luckily, mobile phone users are proving open to advertising on their phones  — especially when they're relevant. 

And a new survey from Compete has found that smartphone users are ready and willing to get more targeted ads on their phones. 

The "Smartphone Intelligence" survey found that nearly one-third of smartphone users are comfortable or very comfortable receiving targeted offers on their phones. Of those, nearly half are receptive to location-based offers at restaurants and 45% would use mobile grocery coupons.

Mobile phones offer a promising opportunity because they allow brands and marketers to target consumers when they are on the ground and making purchasing decisions. But that only works if cellphone users find ads useful — and not a nuisance. 

Elaine Sanfilippo, director of consumer technology at TNS's Compete, tells Marketing Daily: "[It looks like] impulse purchases are a better hook for marketers than a considered purchase. Those offers that have that instant impact really resonate with people." 

Another benefit of the smartphone market is its relative infancy. Consumers are open to new ideas and advertising on smartphones because they aren't yet accustomed to the standards of the platform.

According to Sanfilippo, "Seventy percent [of users] are new to the market. They didn't know what they wanted until it was put in front of them." 

The trick for advertisers and marketers is making their products beneficial to users. If consumers are inundated with overbearing messaging, they will quickly tune things out. But if ads and offers come to phones that are useful, cellphone users will stay open to more offers coming to their handheld devices.

Meghan Keane

Published 11 September, 2009 by Meghan Keane

Based in New York, Meghan Keane is US Editor of Econsultancy. You can follow her on Twitter: @keanesian.

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Comments (1)

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MickMac

The key is relevance and when to promote the offers.  Simple information bits can be powerful when relevant, this improvement through relevance of the messages can alone provide a benefit but is even more valued with an offer or coupon. 

When looking at consumers in the market with actual experience with advertising we will start to find differences based on how the ads are delivered.  What was the logic for initiating the delivery ... at what point in the UI or consumer interaction was it appropriate to serve an ad. 

Infrequent, non-obtrusive, location based, contextually aware advertising logically placed within an application is today's path to success.  NAVTEQ's ad product, LocationPoint, appears to be the only company actually driving with all of these elements in their recipe.  Now consider their parent (Nokia) and imagine the mobile distribution and reach that can be provided.  This will give MS and Google a run for their money!

almost 7 years ago

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