Coupons Top Location-Based Marketing Tool

Coupons are the most appealing location-based marketing for mobile consumers, according to a recent report by San Francisco-based location-based mobile media company JiWire (

The study, “Q2 2010 Mobile Audience Insights Report,” examined mobile connectivity, device use and consumer preferences for location-based content and advertising, and revealed that 39 percent of mobile users (referred to in the study as the “On-the-Go Audience”) want discounts while on the go in the form of mobile coupons. They are also interested in discovering nearby stores and reviews through ads on location-based apps.

More than half of the On-the-Go Audience, so says the report, is willing to share its location through location applications or services in return for the delivery of more relevant ads to their mobile devices. Men and women feel only slightly differently about what they will reveal, according to the survey, which found 54 percent of men and 42 percent of women willing to reveal their location in exchange for more relevant advertising.

"The context of a location, rather than just a point on a map, provides the most relevant understanding of a consumer," said David Staas, SVP of marketing at JiWire. "People today are demanding much more localized content as they spend more time on the go, creating a great opportunity for advertisers. Just as brands were challenged with how to 'socialize' themselves in the social media space, today brands need to think about how to 'localize' themselves with their consumers."

Among other highlights of the report include:
• More than 50 percent of mobile users want to receive location-specific advertising.
• Of the top 15 location-based apps, 10 will help find local products and venues while four are geo-social, such as Facebook, Where, and Foursquare
• Thirty-six percent of the On-The-Go Audience is interested in receiving location-based advertising about nearby stores.
• Approximately 37 percent are using their location apps in their home market just as much as when traveling.
• Forty-seven percent of men and 40 percent of women are more likely to engage with mobile ads that are relevant to their current location.

Apple devices continue to dominate the top 10 used by consumers. Among other devices, the HTC Droid Incredible is the most popular Android device, followed closely by the Motorola Droid, facilitating the platform's increase in market share and taking away from the Apple iOS. This quarter, both the Android and RIM platforms increased 1.2 and .07 percent respectively, while Apple's platform declined 2.3 percent despite launching two new products.

In April of Q2, the iPad was introduced with nearly five percent market share and made a strong debut as the third most popular Wi-Fi enabled mobile device, behind the iPod touch and the iPhone. While the iPhone is still the top device in Q2, it dropped 11.4 percent this quarter.

Wi-Fi usage continued to grow quarter over quarter, increasing 17.3 percent across all venues. In the U.S., 55 percent of Wi-Fi locations are now offered as a free service, a 12.6 percent increase from Q1 2010. Cafés and hotels offer the most free Wi-Fi hotspots. While hotels, cafés and airports remain the primary Wi-Fi venues, this quarter's report shows an 11 percent increase in other locations, such as universities and transit – such as airports and train stations -- indicating the rapid emergence of new types of locations implementing Wi-Fi as an added service.

JiWire's fifth Mobile Audience Insights Report is based on data from approximately 315,000 public Wi-Fi locations, as well as a survey of 2,260 customers randomly selected across JiWire's Wi-Fi Media Channel from May 2010 through June 2010. JiWire serves advertisements to over 30,000 public Wi-Fi locations in North America and records data from every ad request. This report is based on the ad request data collected from April 2010 through June 2010. Quarterly public Wi-Fi location rankings and business model distributions are based on the final day of the quarter.

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